Legislature(1993 - 1994)
04/20/1994 08:35 PM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 20, 1994
8:35 p.m.
TAPES
SFC-94, #68, Side 1 (000-end)
SFC-94, #68, Side 1 (575-end)
SFC-94, #70, Side 1 (000-end)
SFC-94, #70, Side 2 (575-325)
CALL TO ORDER
Co-chairman Steve Frank convened the meeting at
approximately 8:35 p.m.
PRESENT
In addition to Co-chairman Frank, Senators Kelly, Kerttula,
Rieger, and Sharp were present. Co-chair Pearce arrived
soon after the meeting began. Senator Jacko did not attend.
ALSO ATTENDING ALL OR PORTIONS OF THE MEETING: Senator
Taylor; Senator Zharoff; Senator Duncan; Senator Lincoln;
Senator Little; Richard Burton, Commissioner, Dept. of
Public Safety; Nancy Usera, Commissioner, Dept. of
Administration; Jim Baldwin, Assistant Attorney General,
Dept. of Law; Mike Greany, Director, Legislative Finance
Division; Susan Sorensen, Jetta Whittaker, Virginia Stonkus,
Kathryn Daughetee, Dana LaTour, and Fred Fisher, fiscal
analysts, Legislative Finance Division; Nancy Slagle,
Director of Budget Review, Office of Management and Budget;
budget analysts from the Office of Management and Budget;
Dave Skidmore, aide to Co-chair Frank; and aides to
committee members and other members of the legislature.
SUMMARY INFORMATION
HB 370 - APPROP: FY 95 OPERATING AND LOAN BUDGET
Budget closeouts were conducted for all
departments. SCS CSHB 370 (Finance) was REPORTED
OUT of committee with a "do pass" recommendation.
Co-chairman Steve Frank advised that the committee would
proceed with presentation of subcommittee budget
recommendations and subsequent incorporation of those
recommendations into the Senate version of HB 370, the FY 85
operating budget. He then directed that review commence with
the Dept. of Labor.
DEPT. OF LABOR
Senator Kelly distributed a handout containing subcommittee
recommendations (copy on file in the original Senate Finance
Committee file for HB 370). He explained that the
subcommittee met the Senate cap of $9,495.9. In doing so,
the following increments were denied:
GF/Match -247.0
Population Estimate -75.0
ALRB Travel -14.0
GF/PR Worker's Comp -15.0
Health Insurance Premiums -46.5
-397.5
Co-chair Frank called for questions or comments on the
budget. None were forthcoming. Senator Kelly MOVED that
subcommittee recommendations for the Dept. of Labor budget
be incorporated within SCS CSHB 370 (Finance). No objection
having been raised, IT WAS SO ORDERED.
DEPT. OF EDUCATION
Senator Kelly directed attention to a handout presenting
subcommittee recommendations (copy on file) and advised that
the proposed budget meets the Senate cap. The subcommittee
took the following House reductions:
Reverse Health Insurance Increments - 99.30
Commissioner, Excess P/R Authority - 15.00
Admin. Serv., Delete 1 PFT Position - 28.10
Corres.Study, Elim Excess Authority - 20.00
St Council on Arts: Travel - 5.00
St Council on Arts: Contrac & Grants - 36.70
Kotz.Tech.Center: Grants - 29.70
AK Voc.Tech: Personal Services - 20.60
Indep.Living: Expanded Services -100.00
Archives: Gen.Fund Reduction - 53.00
WICHE Admin. Trans.From Exchange - 4.00
Basic Ed.: Personal Services - 28.50
The proposed budget also denies the following increments:
Admin.Serv., Increased P/R Authority - 30.00
Library, Increased P/R Authority - 15.00
Voc.Rehab, P/R for client services - 75.00
The following additional decreases were made based on
elimination of Harborview Services:
Foundation -600.00
Pupil Transportation - 73.30
Tuition Program -156.40
Senator Kerttula voiced his understanding of the situation
at Harborview to be that the children have grown up, and the
facility is no longer used. Co-chair Frank concurred.
Senator Kelly MOVED that the subcommittee budget for the
Dept. of Education be included within SCS CSHB 370
(Finance). No objection having been raised, IT WAS SO
ORDERED.
DEPT. OF LAW
Senator Kelly presented a handout containing subcommittee
recommendations for the Dept. of Law and advised that the
Senate cap was $29,052.9. Subcommittee reductions include:
Mental Health Admin. and Support - 187.8
Mental Health Legal -1,500.0
Oil & Gas Litigation
Legal and Audit Costs -5,891.6
-7,579.4
Senator Kelly explained that funding for oil and gas
litigation would be covered through an appropriation from
the constitutional budget reserve in the front section of
SCS CSHB 370 (Finance). The Senator further explained that
in light of potential settlement of the mental health lands
case, it is hoped the $1,687.8 taken from mental health
litigation will not be needed. Senator Kerttula voiced
concern that the matter would not be settled.
Senator Kelly MOVED that the Dept. of Law subcommittee
report be included in SCS CSHB 370 (Finance). No objection
having been raised, IT WAS SO ORDERED.
OFFICE OF THE GOVERNOR
Co-chair Frank explained that the subcommittee made the
following reductions:
Executive Office - 425.0
Governor's House - 10.0
Contingency Fund - 50.0
Lieutenant Governor - 50.0
Media Center - 15.0
Governmental Coordination, OMB - 252.9
Unallocated Reduction, OMB - 154.4
Elections - 178.5
-1,135.8
Senator Kerttula raised a question regarding reductions to
Governmental Coordination, asking if they were matching
funds. Co-chair Frank concurred that some match was
involved. He then voiced his belief that there are
sufficient moneys to capture most federal funds, but not
all.
Senator Kelly questioned the unallocated reduction. Co-
chair Frank explained that it was made at the request of OMB
and accepted by subcommittee.
Senator Kelly MOVED for adoption of the subcommittee budget
for the Office of the Governor into SCS CSHB 370 (Finance).
No objection having been raised, IT WAS SO ORDERED.
COURT SYSTEM
Senator Sharp directed attention to a handout (copy of file)
and explained that the subcommittee met the cap of
$43,682.9. The following reductions were made:
Appellate Courts, 3.2% - 124.4
Trial Courts, 2.7% - 901.9
Admin. & Support, - 171.8*
Judicial Council, grants - 8.6
Commission on Judicial Conduct,
Contractual, 1.2% - 3.4
*The reduction will be taken from the contractual line to
reflect the anticipated savings from the Anchorage Times
Building.
Senator Sharp MOVED that the subcommittee budget for the
Court System be incorporated within SCS CSHB 370 (Finance).
No objection having been raised, IT WAS SO ORDERED.
DEPT. OF TRANSPORTATION AND PUBLIC FACILITIES
Senator Sharp again directed attention to a handout (copy on
file) and advised of the following subcommittee reductions:
Statewide Programs:
Central D&C - 110.2
Northern D&C - 111.5
SE D&C - 78.3
Commissioner's Office (DP) - 8.8
Info. System (DP) - 24.1
GF to Fed Switch - 500.0
Unallocated Reduction - 174.8
-1,007.7
M&O Highways & Aviation
Deny SEF Rate Increase -3,356.5
Deny New Fac. Increment -1,287.3
Remove Rural Airports -1,550.0
Unallocated Reduction - 916.3
-7,110.0
AMHS Stabilization Fund
Unallocated Reduction - 318.6
Senator Sharp next proposed inclusion of the following
standard lapse language:
The allocation to the Department of Transportation
and Public Facilities for highways and aviation
shall lapse into the general fund on August 31,
1995.
Senator Taylor noted that the Alaska Marine Highway appears
to have lost a great deal percentage wise compared to
maintenance and operation funding. The reduction in general
maintenance and operations is much smaller than expected.
Co-chair Frank voiced his understanding that prorata
reductions were taken from last year's funding. He attested
to funding switches in major maintenance and other areas.
Senator Taylor contended that maintenance and operations
received a $100.0 increase last year. The ferry system took
a decrease of "almost $2 million." Senator Kerttula
suggested that the $2 million reduction may have been made
because ferry receipts increased by a like amount. Senator
Taylor advised that he wished to have his comments on the
record. Senator Sharp concurred in comments by Senator
Kerttula and advised of projected revenue increases
commencing the middle of next month.
Senator Sharp MOVED for adoption of the subcommittee budget
for the Dept. of Transportation and Public Facilities as
presented, including the lapse language. No objection
having been raised, IT WAS SO ORDERED.
UNIVERSITY
Senator Rieger directed attention to a cut sheet from the
Legislative Finance Division and noted that it results in a
$2,575.9 reduction from the Governor's request for the
University. The Senate budget contains a single
appropriation, a general reduction, and the Governor's
unallocated reduction. The result is that all programs
requested by the Governor and the Natural Heritage program
are included in the overall request and subject to the
unallocated and general reductions which produce the Senate
Finance cap.
Senator Kerttula directed attention to a proposed amendment
to add $122.0 for utilities for the new classroom building
at Mat-Su Community College. Co-chair Frank voiced
opposition. He reiterated that the approach to the
University budget seeks to allow University regents to make
allocations based on a single appropriation and single
decrement. The hope is that the University will "keep the
buildings running, . . . including the MatSu Community
College." Senator Kerttula formally MOVED for adoption of
the amendment. Co-chair Frank reiterated his OBJECTION and
called for a show of hands. The motion FAILED on a vote of
1 to 5. (Senator Jacko was absent from the meeting.)
Senator Rieger MOVED that subcommittee funding and intent
for the University of Alaska budget be incorporated into SCS
CSHB 370 (Finance). No objection having been raised, IT WAS
SO ORDERED.
DEPT. OF ADMINISTRATION
Co-chair Frank directed attention to a handout (copy on
file) and advised of the following reductions:
Longevity Bonus - 319.0
Pioneer Homes - 570.2
Senior Ser.Admin. deny 1/2 of
Alzheimers increment - 514.1
Nutrition, trans. & support - 50.0
Senior employment - 74.3
Senior residential - 54.7
Public Defender - 515.9*
Public Advocacy - 435.0*
Commissioner - 31.3
Permanency Planning - 20.0
Administrative Services - 195.0
Personnel/OEEO - 388.0
Finance - 195.4
Property Mgmt. p/r incre. denied - 66.5
Central Duplicating & Mail - 30.0
Oil & Gas Conservation Commission - 270.0
APOC (FY 93 actual) - 21.6
Computer Services - 339.4
Telecommunications - 50.0
Info. Services (Front Section) - 300.0
RATNET - 25.0
Public Broadcasting - 210.0
Leasing & Facilities -1,849.7**
Gen.Reduction: travel, supplies
health care premium - 564.6
-7,090.5
*Reductions in the Public Defender and Public Advocacy
agencies were made with the intent that they come to the
Legislative Budget and Audit Committee and receive funds
through PFDs "which the Dept. of Law is collecting."
**Based upon expected savings from renegotiation of the
Frontier lease or replacement space in Anchorage.
Senator Kerttula MOVED for adoption of an amendment to
restore $120.0 to the Alaska Public Broadcasting Commission.
Restoration would leave a 90.0 reduction. Senator Kerttula
explained that the typical station has lost 40% of its state
revenue since 1986 and since 1991 has sustained cuts in
grant funding of 18 to 20%. There is a possibility that at
least one station will be cut from the network. Co-chair
Frank OBJECTED and called for a show of hands. The motion
FAILED on a vote of 1 to 5.
Co-chair Frank referenced a handout (copy on file) which he
explained would spread DP chargeback reductions among
impacted agencies. He then noted need to clarify
information thereon and advised that the handout would be
dealt with at a later time.
Senator Kelly MOVED for adoption of the subcommittee budget
for the Dept. of Administration into SCS CSHB 370 (Finance).
No objection having been raised, IT WAS SO ORDERED.
DEPT. OF FISH AND GAME
Co-chair Pearce directed attention to a handout (copy on
file) and advised of the following reductions:
Fisheries Management
Consolidate DP support - 40.0
DP chargeback - 4.3
Denied health ins. increase - 109.4
Fisheries Development
Tech adj 20.0 GFM to GF/PR
Trans. Snettisham Hatchery - 460.0
Cut one-time hatchery funds - 415.0
Denied health ins. increase - 43.7
Cut GF/PR Pillar Creek - 70.0
Cut GF/PR Kitoi mgmt. - 100.0
Sport Fisheries
Cut Behm Canal King Salmon
Stock Status - 100.0
Wildlife Conservation
Use other fund sources for 574.1
Deny health insurance increase - 5.4
Cut GF/PR marine mammal project - 5.0
Special Projects
Denied health insurance increase - 1.0
Office of the Commissioner
Denied health insurance increase - 3.9
DP chargeback reduction - 0.2
Cut Walrus Commission funding - 50.0
Cut GF for cross-cultural travel - 10.6
Public Communications
Denied health insurance increase - 1.1
Cut GF to FY 94 auth level 211.2
Administrative Services
DP chargeback reduction - 2.6
Denied health insurance increase - 12.0
Boards Services
DP chargeback reduction - 0.5
Denied health insurance increase - 2.8
Adv. Com/Regional Council
Denied health insurance increase - 1.7
Subsistence
Denied health insurance increase - 9.0
DP chargeback reduction - 1.1
Habitat
Denied health insurance increase - 16.9
DP chargeback reduction - 1.6
Cut SE Forest Mgmt/Practices - 75.0
Special Projects
Deny oil/haz I/A for plan review - 185.6*
Denied health insurance increase - 1.2
Limited Entry Program Administration
Denied health insurance increase - 14.8
DP chargeback reduction - 3.9
*Funding for oil and hazardous substances plan review is
covered by the DEC budget.
The following additions were included in the subcommittee
budget:
Fisheries Development
Sandy River Weir 40.0
Sport Fisheries
Add F&G Funds for Kenai sonar 100.0
Add for Neets Bay/SSERA 100.0
Authority to receive federally
dedicated money into F&G Fund 50.0
Pubic Communications
Add I/A authority for revenues 120.0
Co-chair Pearce noted that general fund cuts for the Senate
budget total $2,208.0. The Senate cap was $43,697.7. The
subcommittee budget totals $41,489.7.
Senator Kerttula MOVED for adoption of the following
amendment:
The appropriation made in this Act to the
Department of Fish and Game, Commercial Fisheries
Management and Development is conditioned on a
minimum allocation of $360,000 for the operations
of the Sikusuilaq hatchery.
He explained that the hatchery was included in the
Governor's budget at a total of $398,000. The Senate budget
does not specifically delete the funding, however, the
department has indicated that if the $415,000 in one-time
hatchery funds it was allowed to carry forward from FY 94,
is deleted, it would close the Sikusuilaq hatchery. The
minimum needed to run the hatchery is $360,000. Co-chair
Pearce OBJECTED. She reiterated that the Senate budget did
not effect cuts for the hatchery. The House made a specific
cut, then provided an add-back for the hatchery, but then
took a 2.5% cut. Co-chair Pearce acknowledged the
department indicated that if House numbers stand, funds for
this hatchery will be cut first. Senator Kerttula inquired
concerning acceptance of intent that the hatchery be
maintained at no greater reduction than the 2.5%. Co-chair
Frank directed that the issue be set aside for consideration
later in the meeting. (See page 30 for adoption of this
amendment.)
Senator Kerttula next MOVED to add $460,000 in general funds
to restore funding for the Snettisham Hatchery. He voiced
his understanding that Canadian/American negotiations led to
establishment and support for the facility. Snettisham is
thus different than other hatchery operations. Co-chair
Pearce OBJECTED. She acknowledged the Canadian/American
treaty and Snettisham involvement but advised of her
understanding that the treaty would not be broken by closure
of Snettisham. The department would simply have to use an
alternative source. Last year the committee informed the
department it expected the department to find alternatives
to general funds for Snettisham and to seek privatization of
the hatchery. The department has been unable to do so.
Snettisham has not been a successful hatchery. Senator
Kerttula voiced his understanding that if the state loses
the facility and fails to honor the treaty, the Alaska
fishing fleet will receive a smaller share of the wild fish
allocation. Further, if the hatchery is closed, the area
must be restored to its natural state. That would incur an
expenditure of many millions.
Co-chair Frank called for a show of hands on adoption of the
amendment. The motion FAILED on a vote of 1 to 5.
Co-chair Pearce MOVED for incorporation of the Senate budget
for the Dept. of Fish and Game into SCS CSHB 370 (Finance).
No objection having been raised, IT WAS SO ORDERED.
DEPT. OF CORRECTIONS
Co-chair Frank distributed a handout (copy on file) and
advised of the following reductions:
Commissioner's Office - 59.0
Risk Assessment, increment denied - 50.0
Inmate Health Care, unallocated - 600.0
Inmate Progs. substance abuse beds - 175.2
Cook Inlet CC, fund source change for
federal billings of 200.0
Comm. Corrections, reduce funding for
DWI fines - 843.6
Comm. Corrections, reduce additional
CRC funding for 12 months - 103.9
Comm. Corrections, deny augmented
CRC alcohol treatment - 232.7
Comm. Corrections, reduce alloc. for
DWI/Misdemeanant center -1,817.5
-3,881.9
Co-chair Frank next directed attention to the following
intent language which he explained is similar to that
provided last year:
It is the intent of the legislature that the
department, consistent with its statutory powers
and duties, be allowed the maximum flexibility in
allocating its budgetary resources during FY 95 in
order to successfully deal with prison
overcrowding and budgetary constraints.
The Co-chair also noted the following new intent:
It is the intent of the legislature that if the
amount of program receipts collected in accordance
with AS 28.35.030(k) or AS 28.35.032(o) during
fiscal year 1995 exceeds the amount authorized for
this purpose, then the department shall request
authority from the Legislative Budget and Audit
Committee to receive and expend the difference
between these two amounts.
Co-chair Pearce MOVED for adoption of both items of intent
and requested unanimous consent. No objection having been
raised, the intent language was ADOPTED.
Co-chair Pearce next MOVED and requested unanimous consent
for incorporation of the Senate operating budget for the
Dept. of Corrections within SCS CSHB 370 (Finance). No
objection having been raised, IT WAS SO ORDERED.
DEPT. OF REVENUE
Co-chair Frank directed attention to a Legislative Finance
Division cut-sheet for the Dept. of Revenue and an April 11,
1994, memorandum from the division relating to increases and
decreases in the department budget. (Copies of both the
spread-sheet and memo are on file.) He then advised of the
following changes from the Governor's budget:
Child Support Enforcement Division
Increase federal receipts 275.0
Increase federal receipts to change 16 temp.
employees to full time, add 1 enforce-
officer II, and for contractual
arrangements with Dept. of Law 800.0
Public Housing Component - AHFC
Increase federal and corporate receipts 1,137.5
Executive Order 90
Transfer Alaska Science and Technology
Foundation from Dept. of Revenue to the
Dept. of Commerce and Economic Development
Alcoholic Beverage Control Board
Denied general fund p/r increments - 80.0
Gaming Division
Denied general fund p/r increments - 156.3
Permanent Fund Corporation
Increase corporate receipts to cover
equity mgmt. fees and international
custodial fees in FY 95 20,277.4
End, SFC-94, #68, Side 1
Begin, SFC-94, #68, Side 2
Language in the above-noted memo, relating to increased
funding for the Permanent Fund Corporation, indicates that
funding within the Dept. of Revenue budget includes deletion
of Section 16 of SB 262, which contained general language
appropriating funds from the earnings reserve account of the
Permanent Fund to the corporation for management fees for
investment activities.
Senator Kerttula directed attention to a proposed amendment
(copy on file) and MOVED to increase oil and gas audit
capabilities by $110.0. He explained that the increase
would fund one of three vacant positions. Co-chair Frank
voiced support for the amendment and called for objections.
No objection having been raised, the amendment was ADOPTED.
Senator Rieger asked if management fees for the Permanent
Fund Corporation were budgeted for a specific dollar amount
rather than through general language in the front section of
the budget. MIKE GREANY, Director, Legislation Finance
Division, responded that the subcommittee placed a dollar
amount in the "back pages" rather than placing language in
the front section. A conforming amendment would thus have
to be made to the front section.
Co-chair Pearce MOVED for incorporation of the subcommittee
budget for the Dept. of Revenue into SCS CSHB 370 (Finance).
No objection having been raised, IT WAS SO ORDERED.
DEPT. OF NATURAL RESOURCES
Co-chair Pearce directed attention to a spread-sheet (copy
on file), noted formula cuts in travel, contractual, and
commodities,
and listed the following reductions:
Commissioner's Office
Travel - 8.6
Contractual - 3.9
Commodities - 0.8
Administrative Services
Denied increment for lands accounting - 150.0
Travel - 4.8
Commodities - 3.0
Recorder's Office
Denied workload increment - 55.9
Travel - 2.3
Contractual - 8.6
Commodities - 5.0
Division of Lands
Denied increment for backlog - 450.0
Travel - 16.9
Contractual - 38.9
Commodities - 8.1
Forestry
Denied increment for small projects - 35.0
Travel - 31.5
Contractual - 60.1
Commodities - 21.4
Mining
Miscellaneous services - 30.0
Travel - 8.0
Commodities - 1.5
DGGS
Travel - 9.3
Contractual - 21.9
Commodities - 3.8
Water
Reduce Director's Office - 75.2
Travel - 10.1
Contractual - 16.8
Commodities - 1.4
Unassigned program receipts - 101.0
Pipeline Coordinator
Reduced materials' sales to Land - 50.0
Travel - 9.0
Contractual - 24.3
Commodities - 2.9
Information Resource Mgmt.
Reduce IAR from Lands - 200.0
Travel - 1.8
Contractual - 13.7
Commodities - 2.1
Data Processing
Reduce DP chargeback - 19.9
Historic Preservation
Denied Coffman Cove increment - 40.0
Reduced program receipts - 4.2
Parks Management
Denied increment - 200.0
Travel - 22.0
Contractual - 68.0
Commodities - 18.2
Agriculture
Nursery PR to IAR--funding change - 80.0
Travel - 10.5
Contractual - 8.1
Commodities - 1.0
State Fairs
Reduce 10% - 9.8
Fire Suppression - Front Section
Disallowed GF increment -1,919.5
-3,751.0*
*A total of $108.2 was subsequently (see below) restored by
an amendment. New total for reductions when amendment
amount restored is -$3,642.8.
Co-chair Pearce also advised of the following additional
changes in the Senate budget:
Recorder's Office
Restore Nome Recorder's Office $ 35.0
Commissions
The Senate budget did not eliminate
funding for CACFA of $89.4.
D.G.G.S.
The Senate budget did not reduce the
program receipt increment of $75.0
Co-chair Pearce next MOVED for adoption of an amendment to
delete subcommittee reductions in travel, contractual, and
commodities for the Parks Management BRU and restore $108.2.
She voiced her understanding that with restoration of those
funds, the department would not be closing any parks. No
objection having been raised, the amendment was ADOPTED.
Co-chair Pearce directed attention to the following standard
intent:
It is the intent of the legislature that should
funding be insufficient for the department to meet
its fire fighting responsibilities, funding will
continue to be available by utilizing the disaster
declaration process outlined in the current
funding agreement. If necessary, the department
will submit a supplemental request to the 1995
legislature.
Co-chair Pearce then directed attention to an additional
item of intent:
It is the intent of the legislature that the Division
of Parks and Outdoor Recreation request program
receipt authority from Legislative
Budget and Audit to receive and expend
up to $200,000 in day-use fees, if they
are collected this summer, so that no
parks will be closed.
She then MOVED and requested unanimous consent for adoption
of the foregoing intent. No objection having been raised,
the intent was ADOPTED.
Co-chair Pearce MOVED for incorporation of the subcommittee
budget for the Dept. of Natural Resources into SCS CSHB 370
(Finance). No objection having been raised, IT WAS SO
ORDERED.
DEPT. OF MILITARY AND VETERANS AFFAIRS
Co-chair Frank advised of the following subcommittee changes
to the budget:
Department-wide
Denied health insurance premium increases - 17.2
Disaster Planning & Control
Change in funding source: decrease
GF of ($393.6) and increase oil hazard
spill response reserve fund $393.6.
Decrease GF ($286.5) and increase
disaster relief funds $286.5
General Fund Increment
Add a grant for American Red Cross 100.0
Office of the Commissioner
Eliminate secretarial position - 39.4
Army Guard Facilities Maintenance
Reduce maintenance - 260.6
The Co-chair further referenced four items of intent:
1. Limiting the number of state positions at the King
Salmon
Air Base to three.
2. Requiring utilization of local residents for the
work force for King Salmon Air Base.
3. Requesting that the department rent or lease
unused
space in its facilities when such an arrangement
would not compete with the private sector, would
not impact department operations, and would save
operational costs.
4. Requesting that the department hire staff members
from the same ethnic groups and in approximately
the same ratios as youths served by the Youth
Corps Component.
Co-chair Pearce MOVED for incorporation of the subcommittee
budget, together with proposed intent, into SCS CSHB 370
(Finance). No objection having been raised, IT WAS SO
ORDERED.
LEGISLATURE
Co-chair Frank referenced a handout (copy of file) and
explained that the overall attempt was to return to FY 93
levels. That was achieved by the following funding:
Legislative Budget and Audit $2,704.60
Legislative Finance - Admin. 1,217.50
Senate Finance 900.00
House Finance 1,200.00
LBA Committee Expenses 250.00
Legislative Council
Salaries & Allowances 4,015.70
Administrative Services 4,100.00
Public Services 2,100.00
Legal Services 1,625.00
Session Expenses 5,656.60
Council & Subcommittees 614.00
Legislative Research 681.00
Legislative Operating Budget
Senate Operating Budget 2,150.00
House Operating Budget 2,150.00
Ombudsman 1,250.00
Senator Kelly inquired concerning the difference between
current year and FY 95 funding. Co-chair Frank advised that
FY 94 authorized $41 million. The subcommittee target for
FY 95 was $30.6. Senator Kelly asked if any other agency
sustained a higher cut than the legislature. Co-chair
Pearce responded negatively. Co-chair Frank generally
concurred in that response but said he would have to review
the other department budgets to be certain.
Senator Kerttula MOVED for adoption of the subcommittee
budget. No objection having been raised, the Senate budget
for the legislature was incorporated within SCS CSHB 370
(Finance).
DEPT. OF PUBLIC SAFETY
Senator Rieger directed attention to a handout (copy of
file) and advised of the following reductions:
Fish and Wildlife Protection
Enforcement/Investigative Services
Roll back overtime to 9 hours - 40.0
HWCF rate reduction - 50.0
Denied health premium - 17.1
Denied in-service increment - 60.0
Director's Office
Denied health premiums - 1.3
Reduce personal services - 14.8
Denied HWCF rate increment - 1.1
Aircraft Section
Denied aircraft support needs - 63.0
Denied aircraft increased needs incre. - 143.6
Denied aircraft support incre. - 43.0
Denied health premium - 0.8
Marine Enforcement
Denied health premium - 4.8
Denied patrol vessel costs incre. - 100.0
Denied trans. from enforcement - 38.3
Fire Prevention
Fire Prevention Opt.
Denied health premium - 5.5
Denied fire marshall increment - 72.9
Fire Service Training
Denied health premium - 2.0
Reduced fire service training - 100.0
Highway Safety Planning
Operations
Denied health premium - 1.4
Reduce personal services - 2.0
Reduce travel - 4.1
Motor Vehicles
Driver Services
Denied health premium - 11.9
Field Services
Denied health premium - 43.1
Denied pers.services incre. - 75.4
Reduce personal services - 100.0
Administration
Denied health premium - 6.3
Alaska State Troopers
Detachments
Denied health premium - 50.7
Fund change from GF to GFPR -1,015.3
Criminal Investigations
Denied health premium - 7.2
Reduce elective narcotics enforcement -1,670.3
Director's Office
Denied health premium - 4.3
Judicial Services - Anch.
Denied health premium - 3.4
Prisoner Transportation
Denied cost increment - 6.5
Search and Rescue
Reduce travel - 13.0
Narcotics Task Force
Fund change from GF/M to GF/PR - 150.0
Commercial Vehicle Enforcement
Denied HWCF rate increase - 1.1
VPSOs
Support
Denied health premium - 1.8
Administration
Denied health premium - 1.3
Alaska Police Standards
Denied health premium - 0.9
Domestic Violence and Sexual Assault
Fund Change from GF to PFD fund - 90.0
Statewide Support
Commissioner's Office
Denied health premium - 3.6
Training Academy
Denied health premium - 1.5
Reduce overtime for ALETS training - 11.0
Administrative Services
Denied health premium - 11.8
Denied central support increment - 178.5
Denied risk mgmt & HWCF increment - 10.1
Laboratory Services
Denied health premium - 10.2
Denied DWI enforcement increment - 53.0
APSIN - Denied health premium - 4.2
Building Security/Maintenance
Delete funding for building security - 54.9
Alaska Criminal Records & ID
Denied health premium - 8.1
Denied fingerprint system increment - 57.2
Delete criminal records analyst - 81.1
Senator Rieger further advised of the following increments:
Alaska State Troopers
Detachments - Personal services increment 50.0
VPSOs
Contracts - Add I/A receipt authority 100.0
Contractual increment 20.0
Domestic Violence & Sexual Assault - Grants 20.0
He then noted general fund reductions of $4,277.6--
approximately $50.0 below the Senate cap.
Senator Kerttula raised questions regarding reductions in
aircraft components. Senator Rieger voiced his belief that
the department places an "extremely high priority on
safety." When budget increases are denied, that usually has
the effect of reducing flying hours. In general, the same
funding was carried forward, but increments were denied.
Senator Rieger subsequently disclosed that he is on the
board of AWAKE, one of the boards receiving grants from the
Council on Domestic Violence and Sexual Assault.
Senator Rieger MOVED that subcommittee recommendations for
the budget for the Dept. of Public Safety be incorporated
within SCS CSHB 370 (Finance). No objection having been
raised, IT WAS SO ORDERED.
DEPT. OF HEALTH AND SOCIAL SERVICES
Senator Rieger advised of the following reductions:
Assistance Payments
ADFC - Reduced increment -4,005.6
APA - Reduced increment -1,061.7
Medical Assistance
Medicaid Non-Fac.
Change timing of waiver year -3,000.0
Reduce utilization increment -12,524.5
Medicaid Facilities
Reduce utilization increment -6,940.5
General Relief Medical
Denied formula increment - 994.5
Medicaid State Programs
Reduce formula increment - 200.0
Waivers Services
Change timing of waiver year -3,000.0
Elderly & adult waiver year 25% red. - 900.0
Public Assistance Administration
Alaska Work Programs
Refinance 4 JOBS case managers - 200.0
Medical Assistance Administration
Med.Assist.Central
Denied health ins. increase - 3.6
Claims Processing
Denied health ins. increase - 5.3
Certification & Licensing
Denied health ins. increase - 1.7
Medicaid Rate Advisory Comm.
Denied health ins. increase - 2.0
Hearings & Appeals
Denied health ins. increase - 0.9
Medicaid Waivers Auth.
Denied health ins. increase - 0.9
Reduced travel - 4.0
Audit - required every other year - 50.0
Purchased Services
Adult Services
Travel reduced - 4.0
Foster Care
Cost of living increment reduced - 717.1
Residential Child Care
Reduce empty Medicaid beds - 250.0
Division of Family and Youth Services
Southcentral Region
Denied health ins. increase - 66.6
Northern Region
Denied health ins. increase - 45.0
Reduced travel - 8.0
Southeastern Region
Denied health ins. increase - 23.5
Reduced travel - 4.0
Central Office
Denied health ins. increase - 12.2
Reduced travel - 35.0
Youth Facility Services
McLaughlin Youth Center
Reduced health ins. increase - 50.8
Fairbanks
Denied health ins. increase - 34.4
Nome
Denied health ins. increase - 11.2
Increase vacancy factor to 3% - 11.8
Johnson Youth Center
Denied health ins. increase - 14.1
Bethel Youth Facility
Denied health ins. increase - 22.8
Human Services - Community Matching Grant
Transfer to Anch & Fbks Components -1,370.1
Maniilaq
Alcohol & Drug Abuse-Reduce grants by 4% - 41.0
Norton Sound
Alcohol & Drug Abuse-Reduce grants by 4% - 22.5
SEARHC
Alcohol & Drug Abuse-Reduce grants by 4% - 13.8
Tanana Chiefs Conference
Alcohol & Drug Abuse-Reduce grants by 4% - 20.7
Tlingit-Haida
Alcohol & Drug Abuse-Reduce grants by 4% - 0.5
Y-K Health Corp
Alcohol & Drug Abuse-Reduce grants by 4% - 40.0
State Health Services
Nursing
Denied health ins. increase - 66.3
Reduced travel - 25.6
WIC - Reduced travel - 2.1
Matern.Child & Fam. Health
Denied health ins. increase - 16.8
Reduced travel - 12.9
Laboratory Services
Denied health ins. increase - 16.7
Reduced travel - 10.2
Public Health Admin. Services
Denied health ins. increase - 3.4
Reduce travel - 11.2
Reduce personal services - 62.5
Epidemiology
Denied health ins. increase - 5.8
Reduced travel - 30.0
EMS Training & Licensing
Denied health ins. increase - 3.2
Reduced travel - 3.8
Bureau of Vital Statistics
Denied health ins. increase - 7.0
Reduce contractual (Cmptr Sys) - 25.0
Reduced travel - 1.9
Post Mortem Exams
Denied health ins. increase - 0.3
Reduced travel - 0.8
Denied increment - 200.0
Home Health Services
Denied health insurance increase - 1.0
Health Grants
EMS Grants - Reduce travel - 5.0
Alcohol & Drug Abuse
Administration
Denied health ins. increase - 7.8
Reduced travel - 7.3
Increase vacancy to 3% - 10.4
Alcohol Safety Action Program
Denied health ins. increase - 4.4
ADA Grants - Reduce grants by 4% - 800.0
Community Mental Health Grants
General Grants
Denied rural Hum.Svcs.increment(I/A) - 425.0
Denied transfer from API -1,711.0
Psychiatric Emergency Services
Denied transfer from API - 600.0
Services to Chronically Mentally Ill
Denied transfer from API - 750.0
Desig. Eval.& Treatment
Denied transfer from API - 400.0
Services/Emotionally Disturbed Youth
Denied transfer from API -1,200.0
Community DD Grants
Excess implementation funds - 850.0
HDC Clients/ Refinanced waivers - 300.0
Institutes and Administration
Mental Health/DD Admin.
Denied health ins. increase - 17.9
Denied transfer from API - 240.0
Reduced travel - 14.1
API
Denied health ins. increase - 90.7
Denied API 2000 CIP increment - 105.0
Reduce increment - 450.0
Harborview Developmental Center
Denied health ins. increase - 43.0
Denied main. status quo increment - 400.0
Transfer to Comm. DD grants -1,100.0
Transfer to services for the
chronically mentally ill - 500.0
Administrative Services
Commissioner's Office
Denied health ins. increase - 3.2
Regulatory Compliance
Denied health ins. increase - 0.4
Transfer to Commissioner's office - 99.9
Personnel/Payroll, health ins. increase - 6.1
Budget and Finance
Denied health ins. increase - 16.1
Denied transfer from API - 99.0
Gov.'s Council/Disabilities
Denied health ins. increase - 0.2
Miscellaneous reduction - 10.0
Planning & Development
Denied health ins. increase - 1.6
Facilities/CIP Costs
Denied health ins. increase - 3.1
Alaska Mental Health Board
Denied health ins. increase - 1.6
Reduce travel - 3.2
Senator Rieger then advised of a total general fund
reduction of $26,991.8. He further advised of the following
additional changes within the Senate budget:
Adult Public Assistance
Allowed for 5% caseload growth.
Waiver Services
Refinance DD & Complex Kids Waivers
Send PJ choice to DD GR/RSA
Claims Processing, Medical Assistance
Managed care case workers 2,000.0
Anchorage Human Services Block Grant 1,490.9
Fairbanks Human Services Block Grant 440.4
Maternal Child & Family Health
Denied pers.services, contr.trans.
Increase contractual 25.0
Alcohol Safety Action Program
Fund change from GF to GF/PR
Services to Chronically Mentally Ill
Transfer from Harborview - Sourdough 550.0
Community DD Grants
Transfer from Med.Assist/Waivers 1,644.6
Waivers savings/maintain effort 250.0
Transfer in from Harborview 1,100.0
Harborview Developmental Center
Fund Change-Day Treatment
Authorization to rec. I/A receipts 1,650.0
Commissioner's Office
Transfer in from regulation
compliance 99.9
Senator Sharp asked if Human Services Community Matching
Grants for Anchorage and Fairbanks were based on a
population allocation. Senator Rieger advised of a formula
in effect in FY 93 and a different formula for FY 94. Of
the two, one favored Anchorage and the other Fairbanks.
Proposed funding took numbers favoring each community,
respectively, and reduced the funding by 10%. Senator
Rieger further advised of intent language requiring that the
grant line be matched on a 70/30 basis.
Senator Rieger MOVED that subcommittee recommendations for
the Dept. of Health and Social Services budget be
incorporated within SCS CSHB 370 (Finance). Senator
Kerttula OBJECTED. Co-chair Frank called for a show of
hands, and the motion CARRIED on a vote of 4 to 1. (Co-
chair Pearce was temporarily absent from the meeting, and
Senator Jacko did not attend.)
DEPT. OF ENVIRONMENTAL CONSERVATION
Co-chair Frank directed attention to a handout (copy on
file) and advised of the following reductions:
Information & Admin. Services - 357.3
Response Fund Administration - 552.7
Regional Management - 8.0
Environmental Quality Director - 246.7
Wastewater & Water Treatment - 11.8
Solid & Hazardous Waste Management - 370.8
Air Quality Management - 903.4
(Excess Program Receipts)
Water Quality Management - 42.0
Spill Prevention/Response Director - 239.8
Contaminated Sites - 283.9
Underground Storage Tanks -1,221.1
Government Preparedness - 230.2*
(See below for subsequent action
re: this component.)
Environmental Health Director - 6.5
Animal Health & Dairy Industry - 19.4
Meat and Poultry Inspection - 2.2
Seafood and Sanitation Inspection - 335.7
Palmer Laboratory - 20.4
Facility Construction/Operations - 103.5
(Remote Maintenance Workers Retained)
The foregoing resulted in a general fund reduction of
$1,100, program receipt reduction of $1,027.0, interagency
receipt reduction of $191.0, and reduction of $2.2 in
general fund match.
Co-chair Frank next directed attention to the following
intent requested by Senator Adams:
It is the intent of the legislature that,
beginning in FY 96, the Remote Maintenance Worker
(RMW) program be administered by the Dept. of
Environmental Conservation on a matching grants
basis. It is intended that grantees will use
local or federal sources to offset state funding
reductions to maintain RMW services at or above FY
95 levels.
Co-chair Pearce MOVED for adoption of the foregoing intent.
No objection having been raised, the intent was ADOPTED.
Co-chair Pearce then MOVED for adoption of subcommittee
recommendations for the Dept. of Environmental Conservation.
Co-chair Frank noted need to effect a corresponding change
in the Environmental Conservation budget to match funding
for depots and corps in the Dept. of Military and Veterans
Affairs budget. Co-chair Pearce WITHDREW her motion for
adoption of the Dept. of Environmental Conservation budget.
Co-chair Pearce then MOVED to appropriate $393.6 in 470
funds to the Dept. of Military and Veterans Affairs for
disaster planning and control. No objection having been
raised, the motion CARRIED. *Co-chair Pearce next MOVED to
increase interagency receipts for the Government
Preparedness component by $34.1 from the 470 fund. No
objection having been raised, the motion CARRIED.
End, SFC-94, #68, Side 2
Begin, SFC-94, #70, Side 1
Co-chair Pearce further noted that should SB 215 pass the
legislature, flexibility will be needed in the front section
of the budget to ensure proper accounting in the transition
year. She then MOVED for adoption of that intent as a
general motion for the Dept. of Environmental Conservation
budget. No objection having been raised, the motion
CARRIED.
Co-chair Pearce MOVED for incorporation of the subcommittee
budget for the Dept. of Environmental Conservation within
SCS CSHB 370 (Finance). No objection having been raised, IT
WAS SO ORDERED.
DEPT. OF COMMUNITY AND REGIONAL AFFAIRS
Co-chair Pearce directed attention to a handout (copy on
file) and explained that the Senate cap called for a $610.0
reduction in general funds. She then advised of the
following changes in the Dept. of Community and Regional
Affairs Budget:
Office of the Commissioner
Eliminate Deputy Commissioner - 108.1
Restore Ak.Legal Services to FY 94 level 475.0
Administrative Services
Eliminate Accounting Position - 55.2
Designated Grants Component
Restore approximately 70 percent of FY 94 level 674.2
At this point in the meeting Co-chair Pearce advised that
while she was not a member of the subcommittee formulating
the budget for the Dept. of Community and Regional Affairs,
she wished to disclose her membership on the Board of
Directors of the Special Olympics, one of the grantees
incorporated within the subcommittee budget.
Training and Development
Eliminate Deputy Director - 96.3
State Assessor Component
Eliminate Administrative Assistant for
Property Tax 46.0
Statewide Assistance Component
Reduce personal services vacancy factor
to 3.5 percent - 11.5
Child Care Component
Hold grant amount constant all year long - 300.0
Day Care Assistance Programs Component
Decrease fund for holiday closures - 300.0
Shift responsibility for registration
to parents - 100.0
Head Start Grants Component
Add funding to support new programs 159.9
Community Development Assistance Component
Deny auth. for 2nd yr of Cottage Light Industry - 200.0
Rural Energy Program
Deny general fund increment for CIP receipts - 525.7
Fund circuit rider program within DCRA/DOE 425.0
Health Insurance Premiums
Decrease requested premium increases - 46.9
Co-chair Pearce next advised of the following net zero fund
transfers between components and net zero transfers between
fund sources:
Commissioner's Office - 33.0
Energy Operations 33.0
Commissioner's Office 33.0
Community Development Assistance - 33.0
Delete two development specialist positions - 136.1
GF
Add two engineer positions 136.1
PPF
Remove loan specialist from general fund - 61.6
GF
Add loan specialist to power projects fund 61.5
PPF
Remove financial analyst from general fund - 48.7
GF
Add financial analyst to bulk fuel revolving fund 48.7
BFRLF
Remove senior economist from general fund - 102.9
GF
add senior economist to power projects fund 102.9
PPF
Co-chair Pearce further advised of intent language relating
to:
The State Assessor Component
Child Care
The Day Care Assistance Program
Head Start Grants
Energy Operations Component - Circuit Rider Program
Power Cost Equalization
In her concluding remarks, Co-chair Pearce advised that the
subcommittee budget is approximately $14.0 under the Senate
cap.
Co-chair Pearce next directed attention to proposed
amendments. She explained that Amendment 1 would add the
following projects under designated grants:
Maniilaq Inupiat Ilitqusiat Youth/Elder Program 35.0
Korean Community of Anchorage--Operations 19.6
and effect the following reduction:
Under the Energy Division
Reduce equipment line -40.0
The department has agreed to the foregoing reduction. That
reduction together with the foregoing additions brings the
subcommittee budget to the Senate cap. Co-chair Pearce then
MOVED for adoption of Amendment No. 1. No objection having
been raised, Amendment No. 1 was ADOPTED.
Senator Kerttula MOVED for adoption of Amendment No. 2 to
add $28,727.8 to municipal assistance and revenue sharing.
He explained that the amendment would effect a 10% rather
than 20% reduction from previous year funding. He then
MOVED for adoption of a total of $65,449.6. Senator Rieger
voiced his understanding that Legislative Finance Division
would spread the $65.4 million figure appropriately to
reflect the 10% reduction between the two programs. Co-
chair Frank concurred. He then called for objections to the
motion. No objection having been raised, Amendment No. 2
was ADOPTED.
Senator Kerttula directed attention to Amendment No. 3 and
MOVED to restore the $30.0 job training grant to
Perseverance Theatre. He explained that the grant would
allow the non-profit, professional theatre to leverage
federal funds for its program. Co-chair Frank requested
that Amendment No. 3 be HELD until later in the meeting.
(Amendment No. 3 was not subsequently addressed.)
Co-chair Pearce MOVED and asked for unanimous consent for
adoption of Senate funding of the Dept. of Community and
Regional Affairs budget. No objection having been raised,
the budget was ADOPTED for incorporation into SCS CSHB 370
(Finance).
DEPT. OF COMMERCE & ECONOMIC DEVELOPMENT
Co-chair Pearce directed attention to a handout (copy of
file). She further advised of the following changes in the
subcommittee budget:
Economic Development
Fisheries Development Specialist - 65.0
International Trade - 14% Reduction
Move director back to Anchorage - 113.0
Reduce travel 10% - 6.0
Reduce office rent/opt expenses - 100.0
Tourism
Reduce travel 10% - 11.9
Film office - 25.0
Partially restore ATMC cut 2,000.0
Add Alaska Visitor Stat. Program 214.2
Occupational Licensing
Business licensing increment - 33.0
ASMI
Delete unrestricted GF - 49.6
Delete unrealized GF/PF -1,200.0
The subcommittee budget of $46,359.2 totals slightly less
than the $46,365.6 cap.
Co-chair Pearce next MOVED for adoption of Amendment No. 1
for the international trade component. She explained that
the amendment would retain the 10% travel reduction of 6.0
and thereafter effect an unallocated reduction of 213.0.
While the total component reduction would remain 219.0,
Amendment No. 1 would allow the Governor's Office and the
division of international trade to determine how to effect
the cuts. Co-chair Pearce stressed that both the House and
Senate have made it clear that the director should return to
Anchorage. No objection having been raised, Amendment No. 1
was ADOPTED.
Co-chair Pearce MOVED for adoption of the Senate budget for
the Dept. of Commerce and Economic Development. No
objection having been raised, the budget was ADOPTED for
incorporation within SCS CSHB 370 (Finance).
TELECOMMUNICATIONS - Agencywide Reduction
Co-chair Frank directed attention to a handout (copy on
file) which he explained sets forth reductions to various
departments. Co-chair Pearce MOVED for adoption of
reductions set forth on the handout. No objection having
been raised, IT WAS SO ORDERED.
INTENT
Co-chair Pearce next directed attention to a packet of
intent language. The following items of intent were MOVED
and ADOPTED:
Dept. of Transportation and Public Facilities - Maintenance
of the Denali Highway between Cantwell and Valdez Creek Mine
access road.
University of Alaska, Fairbanks
Rural Colleges
Define Tanana Valley Campus as a separate component.
Senator Kelly OBJECTED. Co-chair Frank asked that intent
for the University be temporarily HELD in abeyance. Senator
Kelly later WITHDREW his OBJECTION, and the foregoing intent
for the University was APPROVED.
Dept. of Administration - Leasing and Facilities
It is the intent of the legislature that each new or
renewing lease be negotiated to ensure the consolidation of
existing space by not less than 10%.
Dept. of Administration
Public Defender Agency
Office of Public Advocacy
The agencies are to request authority to receive GF/PR from
recovery of appointed counsel costs via Legislative Budget
and Audit Committee.
Dept. of Commerce and Economic Development
Division of Tourism
Funding of $125.0 is to be utilized for development of a
highway marketing plan based on the following:
$25.0 to sustain Alaskan participation in the
joint highway marketing organization between the
Yukon Territory, Alaska, and British Columbia.
$65.0 to increase production and distribution of
Tourism North's publication "North to Alaska."
$35.0 to attend major auto/RV events and advertise
through "highway road shows" and highway publications.
Dept. of Public Safety
Eight items of intent as follows:
Fish and Wildlife Protection
Enforcement and Investigative Services -
Operations may be increased from sources other
than GF. Dept. shall bring revised program
requests to the LBA committee in an amount up to
$1,200,000.
Marine Enforcement - Operations may be increased
from sources other than GF. Dept. shall bring
revised program receipt requests to LBA in an
amount up to $250,000 from new assessments, such
as crab pots or fishing vessel licenses.
Highway Safety Planning Agency
Of the Section 153, Title 23, ISTEA increment,
$1,500,00 is to be used for safety turnouts and
signage along the Seward Highway, including
$500,000 for the Potter Road turnout.
Alaska State Troopers - Director's Office
Upon passage of SB 365, a portion of GF/PR is for
administrative costs. The department is
authorized to RSA, to the extent that program
receipts reduce need for general fund support, the
funds to enforcement BRUs including the Alaska
State Troopers, Fish and Wildlife Protection and
Village Public Safety Officers.
Village Public Safety Officers - Contracts
Transfer of interagency receipts from the
Director's Office to the contracts component in
the Village Public Safety Officers BRU is
authorized if additional general fund program
receipts are received as a result of passage of SB
365, and such program receipts reduce the need for
general fund support of this component.
Violent Crimes Compensation Board
It is the intent of the legislature that an amount
equal to twenty-five percent of additional funds
received as a result of passage of HB 119 (day
fines) be appropriated to this component, in the
front section of the budget. This amount is
estimated by the Court System to equal $100,000.
Council on Domestic Violence and Sexual Assault
It is the intent of the legislature that an amount
equal to twenty-five percent of additional funds
received as a result of passage of HB 119 (day
fines) be appropriated to this component, in the
front section of the budget. This amount is
estimated by the Court System to equal $100,000.
Statewide Support - Administrative Services
A portion of the GF/PR is for administrative costs
associated with passage of SB 365. The department
is authorized to RSA funds, to the extent that
such program receipts reduce need for general fund
support, to enforcement BRUs, including the Alaska
State Troopers, Fish and Wildlife Protection, and
Village Public Safety Officers.
Senator Kerttula voiced OBJECTION to Intent No. 3 relating
to safety turnouts and signage along the Seward Highway and
Potter Road, but he subsequently WITHDREW his OBJECTION. No
objection having been raised, all eight items of intent were
ADOPTED.
Dept. of Health and Social Services
Co-chair Pearce next directed attention to seven items of
intent for the Dept. of Health and Social Services. Senator
Rieger asked that Intent No. 6 (Harborview receipt of
Community Development Grant I/A receipts) be WITHDRAWN since
the interagency receipt authority mentioned therein is
already included in the budget. Senator Kerttula voiced
OPPOSITION, on the basis of equity, to block grants to
Anchorage and Fairbanks. Co-chair Pearce commenced a
reading of the remaining six items of intent. An overview
of that language follows:
Medicaid Assistance-Medicaid Non-Facility
It is the intent of the legislature that the
department use managed care case workers for
utilization control and to direct clients to cost-
effective treatment.
Medical Assistance-Medicaid Facilities
It is the intent of the legislature that the
department use managed care case workers for
utilization control and to direct clients to cost-
effective treatment.
Anchorage Human Services Block Grant
It is the intent that funds are to be matched by
the Municipality of Anchorage at a 70/30 percent,
state/municipality match.
Fairbanks Human Services Block Grant
It is the intent that funds are to be matched by
the City of Fairbanks North Star Borough at a
70/30 percent, state/city-borough match.
Purchased Services - Residential Child Care
The reduction in this component is intended to
reduce the number of beds purchased from Alaska
Children's Services and will not result in the
reduction of purchased beds in other facilities.
DEPT. OF FISH AND GAME
Senator Kerttula renewed his MOTION for adoption of the
funding statement relating to the Sikusuilaq hatchery (see
pages 8 and 9 of these minutes for earlier discussion). Co-
chair Pearce explained that the Senate budget contains money
to fund the hatchery. The House budget initially deleted
funding, added it back at the full committee level, and then
took a 2.5% reduction. The department has indicated that if
it must take the 2.5% cut, it would not fund Sikusuilaq.
Senator Adams has requested, via Senator Kerttula, that the
Senate budget include language requiring that the department
allocate a minimum of $360.0 for operation of the hatchery.
Co-chair Pearce advised that addition of the language is
consistent with the Senate budget.
In response to a question from Senator Sharp, Co-chair
Pearce explained that the House budget cut $1.3 million
while the Senate cut $2.2 million. Senate reductions were
thus greater until the House took a 2.5% unallocated
reduction. The House has now effected greater cuts than the
Senate, but most of those reductions are unallocated.
Senator Sharp voiced his understanding that addition of the
proposed language would shield the Sikusiulaq hatchery from
more than 2.5% of the unallocated reduction.
Co-chair Frank called for objections to inclusion of the
language. No objection having been raised, the motion
CARRIED and the language was ADOPTED.
At this point, Co-chair Frank directed that the meeting be
briefly recessed prior to review of the front sections of
the budget.
RECESS - 11:40 P.M.
RECONVENE - 12:20 A.M.
FRONT SECTIONS
MIKE GREANY, Director, Legislative Finance Division, and
VIRGINIA STONKUS, fiscal analyst, Legislative Finance, came
before committee to speak to front sections 1 through 40 of
SCS CSHB 370 (Finance). Mr. Greany directed attention to
work draft "U," dated 4/20/94, and explained that Secs. 1,
2, 3, 4, 5, 7, and 8 reflect boilerplate language contained
in the budget each year. He then proceeded to highlight the
contents of remaining sections:
Sec. 6. Allows for recovery of insurance payments, subject
to LBA review.
Sec. 9. Contains annual appropriations from the
international airport revenue fund.
Sec. 10. Appropriates general fund moneys to the debt
retirement fund to cover AHFC lease payments for
the City of Seward, City of Kenai, Dept.
of Natural Resources, and Alaska Court
System.
Sec. 11. Appropriates general funds to the debt retirement
fund for payments and trustee fees on state
general obligation bonds.
Sec. 12. Transfers funding from the earnings reserve
account to the dividend fund for payment of
permanent fund dividends and
administrative costs.
Sec. 13. Transfers inflation proofing moneys from the
earnings reserve account to the principal of the
Alaska permanent fund.
Sec. 14. Appropriates interest earned on revenues to the
principal of the Alaska permanent fund.
Sec. 15. Funds required deposits to principal of the Alaska
permanent fund under the designated percentage
splits before and after December, 1979.
Sec. 16. Appropriates lapses from the employment assistance
and
training program to the unemployment compensation
fund.
Sec. 17. Appropriates unrestricted mortgage loan interest
payments and all other unrestricted receipts accruing
to Alaska Housing Finance and all income
earned on assets of the corporation to the
Alaska housing finance revolving fund. A new
subsection (d) appropriates $200,000,000 from
available unrestricted cash in AHFC's general
account to the state general fund for receipt
during FY 95. This appropriation follows a
report to LBA indicating a balance in excess
of $500,000,000. Language allows for phased-
in payments rather than a lump-sum payment to
ease the impact on AHFC.
Sec. 18. Appropriates moneys from the commercial fishing
revolving loan fund to the fisheries enhancement
revolving loan fund.
Sec. 19. Appropriates the balance of the oil and hazardous
substance release mitigation account to the oil
and hazardous substance release response fund.
The amount of $4,432,200 is also appropriated from
the oil and hazardous substance release mitigation
account to the storage tank assistance fund.
Sec. 20. Appropriates the $25,900,000 from the oil and gas
surcharge from the general fund to the oil and
hazardous substance release response fund and
further appropriates that amount based on a 60/40
split of the nickel surcharge to the following
accounts:
Oil and hazardous substance
release prevention account
$15,540,000
Oil and hazardous substance
release response account
$10,360,000
Sec. 21. Contains further appropriation language relating
to the
oil and hazardous substance release response fund
and associated legislation (SB 215) impacting the
fund.
Sec. 22 Appropriates funds to the Dept. of Law and Dept.
of Revenue for oil and gas litigation. The
$15,265,000 total appropriation is comprised of
$3,750,000 for the Dept. of Law from permanent
fund corporate receipts and $11,250,000 from the
constitutional budget reserve as well as a
$265,000 general fund appropriation to the Dept.
of Revenue. In response to an inquiry from
Senator Rieger concerning the general funds, Mike
Greany advised that general funds were utilized by
the governor in his legislation. The House
maintained general funds as a funding source but
also applied a 2.5% unallocated reduction. The
House, like the Senate, split Dept. of Law funding
between the permanent fund and constitutional
budget reserve. Funding from the constitutional
budget reserve dropped out of the House budget
when the three-quarter vote was not garnered. Co-
chair Frank indicated that handwritten numbers for
permanent fund and constitutional budget reserve
funding for Dept. of Law reflect a compromise.
JIM BALDWIN, Assistant Attorney General, Dept. of
Law, advised of his understanding that most of the
funding to the Dept. of Revenue would provide for
contractual services relating to tax cases.
Sec. 23. Appropriates $3,599,600 for fire suppression.
Mike Greany explained that it would "match up
with, but not duplicate," amounts
incorporated within the subcommittee budget
for the Dept. of Natural Resources. It is
funded here rather than in the back pages of
the budget.
Sec. 24. The $22,150,400 appropriation for information
services must match-up with subcommittee funding for
Dept. of Administration telecommunications
and data processing charge backs as well as
the amendment effecting an agencywide
reduction. Mr. Greany then requested
latitude to match those dollars in finalizing
the Senate budget.
Sec. 25. Contains the $28,397.2 general fund appropriation
to the Alaska marine highway system which funds a
portion of system operations. The other
portion is funded from marine highway
revenues. Senator Kelly inquired concerning
last year's figure. FRED FISHER, fiscal
analyst, Legislative Finance Division,
advised of $28,718.2. Senator Kerttula
voiced his understanding that revenues for
the system may be projected at a higher level
for the coming year and thus cover the
reduction from FY 94 to FY 95.
Sec. 26. Appropriates $1,100,000 from the mental health
trust
income account to the unreserved portion of the
general fund for statewide indirect cost recovery
for mental health programs.
Sec. 27. Appropriates receipts of the tank registration fee
program to the storage tank assistance fund. The
estimated amount is $450.0.
Sec. 28. Extends the lapse date on funding for the
governor's
safety conference. Mike Greany explained that the
conference straddles fiscal years. The
administration will commence collecting funds this
year for use in the next fiscal year.
Sec. 29. Appropriates $8,000,000 of surplus AETNA reserves
in the
group health and life benefits fund to the Office
of Management and Budget to allow an offsetting
general fund reduction of $8 million to be
calculated and apportioned out to agencies paying
insurance premiums. This differs from the House
approach and that of the governor where moneys
were appropriated from the reserve to the general
fund. Mr. Greany advised that the Senate
"approach actually takes it as a reduction from
the budget," since it offsets general funds.
End, SFC-94, #70, Side 1
Begin, SFC-94, #70, Side 2
Sec. 30. Rather than request a new appropriation this year
for the
disaster relief fund, Sec. 30 simply rolls the FY
94 balance forward into FY 95. This approach
appears both in the governor's and House budget.
Sec. 31. Rolls Alaska Public Utilities Commission moneys
forward
into next year as an offset to amounts the
commission would assess to regulated utilities for
commission costs.
Sec. 32. Appropriates $65,000 from the rural
electrification
revolving loan fund to the general fund.
Sec. 33. This section,appropriating moneys from the
earnings reserve account to the Alaska Permanent Fund
Corporation for payment of investment
management fees, should be deleted based on
committee action incorporating the
subcommittee budget for the Dept. of Revenue.
That budget appropriates approximately $22
million for these fees. Sec. 33 is thus
redundant. Co-chair Pearce MOVED, and asked
unanimous consent to delete Sec. 33 from SCS
CSHB 370 (Finance), "U" version. Senator
Kelly asked if funding for fees contained
within the Dept. of Revenue budget was from
the earnings reserve account. Mr. Greany
responded, "These are the corporate receipts-
-other funds." Senator Kelly asked why the
subcommittee took that approach. Mr. Greany
explained that while he could not speak for
the subcommittee, the general argument would
be that by placing the funding in the back
pages, a specific, known amount is
appropriated versus a blanket appropriation
in the front section. No objection to
deletion of Sec. 33 having been raised, it
was DELETED.
Sec. 34. Contains annual language appropriating shared
taxes.
Specific dollars amounts are included in back
pages. Front section language is controlling.
Back section funding is, for information purposes,
the estimated amount of the shared taxes. The
estimate for FY 95 is approximately the same as
last year.
Sec. 35. Provides language appropriating the salmon
enhancement
tax--private aquaculture association moneys.
Sec. 36. Rolls FY 94 ASMI seafood marketing assessment
collections
into FY 95.
Sec. 37. Reflects a new section based on a recent audit.
The
audit highlighted the fact that funding from the
real estate surety fund requires an appropriation.
Sec. 37 provides that appropriation to the Dept.
of Commerce and Economic Development. The
appropriation was not part of the governor's
budget. The House incorporated the appropriation
as an amendment but included a provision requiring
LBA review and approval.
Sec. 38. DAVE SKIDMORE, aide to Co-chair Frank, explained
that
appropriations and language within Sec. 38 and its
subsections relate to SB 378. Relevant portions
of that bill shorten the length of time before
permanent fund dividends forfeited by convicted
and incarcerated felons are available for
appropriation. If the bill passes, moneys that
would normally be available in FY 96 will become
available in FY 95. Two specific purposes and
amounts are identified:
Misdemeanant Services $1,817,500
Community Residential
Center Substance Abuse
Counseling/Services 175,200
If additional funding is available from dividends,
the general fund appropriation to the Dept. of
Corrections would be reduced by the amount of the
excess. If less money is available, funding for
the above-noted services would be reduced on a
prorata basis.
Sec. 39. Mike Greany explained that the $37,600,000
appropriation
from the investment loss trust fund to the general
fund reflects part of the settlement with
Executive Life. Additional funding from the
settlement will be forthcoming and available for
future appropriation.
Subsection (b) appropriates $60,000,000 from the
Alaska Industrial Development and Export Authority
revolving fund to the general fund. Mr. Greany
suggested that language within the subsection be
deleted and replaced with wording similar to that
utilized in Sec. 17 (d) to effect the
appropriation from AHFC. The appropriation from
AIDEA would thus be structured so that moneys
would flow to the general fund as they are
available and would in no way impair the
Authority's bond rating. Co-chair Pearce MOVED to
delete Sec. 39(b) language at page 10, lines 2 and
3 of SCS CSHB 370 (Finance), work draft "U" and
replace it with language inherently like that for
AHFC in Sec. 17(d). She stressed that the amount
to be appropriated in the new Sec. 39(b) is
$60,000,000.
Mike Greany explained that subsection 39(c) states
that amounts necessary to balance the FY 95 budget
(considering all revenue sources) would come from
the constitutional budget reserve fund, subject to
provisions of sec. 17(c) which require a three-
quarter vote.
Sec. 40. Later in the meeting, Senator Rieger asked why
appropria- tions within Secs. 24 and 25 were
included within nonlapsing provisions of
AS 37.25.010. Mike Greany explained
that the appropriations capitalize
funds.
FRONT SECTION AMENDMENTS
Co-chair Frank directed attention to Amendment No. 1 and
explained that it attempts to track House action
appropriating $68.7 million from the constitutional budget
reserve (art. IX, sec. 17) to the general fund for oil and
gas litigation from July 1, 1990, through February 15, 1994,
that is attributable to the constitutional budget reserve
fund. That would reduce the amount required under Sec.
39(c) to balance the FY 95 budget. Co-chair Pearce MOVED
for adoption of Amendment No. 1 (8-GH2027\U.1, Utermohle,
4/20/94). No objection having been raised, Amendment No. 1
was ADOPTED.
Senator Rieger noted that in explaining Sec. 39(c), Mr.
Greany advised of need for a three-quarter vote. The
Senator then suggested that need for that vote is not clear
for either Sec. 39 or the new section proposed by Amendment
No. 1 and further voiced his belief that a three-quarter
vote would not necessarily be required.
Co-chair Frank next directed attention to Amendment No. 2.
Senator Rieger MOVED for adoption of Amendment No. 2,
appropriating 25% of day-fine collections from the general
fund to the Dept. of Public Safety, Violent Crimes
Compensation Board, and 25% to the Council on Domestic
Violence and Sexual Assault. He explained that Amendment
No. 2 parallels action taken on HB 119. Senator Kelly
inquired concerning the total amount involved. Senator
Rieger advised of Dept. of Law estimates of approximately
$400.0. For the coming year, that amount is likely to be
significantly less since the court must adopt court rules
prior to implementation. Co-chair Frank voiced reluctance
over adoption of the amendment and suggested that day-fine
funding for the Violent Crimes Compensation Board and the
Council on Domestic Violence and Sexual Assault be limited
to $100.0 each. He then MOVED for adoption of that
conceptual amendment within Amendment No. 2. No objection
having been raised, the conceptual amendment to Amendment
No. 2 was ADOPTED. Co-chair Frank then called for
objections to adoption of Amendment No. 2, as amended. No
objection having been raised, Amendment No. 2 was ADOPTED AS
AMENDED.
VIRGINIA STONKUS, fiscal analyst, Legislative Finance
Division, highlighted the following differences between the
front section of the Senate budget and that of both the
House and the governor.
1. The governor's bill contains a section relating to
debt retirement. That section was deleted and
addressed in HB 505.
2. Sec. 33 of the House bill relates to the four-dam-
pool transfer fund and follows through on an LBA
recommendation and enabling legislation.
Since HB 372 has passed the House and is
awaiting floor action for passage in the
Senate, language embodied in the front
section of the House budget is no longer
necessary. It was thus eliminated from the
front section of the Senate budget.
Co-chair Pearce MOVED and requested unanimous consent that
SCS CSHB 370 (Finance) pass from committee with individual
recommendations. No objection having been raised, SCS CSHB
370 (Finance) was REPORTED OUT of committee. All members
signed the committee report with a "do pass" recommendation
with the exception of Senator Kerttula who signed "no rec."
(Senator Jacko was absent from the meeting and did not sign
the report.)
ADJOURNMENT
The meeting was adjourned at approximately 1:10 a.m.
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