Legislature(1995 - 1996)
04/09/1996 10:20 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
9 April 1996
10:20 A.M.
TAPES
SFC-96, # 69, Sides 1 & 2
CALL TO ORDER
Senator Steve Frank, co-chairman, convened the meeting at
approximately 10:20 A.M.
PRESENT
Co-chairman Frank along with co-chairman Halford and
Senators Rieger and Phillips were present when the meeting
convened. Senators Zharoff, Donley and Sharp did not
attend.
Also Attending: Joseph L. Perkins, Commissioner, Department
of Transportation and Public Facilities; Barbara Ritchie,
Deputy Attorney General, Civil Division, Department of Law;
Nancy Slagle, Director, Office of Management and Budget;
Laurie H. Otto, Deputy Attorney General, Criminal Division,
Department of Law; Jim Nordlund, Director, Division of
Public Assistance, Department of Health & Social Services;
Karen Perdue, Commissioner, Department of Health & Social
Services; Bob Baratko, Director Administrative Services
Division, Department of Revenue; Mike Greany, Director,
Division of Legislative Finance; and aides to committee
members.
Craig Tillery, Environmental Section, Civil Division,
Department of Law testified via teleconference.
SUMMARY INFORMATION
CS FOR HOUSE BILL NO. 468(FIN) am
"An Act making supplemental appropriations for the expenses
of state government and making and amending appropriations;
ratifying certain state expenditures; and providing for an
effective date."
Senator Halford moved SCS CSHB 468(FIN), draft, and it was
adopted for work purposes. Co-chairman Frank reviewed CSHB
468 FY 96 supplemental appropriations for committee members.
Senator Halford moved amendment to section 8(a) requesting
source changes for additional judgments in the amount of
$199,096 and amendment to section 14(a) for additional stale
dated warrant in the amount of $43,563 and they were
adopted. The above-listed individuals answered questions
posed by the committee. Senator Halford moved SCS CSHB
468(FIN) and without objection it was reported out with
individual recommendations.
CS FOR HOUSE BILL NO. 468(FIN) am
"An Act making supplemental appropriations for the
expenses of state government and making and amending
appropriations; ratifying certain state expenditures;
and providing for an effective date."
Co-chairman Frank convened the meeting. He reviewed HB 468
for the committee referring to the following sections that
were not included: Section 1 referred to the grants to the
longevity bonus. The administration has submitted a
longevity bonus supplemental for $1.6 million. Next was
Kluti-Kaah supplemental appropriations for $8.3 million.
That had not been included at this time because the tribal
issue was still being researched. The next item not
included was the grant to Alaska Legal Services Corporation.
Section 4, extension of lapsed date for DOE on the
appropriation for the foundation formula was included as
requested by the Governor. The way it was planned to
structure the disparity issue for 1996 and 1997 is in SB 244
to increase the deduct from 95% as proposed by the
administration to 96% to make it revenue neutral and to
apply it to FY 96, negating the need for this section, and
that was why the above sections were left out. The
administration's memo dated yesterday does not have that
reflected because SB 244 has not passed yet and it would be
premature to take that out. The next area of difference is
section 6(b) which was a request for navigable water support
in habitat and also wildlife conservation for $150,000 and
$200,000. This request was put in by Senate Finance
Committee, recommended by Senator Frank. Section 8 was the
Department of Law's judgments and claims received after the
house had considered their request. Section 9, Military and
Veterans retirement fund was increased from $6.5 million to
$8 million which would allow a $1 million reduction in the
Governor's budget request for FY 97. Section 10(b) also
applied to navigable waters under the Department of Natural
Resources for $270,000. Section 11(a) the amount for the
increased lease costs for AHFC were reduced from $198.2 to
$150,000. The next area was the Permanent Fund Dividend
Division. The House had not received their request. It was
reduced down to $103.8. DOTPF, Copper River Highway
Restoration, for which a recommendation was not put in. He
referred to a memo from the Commissioner of Department of
Transportation dated the day before with further
explanation. Section 13 was a salary and benefits study
for $500,000 put in at the request of Representative Hanley.
It will be up to the LBA committee to decide this matter and
Senator Phillips asked that a time frame limit be put on
this matter. Section 14 was stale dated warrants. Section
15 was a ratification of prior year expenditures which were
not received in time for consideration by the house.
Department of Public Safety for $1.1 and the Legislature for
$1,000 were also included.
Commissioner Joe Perkins was invited to join the committee.
He explained the Copper River Restoration and said further
comments would come from Craig Tillery via teleconference or
Barbara Ritchie who was also invited to join the committee.
Craig Tillery testified via teleconference. He explained
section 12 and restoration activities which cost about
$720,000. Other costs included $20,000 for public service
announcements and $40,000 for environmental training for DOT
staff. There was damage to the northern part of the Copper
River Highway and also the existing road bed while being
worked on in 1991. Part of the settlement included that the
Department of Justice agreed to not seek restoration of the
southern half of work. Restoration was set up that if the
legislature did not fund these activities by September 1998
the settlement will become null and void and litigation will
be resumed. The next part of the settlement would be for
costs and attorney fees arising out of settlements. The
money would not be used to sue the State of Alaska.
Nancy Slagle, OMB was invited to join the committee and
referred to a memo dated 9 April 1996 which asked for
changes to sections of the bill dealing with the Department
of Law, judgments and claims, and Department of
Administration, stale dated warrants.
Barbara Ritchie, Department of Law, referred to items 18 and
19 which both arise out of an appeal of a local boundary
decision regarding the incorporation of the City of Pilot
Point. The first item totalling $6,051. is out of the
Supreme Court case and the second item refers to the
Superior Court case. The state did prevail on Title 29 for
the levying of taxes. The amount of reasonable attorney
fees is being paid by the State of Alaska and the City of
Pilot Point in equal halves.
Laurie Otto, Department of Law was invited to join the
committee. She referred to work done on the Cleary case.
Most of the fees were related to litigation of the State's
decision to transfer inmates to a private facility in
Arizona. This litigation is still ongoing. She further
explained the historical 1983 federal Cleary case. The
State won on the temporary restraining order and the issue
of whether it is permitted or not has been argued and
briefed but presently is still pending decision by the
Court. The amount presently pending before the committee
was for Court ordered full attorney fees.
Senator Halford moved SCS CSHB 468(FIN) work draft and
without objection it was adopted. Senator Halford moved
amendment to section 8(a) requesting source changes for
additional judgments in the amount of $199,096. and
amendment to section 14(a) for additional stale dated
warrant in the amount of $43,563. and without objection they
were adopted.
Karen Perdue, Commissioner, Department Health and Social
Services and Jim Nordlund, Director, Division of Public
Assistance were invited to join the committee. Mr. Nordlund
explained the amount of time spent on programs as outlined
in section 7(b).
(off record - return)
Senator Halford moved numbers 18 and 19 from the summary
sheet under judgments and claims in the amounts of $6,000
and $8,000 related to the boundary commission cases and
without objection they were adopted.
Bob Baratko, Department of Revenue was invited to join the
committee. He addressed the request by the permanent fund
dividend division for $150,000. It will be necessary to
shut down the division for the last two weeks of the fiscal
year without this funding.
Following further miscellaneous conversation between
committee members Senator Halford moved SCS CSHB 468(FIN)
and without objection it was reported out with individual
recommendations.
ADJOURNMENT
Co-chairman Frank continued the calendar until 1:30 P.M.
today.
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