Legislature(1995 - 1996)
04/30/1996 10:25 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
30 April 1996
10:25 A.M.
TAPES
SFC-96, #102, Sides 1 and 2
SFC-96, #103, Sides 1 and 2
SFC-96, #104, Sides 1 and 2
SFC-96, #105, Side 1
CALL TO ORDER
Senator Rick Halford, Co-chairman, convened the meeting at
approximately 10:25 A.M.
PRESENT
In addition to co-chairman Halford, co-chairman Frank,
Senators Zharoff, Sharp, Donley, Rieger and Phillips were
present when the meeting was convened.
Also Attending: Senator Al Adams; Senator Mike Miller;
Senator Lyda Green; Senator Robin Taylor; Representative
Carl Moses; John Bitney, Legislative Liaison, Alaska Housing
Finance Corporation; Wendy Redmond, Vice President for
University Relations, University of Alaska; Carol Carroll,
Special Assistant, Office of the Commissioner, Department of
Natural Resources; Sam Kito III, Legislative Liaison/Special
Assistant to the Commissioner, Department of Transportation
& Public Facilities; Arthur Snowden, Administrative
Director, Alaska Court System; Chris Christensen, Staff
Counsel, Alaska Court System; Sharon Barton, Director,
Administrative Services, Department of Administration; Joe
Thomas, State Accountant, Division of Finance, Department of
Administration; Karen Rehfeld, Director, Administrative
Services, Department of Education; Nico Bus, Acting
Director, Division of Support Services, Department of
Natural Resources; Nancy Slagle, Director, Office of
Management and Budget; Kevin Brooks, Director, Division of
Administrative Services, Department of Fish and Game; Laura
Baker, Budget Analyst, Office of Management and Budget;
Remond Henderson, Director, Administrative Services,
Department of Community & Regional Affairs; Geron Bruce,
Legislative Liaison, Office of the Commissioner, Department
of Fish & Game; Janet Clarke, Director, Administrative
Services, Department of Health & Social Services; Elmer
Lindstrom, Special Assistant to the Commissioner, Department
of Health & Social Services; Don Koenigs, former Petersburg
mayor; John Winther, Petersburg businessman; Keith Kelton,
Director, Division of Facility Construction & Operation,
Department of Environmental Conservation; Margaret Pugh,
Commissioner, Department of Corrections; Marla Berg, staff
aide to Senator Al Adams; Thomas Brigham, Director, Division
of Statewide Planning, Department of Transportation & Public
Facilities; Annalee McConnell, Director, Office of
Management & Budget; Bob Baratko, Director, Administrative
Services, Department of Revenue; Glenda Straub, Director,
Central Office, Child Support Enforcement Division,
Department of Revenue; Laurie Otto, Deputy Attorney General,
Criminal Division, Department of Law; Randy Simmons, AIDEA;
Mike Greany, Director, Division of Legislative Finance; Fred
Fisher, Susan Taylor, Jetta Whittaker, Kathryn Daughhetee,
Fiscal Analysts, Division of Legislative Finance; and aides
to committee members.
SUMMARY INFORMATION
2d CS FOR SENATE BILL NO. 136(FIN)
"An Act making, amending, and repealing appropriations;
making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the constitutional
budget reserve fund; and providing for an effective date."
Co-chairman Halford called the meeting to order and
introduced 2nd CSSB 136. A short review was given by
Senator Rieger regarding transportation hearings.
Amendments 1 through 41 were submitted. Amendments 1, 2, 5,
7, 8, 9, 12, 14, 15, 16, 22, 23, 24, 25, 26, 27, 29, 31, 32,
35, 36, 37, 38, 39, and 41 were adopted. Senator Frank
moved 2nd CSSB 136(FIN) and by a vote of 4 - 2 and 1
abstaining the bill was reported out of committee with
individual recommendations.
2d CS FOR SENATE BILL NO. 136(FIN)
"An Act making, amending, and repealing appropriations;
making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for an
effective date."
Co-chairman Halford introduced SB 136 and said it was a
combination to date of the work of the Transportation
Committee and the State Affairs Committee who has been
working on the AHFC portion and the general fund portions of
the Governor's capital bill.
Senator Rieger gave a short review on the transportation
hearings regarding the Governor's capital budget. The first
hearings had to do with the six-year plan of the Department
of Transportation which was held 20 February 1996 with
Commissioner Perkins. The only Governor's requests which
were not heard were those submitted late last week.
Senator Sharp gave a short review on the AHFC hearings which
were primarily through the finance subcommittee for the
Department of Revenue. The recommendations made to the co-
chair on Alaska Housing Finance and reflected in the bill
before the committee was that most of the new components and
not in previous years were denied except for AHFC
replacement of telephone systems. Funding between
supplemental housing up to low-income weatherization program
was switched. This resulted in several million dollars more
in the low-income weatherization program than originally
requested because there was information that much money had
already been applied for or qualified for low-income
weatherization.
Co-chairman Halford indicated that the draft before the
committee included of the general fund $99,819 million. It
included changes to AHFC in two water-sewer projects.
Wrangell and Unalaska DEC and landfill projects were added
to the Governor's AHFC which included small water-sewer
projects. The bill contained almost nothing in add-ons and
a few re-allocations and changes. Senator Sharp had a
package that was worked on through the Fish and Game
operating budget and there were a number of transfers to
capital from operating.
Senator Sharp reviewed the operating budget and said there
was a reduction of $2 million Fish and Game funds and
recommended adding back to the capital budget specific
projects amounting to $1,390 million of which $200,000 is
federal Fish and Game funds and $1,190 million is state Fish
and Game funds for projects that were in the operating
portion but was felt more appropriate they be in the capital
budget. That was Potter's Marsh, Rabbit Creek Rifle Range
and facility improvements which are keyed toward statewide
areas wherein the Division of Wildlife Conservation would
coordinate with Department of Natural Resources on
determining logging techniques, habitat restoration and also
regarding private lands agreements to establish pilot
projects to better re-establish habitat. Co-chairman
Halford indicated these were Fish and Game funds rather than
general funds.
He further reviewed staff recommendations and restorations
to the Governor's budget including the Rural Utilities
Business Assistance Program at the request of Department of
Commerce; Village Safe Water remained as it was; Department
of Education remained as it was with the exception of
changes in the Juneau appropriation regarding two projects;
two projects for municipal sanitation went to AHFC for
Unalaska and Wrangell; above ground storage tanks were
funded from the 470 fund instead of the general fund and
moved from DEC to DE&RA; deletion of South Denali Wildlife
study in Fish and Game; transfer from the operating budget
on protection of State's rights; denial of the
lease/purchase proposal by the Administration for
technological equipment in the amount of $1.4 million;
Johnson Youth Center was still under consideration in the
amount of $3 million; consideration of a bond package for
adult and juvenile corrections including private
alternatives; increase in the supplemental for settlement of
the Kirk case in the amount of $2.6 million; reduction in
deferred maintenance with the allowance of $1 million;
increase in geological/geophysical surveys of $600,000 of
which $200,000 is Western Alaska Aerial Magnetic; proposal
from Fish and Wildlife Protection that was considered on the
sale of 2 -3 Grumman aircraft which resulted in an increase
in program receipts if the sale is made added to their
maintenance repair which included $500,000 general funds and
$500,000 program receipts if the sale is made; operating
transfers, AST equipment, license plates, Public Safety
Information Network was included in the budget; request from
Department of Revenue on a CSED project that was denied
because existing match balance available from a prior year;
and Bethel erosion at $1.7 million. The majority of the
bill was as the Governor requested. He referred to two
inserts at the end of the back section. One regarded what
was instructed on the transfer of above ground storage tanks
from DEC to DC&RA and the other regarded language that was
inadvertently omitted when the transportation committee bill
was brought forward on STIP. They were included in the CS
before the committee. Senator Rieger moved the present CS
before the committee as a work draft and without objection
it was adopted.
Senator Zharoff moved amendment #1 regarding Ouzinke Power
reflecting a title change to meet the down time experienced
over the past winter. There would be no monetary change,
just the title. He verified that this was their request
through the system and OMB had been given a copy of this.
Without objection, amendment #1 was adopted.
Senator Zharoff moved amendment #2 regarding a late request
for the capital matching grant for the City of Akhiok. This
would cover a new land fill site. Without objection,
amendment #2 was adopted.
Senator Donley moved amendment #3. Tom Brigham, DOT was
invited to join the committee and said that the project was
included in the 1996 STIP for design. He said he would
check to see if a specific line item would be necessary.
Co-chairman Halford said he would hold this amendment
pending an answer back from Mr. Brigham. Senator Donley
concurred.
Co-chairman Halford said there was a question brought up
from Petersburg on page 11, line 11 regarding Petersburg
Cabin Creek Watershed Development Project. The request was
to insert "only for existing platted lower road". Senator
Zharoff moved amendment #4.
Mr. Don Koenigs, former Petersburg mayor was invited to join
the committee. He said he was a general contractor in the
City of Petersburg. He supported the conceptual amendment
and said he spoke on behalf of three ex-mayors of Petersburg
all supporting this amendment. He explained the Petersburg
Cabin Creek Watershed Project. The proposed road would also
provide access for two subdivisions. In 1994 a change in
the city council of Petersburg resulted in moving the road
outside the platted right-of-way and ultimately this will
cause several access roads having to be built. The issue
has divided the community with the exception of the
importance of getting water which all support. He asked the
committee to support this amendment as it would result in a
win/win situation for Petersburg.
John Winther, Petersburg resident was invited to join the
committee. He supported the amendment and urged the
committee to support it. The 1993 original deal should be
complied with. After further discussion regarding this
matter between Mr. Koenigs, Mr. Winther and the committee,
Senator Donley requested to hear from Department of
Environmental Conservation.
Keith Kelton, DEC was invited to join the committee. He
said he was unaware of this issue. When the Department
evaluated the project it was based on the need to provide a
water supply for residential and industrial growth in the
City of Petersburg. The issue of the road had not been
raised to the Department and is a local issue. The
Department felt the present language was appropriate. Ms.
Slagle concurred.
Co-chairman Halford suggested amendment #4 be withdrawn and
Senator Zharoff complied. Senator Phillips moved amendment
read "Cabin Creek consensus Watershed Development Project"
and without objection it was adopted.
(The committee took a brief at ease from 11:30 a.m. until
11:55 a.m.)
Senator Donley moved amendment #6 regarding designated grant
to victims for justice. He referred to the volunteers of
the Court Watch program and noted they were the only
statewide victims' group. Co-chairman Halford indicated he
considered this a good amendment but would support it at a
later date. Upon a vote of 5 -2 amendment #6 failed to be
adopted.
Senator Sharp moved amendment #7 regarding addition of AHFC
language on page 17 and without objection it was adopted.
Senator Sharp moved amendment #8 regarding an increase in
AHFC receipts and without objection it was adopted.
Senator Frank moved amendment #9 regarding federal funds for
the Department of Health and Social Services.
Janet Clarke, DHSS was invited to join the committee and
testified on behalf of the amendment. $2 million would be
available in food stamp funds via electronic benefit
transfer. She explained the process and said it had greatly
helped reduce food stamp fraud. Since Alaska has a small
volume of users they combined with the states of Colorado,
Wyoming and Hawaii in order to get a better transaction
price. Without objection amendment #9 was adopted.
Senator Zharoff moved amendment #10 to re-insert the Johnson
Youth Center.
Margaret Pugh, Commissioner, DOC was invited to join the
committee. She explained the severe overcrowding at the
facility; it having eight beds and typically housing
eighteen children. If capacity is not increased it means
children from southeast Alaska will have to be sent to
McGlaughlin, Bethel or Fairbanks causing overcrowding in
those facilities and also separating the children from their
families. Construction could be commenced in the spring and
it would allow immediate relief to the system. Upon a vote
of 5 - 2 amendment #10 failed to be adopted.
Senator Zharoff moved amendment #11 and said it had to do
with funding for schools. There may have been some
misunderstanding on the amount originally included that it
did not take into account another high priority in the
district.
Karen Rehfeld, DOE was invited to join the committee and
testified that the department's priority list for major
maintenance projects included the Juneau-Douglas High School
roof repair in the amount of $646,900 as priority one and
priority three was the Mendenhall River School roof project
for $1,365,200. The Governor's request included $1 million
for Juneau school district roof repairs. Upon a vote by the
committee amendment #11 failed to be adopted.
Senator Sharp moved amendment #12 regarding page 13, lines
24 and 25 be eliminated referring to $1.6 million for public
health laboratory planning and design. Without objection
amendment #12 was adopted.
Senator Zharoff moved amendment #13. Nico Bus, DNR was
invited to join the committee and explained the amendment
regarding the land status geographic information system.
This was a multi-year project with approximately 1,000
townships left to be converted from manual maps to
digitalized maps. These new digitalized maps were used by
all resource managers to make land management decisions
quicker and make the information as soon as possible
available to the public. If stopped now, this would leave
the project incomplete. Senator Zharoff said no figures
relating to this were in the Senate version of the capital
budget. He referred to a reduction in the Wainwright sewer
and water project from $190,000. That was at the request of
the sponsor of the amendment.
Marla Berg, staff aid to Senator Al Adams was invited to
join the committee. She said there would be no money
involved, just a transfer. Co-chairman Halford said the
effect of the amendment would be an increase of $100,000 at
Wainwright; $100,000 in village safe water; $350,000 in land
status and a decrease commensurate with that in the two
projects of aerial magnetic survey southwest Alaska and
airborne geophysical and geological.
Nico Bus advised the Department supported the amendment.
Upon a vote by the committee amendment #13 failed to be
adopted.
Senator Sharp moved amendment #14 and said this amendment
was meant to clarify the source of funds for the item on
page 45 line 11 and 13 of the original budget from 75%
federal funds/25% state funds to 50% from each source.
Kevin Brooks, DF&G was invited to join the committee and
concurred with Senator Sharp saying this related to upgrades
at the Rabbit Creek Rifle Range. They felt this would be a
better mix to use the funds based on 50% federal funds and
50% Fish and Game funds. Without objection amendment #14
was adopted.
Senator Frank moved amendment #15. As explained by co-
chairman Halford this dealt with state STIP and concerns on
the EIS. This was a request to add the project back along
with the intent statement. It had been deleted from the
Governor's request. Without objection amendment #15 was
adopted.
Senator Frank moved amendment #16. As explained by co-
chairman Halford this was at the request of a house member
and it referred to a capital matching grant item which will
not affect the total. Without objection amendment #16 was
adopted. Co-chairman Halford indicated that these two
amendments were to be adopted only if OMB had the requests
otherwise they would be withdrawn.
Senator Donley requested the committee return to amendment
said the project had not begun as yet and as long as AMATS
leaves it in the 1996 program they will start it. They
would prefer the engineering money for the project remain in
the general pre-construction project. Co-chairman Halford
said he would rather not allocate this as long as there is a
commitment from AMATS to go forward. Upon a vote of the
committee amendment #3 failed to be adopted.
Nancy Slagle advised the committee that it would be
necessary to await the arrival of Annalee McConnell,
Director OMB and therefore co-chairman Halford recessed the
committee at 12:30 p.m. until 1:00 p.m.
(tape SFC-96, #103, sides 1 and 2)
Co-chairman Halford called the committee back into session
at 2:50 p.m. He noted all members were present.
Annalee McConnell was invited to join the committee. She
commented on the selection of the projects as being those
with high priority and were generally on the capital budget.
She pointed out AHFC (energy rated homes) on page 4 and
Department of Corrections (Fort Rich Brig and Harborview) on
page 5. She explained that Fort Rich was a project that
U.S. Senator Ted Stevens was working that would allow a 3 -
1 match with federal dollars. This is the only way the
State could acquire 45 beds within six months. She also
called attention to the Administration's concern to have the
prison bonds on the ballot in November. This was not only
because of the Cleary case but rather the state is unable to
house the criminals. There is no point in passing stronger
laws if it cannot be seen through the system. Harborview is
not only important to Corrections to have beds for alcohol
treatment program offenders but also it would be an
important economic development feature for the community of
Valdez.
Co-chairman Halford indicated that the problem was the cost
per bed at Harborview would be $175/day/person on the low
side or $204/day/person on the high side. This would be out
of range in terms of any kind of a per person cost. Fort
Richardson would be higher than anything south of Fairbanks
with the exception of Ketchikan. Ms. McConnell appreciated
the concern but felt that in weighing the additional
factors, the additional beds were needed, and this would
make sense until additional facilities could be built. If
the prison bond was put on the ballot it would deal in a
more complete way with the overall problem of needing
facilities statewide for both adults and juveniles. She
referred to the Denali Development Project, page 15, and
said there was concern over building new facilities when the
current ones are not maintained. This particular facility
for the State's most heavily visited attraction were
woefully inadequate for tourists. There has been
significant co-operative effort on the part of the State,
the federal government and the private sector. Page 18
referred to the Americans with Disabilities Act and the
reason for reducing the recommended $1.5 million for ADA
compliance by $250,000 was because of the belief there was
$250,000 remaining unencumbered. There was $168,000
remaining unencumbered because of lawsuits or threat of
lawsuits on particular facilities. She noted calls received
from advocacy groups that were concerned about the State's
slow compliance with ADA and their thoughts on pursuing
legal action against the State to speed this up. Other
items included technology bonds wherein $6 million worth of
projects had been proposed, the debt service for which would
be $1.4 million this year. These projects are considered to
be extremely important and encouraged the committee to treat
them just as if they were other general funded projects in
terms of priority. The single largest project related to
the criminal justice system. This was a Public Safety
issue that was only partially funded last year and it is
necessary to go through with the next phase. She said there
was a big problem with the computer systems, especially in
the criminal justice system. The reason revenue bond
financing had been proposed was because presently the State
does do lease/purchases of various kinds of equipment and it
is believed that it would be more cost effective to do that
not at private financing rates but rather at the State's
rate. Many projects on the list are necessary to meet
federal requirements and various deadlines the departments
are under for some emergency communications issues.
Election office equipment is obviously needed in time for
the August elections. There are departments that have not
been able to fund replacement of computers, including the
WANG system at the Department of Labor, but also breakdown
of computers individuals use every day. She stressed these
items could not be left out of consideration in the overall
budget.
She continued on page 19, DHSS, and the amendment to return
the Johnson Youth Center to the capital budget was defeated
and said this has been an extremely high priority matter for
years. It is now a critical need within the juvenile
justice system. It could be under construction quite
quickly and would meet a need not just in the Juneau area
but would also meet needs in all of southeast Alaska. It
would also prevent children from being sent to Anchorage,
Fairbanks or other facilities around the state, which
obviously defeats the purpose of maintaining the effort of
family communications. She strongly encouraged re-
instatement of the project. Page 23 referred to the match
for federal funds for the Juneau Armory in the Department of
Military and Veterans Affairs. This would bring in millions
of dollars upon completion. Page 24 refers to the
Department of Natural Resources land status geographic
information system and has been the department's highest
priority. Two years were left to complete the project. If
it is taken out of the capital budget the project will not
be completed. She said there would be an amendment coming
in regarding aircraft under the Department of Public Safety.
At this point she indicated they would come back to the
Department of Revenue as last minute information was being
compiled on the child support items. She referred to page
27 and said the general fund match was reduced by $150,000
leaving $20,000 which would not be sufficient to get the
federal funds necessary for the project.
Fred Fisher, fiscal analyst said the recommendation was
based on the fact there was some documentation from LB&A
committee meeting which indicated that the Department of
Revenue had a general fund match balance of about $319,000.
Upon a review it appeared that balance was still available
to the Department for matching these projects. Ms.
McConnell said they would check the matter with the
Department. She continued on to page 28 and said there were
a few projects within the AHFC area of particular concern
and that had been reduced in the draft budget. One was
regarding the low income weatherization program and recent
information indicated they may not get the federal money in
the amount of $1.8 million so they would like to use
corporate receipts for that due to the level being proposed
would not be sufficient for the program. Page 29 referred
to the senior citizen's housing program and the amount
remaining after reduction being $750,000 would not complete
any of the projects on the list. The projects are done by
private developers and she said she would supply a list of
figures so the committee would know what amount would fund
projects. The Homeless Assistance Program needs increase
from the $250,000 that was allowed.
John Bitney, AHFC was invited to join the committee. He
said this was basically a new item and AHFC combined some
funds from the federal competitive grants. This program was
listed on page 29 of the side-by-side sheet. The corporate
funding amount was $1 million. Some funds were transferred
as part of the request for 1997 from that program into the
Homeless Assistance Program. The reason was that not only
was the federal government lowering their participation for
these kinds of programs they have also reformulated the
program to where it is now more driven by population. The
State of Alaska is not only losing federal funding for these
programs but also they are losing under federal
reformulation. In response to co-chairman Halford he said
the total amount between the emergency housing assistance
grants last year was $250,000. The amount authorized for
the federal competitive grants was $2.1 million for a
combined total of $1.350 million. The corporate request for
homeless assistance was $1.2 million and for federal
competitive was $1 million. The total corporate funds
requested was $2.2 for 1997.
Ms. McConnell referred to the next item on page 32. The
Soldotna Maintenance Station would be a replacement of the
current facility which jeopardizes the water quality on the
Kenai River. Restoration of the quality of the Kenai River
is a high priority. It would not require additional O&M
costs for the State once it was built. The current site
would need to be cleaned up because of the oil leakage. The
City of Kenai donated the land for the facility and there
would be no land cost to the State. She further referred
to federal highway and federal aviation projects and said it
was important to maximize federal dollars that the State
would be eligible for because when the formula changed less
money will come in from the federal government.
Fred Fisher commented on reducing ineligible costs and
utilize the savings on highway maintenance. Ms. McConnell
said they should continue to work toward the most effective
use of the dollars as possible. She referred to changes
made in the budget that had been suggested last year
regarding management control. They would work with DOT in
order to not jeopardize federal dollars. Referring to page
33 and the Corps of Engineer match she said it was
recommended that rather than appropriating specific amounts
for each of the projects it be done by allocation. She
noted the Bethel sea wall project had been omitted and felt
that it was a serious concern and should be re-instated
under allocation. Co-chairman Halford said the problem was
that it came in after the sixty-day deadline.
Mr. Brigham commented on page 34 and asked the committee's
reconsideration of the Anchorage ride-sharing project saying
it was 100% federally funded and no state match is required.
This was also being used by commuters to and from the Mat-Su
valley. This project was significantly less expensive than
providing buses or other public transportation as the costs
are borne by the users.
Bob Baratko, Department of Revenue was invited to join the
committee. He said the original project was a computer
system upgrade within the child support division for a total
cost of $2,680,900. In October 1995 they had requested
through LBA $859,600. That increased the total
authorization to just over $3.5 million and that is what was
reflected in the access system. To date they have collected
$352,000 in State funds and just under $2 million of federal
funds which leaves them still to collect $404,000 and
$785,000 from the federal funding source. Originally, when
the system was funded it was a 66/34% match. The federal
agency changed that to a 90/10% match. The state funds are
needed to collect the remaining federal funds.
Co-chairman Halford asked if they had responded to the
Budget & Audit request for a plan on the $319,000? Mr.
Baratko said the letter he just had seen only indicated that
child support had to appear before LBA to receive authority
to expend that money. There was nothing that requested a
long-term plan or in-the-future plan.
Mike Greany, Director, Division of Legislative was invited
to join the committee. He referred to Buget and Audit of
last fall a certain amount of general funds was appropriated
to match available federal funds for a project of a certain
scope at that time. The idea was for the department to
advise Budget and Audit committee of a plan as to how that
would proceed. Obviously what was being heard now was that
the project continues to balloon and there was some
misunderstanding at this point of how much of the initial
over-match money is to be used versus new money to continue
on some other phase of the project. Mr. Baratko concurred
in that the system was being enhanced beyond the original
request, however, Glenda Straub had testified previously
that the federal requirements do keep changing on that
system. The costs to implement the enhancements also rose.
Glenda Straub, Child Support Enforcement Division was
invited to join the committee. She said the deadline for
matching funds was October 1. Mr. Baratko said he did not
believe the funding could be stopped without impact to the
system development and implementation. The contractors were
working and the staff of child support was working and had
done a great deal on their own concerning data processing
conversions. It should be a project that continued as it
began. He concurred with co-chairman Halford that the final
approval had to be from LBA. Ms. McConnell suggested that
the Department of Revenue and Legislative Finance should get
together and sort this matter out and then return and advise
the committee. Co-chairman Halford concurred.
She further noted that there was some misunderstanding on
the federal match for DOT on page 33. She referred to a
memo to Mr. Brigham from Commissioner Perkins. Mr. Brigham
said in concurrence with Ms. McConnell that it had appeared
the federal match this year had been greater than last year
but it had not been taken into account that last year
reappropriation funds had been used in order to flush out
the state match for federal dollars. Ms. McConnell said
they were not proposing a higher budget than last year. She
said she would address the amendment on the projects on the
revenue bond list after testimony from the Department of
Law. Senator Donley said he would like to hear from the
Criminal Justice System on the computer system used for
record keeping.
Laurie Otto, Criminal Division, Department of Law was
invited to join the committee. She said every police
officer in the State was dependent on computerized
fingerprint records. Those working with children are also
dependent. Every state prosecutor is dependent on
computerized criminal history records to ask for bail,
sentencing and to be able to track cases. Every state
correctional officer is dependent on the system to be able
to track who is in custody, when they get out and when
victims get notified. The system is obsolete dating back to
the 1980's and are not being supported by vendors. The
legislature had been aware of this problem and appropriated
small amounts of money to do business process re-engineering
studies to figure out what was needed to replace the
systems. That was all completed and now they were at the
next stage of the process. She explained how the $3 million
in the budget for the criminal information system would be
used. The Department could no longer operate effectively
with the obsolete system it was using. Senator Donley said
that good progress had been made over the last few years in
anti-crime legislation and it all keys into the data being
available within the system to enforce the laws. Co-
chairman Halford said the problem was because this was a
$1.4 million section that represented a $6 million plus
increase in the capital budget. Ms. McConnell said the
requests were within the capital budget and these were
brought forward because they did not want to circumvent the
legislative process in terms of acknowledging the projects.
They felt they could get a more effective deal for the State
rather than through the private sector. Co-chairman Halford
commented on the $1.4 million appropriation in the capital
budget represented an expenditure of $6 million and it would
be all state funds that eventually end up there. She said
they understood there was a cost to financing.
Unfortunately computer projects along with deferred
maintenance tend to fall off the list and not get funded
adequately because they are not as visible to the public.
In order to eventually reduce personnel it will be essential
to have the computer system in place. She said especially
in areas of the criminal justice system it would be
unacceptable to not go forward on these projects and these
had been capital budget items in the past.
Senator Donley asked about the implementation period of time
and what problems were being faced in the short period of
time. Ms. Otto said it would take approximately two years
to replace the system that will die in 1999. She noted laws
such as felony DWI which are dependent on accurate criminal
history records, fingerprinting laws and victim's rights
constitutional amendment and said this system could not
effectively function with the system as is. She referred to
a study funded by the legislature three years ago and said
they were aware of all this and noted the frustration of
knowing the repercussions for the criminal justice system if
they do not catch up this year. If the computer system does
not work the ability to identify criminals will go away.
Co-chairman Halford suggested the Administration come up
with a non general fund sources for an amendment to fix this
problem which would be acceptable and the committee would
entertain.
Ms. McConnell said they were trying to stretch the dollars
and projects on the list had been pared down. She
encouraged the consideration of revenue bonds. Senator
Rieger said the transportation committee did discuss $1.4
million appropriation.
Co-chairman Halford said if there were no further questions
the committee would return to discussion on the amendments.
Senator Zharoff moved amendment #17 regarding village safe
water as sponsored by the Department of Environmental
Conservation. It would restore the funding for the solid
waste project in Beaver. Co-chairman Halford said this was
one of two projects that was funded through RUBA and
therefore would not support it. Upon a vote of the
committee amendment #17 failed to be adopted.
Senator Zharoff moved amendment #18 regarding the conversion
of Harborview to a correctional facility. This project
would be beneficial to the community of Valdez and the
State. Although the costs for incarceration were high on a
daily basis he noted there was a general fund contribution
of $250,000.
Bob Cole, Department of Corrections was invited to join the
committee. He explained the uniqueness of the program. He
said they believed good alcohol treatment should be provided
for the middle tier of offenders. They have the best
potential for reducing recidivism and for reducing the
length of sentence while in custody. Therefore the average
cost today took on a different perspective because if the
length of time of incarceration is reduced there is a major
cost savings and if they are able to intervene effectively
so that individuals do not re-offend that was an even
greater savings. He felt this program was much more cost
effective than the one for substance abuse or mental health
which ran approximately $500/day and was covered by
insurance companies. Senator Donley said he believed the
correctional system was in need of help and supported the
amendment. He felt this was of a higher priority than some
other items in the budget. Mr. Cole said another attraction
of this was that it would make use of an existing state
facility as opposed to building a new facility at
approximately $150,000/bed. The City of Valdez supported
this project. Upon a vote of the committee amendment #18
failed to be adopted.
Senator Zharoff moved amendment #19 regarding Department of
Corrections deferred maintenance. Mr. Cole said that
deferred maintenance was a major concern and said these were
not office buildings but rather buildings jammed with
individuals being held against their will and were open
seven days a week, twenty-four hours a day. He said $24
million worth of unfunded liability for deferred maintenance
on 83 buildings. This amount would only increase and said
$1.5 million in this amendment was a very modest but good
investment. Co-chairman Halford commented and said he knew
when in dealing with deferred maintenance there was never
enough. Mr. Cole commented on the number of prisoners
booked and held, how many transactions were complied with
and that individuals had served over one million man hours.
Upon a vote of the committee amendment $19 failed to be
adopted.
Senator Zharoff moved amendment #20 regarding the Fort
Richardson renewal and replacement to be used as a 40-bed
state correctional center. Mr. Cole said there was a
cheaper version of the operating cost for this facility in
the amount $470,000. U.S. Senator Ted Stevens supported the
change in this facility along with the post commander at
Fort Richardson. Senator Donley said he supported this
amendment especially since it was being contributed to by
the federal government. Upon a vote of the committee
amendment #20 failed to be adopted.
Senator Zharoff withdrew amendment #21 in deference to
amendment #23.
Senator Sharp moved amendment #22 regarding tribal entities.
Ms. Slagle explained the amendment. She said these were
requests received by legislative offices from communities
after submittal of the capital budget and these would be
included in the back section for the specific projects
unless they were already submitted in the budget. Co-
chairman Halford said the requests would reflect the up-
dated version of what the community wanted. Senator Zharoff
said he had concerns with the deletions. This would say the
entities do not exist. Co-chairman Halford said that this
would say they would not be recognized by the state.
Senator Zharoff said he would continue his objection to the
deletions but not specifically the amendment. Upon a vote
of the committee amendment #22 was adopted.
Co-chairman Halford said he drafted amendment #23 to try and
deal with the questions in Public Safety. He said the
original request was for $750,000 for Fish and Wildlife
Protection aircraft and vessel repair and maintenance.
There was also a proposal for the sale of two Grumman
aircraft and for purchase of another aircraft. The language
in the bill had rolled those two together. He also noted
the addition to the front section being the sale of the two
aircraft.
Ken Bischoff, Department of Public Safety said the amendment
met their concerns.
Senator Sharp moved amendment #23 and without objection it
was adopted.
(tape changed to SFC-96, #104, sides 1 and 2)
Co-chairman Halford introduced amendment #24 regarding
language change in Kerr vs. State. Senator Rieger moved
amendment #24 and without objection it was adopted.
Senator Zharoff moved amendment #25 regarding communities
not included in other amendments for capital matching
grants. If funds are not utilized the first year it will
accumulate to the next year wherein interest is also
included. Ms. Slagle advised that four communities should
be deleted. Senator Zharoff moved to delete the communities
of Circle, Gakona, Lake Minchumina and Northway and without
objection this conceptual amendment was adopted. Upon a
vote by the committee amendment #25 was adopted without
objection. Co-chairman Halford said the four communities
would need a new amendment and Senator Zharoff said he would
submit such.
Senator Zharoff moved amendment #26. Ms. Slagle said this
particular amendment dealt with municipal capital projects
and those not submitted yet. Senator Zharoff moved to
include Angoon at $25,000 and change the total to $275,000
and without objection the conceptual amendment was adopted.
Ms. Slagle said the administration supported the amendment
and there would be no general fund change. Upon a vote by
the committee amendment #26 was adopted without objection.
Senator Zharoff moved amendment #27 regarding Stebbins
Facility Upgrade. Ms. Slagle said this was the original
appropriation plus interest. She said the communities have
the ability to build up money to use on a larger project
they need in the future. There would be no general fund
change. Upon a vote by the committee amendment #27 was
adopted without objection.
Senator Zharoff moved amendment #28 allocating AHFC funds to
Wainwright and Beaver. Co-chairman Halford said this was
the same money recommended to be transferred into RUBA and
was for the benefit of the same constituencies. Upon a vote
by the committee amendment #28 failed.
Senator Zharoff moved amendment #29 regarding the landfill
site for the City of Akhiok. Ms. Slagle confirmed the
correct amount and there would be no general fund change.
Upon a vote by the committee amendment #29 was adopted.
Senator Zharoff moved amendment #30 regarding registry of
child support. Mr. Bob Baratko was invited to join the
committee. He said the child support division was
requesting capital funding for the federal case registry of
child support orders. This system was also included in the
welfare reform bill approved at the federal level. This
allowed registry of all child support orders established in
any state.
Mike Greany was invited to join the committee. He said the
original project was still the highest priority. This
project would be second priority. Senator Zharoff
questioned federal receipts in the amount of $330,000 and
asked if this were available on a state fund match. Mr.
Baratko concurred but indicated that the general fund match
had been reduced to $20,000 and would not allow for
capturing the available $330,000 federal funds. Upon a
vote by the committee amendment #30 failed to be adopted.
Senator Zharoff moved amendment #31 regarding unincorporated
community grants. Ms. Slagle confirmed the stated amounts.
Upon a vote by the committee amendment #31 was adopted.
Senator Zharoff moved amendment #32 regarding Paxon and
without objection it was adopted.
Senator Zharoff withdrew amendment #33.
Senator Zharoff moved amendment #34 regarding lease payments
for the initial term of technology equipment lease for state
agencies. Co-chairman Halford said he opposed using revenue
bonds. Upon a vote by the committee amendment #34 failed.
Senator Sharp moved amendment #35 regarding a fire truck
purchase for Hyder and without objection it was adopted.
Senator Donley moved amendment #36 regarding funding for
hatchery operations and without objection it was adopted.
Senator Zharoff moved amendment #37 regarding the four
unincorporated communities of Circle, Gakona, Lake
Minchumina and Northway. Ms. Slagle said the money was
available to the communities, had been appropriated but not
claimed. She said there would be no net increase in the
amendment. Without objection it was adopted.
Senator Frank moved amendment #38. He said section 14 of
the amendment was a sweep provision. Section 15 covered
unrestricted state revenue. Section 16 would keep
supplementals to a minimum. Upon a vote by the committee
amendment #38 was adopted without objection.
Senator Frank moved amendment #39. Senator Rieger objected
to the amendment and asked for an explanation of
enhancements and the iced tea program. Senator Donley asked
what percentage was to be spent on enhancements.
Tom Brigham, DOT was invited to join the committee. He
explained the enhancements in Alaska had been such as
roadside pulloffs, historical interpretation, natural
history for residents and tourists as they drive down the
road. This also included trail work, water runoff and
historical restoration. Senator Phillips wanted to know the
bulk of monies spent on enhancements. Mr. Brigham said
there were two major projects the department was proposing
to spend money on, one being the roadside improvements; the
other being trails, sidewalks and landscaping. He said
approximately 50% would be expended on trails, 40% on
roadside improvements and the rest would go for a variety of
things including historical renovation projects. Co-
chairman Halford asked if this amendment would stop the
department from doing anything that was in the 1997 list of
projects and Mr. Brigham said that there was enough to cover
1996 and another $20 million had been estimated for 1997.
He noted that required projects was in the amount of $11
million/year. 1998 would bring new federal legislation and
therefore they did not know what would happen to
enhancements and other projects. Further discussion between
co-chairman Halford and Mr. Brigham ensued regarding the
iced tea program.
Senator Frank advised that he wished to moved a revised
version of amendment #39. He said that the numbers
regarding page 19, line were corrected to reflect the
correct amounts. He said the legislature wanted to meet the
community needs and that road maintenance and major
reconstruction was needed. Senator Zharoff said some places
had no adequate roads and wanted to know what happened to
that money. Mr. Brigham said the federal government did
allow for some flexibility and there is some time to
obligate monies. That is what the department was trying to
do because they do not know if enhancements will survive
pending new legislation in 1998. However, if the money now
is not obligated it must be returned to the federal
government. He noted that Alaska had always been able to
obligate the federal monies. Upon a vote by the committee
revised amendment #39 failed to be adopted.
(Co-chairman Halford took a brief at ease from 8:30 p.m.
until 8:55 p.m.)
Senator Frank moved to rescind the failure of amendment #39
and without objection it was rescinded. Senator Frank then
moved to amend revised amendment #39. He said under the
insertion on page 24, lines 10 and 11 after the word
"department" should be deleted and instead inserted "submit
specific projects sufficient to meet the minimum federal
funding required". Upon a vote by the committee it was
adopted without objection. Senator Frank moved the revised
amendment #39 and with the objection of Senators Donley and
Zharoff and abstention of Senator Phillips being duly noted
the amendment was adopted.
Senator Rieger moved amendment #40. Senator Robin Taylor
was invited to join the committee. He referred to the
Petersburg Cabin Creek Watershed Project and the insertion
of the word "consensus". Since this word may have been
misinterpreted this amendment was suggested instead. It was
felt that Petersburg could hold an election to decide the
road and pipeline route so the issue could be resolved
within the community. After further discussion between
Senators Taylor and Rieger it was decided that the word
"consensus" as adopted in amendment #5 would be fine.
Senator Rieger withdrew amendment #40.
Senator Frank moved 2nd CSSB 136(FIN).
(tape changed to SFC-96, #105, Side 1)
Senator Zharoff his objected to 2nd CSSB 136(FIN) and said
although he appreciated all the hard work of OMB and the
departments he felt the area of major concern, particularly
in the reduction of the overall capital budget was not going
to meet the goals of this administration and the areas that
were identified around the state, particularly school
construction, water and sewer projects, roads and some of
the problems faced in rural Alaska.
Senator Donley said his concern was that this was a major
component of what was worked for this year and wished it
could have been better discussed what was included in the
$100 million and the priorities among that money. It was
rather difficult to have a reasonable discussion all in one
day. He felt some things were left out that were of a
higher priority than those that were in. Co-chairman
Halford said there still was time before the process was
complete. At this time Senator Frank withdrew his motion on
2nd CSSB 136(FIN).
Co-chairman Halford introduced amendment #41 and said Mr.
Simmons from AIDEA was available to testify on behalf of
this amendment.
Randy Simmons, Board of Directors, AIDEA was invited to join
the committee. He said this amendment would clarify the
section and not change it. The Board of Directors of AIDEA
would approve the purchase at fair market value of a loan
portfolio from DCRA and transfer to AIDEA. Senator Frank
moved the adoption of amendment #41.
Senator Donley said he was concerned of the capacity of
AIDEA to handle the amount of programs being pushed off on
them. Mr. Simmons said AIDEA was comfortable with the
purchase of the portfolio. However, the part of the
portfolio that AIDEA was not agreeable to would not be
purchased by them. Upon a vote by the committee amendment
Senator Frank moved 2nd CSSB 136(FIN) and with the objection
of Senators Zharoff and Donley and abstention of Senator
Phillips being duly noted the bill was passed out with
individual recommendations.
Senator Sharp further requested the chair to provide a to
each Senator a breakdown by election district of where all
the funds would be going.
ADJOURNMENT
Co-chairman Halford took an at ease at approximately 10:35
P.M.
| Document Name | Date/Time | Subjects |
|---|