Legislature(1997 - 1998)

04/08/1997 09:12 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                          8 April 1997                                         
                            9:12 a.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-97, #85, Side 1 (000 - 590)                                              
               Side 2 (590 - 000)                                              
               Side 2 (589 - 506)                                              
                                                                               
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Drue  Pearce,  Co-chair,  convened  the meeting  at                 
  approximately 9:12 a.m.                                                      
                                                                               
                                                                               
  PRESENT                                                                      
                                                                               
  In addition  to Co-chair  Pearce, Senators Sharp,  Phillips,                 
  Donley, Torgerson, Parnell  and Adams were present  when the                 
  meeting convened.                                                            
                                                                               
  ALSO ATTENDING:   Senators Gary  Wilken and Lyda  Green; Dr.                 
  Jerome Komisar, University  of Alaska; Nico  Bus, Department                 
  of  Natural  Resources;  Richard  Vitale, staff  to  Senator                 
  Parnell;     Margaret  Pugh,  Commissioner,   Department  of                 
  Corrections;      Janet   Clarke,  Director,   Division   of                 
  Administrative  Services,  Health and  Social  Services; Jim                 
  Nordlund,   Director,   Division   of   Public   Assistance,                 
  Department of  Health and  Social Services;   Karen  Perdue,                 
  Commissioner,  Department  of  Health  and Social  Services;                 
  Mike Greany, Director, Division of Legislative Finance; Dave                 
  Tonkovich, Gretchen  Mannix, Jim Hauck, Susan Taylor, Fiscal                 
  Analysts, Division  of  Legislative Finance;  and  aides  to                 
  committee members and other members of the legislature.                      
                                                                               
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
                                                                               
       CS FOR HOUSE BILL NO. 75(FIN) am(brf sup maj pfld)                      
                                                                               
       "An Act  making appropriations  for  the operating  and                 
  loan      program expenses of state  government, for certain                 
  programs,      and   to   capitalize   funds;    making   an                 
  appropriation under art.      IX,  sec. 17(c),  Constitution                 
  of the State of Alaska, from the   constitutional     budget                 
  reserve fund; and providing for an      effective date."                     
                                                                               
                                                                               
       CS FOR HOUSE BILL NO. 76(FIN)                                           
                                                                               
       "An  Act making  appropriations for  the operating  and                 
  capital   expenses of the  state's integrated  comprehensive                 
  mental health  program;  and  providing  for   an  effective                 
  date."                                                                       
                                                                               
                                                                               
  Co-chair  Pearce   convened   the   session   and   reviewed                 
  subcommittee  report  summaries.   She  further  noted  that                 
  Saturday the committee would review amendments.                              
                                                                               
  University of  Alaska was reviewed  by Senator Adams  and he                 
  noted  in  particular  items  of  intent  discussed  in  the                 
  subcommittee.   They were:   1.  implement  budget reduction                 
  (passed unanimous); 2.   freeze  or lower tuition  (failed);                 
  and 3.  review expenditures  for state appropriated research                 
  (passed  unanimous).    He  then  moved to  incorporate  the                 
  University budget into  HB 75 and HB  76.  There  followed a                 
  short discussion with Senator Lyda  Green regarding her memo                 
  to SFC members on ASTF and  that they need to work with  the                 
  University regarding this  matter.   Dr. Jerome Komisar  was                 
  also invited to join the committee  and he felt the research                 
  station and  protection of  the agricultural  program was  a                 
  priority.  He said the role  of education was very important                 
  in this state and it was our  duty to educate our own people                 
  rather than offering the best jobs to those out of state.                    
                                                                               
  Co-chair Pearce hearing no  objection adopted the University                 
  budget summary into HB 75 and HB 76.                                         
                                                                               
  Alaska Court Systems  was reviewed by  Senator Parnell.   He                 
  moved to incorporate the Court budget into HB 75  and HB 76.                 
  Co-chair  Pearce hearing  no  objection  adopted  the  Court                 
  budget summary into HB 75 and HB 76.                                         
                                                                               
  Department  of Natural  Resources  budget was  introduced by                 
  Senator Parnell.  He said the  three most difficult areas to                 
  reduce were mining, geology  and water.  During the  interim                 
  they will  work on  a long-term  plan for  agriculture.   He                 
  moved for incorporation  of the DNR budget into HB 75 and HB
  76.   Mr.  Nico Bus  was invited  to join  the committee  to                 
  answer  questions  by Senators  Adams  and Sharp.   Co-chair                 
  Pearce  hearing  no  objection  adopted  the  Department  of                 
  Natural Resources budget summary into HB 75 and HB 76.                       
                                                                               
  Department of Corrections  budget summary was introduced  by                 
  Senator Jerry Ward.   He said  four new BRU's were  created:                 
  1.  existing community residential centers;  2.  use of soft                 
  beds;  3.   new community residential centers;  and  4.  Pt.                 
  MacKenzie prison  farm.  The  department was advised  how to                 
  make cuts, but  he noted that they  would have to  have some                 
                                                                               
                                                                               
  flexibility.  Senator Donley requested  a more specific list                 
  involving the cuts.   Senator Sharp moved  the Department of                 
  Corrections budget summary be incorporated into HB 75 and HB
  76.   There followed  a brief  discussion with  Commissioner                 
  Margaret  Pugh  and  Director  Bob  Cole.   Co-chair  Pearce                 
  hearing no objection  adopted the Department  of Corrections                 
  budget summary into HB 75 and HB 76.                                         
                                                                               
  Department of Health and Social  Services budget summary was                 
  introduced  by  Senator  Parnell.   He  explained  the three                 
  priorities:   1.  access  to basic  health for the  poor and                 
  elderly (medicaid);    2.   better protection  and care  for                 
  children;  and 3.  increase funding for criminal justice for                 
  juveniles.  Senator Phillips then  explained welfare reform.                 
  He noted recommendations on funding three budget components:                 
  1.  ATAP  benefits reduced  $3.7 million;   2.  Alaska  Work                 
  Programs reduced $1  million; and 3.   child care.   Senator                 
  Adams noted the  problems with the  overall HSS budget.   He                 
  said the  decrease in  Alaska work  programs and child  care                 
  would cause hardships  in rural  Alaska.  Public  assistance                 
  reduction, general  relief assistance and  48-hour maternity                 
  care were also cause for concern.  Senator Sharp asked about                 
  federal regulations and mandates  and if they were in  place                 
  now.   Commissioner Karen  Perdue said  they should  know on                 
  those by 15  April.  Director  Janet Clark and Jim  Nordlund                 
  were  also  invited  to  join  the  committee  and  answered                 
  questions from the  committee.   Another concern of  Senator                 
  Adams was to keep the Juneau  lab functional until a new lab                 
  could be completed.  Commissioner  Perdue said there were no                 
  present plans but that  it would be very difficult  to close                 
  the Juneau lab.   Senator Phillips  referred to a letter  of                 
  intent which would allow the department to come back and ask                 
  for extra funding.   Since  this was all  new and  uncharted                 
  territory he  wanted the  department to  have the  necessary                 
  tools to do  their job.   Senator Parnell moved the  Welfare                 
  Reform and Health  and Social  Services budget summary  with                 
  all intent language  be incorporated into  HB 75 and HB  76.                 
  Co-chair Pearce hearing no  objection adopted Welfare Reform                 
  and  Health  and  Social Services  budget  summary  with all                 
  intent language into HB 75 and HB 76.                                        
                                                                               
  Formal minutes of the meeting were not prepared as pertinent                 
  financial information is  available in Conference  Committee                 
  Reports on  the FY  98 operating  budget.   The meeting  was                 
  recorded and handwitten log notes were taken.  A copy of the                 
  tapes and log notes may be obtained by contacting either the                 
  Division of  Legislative Finance,  P.O. Box  113200, Juneau,                 
  Alaska 99811-3200 (Phone: 907/465-3795) or the office of the                 
  Senate Finance Committee Secretary (Phone: 907/465-2618).                    
                                                                               
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  Co-chair  Pearce  reviewed  the evening  schedule  and  then                 
                                                                               
                                                                               
  adjourned the committee until 6:00 p.m.                                      
                                                                               
                                                                               

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