Legislature(1997 - 1998)
04/21/1998 09:25 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 21 April 1998 9:25 a.m. TAPES SFC-98, #133, Sides A and B CALL TO ORDER Senator Bert Sharp, Co-chair, convened the meeting at approximately 9:25 a.m. PRESENT In addition to Co-chairman Sharp, Senators Pearce, Phillips, Donley, Torgerson, Parnell and Adams were present when the meeting was convened. Also Attending: Senator JERRY MACKIE; Senator LYDA GREEN; Senator JERRY WARD; Representative NORM ROKEBERG; CAROL CARROLL, Director, Division of Administrative Services, Department of Military and Veterans Affairs; NICO BUS, Budget Coordinator, Department of Natural Resources and Department of Military and Veterans Affairs; KAREN REHFELD, Director, Education Support Services, Department of Education; MIKE GREANY, Director, Division of Legislative Finance; DAVE TONKOVICH, JIM HAUCK, GRETCHEN MANNIX, Fiscal Analysts, Division of Legislative Finance; and aides to committee members and other members of the Legislature. SUMMARY INFORMATION Co-chair Sharp convened the committee meeting. He said the committee would first take up SB 281. SENATE BILL NO. 281 "An Act relating to general grant land entitlements for the City and Borough of Yakutat; and providing for an effective date." CS FOR SENATE BILL NO. 281(RES) "An Act relating to general grant land entitlements for the City and Borough of Yakutat; and providing for an effective date." Senator Jerry Mackie was invited to join the committee. He briefly read his sponsor statement into the record. He said this legislation was introduced to complete the formation of the Yakutat Borough. He said it would correct the defects in the borough formation process that resulted in such a small land entitlement for the City and Borough of Yakutat by increasing its entitlement to 21,500 acres. The Resources Committee version of the bill would reduce the original entitlement to 8,552 acres. The bill would also extend the authority of the Division of Lands, Department of Natural Resources to condition and restrict any of the municipality selections made under this increased grant. He said they believed they qualified for about 33,000 acres. Through negotiations in the Community and Regional Affairs committee it was reduced to 21,000 acres. Everyone, including Mental Health, Department of Natural Resources, Department of Fish and Game, Department of Environmental Conservation, Chugach, and the University of Alaska. He said he would appreciate it if the committee would move the bill along as it is. Senator Torgerson MOVED CSSB 281(RES). WITHOUT OBJECTION it was REPORTED OUT with individual recommendations and accompanying fiscal note from the Department of Natural Resources, Land Development in the amount of $6.0. Co-chair Sharp handed the gavel to Co-chair Pearce to continue the budget portion of the meeting. Co-chair Pearce called SB229. SENATE BILL NO. 229 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17c, Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." Senator Parnell briefly explained the Department of Natural Resources subcommittee closeout. He said there were three changes to the proposed Governor's amended budget. The Oil and Gas Division had $187,000 in savings due to extra money the department spent on projects that were not funded by the Legislature last year. In the Fire Suppression budget they deleted $152.3 in airplanes that are no longer in inventory and also savings in office consolidation. Lastly, the subcommittee added $118,400 to the Agriculture Division. He MOVED the Department of Natural Resources subcommittee report and WITHOUT OBJECTION it was ADOPTED. Senator Adams noted that he did not have any objection at this time but would present amendments on Friday. Senator Torgerson explained the Department of Commerce and Economic Development subcommittee closeout. (pause) He said the subcommittee considered mostly the regulatory side of the Department of Commerce. He said an increment in the amount of $15,000 for contractual services was denied in the Division of Banking and Securities. In the Division of Insurance they denied an increment of $15,000. The Division of Occupational Licensing had a carry forward of $159.1 and they did not let the division use that amount as a carry forward this year. In the Commissioner's Office they denied an $80,000 increment, which was RSA'd from all other components for support for the Commissioner's Office. For the fourth year in a row they denied the special assistant to the Commissioner in the amount of $52.2. They also denied another increment in the amount of $79.6 for Management Support. Under AIDA there was also an increment denial with a total reduction of $431.9. Senator Torgerson MOVED the Department of Commerce subcommittee report. Senator Adams OBJECTED. He said the Department of Commerce and Economic Development should be kept intact for the future of Alaska. He noted that the department was $1.7 million under their budget and brought in a revenue of $6 million. He asked if they would allow the agency, if reappropriation monies were found, to at least submit their requests to help take care of some of the smaller problems found in the present budget on a one-time basis. He said he was concerned about rural Alaska especially and noted specifically the denial of the Bristol Bay/Kuskokwim area, Division of Trade and Development and the Tourism and Fisheries Development. At this time Senator Adams WITHDREW his objection. Senator Torgerson explained that particular portion of the budget was not incorporated in his amendment. It was only in the regulatory portion. Therefore, WITHOUT OBJECTION, the Department of Commerce and Economic Development subcommittee report was ADOPTED. Senator Torgerson explained the Department of Environmental Conservation subcommittee closeout. He said there were several small reductions in this department. In the Office of the Commissioner $21,300 was denied as it was classified as an overpayment in the reimbursement of the Deputy Commissioner who is an employee of the Environmental Protection Agency. They accepted a fund source change in the Alaska Drinking Water Fund to Federal receipts in the amount of $489,600. They further denied designated program receipts for Cruise Ship Air Quality Compliance Study. They further requested than in increment in the amount of $100,000 be reduced to $50,000 for Clean Water Standards in order to develop those standards. In the Spill Response it was requested that $54,200 be increased out of the 470 Funds to the Department of Military and Veterans Affairs for local emergency planning committees. He MOVED the Department of Environmental Conservation subcommittee report and WITHOUT OBJECTION it was ADOPTED. Senator Donley took up the Department of Education subcommittee closeout. (pause) He noted several items transferred out of the department this year were; AVTEC, Kotzebue Tec, State Museum, (tape malfunction is noted at this time). Senator Donley said they were requested to make a reduction and they carefully followed the instructions of the Finance committee. They denied all increases and accepted all decrements that appeared in the Governor's proposal. They also met their target reduction of $240,000 GF. This reduction was to the WWAMI program. Students will now have to pay $6000 each. He told the committee that the State of Montana has changed their WWAMI program to a full loan program. Senator Donley MOVED the Department of Education subcommittee report. Senator Adams OBJECTED. He said they needed to evaluate the effect of the cuts on Smart Start, preschool certification, reading initiative, comprehensive assessment programs, the low performance school program and the AKCIS program. His further concern was the loss of WWAMI. He felt the State had enough money to take care of this program. He maintained his objection. Senator Donley explained the WWAMI program and cost for the benefit of those listening on television. He explained that this was an incredibly expensive program, which only approximately ten Alaska students benefit. Forty percent of these students do not return to Alaska. He said they need to find a way to close the gap. After further discussion between Senators Donley and Adams, Senator Adams still felt the program should not be jeopardized. By a roll call vote of 6 yeas (Pearce, Sharp, Donley, Torgerson, Parnell, Phillips) and 1 nay (Adams) the Department of Education subcommittee report was ADOPTED. Senator Donley explained the Department of Public Safety subcommittee closeout. He said there was an ongoing commitment by the Republican majority to Public Safety. He said last year the committee allowed for the increase to State Troopers and also increased the funding for village safety officers. That increase would have provided for an additional seven VPSO's and additional two State Troopers. Unfortunately, the Knowles Administration chose to spend that money in other places and in fact, significantly reduced the number of Troopers. He said this had been very discouraging to members of the subcommittee. Therefore, they tried to address some of these problems in this subcommittee report. He said the Finance Committee allowed the subcommittee to increase the budget by about $200,000. Extra funds could be used for Child Protection Services, prisoner transportation and an increase grant to Victims for Justice. He noted also a problem with VSPO's and said that in some cases they were being used in different duties. Some villages do not even have VSPO's. The subcommittee adopted some specific intent language regarding the VSPO's. He further felt that those put through training at the Trooper Academy should make a commitment to the State, otherwise they should have to pay back their education. Senator Donley MOVED the Department of Public Safety subcommittee report. Senator Adams OBJECTED. He said that the Trooper placement was up to Col. Godfrey and not the Governor. He agreed that there was a problem with the Administration regarding VSPO's. He also said their duties should be outlined and perhaps a look should be taken at the low salaries they receive. Senator Parnell requested a short at ease at approximately 10:20 a.m. Co-chair Sharp reconvened the committee shortly thereafter. It is noted for the record the absence of Senators Pearce and Torgerson. Senator Adams maintained his OBJECTION to the Department of Public Safety subcommittee report. By a roll call vote of 4 yeas (Sharp, Donley, Parnell, Phillips) and 1 nay (Adams) it was ADOPTED. Senator Jerry Ward was invited to join the committee and gave a brief explanation for the Department of Corrections subcommittee report. He said there was an increase over last year in the amount of $7.83 million. He stated this was mostly due to the Cleary decision. (Tape #133, Side A switched to Side B.) Senator Ward continued his explanation. He further noted other causes for the increase in that more prisoners were being sent outside and more prisoners to halfway houses. This was due to an increase in the inmate population. Also, the culturally relevant study that was done last year is now being implemented this year. He hoped this would decrease the number of reoffending prisoners. Senator Torgerson MOVED the Department of Corrections subcommittee report. Senator Adams OBJECTED, noting he may have amendments on Friday. He also said he would have to look at the CRC beds for Bethel because they wanted hard beds. He then REMOVED his OBJECTION. Therefore, WITHOUT OBJECTION the Department of Corrections subcommittee report was ADOPTED. A brief at ease was taken again at 10:16 a.m. Senator Adams explained the Department of Labor subcommittee report briefly. He said the subcommittee was chaired by Senator Pearce along with Senator Green and himself. He said the only basic change was a fund source change of $166,400 general funds match to inter agency receipts due to maintenance of ATAP being under Department of Health and Social Services and therefore no longer needed under Department of Labor. Senator Adams then MOVED the Department of Labor subcommittee report and WITHOUT OBJECTION it was ADOPTED. Senator Parnell explained the Department of Health and Social Services subcommittee report. He said the budget increased by approximately $11.5 million due to formula growth from this current year. The budget proposed funding of twenty-eight new front line social worker positions for DFYS to deal with harm issues and child protection issues. Additional training is also funded for the social workers along with a new community based family assessment case management pilot project to assist DFYS in working with communities. Other funding included increase in foster care, subsidized adoptions and guardianships, infant learning program, DD grants, formula growth in the Medicaid program and increases funding to the emergency medical services. He said the one program that had been eliminated was General Relief Medical. Senator Parnell then MOVED the Department of Health and Social Services subcommittee report. Senator Adams OJBECTED. He said he appreciated the hard work the subcommittee had done on the budget but there were three main areas that needed attention. Those were: General Medical Relief, Smart Start program and social worker positions. He MAINTAINED his OBJECTION. By a roll call vote of 5 yeas, (Pearce, Sharp, Torgerson, Parnell, Phillips) and 1 nay (Adams) (Donley absent) the Department of Health and Social Services subcommittee report was ADOPTED. Senator Phillips said he was going to be meeting with the Department of Administration this afternoon and will have a full subcommittee report by tomorrow afternoon. Senator Torgerson said he had no comment on the Department of Transportation and said he expected to close out with zero recommendation for the Alaska Marine Highway and the Southeast Region. Co-chair Pearce said the committee would close out the parts of Department of Transportation that were complete. Senator Torgerson said Northern and Central Regions were ready. She said that would be done at 4:30 p.m. today. She HELD closeouts on the Governor and Legislature until a later date. Co-chair Sharp said there were three bills scheduled for this afternoon, HB 334, SB 219 and SB 336. He said perhaps SB 336 could be waived from the Senate Finance Committee because it had a zero fiscal note. ADJOURNMENT Co-chair Pearce recessed the committee until 4:30 p.m. SFC-98 -7- 4/21/98
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