Legislature(1999 - 2000)
04/14/1999 09:13 AM Senate FIN
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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 14, 1999
9:13 AM
TAPES
SFC-99 # 90, Side A and Side B
CALL TO ORDER
Co-Chair Sean Parnell convened the meeting at approximately
9:13 AM.
PRESENT
Senator John Torgerson, Senator Sean Parnell, Senator Randy
Phillips, Senator Dave Donley, Senator Loren Leman, Senator
Gary Wilken, Senator Al Adams, Senator Pete Kelly and
Senator Lyda Green.
Also Attending:
MICHAEL NIZICH, Administrative Director, Division of
Administrative Services, Office of the Governor; DAN
SPENCER, Chief Budget Analyst, Office of Management and
Budget, Office of the Governor; SHARON BARTON, Director,
Division of Administrative Services, Department of
Administration; JUANITA HENSLEY, Administrator, Division of
Motor Vehicles, Department of Administration; DWAYNE
PEEPLES, Director, Division of Administrative Services,
Department of Corrections; KAREN REHFELD, Director,
Education Support Services, Department of Education;
BARBARA FRANK, Director, Division of Administrative
Services, Department of Environmental Conservation; KEVIN
BROOKS, Director, Division of Administrative Services,
Department of Fish and Game; JANET CLARKE, Director,
Division of Administrative Services, Department of Health
and Social Services; REMOND HENDERSON, Director, Division
of Administrative Services, Department of Labor; KATHRYN
DAUGHHETEE, Director, Administrative Services Division,
Department of Law; NICO BUS, Administrative Services
Manager, Division of Support Services, Department of
Military and Veteran's Affairs and Department of Natural
Resources; KEN BISCHOFF, Director, Division of
Administrative Services, Department of Public Safety; JEFF
JESSEE, Executive Director, Alaska Mental Health Trust
Authority, Department of Revenue; NANCY SLAGLE, Director,
Division of Administrative Services, Department of
Transportation and Public Utilities; CHRIS CHRISTENSEN,
Staff Council, Alaska Court System; GINGER BLAISDELL,
Fiscal Analyst, Division of Legislative Finance.
SUMMARY INFORMATION
SB 30-OPERATING BUDGET APPROPRIATIONS
SB 31-MENTAL HEALTH APPROPRIATIONS
HB 50-OPERATING BUDGET APPROPRIATIONS
HB 51-MENTAL HEALTH APPROPRIATIONS
The full committee heard subcommittee closeout reports.
SENATE BILL NO. 30
"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. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
SENATE BILL NO. 31
"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."
CS FOR HOUSE BILL NO. 50(FIN)(brf sup maj fld)
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; and providing for
an effective date."
CS FOR HOUSE BILL NO. 51(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."
Operating Budget Subcommittee Closeouts
Co-Chair Sean Parnell gave an overview of what the
committee planned to do this meeting. The recommendations
would not be adopted at this time. The committee would not
enter a detailed discussion with any of the departments.
Senator John Torgerson gave the subcommittee closeout for
the DEPARTMENT OF FISH AND GAME. The members of the
subcommittee included Senator Dave Donley, Senator Rick
Halford, Senator Jerry Mackie, Senator Lyman Hoffman and
himself as chair. They were directed to make a reduction of
$1,315,400 from the FY99 budget.
The subcommittee began by extending the austerity measures
that the Governor had put on the table to help alleviate
the budget problems for FY99. That was a total of $623,000.
The majority of that was taken from the fisheries
management headquarters office, at the recommendation of
the department. Part of the balance was taken from the
Glacier Bay Defense project. The department did not need
that money because of the recent lawsuit filed on the
matter.
Beyond that, the subcommittee needed to reduce $767,000.
The recommendation to the full committee was that the
reductions be applied to the fisheries management
headquarters office.
An additional $383,000 in federal receipt authority was
given with the understanding that the federal government
was more than likely to contract with the State Of Alaska
to continue doing work in high-impact federal areas for
subsistence. If the state passed a subsistence
constitutional amendment the state would get an additional
$11 million. If not, the federal government would get that
money. If the federal government took over fisheries
management, there would no need for the state to spend that
money.
The other $383,000 the subcommittee recommended through
other legislation that the fees be increased for the
commercial fisheries crew licenses. The current resident
cost was $30, and the recommended increase would be to $60.
The nonresident fees would increase from $90 to $125. This
increase would go into the fish and game fund. The
subcommittee then recommended giving the department
additional program receipt authority to collect that money.
He said this was one of the hardest budgets he had since
the commercial fishing industry brought revenue into the
state. The subcommittee felt these changes were the least
impact on the department. It was reasonably certain that
the department could collect those increased licensing
funds so the impact would be negligible.
Senator Al Adams noted for the record that his silence on
the reports was not a reflection of his agreement of the
recommendations. He needed a chance to review the
information and would return to the committee with
amendments. He appreciated the cooperation given by the
subcommittee chairs.
Co-Chair John Torgerson noted that the overall budget of
Department of Fish and Game actually did increase through
the use of federal funds. There was room for funds to be
shifted to make up for some of the shortfalls.
He then presented the subcommittee report for the
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES. The
subcommittee consisted of himself as chair, Senator Jerry
Mackie and Senator Lyman Hoffman. The mandate was a
reduction of $2,290,000 from the Governor's request. In
many cases, the subcommittee took the austerity measures
proposed in the Governor's budget and extended those
further.
He broke the recommendations down by region.
The subcommittee recommended a reduction of $47.4 thousand
to the commissioner's office budget. This was an austerity
measure
In the Central region, the snow hauling and street sweeping
budget was reduced by $150,000; approximately 20 percent.
The subcommittee recommended a fund shift transfer from
general funds to 470 funds for the environmental monitoring
of waste oils in the streets of Anchorage. The federal
Environmental Protection Agency mandated this. The fund
transfer would require an amendment to another bill
currently in committee, but he knew of no opposition to the
change.
Funding for the program that produced line striping on the
road was transferred to use federal funds after discussion
with the department. Because it was a safety item, it would
qualify for the federal funding.
The subcommittee recommended the region surplus a back-up
grader and a dump truck to realize a saving of $50,000.
The department would be directed to examine maintenance
stations and close one station to find $125,000 in savings.
A small reduction of $11,000 was made to the funding for
calcium chloride.
They were given program receipt authority of $500,000 to
reopen the Adak Airport, should the federal government
decide to grant funds for that purpose. The subcommittee
also gave statutory receipt authority for late-night
arriving airplanes when department employees were called
out.
In the Northern region, the subcommittee added $15,000 in
an attempt to close the Harborview facility. They
suggested that a one-time capital budget appropriation of
$150,000 be made to build a wall between the state-run
portion and the Valdez Hospital. If that appropriation were
not made, $235,000 would be required simply to maintain the
facility.
The subcommittee took the austerity recommendation from the
Governor's budget to not open certain roads in the region
until after the snow naturally melted. Co-Chair John
Torgerson noted the matter had been debated during
discussions regarding the FY99 supplemental budget. This
would result in a total saving of $316,000 for FY00. The
subcommittee did give designated receipt authority of
$150,000 for private parties who wished to have specific
roads opened earlier. He understood that the Canadian
government or the tourism industry might want to pay the
cost.
The subcommittee suggested closure of parts of the Denali
Highway for a maintenance period for a realized saving of
$100,000. The road would receive the current amount of
maintenance to the last residence along the road but the
forty-miles of road that crossed the pass would be shut
down permanently.
A $60,000 transfer of funds would be made to cover paint
projects.
There would be a closure of one maintenance station for
saving of $125,000.
The subcommittee recommended reductions to the Southeast
Region to include reduction in janitorial service from the
current five days a week to three days a week. This would
result in $125,000 of savings. This is something that the
Northern and Central regions had been doing.
Regarding the Marine Highway component, the subcommittee
took the recommendations of the Governor to cut $180,000.
This would remove the M/V Kennicott from two weeks of
scheduled service and transferring it to the Bellingham
route. This would leave the M/V Columbia in dry dock for
the two additional weeks. The service of the M/V Taku
would be reduced by one week and would save $146,000.
Funding for linens, aprons and blankets would be also
reduced by $44,000. Finally, a $10,000 reduction was made
to maintenance and repair items.
Senator Al Adams appreciated the report. He requested that
the subcommittee chairs make note of any accompanying
legislation and/or capital budget items that would go along
with the changes proposed to the operating budget.
BREAK 9:27 AM / 9:28 AM
Senator Dave Donley gave the subcommittee report for the
DEPARTMENT OF LAW. Members of the subcommittee included
The subcommittee had been requested to make an $800,000
reduction based on the FY99 budget. The subcommittee
looked at changes made in the House of Representatives for
suggestions.
The priorities the subcommittee wished to address were
those that protected children and also the historical
decline in the effectiveness of the Prosecutor's office
vis-a-vis the budget increases to the public defenders
agency.
Therefore, the subcommittee added one prosecutor and one
paraprofessional position for the Smart Start program. In
the Civil Division, the subcommittee made a general
reduction of $125,000 with the intent that it applies
across the board. General funds were reduced in the
Environmental Law Section by $100,000
Most increments in the Governor's request were denied.
However, the Fair Business Practices Section was increased
with the addition of one attorney position. The
Governmental Affairs Section was reduced by $95,700. The
Human Services Section was granted the requested $291,000
for two additional attorneys. Also added, were the funds
necessary to annualize the positions that were adopted the
previous year.
The subcommittee recommended a reduction from the
Governor's general fund request for the Mental Health Lands
Section by $47,000.
The subcommittee paralleled a House of Representatives'
proposal to reduce the Governor's proposed general fund
allocation for the Statehood Defense by $25,000.
Most of the cuts occurred in the Oil and Gas Litigation
Section. The subcommittee utilized the same transfer
formula proposed by the House to transfer $983,000 from the
general fund to permanent fund corporate receipts. In the
Oil and Gas Services Section, the subcommittee reduced the
Governor's request by $80,000, which would delete one
vacant position and one telephone line.
The subcommittee re-prioritized the department's budget to
reemphasize criminal prosecution, protection of children
and consumer protection.
Co-Chair Sean Parnell noted the Department of Public Safety
budget was separate from the original packet.
Senator Dave Donley gave the subcommittee report for
DEPARTMENT OF PUBLIC SAFETY. The target was a cut of only
$4,800 from FY99. While that may seem easy to do, he noted
that the Governor had requested a $2 million increase and
the Legislature had consistently increased the budget over
the last five years. The intent in past years had been to
place new troopers in the field. The department was
somewhat successful in doing this, but there had been
unanticipated costs that affected the number of positions
actually realized. He pointed out that the costs were
nobody's fault and could not have been budgeted.
He compared the Governor's request for a $2 million
increase and the House's grant of a $1 million increase.
The subcommittee was directed to find a reduction. He
detailed those proposed reductions.
The subcommittee denied most all the increments requested
except in the area of fire service training, which used
statutory designated receipts of $37,800.
There was a small increment of $15,000 to create a new Fish
and Game safeguard component that was granted. Senator
Dave Donley told the committee that was a very successful
program that had been dropped out in the past. It was
anticipated to save money in the long run.
Senator Dave Donley stated that the Trooper Detachments
component could be the most problematic area because it was
so dependent upon other support services throughout the
budget. The subcommittee denied the increment because it
was based on the number of troopers funded the prior year
rather than the number actually placed.
The subcommittee recommended a change in funding sources
for the Violent Crimes Compensation Board and for the
Council on Domestic Violence. The board would be funded at
a higher level and entirely from the prisoner's seized
permanent fund dividend receipts. It was determined that
was the best use for those funds. The council would get a
substantial increase because the department attained
additional federal funds.
Some of those federal funds would be used for an added
position in the crime lab for DNA testing.
There was a federal grant accepted for the Batterers
Intervention Program. He mentioned that a controversy
between the program and the council had been resolved.
Using monies saved through the use of prisoner's PFDs for
the council's budget, the subcommittee added a $100,000
increment to fund Victim's for Justice.
The program would continue at a baseline to increase
troopers in the field although not as much as proposed by
the House.
Some of the problems with the crime lab were also addressed
as well as victim's programs.
Senator Loren Leman gave the subcommittee report for the
DEPARTMENT OF REVENUE. He commended the department's
cooperation.
He pointed out that the spreadsheet before members did not
reflect the reduction goal because there were other
technical changes needing to be made.
To reach the allocation of $11.35 million, the subcommittee
made some fund shifts in CSED consistent with changes done
in the FY99 supplemental budget. The salary for the 12-
month position for the Welfare to Work program was reduced
with the approval of the Mental Health Trust Authority.
The subcommittee recommended that Oil and Gas Audit merge
with Income and Excise Audit. The department requested the
merger be delayed to April 2000 rather than July 1999. The
savings would be $400,000 for Oil and Gas Audit and
$100,000 for Income and Excise Audit. The subcommittee was
working on amendments to get $300,000 restored in the Oil
and Gas Audit.
One area of remaining contention was the Permanent Fund
Corporation. The subcommittee recommended denying the
increment request of $225,000 for a new staff person and
recommended a decrease of $175,000 for office efficiencies.
The department had come up with list of 29 things they
could do to be more efficient.
The subcommittee members were Senator Jerry Ward, Senator
Al Adams and Senator Loren Leman.
He then gave the subcommittee report for the DEPARTMENT OF
ENVIRONMENTAL CONSERVATION. The subcommittee was allocated
$12.2 million general funds and proposed a budget using
slightly over $11.3 million. He felt the proposal would
allow both the department and the Legislature to accomplish
their mission.
The department had requested over $2.4 million of
increments for 15 new positions. The subcommittee's
recommendation denied all new net positions and suggested
reallocation of existing staff positions. The department
could then prioritize and address programs.
In the Division of Environmental Health, the Food Safety
and Sanitation was denied its request of $330,000 by the
subcommittee. However, $1.47 million statutory program
receipts were approved. The result would mean an increase
in fees to those businesses that got inspected. The
subcommittee would introduce legislation to allow for a
local option for larger municipalities to take over the
inspections and receive the fees. He noted that Anchorage
already did this. The subcommittee and the department were
working on a transition.
The request for one position to distribute drinking water
information for utilities across the state was denied.
The subcommittee accepted federal fund receipts but denied
matching funds and directed the department to find funds
within for the Salmon Habitat Protection increment. Four
additional staff positions were also denied.
The request for one new staff position for the National
Pollutant Discharge Elimination System was denied and the
subcommittee told them to use existing personnel.
The subcommittee recommended approval of an increment for
facility construction and operations for replacement of
federal funds and increased loans audit servicing. This
would be a contracted service.
Because of the substantial success of Alaska's senior
senator in Washington, DC to obtain federal funds for the
Village Safe Water Program, the department was expecting an
increase in funds. They requested four new engineer
positions to manage the additional monies, which the
subcommittee denied but did approve contractual services.
Senator Loren Leman spoke of his experiences with the
program, noting its success.
The subcommittee recommended a reduction of $873,000 to the
Spill Prevention Response Program by combining the Storage
Tank Assistance Program and the Contaminated Sites Program
and reducing 15 employees. He said the programs would be
in a phase-down mode anyway and the merger was appropriate,
but the department felt this was too early.
Co-Chair Sean Parnell noted Senator Gary Wilken was the
chair of the Department of Education subcommittee, but that
the foundation formula was to be considered by the full
committee. The Longevity Bonus Program was also held out
for consideration.
Senator Gary Wilken gave the subcommittee report for the
DEPARTMENT OF ADMINISTRATION. The subcommittee members were
himself, Senator Lyda Green and Senator Kim Elton. He
listed the significant changes in order of their BRU.
The subcommittee recommended a $310,000 reduction for
electronic efficiencies in the Division of Finance as a
challenge accepted by the department.
At the department's recommendation, a $916,000 decrement in
the Leases program was suggested. The subcommittee also
challenged the department to find $1.25 million in
additional leasing revenues.
Public Broadcasting Television was reduced by $51,200 but
would not affect the ability to keep the stations on the
air or to maintain federal funds. A new component called
Satellite Infrastructure (ARCS) would keep public TV on the
air. A $444,000 protection insurance policy would no longer
be funded due to increase in the technology in fiber
optics. Any outages would be in the middle of the night.
The subcommittee directed the department to go to the
University of Alaska-Alaska Three to obtain funding to
increase distance delivery. An appropriation of $63,000
was added for the Aries Grant, which was the reading radio
program.
The subcommittee recognized the Administration's
recommended increase of $2.364 million for the Pioneer
Homes. This would add 50-60 additional caregivers and apply
across the budget.
Senator Gary Wilken pointed out $636,000 in reductions
across the department.
The subcommittee recommended funding an $150,000 increment
for general relief grants.
Funding for the Citizens Foster Care Review Panel was
eliminated ($296,000.) The intent was to either fully fund
the program to make it operable or shelve it until a future
time when it could be properly funded.
The Public Defenders Agency and the Office of Public
Advocacy were funded at the FY99 level not including the
supplemental request. This was causing concern at the
subcommittee level as well as the user level. He would work
with the Public Defender Agency to reconcile the
differences of opinions. He felt the matter would have to
be addressed in the future to establish an adequate level
of funding.
The subcommittee recommended accepting the $238.000 request
for the Alaska Oil and Gas Conservation Commission.
The Alaska Public Offices Commission was reduced by
$50,000.
The subcommittee recommended collapsing four components of
the Division of Motor Vehicles into one and implementing a
four-percent cost effectiveness reduction of $350,000.
Senator Gary Wilken then gave the DEPARTMENT OF EDUCATION
(except the K-12 formula) report. Subcommittee members were
Senator Randy Phillips, Senator Kim Elton and Senator Gary
Wilken.
The subcommittee reduced the $1.5 million Governor's
request for the Teaching and Learning Support to $1.096
million. Senator Gary Wilken wanted to make sure that the
Legislature supported the Administration and the Department
of Education's efforts to do the Exit Exams. These funds
would be used with those granted the prior year to ensure
that the test is as good as possible when it was
administered to high school students.
Belt tightening proposals were spread across the budget.
A 15-percent department wide travel reduction was
recommended.
The subcommittee recognized the Governor's request for an
increase of $250,000 increase for the District Support
Services. This was a result of encouragement of the
department to audit school district financial statements
for the future adequacy study.
State support was eliminated for the Kotzebue Technical
Center. The subcommittee encouraged the University of
Alaska, the industry and the City of Kotzebue to keep the
center open.
Alaska Vocational Technical Center would have a change in
funding authority in the amount of $770,000 from general
fund to statutory designated receipts. Authority was given
to raise their tuition. Senator Gary Wilken analyzed that
the center had considerable overhead and could reduce its
costs to realize more from its operation and tuition.
An increment of $150,000 was added to the Mt. Edgecumbe
School for increased janitorial service.
The subcommittee recommended rejection of an $190,000
increment for the Vocational Rehabilitation program.
The subcommittee recognized an increment request of
$100,000 for Alaska Libraries and Museums for library
materials. A general reduction of $71,000 was made to
Library Grants.
Under the Alaska Postsecondary Education Commission, the
contract fees to WAMMI were reduced by $150,000. That was
not expected to affect the tuition support for FY02, 03 and
04, but would require the program to reassess the contract
relationship between the University of Washington and the
State Of Alaska.
Senator Gary Wilken gave the ALASKA COURT SYSTEM
subcommittee report. Senator Drue Pearce, Senator Dave
Donley, Senator Robin Taylor Senator Al Adams and Senator
Gary Wilken were members. The department was funded at
FY99 level across the board with no increases.
Senator Pete Kelly gave DEPARTMENT OF COMMUNITY AND
REGIONAL AFFAIRS subcommittee report. The subcommittee was
able to meet the budget objective and address childcare
programs and the rebate program, which was eliminated.
A $200,000 general fund increase, $800,000 in tobacco
settlement funds plus federal receipts transferred from the
Department of Health and Social Services for childcare was
denied in the subcommittee recommendation. The subcommittee
discovered there was a quality portion of the childcare
grant that needed to be replaced. That would be done in
full committee and use inter-agency receipts to have no
impact on general funds.
The subcommittee denied the Governor's request for a
Headstart program increment. However, the subcommittee
recommended funding Headstart at $100,000 more than in
FY99.
The subcommittee rejected the $25,000 general fund match
for a Bio-energy Grant for the Division of Energy. This
would result in a loss of $34,000 in federal funds. There
had not been many results from the Alternative Energy
Program in resolving power problems in rural Alaska so the
subcommittee recommended eliminating the project
completely.
The subcommittee initially did not recommend funding the
RUBA grant portion of the Division of Municipal and
Regional Assistance, which would result in the loss of
federal funds as well. In talking to the department, other
funds were found that could fund the state match and thus
capture the federal funds. He would propose an amendment to
make that change.
Tape: SFC - 99 #90, Side B
Senator Pete Kelly continued saying the subcommittee
increased funding for the Headstart program by $100,000.
The subcommittee also accepted the Governor's proposed $2
million increase for Daycare Assistance.
Co-Chair Sean Parnell noted that he had asked the
subcommittee to not address the Municipal Assistance
Revenue Sharing portion of the department's budget.
Senator Pete Kelly pointed out the subcommittee's
recommended budget was a decrease of $4,200,000 from the
Governor's proposed budget.
The DEPARTMENT OF HEALTH AND SOCIAL SERVICES subcommittee
report would not be closed out until the afternoon. Senator
Pete Kelly gave a brief status report.
The subcommittee was directed to limit the increase of
funds to $11 million from FY99. Not including the formula
portion, the recommended budget actually showed a $1.4
million reduction.
There was a projected increase of $12,791 in the Governor's
budget for Medicaid. The subcommittee denied that increment
and took out a general fund portion of $4 million. He
discussed the discrepancies of the Legislature and the
Administration in Medicaid projections.
Alcohol and Drug Abuse administration would have a
reduction of $841,000 from the Governor's request. The
department received an increase in federal funds that would
allow for a 20-percent growth even with the state cuts. The
subcommittee would address the matter of maintaining an
adequate match to capture the federal funds.
The subcommittee recommended funding the Governor's request
for Adult Public Assistance at $2 million over the FY99
budget.
Full funding was also recommended for the Denali Kid Care
Program. The foster care component was funded with
$19,280,00 over the FY99 budget. The funded projects
exceeded the Governor's proposed level.
The subcommittee recommended funding the annualized cost of
the 28 social workers addressed the prior year.
There was still some problems with CAMA that should be
resolved in the afternoon's subcommittee meeting.
He would provide the full committee a more detailed report
after the subcommittee finished its closeout.
Senator Lyda Green gave her subcommittee report for the
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT.
The Tourism Development and the Alaska Tourism Marketing
Council were removed from consideration as the issues were
being addressed in separate legislation.
The department recommended a cost allocation plan, which
the subcommittee accepted. They requested $134,800 general
fund reductions, but the subcommittee reduced that by
$94,100.
The statutory required foreign trade development locals in
Japan and Korea were reduced by $80,000 by the
subcommittee.
The subcommittee recommended eliminating two specialist
positions in the Division of Trade and Development. One was
for mining and the other for big business. She noted there
were other specialists and she hoped they would enlarge and
combine their missions.
The Commissioner's Office increment request for $94,100 was
denied in the subcommittee report.
Accepted, was a Nurse Aid Investigator position request
that had been included in legislation the prior year but
was later dropped.
The subcommittee denied a requested increment to increase
the Database Programmers Support in the Division of
Occupational Licensing.
Two data processing positions for the Division of Insurance
were denied.
A request for one Analyst Programmer II position in the
Division of Banking, Securities and Corporations was
approved. The committee denied three other increments for
personnel. However, in the Cost Allocation Plan, there was
an additional analysis position that could supplement that
operation.
Senator Lyda Green pointed out that HB 53 would allow the
division to increase the funding that would come to them,
which could possibly allow another position to be added in
the future.
The subcommittee met the target and appreciated the work of
the department representatives. Members of the subcommittee
beside herself were Senator Tim Kelly and Senator
Georgianna Lincoln.
She then gave the DEPARTMENT OF LABOR subcommittee report.
This was difficult because of its small general fund
portion. The subcommittee included Senator Sean Parnell,
Senator Al Adams and Senator Lyda Green.
The subcommittee recommended an overall reduction of
$350,000 general funds.
Four positions were eliminated, one new position request
was denied and one full-time position was changed to part
time.
The subcommittee listened to the department's
recommendations of where the cuts should be made, which
were accepted. One vacant position in the commissioner's
office was eliminated.
In the Wage and Hour administration, two positions were
eliminated with discretion left to the department as to
which positions would be cut.
The department chose to take their austerity belt
tightening in the Division of Workers Compensation, the
Labor Market Information and in Management Services.
The subcommittee denied $80,000 for Mechanical Inspections
denied for a Fairbanks Boiler Inspector position.
The subcommittee met the goal of a $350,000 reduction.
Senator Randy Phillips gave the subcommittee report for the
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS. The
subcommittee consisted of himself, Senator Al Adams and
Senator Dave Donley.
The subcommittee proposed a $301,000 unallocated reduction
to the department as directed by the full committee. He had
some concerns with that amount, but he felt the full
committee could address later. The House of Representatives
recommended an amount that was only $125,000 below FY99.
He commended the assistance of the commissioner and
department staff. He would work with the commissioner.
Senator Randy Phillips then gave the subcommittee report
for the DEPARTMENT OF NATURAL RESOURCES. The members of the
subcommittee included Senator Pete Kelly, Senator
Georgianna Lincoln and himself.
The subcommittee was given a cap of $38.280 million but
actually went below the cap by $116,000.
Land Development in Division of Lands was reduced by
$1,008,500. Essentially, the planning section was
eliminated and represented a 13.7 percent reduction in the
division.
The subcommittee recommended the Oil and Gas Development be
reduced by $100,000.
The Water Development was reduced by $125,000. This would
not effect the hydrology section he stressed.
The subcommittee accepted the Governor's proposed reduction
of $75,000 for the University of Alaska-Fairbanks, Export
Certification Program of the Division of Agriculture.
He again commended the members of the subcommittee, the
department and the commissioner.
He added that he recommended to the committee two bills SB
140 to move the Division of Governmental Coordination to
the Division of Lands and would have cost savings. The
other bill would move the Animal Industries from Department
of Environmental Conservation into the Division of
Agriculture. This had the support of the farming industry
and would bring efficiencies and cost savings to state
government.
Senator Al Adams asked about the $1 million reduction to
the Division of Lands. He recalled the Taylor Plan that
called for the sale of 250,000 acres and was to generate
$350 million. This would require considerable land
assessment and evaluation. Would that not be considered in
the division's budget, he wondered. Senator Randy Phillips
responded that, if and when the bill passed, it would be
supported.
Co-Chair Sean Parnell announced the next meeting agenda to
address the **. He noted the committee was on target for
reductions.
Senator Randy Phillips asked if that was $21 million below
the FY99 adjusted figures. He was told it was slightly
below the targets.
Senator Al Adams asked if the debate for education funding
and municipal assistance and * would be held in full
committee.
Co-Chair Sean Parnell announced that the next meeting the
committee would address the University of Alaska, the
Legislative Affairs Agency, the Office of the Governor and
the Department of Corrections. The process was still on
target in that the proposed budget was $73 million below
the Governor's request. The figures were about $21 million
below the funding for the FY99 adjusted base.
Senator Al Adams asked about the Municipal Assistance and
Revenue Sharing programs.
He said there were some conflicting population figures that
were effecting the education funding. He wanted to work
with the Department of Education to correct those figures.
Senator Gary Wilken commented that he had to remind himself
that he volunteered for the position on the Senate Finance
Committee. It was difficult but he appreciated the
assistance of his staff and the departments.
Co-Chair John Torgerson asked if the remaining closeouts
were all the committee would hear at the next meeting. Co-
Chair Sean Parnell said it depended on bill drafting.
There would be a public testimony meeting at 6:00 PM. All
members should plan to attend.
Break 10:22 AM / 10:22 AM
Co-Chair Sean Parnell announced that the overview
information would be posted on the Internet by noon.
Impact statements from the departments would be posted as
soon as available.
Senator Al Adams asked to have them delivered to members'
offices.
ADJOURNED
Senator Parnell adjourned the meeting at 10:23 AM.
SFC-99 (19) 4/14/99
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