Legislature(1999 - 2000)
03/29/2000 09:11 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
March 29, 2000
9:11 AM
TAPES
SFC-00 # 68, Side A and Side B
69, Side A and Side B
CALL TO ORDER
Co-Chair Sean Parnell convened the meeting at approximately
9:11 AM
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,
Senator Al Adams, Senator Lyda Green, Senator Pete Kelly,
Senator Loren Leman, Senator Randy Phillips and Senator
Gary Wilken were present when the meeting started. Senator
Donley arrived later.
Also Attending: ANNALEE MCCONNELL, Director, Office of
Management and Budget; DAVID TEAL, Director, Division of
Legislative Finance; GARY POWELL, Director, State Fire
Marshal, Division of Fire Prevention, Department of Public
Safety; JEFF BUSH, Deputy Commissioner, Department of
Community and Economic Development; ALISON ELGEE, Deputy
Commissioner, Department of Administration
SUMMARY INFORMATION
HB 312-APPROPRIATIONS: OPERATING BUDGET
The Committee adopted a committee substitute as a workdraft
and considered amendments.
HB 313-APPROPRIATIONS: MENTAL HEALTH
The Committee adopted a committee substitute as a workdraft
and considered amendments.
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 312(FIN)
am(brf sup maj fld)(efd fld)
"An Act making and amending appropriations for the
operating and loan program expenses of state
government, for certain programs, and to capitalize
funds."
Co-Chair Torgerson moved to adopt CS HB 312, 1-LS1304\I as
a workdraft.
Without objection the committee substitute was ADOPTED.
Co-Chair Parnell parlayed general instruction to the
Division of Legislative Finance to make technical
corrections to amendments to the committee substitute as
necessary.
Co-Chair Parnell pointed out that wherever a new Budget
Request Unit (BRU) is noted in an amendment, it is
considered a separate appropriation unless otherwise
designated.
ALASKA COURT SYSTEM
There were no amendments submitted for the Alaska Court
System.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
There were no amendments submitted for the Department of
Environmental Conservation.
DEPARTMENT OF FISH AND GAME
F&G #1: This amendment increases the amount of other funds
appropriated to the Crystal Lake Hatchery from $414,000 to
$606,700. The language is located on page 11, line 30 of
the committee substitute.
Co-Chair Torgerson moved for adoption and explained that
this amendment gives the department the authority to
receive and expend an additional $192,700 in interagency
receipts from Pacific Salmon Treaty funds to the Crystal
Lake Hatchery.
There was no objection and the amendment was ADOPTED.
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
L&WD #1: This amendment reduces the amount of other funds
allocated to Employment Security, State Training Employment
Program (STEP) from $73,088,300 to $68,534,500. The
language is located on page 18, line 28 of the committee
substitute.
Co-Chair Torgerson moved for adoption.
Senator Adams and Senator Green objected.
Co-Chair Torgerson explained that his intent was to fund
the STEP program through a fiscal note to SB 289.
Senator Green spoke to her objections saying that SB 289
supplants the vocational training efforts underway by a
different group than provided for in the bill. She was not
convinced this reappropriation was the best method and
asked if the present funding mechanism could be maintained
until Co-Chair Torgerson's bill passes, suggesting that an
amendment to the operating budget could be considered
afterwards. She relayed she had heard compelling
information that the existing program is operating
adequately.
Senator Adams agreed with Senator Green about the affects
on the STEP program if SB 289 does not pass.
Co-Chair Parnell asked if the funds were included in the
House of Representatives version of the operating budget.
Co-Chair Torgerson noted the funds were included in the
House version and that the matter would be addressed in
conference committee if the Senate made a change.
A roll call was taken on the motion.
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator
Phillips, Senator Leman, Co-Chair Torgerson and Co-Chair
Parnell
OPPOSED: Senator Adams and Senator Green
ABSENT: Senator Donley
The motion PASSED (6-2-1)
The amendment was ADOPTED.
L&WD #2: This amendment adds $48,000 general funds for
Labor Standards and Safety BRU, Wage and Hour
Administration component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams spoke to the motion saying the amendment
restores funding for one Wage and Hour investigator. He
warned that the elimination of this position would result
in increased violations of the Davis/Bacon Act.
Senator Adams talked about "carpet bagger" contractors who
come into the state and that no proper investigation is
made as to whether Alaskan employees would be paid for
their work.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly,
Senator Green, Senator Phillips, Co-Chair Torgerson and Co-
Chair Parnell
ABSENT: Senator Donley
The motion FAILED (1-7-1)
The amendment FAILED to be adopted.
DEPARTMENT OF LAW
There were no amendments submitted for the Department of
Law until later in the meeting.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
M&VA #1: This amendment appropriates $303,900 other funds,
of which, $76,000 is Investment Loss Trust funds (ILTF) and
$227,900 is federal funds, to Air Guard Facilities. This
language would be inserted on page 21 line 24 of the
committee substitute.
Co-Chair Torgerson moved for adoption.
Co-Chair Parnell spoke to the amendment, noting that this
does not utilize general funds. He explained that the
appropriation would pay for the operation, maintenance and
use of facilities currently under construction at Kulis. He
stated that if this small amount were not paid future
federal funding would be in jeopardy because the state
would be in violation of the Master Cooperative Agreement
between the state and federal governments.
Senator Phillips stated that during the September 1999
statewide advisory vote on whether to spend a portion of
the permanent fund to support state government, there were
a lot of complaints about overall government spending. He
asked if this amount increases the amount of federal
funding received.
Co-Chair Parnell answered that this appropriation does not
increase federal funds received in the current year.
However if this amendment were funded, he stressed, the
state would continue to get federal funds to operate the
facility.
Senator Adams referred to the Administration's plan to
utilize the ILTF to pay for salary increases for state
employees and asked if general funds were considered for
funding this item.
Co-Chair Parnell replied he had considered using general
funds, but that he intends to close the state's fiscal gap,
which could not be done by spending general fund money.
A roll call was taken on the motion.
IN FAVOR: Senator Leman, Senator Adams, Senator Wilken,
Senator P. Kelly, Senator Green, Co-Chair Torgerson and Co-
Chair Parnell
OPPOSED: Senator Phillips
ABSENT: Senator Donley
The motion PASSED (7-1-1)
The amendment was ADOPTED.
M&VA #2: This amendment allocates $52,000 Statutory
Designated Program Receipts (SDPR) for Alaska National
Guard BRU, Army Guard Facilities Maintenance.
Senator Adams asked about another proposed amendment, which
he would like considered along with this amendment.
Co-Chair Parnell replied that the other amendment in
question is titled LANG #9 and would be brought up later.
He explained that he grouped several amendments addressing
unallocated reductions together.
Senator Adams expressed that LANG #9 provides the necessary
funds for many of the amendments he sponsored.
Senator Adams moved for adoption of M&VA #2.
Co-Chair Torgerson objected for explanation.
Senator Adams stated that Alaska has one of the best US
Army National Guard facility maintenance components that
also assist school districts. He explained that the Copper
River School District has requested the department help in
the development of a preventative maintenance program for
the school system. He detailed that this allocation would
pay for labor, materials, travel, and per diem expenses.
Co-Chair Parnell asked if this item was included in the
House of Representative's version of the operating budget.
Senator Adams did not think so.
Senator Phillips expressed that the matter only came to his
attention a few days earlier and that the subcommittee
hadn't addressed it.
Co-Chair Parnell asked if Senator Phillips supported the
amendment.
Senator Phillips was indifferent.
Co-Chair Torgerson understood an agreement was already
reached between the Copper River School District and the
department. He removed his objection.
Senator Green asked if this budget increment required
legislative approval. She thought that perhaps the school
districts could contract the services to other entities.
It was established that because statutory designated
program receipts were involved, legislative approval was
necessary.
Co-Chair Parnell described that the legislature has no
involvement with how school districts spend money, but
pointed out that this amendment gives the department the
authority to expend the funds received from the district.
There was no objection and the amendment was ADOPTED.
DEPARTMENT OF NATURAL RESOURCES
DNR #1: This amendment allocates $150,000 general funds to
the Minerals, Land and Water BRU, Title Acquisition and
Defense, and reduces the amount allocated to the Land Sales
and Municipal Entitlements component by $150,000 general
fund/SDPR. The amendment also includes the following intent
language.
"It is the intent of the Senate Finance Committee that
proceeds from Land Disposals, including principal and
interest from existing and future disposals be used by
the department to administer the Land Disposal Program
and be classified as Designated program Receipts."
Senator Wilken told the Committee that he was waiting to
have a question answered before he decided whether to offer
this amendment or not.
This amendment was HELD at this time and was ultimately NOT
OFFERED.
DNR #2: This amendment adds $150,000 general funds to the
Minerals, Land and Water BRU, Title Acquisition and Defense
component.
Senator Adams moved for adoption.
Co-Chair Torgerson objected.
Senator Adams warned that a budget reduction in this area
would slow economic development. He surmised that the
amount of land received from the federal government would
be reduced by half.
Senator Wilken relayed that the Bureau of Land Management
has completed much of the work using Native allotments and
could now focus on land conveyance to the State Of Alaska.
Senator Wilken supported the amendment noting that DNR #1
addresses the same issue. However, he said there was a
question about the funding source. He urged a "no" vote on
DNR #2 at this time saying he would offer DNR #1 if a
funding source were located.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Green, Senator Phillips, Senator Leman,
Senator Wilken, Co-Chair Torgerson and Co-Chair Parnell
ABSENT: Senator Donley and Senator P. Kelly
The motion FAILED (1-6-2)
The amendment FAILED to be adopted.
DNR #3: This amendment adds $150,000 general funds for
Minerals, Land and Water BRU, Land Sales and Municipal
Entitlements.
Senator Adams AMENDED the amendment to change the funding
source to SDPR and moved for adoption.
Co-Chair Torgerson objected.
Senator Adams asked the question of what is the least
expensive way to get land into the ownership of
individuals. He answered that this amendment would be much
cheaper than the method proposed by Senator Taylor in SB 6.
Senator Adams estimated that this amendment would generate
approximately $1 million in revenue from land sales that
could then be used to fund further offerings.
Co-Chair Torgerson noted that a bill sponsored by the
governor proposes funding the entire expense of the
Division of Land with statutory designated receipts. He
understood that bill has broad-based support and would
pass. He maintained his objection to the amendment.
Senator Adams appreciated the intent to change the land
disposal process in the future but noted that the bill's
passage, as well as an adequate attached fiscal note, was
not guaranteed. He mentioned the rumor that session would
end by April 23 and that the legislative leadership could
make compromises to make that happen and subsequently, much
of the pending legislation would not pass.
Co-Chair Torgerson was unsure whether the legislature had
authority to implement this amendment without a change to
the designated receipt statutes.
Co-Chair Torgerson expressed his intent to work through the
bill if it were referred to the Committee.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Phillips, Senator Leman, Senator Wilken,
Senator P. Kelly, Senator Green, Co-Chair Torgerson and Co-
Chair Parnell
ABSENT: Senator Donley
The motion FAILED (1-7-1)
The amended amendment FAILED to be adopted.
DNR #4: This amendment adds $50,000 general funds for the
Forest Management and Development BRU, Forest Management
and Development component.
Senator Adams moved for adoption.
Co-Chair Parnell and Senator Phillips objected.
Senator Adams spoke to the increased timber sales in the
Kenai Peninsula area. He warned of the loss of several
small sales if this funding was not provided. He also
thought there would be losses to small businesses.
Senator P. Kelly asked if this item was included in the
House of Representatives' version of the operating budget.
Senator Adams said it was not.
Senator Green suggested other receipts could be added to
fund these sales.
Senator Adams commented that, if this amendment failed, he
hoped the Committee could reconsider allocating funds to
provide jobs and economic development.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly,
Senator Green, Senator Phillips, Co-Chair Torgerson and Co-
Chair Parnell
ABSENT: Senator Donley
The motion FAILED (1-7-1)
The amendment FAILED to be adopted.
DEPARTMENT OF REVENUE
There were no amendments for the Department of Revenue.
AT EASE 9:38 AM / 9:44 AM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
DOT #1: This amendment increases the allocation of Marine
Highway funds from $43,436,400 to $77,132,400 for the
Marine Highway System. This language would be inserted on
page 29, line 18 of the committee substitute.
Co-Chair Torgerson moved for adoption and explained that
all the Department of Transportation and Public Facilities
amendments he sponsored deal with the increased fuel costs
and that this amendment is specific to the Marine Highway
System.
The amendment was ADOPTED without objection.
DOT #2: This amendment increases the appropriation for
Central Region Highways and Aviation from $3,218,700 to
$3,283,700. This increase comes from the new Public
Building Fund capitalized in the fiscal note to HB 112.
Co-Chair Torgerson moved for adoption.
Senator Adams objected.
Co-Chair Torgerson spoke to motion saying that rather then
simply using general funds for this increase, he proposed
reappropriating funds from the newly created facilities
fund. This fund, he explained would be the result of recent
legislation that charges each department with the cost of
facility depreciation and utilizes the funds to offset the
relative costs. He admitted the intent of this fund is to
pay for deferred maintenance costs. However, he stressed
that paying for fuel and to keep buildings warm has a
higher priority then deferred maintenance at this time.
Senator Adams supported DOT #2, #3 and #4, but had concerns
with the funding source. He pointed out that these
amendments use funds derived from legislation that has not
even passed the legislature yet. He asserted this method of
"creative financing" is like "comparing raisins to turnips"
with regard to comparison of funding sources. Therefore, he
stated he could not support the amendments until the
funding source was established.
ANNALEE MCCONNEL, Director, Office of Management and
Budget, Office of the Governor, testified that this was one
area where higher oil prices have a negative impact on the
state. She had no disagreement with the expenditure of
additional funds for the increased fuel costs. She did have
concerns with using the facilities fund because of the
efforts made to address the prevention of future deferred
maintenance problems. She hoped the general funds could be
maintained in the building fund rather than spent on the
fuel costs.
A roll call was taken on the motion.
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green,
Senator Phillips, Senator Leman, Co-Chair Torgerson and Co-
Chair Parnell
OPPOSED: Senator Adams
ABSENT: Senator Donley
The motion PASSED (7-1-1)
The amendment was ADOPTED.
DOT #3: This amendment increases the appropriation for
Southeast Region Highways and Aviation from $251,900 to
$298,400 using Public Building Funds to cover the $46,500
difference. This language would be inserted on page 28,
line 28 of the committee substitute.
Co-Chair Torgerson moved for adoption and explained this
amendment also addresses the anticipated higher fuel
prices.
Senator Adams objected to the motion because of the funding
source used, but emphasized he agrees with increased
funding for fuel costs.
A roll call was taken on the motion.
IN FAVOR: Senator P. Kelly, Senator Green, Senator
Phillips, Senator Leman, Senator Wilken, Co-Chair Torgerson
and Co-Chair Parnell
OPPOSED: Senator Adams
ABSENT: Senator Donley
The motion PASSED (7-1-1)
The amendment was ADOPTED.
DOT #4: This amendment increases the allocation to the
Northern Region Highways and Aviation from $1,348,900 to
$1,685,500 using Public Building Funds to cover the
$336,600 difference. This language would be inserted on
page 28, line 14 of the committee substitute.
Co-Chair Torgerson moved for adoption, saying this
amendment also provides additional funding for fuel costs.
Senator Adams objected and asked if the sponsor of the
amendment planned to change the fiscal note on the building
fund legislation to reflect the reallocation of these
funds.
Co-Chair Torgerson stated it was his understanding a fiscal
note change was not necessary because it was drafted in
anticipation of such a reallocation.
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Phillips, Senator Leman,
Senator Wilken, Senator P. Kelly, Co-Chair Torgerson and
Co-Chair Parnell
OPPOSED: Senator Adams
ABSENT: Senator Donley
The motion PASSED (7-1-1)
The amendment was ADOPTED.
DOT #5: This amendment increases the appropriation for the
Statewide Facility Maintenance and Operations from
$2,578,400 to $3,014,100 using Public Building Funds to
cover the $436,000 difference.
Co-Chair Torgerson moved for adoption and stated this
amendment provides additional funding for fuel costs. He
noted these funds would be spent directly on the buildings
that contribute to the building fund.
Senator Adams objected again saying that he supported the
intent of increased funding for the increased fuel costs,
but that the building fund is intended for deferred
maintenance.
A roll call was taken on the motion.
IN FAVOR: Senator Phillips, Senator Leman, Senator Wilken,
Senator P. Kelly, Senator Green, Co-Chair Torgerson and Co-
Chair Parnell
OPPOSED: Senator Adams
ABSENT: Senator Donley
The motion PASSED (7-1-1)
The amendment was ADOPTED.
DOT #6: This amendment increases the general fund
appropriation to the Northern Region Highways and Aviation
from $35,947,000 to $35,978,300 for plowing open certain
roads during the Spring of 2001. The amount of $10,500 is
to plow Boundary Spur, $5,800 for US Creek, Fairbanks
Creek, Tofty and Eureka in the Fairbanks area, and $15,000
for the Copper River Road.
Co-Chair Torgerson moved and explained the intent of the
subcommittee to reopen several roads in the spring, prior
to snowmelt. This amendment, he said would fund three
overlooked roads and utilizes general funds.
Co-Chair Parnell objected.
Senator Leman asked how much time was gained by plowing
roads rather than waiting until the snow melted.
Co-Chair Torgerson replied the roads would be open
approximately one month earlier.
A roll call was taken on the motion.
IN FAVOR: Senator Adams and Co-Chair Torgerson
OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly,
Senator Green, Senator Phillips and Co-Chair Parnell
ABSENT: Senator Donley
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
Co-Chair Parnell expressed that he was willing to rescind
the Committee's action if another funding source were
identified.
Senator P. Kelly stated that he would like the amendment
re-addressed at a later time.
LANGUAGE SECTION
LANG #6: This amendment makes the following changes to the
committee substitute.
Agency: Department of Fish and Game
BRU: Administration and Support
Component: Boards of Fisheries and Game
Page 12, following line 10
Insert:
"It is the intent of the Legislature that the Board of
Fisheries reduces its overall number of meetings days
or reduces its number of meetings in FY01 from five
meetings to four meetings."
Agency: Department of Health and Social Services
BRU: Medicaid Services
Component: Medicaid Services
Page 13, following line 25
Insert:
"It is the intent of the legislature that the Division
of Medical Assistance will develop a program of
intergovernmental transfers, at 90% return, with
public hospitals or nursing homes, which will allow
the Medicaid program to capture statutory designated
program receipts of $10,000,000 to offset general fund
expenditures for fiscal year 2001."
A more recent estimate of available statutory
designated program receipts is $18 million. The
Committee may wish to consider amending the intent
language to reflect the new estimate.
Agency: Alaska Court System
BRU: Alaska Court System
Component: Administration and Support
Page 30, following line 33
Insert:
"It is the intent of the legislature that the Alaska
Court System examine the feasibility of moving its
information technology network operations from the
Department of Administrations Wide Area Network (WAN)
to a network provided by commercial carriers. The
Court System shall use money appropriated to pay
network charges to obtain services from the most cost
beneficial network service provider, which may be a
network secured for the balance of state government by
the Department of Administration."
Agency: University of Alaska
BRU: University of Alaska
Component: Budget Reductions/Additions - Systemwide
Add $400,000 GF
Chapter 84, SLA 1999, Sec. 36 (HB 50) appropriated
400.0 GF that was identified as a One-time Item and
was incorrectly deleted by the Division of Legislative
Finance. The subcommittee did not intend to make the
reduction.
Co-Chair Torgerson moved for adoption.
AT EASE 9:56 AM / 9:57 AM
Co-Chair Parnell explained this amendment adds intent
language to reflect the intent of the subcommittees. He
stated the Division of Legislative Finance pointed out the
need for the language changes after reviewing the committee
substitute.
There was no objection and the amendment was ADOPTED.
LANG #7: This amendment makes the following changes to the
committee substitute.
Parts (a) and (b) of this amendment are fund source
changes in response to recent information received
from the Division of Retirement and Benefits. The
Division of Legislative Finance created new fund
source codes to identify duplicated expenditures,
including those for SBS, Deferred Compensation and
Health Insurance. In fact, the funds in question
should not be counted as duplicated. The amendments
restore the original fund source codes and have no
impact on the budget.
(a)
Agency: Department of Administration
BRU: Centralized Administrative Services
Component: Retirement and Benefits
Delete $100,000 Supplemental Benefits Sys IA
Add 100,000 Benefit Systems Receipts
Delete 100,000 Deferred Comp IA
Add 100,000 Benefit Systems Receipts
(b)
Agency: Department of Administration
BRU: Centralized Administrative Services
Component: Group Health Insurance
Delete $100,000 Health IA
Add 100,000 Benefit Systems Receipts
(c)
Agency: Department of Community and Economic
Development
BRU: Alaska Seafood Marketing Institute
Component: Alaska Seafood Marketing Institute
Delete $700,000 General Funds
The subcommittee for the Department of Community and
Economic Development intended the Alaska Seafood
Marketing Institute (ASMI) FY 01 GF budget to be
$6,105,400, including carryforward from FY 00. Reports
published on the Division of Legislative Finance web
site showed $700,000 GF carryforward in the language
section in addition to $6,105, 400 appropriated in
Section 1, for a total of $6,805,400 GF. Based on
information provided by the department, the
carryforward language (Section 8) is essential and the
preferred method to achieve the subcommittee's
recommendation is to reduce the amount in Section 1.
(d)
Agency: Department of Public Safety
BRU: Fish and Wildlife Protection
Component: Enforcement/Investigative Services
Delete $141,500 Fish and Game Fund
Add 141,500 Fish and Game Duplicated Funds
Correctly indicates that expenditures of Fish and Game
receipts in the Department of Public Safety are
duplicated expenditures.
Co-Chair Torgerson moved for adoption.
DAVID TEAL, Director, Division of Legislative Finance
explained the first two items are changes worked out with
the Office of Management and Budget to eliminate duplicated
fund sources. He stated the existing language was a mistake
made while the bill was in the House of Representatives and
should be reversed. He assured there was no duplication of
funds.
Co-Chair Parnell clarified that this amendment results in
no change in spending.
Mr. Teal affirmed.
Senator Adams requested an explanation of Item C of the
amendment.
Mr. Teal replied this was an oversight of the subcommittee
that did not account the carry-forward, which increased the
amount of funding. He stressed that this amendment
represents the subcommittee's intentions.
Without objection the amendment was ADOPTED.
AT EASE 10:07 AM / 10:30 AM
Co-Chair Parnell announced the meeting would recess to the
call of the chair.
AT EASE 10:31 AM / 2:51 PM
DEPARTMENT OF CORRECTIONS
COR #1: This amendment inserts $80,700 general funds for
the Administration and Operations BRU, Community Jails
component.
Senator Adams moved for adopted.
Co-Chair Parnell objected.
Senator Adams spoke to his motion, stating that it is a
cost savings measure. He explained it is less expensive to
house certain offenders in community jails rather than
transporting them to state correctional facilities. He
stated that the funding would be used for infrastructure
maintenance. He noted that the funding had remained the
same over the last several years.
Co-Chair Parnell noted the subcommittee had distributed
reductions of 1.7 percent across 13 prison and jail
components; giving each superintendent the latitude and
incentive to eliminate waste and make cost saving changes.
Tape: SFC - 00 #68, Side B 2:53 PM
Co-Chair Parnell continued that the subcommittee noted that
over half of the department's budget is directed toward
correctional center operations.
Senator Adams argued that the across the board reduction
was irresponsible because new anti-crime legislation is
continually adopted but the legislature does not provide
the funding to implement the new statutes.
Co-Chair Parnell countered that the prison population on
average was currently declining and is below maximum
capacity.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Donley, Senator Leman, Senator P. Kelly,
Senator Green, Senator Phillips, Co-Chair Torgerson and Co-
Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
COR #2: This amendment inserts additional general funds for
the Administration and Operations BRU, $41,900 for the
Northern Region Probation component, $80,000 for the
Southcentral Region Probation component and $16,400 for the
Southeast Region Probation component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams explained this amendment relates to adult
parole officers, who monitor, survey and provide overall
supervision of offenders. He pointed out that virtually
every offender has supervision following jail time. He
stressed that caseloads have increased on a statewide
basis.
Senator Adams stated that this amendment would fund two and
one-half additional positions in urban areas, lowering the
overall caseload to 70 to 100 per position.
Senator Adams spoke to SB 281, the budget missions and
measures legislation passed by the Senate, and the
importance of funding the missions defined in the bill.
Co-Chair Parnell agreed and relayed the commissioner's
concerns voiced in the subcommittee meeting about
overcoming the Cleary vs. State Of Alaska ruling. However,
he assured that the current funding level does not
jeopardize public safety.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly,
Senator Green, Senator Phillips, Senator Donley, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
COR #3: This amendment inserts additional general funds for
the Administration and Operations BRU to the following
components.
Anvil Mountain $ 66,600
Combined Highland Mountain 124,700
Cook Inlet 138,800
Fairbanks 116,500
Ketchikan 43,800
Lemon Creek 100,500
Mat-Su 43,700
Palmer 141,200
Sixth Avenue 60,900
Spring Creek 231,000
Wildwood 138,100
Yukon-Kuskokwim 66,000
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams again spoke to the department-wide $1.7
million reduction saying this amendment restores the cuts
made to each facility. He talked about the need for
correction officers. He felt it was wrong to remove that
amount of personal services funding from the department. He
stressed that without adequate funds, the department would
lose between 50 and 70 correctional officer positions.
Co-Chair Parnell wanted the public to be aware of the
difference between positions and the actual number of
employees, noting that many of the positions in question
are currently vacant.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,
Senator Phillips, Senator Donley, Senator Leman, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
COR #4: This amendment inserts $100,000 general funds to
the Community Residential Centers BRU, CRC Offender
Supervision component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams explained this amendment relates to the
community residential centers (CRC) and would fund the
annualized cost of new "beds" added to the program in FY
00.
Senator Adams believed that without these funds, the
department would be unable to maintain the approximate 1600
new beds. He shared that it has been found that this
program is a cost-effective alternative to incarceration.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator P. Kelly, Senator Green, Senator Phillips,
Senator Donley, Senator Leman, Senator Wilken, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
COR #5: This amendment inserts $82,900 Mental Health Trust
Settlement Income (MHTAAR) funds to the Administration and
Operations BRU, Inmate Programs component. This
appropriation is to fund the Men's Substance Abuse Pilot
Program.
Senator Adams moved for adoption.
Co-Chair Torgerson asked if the Mental Health Trust
Authority (MHTA) agreed to this.
Senator Adams answered that the Trust approved of the
amendment.
There was no objection and the amendment was ADOPTED.
COR #6: This amendment inserts $70,000 SDPR to the
Administrative and Operations BRU, Institutions Director's
Office component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams stated that this amendment funds contracts
provided by the Education Service District #101 within the
State of Washington. He explained that the district's
program would provide distant education services to
juveniles who are incarcerated as adults in Alaska. He
noted the funds are received from outside the state.
AT EASE 3:04 PM / 3:04 PM
Senator Adams offered a motion to withdraw his motion to
adopt the amendment.
There was no objection, the motion to adopt was WITHDRAWN
and the amendment was HELD.
COR #7: This amendment inserts $450,000 SDPR to the
Administration and Operations BRU, Electronic Monitoring
component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams emphasized that the participants pay the full
cost of this program and that this appropriation would
allow the department to expand the program. He stressed the
cost effectiveness of the program.
Co-Chair Parnell maintained his objection citing
subcommittee discussion that supported electronic
monitoring only as the last step of returning to society
after incarceration, but not in lieu of incarceration. He
pointed out that the issue is also addressed in COR #8 and
COR #9.
Senator Adams offered a motion to withdraw his motion to
adopt the amendment.
There was no objection, the motion to adopt was WITHDRAWN
and the amendment was HELD.
COR #8: This amendment changes the funding source from
general funds to SDPR receipts for the following BRUs and
components.
BRU: Administration and Operations
Component:
Institution Director's Office $ 225,000
Combined Hiland MT Correctional Center 290,200
Cook Inlet Correctional Center 249,100
Fairbanks Correctional Center 21,000
Ketchikan Correctional Center 20,500
Lemon Creek Correctional Center 101,900
Mat-Su Correctional Center 59,100
Palmer Correctional Center 156,100
Sixth Avenue Correctional Center 883,900
Wildwood Correctional Center 15,600
Electronic Monitoring 645,600
Subtotal 2,668,000
BRU: Community Corrections
Component:
Community Residential Centers 811,000
Total 3,479,000
Co-Chair Parnell stated that he intended to hold this
amendment to work further on the utilization of SDPR. He
commented that some local governments currently contract
with the state for the cost of incarcerated offenders of
municipal laws. Payment of those contracts, he shared,
qualifies as SDPRs.
This amendment was HELD.
COR #9: This amendment replaces general funds with SDPR for
the following components of the Administration and
Operations BRU and the Community Corrections BRU, in the
following amounts.
BRU: Administration and Operations
Component:
Institution Director's Office $225,000
Combined Hiland MT Correctional Center 290,200
Cook Inlet Correctional Center 249,100
Fairbanks Correctional Center 21,000
Ketchikan Correctional Center 20,500
Lemon Creek Correctional Center 101,900
Mat-Su Correctional Center 59,100
Palmer Correctional Center 156,100
Sixth Avenue Correctional Center 883,900
Wildwood Correctional Center 15,600
Electronic Monitoring 645,600
Community Jails Restore: 80,700GF
Electronic Monitoring 645,600
Subtotal 2,668,000
BRU: Community Corrections
Component:
Community Residential Centers 811,000
Total 3,479,000
This amendment also inserts general funds to the Department
of Community and Economic Development, Municipal Revenue
Sharing BRU as follows.
State Revenue Sharing $1,534,000
Municipal Assistance 1,866,000
Total 3,400,000
Language accompanying the amendment reads as follows.
Switch funding for existing correctional programs from
G.F. to Statutory Designated Program Receipts as
requested in the Governor's FY 2001 Budget Request and
Fund Municipal Assistance and Revenue Sharing at
Fiscal Year 00 Level. Restore $80.7 G.F. cut to
Community Jails
Senator Adams explained that this amendment, while similar
to COR #8, goes farther in that it uses SDPR and places it
in Municipal Revenue Sharing.
This amendment was not offered at this meeting due to its
similarity to COR #8. An amended version, COR #9A was
offered in the next meeting.
AT EASE 3:08 PM / 3:45 PM
DEPARTMENT OF PUBLIC SAFETY
DPS #1: This amendment makes the following changes to pages
8 and 24 of the committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 8, line 26:
Delete:
Early Development 65,920,300 8,396,600 57,523,700
Insert:
Early Development 66,455,300 8,396,600 58,058,700
Page 8, line 28:
Delete:
Child Care 29,148,600
Assistance &
Licensing
Insert:
Child Care 29,683,600
Assistance &
Licensing
Page 24, lines 31 and 32
Delete:
Council on Domestic 8,957,800 2,819,100 6,138,700
Violence and Sexual
Assault
Insert:
Council on Domestic 8,957,800 2,819,100 6,138,700
Violence and Sexual
Assault
This amendment is intended to change the funding
source for the Council on Domestic Violence and Sexual
Assault from Temporary Aide for Needy Families (TANF)
funds to Permanent Fund Dividend (PFD) Felons Funds.
Co-Chair Torgerson moved for adoption.
Co-Chair Parnell told the Committee this amendment moves
the federal TANF funds from the Council into Early
Development and Childcare.
Co-Chair Torgerson moved to amend Amendment #1 by replacing
the language with the language of DPS #1A as follows.
Appropriation General Other
Allocation Items Funds Funds
Page 8, line 26:
Delete:
Early Development 66,455,300 8,396,600 58,058,700
Insert:
Early Development 65,920,300 8,396,600 57,523,700
Page 8, line 28:
Delete:
Child Care 29,683,600
Assistance &
Licensing
Insert:
Child Care 29,148,600
Assistance &
Licensing
Page 24, lines 31 and 32
Delete:
Council on Domestic 8,957,800 2,819,100 6,138,700
Violence and Sexual
Assault
Insert:
Council on Domestic 8,957,800 2,819,100 6,138,700
Violence and Sexual
Assault
This amendment to the amendment reflects the
departments concerns that the 30 percent limit of TANF
funds that can be used for Child Care will be exceeded
upon passage of this amendment.
Co-Chair Parnell explained that the department has some
concerns that the 30 percent limit of TANF funds allowed
for Child Care had already been reached.
There was no objection and the amendment was AMENDED.
The amended amendment was ADOPTED without objection.
DPS #2: This amendment makes the following changes.
Appropriation General Other
Allocation Items Funds Funds
Page 24, lines 31 and 32
Delete:
Council on Domestic 8,957,800 2,819,100 6,138,700
Violence and Sexual
Assault
Insert:
Council on Domestic 9,207,800 1,789,800 7,438,700
Violence and Sexual
Assault
This amendment will provide additional Permanent Fund
Dividend (PFD) felons funds to the Council on Domestic
Violence and Sexual Assault restoring $100,000 from FY
99 and provide an additional $250,000 for grants.
This amendment was NOT OFFERED.
DPS #3: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 24, lines 18-24:
Delete:
Alaska State 25,194,100 24,995,500 198,600
Trooper Detachments
Payroll & Benefits
Alaska State 8,142,600 7,866,300 276,300
Trooper Detachments
Operations
Insert:
Alaska State 33,336,700 32,861,800 474,900
Trooper Detachments
Senator Donley moved for adoption and explained this
amendment consolidates two BRUs into one and incorporates
payroll and benefits and trooper detachment operations. He
said the intent is to give the Alaska State Troopers more
flexibility to utilize funding.
Senator Adams had no objection but questioned why the
amendment did not also delete the Petersburg BRU to give
more flexibility.
Senator Donley responded that this amendment increases the
funding level significantly from the previous year because
it doesn't include the across the board reductions. In
addition, he noted this appropriation provides enough money
to fund one more statewide trooper position. There is also
a separate BRU, he continued, for a Petersburg Detachment
trooper, which was stated as the next highest priority in
testimony presented to the subcommittee.
Senator Phillips asked if this amendment had a net
increase.
Senator Donley confirmed that there is no net increase.
Without objection, the amendment was ADOPTED.
DPS #4: This amendment makes the following change to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 24, lines 4-6:
Delete:
Fire Prevention 2,391,000 1,788,600 602,400
Fire 1,567,700
Prevention Operations
Fire 823,300
Service Training
Insert:
Fire Prevention 2,489,100 1,886,700 602,400
Fire 1,665,800
Prevention Operations
Fire 823,300
Service Training
This amendment was NOT OFFERED and replaced with DPS #9.
[The following amendment was considered out of numeric
order.]
DPS #9: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 21, lines 4-7
Delete:
Oil & Gas 5,080,500 3,603,500 1,477,000
Litigation &
Legal Services
Oil & Gas 4,784,800
Litigation
Oil & Gas 295,700
Legal Services
Insert
Oil & Gas 7,982,400 3,505,400 1,477,000
Litigation &
Legal Services
Oil & Gas 4,686,700
Litigation
Oil & Gas 295,700
Legal Services
Page 24, lines 4-6
Delete:
Fire Prevention 2,391,000 1,788,600 602,400
Fire 1,567,700
Prevention Operations
Fire 823,300
Service Training
Insert:
Fire Prevention 2,489,100 1,886,700 602,400
Fire 1,665,800
Prevention Operations
Fire 823,300
Service Training
Provides $98,100 of funding to adopt the International
Building Code.
AT EASE 3:49 PM / 3:50 PM
Senator Donley pointed out a requirement that the state
must adopt conforming changes to its building code to meet
the new international building code. He warned this could
have a significant impact in the event of a major
catastrophe.
Senator Donley moved to adopt the amendment.
Senator Adams objected.
GARY POWELL, Director, State Fire Marshal, Division of Fire
Prevention, Department of Public Safety, affirmed that if
the state does not adopt the most current building code
then the Federal Emergency Management Agency (FEMA) would
only reimburse a portion of disaster recovery costs.
Senator Donley noted this would be a one-time appropriation
and was an increment over the previous year's spending. He
thought the matter should be brought before the full
Committee. He detailed the difference between this
operating function compared to capital projects contained
in the FY 01 Capital Budget.
Senator Adams agreed this is an important issue but thought
oil and gas litigation funds should not be used to fund
this project. He spoke of the pending divestiture of ARCO
assets between British Petroleum, Inc. and Phillips
Petroleum, Inc. and the necessity of the state to be
involved in the process to protect the state's interest.
Co-Chair Parnell thought BP was reimbursing the governor's
office for state's legal costs incurred as a result of the
merger.
Co-Chair Torgerson asked why it would cost so much to adopt
these regulations.
Mr. Powell replied that the issue was expansive and the
last codes were adopted many years ago and were not
published. Therefore, he projected that more extensive
public notice and more interaction with building groups
would be necessary. He stated that the department would
hire a project coordinator to undertake the project.
Co-Chair Torgerson wanted to know if this change in
regulation would require legislation and also if building
costs would rise.
Mr. Powell responded that he predicted the new code would
be "more friendly" to the industry. He referenced articles
attesting that the industry expects the building costs
would actually go down. He did not think new legislation
would be necessary and that the process could be done
through regulations.
Senator Adams maintained his objection to the funding
source.
A roll call was taken on the motion.
IN FAVOR: Senator Donley, Senator Leman, Senator Wilken,
Senator Green, Co-Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Phillips and Senator Adams
ABSENT: Senator P. Kelly
The motion PASSED (6-2-1)
The amendment was ADOPTED.
DPS #5: This amendment adds $600,000 general funds for the
Village Public Safety Officer (VPSO) Program BRU, Contracts
Component.
Senator Adams moved for adoption.
Co-Chair Torgerson objected.
Senator Adams expressed that this amendment would fund a 15
percent increase for VPSO salary and benefits. He spoke to
the problems with a high turnover and the need to
adequately compensate these peace officers. He emphasized
that these officers are paid so low that they are eligible
for welfare programs. He stated that this amendment allows
VPSO officers to be paid as much as school bus drivers.
Co-Chair Parnell related that he and Senator Adams have had
numerous discussions on the matter and both agreed VPSO
officers should be paid more. However, he stressed, the
state pays nonprofit organizations to administer this
program and each of these organizations withhold a
different amount of funds for overhead costs. He mentioned
legislation offered the previous year that attempted to
even out the allowable administrative costs under these
contracts. Because that legislation had not yet passed and
because the program operates from general funds, he said
that he would oppose this amendment.
Senator Adams agreed with Co-Chair Parnell's comments that
the state should standardize overall costs between all the
non-profit organizations. He stressed that this amendment,
however, directs funds directly to the VPSOs with none
allocated to administration costs.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Green, Senator Phillips, Senator Donley,
Senator Leman, Senator Wilken and Co-Chair Parnell
ABSENT: Senator P. Kelly and Co-Chair Torgerson
The motion FAILED (1-6-2)
The amendment FAILED to be adopted.
DPS #6: This amendment adds $100,000 Permanent Fund
Dividend Funds (PFDF) for the Council on Domestic Violence
and Sexual Assault.
This amendment was NOT OFFERED based on action taken on DPS
#2.
DPS #7: This amendment appropriates additional general
funds to the Division of Fish and Wildlife. The enforcement
component receives $141,500 to offset a shortfall in fish
and game fund receipts; the aircraft component receives
$148,300 to fund mechanic and risk management costs; and
the marine enforcement component receives $8,200 for risk
management costs.
Senator Adams proposed an amendment to the amendment that
eliminates the aircraft and marine enforcement components
and replaces the $70,500 general funds for enforcement with
the same amount of fish and game receipt funds.
This amendment was HELD, pending action on DPS #1, and
ultimately was NOT OFFERED.
DPS #8: This amendment makes the following changes to the
committee substitute.
Restore Department of Public Safety Budget Structure
Appropriation General Other
Allocation Items Funds Funds
Page 24, lines 18-23
Delete:
Alaska State Trooper 25,194,100 24,995,500 198,600
Detachments
Payroll & Benefits
Alaska State Trooper 8,142,600 7,866,300 276,300
Detachments
Operations
Alaska State Trooper 136,500 136,500
Detachments-Petersburg
Insert:
Alaska State Trooper 33,473,200 32,998,300 474,900
Detachments
Page 25, line 12
Delete:
Laboratory Services 2,347,100 2,203,800 143,300
Insert:
Statewide Support/ 2,347,100 2,203,800 143,300
Laboratory Services
Senator Adams moved for adoption.
Senator Donley objected.
Senator Adams stated that in action taken on DPS #2, two
BRUs were merged when actually three should have been
merged to include the Petersburg Detachment. He spoke to
the problems with individualizing the State Troopers. He
warned there would be a confusing budget structure.
Senator Adams noted the second portion of the amendment
addresses laboratory services saying the amendment funds
the day to day operations.
Senator Donley countered that the department has a great
deal of flexibility. He stressed that the Petersburg
component was new in the previous year's budget. He also
pointed out that the budget increases funding for the crime
lab and provides the full amount requested by the governor.
He stated he supported the budget the way it existed.
Senator Adams supported the increased funding provided for
the laboratory, but stressed that a separate BRU was
needed. He continued that the addition of a trooper
stationed in Petersburg was appreciated but that it did not
have to be singled out in its own BRU.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Leman, Senator Wilken, Senator Green,
Senator Phillips, Senator P. Kelly and Co-Chair Parnell
ABSENT: Senator P. Kelly and Co-Chair Torgerson
The motion FAILED (1-6-2)
The amendment FAILED to be adopted.
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
CED #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, line 18
Delete:
Community Assistance 14,718,000 9,795,300 4,922,700
& Economic Development
Insert:
Community Assistance 10,068,000 5,145,350 4,922,650
& Economic Development
Page 4, lines 24 and 25
Delete:
Qualified 4,650,000
Trade Association
Contract
Insert:
Qualified Trade 4,650,000 4,600,000 50,000
Association
Qualified 4,650,000
Trade Association
Contract
Senator Green moved for adoption on behalf of Co-Chair
Parnell.
Senator Adams objected.
Co-Chair Parnell explained the amendment creates a new
appropriation for the Qualified Trade Association
contracting rather than including it in the same BRU with
the division. He wanted to set the program up for self-
sufficiency. He noted there was no reduction to the current
funding amount.
Senator Adams referred to legislation sponsored by Senator
Mackie the previous year, that stipulates all tourism
companies, whether small or large, would be equally
treated. Senator Adams understood that a certain percentage
of expenditures would be spent on tourism planning and
development programs. He noted that the amount of funding
increased from $4.2 million to $4.6 million. He understood
that the directive was to facilitate tourism development in
concert with small communities. He asked if this amendment
affected the legislation adopted the previous year.
Co-Chair Parnell responded that the amount of funding does
not change with this amendment. He referred to the fiscal
note accompanying the aforementioned bill, saying that the
funding in this budget reflects the amount approved in the
fiscal note. He suggested that if Senator Adams did not
think the department would carry out the intent of the
legislation, he should offer an amendment to give a
directive. However, Co-Chair Parnell thought this was a
separate issue than the BRU component.
Senator Adams asked if the co-chair would be willing to
accept an amendment to add $433,000 in the Community and
Business Development component to address the tourism
planning and development program.
Co-Chair Parnell directed the discussion to the amendment
before the Committee and said he would consider a separate
amendment if Senator Adams chose to submit one.
Senator Green commented that the rural tourism planners do
not change under this amendment.
Senator Adams removed his objection saying he would like
the Committee to revisit the issue at a later time.
The amendment was ADOPTED without objection.
[The following amendments were taken out of order.]
CED #8: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, following line 25
Insert:
Alaska Film Office 100,000 100,000
Page 21, lines 4-7
Delete:
Oil & Gas Litigation 5,080,500 3,603,500 1,477,000
& Legal Services
Oil & Gas 4,784,800
Litigation
Oil & Gas 295,700
Legal Services
Page 21, lines 4-7
Delete:
Oil & Gas Litigation 4,980,500 3,503,500 1,477,000
& Legal Services
Oil & Gas 4,684,800
Litigation
Oil & Gas 295,700
Legal Services
Senator Donley moved for adoption.
Co-Chair Parnell objected for an explanation.
Senator Donley explained this amendment moves $100,000 from
the Oil and Gas Litigation component and uses the funds for
the recreation of the Alaskan Film Office, which was
eliminated several years prior. He noted the film office's
funding level would be lower than previous amounts, but
would have adequate funds to become operational. He spoke
to the success of the office in creating jobs saying he
thought the department should reinstate the program.
Senator Green understood that the subcommittee determined
that the services previously provided by the film office
were still provided elsewhere in the department under a
different funding component.
Senator Adams objected because although he thought the film
office was needed, he did not think the money should be
taken from the oil and gas litigation fund. He reiterated
the importance of the state's oversight in the oil company
mergers and did not think the Department of Law could
perform those functions without this funding.
A roll call was taken on the motion.
IN FAVOR: Senator Donley
OPPOSED: Senator Adams, Senator Wilken, Senator Green,
Senator Phillips Senator Leman and Co-Chair Parnell
ABSENT: Senator P. Kelly and Co-Chair Torgerson
The motion FAILED (1-6-2)
The amendment FAILED to be adopted.
CED #9: This amendment inserts $1,163,800 general funds for
the Senior Citizens and Disabled Tax Relief BRU. Language
accompanying the amendment states, "Adds funding for this
program at FY 96 levels. Program has not been funded in
last four fiscal years."
This amendment was held and ultimately NOT OFFERED.
CED #10: This amendment inserts $1,534,000 general funds
for the State Revenue Sharing component, and $1,866,000
general funds for the Municipal Assistance component of the
Municipal Revenue Sharing BRU.
This amendment was held and ultimately NOT OFFERED.
CED #11: This amendment adds $100,000 general funds for the
Community Assistance and Economic Development BRU,
International Trade and Development component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams referred to findings in the missions and
measures statement prepared for the department that
emphasize the importance for Alaska to develop
international trade relationships. He asserted that Russia
is the next area to tap international trade resources and
that the state should maintain a presence in that country.
He said this amendment restores funding for the state's
only trade specialist responsible for the Russian Far East
and Canada region. He spoke to the many Alaska businesses
involved in the future Russian gold mine.
Co-Chair Parnell noted that the House of Representatives
provided virtually no funding for this component in it's
version of the budget. However, he added that the Senate
Finance Committee substitute includes all but $100,000 of
the amount requested by the governor. He asked if this
amendment attempts to restore the remaining amount.
Senator Adams affirmed.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Green, Senator Phillips, Senator Donley,
Senator Leman, Senator Wilken and Co-Chair Parnell
ABSENT: Senator P. Kelly and Co-Chair Torgerson
The motion FAILED (1-6-2)
The amendment FAILED to be adopted.
CED #12: This amendment adds $50,000 general funds for the
Banking, Securities and Corporations BRU, Banking,
Securities and Corporations component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams explained the amendment restores the
governor's requested increment that the department needs to
pursue enforcement actions to protect Alaskan's from
fraudulent securities sales. He asserted that the state has
an obligation to reinvest a reasonable amount of money into
regulations, given the substantial revenues the division
generates. He detailed that the division's FY 00 budget was
$1.7 million while the estimated revenues in that fiscal
year is $10 million. He pointed out that the division's
staffing level of 26 employees is the same as it was in
1982 but that the revenue increases are the result of
increased activity rather than from fees.
Senator Donley asked if the department doesn't charge the
fees to the facilities that are audited and therefore the
program pays for itself.
JEFF BUSH, Deputy Commissioner, Department of Community and
Economic Development, affirmed that the division pays for
itself and earns significantly more revenue. While the fees
had not risen, he stressed, the level of activity has
greatly increased. Therefore, he said, the program is
earning more money while the staff is at the same level.
Senator Donley stressed that the subcommittee intended the
programs be allowed to pay for themselves because the more
they spend the more they earn.
AT EASE 4:16 PM / 4:18 PM
Senator Green stated that the subcommittee maintains its
recommendation to keep the budget as it was.
Co-Chair Parnell noted there could be another opportunity
to use designated receipts in a bill.
Senator Donley felt the matter deserved discussion.
Co-Chair Parnell expressed that the question was not with
the program itself but with another bill that would clarify
appropriations to the program.
Tape: SFC - 00 #69, Side A 4:20 PM
[tape delay]
Co-Chair Torgerson said the intent of the aforementioned
bill was to eliminate the need to revisit the issue every
year. He noted the change was made in the language section
of the previous year's budget.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Phillips, Senator Donley, Senator Leman,
Senator Wilken, Senator Green, Co-Chair Torgerson and Co-
Chair Parnell
ABSENT: Senator P. Kelly
The motion FAILED (1-7-1)
The amendment FAILED to be adopted.
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 313(FIN) am
"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."
At ease 4:24 PM / 4:29 PM
Co-Chair Torgerson moved for adoption of HB 313, 1-
LS1305\G, as a workdraft.
There was no objection and the committee substitute was
ADOPTED.
At ease 4:30 PM / 9:39 PM
HB 312-APPROPRIATIONS: OPERATING BUDGET
(Continued)
DEPARTMENT OF ADMINISTRATION
ADM #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, line 8
Delete:
Motor Vehicles 8,502,600 8,467,700 34,900
Insert:
Motor Vehicles 8,702,600 8,667,700 34,900
Restores funding for DMV at FY 00 level.
This amendment deferred to ADM #1A and was NOT OFFERED.
ADM #1A: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, line 8
Delete:
Motor Vehicles 8,502,600 8,467,700 34,900
Insert:
Motor Vehicles 8,702,600 8,467,700 234,900
Restores funding for DMV at FY 00 level using $200,000
ILTF.
Senator Donley moved for adoption.
Senator Adams asked if the ILTF had sufficient funds to
cover this appropriation.
Co-Chair Parnell affirmed there was an adequate amount of
money.
The amendment was ADOPTED without objection.
ADM #2: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, line 8
Delete:
Motor Vehicles 8,502,600 8,467,700 34,900
Insert:
Motor Vehicles 8,702,600 8,667,700 34,900
Page 21, lines 4-7
Delete:
Oil & Gas Litigation 5,080,500 3,603,500 1,477,000
& Legal Services
Oil & Gas 4,784,800
Litigation
Oil & Gas 295,700
Legal Services
Insert
Oil & Gas 7,982,400 3,505,400 1,477,000
Litigation &
Legal Services
Oil & Gas 4,686,700
Litigation
Oil & Gas 295,700
Legal Services
Restores funding for DMV at FY 00 level.
This amendment was NOT OFFERED due to action taken on ADM
#1A.
ADM #3: This amendment adds $335,800 general funds for the
Legal and Advocacy Services BRU, Office of Public Advocacy
(OPA) component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams stated that the amendment restores the
associate attorney positions that act as guardians ad
litem. He stressed that the Anchorage office had
experienced a 37 percent increase in the first six months
of the current fiscal year. He noted that HB 375 mandated a
timeline to determine the placement of children at-risk,
which resulted in the increase. Without this amendment, he
predicted the caseload would climb to 200 abused children
per caseworker in Anchorage and Fairbanks. He surmised that
the agency would not be to blame but the legislators in
their failure to provide sufficient funds to handle the
caseload. He reminded that OPA's missions and measures
statement strives to provide permanent placement for
children at-risk. In order to meet this goal, he stated
that funds are needed.
Senator Wilken noted the FY 01 budget is approximately $8.9
million and that OPA has been funded at the FY 00 with an
increase of over $508,000. He said the remarks made by OPA
and the Public Defender's Agency (PDA) have concerned the
budget subcommittee and others in the legislature. He
relayed assurances he made to Department of Administration
Commissioner Bob Poe that he would work the agency if the
department formed a task force to investigate the
possibility of restructuring both the OPA and the PDA. He
stated that the recent report published by the Division of
Legislative Budget and Audit and recent procedural changes
made by the Department of Law would help the process. He
hoped that by the next session, the task force would
present to the legislature a resolution on how to fix the
agencies' problems.
Senator Adams stressed that the immediate problem was the
caseload increase. He asserted that a task force formed to
research the situation would not provide the needed relief.
He urged for the funds to be provided in this budget and
that the task force could then look into making changes to
avoid future problems.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Green, Senator Phillips, Senator Donley,
Senator Leman, Senator Wilken, Senator P. Kelly, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
ADM #4: This amendment adds $755,200 general funds for the
Legal and Advocacy Services BRU, Public Defender component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams shared that this amendment attempts to
address a serious under-funding and under-staffing of this
agency. He pointed out that the agency's caseload has
increased 47 percent from FY 88 to FY 97. He warned that
without this funding the agency would have to eliminate any
travel to remote court locations, the computerized legal
research would be curtailed, trials and hearings would be
delayed for lack of time and preparation. He added that PDA
attorneys would be forced to provide even more
uncompensated functions than they currently perform. He
noted Division of Legislative Budget and Audit reports that
found the agency was not adequately funded. He stressed the
constitutional mandate to provide legal representation to
poor defendants. He also referred to the missions and
measures legislation adopted by the Senate earlier in the
day stating that this money was necessary to allow the
agency to accomplish it's mission.
Senator Wilken responded that the budget reflected the FY
00 level of funding plus and additional $250,000 to account
for the increased caseload. He added that the
aforementioned OPA/PDA task force would address this matter
as well.
Senator Donley added that the audit was also highly
critical of the agency for not focusing on its mission, by
making extraneous losing arguments that could have been
avoided. Plus, he said the audit criticized the agency's
ratio of attorneys to staff, saying if there were fewer
attorneys the agency could provide better support and do
its job more efficiently.
Senator Adams pointed out that these types of problems
arise when an agency is under-funded.
Co-Chair Parnell stated, "when is an increase not enough of
an increase, that's the question here."
Senator Donley added there is also a matter of fairness
because the prosecutor's budget was not increased. He
suggested that if this amendment were caseload-driven, the
prosecutor's budget should be increased proportionally. He
asserted that the prosecutor's office is obligated by law
to prosecute crimes.
Senator Adams posed the question of whether the state is
not constitutionally mandated to provide legal
representation to Alaskan's who can not otherwise afford
it.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Phillips, Senator Donley, Senator Leman,
Senator Wilken, Senator P. Kelly, Senator Green, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
ADM #5: This amendment adds $130,000 general funds to the
Public Communications Services BRU, Public Broadcasting-
Radio component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
AT EASE 9:49 PM / 9:51 PM
Senator Adams stressed that many areas of the state are
only served by one radio station. He avowed that this
station does not only provide entertainment but also
important emergency information. He noted the high public
contribution to the service.
Senator Wilken stated that the funding reduction from the
previous year was very minor and that he had seen no
information that this would harm broadcasting to any
station. He added that the committee substitute recognizes
the efforts of public broadcasting stations to solicit
private funding. He noted that the committee substitute
restored some reductions made by the House of
Representative's version.
Senator Adams countered that every cent cut from this
program's budget has an affect on the stations because of
the "rolling effect" on federal funding.
Senator Wilken had no information to show any loss of
federal funding.
Co-Chair Parnell pointed out that a large public outcry on
this matter was a result of the more drastic cuts proposed
by the House Finance Committee. He shared Senator Wilken's
assessment that he had seen no evidence to show that public
broadcasting would be jeopardized.
ALISON ELGEE, Deputy Commissioner, Department of
Administration, stated that the Public Broadcasting
Commission had been meeting for the day to attempt to offer
budgetary suggestions. She said the Commission was
preparing a document that would detail the impact of the
reductions. She explained that the committee substitute's
proposed budget reduction over FY 00 would result in the
elimination to two grants to rural radio stations. She
qualified that it was not yet known which stations would be
effected. She told of the performance criteria that the
Commission was considering using for the selection of the
two stations that would be impacted. She said a grant to
the Anchorage station would also be reduced.
Senator Wilken stressed that he had asked about possible
impacts during the entire subcommittee process and found
the Commission uncooperative. He remained opposed to the
amendment.
Senator Adams noted the witness had just made a statement
that the reduction would in fact effect the program.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Donley, Senator Leman, Senator Wilken,
Senator P. Kelly, Senator Green, Senator Phillips, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
ADM #6: This amendment adds $450,000 general funds to the
Centralized Administrative Services BRU, Finance component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams noted this item does not seem to affect a
particular clientele but that the cost increase was due to
increased license fees charged for state accounting and
state payroll. He warned that without the appropriation,
agencies would be forced to make reductions elsewhere. He
reminded of the co-chair's earlier statement that the issue
needed to be carefully monitored.
Senator Wilken qualified that the $250,000 reduction to the
FY 00 funding level does affect some positions but that the
intent was to instruct the agency to manage its staff
better so this cost could be absorbed. He noted
approximately $80,000 is available to the Division of
Finance to counteract this reduction. He stated that it was
still a difficult reduction to make but is necessary to
meet budgetary goals.
Senator Adams suggested this reduction could result in a
delay in payments to vendors, and subsequent delays in
obtaining federal reimbursement in a timely manner.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly,
Senator Green, Senator Phillips, Senator Donley, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
ADM #7: This amendment adds $355,000 general funds/mental
health receipts for the Legal and Advocacy Services BRU,
Office of Public Advocacy component. This amendment applies
to HB 313, the Mental Health funds portion of the FY 01
budget.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams shared his intent to reduce caseloads. He
warned that failure to fund this increment would result in
the continued deterioration of the quality of guardian
services to those Alaskans who are mentally incapacitated
and elderly. He cited the caseload has increased from 29
per public guardian to 93 in the past 15 years. He referred
to the 1992 audit report that shows this is an on-going
problem.
Senator Wilken noted that the agency was funded at the FY
00 level, plus an additional $508,800.
Senator Adams appreciated the increase but noted that the
funding does not keep up with the caseload, which has risen
by nine percent a year.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,
Senator Phillips, Senator Donley, Senator Leman, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
UNIVERSITY OF ALASKA
UNIV #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 30, line 3
Delete:
University of 446,095,100 171,743,300 294,351,800
Alaska
Insert:
University of 498,254,800 171,743,300 326,511,500
Alaska
Page 30, line 6
Delete:
Statewide 21,206,400
Services
Insert:
Statewide 53,366,100
Services
Senator Leman moved for adoption and explained this
amendment gives authority to obtain additional federal
funds if they become available, as requested in the
University's budget proposal.
Senator Phillips asked how much money was entailed in this
amendment.
Senator Leman quoted, "$32,159,700."
Senator Phillips asked the total of federal funds in the
University of Alaska system.
[Conversation held out of range of audio recording
equipment.]
Co-Chair Parnell stated for the record that $63,434,200 is
the total amount of federal funds provided to the
University system in the FY 01 budget.
Without objection the amendment was ADOPTED.
UNIV #2: This amendment adds $16,900,000 general funds to
the Budget Reductions/Additions-Statewide component.
Explanatory language states, "This amendment funds the
increase in new operating funds to put the University on
track to respond to the needs of Alaskans as recommended by
the University of Alaska Board of Regents. The increase
will allow the continuation of program initiatives that the
University started this year."
Senator Wilken moved for adoption.
Co-Chair Parnell objected.
Senator Wilken expressed that the message of the University
has been "loud and clear" from across the state. He noted
that the mood in the state and the legislature has changed
in the past two to three years and is attributed to the
Board of Regents. This board, he said had the vision and
the courage to elect a leader that could provide energy to
the students and administration of the university and also
to the legislature.
Senator Wilken stated that this amendment fully funds the
$16.9 million request made by the board and University of
Alaska President Mark Hamilton. He encouraged members
support this amendment.
AT EASE 10:07 AM / 10:13 AM
Co-Chair Parnell noted a proposed amendment to the
amendment. This amendment to the amendment inserts two new
bill sections to read as follows.
Page 43, following line 3
Insert a new bill section to read:
Sec. 13. UNIVERSITY OF ALASKA. The unexpended and
unobligated balance on June 30, 2000, of the
appropriation made by Sec. 43, ch. 84, SLA 1999, page
23, line 30 (K-12 Support - $762,280,800), not to
exceed $6,565,600 is appropriated to the University of
Alaska for the fiscal year ending June 30, 2001.
Page 48, following line 22
Insert a new bill section to read:
Sec. 36. UNIVERSITY OF ALASKA. The sum of
$2,000,000 is appropriated as a return of capital from
corporate receipts of the student loan fund (AS
14.42.210) to the University of Alaska for operating
expenses for the fiscal year ending June 30, 2001.
Co-Chair Torgerson moved to amend UNIV #2 to include the
above language.
Senator Adams and Senator Phillips objected.
Co-Chair Parnell told the Committee this amendment to the
amendment replaces the $16.0 million allocation with
$8,565,600. He explained that $6,565,000 of that amount is
education lapse funds from the current year, and the
remaining $2 million is corporate receipts of the student
loan program.
Co-Chair Torgerson detailed the attachment to the amendment
to the amendment. [Copy on file.] He stated that the goal
of this amendment to the amendment is that the money is to
go directly into classroom instruction. He noted that the
portion of the $16.9 million request intended for labor
contract agreements is denied in this amendment. He added
that "inflation and non-discretionary needs" are not funded
either. What the amendment to the amendment does fund, he
continued is the essential core faculty in the three major
campuses of Fairbanks, Anchorage and Juneau, "ensuring
academic quality."
Senator Phillips opposed the amendment because it takes
away lapsed funds that had been allocated to K-12 education
when issues such as pupil transportation, debt retirement
and quality education could be addressed with these funds.
He also questioned the use of student loan program receipts
noting that the program was not only for students attending
schools in-state and that he felt students attending school
Outside should be concerned. He summarized that he would
prefer a different approach. He requested someone from
student loans address this amendment to the amendment.
There was no one present to speak on behalf of the student
loan program.
Co-Chair Parnell understood the student loan program
receipt funds to be a dividend and that the program itself
would in no way be effected.
Senator Phillips still had concerns with the other K-12
items that needed to be addressed. He also did not approve
of using some of the funds for salary increases.
Co-Chair Parnell stressed that none of the funding was
intended to go to the employee contracts. He emphasized
that all state employee contracts would be addressed
together.
Senator Phillips repeated his opposition to using K-12
money.
Senator Wilken said he struggled to find the glass half
full rather than half empty. He was appreciative of the
increase already allotted to the University. He agreed that
the employee contracts should be addressed separately. He
noted that this amendment funds all but $3 million of the
University's request, not including the contracts. He
wanted to work towards adoption of SB 289, relating to
vocational and technical education, which would provide a
funding source for the University. Considering the
opportunity to provide the remaining $3 million to the
University in SB 289, he supported the amendment to the
amendment before the Committee.
Senator Leman said it was fair to say that the legislature
funded money to meet an anticipated K-12 need, but stressed
that all of the funds were not needed. Therefore, he did
not think that the remaining money was obligated to K-12
just because it appropriated once.
Senator Leman continued that, while he supports the
University, he thought it needed to be held more
accountable. He wanted the University to redevelop its
arctic engineering program, to return it to world-class
status, and to improve its mineral engineering program as
well. He expressed that those two programs are part of what
makes the University of Alaska unique. He also wanted to
ensure that in one year, a relationship was established
with the business community. He wanted essential core
faculty identified, along with what they teach and their
credentials for accountability purposes. If those criteria
could be done, he would support this amendment.
Senator Phillips granted the K-12 enrollment had not grown,
but he felt this amendment was still a reappropriation. He
wanted the money to be spent to reduce the school debt. He
surmised this was an easy way to fix the debt situation. He
also spoke to the viability of future student loans.
Co-Chair Torgerson stated it was his intent to address
pupil transportation in separate legislation. Other
legislation would address public education funding as well,
he asserted.
Co-Chair Parnell noted the legislative process is an on-
going conversation. He asserted the increased appropriation
to the University is "a vote of confidence", and an
investment, in Alaska's future.
Senator Adams supported the original amendment and
partially agreed with Senator Phillips's argument. Senator
Adams advised that in one year, the same problem of funding
for K-12 education would be back before the Committee.
Tape: SFC - 00 #69, Side B 10:28 AM
Senator Adams suggested the lapse funds should be allocated
to either the Quality Schools program or the exit
examinations. He pointed out that the student loan funds,
comprising a portion of this amendment, had already been
allocated to different programs in the House of
Representatives' approved budget.
Senator Phillips restated his opinion that this amendment
is the wrong approach, that the funds belong to K-12
education, and that they should be spent to reduce the
school debt.
Co-Chair Torgerson understood that K-12 education was fully
funded with the foundation funding formula.
Co-Chair Parnell affirmed.
A roll call was taken on the motion.
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green,
Senator Donley, Senator Leman, Co-Chair Torgerson and Co-
Chair Parnell.
OPPOSED: Senator Adams and Senator Phillips
The motion PASSED (7-2)
The amendment was AMENDED.
Senator Phillips objected to the adoption of the amended
amendment.
A roll call was taken on the motion to adopt the amended
amendment.
IN FAVOR: Senator Leman, Senator Adams, Senator Wilken,
Senator P. Kelly, Senator Green, Senator Donley, Co-Chair
Torgerson and Co-Chair Parnell
OPPOSED: Senator Phillips
The motion PASSED (8-1)
The amended amendment was ADOPTED.
UNIV #3: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 30, lines 1-3
Delete:
University of 446,095,100 171,743,300 294,351,800
Alaska
Insert:
University of 464,890,300 171,017,500 293,872,800
Alaska
Page 30, line 15
Delete:
Bristol 1,204,800
Bay Campus
This amendment was NOT OFFERED.
UNIV #4: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 30, lines 1-3
Delete:
University of 446,095,100 171,743,300 294,351,800
Alaska
Insert:
University of 465,428,000 171,220,500 294,207,500
Alaska
Page 30, line 16
Delete:
Chukchi 667,100
Campus
This amendment was NOT OFFERED.
UNIV #5: This amendment adds $102,000 Mental Health Trust
Authority Authorized Receipts (MHTAAR) funds for the
University of Alaska Fairbanks Campus. Language
accompanying the amendment reads as follows. This amendment
also affects the committee substitute for HB 313.
"Mental Health Trust funds will start up a distance
delivery statewide, accredited Bachelor of Social Work
(BSW) degree program. The project would provide a
career education path for students, beginning with the
Rural Human Services certificate, progressing to a
Human Services Technology associate degree, and
culminating in a BSW.
This request for Mental Health Trust funds is the
first year of three years. The University proposes to
develop shared funding agreements with agencies
benefiting from the project to fund it beyond three
years."
Senator Leman moved for adoption.
Without objection or debate, the amendment was ADOPTED.
UNIV #6: This amendment adds $102,000 MHTAAR for the
University of Alaska Fairbanks Campus. Language
accompanying the amendment reads, "This is the first year
of a three year statewide distance delivery program for an
accredited Bachelor of Social Work."
This amendment was NOT OFFERED due to action taken on UNIV
#5.
UNIV #7: This amendment adds funds to the University of
Alaska Budget Reductions/Additions Systemwide component as
follows: $9,743,800 FF, $4,159,800 UA/DFASVC, $1,000,000
Sci/Tech, $3,000,000 UA/ICR, $14,256,100 Univ. Receipts.
Language accompanying the amendment states, "Allows the
University to receive and expend all non-general funds
requested in their original budget submission."
This amendment was NOT OFFERED due to its similarity to
UNIV #1.
UNIV #8: This amendment adds $11,796,600 general funds to
the University of Alaska, Budget Reductions/Additions
Systemwide component. Language accompanying the amendment
states, "Funds the University's request for a $16.9 million
increment minus the money included for salary increases."
Senator Adams commented that the matter of providing a
$16.9 million increase had already been discussed in this
meeting. He told the Committee he was preparing another
amendment to reflect the adoption of previous amendments,
which he said "short-changed the university by $3.1
million."
This amendment was NOT OFFERED.
UNIV #9: This amendment adds $16,957,700 general funds to
the University of Alaska Budget Reductions/Additions
Systemwide component.
This amendment was NOT OFFERED to defer to the anticipated
amendment discussed above.
AT EASE 10:35 PM / 10:39 PM
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
CED #3: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, lines 30-32
Delete:
Municipal Revenue 43,493,400 28,493,400 15,000,000
Sharing
State 12,855,200
Revenue Sharing
Municipal 15,638,200
Assistance
Insert:
Municipal Revenue 46,893,400 31,893,400 15,000,000
Sharing
State 14,389,200
Revenue Sharing
Municipal 17,504,200
Assistance
Restores funding for two programs to FY 00 level.
This amendment was NOT OFFERED.
CED #4: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, lines 30-32
Delete:
Municipal Revenue 43,493,400 28,493,400 15,000,000
Sharing
State 12,855,200
Revenue Sharing
Municipal 15,638,200
Assistance
Insert:
Municipal Revenue 62,840,100 47,840,100 15,000,000
Sharing
State 21,583,800
Revenue Sharing
Municipal 26,256,300
Assistance
Restores funding for two programs to FY 99 level.
This amendment was NOT OFFERED.
CED #5: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, lines 30-31
Delete:
Municipal Revenue 43,493,400 28,493,400 15,000,000
Sharing
Municipal 15,638,200
Assistance
Insert:
Municipal Revenue 46,893,400 31,893,400 15,000,000
Sharing
Municipal 19,038,200
Assistance
This amendment was NOT OFFERED.
CED #6: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 4, lines 30-32
Delete:
Municipal Revenue 43,493,400 28,493,400 15,000,000
Sharing
State 12,855,200
Revenue Sharing
Municipal 15,638,200
Assistance
Page 4, lines 30-32
Insert:
Municipal Revenue 46,893,400 31,893,400 15,000,000
Sharing
State 14,389,200
Revenue Sharing
Municipal 17,504,200
Assistance
Page 5, following line 3
Insert:
Senior Citizens & 1,163,800 1,163,800
Page 2, line 9, through page 31, and line 23
Insert:
"Notwithstanding the amounts otherwise set out in
this section, each appropriation made on page 2, line
9, through page 23, line 22, of this section and page
25, line 15, through page 31, line 23, of this section
is reduced by an amount equal to one percent of the
general funds allocated for personal services and for
travel under each of those appropriations. "General
funds" includes funds described as general fund,
general fund program receipts, general fund match, and
general fund mental health."
Senator Donley moved for adoption and explained this
amendment makes a one-percent, across-the-board personal
reduction in personal services and travel expenses with the
exclusion of the Department of Public Safety. He projected
this would save the state approximately $5.44 million; a
portion of which would then be utilized to restore
Municipal Assistance and Revenue Sharing funding to the FY
00 level. He added that this amendment also reinstates
reimbursement for the Senior Citizens and Disabled Tax
Relief at the FY 96 funding level; the last year the
program was funded. He shared that after these expenses, a
net saving of $913,200 would be realized.
Co-Chair Parnell objected and expressed that this amendment
would imply that municipal assistance is more important
than 24-hour emergency facilities. He warned that
unallocated reductions should be carefully targeted and
that this proposal was too broad.
Senator Donley argued this was only a one-percent reduction
and would not affect the Department of Public Safety. While
it would affect other 24-hour facilities, he predicted the
reduction could be absorbed. He said this amendment was to
assist with an unfunded mandate to municipalities caused by
the elimination of the Senior Citizens and Disabled Tax
Relief.
Senator Adams supported the concept of an increase to
revenue sharing and municipal assistance but he had
concerns about the unallocated reduction. He suggested COR
#9, which solves the matter.
A roll call was taken on the motion.
IN FAVOR: Senator Donley
OPPOSED: Senator Wilken, Senator Wilken, Senator P. Kelly,
Senator Green, Senator Phillips, Senator Leman, Co-Chair
Torgerson and Co-Chair Parnell
The motion FAILED (1-8)
The amendment FAILED to be adopted.
AT EASE 10:44 PM / 10:49 PM
DEPARTMENT OF LAW
LAW #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 21, lines 4-7
Delete:
Oil & Gas Litigation 5,080,500 3,603,500 1,477,000
& Legal Services
Oil & Gas 4,784,800
Litigation
Oil & Gas 295,700
Legal Services
Insert
Oil & Gas Litigation 4,830,500 3,353,500 1,477,000
& Legal Services
Oil & Gas 4,534,800
Litigation
Oil & Gas 295,700
Legal Services
Page 20, line 8
Delete:
Criminal Division 14,124,800 12,562,800 1,562,000
Insert:
Criminal Division 14,374,800 12,812,800 1,562,000
Adds $250,000 for Criminal Division BRU from Oil and
Gas Litigation. Net zero increase.
Senator Donley moved for adoption and expressed that this
amendment attempts to maintain a balance in the criminal
justice system by giving prosecutors equal incremental
increases as the PDA. He stated that he chaired the budget
subcommittee for this department and shared conversations
between the subcommittee and the department whereby the
department was asked what program could best absorb
reductions. He said the department testified that the Oil
and Gas Litigation section was given as that area.
Senator Donley expressed that since funding was increased
for the PDA, the prosecutor's office should be increased as
well. He asserted that the prosecutor's office has the same
ethical responsibilities as the PDA.
Senator Donley made a technical amendment to direct the
Division of Legislative Finance to conform language where
necessary and moved for adoption.
Senator Adams objected and spoke to the need to maintain
funding for the Oil and Gas Litigation efforts. He also
noted that over time, the PDA and the OPA have received
larger budget reductions than the prosecutor's office.
Senator Donley interjected that those agencies were never
cut.
Senator Adams resumed stating that the matter needed to be
investigated to learn whether the PDA, the OPA and the
prosecutor's offices were equally balanced.
Senator Donley said he did not include this increase in the
subcommittee recommendation because he was unaware there
would be such a large funding increase to the PDA. He
disagreed that the PDA and OPA' budgets had ever been
reduced, asserting that in some years, those offices had
actually received increases.
Senator Adams requested the Division of Legislative Finance
research the history of funding for the two offices.
Senator Donley said he had that information available and
would share it with Senator Adams.
A roll call was taken on the motion.
IN FAVOR: Senator P. Kelly, Senator Green, Senator
Phillips, Senator Donley, Senator Leman, Senator Wilken,
Co-Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Adams
The motion PASSED (8-1)
The amendment was ADOPTED.
ADJOURNED
Senator Parnell adjourned the meeting at 10:54 PM.
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