Legislature(1999 - 2000)
03/30/2000 09:57 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 30, 2000
9:57 AM
TAPES
SFC-00 # 70, Side A and Side B
# 71, Side A and Side B
CALL TO ORDER
Co-Chair Sean Parnell convened the meeting at approximately
9:57 AM
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,
Senator Al Adams, Senator Dave Donley, Senator Lyda Green,
Senator Pete Kelly, Senator Loren Leman, Senator Randy
Phillips, Senator Gary Wilken
Also Attending: KAREN REHFELD, Director, Education Support
Services, Department of Education and Early Development;
JANET CLARKE, Director, Division of Administrative
Services, Department of Health and Social Services; DAVE
BLAISDELL, Staff to Co-Chair Parnell; JEFF BUSH, Deputy
Commissioner, Department of Community and Economic
Development; DWAYNE PEEPLES, Director, Division of
Administrative Services, Department of Corrections; KATHRYN
DAUGHTEE, Director, Division of Administrative Services,
Department of Law
SUMMARY INFORMATION
HB 312-APPROPRIATIONS: OPERATING BUDGET
The Committee continued its consideration of amendments.
The bill was held.
HB 313-APPROPRIATIONS: MENTAL HEALTH
The Committee continued its consideration of amendments.
The bill was held.
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."
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 the previous hearing, the Committee considered
amendments to these bills. This meeting is a continuation.
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
EED #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 8, line 13
Delete:
Pupil 39,775,100 37,775,000
Transportation
Insert:
Pupil 44,855,000 44,855,000
Transportation
Page 2, line 9 through 31, 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.
Provides for 100% reimbursement of approved projected
transportation costs for both district-operated and
contracted bus routes.
Senator Donley moved for adoption and explained that this
amendment would fully fund pupil transportation expenses.
He pointed out that a one-percent, across the board
reduction to personnel and travel budgets for all state
agencies, with the exception of the Department of Public
Safety, would fund this item.
Co-Chair Parnell objected to the amendment.
Co-Chair Torgerson restated his intent to deal with pupil
transportation with separate legislation, SB 290, that was
pending in the Committee. He stated that this bill should
be before the Senate at same time as the FY 01 Operating
Budget.
Senator Green commented that the aforementioned bill would
need a lot of review before she could support it. She
clarified that she did support some type of action, but
wanted to be sure it was the most appropriate approach.
A roll call was taken on the motion to adopt the amendment.
IN FAVOR: Senator Donley and Senator Adams
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,
Senator Leman, Co-Chair Torgerson and Co-Chair Parnell
ABSENT: Senator Phillips
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
AT EASE 10:00 AM / 10:01 AM
EED #2: This amendment adds $1 million Temporary Assistance
for Needy Families (TANF) funds for the Early Development
Budget Request Unit (BRU), Headstart component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams spoke to an amendment to the amendment that
reappropriates $1 million TANF funds to the Public
Assistance Administration BRU, Child Care Benefits
component, and appropriates $1 million Interagency Receipts
(I/A) to the Early Development BRU, Headstart component. He
extolled the benefits of the Headstart program, saying that
this $1 million appropriation would secure $4 million in
federal funding, which would allow 200 additional children
to participate in the program.
Senator Adams offered a motion to amend the amendment.
There was no objection and the amendment was AMENDED.
Senator Wilken expressed that Headstart and childcare were
important issues to the State Of Alaska and to the
Committee. He hoped that the Committee would recognize that
Headstart was already funded with almost $28 million and
had sufficient funding. He felt that the requested increase
should go to those programs that directly affect as many
children in the state as possible. The budget, proposed in
the committee substitute, accomplished this, he stated and
he therefore recommended it not be changed.
Senator Leman calculated that the $5 million total funding
increase worked out to a cost of $25,000 for each
additional student admitted to the program. He wondered if
that figure was an error, as it seemed high to him.
Senator Adams stated that Senator Leman' calculations were
correct and offered a representative from the Department of
Education and Early Development to give details.
KAREN REHFELD, Director, Education Support Services,
Department of Education and Early Development, explained
the matching requirements to receive the federal funds. She
was uncertain if this amendment would guarantee receipt of
the entire $4 million federal funds.
Senator Leman asked the cost for each student.
Ms. Rehfeld did not have exact figures but noted that
currently Headstart serves 3,400 students statewide. She
stated that the costs probably vary by location.
Senator Wilken cited the Alaska Headstart Program
statistics. In 1999, he read, there were 3,351 children
served at a total cost of approximately $29 million. He
divided these numbers to reach a cost of $8,500 per
participant.
Senator Adams asked if the current Headstart program served
only 23 percent of the eligible families in the state.
Ms. Rehfeld affirmed this was correct.
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.
EED #3: This amendment inserts $1,800,000 TANF funds for
the Early Development BRU, Child Care Assistance and
Licensing component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams commented that although the subcommittee was
limited in how much could be allocated to this component,
the existing budget only funds the existing caseload and
the anticipated care for those families coming off of
public assistance. He stressed that the program has a
waiting list of 1,200 children that would rise to 2,200
under the peak job market. He spoke of the families
excluded from this program because they do not receive
public assistance. He recounted testimony given by a single
mother, who had a job offer, but was unable to accept it
because of the need for childcare assistance. He expressed
that the system is "backwards" and that anyone wishing to
continue work should receive help with daycare expenses
without first entering the welfare system.
Senator Wilken moved to amend the amendment to add a total
of $1,821,700 to the Child Care Assistance and Licensing
component as detailed in EED #3B that reads as follows.
Appropriation General Other
Allocation Items Funds Funds
HB 312
Page 8, line 26
Delete:
Child Care 65,920,300 8,396,600 57,523,700
Assistance & Licensing
Insert:
Child Care 66,386,300 8,862,600 57,523,700
Assistance & Licensing
Page 8, line 28
Delete:
Child Care 29,148,600
Assistance &
Licensing
Insert:
Child Care 29,614,600
Assistance &
Licensing
General Funds saved from a fund source change in State
Health Services is appropriated for Child Care
Assistance and Licensing operations.
Add new bill sections to read:
Sec.__. The unexpended and unobligated balance on
June 30, 2000, of the appropriation made by sec. 43,
ch. 84, SLA 1999, page 23, line 21 (Out-of-State
Contracts), not to exceed $355,700 is appropriated to
the Department of Education and Early Development for
operation of the childcare assistance and licensing
for the fiscal year ending June 30, 2001.
Sec.__. The unexpended and unobligated balance of
general funds of the appropriation made in sec. 77
(b), ch2, FSSLA 1999 is reappropriated to the
Department of Education and Early Development, child
care assistance and licensing for the fiscal year
ending June 30, 2001.
Add immediate effective dates for new sections.
Appropriation General Other
Allocation Items Funds Funds
HB 313
Page 4, line 32
Delete:
State Health 4,637,700 4,419,700 220,000
Services
Insert:
State Health 4,637,700 3,953,700 686,000
Services
Page 5, line 4
Delete:
Healthy 566,000
Families
Insert:
Healthy 566,000
Families
GF/MH funds in the Healthy Families component are
replaced with I/A Receipts from the federal TANF block
grant.
Senator Adams perceived a technical problem with the
unexpended and unobligated balance portion of this
amendment to the amendment and asked that the department
address this. He applauded the intent and stated that he
wanted this to "work".
Senator Wilken reviewed the impact to the income qualified
childcare subsidy if this amendment to the amendment
passed. He noted that this adds $4.178 million to the
subsidy, which will maintain status quo and fund the
anticipated increases in the FY 01 budget. He continued
pointing out that the $22 grants to licensed daycare
centers is raised to $33 per student at a cost of
approximately $917,000. He emphasized that to qualify for
the grant, a daycare center must be licensed by the
department and that this amendment appropriates $700,000 to
enable the department to license these centers. He opined
that this "drives quality." He summarized that this adds
$5,795,000 to the daycare effort and recognizes this
legislature's understanding of daycare and how it fits into
the welfare system and society as a whole. He encouraged
support of the amendment to the amendment.
Senator Green asked for information on how many additional
clients would be served with this increase.
Senator Wilken clarified that this amendment funds 80
percent of the waitlist in addition to existing clients and
anticipated increases from those leaving public assistance.
He noted that the woman, whose testimony Senator Adams
referred to, would be served and thus able to accept the
job offer.
Senator Adams stressed that all Committee members wanted
this program to work and requested that the department
address difficulties with the funding source methodology.
Ms. Rehfeld explained how the legislature, in the previous
year, had included this reappropriation of approximately $1
million of general funds with funding for the Balloon
Project within the Department of Health and Social
Services.
Senator Adams asked if the Department of Health and Social
Services had begun to expend this money.
Co-Chair Parnell
Senator Phillips asked why the $1 million was not spent on
the Balloon Project the previous year when it was
appropriated.
JANET CLARKE, Director, Division of Administrative
Services, Department of Health and Social Services
responded that in the previous year, the department
transferred TANF funds into the FY 99 budget, which freed
up over $2 million general funds. This excess money, she
continued was reappropriated to the Balloon Project for a
two-year, one-time project. The purpose she said was that
rather than adding permanent workers, 14 social workers
would be employed in the first year, seven in the second
year, and in the third year attorney positions would be
funded to place children out of foster care. She stated
that this was done at the request of the Department of
Health and Social Services. She reminded the Committee that
although the legislature approved of this plan, it required
the department to prove the success of the program before
approving funding for the second year. Therefore, she
explained the funds were not spent because the legislature
directed the department to not spend it until receiving
approval. She reported that the agency was able to double
the number of adoptions and also found that many children
were able to return to their homes. As a result, she
expressed that the entire amount of funding for the Balloon
Project was no longer needed.
Co-Chair Parnell surmised that the amendment and the
amendment to it needed adjustments.
Senator Wilken moved to remove his motion to amend the
amendment. There was no objection and the motion was
WITHDRAWN.
Without objection, Senator Adams WITHDREW his motion to
adopt the amendment and the amendment was HELD.
EED #4: This amendment inserts $3,609,400 general funds to
the Pupil Transportation BRU, Pupil Transportation
component. Language accompanying the amendment states,
"This proposal equates to FY 00 funding plus half of the FY
01 requested increase."
This amendment was NOT OFFERED due to the statement made by
Co-Chair Torgerson with regard to SB 290 that would fund
this item.
AT EASE 10:20 AM / 10:23 AM
EED #5: This amendment inserts a new bill section on page
43, following line 3 of the committee substitute as
follows.
Sec. 13. Learning Opportunity Grants. 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),
is appropriated to the Department of Education and
Early Development for the fiscal year ending June 30,
2001, for Learning Opportunity Grants as a component
of public school funding. A district is eligible to
receive a Learning Opportunity Grant not to exceed the
district's ADM multiplied by $43.75. Learning
Opportunity Funding Grants must by used for
supplemental student instructional programs intended
to improve student performance on the high school
graduation examination or benchmark examinations. The
department shall by regulation establish a grant
process to implement this section. [T]he fiscal year
ending June 30, 2001.
Co-Chair Torgerson moved for adoption.
Senator Green objected.
Co-Chair Torgerson moved to make a technical correction to
remove the final sentence of the amendment saying it was
duplication of language contained earlier in the section.
Co-Chair Parnell reminded that the Division of Legislative
Finance and the Division of Legal and Research Services had
blanket authority to make conforming changes where
necessary.
Co-Chair Torgerson explained that this amendment gives
authorization for the expenditure of $5,787,100 by the
department for learning opportunity grants. He noted that
the funds were lapsed from the previous fiscal year and
were not needed to fund K-12 education as originally
appropriated. He referenced an attachment to the amendment
that explained the learning opportunity grants. [Copy on
file.] He added that the amendment gives the department
authority to establish regulations to implement the
legislature's intent.
Senator Wilken explained the learning opportunity grants
and the legislature's attempt to ensure that K-12 teaching
professional are focused on HB 146, passed into law three
years prior. This legislation requires high school
students, beginning in 2002, to pass an exit exam before
receiving a diploma. He stressed that the students need to
be ready for that test and that this money should go
directly to the classrooms in recognition of the importance
of the exams. He emphasized how the funds are targeted to
ensuring the readiness of K-12 students and that this
amendment requires evaluations of the progress toward this
goal. He stated that he supported the amendment.
Senator Phillips wanted to know the balance of the lapsed
K-12 education appropriation if this amendment were
approved.
Co-Chair Parnell responded this would fully expend the
funds.
Senator Green endorsed the concept of directing money to
the classroom but was not in favor of establishing a grant
method. She wanted to avoid a "paper mill" requirement of
school districts to qualify for these funds. She suggested
appropriating the funds to schools along with instructions
on how they should be spent.
Senator Leman stated he would also oppose the amendment
saying the foundation formula program should instead be
operated to cover these needs. He surmised that this
amendment rewards those districts that do a poor job.
AT EASE 10:28 AM / 10:37 AM
Senator Green offered a conceptual amendment to the
amendment to replace "grant" with "bonus" in the five
places it appears in the amendment.
[This language is titled EED #5A and is contained in the
bill file.]
Co-Chair Torgerson objected saying it
[Tape malfunction - poor quality recording]
A roll call was taken on the motion.
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green,
Co-Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Phillips, Senator Donley, Senator Leman,
and Senator Adams
The motion FAILED (4-5)
The amendment FAILED to be amended to reflect the language
in EED #5A.
Co-Chair Torgerson asked Ms. Rehfeld to explain what the
administrative costs would be in implementing these grants.
Ms. Rehfeld responded that the intention of this proposed
one-time program would not change the established public
school funding program. She continued that the department
would be able to administer this grant program similar to
the Quality Schools Grant application process that
districts already prepare annually. She predicted that the
learning opportunity grants could be incorporated into the
existing process without additional administrative costs.
Her only concern was the potential cost of developing new
regulations, but thought that because this was a one-time
program, extensive changes might not be necessary.
Senator Phillips asked the current percent of funds spent
on administration.
Ms. Rehfeld replied that currently no administrative
overhead costs are charged to the foundation formula for
administrating the Quality Schools Grant program.
Senator Phillips then wanted to know if there would be any
administration costs at the school district level.
Ms. Rehfeld anticipated that if the two grants were
operated together, there would be no additional
administrative costs.
Senator Wilken suggested removing the last sentence of the
amendment to the amendment that states, "The department
shall by regulation establish a grant process to implement
this section."
Co-Chair Torgerson understood that regulations must be in
place before any new program could be implemented. He
recommended the department amend the regulations governing
the Quality Schools Grant program to include the Learning
Opportunity Grants program. He did not intend to require
the department to undergo the lengthy process of adopting
an entirely new set of regulations for this one-time
disbursal.
AT EASE 10:44 AM / 10:44 AM
Senator Wilken clarified information contained in the
attachment to the amendment. He noted that the total amount
of the grant would be $43.75 per the district's Average
Daily Membership.
A roll call was taken on the motion to adopt the amendment.
IN FAVOR: Senator Phillips, Senator Donley, Senator Adams,
Senator Wilken, Senator P. Kelly, Co-Chair Torgerson and
Co-Chair Parnell
OPPOSED: Senator Green and Senator Leman
The motion PASSED (7-2)
The amendment as technically amended was ADOPTED.
AT EASE 10:47 AM
DEPARTMENT OF PUBLIC SAFETY
DPS #2A: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 23, lines 26 and 27
Delete:
Fish & Wildlife 16,124,000 14,771,800 1,352,200
Protection
Enforcement 11,140,500
& Investigative
Services Office
Insert:
Fish & Wildlife 16,124,500 14,843,300 1,422,200
Protection
Enforcement 11,282,000
& Investigative
Services Office
Page 24, lines 31 and 32
Delete:
Council on Domestic 8,957,800 2,819,100 6,138,700
Violence & Sexual
Assault
Insert:
Council on Domestic 9,287,800 1,869,800 7,418,000
Violence & Sexual
Assault
Page 25, line 14
Delete:
Victims for 200,000 200,000
Justice
Insert:
Victims for 246,000 246,000
Justice
The net effect is to provide additional funds to the
Council on Domestic Violence and Sexual Assault
($300.0 PFD felons funds), and Victims for Justice
($46.0 GF). Additionally, the increment will fund a
Fish and Wildlife protection officer for the Division
of Fish and Wildlife Protection ($71.5 GF and $70.0
Fish and Game Fund). The amendment replaces general
funds with PFD felons funds ($949.3).
Senator Donley moved for adoption and pointed out that the
funds allocated to the Council and the Victim's for Justice
organization would allow additional outreach in rural areas
with the state as well as working to prevent murders during
robberies.
Senator Adams supported the amendment. However, he noted an
error was made the previous year in the budget and asked it
this amendment corrects that.
Co-Chair Parnell answered that it does.
Senator Phillips wanted to know if this goes to Victims for
Justice or just new state positions.
Co-Chair Parnell replied that these funds go directly to
the programs and would not be used for any new state
positions.
Senator Phillips asked if there was a need for both the
Council and the Victim's for Justice organization, wanting
to know if they could be combined into one organization.
Senator Donley explained that the Council satisfies a
federal mandate of providing a council forum to address
issues specific to domestic violence and sexual assault. He
continued that Victim's for Justice, on the other hand,
satisfies a different mandate to serve all victims of
crime.
Co-Chair Parnell clarified that the Division of Fish and
Wildlife Protection is able to take advantage of general
funs that are freed up from using PFD felon funds for the
Council.
Senator Green affirmed.
Co-Chair Parnell pointed out that this amendment results in
a reduction of general funds.
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Donley, Senator Adams,
Senator Wilken, Co-Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Phillips, Senator Leman and Senator P.
Kelly
The motion PASSED (6-3)
The amendment as technically amended was ADOPTED.
DPS #6: This amendment inserts $100,000,000 Permanent Fund
Dividend Funds (PFDF) for the Council on Domestic Violence
and Sexual Assault BRU.
This amendment was NOT OFFERED.
DPS #2: It was clarified that this amendment utilizes fish
and game duplicated funds, rather than fish and game funds.
There was no objection to this clarification.
Senator Adams and Co-Chair Parnell established that this
amendment accomplishes the goal of the proposed amendment
to DPS #7.
[End tape malfunction.]
Tape: SFC - 00 #70, Side B 11:01 AM
AT EASE 11:01 AM / 3:36 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
DOT #6: This amendment was considered in the previous
hearing, but failed to be adopted.
Senator Wilken moved to rescind the Committee's action
failing to adopt the amendment. There was no objection and
the action was RESCINDED. The amendment was back before the
Committee.
Senator Wilken move to amend the amendment replacing the
language with the language contained in DOT #6A. This
language reads as follows.
The unexpended and unobligated balance of June 30,
2000, of the appropriation made by sec. 43, ch. 84,
SLA 1999, page 23, line 21 (Out-of-State Contracts),
not to exceed $31,300 is appropriated to the
Department of Transportation and Public Facilities,
Northern Region Highways and Aviation for operations
for the fiscal year ending June 30, 2001.
Explanation
This is an increase of $31,300.
The increased appropriation is for plowing open the
following roads during the spring of 2001:
$10,500 Boundary Spur
5,800 Fairbanks area roads: US Creek, Fairbanks
Creek, Tofty, Eureka
15,000 Copper River Road.
Senator Wilken explained the funding was originally
appropriated to the Department of Corrections to fund
contracts with facilities outside of the state to house
inmates. He stated that all of the funds were not needed
and the remaining amount was available for the snow removal
operations.
Senator Phillips objected.
There was no debate.
A roll call was taken on the motion to amend the amendment.
IN FAVOR: Senator Adams, Senator Wilken, Senator Green,
Senator Leman, Co-Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Phillips
ABSENT: Senator P. Kelly and Senator Donley
The motion PASSED (6-1-2)
The amendment was AMENDED.
A roll call was taken on the motion to adopt the amendment
as amended.
IN FAVOR: Senator Leman, Senator Adams, Senator Wilken,
Senator Green, Co-Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Phillips
ABSENT: Senator Donley and Senator P. Kelly
The motion PASSED (6-1-2)
The amended amendment was ADOPTED.
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
EED #3: This amendment inserts $1,800,000 TANF to the Early
Development BRU, Component Care Assistance and Licensing
component.
A motion to adopt this amendment was offered and withdrawn
earlier in the meeting.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Co-Chair Parnell spoke to a proposed amendment to the
amendment.
At ease 3:40 PM / 3:48 PM
Co-Chair Parnell noted an error in the proposed amendment
to the amendment.
[A copy of this amendment to the amendment is on file and
titled EED #3A. It is identical to EED #3B except that the
amount allocated to Child Care Assistance and Licensing is
$29,641,600.]
Without objection, Senator Adams WITHDREW his motion to
adopt the amendment.
LANGUAGE SECTION
LANG #1: This amendment inserts new language on page 2,
line 9, through page 31, line 23 of the committee
substitute as follows.
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.
This amendment was NOT OFFERED.
LANG #2: This amendment inserts new language on page 2,
line 9, through page 31, line 23 of the committee
substitute as follows.
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 three 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.
This amendment was NOT OFFERED.
LANG #3: This amendment inserts new language on page 2,
line 9, through page 31, line 23 of the committee
substitute as follows.
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 two 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.
This amendment was NOT OFFERED.
LANG #4: This amendment inserts new language on page 2,
line 9, through page 31, line 23 of the committee
substitute as follows.
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 four 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.
This amendment was NOT OFFERED.
LANG #5: This amendment inserts new language on page 2,
line 9, through page 31, line 23 of the committee
substitute as follows.
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 five 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.
This amendment was NOT OFFERED.
LANG #8: This amendment pertains to the Department of
Community and Economic Development, Insurance Operations
BRU. New language is inserted on page 5, following line 31
of the committee substitute as follows.
The amount appropriated by this appropriation includes
the unexpended and unobligated balance on June 30,
2000, of the Department of Community and Economic
Development, division of insurance, general fund
program receipts from insurance fees under AS
21.06.250, and general fund program receipts from
insurance fees under AS 21.06.250 received during the
fiscal year ending June 30, 2001, and other program
receipts received by the division during the fiscal
year ending June 30, 2001.
(Several subcommittees took no formal action on
language adopted by the House. Per a survey of
subcommittee Chairs, subcommittees intended the
language in this amendment to be included in the
committee substitute bill.)
Co-Chair Torgerson moved for adoption.
Senator Adams objected for an explanation.
Co-Chair Parnell relayed that this language was
inadvertently omitted from the committee substitute
although it is standard to most operating budget bills
according to the subcommittee and the administration's
understanding.
Senator Adams removed his objection.
There was no objection and the amendment was ADOPTED.
LANG #9: This amendment pertains to the commissioner's
office of all departments and eliminates 403.5 positions
located in Anchorage. With an average salary plus benefits
of $48,793 for each position, the amendment estimates a
general fund reduction of $19,687,975,500.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams stressed that he is not opposed to Anchorage
and that he probably pays as much property tax as any other
person living in Anchorage, as his second home is located
there. However, he stated that the location of several
state positions has shifted to Anchorage, although these
positions have been essential to Rural Alaska and to
Juneau.
He expressed that the savings from this amendment would
fund the costs of the other amendments he has submitted to
the FY 01 operating budget to fund important state services
and programs.
Senator Adams surmised that the large budget cuts claimed
by the House of Representatives are actually just shifted
funds.
Senator Adams reiterated that this amendment was not
intended as an action against Anchorage but to provide an
opportunity to meet the self-interest groups and some of
the constituent's request to cut the state government's
budget. He stated that if any member wished to offer
position reductions from his or her district, he would be
willing to consider those reductions as well.
Senator Phillips asked what were the employment figures for
Juneau.
Senator Adams replied that in 1985, Juneau had 4,437 state
employees and in 1999, the number had dropped to 4,207.
Senator Phillips asked how many in state employees were in
Anchorage during those two sample years.
Senator Adams listed 6,890 employees in 1985 and 8,504
state employees at present. He said he utilized these
figures to compile the number of positions to be
eliminated, which equaled a 25 percent decrease in
Anchorage.
Senator Leman said he might be inclined to support this
amendment if he could be assured that the positions would
not show up elsewhere in the state. He asked if the
specific positions were identified.
Senator Adams responded that his intent is to direct the
Office of Management and Budget to choose the positions and
to also ensure that they are not recreated in other
communities.
Co-Chair Parnell reminded of his argument made the previous
day against Senator Donley's amendment for an unallocated
budget reduction that failed to recognize the importance of
24-hour facilities. He gave Pioneer's Homes and
correctional facilities as an example.
A roll call was taken on the motion.
IN FAVOR: Senator Phillips and Senator Adams
OPPOSED: Senator Green, Senator Leman, Senator Wilken,
Senator P. Kelly, Co-Chair Torgerson and Co-Chair Parnell
ABSENT: Senator Donley
The motion FAILED (2-6-1)
The amendment FAILED to be adopted. Senator Leman had
originally cast a Yea vote, but changed to Nay before the
final tally.
LANG #10: This amendment amends Section 4 as follows.
Sec 4. ALASKA OIL AND GAS CONSERVATION COMMISSION. The
unexpended and unobligated balance on June 30, 2002,
of the Alaska Oil and Gas Conservation Commission
receipts account for regulatory cost charges under AS
31.05.093 and permit fees under AS 31.05.090 for the
fiscal year 2000 is [APPROPRIATED] included in the
appropriation to the Alaska Oil and Gas Conservation
Commission [FOR FISCAL YEAR 2001 OPERATIONS] in
Section 1 of this Act.
New text underlined [DELETED TEXT BRACKETED]
Discussion:
This is a technical change to make clear that although
unspent fees collected by AOGCC are to be used in the
following year to reduce charges to industry, this
section does not increase the appropriation to AOGCC.
Co-Chair Torgerson moved for adoption.
Co-Chair Parnell explained the technical change as
suggested by the Administration.
Without objection or debate, the amendment was ADOPTED.
AT EASE 4:02 PM / 4:08 PM
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
CED #2: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 5, line 32
Delete:
Occupational 5,519,300 5,052,900 466,400
Licensing
Insert:
Occupational 4,519,300 4,052,900 466,400
Licensing
This amendment reduces the amount from general fund
program receipts by $1,000,000.
Page 45, following line 10
Insert a new bill section to read:
Sec. 23. Section 18, ch. 84, SLA 1999, is amended to
read:
Sec. 18. OCCUPATIONAL LICENSING. The unexpended
and unobligated balance on June 30, 1999, of the
Department of Community [COMMERCE] and Economic
Development, division of occupational licensing,
general fund program receipts, general fund program
receipts from occupational licensing fees under AS
08.01.065, general fund program receipts received from
occupational licensing fees under AS 08.01.065 during
the fiscal year ending June 30, 2000, and other
program receipts received by the division during the
fiscal year ending June 30, 2000, not to exceed a
total appropriation of $6,053,200 [$5,053,200], are
appropriated to the Department of Community [COMMERCE]
and Economic Development, division of occupational
licensing, for operating costs for the fiscal year
ending June 30, 2000, and the fiscal year ending June
30, 2001.
Page 48. Following line 25
Insert new bill sections to read:
Sec. 38. Section 23 of this Act is retroactive to July
1, 1999.
Sec. 39. Section 23 of this Act takes effect
immediately under AS 01.10.070(c)
Renumber bill sections and make conforming changes
accordingly.
New Text Underlined [DELETED TEXT BRACKETED]
Co-Chair Torgerson moved for adoption.
Co-Chair Torgerson moved to amend the amendment to change
the amount of the reduction from $1,000,000 to $550,000.
The amended amendment reads as follows.
Appropriation General Other
Allocation Items Funds Funds
Page 5, line 32
Delete:
Occupational 5,519,300 5,052,900 466,400
Licensing
Insert:
Occupational 4,969,300 4,502,900 466,400
Licensing
This amendment reduces the amount from general fund
program receipts by $1,000,000.
Page 45, following line 10
Insert a new bill section to read:
Sec. 23. Section 18, ch. 84, SLA 1999, is amended to
read:
Sec. 18. OCCUPATIONAL LICENSING. The unexpended
and unobligated balance on June 30, 1999, of the
Department of Community [COMMERCE] and Economic
Development, division of occupational licensing,
general fund program receipts, general fund program
receipts from occupational licensing fees under AS
08.01.065, general fund program receipts received from
occupational licensing fees under AS 08.01.065 during
the fiscal year ending June 30, 2000, and other
program receipts received by the division during the
fiscal year ending June 30, 2000, not to exceed a
total appropriation of $6,053,200 [$5,053,200], are
appropriated to the Department of Community [COMMERCE]
and Economic Development, division of occupational
licensing, for operating costs for the fiscal year
ending June 30, 2000, and the fiscal year ending June
30, 2001.
Page 48. Following line 25
Insert new bill sections to read:
Sec. 38. Section 23 of this Act is retroactive to July
1, 1999.
Sec. 39. Section 23 of this Act takes effect
immediately under AS 01.10.070(c)
Renumber bill sections and make conforming changes
accordingly.
New Text Underlined [DELETED TEXT BRACKETED]
Co-Chair Parnell stated this is a technical change and that
the Administration understands the intent.
Senator Leman did not understand how this change was only
technical if the reduction amount was changed.
Co-Chair Parnell explained that the FY 00 budget
established a limit on the level of spending on licensing
expenses. He then referred to testimony given to the
Committee that stated the division "essentially gambles" on
a supplemental budget supplying adequate operating funds.
Co-Chair Parnell expressed that he did not want agencies
taking this approach. He continued that the intent of the
amendment is to assure the division that it would receive
$450,000 in the FY 01 budget, but would under no
circumstances receive that amount the subsequent year.
Senator Phillips asked if the revenues generated from the
fees charged to issue these licenses is used to fund the
licensing costs or for other purposes.
Co-Chair Parnell thought this governmental function has
higher returns than operating expenses.
DAVE BLAISDELL, Staff to Co-Chair Parnell, stated that
although the division generates revenue, legislative
appropriations must be made before any funds can be
expended. [This witness spoke out of range of the audio
recording system.]
Senator Adams requested the administration speak to this
amendment. He wanted to know if the department supported
the amendment to the amendment.
JEFF BUSH, Deputy Commissioner, Department of Community and
Economic Development testified that this change would solve
the division's fiscal problems for the current fiscal year.
Without objection, the amendment was AMENDED.
There was no objection and the amended amendment was
ADOPTED.
CED #10: This amendment inserts $1,534,000 general funds to
the Municipal Revenue Sharing BRU, State Revenue Sharing
component, and $1,866,000 general funds to the Municipal
Revenue Sharing BRU, Municipal Assistance component.
Accompanying language states, "Restores FY 00 level of
funding for both Revenue Sharing and Municipal Assistance."
This amendment was NOT OFFERED. Senator Adams stated that
he had prepared another amendment that he would offer if
the matter of Municipal Assistance and Revenue Sharing were
not otherwise addressed.
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.
[This amendment was adopted in the previous hearing.]
Co-Chair Parnell noted a technical correction for the
Division of Legislative Finance to give authorization to
the Department of Law to move funds from the Oil and Gas
Litigation BRU to any component related to prosecution
services within the Criminal Division BRU.
Senator Adams asked if the department had a suggestion as
to which component the funds should be assigned.
KATHRYN DAUGHTEE, Director, Division of Administrative
Services, Department of Law said the intended reallocation
was unclear, which was why clarification was requested. She
suggested the Criminal Justice Litigation component as one
option.
Senator Adams offered a motion to give direction to the
Department of Law to expend the funds in the Criminal
Justice Litigation component. He noted that if Senator
Donley wished to change this allocation, he could offer an
amendment before the full Senate.
There was no objection to Senator Adams' motion and it was
ADOPTED.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Co-Chair Parnell relayed instructions to the Division of
Legislative Finance to make technical adjustments to
restore the new accounting code in Section 2 of the
committee substitute, relating to Marine Highway Duplicated
Expenditures to conform with the House of Representatives'
version of the FY 01 operating budget.
DEPARTMENT OF CORRECTIONS
COR #8: 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.
Administration and Operations
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
Community Corrections
Community Residential Centers 811,000
Total $3,479,000
This amendment was NOT OFFERED to defer to COR #8A.
COR #8A: 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.
Administration and Operations
Institution Director's Office $195,600
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
Subtotal 1,993,000
Community Corrections
Community Residential Centers 811,000
Total $2,804,000
Co-Chair Torgerson moved for adoption.
Co-Chair Parnell explained the reason for this funding
change it because AS 37.05.146 dictates that SDPR means
"money received by the state, restrictive to specific use
by the terms of a contract." He noted that local
governments have contracts with the aforementioned
correctional centers to house inmates serving sentences for
convictions of local infractions and this is the source of
the SDPR funds.
There was no objection and the amendment was ADOPTED.
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
This amendment was NOT OFFERED and deferred to COR #9A.
COR #9A: 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.
Administration and Operations
Institution Director's Office
(including electronic monitoring) $870,600
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
Community Jails Restore: 80,700GF
Electronic Monitoring 645,600
Subtotal 9,993,000
Community Corrections
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
Subtotal $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 Fund SDPR in Electronic Monitoring
+450.0/+225.0 telephone receipts - Institution
Directors Ofc.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams explained that this amendment transfers the
general funds that had been replaced with SDPR in COR #8A
and allocates them to State Revenue Sharing and Municipal
Assistance.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green,
Senator Phillips, Senator Leman, Co-Chair Torgerson and Co-
Chair Parnell
ABSENT: Senator Donley
The motion FAILED (1-7-1)
The amendment FAILED to be adopted.
COR #5: This amendment inserts $82,900 MHTAAR to the
Administration and Operations BRU, Inmate Programs
component to fund the Men's Substance Abuse Pilot Program.
This amendment was adopted in the previous hearing.
However, the Senate Finance committee substitute for HB 313
had not yet been adopted. Therefore, the action taken on
the amendment was out of order.
Senator Adams offered a motion to rescind the Committee's
action on adopting the amendment.
There was no objection and the Committee's action was
RESCINDED.
Senator Adams moved to adopt the amendment to the committee
substitute, which had since been adopted as a workdraft.
Without objection the amendment was ADOPTED.
AT EASE
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
EED #3: This amendment inserts $1,800,000 TANF funds to the
Early Development BRU, Child Care Assistance and Licensing
component.
Two previous motions to adopt this amendment were offered
and subsequently withdrawn.
Ms. Clarke told that the department had concluded that it
was possible to reappropriate the lapsed TANF funds
originally allocated to the Balloon Project to Child Care
Assistance and Licensing. In order to do this, she said, an
amendment to the Public Assistance Administration component
would be necessary to allow the department to RSA funds
into the Balloon Project.
AT EASE until 4:52 PM
[Due to audio equipment difficulties, there is a pause on
the tape. However, no portion of the meeting is missing.]
Senator Adams moved for adoption of EED #3.
Senator Wilken moved to amend the amendment, replacing it
with the language of EED #3C. This language is as follows.
Appropriation General Other
Allocation Items Funds Funds
HB 312
Page 8, line 26
Delete:
Child Care 65,920,300 8,396,600 57,523,700
Assistance & Licensing
Insert:
Child Care 66,386,300 8,862,600 57,523,700
Assistance & Licensing
Page 8, line 28
Delete:
Child 29,148,600
Care Assistance
& Licensing
Insert:
Child 29,614,600
Care Assistance
& Licensing
General Funds saved from a fund source change in State
Health Services is appropriated for childcare
assistance and licensing operations.
Page 13, line 28
Delete:
Public Assistance 80,671,400 22,300,500 58,370,900
Administration
Insert:
Public Assistance 81,671,400 22,300,500 59,370,900
Administration
Page 13, line 29
Delete:
Public 3,227,100
Assistance
Administration
Insert:
Public 4,227,100
Assistance
Administration
Increase is TANF Federal Receipts
Insert new bill sections to read:
"The unexpended and unobligated balance on June
30, 2000, of the appropriation made by sec. 43, ch.
84, SLA 1999, page 23, line 21 (Out-of-State
Contracts), not to exceed $355,700 is appropriated to
Department of Education and Early Development for
operation of the child care assistance and licensing
for the fiscal year ending June 30, 2001.
The unexpended and unobligated balance of general
funds of the appropriation made in sec. 77(b), ch. 2,
FSSLA 1999 is reappropriated to the Department of
Education and Early Development, child care assistance
and licensing for the fiscal year ending June 30,
2001."
Add immediate effective date for new sections.
Appropriation General Other
Allocation Items Funds Funds
HB 313
Page 4, line 32
Delete:
State Health 4,639,700 4,419,700 220,000
Services
Insert:
State Health 4,639,700 3,953,700 686,000
Services
GF/MH funds in the Healthy Families component are
replaced with I/A Receipts from the federal TANF block
grants.
Ms. Clarke described the change as an authorization to
expend an additional $1 million federal funds for the
Balloon Project.
[The following action was taken but was not recorded.]
Senator Leman stated he had no objection to the amendment
to the amendment.
There was no objection and the amendment was AMENDED to
reflect the language in EED #3C.
Tape: SFC - 99 #71, Side A
Senator Leman objected to the adoption of the amended
amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Green, Senator Adams, Senator Wilken, Co-
Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Leman
ABSENT: Senator Phillips, Senator Donley and Senator P.
Kelly
The motion PASSED (5-1-3)
The amended amendment was ADOPTED.
UNIVERSITY OF ALASKA
UNIV #10: This amendment changes the appropriation of some
non-general fund sources adopted in UNIV #1 as follows.
Delete:
Statewide Services $9,743,800 Federal Receipts
4,159,800 UA/DFA SVC
1,000,000 Sci/Tech
3,000,000 UA/ICR
14,256,100 University Recpts
Insert:
Budget Reductions/ $9,505,400 Federal Receipts
Additions-Statewide 4,060,300 UA/DFA SVC
1,000,000 Sci/Tech
3,000,000 UA/ICR
13,328,800 University Recpts
Description: SFC UNIV #1 appropriated all non-GF funds
requested by the University of Alaska for FY 01. UNIV
#1 appropriated $32,159,700 non-GF funding for the
University, of which $1,265,200 was requested for
salary maintenance.
This amendment rescinds the funding appropriated in
UNIV #1 and appropriates all non-GF funding requested
in the University's FY 01 operating budget, excluding
the non-GF funding for salary maintenance.
Senator Leman moved for adoption and explained the
relevance to UNIV #1, which the Committee adopted in the
previous hearing. He stated that UNIV #1 inadvertently
contained general fund allocations to employee contracts.
He expressed that because the intent was to address all
state employee contracts separately, this amendment removes
that allocation and is essentially a technical amendment.
There was no objection and the amendment was ADOPTED.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
DOT #7: This amendment makes the following changes to the
committee substitute.
Page 27, following line 27
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Statewide Facility Maintenance and
Operations is reduced by $436,006 in other funds. The
reduction in this appropriation shall occur as a
reduction of $65,000 in the allocation for Central
Region Facilities, a reduction of $242,000 in the
allocation for Northern Region Facilities, and a
reduction of $129,000 in the allocation for Southeast
Region Facilities.
Page 28, following line 15
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Central Region Highways and Aviation
is reduced by $65,000 in other funds.
Page 28, line 16
Delete:
The allocation for Central Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Insert:
The appropriation for Central Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Page 28, following line 24
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Northern Region Highways and Aviation
is reduced by $336,600 in other funds.
Page 28, line 25
Delete:
The allocation for Northern Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Insert:
The appropriation for Northern Region Highways
and Aviation shall lapse into the general fund on
August 31, 2001.
Page 28, following line 29
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Southeast Region Highways and
Aviation is reduced by $46,500 in other funds.
Page 28, line 30
Delete:
The allocation for Southeast Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Insert:
The appropriation for Southeast Region Highways
and Aviation shall lapse into the general fund on
August 31, 2001.
Co-Chair Torgerson moved for adoption and explained that
the purpose of the amendment is to clarify the intent if HB
112, which established the Alaska public building fund,
does not become law. This bill contains a revenue
generating fiscal note, he detailed, which is the funding
source for the amendments relating to increased funding
allocated to cover the expense of higher fuel costs. He
stated that the language of this amendment stipulates that
if the pending legislation does not become law and the
funding source is not realized, the department is directed
to reduce its budget by the amount allocated by the
amendments.
Co-Chair Torgerson moved to amend the amendment to replace
"other funds" with "public building funds" wherever it
appears in the amendment. The amended amendment reads as
follows:
Page 27, following line 27
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Statewide Facility Maintenance and
Operations is reduced by $436,006 in public building
funds. The reduction in this appropriation shall occur
as a reduction of $65,000 in the allocation for
Central Region Facilities, a reduction of $242,000 in
the allocation for Northern Region Facilities, and a
reduction of $129,000 in the allocation for Southeast
Region Facilities.
Page 28, following line 15
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Central Region Highways and Aviation
is reduced by $65,000 in public building funds.
Page 28, line 16
Delete:
The allocation for Central Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Insert:
The appropriation for Central Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Page 28, following line 24
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Northern Region Highways and Aviation
is reduced by $336,600 in public building funds.
Page 28, line 25
Delete:
The allocation for Northern Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Insert:
The appropriation for Northern Region Highways
and Aviation shall lapse into the general fund on
August 31, 2001.
Page 28, following line 29
Insert:
If legislation establishing the public building
fund is not passed by the Twenty-First Alaska State
Legislature and enacted into law, then the amount
appropriated for Southeast Region Highways and
Aviation is reduced by $46,500 in public building
funds.
Page 28, line 30
Delete:
The allocation for Southeast Region Highways and
Aviation shall lapse into the general fund on August
31, 2001.
Insert:
The appropriation for Southeast Region Highways
and Aviation shall lapse into the general fund on
August 31, 2001.
Senator Adams noted the high fuel costs if the HB 112 does
not pass. He did not object to the amendment to the
amendment.
AT EASE 5:01 PM / 5:05 PM
Co-Chair Torgerson clarified that the Division of
Legislative Finance and the Division of Legal and Research
Services could make the determination as to whether the
changes in the amendment to the amendment were necessary
and make technical adjustments accordingly.
There being no objection, the amendment was AMENDED.
Co-Chair Parnell commented that no commitment for a
supplemental budget is made and that the department is
instructed to reduce its appropriation if the funding is
not provided by HB 112.
The amended amendment was ADOPTED.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
H&SS #1: This amendment inserts $1,387,000 general funds to
the Juvenile Justice BRU, Mat-Su Youth Facility component,
and inserts $1,138,000 general funds to the Juvenile
Justice BRU, McLaughlin Youth Center component. Language
accompanying the amendment reads as follows.
This amendment increases funding for the operation of
the new 15-bed facility serving the Matanuska-Susitna
area by $1,387,000 in order to fund operation of the
facility beginning July 1, 2000.
This amendment also increases funding for the
McLaughlin Youth Facility to allow for operation of
the new 30-bed facility effective July 1, 2000.
Senator Green moved for adoption.
Senator Adams agreed with the allocation but asked if there
was sufficient funding to operate the Ketchikan Regional
Youth Facility.
Co-Chair Parnell assured the matter would be addressed in
an amendment to the amendment.
Senator Green spoke of the construction of the Mat-Su
facility and addition to the McLaughlin facility. She
stated that it was now time to open the facilities, which
this amendment supplies funding for. She added that the
proposed amendment to the amendment appropriates funds to
open the Ketchikan facility when construction is complete
in the spring of 2001.
Senator Green moved to amend the amendment, replacing the
language with language contained in H&SS #1A. This language
reads as follows.
Appropriation General Other
Allocation Items Funds Funds
Page 13, line 25
Delete:
Medicaid Services 446,405,100 105,323,000 341,082,100
Insert:
Medicaid Services 446,405,100 103,611,600 341,082,100
Page 15, line 6
Delete:
McLaughlin 10,078,500
Youth Center
Insert:
McLaughlin 11,380,500
Youth Center
Page 15, line 11
Delete:
Mat-Su 174,800
Youth Facility
Insert:
Mat-Su 584,200
Youth Facility
Insert new bill sections to read:
The unexpended and unobligated balance on June
30, 2000 of the appropriation made by sec. 43, ch. 84,
SLA 1999, page 23, line 21 (Out-of-State Contractual)
not to exceed $615,000 is appropriated to Mat-Su Youth
Facility.
The unexpended balance of the appropriation made
by sec. 43, ch. 84, SLA 1999, page 7, line 26 (Out-of-
State Contractual) not to exceed $98,000 is
appropriated to the Ketchikan Regional Youth Facility.
Provide funds for the operation of the new youth
facilities (or expansion of facilities) opening in FY
01.
Co-Chair Parnell explained this amendment to the amendment
adds the Ketchikan facility to the list of facilities
receiving funding. He stated that construction and
expansion of the three aforementioned facilities were
authorized by the legislature in prior years. He continued
that the amendment to the amendment provides non-general
funds, in this case, lapsed funds appropriated for out-of-
state contracts plus funds from a Medicaid services
reduction. He said that reduction would be discussed later
in the meeting.
Senator Adams cited a letter written by Senator Taylor
stating that the opening date of the Ketchikan facility is
March 1, 2001. If the facility opened at this date,
according to Senator Taylor, the facility would require
$283,000 to operate rather than the $98,000 provided in the
amendment to the amendment.
Co-Chair Parnell relayed that Senator Taylor and the
department expressed to him that $98,000 is the correct
amount needed by the facility.
Senator Phillips asked for details of the Medicaid services
reduction.
AT EASE 5:10 PM / 5:19 PM
Ms. Clarke noted the Hospital Pro-Share Program is utilized
in order for the state to reach its "cap" for Medicaid
expenditures. The funds utilized in this amendment, she
stated, would come from efforts to receive pro-share
funding retroactively from previous year.
Ms. Clarke detailed the funding mechanism of the state's
publicly operated hospitals and how some of the funds
provided to the hospitals would return to the state as
SDPR. She listed some of the qualifying hospitals that
local governments operate as, Bartlett Regional Hospital in
Juneau, and the hospitals in Cordova, Kodiak, Valdez,
Wrangell and Petersburg.
Senator Adams wanted to know how the state could be assured
that the projected 90 percent of allocated funding would be
returned.
Ms. Clarke answered that in order to participate the
hospitals must sign an agreement to return 90 percent of
the funds within five days. She stated that the returned
funds have to be spent in the Medicaid program, but noted
that this method requires less expenditure of general funds
to operate the program.
Co-Chair Parnell noted this funding mechanism is technical
and that the House of Representatives utilized this as
well. He emphasized that many other states also employ this
program.
Ms. Clarke reminded that a subsequent amendment would be
needed to establish the retroactive Hospital Pro-Share
program.
Senator Leman did not understand the 90 percent return and
asked what the hospitals would receive in exchange for
participating.
Ms. Clarke agreed the program had to be designed to improve
quality and access to services. She pointed out that the
participating hospitals are smaller facilities that have a
difficult time maintaining solvency and that this program
would provide $2 million to the ten qualified hospitals.
She explained the reason the program was allowable was
because locally owned and operated county hospitals in many
states provide the match for the Medicaid program.
Senator Leman had thought that the state Medicaid
expenditure was what the state paid to the hospital for
services they provide.
Ms. Clarke expounded this program is an additional payment
above any regular Medicaid claim.
Senator Phillips asked if this concept was being attempted
for the first time.
Co-Chair Parnell said it was for Alaska but has been done
in other states.
A roll call was taken on the motion to amend the amendment.
IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green,
Senator Leman, Senator Adams, Co-Chair Torgerson and Co-
Chair Parnell
OPPOSED: Senator Phillips
ABSENT: Senator Donley
The motion PASSED (7-1-1)
The amendment was AMENDED.
A roll call was taken on the motion to adopt the amendment
as amended.
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 amended amendment was ADOPTED.
H&SS #2: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 15, line 12
Delete:
Ketchikan 23,100
Regional Youth
Facility
Insert:
Ketchikan 283,200
Regional Youth
Facility
It has now been established that this facility will be
open on March 1, 2000. Funding needs were not included
in the House bill as a later opening date had been
anticipated.
This amendment was NOT OFFERED due to action taken on H&SS
#1.
H&SS #3: This amendment inserts $294,400 general funds to
the State Health Services BRU, Infant Learning Grants
component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams reminded that the Infant Learning Grants
issue had been debated at the previous hearing.
Co-Chair Torgerson moved to amend the amendment to replace
the general funds with federal funds.
Co-Chair Parnell explained that the federal funds would
actually be inter-agency receipts that would be received by
the Alcohol and Drug Abuse Administration component for the
FASFAE program. He said this fund source change makes use
of additional federal funds.
Senator Leman pointed out that if the fund transfer were
made but no additional funds allocated to the infant
learning program, the general fund spending would be
reduced by $300,000.
Co-Chair Parnell acquiesced.
AT EASE 5:32 PM / 5:37 PM
Co-Chair Parnell clarified the fund source and the transfer
of funds. He stated that this amendment transfers $294,400
FASFAE federal funds to the Infant Learning Grants because
of the direct connection of the program.
Without objection the amendment was AMENDED.
Senator P. Kelly stated that this amendment has a neutral
general fund affect, contrary to Senator Leman's comment
stating otherwise.
Senator Leman wanted to understand the connection between
the Infant Learning Grants program and FASFAE.
Senator P. Kelly explained the FASFAE makes multiple
reference to children, both in prevention and in treatment
capacities.
Senator Leman wanted assurance that this allocation would
be used for the FASFAE purposes rather than directed to
another program.
Senator P. Kelly answered that the grant has parameters
that require funds to go to qualifying children.
There was no objection and the amended amendment was
ADOPTED.
H&SS #4: this amendment inserts $278,600 federal funds,
$278,600 GF-Match funds, and $514,200 general funds to the
Front Line Social Workers BRU, Front Line Social Workers
component. Language accompanying the amendment reads, "to
reduce the vacancy and turnover rate for Front Line Social
Workers."
This amendment was held at this time and subsequently NOT
OFFERED.
H&SS #5: This amendment replaces $500,000 I/A funds with
general funds in the Alcohol and Drug Abuse Services BRU,
Alcohol and Drug Abuse Grants component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams noted that the subcommittee recommended
funding this component with inter-agency receipts in the
expectation that the Community Prevention Grant component
of the FASFAE would cover the allocation. However, he
stressed, substance abuse, prevention and treatment block
grants, does not qualify for this funding source. He warned
that to utilize the federal funds in this manner would
result in federal penalties.
Senator Adams added that failure to adopt this amendment
would result in a loss of $241,000 federal funds in the
year 2002 and a loss of $250,000 in FY 2003. Subsequently,
he continued, 8,000 individuals would be denied treatment
in the alcohol and drug abuse program, by FY 2003.
AT EASE 5:41 PM / 5:46 PM
Senator Adams stated that he was trying to ensure matching
federal funds for future years. However, he noted he would
have to research the matter further.
Without objection, Senator Adams WITHDREW his motion to
adopt the amendment. The amendment was NOT OFFERED again.
H&SS #6: This amendment inserts $29,800 federal funds and
$1,103,300 general funds to the Purchased Services BRU,
Foster Care Special Needs component.
This amendment deferred to H&SS #14 and was NOT OFFERED.
H&SS #7: This amendment inserts $300,000 general funds to
the Purchased Services BRU, Foster Care Augmented Rate
component.
This amendment deferred to H&SS #14 and was NOT OFFERED.
H&SS #8: This amendment inserts $396,500 federal funds and
$482,300 GF/Match to the Purchased Services BRU, Subsidized
Adoption and Guardianship component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams explained that the number of children
provided permanent homes through subsidized adoption and
guardianship program has increased significantly over the
past several years. He noted that the increase between 1992
and 1999 was 258 percent. He stressed the need to continue
to fund this program saying that there was currently
insufficient funding.
Co-Chair Parnell agreed guardianships were important but
was concerned about the general fund source.
Co-Chair Torgerson moved to amend the amendment to replace
the GF/Match funds with ILTF funds.
Without objection the amendment was AMENDED.
Senator Phillips stated he was unfamiliar with the ILTF
funding source.
Co-Chair Parnell pointed out that the Committee had
recently adopted two other amendments using this funding
source. He explained that a balance of $482,300 remains in
the ILTF and that he was prioritizing this program to
receive those funds.
Senator Leman asked about the Subsidized Adoption and
Guardianship program. He wanted to know if the funds would
be subsidizes to adoptive parents or go to fund department
operations.
Co-Chair Parnell replied that the funds are provided as
subsidizes for adoptive parents.
Ms. Clarke explained that all the funds in this program are
paid out as subsidizes to the parents who provide
guardianship or adopt a special needs child. She added that
federal funds are also received by the department and are
used towards these payments. She stressed that none of the
funds are used to fund state positions.
Senator Leman asked how large the subsidizes were.
Ms. Clarke replied that the amount is calculated on an
individual basis, but average $17 per day, depending on the
child's needs. She compared this to the payment for foster
care, which averages between $30 to $34 per day.
Senator Leman asked if the payments continue after the
adoption is complete.
Ms. Clarke responded that the payments continue until the
child reaches the age of 18.
There was no objection and the amended amendment was
ADOPTED.
H&SS #9: This amendment adds general funds to the Juvenile
Justice BRU, McLaughlin Youth Center, Mat-Su Youth
Facilities, Ketchikan Regional Youth Facility and Bethel
Youth Facility components. The amounts are as follows.
$1,302,000 for staffing the new 30-bed unit at the
McLaughlin Youth Center
$1,213,000 for phased opening at the Mat-Su Youth
Facility
$276,600 to open the Ketchikan Regional Youth Facility
$85,300 to address overcrowding at the Bethel Youth
Facility
Senator Adams requested this amendment be HELD while he
attempted to locate a funding source for the Bethel Youth
Facility portion of the amendment.
AT EASE until 6:02 PM
Senator Adams moved to amend and adopt the amendment. The
amendment to the amendment deletes all components except
the Bethel Youth Facility and changes the funding source
from general funds to federal funds.
Senator Adams stressed the need for funding to address
overcrowding in the Bethel Youth Facility. He noted that
the federal funds are reallocated from the Medical Services
component.
Co-Chair Parnell pointed out that this reallocation uses
the same method as employed in H&SS #1.
There was no objection and the amendment was AMENDED and
ADOPTED.
H&SS #10: This amendment inserts $188,600 tobacco
settlement funds to the State Health Services BRU, Tobacco
Control and Prevention component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams relayed the very recent US Supreme Court
decision ruling that the Federal Communications Commission
(FCC) lacks jurisdiction over cigarette and smokeless
tobacco advertising. As a result, he stressed the state
loses a $200,000 FCC grant immediately. He spoke of the
need to continue tobacco education and prevention efforts.
Senator Adams noted the anticipated receipt of $20,923,000
from the tobacco settlement as compared to $27,941,000 the
previous year, of which $1.4 million was appropriated. His
intent was to keep the appropriation level the same as in
the previous year.
Co-Chair Parnell spoke to a proposed amendment to the
amendment, which changes the amendment as follows.
Appropriation General Other
Allocation Items Funds Funds
Page 13, line 25
Delete:
Medicaid Services 446,405,100 105,323,000 341,082,100
Insert:
Medicaid Services 446,405,100 105,134,400 341,082,100
Page 17, line 16
Delete:
Tobacco 1,211,400
Prevention
& Control
Insert:
Tobacco 1,400,000
Prevention
& Control
Funds available as a reduction of pro share in the
House bill for Medicaid services will provide funding
for this increment.
Co-Chair Torgerson moved to amend the amendment to reflect
the above language.
Co-Chair Parnell stated that this changes the allocation so
that it is not simply a general fund addition. He explained
that this reduces the allocation to Medicaid Services by
$188,600 and funds the Tobacco Prevention and Control
component at the same amount.
Without objection the amendment was AMENDED.
There was no objection to the amended amendment and it was
ADOPTED.
H&SS #11: This amendment inserts $25,000 general funds to
the Administrative Services BRU, COMPASS Community Grants
component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams defined the COMPASS program as a "community
partnership for access, solution and success for youth." He
explained that this amendment would provide communities
with the seed money to initiate programs that provide
quality after-school, evening and weekend programs for
youths. He stressed that participating communities provide
matching funds for this grant.
Senator Adams emphasized that the history of this grant
program ensures continued success. He shared that the grant
program provided start-up funds for programs in North Pole,
Juneau, Koyuk and Mountain Village.
Senator P. Kelly noted that when originally proposed the
request was for $100,000 and has since been reduced to
$25,000. He pointed out that the budget already funds
several programs targeted at assisting youths with their
education, including Headstart and Infant Learning. He did
not think this additional program was necessary.
A roll call was taken on the motion.
IN FAVOR: Senator Adams
OPPOSED: Senator Green, Senator Phillips, Senator Leman,
Senator Wilken, Senator P. Kelly, Co-Chair Torgerson and
Co-Chair Parnell
ABSENT: Senator Donley
The motion FAILED (1-7-1)
The amendment FAILED to be adopted.
H&SS #12: This amendment inserts $506,600 general funds to
the Abortion Services for Medicaid Eligible Women BRU and
component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams spoke to the judgement issued be the superior
court of Alaska and pointed out that the Medical Assistance
program lacks an appropriation for this service.
Senator P. Kelly relayed a discussion during subcommittee
meetings where it was determined that the subcommittee was
not the proper place to debate this matter. He did not
think the full Senate Finance Committee was the place
either. He alluded to the issue regarding the separation of
powers prescribed in the Alaska Constitution.
Senator Adams emphasized the consequences of failing to
fund this component with the possibility of a contempt of
court order and potential financial sanctions in the
future.
Co-Chair Parnell assured that the matter was still on
appeal before the Alaska Supreme Court. He urged members to
vote against this amendment.
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 amendment FAILED to be adopted.
H&SS #13: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 16, line 27
Delete:
State Health 79,545,600 23,430,800 56,114,800
Services
Insert:
State Health 79,538,300 23,423,500 56,114,800
Services
Page 17, line 5
Delete:
Bureau 1,504,600
Of Vital
Statistics
Insert:
Bureau 1,497,300
Of Vital
Statistics
Justification: This amendment provides the general
fund amount necessary to fund the marijuana registry,
as proposed by the department in its fiscal note to CS
SS SB 94 (HES).
Senator Leman moved for adoption.
Co-Chair Parnell objected.
Senator Leman stated that this amendment provides $73,000
for the marijuana registry and makes the operating budget
consistent with the fiscal note for the legislation
establishing this registry. He noted that it would not be
necessary to fund the computer and workstation expenses
every year.
Co-Chair Parnell asked if the budget subcommittee examined
the issue.
Senator P. Kelly responded that while the subcommittee did
visit the issue, it had not followed through and included
funding for the registry in its recommendations. He stated
he would not object to the amendment.
Co-Chair Parnell removed his objection.
There was no objection and the amendment was ADOPTED.
H&SS #14: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 13, line 25
Delete:
Medicaid Services 446,405,100 105,323,000 341,082,100
Insert:
Medicaid Services 446,405,100 103,611,000 341,082,100
Page 14, line 19
Delete:
Foster Care 2,986,800
Augmented Rate
Insert:
Foster Care 4,098,800
Augmented Rate
Page 14, line 20
Delete:
Foster Care 2,427,000
Special Needs
Insert:
Foster Care 2,727,000
Special Needs
To provide needed funding for Foster Care. The State
is able to realize a savings by implementing the pro
share plan in the Medicaid program.
Co-Chair Torgerson moved for adoption.
Co-Chair Parnell explained this amendment reduces the
allocation to Medicaid Services by $1,711,400 and adds that
amount to Foster Care Augmented Rate and the Foster Care
Special Needs components. He stated that this amendment
provides needed funding for the foster care program.
Co-Chair Torgerson declared a conflict of interest due to
his operation of a foster care home.
Co-Chair Parnell ruled Co-Chair Torgerson would be required
to vote on the amendment.
Co-Chair Parnell noted that the funds in this program are
paid to foster parents rather than as a subsidy to the
department.
There was no objection and the amendment was ADOPTED.
AT EASE 6:13 PM / 6:20 PM
Tape: SFC - 00 #71, Side B 6:20 PM
DEPARTMENT OF CORRECTIONS
COR #6: This amendment inserts $70,000 SDPR to the
Administration and Operations BRU, Institutions Director's
Office component.
Senator Adams moved for adoption.
Co-Chair Parnell objected.
Senator Adams pointed out that the SDPR are federal
contract funds provided by Education Service District #101,
a school district within the State of Washington. He
continued that this program provides distance education
services to juveniles incarcerated in adult facilities. He
referred to a list of studies and programs and the
equipment that the distance education service would
provide.
Co-Chair Parnell asked how this appropriation fit the
definition of Statutory Designated Program Receipts.
DWAYNE PEEPLES, Director, Division of Administrative
Services, Department of Corrections responded that the
funds come to the department under a contract arrangement
with the Washington state school district.
Co-Chair Parnell asked if the funds come directly from the
federal government.
Mr. Peeples replied that the funds come from the school
district, which contracts with the department to provide
the educational services.
There was no objection and the amendment was ADOPTED.
DEPARTMENT OF ADMINISTRATION
ADM #8: This amendment reduces the amount of general funds
allocated to the Leases BRU, Leases component by $25,000.
It then increases the allocation to the Public
Communications Services BRU, Public Broadcasting-Radio
component by $25,000 general funds.
Senator Wilken moved for adoption.
Co-Chair Parnell objected.
Senator Wilken refreshed members on the debate held at the
previous meeting on this issue. He spoke of testimony heard
at that meeting stating that the proposed $130,000 funding
reduction would damage the public radio system. He shared
that while he had requested, but not received, information
about potential impacts earlier in the subcommittee
process, that information was provided to him after the
previous hearing had adjourned. He said the Public
Broadcasters Commission calculated it would need $50,000 to
maintain solvency. This amendment reflects that request
with the funding source being the Leases BRU, he stated. He
noted that the Leases BRU were already underfunded by
$800,000 and that a supplemental budget request may be
necessary in the next legislative session.
Senator Adams appreciated the $50,000 addition although he
said the originally requested $130,000 would have been
preferred.
Senator Green wanted to prevent the closure of any radio
station and said this allocation should do that.
Co-Chair Parnell removed his objection.
The amendment was ADOPTED without objection.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
H&SS #15: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 13, line 25
Delete:
Medicaid 446,405,100 105,323,000 341,082,100
Services
Insert:
Medicaid 437,848,100 96,766,000 341,082,100
Services
Page 45, following line 5
Insert a new bill section to read:
Sec. __. MEDICAID PRO-SHARE. (a) The sum of
$9,960,000 in general funds appropriated in section
43, CH 84, SLA 1999, page 30, line 31 (Medicaid
Services - $392,343,100), lapses into the general fund
June 30, 2001.
(b) The sum of $29,960,000 is appropriated
to the Department of Health and Social Services,
Medicaid Services, for the fiscal year ending June 30,
2000 from the following sources:
Federal Funds $11,960,000
Statutory Designated $18,000,000
Receipts
(c) The appropriation made by (b) of this
section is conditioned upon the Department of Health
and Social Services establishing a program of
additional payments to insure access for community
hospitals under a distribution methodology approved by
the Heath Care Financing Administration for government
owned and operated hospitals in Alaska. Hospitals that
choose to participate must sign an agreement by May
17, 2000, to return 90% of the additional payment
amounts to the State Of Alaska.
Additional language accompanying the amendment states, "The
appropriations in (a) and (b) of this section take effect
immediately in accordance with AS 01.10.070(c)."
This amendment was NOT OFFERED, as a technical change was
necessary. H&SS #16 was acted upon in its place.
AT EASE 6:25 PM / 6:32 PM
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
EED #5: [This amendment was adopted earlier in the
meeting.]
Senator Wilken explained that the earlier adopted language
was incorrect according to the Division of Legislative
Legal and Research Services.
Senator Wilken offered a motion to rescind the Committee's
action in adopting the amendment. There was no objection
and the action was RESCINDED.
Senator Wilken moved to amend the amendment to replace the
existing language with language contained in EED #5B. That
language reads as follows.
Page 43, following line 3
Insert a new bill section to read:
Sec. 13. LEARNING OPPORTUNITY GRANTS. 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 $5,787,100, is reappropriated to the
Department of Education and Early Development for the
fiscal year ending June 30, 2001, for payment as
grants to each school district in an amount equal to
the school district's average daily membership
multiplied by $43.75 as Learning Opportunity Grants to
pay the costs of supplemental student instructional
programs to improve student performance on the high
school graduation examination or benchmark
examinations for the fiscal year ending June 30, 2001.
The department shall by regulation establish a process
to implement this section.
Without objection or discussion, the amendment was AMENDED.
Senator Leman opposed adoption of the amended amendment.
A roll call was taken on the motion to adopt the amended
amendment.
IN FAVOR: Senator Adams, Senator Wilken, Senator P. Kelly,
Senator Green, Co-Chair Torgerson and Co-Chair Parnell
OPPOSED: Senator Leman
ABSENT: Senator Donley and Senator Phillips
The motion PASSED (6-1-2)
The amendment as amended was ADOPTED.
AT EASE 6:36 PM
LEGISLATURE
LEG #1: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 31, lines 16 and 17
Delete:
Legislative Council 20,786,800 20,721,800 65,000
Salaries 4,151,300
& Allowances
Insert:
Legislative Council 20,633,800 20,568,800 65,000
Salaries 4,151,300
& Allowances
Page 31, following line 17
Insert:
It is the intent of the legislature that long-
term per diem not be paid to legislators unless
specifically authorized by a standing committee or an
interim committee of the legislature.
Senator Phillips moved for adoption.
Co-Chair Parnell objected.
Senator Phillips recounted when he was first elected into
the legislature in the 1970s, when per diem was not paid
during the legislative interim. He felt that there had been
recent "liberalization" in the collection of these
payments. He expressed that "the public deserves more" than
to pay this per diem to legislators who have legislative
offices within 50 miles of their home. He did believe that
when legislative duties take a legislature farther than 50
miles of their home, the per diem was appropriate. He was
concerned about legislators taking advantage of the per
diem system without any limitations.
Senator Leman suggested addressing the matter of "in
session" per diem.
Senator Phillips responded that this amendment only
addresses per diem paid during the legislative interim.
Co-Chair Torgerson stated that this amendment would not
accomplish anything as the presiding officers of the House
of Representatives and the Senate had handed over the
authority to approve interim per diem to the Legislative
Council.
Co-Chair Torgerson declared a conflict of interest as the
chair of a standing committee.
Co-Chair Parnell ruled Co-Chair Torgerson would be required
to vote on the amendment. Co-Chair Parnell noted that all
members could declare a conflict of interest as they
potentially could collect interim per diem.
Co-Chair Parnell pointed out for the benefit of the public
that through the federal government's calculations of cost
of living, the legislators per diem has been reduced by
eight percent in the current year. He stressed that if
there has been abuse of the legislative interim per diem
system, that abuse must be addressed at the Legislative
Council level.
A roll call was taken on the motion.
IN FAVOR: Senator Phillips
OPPOSED: Senator Adams, Senator Wilken, Senator P. Kelly,
Senator Green, Senator Leman, Co-Chair Torgerson and Co-
Chair Parnell
ABSENT: Senator Donley
The motion FAILED (7-1-1)
The amendment FAILED to be adopted.
DEPARTMENT OF CORRECTIONS
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 stated that this amendment would allow the
department to expand the electronic monitoring program. He
noted 70 additional inmates from Mat-Su, Juneau, Kenai,
Fairbanks, Anchorage and Ketchikan facilities could
participate. He pointed out that the participating inmates
pay the full cost of operating the program. He expressed
that this program is a cost-effective alternative to prison
and is a good tool for enforcing curfews and monitoring
offenders.
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.
At ease 6:43 PM / 6:53 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
H&SS #16: This amendment makes the following changes to the
committee substitute.
Appropriation General Other
Allocation Items Funds Funds
Page 13, line 25
Delete:
Medicaid 446,405,100 105,323,000 341,082,100
Services
Insert:
Medicaid 440,141,800 99,059,700 341,082,100
Services
Page 45, following line 5
Insert a new bill section to read:
Sec. __. MEDICAID PRO-SHARE. (a) The sum of
$9,960,000 in general funds appropriated in section
43, CH 84, SLA 1999, page 30, line 31 (Medicaid
Services - $392,343,100), lapses into the general fund
June 30, 2001.
(b) The sum of $29,960,000 is appropriated
to the Department of Health and Social Services,
Medicaid Services, for the fiscal year ending June 30,
2000 from the following sources:
Federal Funds $11,960,000
Statutory Designated $18,000,000
Receipts
(c) The appropriation made by (b) of this
section is conditioned upon the Department of Health
and Social Services establishing a program of
additional payments to insure access for community
hospitals under a distribution methodology approved by
the Heath Care Financing Administration for government
owned and operated hospitals in Alaska. Hospitals that
choose to participate must sign an agreement by May
17, 2000, to return 90% of the additional payment
amounts to the State Of Alaska.
Additional language accompanying the amendment states, "The
appropriations in (a) and (b) of this section take effect
immediately in accordance with AS 01.10.070(c)."
Co-Chair Torgerson moved for adoption.
Co-Chair Parnell explained this amendment funds the pro-
share mechanism as discussed extensively during this and
the previous hearing.
Ms. Clarke explained this amendment would allow the
hospital pro-share program to be implemented retroactively
for FY 00. She stated that although a plan was not
currently in place, the conditional appropriation language
in this amendment gives the department protection to
negotiate with the eligible hospitals. She continued that
the future pro-share program would follow the normal
regulation process for implementation. However, she pointed
out, the department would not have adequate time to follow
the normal procedures and still impact the FY 01 budget.
She spoke of a proposed second contingent appropriation in
the event that no hospitals chose to participate, or if the
state is sued in its attempt to garner these funds.
Co-Chair Parnell agreed it was possible that no hospitals
would chose to participate, but noted that even if only one
hospital applies, that hospital would receive the entire
pro-share grant. He shared that the grant is a set amount
to be divided among all participating hospitals.
There was no objection and the amendment was ADOPTED.
AT EASE 6:57 PM / 7:04 PM
Co-Chair Parnell announced HB 312 would be HELD until the
next day to allow the figures to be calculated.
ADJOURNED
Senator Parnell adjourned the meeting at 7:05 PM.
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