Legislature(1999 - 2000)

03/31/2000 09:19 AM Senate FIN

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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MINUTES                                                                                                                         
SENATE FINANCE COMMITTEE                                                                                                        
March 31, 2000                                                                                                                  
9:19 AM                                                                                                                         
                                                                                                                                
TAPES                                                                                                                           
                                                                                                                                
SFC-00 # 72, Side A                                                                                                             
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Sean Parnell convened the meeting at approximately                                                                     
9:19 AM.                                                                                                                        
                                                                                                                                
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,                                                                         
Senator Al Adams, Senator Pete Kelly, Senator Loren Leman,                                                                      
Senator Green, Senator Phillips and Senator Gary Wilken.                                                                        
                                                                                                                                
Also Attending:                                                                                                                 
                                                                                                                                
SUMMARY INFORMATION                                                                                                             
                                                                                                                                
HB 312-APPROPRIATIONS: OPERATING BUDGET                                                                                         
                                                                                                                                
Committee members made comments on the committee substitute                                                                     
as amended and the bill was reported from Committee.                                                                            
                                                                                                                                
HB 313-APPROPRIATIONS: MENTAL HEALTH                                                                                            
                                                                                                                                
Co-Chair Parnell announced the Committee would be taking up                                                                     
this bill early in the following week.                                                                                          
CS FOR HOUSE BILL NO. 312(FIN) am(brf sup maj fld)(efd                                                                          
fld)                                                                                                                            
"An Act making and amending appropriations for the                                                                              
operating and loan program expenses of state                                                                                    
government, for certain programs, and to capitalize                                                                             
funds."                                                                                                                         
                                                                                                                                
                                                                                                                                
Co-Chair Parnell explained to members of the public the                                                                         
process of setting a budget each year, describing the                                                                           
operating budget, the capital budget and the supplemental                                                                       
budget.                                                                                                                         
                                                                                                                                
Co-Chair Parnell noted the operating budget the Committee                                                                       
would report out at this meeting contains approximately                                                                         
$105 million less in agency general fund spending than the                                                                      
budget proposed by the governor. He added that the general                                                                      
fund agency reduction under the budget was approximately                                                                        
$35 million. He qualified that these figures did not                                                                            
include state payment for debt service, which would add                                                                         
approximately $11 million.                                                                                                      
                                                                                                                                
Co-Chair Parnell expressed that when all the budget bills                                                                       
passed, he believed the legislature would be on-track for                                                                       
spending at least $30 million less in general fund spending                                                                     
than in the current year.                                                                                                       
                                                                                                                                
Co-Chair Parnell pointed out increases in the FY 01 budget                                                                      
emphasizing education and the protection and development of                                                                     
children as well as public safety and transportation. He                                                                        
stated that many of the increases were "pass-through" to                                                                        
the citizens of Alaska and to local governments rather than                                                                     
state agencies. As an example, he said the permanent fund                                                                       
dividends would increase by $237 million.                                                                                       
                                                                                                                                
Co-Chair Parnell next talked about education funding                                                                            
stressing that the committee substitute fully funds the                                                                         
Kindergarten through 12th grade funding formula and also                                                                        
provides additional funds for learning opportunity grants.                                                                      
He declared the Committee's intent that the grant funds go                                                                      
directly into the classroom. He continued that the budget                                                                       
increases university funding to the classroom.                                                                                  
                                                                                                                                
The next area of budget increases that Co-Chair Parnell                                                                         
addressed were the direct payments to families for foster                                                                       
care and subsidized adoptions. He stated these increases                                                                        
were to insure that children move off of foster care more                                                                       
quickly and into permanent homes.                                                                                               
                                                                                                                                
Co-Chair Parnell continued by noting the new funding for                                                                        
additional state troopers and for fish and wildlife                                                                             
protection officers. Many of these positions serve the                                                                          
rural areas of the state, he indicated, as the urban areas                                                                      
have their own local police department.                                                                                         
                                                                                                                                
Co-Chair Parnell added that the budget provides more                                                                            
funding for Department of Transportation and Public                                                                             
Facilities' maintenance stations so that more roads are                                                                         
plowed and repaired.                                                                                                            
                                                                                                                                
He summarized that these increases reflected the identified                                                                     
priorities as established by the Committee and realized                                                                         
through the efforts in the budget subcommittees to work                                                                         
with the state agencies.                                                                                                        
                                                                                                                                
Co-Chair Parnell referenced a spreadsheet prepared by the                                                                       
Division of Legislative Finance showing the general fund                                                                        
appropriation. [Copy on file.] He pointed out the $35.7                                                                         
million reduction.                                                                                                              
                                                                                                                                
Co-Chair Parnell explained the FY 01 budget funds the                                                                           
additional debt service payment using general fund dollars                                                                      
as it always has. He noted the House of Representatives                                                                         
version of the budget transferred Alaska Industrial                                                                             
Development and Export Authority (AIDEA) funds to pay the                                                                       
debt service. He shared that the Senate intended to utilize                                                                     
the AIDEA funds in the capital budget, as was the                                                                               
tradition.                                                                                                                      
                                                                                                                                
Co-Chair Parnell commended the Committee members and staff                                                                      
for their efforts.                                                                                                              
                                                                                                                                
Co-Chair Parnell asserted that the budget process was an                                                                        
"on-going conversation".                                                                                                        
                                                                                                                                
Senator Adams appreciated the work of the Committee. He                                                                         
noted that the public would look at the total spending                                                                          
package. Even though a $35 million reduction was made, he                                                                       
remarked that there was also a shifting of funds, which was                                                                     
important to note because some might say the budget was not                                                                     
cut enough.                                                                                                                     
                                                                                                                                
Senator Adams commented that there were still some areas of                                                                     
concern with regards to the committee substitute. He listed                                                                     
the Public Defenders Agency and the Office of Public                                                                            
Advocacy as examples. He declared that someone has to look                                                                      
out for the needs of the disadvantaged and the poor and                                                                         
that these Alaskans also need equal representation and                                                                          
access to justice.                                                                                                              
                                                                                                                                
Senator Adams appreciated the additional funds for the                                                                          
Headstart program but said there should have been more                                                                          
funds. He expressed that early education can make Alaskans                                                                      
better citizens.                                                                                                                
                                                                                                                                
Senator Adams next addressed the Village Public Officers                                                                        
Program and his attempts to garner compatible salaries for                                                                      
these positions. He also argued in favor of working                                                                             
salaries for school bus drivers, support for municipal                                                                          
assistance and revenue sharing and the Department of                                                                            
Corrections.                                                                                                                    
                                                                                                                                
Senator Adams then began speaking to the children and                                                                           
families' area of the budget where he thought the Committee                                                                     
did an excellent job. He said foster care, the Balloon                                                                          
Project, childcare and infant learning all benefit from                                                                         
this budget.                                                                                                                    
                                                                                                                                
Senator Adams declared, "There is nothing wrong with being                                                                      
a liberal at heart."                                                                                                            
                                                                                                                                
Senator Adams also applauded the Committee for fully                                                                            
funding education.                                                                                                              
                                                                                                                                
Regarding funding for the University of Alaska, Senator                                                                         
Adams asserted that the cup was half full and that at least                                                                     
some of the needed funds were provided, which he                                                                                
appreciated.                                                                                                                    
                                                                                                                                
Senator Adams referred to an amendment he had offered that                                                                      
would cut many positions located in Anchorage. He said that                                                                     
many people wondered how the state could have such a large                                                                      
number of employees earning a total of $1.2 billion in                                                                          
Anchorage. He surmised that government needed to be                                                                             
reduced.                                                                                                                        
                                                                                                                                
Senator Adams remarked that he budget process this year                                                                         
reflected good cooperation between the budget subcommittees                                                                     
and the Minority. He expressed the staff had done an                                                                            
excellent job relaying information.                                                                                             
                                                                                                                                
Senator Adams stated that he would vote in favor of moving                                                                      
the bill from Committee although he still had some concerns                                                                     
that Minority would bring before the full Senate.                                                                               
                                                                                                                                
Senator Leman also appreciated the efforts that went into                                                                       
the bill. He stated that the thought the total package                                                                          
spent more money than he would have preferred but that no                                                                       
budget is ever perfect and that this bill accommodates many                                                                     
needs. He noted that many of Senator Adams's amendments                                                                         
were adopted and thus added funding.                                                                                            
                                                                                                                                
Senator Leman said he would support the motion to report                                                                        
the budget from Committee and he looked forward to                                                                              
continued work in the Conference Committee.                                                                                     
                                                                                                                                
Senator P. Kelly commented on the budget process saying                                                                         
that many people do not understand the tremendous amount of                                                                     
work done by legislative staff. He thanked his aide, Laura                                                                      
Glaiser personally. He talked about the long hours and the                                                                      
mistakes avoided through the hard work of staff members.                                                                        
                                                                                                                                
Senator Wilken associated himself with the previous                                                                             
remarks.                                                                                                                        
                                                                                                                                
Co-Chair Torgerson offered a motion to report from                                                                              
Committee, SCS CS HB 312, 1-LS1304/I, as amended by the                                                                         
Senate Finance Committee. There was no objection and the                                                                        
bill was REPORTED OUT.                                                                                                          
ADJOURNED                                                                                                                       
                                                                                                                                
Co-Chair Parnell recessed the meeting at 9:30 AM.                                                                               
                                                                                                                                
[Note: The Committee reconvened to consider other bills.                                                                        
Minutes for that portion of the meeting are separate.]                                                                          
SFC-00 (5) 3/31/00                                                                                                              

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