Legislature(2001 - 2002)
03/06/2002 09:08 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 06, 2002
9:08 AM
TAPES
SFC-02 # 29, Side A
SFC 02 # 29, Side B
SFC 02 # 30, Side A
CALL TO ORDER
Co-Chair Dave Donley convened the meeting at approximately 9:08 AM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Lyda Green
Senator Gary Wilken
Senator Donny Olson
Senator Lyman Hoffman
Senator Loren Leman
Also Attending: BOB STALNAKER, Information Systems, Division of
Administrative Services, Department of Environmental Conservation;
KEVIN BROOKS, Director, Division of Administrative Services,
Department of Fish and Game; MIKE NIZICH, Director, Division of
Administrative Services, Office of the Governor; JANET KOWALSKI,
Director, Division of Elections, Office of the Lieutenant Governor;
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services; BARBARA RITCHIE, Deputy
Attorney General, Civil Division, Department of Law; DEAN GUANELLI,
Assistant Attorney General, Criminal Division, Department of Law;
KATHRYN DAUGHHETTE, Director, Administrative Services Division,
Department of Law; KAREN MORGAN, Director, Division of
Administrative Services, Department of Public Safety
Attending via Teleconference: From Anchorage: PATRICK GALVIN,
Director, Division of Governmental Coordination, Office of the
Governor; RANDY CRAWFORD, Colonial, Director, Division of Alaska
State Troopers, Department of Public Safety
SUMMARY INFORMATION
SB 292-SUPPLEMENTAL APPROPRIATIONS
The Committee heard from the Department of Environmental
Conservation, the Department of Fish and Game, the Office of the
Governor, the Department of Law, and the Department of Public
Safety. The bill was held in Committee.
SENATE BILL NO. 292
"An Act making supplemental and other appropriations; amending
appropriations; making appropriations to capitalize funds; and
providing for an effective date."
Department of Environmental Conservation
Section 6
Amend the FY 02 appropriation made by Sec. 89. Ch. 61 for
implementation of the cruise ship bill to correct the fund
source from statutory designated program receipts to the
Commercial Passenger Vessel Environmental Compliance Fund.
$0.0
BOB STALNAKER, Information Systems, Division of Administrative
Services, Department of Environmental Conservation, testified this
is a technical item intended to align the appropriation for the
commercial passenger vessels environmental compliance program with
the funding source.
Department of Fish and Game
Section 8 (a)-(b)
Capital Improvement Projects
$0.0 Receipt Supported Services to Statutory Designated
Program Receipts
KEVIN BROOKS, Director, Division of Administrative Services,
Department of Fish and Game, noted the six components in this
section. He explained that, in recent years, certain capital budget
projects were funded from the Commercial Fisheries Limited Entry
Commission (CFEC) fund, which had an estimated income of
approximately $4.9 million. However, he noted that revenues dropped
to $4.3 million and the capital projects were subsequently short-
funded $603,500. As a result of these events, he stated, this
request is to change the funding source to statutory designated
program receipts (SDPR). He noted three of the six components
relate to deferred maintenance.
· Change fund source on $28,200 due to shortfall in CFEC
collections - Dock replacement in King Salmon.
Mr. Brooks stated this is an ongoing project to repair the facility
used by the Department of Fish and Game and the Department of
Public Safety.
· Change fund source on $78,800 due to CFEC shortfall -
Statewide facilities repair and maintenance.
Mr. Brooks noted the Department requests funds for these activities
annually and the Legislature typically funds ten percent of the
identified need. Therefore he stated, a backlog of projects must be
addressed, and the fund source change would assist in the efforts.
· Change fund source on $145,000 due to CFEC shortfall -
Upper Cook Inlet and Kuskokwim River Coho projects.
Mr. Brooks reminded the original appropriation for this item was
$500,000 and that two years of fieldwork have since been completed.
He expressed the intent is to complete the project in the upcoming
summer.
· Change fund source on $63,000 on FY 01 CIP project due to
CFEC shortfall - Copper River (Miles Lake) Sonar.
Mr. Brooks informed that lower water levels the previous fall
allowed workers to access the river bottom and perform the
necessary concrete work. He remarked this request would enable
completion of the river bottom work and the installation of the
sonar equipment to complete the project.
· Change fund source on $88,500 due to CFEC shortfall -
Mariculture development program.
Mr. Brooks detailed this project of the Division of Commercial
Fisheries to develop fisheries. He told of the planning process
undertaken with the fishing industry and other interested
stakeholders. He said the requested funds would help complete the
process.
· Change fund source on $200,000 due to CFEC shortfall -
Vessel and aircraft repair and maintenance.
Mr. Brooks stated this item is an annual request for the Division
of Commercial Fisheries to address the maintenance backlog.
Senator Olson asked how many aircraft the Department operates.
Mr. Brooks replied the Division of Commercial Fisheries has four
aircraft.
Senator Olson asked how many are helicopters.
Mr. Brooks answered none.
Section 19
Miscellaneous Claims
$3,761.00 general funds
Mr. Brooks detailed this item is for stale-dated warrants and two-
year old invoices. He commented that this item is a fairly routine
request each year.
AT EASE 9:15 AM / 9:16 AM
Co-Chair Donley informed that the SDPR code is "invalid" because
the funds are actually tobacco bonds. He said the process would not
be a fund source change within the Department, but rather a
utilization of general funds. He stated the Committee would address
the technical matter.
Office of the Governor
Section 9(a)
Elections
Redistricting: add carryforward language for the remaining
balance of the $947,400 appropriation made in Sec. 20, Ch. 60,
SLA 2001
$0.0
MIKE NIZICH, Director, Division of Administrative Services, Office
of the Governor, testified this item relates to the election
redistricting efforts.
JANET KOWALSKI, Director, Division of Elections, Office of the
Lieutenant Governor, explained this request to change the lapse
date of the FY 02 appropriation is necessary because of delays in
receiving information from the Redistricting Board caused by
litigation. She stated information is not expected from the Board
until after June 2002. She detailed the process of drawing precinct
boundaries and mailing updated voter identifying cards reflecting
the new districts and precincts.
Senator Hoffman asked if a delay in mailing voter cards would
disrupt the election.
Ms. Kowalski replied a delay would cause confusion for voters. She
emphasized the Division is required by law to notify voters of
polling place changes.
Senator Hoffman noted that in many villages there is only one
location adequate to serve as a polling place.
Ms. Kowalski agreed the problem would more likely affect larger
communities.
Section 9(b)
Correct a drafting error in Sec. 36(c), Ch. 61 by adding
reference to fiscal year 2001.
$0.0
Mr. Nizich stated the original intent of this appropriation was to
allocate the funds over two fiscal years; however the final draft
of the FY 02 budget addressed only FY 02.
AT EASE 9:20 AM / 9:21 AM
Section 9(c)
Governmental Coordination
Change RPL 01-2-8022 Coastal Impact Assistance Program from
Operating to Capital
$0.0
and
Section 9(d)
CIP Governmental Coordination
Additional authorization for the Coastal Impact Assistance
Program.
$3,335,700 federal funds
PATRICK GALVIN, Director, Division of Governmental Coordination,
Office of the Governor, testified via teleconference from Anchorage
that the request in Section 9(c) is a follow-up of a request from
the prior year to accept federal funds from the Coastal Impact
Assistance Program. At that time, he noted, the Division was under
obligation of federal law to develop a statewide plan to detail how
the funds would be spent. He reminded that the Legislature
subsequently withheld the funding authorization until the plan was
submitted. He stated the plan was completed and presented to the
Legislative Budget and Audit Committee in September 2001 with a
request that the funds be added to the FY 03 operating budget. He
stated that the request now is to include the funds in the capital
budget. He told of the history of determining placement for this
funding.
Co-Chair Donley asked for details of the projects.
Mr. Galvin responded it is a three-year project. He continued
describing how the Division of Legislative Finance recommended to
the Legislative Budget and Audit Committee that the funding be
requested in the FY 02 operating budget and then transferred to the
capital project.
Mr. Galvin described the capital project as "sort of collection of
the projects contained in the Coastal Impact Assistance Plan"
approved the previous fall by the US National Oceanic and
Atmospheric Administration (NOAA). He pointed out the Legislative
Budget and Audit Committee authorized approximately two-thirds of
the appropriation and omitted some projects that are included in
Section 9(d). He stated the reason for transferring the funds from
the operating budget to the capital budget is to allow expenditure
over three years.
Co-Chair Donley again asked what are the projects.
Mr. Galvin responded the project includes a "Coastal Information
System", designed to provide a "single point of entry for users who
would like to access the variety of information" currently
contained in several state, federal and local government agencies.
Mr. Galvin listed the Coastal Resource Inventory as another related
project that would allow identification of the aforementioned
information. He stated funds are designated for the Department of
Fish and Game to allow continue efforts to catalog anadromous fish
streams. Additional funds, he said, are intended for development of
regional coastal planning for areas of the State not currently
covered by coastal management plans due to absence of a regional
planning body. He also noted some funds are reserved for coastal
districts to improve existing coastal management plans and a "large
amount of money" was set aside for competitive grants to State and
nonprofit organizations for a variety of restoration and education
programs associated with coastal waters. He noted the competitive
grants are specifically addressed in Section 9(d).
Mr. Galvin continued that the Legislative Budget and Audit
Committee did not approve two other items included in the plan:
funding for an oceans and watershed symposium scheduled in June
2002, and remainder money for implementation of the entire Coastal
Impact Assistance Program. He requested that the funds identified
for these projects be transferred to the competitive grant fund. He
informed that more requests and proposals were received than were
anticipated.
Senator Hoffman assumed the list of the proposals was included as
part of the plan submitted to NOAA for approval. He asked if the
list includes only the projects approved for funding with the $4.6
million authorized by the Legislative Budget and Audit Committee or
whether the list reflects the $3.3 million supplemental budget
request. He assumed the three-year capital projects would be
administered by the Department of Natural Resources.
Mr. Galvin replied that the list submitted to NOAA included a full
description of the projects he listed. However, he noted the
Division did not have a complete list of the grant proposals at the
time the plan was submitted and therefore, NOAA allocated a funding
amount. He informed that the individual grant projects must be
submitted to NOAA for approval.
Mr. Galvin clarified that the grant program would not be
implemented or managed by the Department of Natural Resources, but
rather jointly by Department of Community and Economic Development
and the Division of Governmental Coordination.
Senator Hoffman requested a copy of the plan submitted to NOAA.
Mr. Galvin agreed to supply the information.
Senator Wilken requested details on the projects authorized by the
Legislative Budget and Audit Committee in September 2001.
Mr. Galvin replied that the projects he described above are those
approved by the Legislative Budget and Audit Committee and the
funds are included in the operating budget. He stated that the
federal funds reflected in Section 9(d) were intended for the
projects not approved by the Legislative Budget and Audit
Committee.
Co-Chair Donley asked if the Division has prioritized the grant
proposals.
Mr. Galvin replied the proposals are not yet prioritized, as the
proposals were recently received. He noted a process has begun to
rank the proposals.
Co-Chair Donley clarified the list reflects all the requests rather
than the projects the Division intends to fund. He surmised a
portion of the requested $3.3 million could be used to fund other
projects identified by the Division.
Mr. Galvin committed to funding only those projects contained on
the list of grant proposals.
Senator Ward asked the funding amounts requested for each grant
proposal.
Mr. Galvin assured this information, as well as total project
costs, would be provided.
AT EASE 9:39 AM / 9:41 AM
Senator Wilken and Senator Ward requested details of the five
projects included in the $4.6 million appropriation.
Mr. Galvin agreed to provide this information.
Co-Chair Donley informed that the Legislative Budget and Audit
Committee authorized funds for the operating budget because it does
not have authority to allocate funds for capital projects. He
commented the issue is whether this matter must be addressed as a
FY 02 supplemental appropriation or included in the FY 03 capital
budget. He recommended including the items in the capital budget
process.
Senator Hoffman pointed out that the Legislative Budget and Audit
Committee authorized expenditure of up to $4.6 million and it would
be necessary to know how much of that amount would be expended
before June 30, 2002.
Department of Health and Social Services
Section 10(a)(1)
Adult Public Assistance
Formula program caseload growth
$541,000 general funds
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, reminded that this
program provides support for poor, disabled, elderly or blind
Alaskans. She noted a low-income participant must be over the age
of 64, or at least 18 years of age and have a diagnosed disability.
She informed that the program that provides payments to 14,595
individuals each month.
Ms. Clarke recalled the original budget request reflected a $1.8
million increase to the program based on the Department's estimates
of need. She reminded that the Legislature had funded $630,000 of
the requested increase, which would have underfunded the program
$1.2 million. However, she pointed out this supplemental request is
considerably less than that amount, which is due to an
overestimation of the need, as well as $60,000 dividends paid to
shareholders of the Cook Inlet Regional Native Corporation (CIRI).
This, she stated, resulted in a caseload reduction and she noted
many participants who received this dividend have not returned to
the program.
Section 10(a)(2)
Board on Alcohol & Drug Abuse
Cost of co-locating with AK Mental Health Board
$40,900 Mental Health Trust Authority Authorized Receipts
(MHTAAR)
Ms. Clarke relayed that an opportunity arose to co-locate the two
boards in Juneau. She stated that some clients are served by both
boards and that efficiencies could be realized.
Section 10(a)(3)
Bureau of Vital Statistics
Increased receipt supported services authority so general
funds can be transferred to Community Health/Emergency Medical
Services for two-way radio costs.
$75,000 receipt supported services
Ms. Clarke pointed out that the Bureau is generating more revenue
than budgeted and this request would release general funds that
could then be used within the same appropriation for the Emergency
Medical Services (EMS) System. She told of an "issue" of the past
four to five years with increasing chargebacks to the Department of
Administration. She noted the EMS is funded primarily with general
funds and there is no funding flexibility.
Ms. Clarke explained that in the 1980s, when the State invested in
EMS communications, the State was required to pay the chargebacks
to allow the system to continue operations. However, she stated
that other users of the communication system, including the
University of Alaska and the Alaska Railroad, discontinued payment
to the system, although the fixed costs remain. She stated that
rates have increased 40 percent and that a proposal to hold the
State harmless and freeze the rates did not materialize.
Ms. Clarke emphasized the EMS communication system is "for the
protection of the public" and that there is no option to reduce
services.
Section 10(a)(4)
Foster Care Special Needs
Shortfunding of formula program from caseload growth
projections
$304,000 general funds
Ms. Clarke explained this program reimburses foster care parents
for one-time expenditures for "special items", particularly for
children with special needs. She gave as example helmets for
children who cannot control their head movements.
Ms. Clarke reminded that the Legislature funded $557,000 less than
the requested amount although a portion has been offset by declines
in other foster care program expenditures. She stated the
reductions are a result in the increased base rate paid to foster
care families.
Ms. Clarke shared that the Department is continuing to review
foster care program forecasts and noted additional savings could be
realized in March 2002, when the calculations are completed.
Section 10(a)(5)
General Relief Assistance
Formula program growth
$190,700 general funds
Ms. Clarke stated this program has two main purposes: approximately
76 percent of the funds are utilized for burial of indigent people,
and the remaining funds are for emergency services to pay landlords
and prevent eviction of qualified indigent residents. She noted
this program has been in operation since territorial days. She
shared the supplemental request is necessary because the
Legislature had established the FY 99 expenditure of $800,000 as a
base, although the average annual expenditure is approximately $1
million. She stated that in FY 00 and FY 01 the Department was able
to transfer excess funds from other programs, but that this is not
an option in the current fiscal year. She spoke to the importance
of this program and expressed, "Frankly, I'm not sure what we would
do if we don't get this money."
Section 19
Miscellaneous Claims
$21,499.91 general funds
Ms. Clarke indicated this is a similar request to that of other
departments.
Section 10(b)
Community Health/EMS
Correct HB 228 Sale of Tobacco Products fiscal note fund
source from Tobacco Settlement to Tobacco Use Cessation and
Education Fund
($487,900) general funds
$487,900 Tobacco Use Cessation & Ed fund
Ms. Clarke reminded that the Legislature had established the new
fund source the previous year to reflect the decision to expend 20
percent of tobacco settlement funds for tobacco cessation and
prevention programs. She surmised that the current accounting was
an oversight.
Department of Law
Section 11
Judgments and Claims $816,486,8500
$631,500 general funds
$185,000 PERS Fund
BARBARA RITCHIE, Deputy Attorney General, Civil Division,
Department of Law, detailed some of the cases included in this
Section as numbered in the supporting documents provided by the
Department [copies on file].
Item #2
Case Name: ACLU
Planned Parenthood of Alaska et. all vs.
Commissioner Perdue/Department of Health and
Social Services
Description: Challenge to legislative elimination of
funding for the General Relief Medical Program
Date: 10/9/99; 01/05/01; 09/20/01
Amount: $236,026.16
Interest: $ 33,882.51
Total: $269,908.67
Ms. Ritchie gave a history of the lawsuit relating to the
elimination of funding after 1998 for therapeutic or medically
necessary abortions for poor women who qualify to receive Medicaid
benefits. She explained the three judgments awarded for summary
judgment by the superior court, discovery and contempt of court
judgments, and the appeal to the Alaska Supreme Court.
Ms. Ritchie informed that the case was brought by Planned
Parenthood of Alaska and two medical doctors, who argued that
failure to pay for these abortions violates the Alaska
constitutional rights of Medicaid eligible women. She noted the
superior court agreed with the plaintiffs and the Alaska Supreme
Court affirmed that decision, based primarily on equal protection
grounds rather than right to privacy.
Ms. Ritchie noted the State did not prevail on any major issues,
although it did prevail on the initial motion for a temporary
restraining order, the contempt of court proceedings, as well as
reducing the costs claimed by the plaintiffs. She explained the
State was unsuccessful in arguing that the doctors in the suit do
not qualify as public interest litigants.
Co-Chair Donley asked if the argument was used that the doctors are
not public interest litigants because they financially benefit from
the performance of the abortion procedures.
Ms. Ritchie affirmed.
Co-Chair Donley explained that the doctors in this case had a
financial interest in the outcome. Therefore, he said, the State
argued they were not public interest litigants and subject to
reimbursement.
SFC 02 # 29, Side B 10:01 AM
Ms. Ritchie noted the court had to determine whether the doctors
had significant financial incentive to file the lawsuit, regardless
of whether they had issues of "general importance". She stated that
the court ruled that the doctors did not have such significant
financial interest. She explained that the court found in
reviewing the revenues of the practices, that the amount of income
generated from the State-funded abortion services accounted for an
insignificant percentage of the income and therefore the reason for
bringing the lawsuit was not economically motivated.
Item #3
Case Name: Foster, Pepper, Rubini & Reeves
ACLU vs. State
Description: Challenge to 1996 campaign finance reform
legislation
Date: 04/27/00; 08/30/01
Amount: $107,954.28
Interest: $ 23,706.39
Total: $131,660.67
Co-Chair Donley commented that this case is the "poster child for
what's wrong with our current [Alaska] Supreme Court as far as it's
interpretation of public interest litigants fees". He explained
that in this case, the plaintiffs lost approximately 80 to 90
percent of the causes; however, the Court awarded full
reimbursement of fees. He noted that federal courts have overruled
the Alaska Supreme Court on part of this decision.
Ms. Ritchie agreed with "the sum total" of Co-Chair Donley's
assertion, but not necessarily the characterization. She described
the case as a challenge to the entire legislation, and although the
court upheld the constitutionality of most of the bill, there were
some provisions in which the State did not prevail. She stated the
superior court then determined that the plaintiff was the
prevailing party and subject to reimbursement, which the State
appealed. She continued that the State received a memorandum of
opinion and judgment, which is not a published opinion and
therefore could not be cited as precedent. This memorandum, she
said affirmed three justices to one, the decision that the
prevailing party was the public interest litigant.
Co-Chair Donley remarked this practice is the result of an earlier
court decision finding that if the public interest litigant
prevails on any portion of suit the party could receive
reimbursement of the entire costs. He asked if any other state
operates in this manner.
Ms. Ritchie was unsure.
Co-Chair Donley interpreted the finding as a "massive escalation of
costs for public interest litigants". He surmised that other states
have "not found [this] necessary". He asserted the Alaska Supreme
Court created a new law and "frankly, I think it's an outrage. I
think it's an abuse of judicial power and we're stuck with the
bills." He opined that public interest litigants should receive
fair compensation for the issues in which their party prevails but
not for the points lost.
Senator Hoffman asked about the 10.5 percent interest rate, which
he surmised is excessive compared to the judgments in the other
cases.
KATHRYN DAUGHHETTE, Director, Administrative Services Division,
Department of Law, testified the interest rate paid on judgments is
defined by statute. She explained the interest rate of 10.5 percent
is imposed on cause of actions dated prior to August 1997. She
noted that after this date, statute was amended, setting the
interest rate at three points above the current federal interest
rate.
Senator Hoffman asked if the 10.5 percent interest rate is
applicable until the judgment is satisfied.
Ms. Daughhette answered yes.
Co-Chair Donley commented that in this case, he agreed with many of
the plaintiff's arguments, which the court ruled against and
federal courts ruled in favor.
Item #4
Case Name: Steven D. Smith, P.C.
Child Support Enforcement Division vs. Ragula
Description: Child support lien and withholding lien vs.
attorney's lien
Date: 6/30/00; 9/27/01
Amount: $2,344.08
Interest: $ 268.48
Total: $4,612.56
Ms. Ritchie stated the primary issue in this case relates to
whether a child support lien and a withholding order took priority
over an attorney's lien that was improperly reported. She stated
this case was originally heard in district court, and then appealed
to the superior court, where the ruling was reversed. She noted the
Alaska Supreme Court denied the petition for review and refused to
hear the case.
Ms. Ritchie commented that the Department disagrees with the final
ruling and is awaiting an opportunity to reargue the merits. She
remarked that the issue of competing priorities of different liens
and child support obligations is common.
Item #1
Case Name: Darryl Thompson & Verne Rupright
Doe vs. Otte
Description: Challenge to sex offender registration
legislation
Date: 09/04/01
Amount: $40,115.37
Interest: $ 2,957.55
Total: $43,072.92
Ms. Ritchie informed this case has been withdrawn. She reminded
that the US Supreme Court recently ruled on a similar matter.
Item #6
Case Name: Hagas, Ahearn, McLaughlin & Webb
Herold vs. State
Description: Wrongful termination
Date: 1/2/02
Amount: $80,000.00
Interest: $0.00
Total: $80,000.00
Ms. Ritchie explained this case involves a doctor employed by the
Department of Corrections for approximately three months before his
employment was terminated. She shared that the former employee
claimed whistleblower status, while the Department maintains the
doctor engaged in actions without approval of his superiors after
specific instructions to do otherwise. She spoke of the difficulty
in determining the actual events and motivations in this type of
situation and that as a result, the State decided to settle the
lawsuit.
Ms. Ritchie noted the Department has subsequently been provided
information regarding whistleblower situations and given
suggestions on how to operate in future instances.
Co-Chair Donley asked if the Department exercised normal discipline
procedures in this case or whether the individual was simply fired.
Ms. Ritchie was unsure.
Co-Chair Donley commented the Department of Law should be educating
State managers on employment law and practices to prevent lawsuits.
He wanted to know if the correct procedures were followed and if
not, whether the supervisor was disciplined for failure to do so.
Ms. Ritchie was unsure an offered to research the matter.
Co-Chair Donley intended to hold another Committee hearing on this
case with the manager who made the firing decision present to
explain the situation. Requested
Senator Olson asked if the physician's activities suggested
malpractice and whether the State medical board is involved.
Ms. Ritchie did not know.
Item #7
Case Name: Alaska Legal Services
Quinhagak vs. State
Description: Substance jurisdiction over navigable rivers
Date: 09/30/96; 10/24/00
Amount: $82,525.07
Interest: $16,955.56
Total: $99,480.63
Ms. Ritchie summarized that this case relates to where federal
subsistence authority applies. She gave a history of the lawsuit
brought under federal law by the villages of Quinhagak and Good
News Bay, the Association of Village Council Presidents, Inc., and
individual Yupik seeking the right to harvest rainbow trout for
subsistence purposes. She stated that the State prevailed in the
claim that federal agencies do not have fisheries management
authority over all Alaska waters by virtue of the navigational
servitude. She explained that the plaintiffs had argued that the
navigable rivers are public lands under the Alaska National
Interest Lands Conservation Act (ANICLA) and that the federal
government, not the State, has subsistence jurisdiction over those
waters. She continued that the federal Ninth Circuit Court of
Appeals ruled that the authority of the federal agency extends to
navigable waters in approximately half of the State.
Ms. Ritchie spoke of extensive litigation over the issue of
attorneys' fees in this case. She detailed the attorney fees
related to the 1996 preliminary injunction, noting the State did
not intend to pay these fees until the injunction became permanent
in the event it did not. She pointed out the injunction was made
permanent in October 2000, and that there was additional litigation
over the amount of attorneys fees related to this action. She
informed the initial request for reimbursement was $448,000
allocated between the State of Alaska and the United States
governments; however the actual amount awarded from the State is
$82,000.
Ms. Ritchie noted that attorneys' fees in the amount of $70,000 is
still "in controversy" and has been appealed to the Ninth Circuit
Court of Appeals. She stated this amount is not included in this
supplemental budget request.
Senator Hoffman and Ms. Ritchie discussed the designation of
rainbow trout as a subsistence species and the dependence of the
residents of Quinhagak and Good News Bay on the trout.
Ms. Ritchie noted the emphasis of this case was the question of
State or federal management authority over particular rivers and
public lands.
Senator Hoffman understood that after the residents were denied
subsistence preference for rainbow trout, the lawsuit was filed
over management rights. He surmised the entire case could have been
avoided if the subsistence rights were granted.
Ms. Ritchie indicated she would research the matter.
Senator Hoffman opined this could be one case where federal
management is better than State management.
Section 12(a)
Law Office Assistant reclassification costs
$1,700 federal funds
$129,400 Inter-Agency Receipts
and
Section 12(b)
Fund the $214,400 general fund portion of the Law Office
Assistant reclassification costs with the reapportion of funds
within the Department of Law
$0.0
DEAN GUANELLI, Assistant Attorney General, Criminal Division,
Department of Law, noted the Department has several offices and
operates as a large law firm and subsequently it needs support
staff. He told of the high turnover rate for secretarial staff of
approximately 40 percent annually, primarily because the Department
is not competitive with the private sector. He reminded of a
reclassification study of other secretarial positions, which
resulted in secretaries without legal experience earning higher
salaries then those with legal secretary experience. As a result,
he said a union grievance was filed and a reclassification study
was conducted for legal secretary positions, which he pointed out,
had not been reviewed since 1969. He stated this study recommends
salary increases and that these supplemental budget requests are to
pay for those increases.
Mr. Guanelli stated this request was not considered during the
regular budget process because the study had not been completed. He
explained the funds would be reallocated within the Department from
the original appropriation for a lawsuit involving the Bank of
America.
Section 19
Miscellaneous claims
$27,060.49 general funds
Ms. Daughhette stated this item is for outstanding invoices from
prior fiscal years.
Department of Public Safety
KAREN MORGAN, Director, Division of Administrative Services,
Department of Public Safety, noted fuel increases affect many
components within the Department, many of which are beyond the
Department's control.
RANDY CRAWFORD, Colonial, Director, Division of Alaska State
Troopers, Department of Public Safety testified via teleconference
from Anchorage that the Department has made efforts to mitigate the
need for supplemental funding. He listed: maintaining vacant
positions, the delayed transfers of ten Alaska State Trooper
positions to the next fiscal year, reduced civilian training,
identification and elimination of excess telephone data lines, and
a vehicle fleet audit resulting in the elimination of ten vehicles.
He characterized these efforts as "robbing Peter to pay Paul" in
that the funds would be necessary in the following fiscal year. He
added that non-critical overtime and travel has been reduced.
Section 15(a)(1)
Alaska State Troopers
Increased fuel costs
$106,100 general funds
and
Section 15(a)(3)
Alaska State Trooper
Increased fuel Costs
$125,300 general funds
and
Section 15 (a)(11)
Fish & Wildlife
Increased fuel costs
$247,400 general funds
Col. Crawford spoke to the $1.43 per gallon average cost of fuel
and stated that although prices were expected to decline, they have
not. He noted that barged fuel destined for rural areas is paid in
advance.
Senator Hoffman asked if adjustments for the increased fuel costs
have been made in the FY 03 budget request.
Ms. Morgan answered yes.
Section 15(a)(2)
Alaska State Trooper-Prisoner Transport
Increased prisoner transports based on higher volume of cases
$172,900 general funds
Col. Crawford informed that though January 2002 the Department has
had a 16 percent increase over FY 01 in prisoner transports within
the State. He surmised this increase is a result of more arrests
occurring due to federally funded training of Village Public Safety
Officers (VPSO) provided by the Department.
Section 15(a)(4)
Alaska State Trooper Detachments
Recruitment Academy Training
$125,300 general funds
Col. Crawford spoke of the average 1.5 percent monthly turnover
rate of retiring Alaska State Troopers equaling approximately 18
per year. However, he noted that since 1996, almost 50 Troopers are
eligible for retirement at any given date and in the previous year,
11 additional Troopers retired.
Col. Crawford emphasized that one year of training is required of
new recruits and that positions would remain vacant if students
were not attending the Alaska State Trooper Academy.
Section 15(a)(5)
Alaska State Trooper Detachments
Standby pay due to heightened security
$67,500 general funds
and
Section 15 (a)(6)
Alaska State Trooper
Standby pay due to heightened security
$15,700 general funds
and
Section 15 (a)(7)
Village Public Safety Officers
Standby pay due to heightened security
$11,800 general funds
Col. Crawford testified these items are directly related to service
cost increases resulting from the events of September 11, 2001 and
the incidents of mail containing anthrax spores. He described the
Alaska State Trooper coordination with the Public Health Service
and municipal police departments to provide transportation of
specimens to the Public Health laboratory. He also told of a six-
hour closure of the U.S. Post Office in Fairbanks due to an anthrax
"scare".
Col. Crawford told of efforts made to reduce the expenses of
addressing these matters including the use of non-overtime eligible
supervisor personnel.
Senator Hoffman asked if VPSOs were utilized to address the anthrax
situation.
Col. Crawford replied that supervisors stationed in rural locations
were made available to receive shipments of specimens destined for
the public health laboratory as well as to answer questions. He
noted anthrax situations were addressed in Kodiak, Dutch Harbor,
and Cold Bay.
Senator Hoffman asked if specific anthrax threats occurred in these
communities.
Col. Crawford answered that suspicious packages were shipped to
these communities, intercepted by the airlines or by recipients,
and transported to the public health laboratory for testing.
Section 15(a)(8)
Alaska State Trooper Detachments
Emergency guard hires needed to guard offenders in areas with
no jails.
$59,000 general funds
Col. Crawford informed this item is related to the increases in
prisoner transportation expenses due to a higher arrest rates. He
explained that most small communities have no jail facilities and
that until the offender could be transported supervision is
necessary in the event of a fire, as well as to prevent escape or
suicide.
Section 18(a)(9)
Alaska State Trooper Detachments
Medical examinations costs for sexual assault/abuse cases
$30,000 general funds
Col. Crawford reminded the Committee of the statute enacted in
August 2000 that requires that medical expenses related to the
forensic examination of sexual assault victims be paid by law
enforcement agencies. He noted that before this, some hospitals
billed insurance companies and public health hospitals absorbed the
costs. He also relayed that the number of facilities equipped to
perform sexual assault forensic examinations has increased. This,
he stated, has resulted in an increased number of examinations
occurring, although there has not necessarily been an increase in
the number of reported sexual assaults. He added that the use of
forensic evidence collected during these examinations is helpful in
criminal conviction of the offenders.
Senator Hoffman asked the amount requested in the FY 03 operating
budget for this activity.
Ms. Morgan answered $87,500, and noted this supplemental request
has been amended to the same amount.
Section 15(a)(10)
Alaska State Trooper Detachments
Increased costs for two-way radio circuits
$102,400 general funds
Ms. Morgan stated this item is similar to a Department of Health
and Social Services request. She detailed that the microwave system
that services the State's roadways has become increasingly more
expensive. She informed that the rates have increased approximately
40 percent for several reasons. She stressed that both Emergency
Medical Services personnel and Alaska State Troopers rely on this
service and that there are no other options available.
Section 15(b)
Batterers
Fund source change to correct the overallocation of PFD felon
funds in FY 02.
$63,900 general funds
($63,900) PFD funds
Ms. Morgan explained that when this supplemental request was
originally submitted, it was predicted there would be insufficient
funds available from the inmates' forfeited permanent fund
dividends. However, she informed, it has been determined that
adequate dividend funds are available for the necessary program
expenses and a general fund appropriation would not be necessary.
SFC 02 # 30, Side A 10:49 AM
Section 19
Miscellaneous claims
$293.88 general funds
Ms. Morgan presented this item.
ADJOURNMENT
Co-Chair Dave Donley adjourned the meeting at 10:50 AM
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