Legislature(2001 - 2002)
04/25/2002 08:04 PM Senate FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 25, 2002
8:04 PM
TAPES
SFC-02 # 78, Side A
SFC 02 # 78, Side B
SFC 02 # 79, Side A
SFC 02 # 79, Side B
CALL TO ORDER
Co-Chair Dave Donley convened the meeting at approximately 8:04 PM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Loren Leman
Senator Lyda Green
Senator Gary Wilken
Senator Alan Austerman
Senator Lyman Hoffman
Senator Donald Olson
Also Attending: ANNALEE MCCONNELL, Director, Office of Management
and Budget; MARGARET PUGH, Commissioner, Department of Corrections;
DWYANE PEEPLES, Director, Division of Administrative Services,
Department of Corrections; DAN SPENCER, Director, Division of
Administrative Services, Department of Administration; JEFF BUSH,
Deputy Commissioner, Department of Community and Economic
Development; KAREN REHFELD, Director, Education Support Services,
Department of Education and Early Development; FRANK RUE,
Commissioner, Department of Fish and Game; JANET CLARKE, Director,
Division of Administrative Services, Department of Health and
Social Services; BARBARA RITCHIE, Deputy Attorney General, Civil
Division, Department of Law; NICO BUS, Administrative Services
Manager, Administrative Services Division, Department of Military
and Veterans Affairs, and Division of Support Services, Department
of Natural Resources; GLEN GODFREY, Commissioner, Department of
Public Safety; KURT PARKAN, Deputy Commissioner, Department of
Transportation and Public Facilities; DAVID TEAL, Director,
Division of Legislative Finance;
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
HB 403-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 404-APPROP: MENTAL HEALTH BUDGET
The Committee considered amendments to a committee substitute and
the bills moved from Committee.
SENATE CS FOR CS FOR HOUSE BILL NO. 403(FIN)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for an
effective date."
CS FOR HOUSE BILL NO. 404(FIN)
"An Act making appropriations for the operating and capital
expenses of the state's integrated comprehensive mental health
program; and providing for an effective date."
The Committee considered amendments to SCS CS HB 403 (FIN), 22-
LS1295\R, which was adopted as a working draft at the previous
hearing.
Department of Community and Economic Development
C&ED #1: This amendment changes the funding source of $160,000
general funds to Inter-Agency (I/A) Receipts for the Community
Assistance & Economic Development Budget Request Unit (BRU),
Community and Business Development component on page 6 lines 13 and
14.
Co-Chair Kelly moved for adoption.
Co-Chair Donley noted this amendment involves a fund source change
and has a net zero affect.
There was no objection and the amendment was ADOPTED.
Department of Health and Social Services
H&SS #1: This amendment adds $204,300 general funds to the State
Health Services BRU, Emergency Medical Services (EMS) Grants
component, and $204,300 general funds to the Community Health
Grants component on page 21 lines 16, 17 and 18. Accompanying
explanatory language reads as follows.
This amendment moves $204,300 from Community Health Grants to
EMS Grants. The Community Health Grants line is larger and can
more readily absorb a cut of this size. In addition the
Community Health Grantees are receiving increasing amounts of
federal and other funds to make up the general fund shortfall.
Co-Chair Kelly moved for adoption.
Co-Chair Donley stated this is a technical amendment and also has a
net zero affect.
The amendment was ADOPTED without objection.
Department of Labor and Workforce Development
L&WD #1: This amendment deletes $8,900 general funds from the
Employment Security BRU, Employment Services component on page 23
line 18, and adds $8,900 general funds to the Labor Standards and
Safety BRU, Mechanical Inspections component on page 24 line 9.
Accompanying explanatory language reads as follows.
This technical amendment corrects an error made in the
previously approved amendment titled MULTI #1, which reduced
the Mechanical Inspection component by $110,000. The $110,000
reduction to Labor and Workforce Development should have been
a reduction of $101,100 in the Mechanical Inspection component
for FY 03 Governor increases to this component (funded by
Senate Finance Subcommittee) and a reduction of $8,900 for FY
03 Governor increases in the Employment Services component.
Co-Chair Kelly moved for adoption.
Co-Chair Donley informed the Committee that this net zero amendment
is offered at the recommendation of the chair of the Department of
Labor and Workforce Development budget subcommittee.
Without objection the amendment was ADOPTED.
ANNALEE MCCONNELL, Director, Office of Management and Budget
testified that significant improvements were made with the adoption
of MULTI #1 at the previous hearing, but stressed that funding to
other programs need to be addressed because "we are not holding the
line on services for Alaska for the coming year." She noted that
testimony from representatives of other State agencies at this
hearing would focus on those areas in which the proposed amount of
funding would be inadequate to maintain the current level of
services.
Ms. McConnell reminded the Committee of the approximately $80
million in increased costs during the previous year and replacement
of one-time funding sources. She noted these increases "were for
the most part accepted in last year's budget." She indicated that
approximately $15 million of the increases involved replacement of
one-time federal or other funds no longer available in the current
fiscal year. She compared this to the approximately $43 million
that would no longer be available for appropriation in FY 03,
including federal grants for beds in corrections and halfway house
programs, and federal funds for Medicaid Pro-Share.
Ms. McConnell pointed out additional expenses would be incurred in
FY 03 for negotiations of labor contracts and private contracts for
goods and services, including bulk fuel purchases. She warned that
if sufficient funds are not appropriated for these fixed cost
increases as well as to compensate for inflation, "you are actually
going backwards with respect to programs." She noted this impacts
all State services and the University of Alaska.
Ms. McConnell expressed that consideration should be made that
"holding the line can mean one of two things: it can mean holding
the line on general fund dollars, or it could mean holding the line
on the services that we provide to the State." She opined that the
previous year, the Committee experienced a significant amount of
"public support and pride" in the budget efforts. She surmised this
public support would continue if necessary adjustments were made
this year to provide for the increased costs to maintain existing
levels of service.
Ms. McConnell qualified that her statements are not intended to
indicate that Governor Tony Knowles finds it unimportant to make
improvements to K-12 education, the University, and child
protection.
Department of Corrections
MARGARET PUGH, Commissioner, Department of Corrections, informed
that the $1 million funding increase provided in MULTI #1, raised
the total appropriation for the Department to $8 million below the
amount requested by the Governor. She noted this is $7 million less
than is necessary to maintain existing service levels and $6
million less than the amount appropriated in FY 02. She stated that
the $1 million addition would assist in funding the therapeutic
courts program, medical program expenses, longstanding shortfalls
of the Parole Board, and annualizing the costs of renewed halfway
house contracts.
Ms. Pugh noted the current total appropriation includes: $7 million
to replace federal funds, $1.7 million to fund salary increases as
required in employee contracts, $1.9 million for a new jail, and
$1.5 million for medical expenses. She emphasized this funding
level "does not give any consideration to the growth in the
population that we expect for next year," and that the Institutions
and the Probation Offices components would receive $3.2 million
less than needed. She requested the Committee's assistance to
assure "the people of Alaska that the public is protected by the
job that the Department of Corrections does." She spoke of the
statutory obligation of the Department to protect the public.
Senator Ward reminded that DNR #1, an amendment that was
incorporated into MULTI #1 and adopted at the previous hearing,
utilized $300,000 program receipts to replace general funds
appropriated to the McKinley Meat Packing Plant. He relayed that
Mr. Peeples informed him that $80,000 of this amount would be
expended for a correctional officer position that would be
transferred to Palmer. Therefore, Senator Ward stated that $220,000
general funds are available for other Departmental purposes. He
asked if this would provide flexibility to the Department.
DWYANE PEEPLES, Director, Division of Administrative Services,
Department of Corrections, understood the appropriation was made
from a revolving loan fund program to the Department of Natural
Resources, and that an arrangement would be made to transfer the
services of the correctional officer positions. He pointed out that
two correctional officers are necessary to provide supervision to
maintain the historical level of inmate labor at the Plant. He
stated that the annual expense of each correctional officer
position is approximately $60,000.
Ms. Pugh informed Senator Ward that the $220,000 would be most
useful to the Department of Corrections if it is appropriated to
the Division of Institutions rather than the Correctional
Industries component as the operations of the meat packing facility
would be transitioning to the private sector.
Mr. Peeples affirmed this point.
Senator Hoffman remarked, "We are well aware as Democrats, that
there does exist a major deficient in the operating budget this
year, and has been for quite some time." Therefore, he assured that
none of the amendments offered by he or Senator Olson would expand
the programs recommended by the Governor. However, he expressed
that the services currently provided to Alaskans in the FY 02
budget should be maintained. He furthered that the Committee's
minority members would not propose increased spending with the
exception of contract costs, increased fuel costs, as well as
maintaining the existing number of employees.
COR #1: This amendment adds $3,324,400 general funds to the
Administration and Operations BRU, Office of the Commissioner
component on page 8 line 33. Accompanying explanatory language
reads as follows.
These funds will be allocated to Divisions of Institutions and
Community Corrections to provide funds to support: 45
Correctional Officers, 5 Adult Probation Officers, 2
Correctional Industries Managers, and 1 Administrative Support
positions. These existing positions support a statewide prison
population that is a 105% today and growing. Without these
positions, virtually every state institution will not meet
their minimal post levels and this will jeopardize the safety
and security of Institutions prisoners and staff. If the
Department were to reduce Probation Officers while the number
of offenders on probation/parole continues to increase, there
would be an impact on public safety. This will also keep open
all inmate work programs.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
Senator Olson added that given the increasing prison populations
and decreased number of personal, there is concern for people
working inside inmate facilities. He shared that as a physician who
has worked in a prison, he was concerned for his safety and relied
on correctional officers to maintain a safe environment. He
cautioned that without a safe environment, it would be difficult to
attract "quality people" to work at the facilities.
Co-Chair Donley asked the amount the committee substitute currently
provides for this component over the amount approved by the House
of Representatives.
Senator Ward answered that including the unallocated reduction, the
Senate is funding $7.2 million more than is contained in the budget
passed by the House of Representatives.
Senator Hoffman asserted that it is unfair to use the budget
approved by the House of Representatives as a benchmark. He relayed
that the Democratic members of the House of Representatives claimed
that budget was so flawed it did not warrant attempts to change,
and therefore the Minority offered no amendments.
Co-Chair Donley understood the argument that additional funds would
be necessary to accommodate the increased expenses in the
Department of Corrections. However, he noted the version before the
Committee is an increase over the appropriation of the prior year.
Senator Ward commented, "If we had more money, we certainly could
spend it on this." However, he stated that as chair of the
Department of Corrections budget subcommittee, he prioritized
within the spending limitation imposed by the Senate Majority. He
opined that according to his projections of inmate population, the
amount appropriated to the Department is adequate to ensure safety.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #2: This amendment adds $432,300 general funds and $28,000
Receipt Supported Services funds to the Administration and
Operations BRU, Institution Director's Office component on page 9
lines 14 and 15. Accompanying explanatory language reads as
follows.
This funds the second year of Chapter 60 SLA 2001, Page 39,
line 6-8 (HB 132) passed by the Legislature last year. This
bill was an Act relating to possession, distribution,
importation, and transportation of alcohol in a local option
area, etc. The funds are needed to cover the costs of
incarceration of new felons convicted of violating the
provisions of this legislation. Funding will be distributed by
the Director's Office to individual institutions as necessary
to cover the impact of the legislation. Without these funds,
approximately 7 correctional officers would have to be cut,
increasing the forced vacancy in the Division of Institutions.
This action would further jeopardize the safety and security
of Institutions prisoners and staff.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the accompanying language into the record.
Senator Hoffman informed that he supported passage of HB 132 the
previous year, because "I knew that it was the right thing to do."
He furthered that HB 4, considered by the Committee at the previous
meeting, is also beneficial and demonstrates that the Legislature
is "tough on crime." However, he questioned the wisdom of not
funding provisions of the earlier legislation in its second year of
implementation. He suggested the Committee should "put our money
where our mouths are."
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #3: This amendment adds $1,910,800 general funds to the
Administration and Operations BRU, Inmate Health Care component on
page 9 line 8. Accompanying explanatory language reads as follows.
These funds will support both state permanent fulltime
positions and contract positions that are absolutely required
to provide medical, mental health and dental services to the
Department's Institutions and contract Community Residential
Centers. The Department admits approximately 30,000 offenders
annually into its institutions and the daily prisoner
population exceeds 4,600. Without these funds, the Department
will have to eliminate nursing staff and other important
health care services. The Department has made great strides in
implementing measures to contain medical costs and increase
health care efficiencies. However, without these funds the
Department's diligent efforts will be for naught, and their
ability to safely provide minimal health care services to
state prisoners will be seriously jeopardized.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
Senator Olson commented on the difficulty of health care delivery,
especially in a closed institution such as a prison system where
disease is easily spread. He warned that without adequate supplies,
control of infectious diseases including tuberculosis could "slip
away". He therefore urged the passage of this amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Halford and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman, Senator Ward, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #4: This amendment adds $207,100 general funds to the Community
Residential Centers BRU, Existing Community Residential Centers
component on page 10 lines 24 and 25. Accompanying explanatory
language reads as follows.
This funds the annualized cost of four renewed community
residential center contracts that were issued in FY 02 through
competitive bid. Contracts contained were: 85 beds at Tundra
Center (Bethel), 90 beds Glennwood Center (Anchorage), 31 beds
at Cordova House (Anchorage), and 75 beds at Glacier Manor
(Juneau). Without these funds, the Department will be required
to reduce halfway house beds from each of the contracts. Due
to the increased prisoner population, the Department does not
have adequate beds in institutions to provide housing for
these displaced offenders. Additionally, as culturally
relevant programming and offender supervision (i.e., house
arrest) program slots are included in these contracts, the
cost of these services may be impacted by reduction of beds.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #5: This amendment adds $761,100 general funds for the Out of
State Contracts BRU, Out-of-State Contractual component on page 10,
line 32. Accompanying explanatory language reads as follows.
Provides funds for continued placement of 30 offenders at the
Department's contract Central Arizona Detention Center.
Without these funds, the Department will need to hold these
prisoners in state facilities at an increased cost and
regardless of overcrowding that exists already. The Agency
anticipates a 4%-5% growth rate in the offender population
annually resulting in 150-200 more offenders coming into the
correctional system every year. Due to the lack of available
in-state institutional beds, the placement of prisoners in out
of state facilities is necessary to meet state service
demands.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record and
commented this amendment could be considered a cost-saving measure,
as inmates could continue to be housed in a relatively inexpensive
environment.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #6: This amendment adds $195,500 general funds and $37,400 I/A
Receipts for the Administration & Operations BRU, Community
Corrections Director's Office component on page 10 lines 9 and 10.
Accompanying explanatory language reads as follows.
This funds the second year of Chapter 60 SLA 2001 (HB 172)
passed by the Legislature last year. This bill was an Act
relating to therapeutic courts for offenders etc. These funds
are to cover the second year costs of the new Therapeutic
Court legislation. Funds will cover the cost of one new
probation officer in Anchorage, contractual services costs to
cover communication costs of new probation officers in Bethel
and Anchorage, and for leased office support equipment for new
probation officers. The equipment is essential for monitoring,
case tracking and reporting. General funds are also requested
to offset a loss of interagency funds provided from a federal
program for the VPSO monitoring program. These funds are no
longer available for the program and the Department would like
to maintain the VPSO probation services provided by these
funds.
Senator Hoffman moved for adoption.
Senator Ward and Senator Green objected.
Senator Hoffman read a portion of the explanatory statement into
the record. He referenced testimony provided to the Committee
asserting that this program is successful. He reminded that several
Committee members supported HB 172, the enabling legislation that
was adopted a year prior. He surmised that these legislators prefer
to campaign that they are "tough on crime"; however, he stressed
that to accomplish the intent of the earlier legislation, adequate
funding must be provided and that the Committee must "put money
where our mouths are". He suggested that if the Legislature was to
continue under-funding this and similar programs, the enabling
statutes should be repealed and the Legislature should stop
claiming to be tough on crime.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #7: This amendment adds $699,700 general funds to the
Administration and Operations BRU, Southcentral Region Probation
component on page 10 lines 12 and 13. Accompanying explanatory
language reads as follows.
Initiative Request to provide funds to implement the Dual
Diagnosis for Probationers and Parolees with Children Program.
This would create specialized caseloads for dual-diagnosed
offenders (men and women with both mental illness and
alcohol/drug abuse) with children to facilitate family
reunification and stability. Currently, the dual-diagnosis
population including the felony DWI population, is the fastest
growing group of probation/parole offenders. The Department of
Corrections 2000-2001 data shows that 67.6% of the identified
mentally ill offenders were intoxicated when they committed
their crimes. In DOC Institutions during the same year, there
were 10,133 mental health consultations and 77.1 % were
identified as substance abuse/alcohol disordered. The
department will need to hire additional Probations officers to
reduce already high caseloads and create specialized caseloads
for the dual diagnosis probationers and parolees with
children. This also provides funding for a new liquor license
application check/training passed last year.
This amendment was NOT OFFERED.
COR #8: This amendment adds $530,000 general funds for the
Administration and Operations BRU, Community Jails component on
page 10 line 8. Accompanying explanatory language reads as follows.
The funds are needed to pay 15 local governments for days when
state prisoners are held in the Community Jails. The Community
Jails program provides 55,845 man-days of incarceration
capability for the state prisoners pending arraignment,
commitment by a court, for admission to a State correctional
facility. Use of the local jail facilities includes pre-
arraignment, post-arraignment, and holding sentenced prisoners
up to 30 days. Due to legal process in the local Superior
Court and the difficulty of prisoner transport in Alaska, it
is not practical, nor is it desirable, to immediately
transport these State prisoners to a State correctional
facility. These funds will help stabilize the infrastructure
needs of the local jail facilities to meet their mission
objectives.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read a portion of the explanatory statement into
the record. He added that the Legislature has a legal obligation to
pay the expenses of State inmates while they are housed in local
government facilities.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
COR #9: This amendment adds $118,000 general funds for the Parole
Board BRU and component on page 10 line 22. Accompanying
explanatory language reads as follows.
These funds are needed to accommodate increased prisoner
hearings and Parole Board activity relating to mandatory,
discretionary and special medical parole releases and
revocations. A considerable increase in numbers of hearings
and parole activity has matched the growth in prison
population that has occurred in the past five years, and
expenditures incurred in meeting the Board's statutory
obligations have increased as a result. These funds are needed
to cover Parole Board member/staff travel and Board members
compensated time associated with the conduct of parole
activity statewide.
Senator Hoffman read a portion of the explanatory statement into
the record. He asserted that providing these funds could lead to a
decrease of prison overcrowding.
Senator Hoffman moved for adoption.
Senator Ward objected.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Senator Hoffman commented that eight of the nine appropriations
proposed in the Department of Corrections amendments could not be
readdressed by the budget Conference Committee.
Department of Administration
DAN SPENCER, Director, Division of Administrative Services,
Department of Administration, testified to the efforts of the
Department to maintain expenses, despite cost increases. He
specified the telecom-partnering agreement that would save State
agencies approximately $13 million over the five-year term of the
agreement and would also result in $29 million in private
investments to the State's telecommunication system.
Mr. Spencer appreciated the additional funding provided to the
Division of Motor Vehicles through the adoption of MULTI #1.
However, he qualified it would not cover the entire amount of
inflationary increases incurred by the Division, pointing out that
the announced postal rate increases would impact the Division by
$30,000.
Mr. Spencer spoke to the increased costs to the public broadcasting
system, reminding the Committee that State funding had decreased or
remained the same for the past several years.
Mr. Spencer stated that a proposed amendment relating to the
Pioneers' Homes only addresses salary increases and does not
address other cost increases, such as fuel or operational supplies.
Mr. Spencer noted a proposed amendment to the Alaska Public Office
Commission (APOC) budget would add funding for the election year
costs. He informed that this has been done in the past, and is
"basically a maintenance level" increase. He stated this amendment
would also fund the second-year implementation of campaign finance
legislation vetoed by the Governor and overridden by the
Legislature.
Mr. Spencer next explained the proposed amendment adding funding
for the Division of Finance is necessary to maintain the existing
payroll system while the Department selects a replacement system.
He noted the Department has also submitted a request for capital
funds to purchase the new system.
Mr. Spencer stated that the Public Defender Agency (PDA) has
requested supplemental funds for the FY 02 budget. He listed: fewer
investigators, reduced travel, and cooperation with the therapeutic
courts, as some of the steps the Agency has taken to "get the best
bang for the buck for the entire criminal justice system." He
informed that the PDA utilizes a case management system developed
by a Legal Secretary rather than an outside computer specialist.
Mr. Spencer continued that the Office of Public Advocacy (OPA) has
also requested supplemental funding for FY 02 of over $1.8 million.
He emphasized that, like the PDA, the OPA has continued to have an
increased caseload, although it has not received adequate funding
in initial appropriations and has required a supplemental
appropriation in 14 of the past 15 years. He stressed there is "no
way that the existing budget proposal before you" would allow the
Office to avoid an additional supplemental budget request "unless a
miracle happens, which we don't expect." He pointed out that the
court-appointed special advocate (CASA) program that handles
guardian ad litem cases and operates within the OPA, had 188
volunteers who served over 20,000 hours, which saved the State over
$750,000.
Mr. Spencer appreciated the State's budget situation, but stressed
that the population of Alaska is increasing, along with caseloads,
and costs. He remarked that in attempting to serve the entire
population with less funding, "it's like we're going backwards
while we're trying to improve."
Senator Hoffman asked the importance of the Department of
Administration's $293,000 request to for the AKPAY payroll
accounting system. He wanted to know the consequences of a system
failure and the subsequent inability for the State to "meet
payroll" and conduct other functions in a timely manner.
Mr. Spencer clarified that this item is included in ADMIN #6 and
replied that three additional programmers were hired to operate the
system because programming changes must be made daily to keep pace
with updated bargaining unit contracts, tax law changes, etc. He
furthered that the vendor of the existing system would soon
discontinue providing support. He stated that while a new system is
selected, the "underlying database management system" must be
converted to allow it to continue operating after the vendor stops
supporting the existing system. He projected a failure would impact
between $20,000 to $30,000 Alaskans and their families.
Senator Hoffman asked if a failure of this system would disrupt the
electronic transaction of paychecks and other warrants.
Mr. Spencer answered that it conceivably could.
Senator Hoffman announced the proposed amendment (ADMIN #6)
relating to the AKPAY system would not be offered, as it would
create a new budget component and the Senate Minority had committed
to not request funding for new programs or projects. [This
amendment is detailed below.]
ADMN #1: This amendment adds $204,300 general funds for the Alaska
Public Offices Commission BRU and component on page 5 lines 15 and
16. Accompanying explanatory language reads as follows.
This amendment restores funding for APOC to implement the
campaign disclosure law changes passed by the legislature as
an override of the Governor's veto of SB 103 (Election
Campaigns and Legislative Ethics). It would also restore
funding for election year activities, which has been included
in the budget in the past during statewide elections, and
cover some additional costs for positions.
Adopting this budget jeopardizes the Commission's ability to
disseminate information to the public in a timely manner
during the campaign. Campaign finance information is required
by law to be provided to the Commission before the election
but will most likely not be available until after the election
has occurred. Without funding for printing, training and
support staff, the Commission will be unable to assist
candidates and political groups to understand the changes to
the campaign disclosure laws, which will likely result in
costly complaints and substantial non-compliance.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record. He
noted that during the veto and veto override process the fiscal
note accompanying SB 103 was eliminated, resulting in an unfunded
mandate.
Senator Hoffman expressed, "What were we thinking? We spent all the
time to get this legislation passed. We thought it so important
that we challenged the Governor in his veto, and then in all of our
infinite wisdom, we don't appropriate the money."
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
ADMN #2: This amendment adds $2,126,900 general funds, $4,500 GF/PR
(Program Receipts), and $2,900 GF/MH (Mental Health) funds to the
Legal and Advocacy Services BRU, Public Defender Agency component
on page 5 line 12. Accompanying explanatory language reads as
follows.
This amendment restores the Public Defender's budget to an
amount that is $500,000 less than the about proposed by the
Governor. This would provide sufficient resources to maintain
services at the current year level as well as provide funding
for alcohol initiative fiscal notes, which were underfunded
last year. It will also provide funding for attorneys
representing parents in parental rights termination cases.
Funding for these positions was previously included in the
Department of Health and Social Services budget, but
eliminated in FY 02 without a corresponding increase in the
Public Defender budget.
The Public Defender is already shortfunded, needing
approximately $600,000 in supplemental funding for FY 02.
Accepting this budget means the Public Defender will need
another supplemental appropriation next year.
Right to counsel is a constitutional right provided to all
Americans, as stated in the US constitution and reiterated in
the Alaska Constitution in Article I, Section II. For those
unable to afford an attorney, the courts appoint a public
defender. Cases are assigned to the Public Defender Agency by
the courts and the Public Defender cannot refuse the cases.
When assigned a case, the agency must provide effective
assistance of counsel.
AND
ADMN #3: This amendment adds $2,271,100 general funds and $20,700
GF/MH for the Legal and Advocacy Services BRU, Office of Public
Advocacy component. Accompanying explanatory language reads as
follows.
This eliminates funding for the OPA to promptly compensate
contract attorneys for their services in both civil and
criminal representation of clients.
All OPA cases result from court appointments and OPA cannot
refuse to take them. For 14 of the last 15 years, OPA has had
to get supplemental funding to cover its costs. For FY 02, OPA
has a supplemental request for more than $1.8 million before
the legislature. There is no way OPA can hold to the
Subcommittee's proposed budget unless there is a huge,
completely unforeseen caseload drop. Nobody has forecast that;
in fact, OPA's caseload has been rising over the years. If
this budget is adopted, OPA will have to ask for a large
supplemental again next session.
Senator Olson moved for adoption of ADMN #2 and ADMN #3.
Senator Ward objected.
Senator Olson explained that the funds requested would be utilized
for contractual services of attorneys to represent defendants as
directed by the Alaska Court System. He cautioned that without
adequate funding, the agencies would "spiral down" in their ability
to advocate for the parties it represents. He read from the
explanatory statements.
SFC 02 # 78, Side B 08:50 PM
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendments FAILED to be adopted.
ADMN #4: This amendment adds $403,300 general funds and $234,100
GF/MH for the Alaska Longevity Programs Management BRU, Pioneers
Homes component on page 4 line 20. Accompanying explanatory
language reads as follows.
The Pioneers' Homes are currently operating with approximately
90 beds empty because staffing is insufficient to provide the
24-hour care that the people on the Pioneers' Home waiting
list need. If this $637,400 is not restored, the Pioneers'
Homes will have to hold more staff positions vacant, meaning
more beds will be held vacant. That will, in turn, result in
less revenue (Pioneers' Home Receipts), which will exacerbate
the GF cuts.
One of the Legislature's performance measures for the
Pioneers' Homes is the average number of vacant beds by level
of care and Pioneers' Home. The total effect of this cut will
be to force another 10 to 16 beds vacant. Most of these will
be in Anchorage because it is the only home large enough to
allow the reduction of staff necessary to meet the budget
reduction without having to close an entire unit.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson commented that each Committee member has aging
parents and could themselves become residents of the Pioneers'
Homes. He read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Green, Senator
Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
ADMN #5: This amendment adds $69,900 general funds for the Public
Communications Services BRU, Public Broadcasting-Radio component on
page 4 line 9. Accompanying explanatory language reads as follows.
This cut will mean the loss of an additional $130,000 in
federal matching funds. As many as 8 more full time jobs will
be lost because of this cut. Stations are already at minimum
staffing levels. Additional staff reductions could result in
elimination of local programming including news and public
affairs.
Public broadcasters have done more than their share to
eliminate all but the essentials from their own budgets. After
a decade and a half of state operating budget reductions, the
public broadcasting system in Alaska is delicately balanced to
the point where damage to any of its components risks the
collapse of the rest.
Public radio is not an amenity for Alaskan communities because
public broadcasting provides a unique and vital service as a
major cohesive force bringing the state together with news,
information and educational programming.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record. He
stressed the importance of public radio to broadcast reports of
inclement weather as well as relaying important messages to rural
communities with limited access to other forms of communication. He
spoke of the closure of the Kotzebue public radio station and the
subsequent decrease of communications in that region.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Green, Senator
Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
ADMN #6: This amendment adds $293,500 general funds for the
Centralized Administrative Services BRU, Finance component on page
2 line 21. Accompanying explanatory language reads as follows.
This amendment restores $225,600 requested to add three new
payroll system programmers and $67,900 to maintain the current
staffing level.
The State's payroll system, AKPAY, is 12 years old and the
software vendor has indicated that future maintenance releases
will no longer support the existing underlying database
management system. Before the next major maintenance update in
FY 03/FY 04, the State must convert the AKPAY database from
ADABAS to DB2. This is a very large project and is more than
existing staff can handle. Without additional programmers, the
probability of system failure is greatly increased.
The payroll system supports every activity of the State of
Alaska. Its importance is reflected in two of the divisions'
performance measures assigned by the legislature: system down
time and amount of penalty pay. In the case of system failure,
both of these measures will increase significantly.
This amendment was NOT OFFERED.
Department of Community and Economic Development (cont.)
JEFF BUSH, Deputy Commissioner, Department of Community and
Economic Development testified that the Power Cost Equalization
(PCE) program remains unfunded in the current version of the FY 03
operating budget. He pointed out that adoption of the proposed
amendments before the Committee would provide $15.7 million for
this program, or 85 percent of necessary funding and that pro-
rationing would be required.
Mr. Bush next spoke to concerns about the $284,000 unallocated
budget reduction to the Department and asked the Committee to
reduce or eliminate this decrease.
Mr. Bush then addressed a proposed amendment relating to the use of
Alaska Science and Technology Foundation (ASTF) funding for the
University of Alaska. He explained that the current committee
substitute provides that approximately $2.3 million of ASTF
endowment funds would be appropriated to the University. He stated
this would allow projects to be undertaken by the Foundation;
however, this would be the first time funds would be withdrawn from
the principle. He relayed concerns about this precedent and
expressed the fund should be protected "for the purpose it was
created."
Mr. Bush commented that C&ED #1, adopted earlier in the hearing
makes C&ED #4 unnecessary.
AT EASE 8:59 PM / 9:06 PM
C&ED #2: This amendment adds $15,700,000 general funds for the
Rural Energy Programs BRU, Power Cost Equalization component on
page 7 line 22. Accompanying explanatory language reads, "General
funds are needed in the Power Cost Equalization and Rural
Capitalization Fund to maintain the program.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson noted this amendment would provide the same amount
appropriated to this program the prior year. He emphasized this
program is vital to areas of the State where the expense of
electricity is "almost unaffordable" for many rural residents. He
informed that the costs have increased greatly, and that to
conserve energy, some residents have unscrewed the light bulbs in
their refrigerators.
Senator Hoffman furthered "this is a wonderful program."
Senator Leman noted it is anticipated that this program would be
funded "in another vehicle."
Senator Olson remarked that it is reassuring to hear from the
Senate Majority Leader and asked if the program would be fully
funded.
Senator Leman replied, "The PCE recipients would be adequately
taken care of."
Senator Olson commented "with all due respect" this reassurance
would not necessarily "keep the lights on" for many families and
elderly living in rural Alaska.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator Wilken
Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
This amendment FAILED to be adopted.
C&ED #3: This amendment adds $262,900 general funds, $9,300
GF/matching funds, and $11,900 GF/Program Receipts for the
Commissioner's Office BRU, Agency-Wide Unallocated Reduction
component on page 6 lines 6 and 7. Accompanying explanatory
language reads as follows.
$184,800 of the reduction is equal to the general fund year
three labor costs. If this unallocated reduction was taken
where the labor costs were incurred, we would make the
reductions in the following components, all of which would
have a difficult time absorbing the reduction and still
maintain an acceptable level of service.
When determining where the additional unallocated general fund
reduction of $99,300 would be taken, the Department attempted
to balance: (a) the year 3 general fund labor costs reduction,
(b) the subcommittee's intent language for no further
reductions to QTA; and (c) the assumption that reductions were
unacceptable in Revenue Sharing and Safe Communities. The only
BRU that has general funds and is unaffected by the above
conditions is the Rural Energy Programs BRU. This reduction
will force the program to cut back to a minimal preventative
maintenance schedule to rural electric systems and eliminate
on-site training to operators.
The unallocated reductions will be taken from the following
components:
• Community and Business Development ($96,800)
• Division of International Trade & Market
Development ($28,700)
• Division of Administrative Services/Commissioner's
Office ($49,000)
• Occupational Licensing ($10,300)
• Rural Energy Circuit Rider Program ($99,300)
Senator Olson cautioned about the impacts of unallocated budget
reductions and moved for adoption of the amendment.
Senator Ward and Co-Chair Donley objected.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
C&ED #4: This amendment adds $160,000 for the Community Assistance
& Economic Development BRU, Community and Business Development
component on page 6 lines 13 and 14. Accompanying explanatory
language reads as follows.
This amendment restores the $160,000 from the Division of
Community and Business Development's (CBD) FY 03 budget,
deleted through passage of amendment MULTI #1.
Apparently, the reduction was to be taken from the Alaska
Regional Development Organizations (ARDOR) program however,
the ARDOR program is funded with Interagency Receipts from the
Alaska Industrial Development and Export Authority (AIDEA).
If this amendment is not approved, the existing decrement will
result in the deletion of three positions: a developmental
specialist in Bethel and two Juneau based positions: a part-
time mining and minerals development specialist and an
administrative assistant.
This amendment was NOT OFFERED due to action taken on C&ED #1.
Department of Education and Early Development
KAREN REHFELD, Director, Education Support Services, Department of
Education and Early Development, testified that the six proposed
amendments are intended to restore funding for existing services at
current levels. She furthered that these amendments would allow the
Department to continue training programs at the Alaska Vocational
Technical Center (AVTC) in Seward, the Kotzebue Technical Center,
the State Museum and the State Library.
Ms. Rehfeld characterized E&ED #1 as addressing the greatest
concern relating to the statewide assessment program. She informed
that the Department is on schedule to implement the high school
graduation qualifying examinations for those students eligible for
a diploma in the class of 2004. She stated the funding is necessary
to continue a contractual relationship with McGraw-Hill to ensure
that students receive the "proper instruction" and an "appropriate
education". She also spoke to the data collection and compilation
required for this program.
Ms. Rehfeld then addressed an amendment to the language section of
the committee substitute that relating to funding for the Learning
Opportunity Grants. She appreciated the funding allocated with the
adoption of MULTI #1, noting it "is essential to providing our
instructional programs across the State, particularly to our
students that are struggling in meeting some of our State
standards." She expressed however, that this allocation should be
made through the public school funding program because the formula
accounts for school size and the cost of providing services.
E&ED #1: This amendment adds $1,070,600 general funds for the
Teaching and Learning Support BRU, Quality Schools component on
page 11 line 26. Accompanying explanatory language reads as
follows.
This amendment fully funds contract costs for ongoing
development and implementation of the High School Graduation
Qualifying Exam ($340,600), and expands the State's capacity
to provide for a meaningful school accountability system
($730,000).
The amendment enables the Department to implement AS 14.03.075
and AS 14.03.120-123 that requires students, beginning with
the Class of 2004, to pass all three parts of the High School
Graduation Qualifying Exam in order to receive a high school
diploma.
Further, the amendment provides the Department with the
capacity to meet the statutory data reporting requirements and
a designation of school performance based on such data. Four
new positions will provide the ability to collect, analyze,
validate, and report meaningful, consistent data that is
critical to the school accountability system.
Senator Hoffman moved for adoption.
Senator Wilken objected.
Senator Hoffman read the explanatory statement into the record. He
furthered that the Committee members have supported efforts to
establish education standards.
Senator Wilken pointed out that the $340,600 indicated in the
explanatory statement is the remainder of a $770,000 request for
on-going development and implementation of the high school
graduation qualifying examinations. He stated that along with
funding $429,400 with "available monies", a commitment was made to
appropriate $498,000 for the FY 02 supplemental budget. The
combination of these appropriations, he assured, would fully fund
this item.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
E&ED #2: This amendment adds $75,000 general funds for the Alaska
Vocational Technical Center Operations BRU and component on page 13
lines 7 and 8. Accompanying explanatory language reads as follows.
This amendment restores funding for a Marine Educational
instructional position for the maritime simulator training
program, which will otherwise not offer the highest level of
training in the Unlimited Master license category as requested
by the maritime industry.
Senator Hoffman moved for adoption.
No objection was voiced.
Senator Hoffman read the explanatory statement into the record.
Senator Olson spoke to the importance of marine pilots and their
ability to avoid marine accidents.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
E&ED #3: This amendment adds $130,000 general funds for the
Kotzebue Technical Center Operations Grant BRU and component on
page 12 lines 31 and 32.
Senator Olson moved for adoption.
Senator Wilken objected.
Senator Olson explained this appropriation would allow the Center
to continue performing. He listed the technical training offered in
the fields of health, office occupation, business, industrial
technology, industrial mine maintenance and adult basic education.
He cautioned that without this funding, the Center would realize a
22 percent reduction to the Center's general fund budget, which
would impact the facility's ability to operate vocational technical
training programs.
Senator Olson detailed the Licensed Practical Nurse training
program planned to begin the following year.
AT EASE 9:20 PM / 9:21 PM
Senator Wilken pointed out that the Governor had requested $600,000
for this purpose and the committee substitute allocates $470,000.
He reminded that two years prior an additional annual appropriation
of approximately $500,000 was established using the Statewide
Training Employment Program (STEP) funds. Therefore, he surmised
the programs could absorb the $130,000 reduction.
Senator Olson asserted that reducing funding for these programs is
a disservice to the State given the anticipated construction of a
natural gas pipeline and other economic development projects that
require skilled workers. He stated that it is beneficial to employ
Alaskans for these positions rather than import workers.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
E&ED #4: This amendment adds $200,000 general funds for the K-12
Support BRU, Community Schools component on page 11 line 20.
Accompanying explanatory language reads as follows.
This amendment restores the community schools program funding
to the FY 02 amount, which is the minimal amount to even make
community schools programs viable on a statewide basis.
Senator Hoffman moved for adoption.
Senator Wilken and Senator Green objected.
Senator Hoffman read the explanatory statement into the record.
Senator Wilken emphasized this program received no funding in the
budget approved by the House of Representatives. He determined it
is a priority item and recommended the $300,000 allocation
reflected in the committee substitute.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
This amendment FAILED to be adopted.
E&ED #5: This amendment adds $100,000 general funds for the Alaska
Library and Museums BRU, Library Operations component on page 13
line 16. Accompanying explanatory language reads as follows.
This amendment restores the Statewide Library Electronic
Doorway (SLED) funding to provide hardware and software
maintenance and upgrades, personnel costs for updating the web
site and the help desk, and leverage for acquiring other
federal and private monies to begin work on a virtual/digital
library for Alaska.
Senator Hoffman moved for adoption.
Senator Ward and Senator Green objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
E&ED #6: This amendment adds $60,000 for the Alaska Library and
Museums BRU, Museum Operations component on page 13 line 16.
Accompanying explanatory language reads as follows.
This amendment restores personal services and travel funds,
which directly effect the museums' ability to maintain their
current hours and services.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
Department of Environmental Conservation
DEC #1: This amendment adds $907,000 general funds and $36,800
GF/Program Receipts to the Air and Water Quality BRU, Water Quality
component and $302,700 general funds and $553,400 Clean Air
Protection Funds to the same BRU, Air Quality component on page 14
lines 14 and 15.
This amendment also adds $451,200 general funds to the Spill
Prevention and Response BRU, Industry Preparedness and Pipeline
Operations component and $244,000 general funds to the same BRU,
Prevention and Emergency Response component on page 14 lines 27-30.
This amendment also adds $125,000 general funds to the
Environmental Health BRU, Statewide Public Services component on
page 14 line 11.
Accompanying explanatory language reads as follows.
Allow the State to assure responsible development of Alaska's
oil and gas resources through the oil safety and development
initiative. Failure to fund this initiative continues to mean
that the State is minimally funded to oversee current oil
development, much less anticipated growth or the opening of
ANWR [Arctic National Wildlife Refuge].
This amendment was NOT OFFERED.
Department of Fish and Game
FRANK RUE, Commissioner, Department of Fish and Game, testified
that over the previous ten years, the Department has lost
approximately $20 million, or 25 percent, of general funds. As a
result, he stated the Department is "mostly a federally funded
agency at this point." Of the remaining general funds appropriated
to the Department, he noted that approximately 85 percent is
allocated to commercial fisheries programs. He commented that
commercial fisheries produce jobs for people in Alaska.
Mr. Rue told the Committee that the proposed budget of $1.7 million
less than the current year, $1.4 million of which is unallocated
budget reductions, would require programs to be eliminated. He
explained that the reduction is so large that the Department is
unable to absorb the losses and "just do everything badly." He
listed the three programs that would be eliminated and the
resulting consequences: Bering Sea/Aleutian Islands Shellfish
Management Program, which the State is not statutorily mandated to
manage; the genetics laboratory, commenting that the less
information available, "the worse we are at fishing ? we under-fish
or we over-fish"; and all non-game wildlife programs.
Senator Olson asked about the State's liability in the event that
no personnel were available on State-owned land to protect the
public. He referenced the witness's comment that funding reductions
would result in elimination of personnel stationed at wildlife
viewing areas.
Mr. Rue was unsure of whether the State had legal liability;
although it has a responsibility, stressing, "I would certainly
feel some responsibility though if someone were attacked and we
knew ? of a dangerous situation and we didn't try and control it."
Senator Olson "guaranteed" that some attorneys would pursue
litigation against the State on this matter. He surmised that the
State would be somewhat liable.
F&G #1: This amendment adds $1,485,700 general funds to the
Commissioner's Office BRU, Agency-wide Unallocated Reduction
component created by MULTI #1 on page 15 following line 13.
Accompanying explanatory language reads as follows.
With the state purpose of "providing more flexibility", the
Finance Committee amended the action of the Fish and Game
subcommittee by changing specific program reductions to the
Bering Sea/Aleutian Islands (BS/AI) Crab Program and the
Genetics Program to an agency-wide unallocated reduction. With
80% of the Department's general fund in the Division of
Commercial Fisheries, there is no flexibility achieved by this
action. The Department advised the subcommittee that with the
magnitude of the proposed reductions, we could no longer
continue to erode all programs with across the board
reductions. This amendment will restore funding to the BS/AI
Crab Program and the Genetics Program.
Bering Sea/Aleutian Islands Crab Program $741,000
This funding will restore all general funds for crab
management in the region and allow the Department to retain
the program's federal funds. Without this funding, the loss of
research and observer personnel would eliminate sources of
information required for in-season and inter-annual management
(e.g., harvest quota management, quota setting, by-catch
monitoring, effort monitoring). Loss of general fund research
and observer staff would also violate current contracts with
the federal granting agencies and would not allow the
Department to conduct observer programs mandated by the Alaska
Board of Fisheries.
The general fund allocation for the BS/AI Crab Program of
$741,000 supports a staff of biologists, technicians and the
Crab Fishery Observer Coordinator plus a core research staff
and various seasonal positions utilized to sample catches,
analyze data, and support deployment, briefing and debriefing
observers. The program is conducted primarily from the
Department's Dutch Harbor office, with assistance from staff
in Kodiak. The program manages crab fisheries worth several
hundred million dollars, under delegation from the National
Marine Fisheries Service (NMFS), the North Pacific Fisheries
Management Council (NPFMC) and under direction of the Alaska
Board of Fisheries. The program is integral to federally
funded research on crab stocks (approximately $2 million in
federal grants to the State) and to the crab observer program
that is supported by test fish funds (authorized at about
$680,000 per year).
These crab fisheries constitute a significant portion of the
State's production of seafood. Even though much of the harvest
occurs in federal rather than State waters, Alaska has managed
these fisheries since statehood and has, since implementation
of the Fishery Conservation and Management Act in 1976, worked
in concert with federal authorities to maintain management
control. A core management program funded directly by the
State's general fund has been essential to prudent
administration of the federal funds as well as to maintenance
of the State's position in the management and research of
these tremendously important fisheries.
Genetics Program $744,700
This funding will restore the subcommittee's cut of $744,700,
all the general funds in the Genetics Program. These general
funds support a core staff of a Fisheries Scientist, a
Biometrician, and three Geneticists who conduct research
primarily using external, non-general funds (currently about
$815,000).
The heart of the program is the genetics laboratory. The
laboratory has state of the art equipment valued at
approximately $1.1 million. Elimination of general funds would
effectively eliminate the genetics program and severely
compromise our ability to attract non-general fund funding
sources. The Division would lose its ability to conduct
genetic stock identification (GSI) research and evaluation.
Applications, extensive and routine in our programs, support
fisheries management, which include:
• Genetics baseline and stock composition for use in
Pacific Salmon Treaty (PST) fisheries;
• By-catch composition in Gulf of Alaska and Bering Sea
trawl fisheries;
• High seas fisheries stock identification;
• Yukon River, Bristol Bay, Cook Inlet, and South Alaska
Peninsula fisheries stock composition; and
• Genetic diversity inventories for exploited fish
populations used to address a wide variety of
conservation issues including addressing petitions for
listing under the Endangered Species Act.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman spoke of his 14 years serving on the Department of
Fish and Game budget subcommittee and asserted, "It is high time
the State of Alaska reassesses its position on this particular
Department." He explained it provides thousands of jobs and
provides an economic stimulus. He argued that although this
Department has successfully adjusted to operating with fewer
general funds, it is "punished" with further budget reductions. He
also pointed out this Department generates over $65 million and
that reductions jeopardize this revenue source as the Department is
less able to manage the resources to maintain a sustained yield. He
expressed that to not adopt this amendment is "plain insane and
does not make any business sense."
Senator Olson remarked that the budget reductions have the effect
of "disemboweling" programs to the extent that the State is "ripe"
for federal takeover. He suggested this represents a "regressive
mentality" that would "put us back to the territorial status" that
was fought against in the process of achieving statehood.
A roll call was taken on the motion.
IN FAVOR: Senator Austerman, Senator Hoffman, Senator Leman and
Senator Olson
OPPOSED: Senator Green, Senator Ward, Senator Wilken, Co-Chair
Kelly and Co-Chair Donley
The motion FAILED (4-5)
The amendment FAILED to be adopted.
F&G #2: This amendment adds $223,700 general funds for the Wildlife
Conservation BRU, Wildlife Conservation Restoration Program
component on page 16 lines 12 and 13. Accompanying explanatory
language reads as follows.
This funding will restore the subcommittee's cut of nearly all
the general fund match for Wildlife Conservation Non-Game
Programs.
The Division of Wildlife Conservation receives approximately
$260,000 in general funds annually. This funding satisfies a
3:1 match requirement for wildlife conservation restoration
funds (WCRP) and the proposed cut of $223,700 will result in
the loss of $671,100 federal funds. Specific non-game and
watchable wildlife programs that will be affected by the
subcommittee's cut include:
• Goshawk and Endangered Species Research
• Brown Bear Viewing
• Mendenhall Wetlands State Refuge
• Wolverine Creek and Pack Creek Management
• Round Island and Walrus Island Sanctuaries
• Anchorage and Northwest Alaska Raptors
Senator Hoffman moved for adoption.
Senator Ward objected.
AT EASE 9:39 PM / 9:49 PM
Senator Hoffman read the explanatory statement into the record and
elaborated on the importance of the threatened programs.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Department of Health and Social Services (cont.)
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, testified to concerns
raised with the Committee's adoption of MULTI #1. She noted that
although it appears the Department's budget was increased $270
million over FY 02, the FY 02 supplemental budget request is not
included in the comparison. She calculated the actual increase from
FY 02 funding at $100 million. Although she qualified this amount
is significant, most are federal funds and non-general funds to the
Medicaid program. She noted the general fund increase is
approximately $12 million, which is appropriated primarily for
formula increases to Medicaid.
Ms. Clarke appreciated that several programs received no reductions
to the base funding, including foster care and juvenile justice.
Ms. Clarke stated that with the adoption of MULTI #1, the Adult
Public Assistance and Foster Care Special Needs programs are funded
at 30 percent of the requested amount. She expressed concern that
the language adopted to the findings and intent section of the bill
would "trigger the pro-rata bill; the language in SB 182, which has
passed the Senate." She remarked this would be an "unreasonable"
outcome for poor, disabled and elderly clients.
Ms. Clarke continued that the Subsidized Adoption program is funded
at 34 percent of the requested amount. She pointed out a request
for $2.5 million is included in the proposed FY 03 supplemental
budget, noting that although this amount would be reduced to $2.1
million, the current FY 03 funding is inadequate.
Ms. Clarke informed the Committee that the amendments that would be
offered at this hearing are primarily to restore funding reductions
to grant programs and formula programs. She emphasized that alcohol
and drug abuse treatment programs require additional funds.
H&SS #2: This amendment adds $593,900 general funds and $2,806,100
GF/Mental Health funds for the Alcohol and Drug Abuse Services BRU,
Alcohol and Drug Abuse Treatment Grants component on page 21 lines
31 and 32, adds $528,100 general funds for the Alcohol Safety
Action Program (ASAP) component on lines 29 and 30, and also adds
$289,100 GF/Mental Health for the Rural Services and Suicide
Prevention component on page 22 lines 6 and 7. Accompanying
explanatory language reads as follows.
This amendment will restore treatment and prevention programs
and fund needed administrative support for these grant-in-aid
programs. Without these funds Alcohol Safety Action Programs
(ASAP) in Dillingham, Ketchikan, Kodiak, Mat-Su and Seward
will have to close.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman reminded that he has spoken on the importance of
funding these programs several times. He reiterated that although
the Committee has demonstrated it is "tough on crime" it is
necessary to address the relationship between crime and substance
abuse. He read the explanatory statement into the record.
Senator Olson added that these programs offer preventative
benefits.
SFC 02 # 79, Side A 09:57 PM
Senator Olson commented on the Rural Services and Suicide
Prevention component, suggesting the members disregard the Rural
Services reference, as suicides occur in all areas of the State. He
remarked that suicide could be prevented.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #3: This amendment adds $671,200 general funds for the
Purchased Services BRU, Family Preservation component on page 19
line 28. Accompanying explanatory language reads as follows.
These funds will be used for grants designed to help children
and families at risk or in crisis. Services include intensive
pre-placement services, follow-up care for families, and
services to increase parenting abilities.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory statement into the record.
Senator Olson noted that the Committee members were raised in
conservative and traditional families and had involved parents.
However, he stated that "families are more under attack then they
were before." He suggested that before "we reach crisis" and
experience the further disintegration of families, actions should
be taken to assist those families currently at risk.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #4: This amendment adds $2 million general funds for the
Catastrophic and Chronic Illness Assistance BRU, Catastrophic and
Chronic Illness Assistance (AS 47.08) component on page 18 lines
31-33. Accompanying explanatory language reads as follows.
This amendment restores the 50% cut to this program. Funds
will be used to provide a limited package of health services
to Alaskans with terminal diseases or one of four chronic
illnesses: diabetes, seizure disorder, chronic mental illness
or hypertension. Each CAMA recipient qualifies only if they
have income of less than $300 per month and assets of less
than $500 except for their home and vehicle and have no other
insurance.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory statement into the record.
Senator Olson spoke of the emotional drain of terminal diseases and
chronic illness.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #5: This amendment adds $103,800 general funds, $16,800
GF/Match funds and $1,200 GF/Program Receipts to the Public
Assistance Administration BRU and component on page 19 lines 5 and
6; adds $63,500 general funds and $709,200 GF/Match funds to the
Public Assistance Field Services component on lines 8 and 9; adds
$9,400 general funds and $131,100 GF/Match funds to the Public
Assistance Data Processing component on lines 10 and 11; and also
adds $14,400 GF/Match funds for the Quality Control component on
line 7. Accompanying explanatory language reads as follows.
This amendment will fund caseworkers and data processing at
maintenance levels and will restore support for Alaska Food
Coalition. Without this funding 17 caseworkers in Anchorage,
Juneau, Fairbanks, Mat-Su, Kenai and Bethel will be cut.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman, Senator Ward, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #6: This amendment adds $204,300 general funds for the State
Health Services BRU, Emergency Medical Services Grant component on
page 21 lines 17 and 18. Accompanying explanatory language reads as
follows.
This funding will be used to support the critical
infrastructure needed to maintain local EMS [Emergency Medical
Services] statewide. If these funds are not restored,
preventable deaths and disability due to inadequate EMS
response capacity are likely to occur.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman read the explanatory statement into the record. He
remarked, "This amendment will save lives."
Senator Green stated this matter was addressed in H&SS #1.
Senator Hoffman WITHDREW his motion to adopt the amendment without
objection.
H&SS #7: This amendment adds $150,000 general funds and $850,000
GF/Mental Health funds for the State Health Services BRU, Infant
Learning Program Grants component on page 21 lines 20 and 21.
Accompanying explanatory language reads as follows.
Since it is unclear whether the plan to make the Infant
Learning Program a needs based program will work, this request
will restore funds for this vital program. This funding will
provide services to high-risk children, ages 0-3, to reduce or
ameliorate disabling conditions. During FY 01, the average
cost for a child in this program was approximately $3800 per
year. These funds would serve approximately 260 children.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman detailed the amendment and read the explanatory
statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #8: This amendment adds $91,400 GF/Mental Health funds for the
Community Mental Health Grants BRU, General Community Mental Health
Grants component on page 22 lines 9 and 10; adds $195,800 GF/Mental
Health funds for the Psychiatric Emergency Services component on
lines 11 and 12; adds $369,700 for the Services to the Chronically
Mental Ill component on lines 13 and 14; adds $34,400 GF/Mental
Health funds for the Designated Evaluation and Treatment component
on lines 15 and 16; and also adds $186,600 GF/Mental Health funds
for the Services for the Seriously Emotionally Disturbed Youth
component on lines 17 and 18. Accompanying explanatory language
reads as follows.
This funding will restore mental health services to
emotionally disturbed adults and youth throughout the State.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman detailed the amendment and read the explanatory
statement into the record.
Senator Olson relayed that it is difficult to recruit and retain
qualified personnel to provide care for "mentally challenged"
patients.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #9: This amendment adds $1,062,500 Tobacco Education/Cessation
Funds for the State Health Services BRU, Tobacco Prevention and
Control component on page 21 lines 23 and 24. This amendment also
changes the funding source of $1,062,500 from Tobacco
Education/Cessation Funds to GF/Match funds in the Medical
Assistance BRU, Medicaid Services component on page 18 line 28.
Accompanying explanatory language reads as follows.
This amendment partially reverses the transfer from Medicaid
Services to Tobacco Prevention and Control and offsets a
portion of the cut to Medicaid Services contained in MULTI #1
adopted by the Senate Finance Committee on 4/24/2002.
Senator Hoffman moved for adoption, detailed the amendment and read
the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #10: This amendment adds $205,500 general funds and $233,000
I/A Receipts for the Human Services Community Matching Grant BRU
and component on page 20 lines 31 and 32. Accompanying explanatory
language reads as follows.
These funds would restore the 25% cut to grants for health and
services to Fairbanks North Star Borough and the Municipality
of Anchorage. These funds are used to provide services to
children and youth as well as address family dysfunction,
mental and emotional problems, temporary shelter for homeless
persons, delivery of meals to those in need, etc.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman detailed the amendment and read the explanatory
statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #11: This amendment adds $3,167,500 GF/Match to the Medical
Assistance BRU, Medicaid Services component on page 18 line 28;
adds $1,250,000 general funds for the Public Assistance BRU, Adult
Public Assistance component on line 18; adds $1,500,000 general
funds for the Purchased Services BRU, Subsidized Adoptions and
Guardianship component on page 20 lines 3 and 4; and adds $250,000
general funds for the Purchased Services BRU, Foster Care Special
Need component on page 19 line 31. Accompanying explanatory
language reads as follows.
This amendment will restore the cuts to Department of Health
and Social Services formula programs made in MULTI #1 adopted
by the Senate Finance Committee on 4/24/2002. Formula program
increments with the reductions are funded at the following
levels:
• Medicaid: The increment is funded at $23.1 million a
reduction of 38% from fully funding the program.
• Adult Public Assistance: The increment is funded at
$781,600 a reduction of 70% from fully fund the program
[sic].
• Subsidized Adoption and Guardianship: The increment is
funded at $1.0 million a reduction of 66% from fully
funding the request.
• Foster Care Special Needs: The increment is funded at
$150,000 a reduction of 70% from fully funding the
request.
Senator Hoffman moved for adoption.
Senator Green objected.
Senator Hoffman detailed the amendment and read the explanatory
statement into the record.
Senator Hoffman shared that his daughter provides adoption services
in Bethel and she questioned why the Legislature is not adequately
funding these programs.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
H&SS #12: This amendment adds intent language to the Medical
Assistance BRU, Medicaid Services component on page 18 line 28 to
read as follows.
It is the intent of the legislature that the amount
appropriated in this appropriation is the full amount that
will be appropriated for Medical Assistance for the fiscal
year ending June 30, 2003. If the amount appropriated in this
appropriation is not sufficient to cover the costs of Medical
Assistance for all eligible persons, the department shall
eliminate coverage for optional medical services that have a
federal match and optionally eligible groups of individuals in
accordance with the AS 47.07.035. It is the intent of the
legislature that requests for supplemental appropriations for
Medical Assistance for the fiscal year ending June 30, 2003
will not be approved. This intent covers the budgeted
reductions to Medicaid, but does not apply to loss of funds
that may occur if the department's "Fair Share" funding
mechanism is not approved by the federal government.
Accompanying explanatory language reads as follows.
The House intent adopted by the Senate Finance Committee at
their April 24,2002 for Medicaid is inconsistent with stated
comments that funding is based on lower case projection and
possible changes to the FMAP [Federal Medicaid Assistance
Program]. The House intent would direct the Department to cut
optional services, which is inconsistent with the Senate
budget.
This amendment was NOT OFFERED.
Department of Labor and Workforce Development (cont.)
L&WD #2: This amendment changes the funding source of $89,600 from
GF/Program Receipts to Receipt Supported Services funds for the
Labor Standards and Safety BRU, Occupational Safety and Health
component, and adds $89,600 general funds to the Wage and Hour
Administration component on page 24 lines 8, 10 and 11.
Accompanying explanatory language reads as follows.
By switching the General Fund Program Receipts to Receipts
Supported Services, for fees generated by licensing Asbestos
Abatement and Explosive Handlers, and fees from associated
training certificates, general funds will be freed up to
provide substantial funding toward the two new Wage and Hour
technicians needed for payroll auditing. These two technician
positions, one in Anchorage and one in Fairbanks, will result
in a lesser amount of protection for Alaska's workers, and put
law-abiding contractors at a competitive disadvantage.
Wage and hour technicians monitor and audit certified payrolls
that are required to be submitted on publicly funded
construction projects. These audits ensure that employers
abide by prevailing wage standards and provide a "level
playing field"; keeping the unscrupulous employer from getting
unfair competitive advantage by paying employees less than a
prevailing rate of pay. The audits also benefit contractors by
catching payroll errors.
Without the technician positions, audits will continue to be
complain driven only. Time spent performing audits will mean
that the investigators spend less time out in the field
ensuring that contractors comply with current wage laws. As a
result, fewer prevailing wage violations will be found and
prosecuted, fewer workers will have unpaid wages returned to
them and the amount of time it takes to close a case will
increase.
Each technician generated $30,000 to $60,000 per year in
violations from routine audits. This means that potentially up
to $200,000 per year in wages lost through payroll errors are
not being returned to Alaskan workers.
Senator Olson moved for adoption.
Senator Green objected.
Senator Olson spoke to this amendment stating that it relates to
boiler and mechanical inspections.
AT EASE 10:16 PM / 10:20 PM
[Note: The following portion of the meeting was not recorded.]
Senator Olson WITHDREW his motion to adopt the amendment without
objection.
Department of Law
BARBARA RITCHIE, Deputy Attorney General, Civil Division,
Department of Law, testified to the proposed amendments.
LAW #1: This amendment adds $250,000 general funds for the Criminal
Division BRU, Unallocated Reduction component on page 25 line 14.
Accompanying explanatory language reads as follows.
This amendment restores funds to the Criminal Division that
were removed via an unallocated reduction which would have
resulted in the elimination of at least three attorney
positions from the Anchorage and/or Fairbanks offices.
AND
LAW #2: This amendment adds $250,000 general funds for the Civil
Division BRU, Unallocated Reduction component on page 26 line 5.
Accompanying explanatory language reads as follows.
Restore funds to the Civil Division that were removed via an
unallocated reduction and would have resulted in the loss of
two attorney and/or paraprofessional positions; most likely
those working on natural resources and fish and game issues.
Senator Olson moved for adoption of LAW #1 and LAW #2.
Senator Ward objected.
Senator Olson read the explanatory statements into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Kelly and Co-Chair Donley
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
LAW #3: This amendment adds $135,000 general fund for various
components of the Criminal Division BRU, adds $66,800 general funds
for various components of the Civil Division BRU, adds $2,300
general funds for the Statehood Defense BRU and component, and adds
$10,300 for the Oil and Gas Litigation and Legal Services BRU, Oil
& Gas Litigation component on pages 25 and 26. Accompanying
explanatory language reads as follows.
Fully fund the Law Office Assistant reclassification that was
implemented in response to a union grievance filed on behalf
of these positions.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson spoke to the motion.
[It was established that Senator Olson was directing his comments
to LAW #5 and the motion was amended to adopt LAW #5. No further
action was taken on LAW #3.]
LAW #5: This amendment adds $33,000 general funds for the Criminal
Division BRU, Third Judicial District component, adds $70,900
general funds for the Fourth Judicial District component, and adds
$148,300 general funds for the Civil Division BRU, Human Services
Section component on page 25, lines 6-10 and 29. Accompanying
explanatory language reads as follows.
This amendment fully funds the fiscal note for therapeutic
court legislation (Ch. 64, SLA 01), which will ensure adequate
prosecutorial involvement in the program.
Senator Olson moved for adoption, having read the explanatory
statement into the record.
A roll call was taken on the motion to adopt LAW #5.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman, Senator Ward, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
LAW #4: This amendment adds $106,500 general funds for the Civil
Division BRU, Collections and Support component on page 25 line 21.
Accompanying explanatory language reads as follows.
This increment fully funds the fiscal note for victim
restitution legislation (Ch. 60, SLA 01). As many as 5,000
victim restitution court orders may be sent to the Civil
Division for collection as a result of passage of this new
legislation. This legislation became effective on January 1,
2002, and the workload related to the task of collecting,
accounting for, and paying out restitution is just beginning
to be felt. Because the full amount of the requested funding
for this process was denied, the victim restitution effort may
fall far short of its goal of successfully tracking down
convicted criminals and delinquents and making payments to
victims who are due restitution.
Senator Olson moved for adoption.
Senator Ward objected.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
LAW #6: This amendment adds $168,400 general funds for the Criminal
Division BRU, Third Judicial District component on page 25 lines 6-
9. Accompanying explanatory language reads as follows.
This amendment fully funds the fiscal note for new drunk
driving legislation (Ch. 63, SLA 2001). Passage last year of
stiffer alcohol laws requires new prosecutors in Anchorage to
handle the increased drunk driving prosecutions as a result of
the .08 percent BAC [Blood Alcohol Content] and the changes to
the "look-back" periods for repeat DWI [Driving While
Intoxicated] and felony DWI offenses. Failure to adequately
fund new staff required by the passage of this legislation
will mean the level of prosecution will not meet the public's
expectation.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record.
Senator Hoffman commented on the importance of funding this
increment.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
AT EASE 10:33 PM / 10:38 PM
[Note: The remainder of the meeting is recorded.]
Department of Military and Veterans Affairs
NICO BUS, Administrative Services Manager, Administrative Services
Division, Department of Military and Veterans Affairs, and Division
of Support Services, Department of Natural Resources, testified
that the budget needs of the Department of Military and Veterans
Affairs has increased since FY 02 to almost $9 million. He noted
this is primarily due to approximately $400,000 in increased
expenses to the military retirement program. He described how the
historical annual expense of this program has been approximately
$1.5 million, until recent years, when high earnings in the stock
market reduced expenditures to $800,000. Poor performance of the
stock market in the current year has caused the actuarial costs to
return to usual levels, he explained. He listed salary increases
for the employees of the Department as another factor necessitating
additional funds.
Mr. Bus stated the Alaska Military Youth Academy is the only
program where these cost increases could be absorbed. However, he
stressed that such a reduction would "clearly put that whole
program in jeopardy." He spoke to the many years of continued
improvement to the program and the efforts to curtail the cost per
graduate, while increasing the number of graduates.
AT EASE 10:40 PM / 10:41 PM
M&VA #1: This amendment adds $240,000 general funds for the Alaska
National Guard BRU, Alaska Military Youth Academy component on page
27 lines 9 and 10. Accompanying explanatory language reads as
follows.
The payment of graduate stipends is essential to Phase III of
the program, the twelve months after graduation. Every year
since its inception the Alaska Military Youth Academy has paid
a graduate stipend. Accommodating the stipends from existing
resources will result in the lay-off of most divisional staff
between classes.
The federal grant allows a stipend payment of $2,200 based on
specified conditions. This amendment would fund a reduced
stipend of $1,500 per graduate.
Senator Hoffman moved for adoption.
Senator Wilken objected.
Senator Hoffman read the explanatory statement into the record.
Senator Olson added that this program was established especially
for Alaska's youth.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
M&VA #2: This amendment changes the funding source of $654,700 from
I/A Receipts to general funds in the Alaska National Guard BRU,
Alaska Military Youth Academy component on page 27 lines 9 and 10.
Accompanying explanatory language reads as follows.
The Senate Finance Subcommittee approved a fund change from
general funds to inter-agency receipts that are dependent on
the passage of HB 312. HB 312 proposes to fund the Alaska
Military Youth Academy based on a per-student count formula.
The House passed this legislation and the bill is awaiting
Senate action.
Without the certainty of the passage of HB 312 for FY 03, if
this funding is not restored, it may result in the loss of the
full base Challenge grant from the federal government and
result in a total closure of the program.
Senator Hoffman moved for adoption.
Senator Ward and Senator Austerman objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Senator Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Department of Natural Resources
There were no amendments for the Department of Natural Resources.
Department of Public Safety
GLEN GODFREY, Commissioner, Department of Public Safety, testified
in appreciation of the additional funding provided in MULTI #1, as
it would fund the Department at the FY 02 "service level". However,
he stated that to maintain the same service levels in FY 03,
without reducing staff positions, an additional $1.2 million is
requested.
Mr. Godfrey informed that the current appropriation does not
include increments for additional child abuse investigators, or
other initiatives to address identified program needs." He
expressed that the $707,000 reduction to the Division of
Administrative Services, would "cripple centralized admin's
functions in our Department" and would either require the
reassignment of "field positions" to perform administrative tasks
or "charging" the programs directly for administration costs;
thereby further reducing public safety services and Trooper
positions.
Mr. Godfrey stated that the $150,000 in unfunded increased fuel
costs of the Division of Fish and Wildlife Protection could
significantly impact the ability of the Troopers to perform field
activities. He warned that vessels would be taken out of service
and staff levels would be reduced.
Mr. Godfrey next addressed the funding reductions to the Office of
the Commissioner, stressing it would impact non-Trooper services
statewide. He explained that the Department would be forced to
reduce "other life safety services" including inspections of public
buildings, such as schools, and to perform "oversight
capabilities". He furthered that two positions or the reassignment
of "line-division" staff to the commissioner's office, would also
be necessary.
Senator Hoffman clarified that Trooper positions would potentially
be eliminated for lack of funding, despite a budget higher than the
FY 02 level.
Mr. Godfrey agreed that the budget as proposed would "certainly
have a negative impact on certain positions within the Department."
He elaborated that it would be necessary to review some Trooper and
civilian positions.
DPS #1: This amendment adds $707,200 general funds for the
Statewide Support BRU, Administrative Services component on page 31
line 27. Accompanying explanatory language reads as follows.
Restore Centralized Administrative function so field staff can
concentrate on field duties.
The Senate Finance Subcommittee proposal to reduce funding to
the Division of Administrative Services will have a direct
impact on public safety by taking troopers out of the field to
perform administrative functions and would cripple management
and financial support to all divisions and programs. At a
minimum, workload for 11 of the 28 authorized positions would
need to be charged our or shifted to line divisions.
Either method would have the effect of seriously reducing the
commissioned divisions' presence in the field since the
majority of the Department's administrative support is
dedicated for trooper and fish and wildlife protection
services and funds or support would need to be diverted to
accomplish necessary administrative work.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record.
Senator Hoffman reiterated the Commissioner's comments that the
Department would be unable to maintain the current number of
positions without the additional funding proposed in the amendments
before the Committee. He pointed out that public safety is a
priority of both political parties.
Co-Chair Donley asked the difference between the amount
appropriated by the House of Representatives budget and the amount
included in the committee substitute.
Senator Austerman responded that the Senate Finance Committee
amount is $4 million higher.
Senator Hoffman reiterated that the House of Representatives budget
was inadequate and should not be used for comparison. He stressed
the intent is to maintain the same level of protection for the
citizens of Alaska.
Co-Chair Donley stated he did not "completely disagree" with
Senator Hoffman. However, he emphasized the difficulty in funding
all programs given the State's budget deficit. He expressed that
the Committee, "can only do so much" and that members are "trying
really hard to meet these concerns."
Senator Hoffman suggested the Committee must take a "stronger
position if we want to be successful at making sure that the
citizens of Alaska are protected at least at the same level that
they were last year."
Co-Chair Donley remarked that the "commitment" the Committee made
to the Department, "while it won't be easy for them", provides a
significant increase over the amount allocated in FY 02 and is
intended to fund the contractual obligations for salary increases
as well as maintain field staff. He admitted, "They're probably
going to have some tough choices there in prioritization," for
which he expressed empathy.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
DPS #2: This amendment adds $278,000 general funds for the Office
of the Commissioner BRU, Commissioner's Office component on page 29
line 33. Accompanying explanatory language reads as follows.
Restore non-trooper portion of Agency-wide unallocated
reduction.
These funds are needed to provide essential support services
to public safety activities, and include direct trooper
support activities, such as crime lab analysis and support for
the Department's information systems, and other public safety
activities, such as fire safety inspections for schools and
other public buildings.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
DPS #3: This amendment adds $825,000 general funds for the Alaska
State Trooper Detachments BRU and component on page 30 lines 31 and
32. Accompanying explanatory language reads as follows.
Add 5 new troopers for investigating serious reports of harm
to children.
The Senate Finance Subcommittee proposal does not include
funding for 5 new Alaska State Troopers requested by the
Governor to work exclusively on child abuse investigations.
Without these additional troopers, an immediate response to
these serious crimes is often not possible and the backlog of
investigations involving sexual abuse, serious physical abuse
and criminal exploitation of children will continue. The areas
with the greatest current need for these investigators are
Palmer, Fairbanks and Soldotna.
Senator Hoffman announced he would not offer this amendment because
it would essentially create a new program, which he reminded that
the Senate Minority pledged not to do. However, he spoke to the
amendment, recounting recent events of allegations of child abuse
occurring in rural communities and the delays in responding to the
situations due to inclement weather. He suggested that Village
Public Safety Officers (VPSO) should be stationed in more rural
communities, including St. Paul and St. George, to immediately
respond and intervene in serious incidences.
This amendment was NOT OFFERED.
DPS #4: This amendment adds $95,200 general funds for the Office of
the Commissioner BRU, Commissioner's Office component on page 29
line 33. Accompanying explanatory language reads as follows.
Restore Public Safety oversight capability.
The subcommittee recommended a reduction of general funds in
the Commissioner's Office. These reductions will result in the
loss of 2 positions or reassignment of line division staff to
the Commissioner's Office. This cut would have a serious
impact on the ability of the Commissioner's Office to provide:
• Oversight or state public safety management and strategic
planning;
• Oversight of mission-critical public safety services with
adverse, possibly life threatening affects to the public
during times of public safety crises, prevention and
investigation of crimes, and search and rescue missions
throughout the State;
• Timely responses to citizens inquiries and complaints;
• Timely responses to legislative inquires (including bill
analysis, fiscal notes, testimony at hearings and general
information);
• Oversight of division compliance with statutory and
legislative mandates (including missions and measures);
• Oversight of labor issues (grievances, arbitration
hearings, negotiation of resolution to problems); and
• Analysis of changes to or adoption of regulations.
Senator Olson moved for adoption.
Senator Austerman objected.
Senator Olson read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
DPS #5: This amendment adds $154,600 general funds for the Fish and
Wildlife Protection BRU, Enforcement and Investigative Services
Unit component on page 30 lines 6 and 7. Accompanying explanatory
language reads as follows.
Fund FWP increased fuel costs.
The Senate Finance Subcommittee proposal not to fund projected
fuel costs could significantly impact the ability of troopers
to perform field activities. If prices stay at current levels,
taking enforcement vessel(s) out of service and additional
staff layoffs would have to occur.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
Department of Revenue
There were no amendments for Department of Revenue.
Department of Transportation and Public Facilities
KURT PARKAN, Deputy Commissioner, Department of Transportation and
Public Facilities, testified that the current appropriation amount
is approximately $5.8 million below the amount the Department needs
to maintain the current level of service. As a consequence, he
warned: some roads would no longer be maintained, winter
maintenance will be reduced for some roads, and summer maintenance
will be reduced for some roads. In addition, he informed that the
Alaska Marine Highway System (MHS) would experience a significant
reduction in service, primarily in Southeast Alaska, in that
vessels would be "laid up" for extended periods and communities
would not receive the current frequency of sailings.
Mr. Parkan noted additional funding for the Traffic Signal
Maintenance component was added to the Department's budget in MULTI
#1, which he pointed out is higher than the amount requested.
AT EASE 11:03 PM / 11:09 PM
DOT #1: This amendment adds $6,649,200 for the Marine Highway
System BRU, Marine Vessel Operations component on page 37 line 21.
This amendment also increases the $39,120,600 appropriation in
Section 25 on page 58 lines 16 through 18. The amended language
reads as follows.
Sec. 25. MARINE HIGHWAY SYSTEM FUND. The sum of
$45,769,800 is appropriated from the general fund to the
Alaska marine highway system fund (AS 19.65.060).
Accompanying explanatory language with this amendment reads as
follows.
The Alaska Marine Highway Fund was created to provide
stability during times of transition and unexpected events. In
the past few years, AMHS has experienced several events that
contributed to the fund's depletion. Rather than stopping
services, the State has drawn upon the Fund balance to provide
continued and predictable services. The fund will be empty
this year. Continued rising costs to operate the system have
resulted in increased appropriation need.
This amendment would restore weeks of service that will be
lost with the lay up of the Taku and Columbia, and the surplus
of the Malaspina. Will restore service levels to Bellingham,
Prince Rupert, Senator Elton Panhandle and North Lynn Canal.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read a portion of the explanatory statement into
the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson, Senator Austerman and Senator Hoffman
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Green, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (3-6)
The amendment FAILED to be adopted.
DOT #2: This amendment adds $475,000 general funds for the Highways
and Aviation BRU, Southeast Region Highways and Aviation component
on page 36 lines 20 and 21. Accompanying explanatory language reads
as follows.
Restore maintenance to Category III roads in Juneau, Skagway,
Ketchikan, Haines, Klawock, Gustavus
This amendment will restore equipment operator positions in
Gustavus (1PT), Haines (1FT, 1PT), Juneau (1FT, 1PT), and
Ketchikan (1FT). It will also restore winter snow removal and
year round maintenance on 170 lane miles of highways in
Southeast communities. Summer maintenance will also be
restored to current levels to avoid degradation of the
highways.
Category III roads include such roads as:
Mendenhall Peninsula, Montana Creek, Pt. Lena Loop in Juneau
Old South Tongass, Cemetery Road, Shoreline Drive, and Totem
Bite in Ketchikan
Lutak Road and Mud Bay in Haines
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Co-Chair Kelly and Co-Chair Donley
ABSENT: Senator Leman
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
DOT #3: This amendment adds $514,600 general funds for the Highways
and Aviation BRU, Central Region Highways and Aviation component on
page 36 lines 13 and 14, and adds $616,900 general funds for the
Northern Region Highways and Aviation component on lines 18 and 19.
Accompanying explanatory language reads as follows.
Restore maintenance station closures and partial closures.
Central Region
Willow Maintenance Station $292,700 general funds
Restore 2 FT equipment operators. Station will return to
single shift, 7 day a week operation with full contingent of
equipment and commodities to maintain the Parks Highway from
Big Lake up to Chulitna area.
Kalsin Bay Maintenance Station $221,900 general funds
Restore full time operation with 2 FT operators and all
equipment and commodities to previous levels. This will
provide 7 day a week coverage of the Chiniak and Pasaghak
Highways. This will allow much more efficient operation rather
than relaying on equipment and personnel traveling 24 miles
from Kodiak to Kalsin Bay to perform road maintenance.
Northern Region
Birch Lake Maintenance Station $185,000 general funds
Restore one equipment operator, a dump truck, a loader, and a
grader. The level of service will be restored on the
Richardson Highway in the area of Birch Lake. This action will
enable crews to respond timely to storm events. It will avoid
road closures, increased delays and reduced legal speed
limits.
Chitina Maintenance Station $431,900 general funds
Restore two full time and one seasonal position, a grader
truck, loader and associated consumables. Service levels will
be restored to Edgerton Highway, Village of Chitina, Kenny
Lake School District and the Chitina dipnet fishery.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read portions of the explanatory statement into the
record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
SFC 02 # 79, Side B 11:13 PM
DOT #4: This amendment deletes $309,000 general funds from the
Traffic Signal Management BRU and component on page 35 line 29.
This amendment also adds $309,000 general funds for the Highways
and Aviation BRU, Central Region Highways and Aviation component on
page 36 lines 13 and 14. Of this amount, the amendment specifies
$200,000 is to be spent for Anchorage Snow Hauling and $109,000 for
Central Region Highways and Aviation Fuel Cost Increases.
Accompanying explanatory language reads as follows.
This amendment will restore 2 snow hauls that have been
reduced from the budget and will avoid the layoff of 1 full
time and 1 seasonal equipment operators.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Green, Senator
Leman, Senator Ward, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
DOT #5: This amendment adds $130,000 general funds for the
Statewide Facility Maintenance and Operations BRU, Central Region
Facilities component on page 35 line 21. Accompanying explanatory
language reads as follows.
Restore cuts to Central Region facilities.
Restore 2 FT building specialists to maintain the Highway
Maintenance Stations and 199 other buildings owned and
maintained by DOT&PF. The plumber and electrician would be
able to keep buildings from further deterioration and provide
continual operation so that highway crews can accomplish their
work.
Senator Hoffman moved for adoption.
Senator Ward objected.
Senator Hoffman read a portion of the explanatory statement into
the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Green, Senator Leman, Senator
Ward, Senator Wilken, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
University of Alaska
UNIV #1: This amendment adds $8,989,700 general funds for the
University of Alaska BRU, Budget Reductions/Additions-Systemwide
component on page 37 lines 32 and 33. Accompanying explanatory
language reads as follows.
This amendment fully funds the Board of Regents University of
Alaska FY 03 request.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record along
with additional comments as follows.
Over 80 percent of the jobs available in Alaska require some
level of postsecondary education and virtually all of the
fast-growing and highest demand occupations require
postsecondary education. Every industry and job class in the
State, including health care, process industries,
transportation, information technology, construction,
engineering, business administration, finance and tourism, is
facing worker shortage over the next few years. Each is
depending on the University for training and continuing
education. The health care industry has asked the University
to double the output of nurses over the next four years and is
planning to match State funding to make this happen. Other
industries are also stepping up to assist the development and
funding of new programs specific to their needs. There is also
an increasing need for more teachers as well.
State funding for research is matched by nearly six dollars
for every dollar of State investment. These research
activities in Alaska represent a major industry employing
several thousand employees and generating as much private
sector employment and economic activity as all but a few other
industries in the State do.
The State budget represents $8.9 million less than the amount
needed to meet the minimum FY 03 fixed costs.
Co-Chair Donley commented that the appropriation contained in the
committee substitute, through the efforts of Co-Chair Kelly and the
support of Senator Wilken, represents an $8 million increase to the
University system over FY 02. He furthered that for many years,
while other departments absorbed significant budget reductions, the
University has continued to receive major funding increases. He
reiterated that the State is "faced with an immense budget deficit
this year". He characterized the additional $8 million as a "very,
very meaningful increase" that in part, holds the University
harmless for funding salary increases.
Senator Leman pointed out that in addition to the $8 million
increase in general funds the University budget is receiving $35
million from other fund sources.
Co-Chair Donley surmised that no Senate Finance Committee member
would refuse to invest more money into the University of Alaska
system, if given a different fiscal situation.
Senator Wilken noted that in the previous three years, the amount
of general funds appropriated to the University has increased 18.9
percent.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Senator Austerman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
UNIV #2: This amendment changes the funding source of $2,315,000
from Science and Tech Endowment funds to general funds in the
University of Alaska BRU, Fairbanks Organized Research component on
page 38 line 16.
This amendment was NOT OFFERED.
UNIV. #3: This amendment adds $800,000 general funds for the
University of Alaska BRU, Budget Reductions/Additions-Systemwide
component on page 37 lines 32 and 33. Accompanying explanatory
language reads as follows.
Currently the University scholars program is funded through
the Natural Resources Fund (NRF) at an FY02 costs of $1.9
million. University's commitment to the Scholars program has
fully utilized available Natural Resource Fund resources. The
FY 03 estimated cost of the UA Scholars program is $2.7
million. This $800,000 request will fund the cost in excess of
what is available from NRF resources.
This amendment was NOT OFFERED.
Office of the Governor
GOV #1: This amendment adds $567,000 general funds for the
Agencywide Reductions BRU, Agency-wide Unallocated Reduction
component on page 18 lines 8 and 9. Accompanying explanatory
language reads as follows.
This unallocated cut would reduce Departmental employees by an
estimated 9 full-time positions. The reduction will
significantly reduce the resources available to a new governor
in establishing the new administration and operations of the
Governor's Office.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record.
Senator Leman expressed he is unsure why an unallocated budget
reduction would only impact the new gubernatorial administration
and anticipated that the current Administration would not "short
change" the succeeding Administration by expending more than half
of the total appropriation. If this was a possibility, he suggested
the Legislature should insert intent language into the budget to
stipulate otherwise.
Senator Olson did not oppose inserting such intent language into
the amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
GOV #2: This amendment adds $243,400 general funds and $24,200
GF/Match funds for the Agencywide Reductions BRU, Agency-wide
Unallocated Reduction component on page 18 lines 8 and 9.
Accompanying explanatory language reads as follows.
This amendment would restore the unallocated reduction of
$267,600 that is equivalent to the amount needed to fund labor
costs in FY 03. Not funding the Year 3 labor costs will force
vacant at least 3 departmental positions. This will further
impede the new administration.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson read the explanatory statement into the record.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Ward, Senator Wilken, Senator Austerman, Senator
Green, Senator Leman, Co-Chair Kelly and Co-Chair Donley
The motion FAILED (2-7)
The amendment FAILED to be adopted.
GOV #3: This amendment adds $350,000 federal funds to the
Governmental Coordination BRU and component on page 18 line 4.
Accompanying explanatory language reads as follows.
Anticipated increase in Alaska's allocation for the federal
6217 coastal nonpoint source pollution program funding.
No additional general funds are required to match this
increased allocation.
Senator Olson announced this amendment would be NOT OFFERED.
Language Section
LANG #1: This amendment deletes changes to Section 10 adopted in
MULTI #1, which inserted language on page 53, beginning on line 7
to read as follows.
Sec. 10. INTENT AND FINDINGS. (a) It is the intent of the
legislature that the amounts appropriated by this Act are the
full amounts that will be appropriated for those purposes for
the fiscal year ending June 30, 2003.
(b)
Accompanying explanatory language to LANG #1 reads as follows.
It appears that this section initiates the action outlines in
SB 182 (the Pro-Rata Bill), particularly with the reductions
to formula programs in DHSS [Department of Health and Social
Services] (Adult Public Assistance and Foster Care).
This amendment was NOT OFFERED.
LANG #2: This amendment adds a new subsection (c) to Section 24.
LEARNING OPPORTUNITY GRANTS, on page 58, [subsection (b) was
adopted in MULTI #1] to read as follows.
(c) it is the intent of the legislature that the funding
allocated for Learning Opportunity Grants be allocated to
school districts based on the school district's adjusted
average daily membership. It is further the intent of the
legislature that if legislation is approved by the Twenty-
Second Alaska State Legislature to increase the quality school
grants within the public school funding program, that this
funding will be utilized for that increase rather than for
Learning Opportunity Grants.
This amendment was NOT OFFERED.
AT EASE to 11:30 PM
Senator Leman "moved to report, it's gonna be what? Anyway the
Senate committee substitute for committee substitute House Bill 404
Finance from Committee with individual recommendations."
Senator Hoffman asked if no other action would be taken on this
bill.
Co-Chair Donley replied this was true and noted one change to the
Alaska Court System funding.
AT EASE 11:31 PM / 11:33 PM
Co-Chair Donley restated the motion to "move the Finance committee
substitute as amended for House Bill 404 from Committee with
individual recommendations."
Without objection SCS CS HB 404 was REPORTED from Committee.
Department of Corrections (cont.)
COR #10: This amendment deletes $207,100 general funds from the
Administration and Operations BRU, Correctional Industries
Administration component on page 9 lines 10 and 11. This amendment
also adds $207,100 general funds for the Community Residential
Centers BRU, Existing Community Residential Centers component on
page 10 lines 24 and 25.
Senator Ward moved for adoption.
Senator Hoffman objected for an explanation.
Senator Ward explained this amendment transfers funds from the
McKinley Meat Packing Plant program, noting the amount is the same
as listed in COR #4.
Senator Hoffman removed his objection.
Without objection the amendment was ADOPTED.
MULTI #2: This amendment changes funding sources and makes other
changes to appropriations of the following components in the
following amounts.
Department of Administration
Motor Vehicles BRU and component
Page 5 line 18
Delete: $5,636,200 GF/Program Receipts
Add: $5,636,200 Receipt Supported Services
Department of Education and Early Development
Alyeska Central School BRU and component
Page 12 line 23
Delete: $500,000 GF/Program Receipts
Add: $500,000 Receipt Supported Services
Mt. Edgecumbe Boarding School BRU and component
Page 13 lines 10 and 11
Delete: $57,400 GF/ Program Receipts
Add: $57,400 Receipt Supported Services
Alaska Library and Museums BRU
Museum Operations component
Page 13 line 18
Delete: $293,900 GF/Program Receipts
Add: $293,900 Receipt Supported Services
Department of Revenue
Child Support Enforcement BRU and component
Page 32 line 17
Delete: $3,036,500 GF/Program Receipts
Add: $3,244,00 Receipt Supported Services
Add: $194,200 Federal Receipts
Administration and Support BRU
Agency-wide Unallocated Reduction component
Page 33 lines 24 and 25
Add: $424,500 general funds
Add: $60,500 GF/Program Receipts
Alcohol Beverage Control Board BRU and component
Page 32 lines 19 and 20
Add: $15,000 general funds (hearings/investigate
complaints)
Senator Leman moved for adoption.
Senator Hoffman objected for an explanation.
Senator Leman told of the efforts of the Department of
Administration, the Department of Education and Early Development
and the Division of Legislative Finance to prepare these funding
source changes.
Senator Leman noted the increased funding for the Child Support
Enforcement component would be used to fund five positions. He
qualified that while the amendment does not authorize establishing
new positions, the funds could be utilized to fill existing
vacancies. He stated the purpose of this effort is to address the
backlog in the Division of Child Support Enforcement.
Senator Leman also pointed out this amendment adds funding for the
Alcohol Beverage Control (ABC) Board, reminding the Committee of
the budget subcommittee's intent to identify non-general funds to
use for this program.
AT EASE 11:37 PM / 11:37 PM
The amendment was ADOPTED without objection.
Language Section (cont.)
LANG #3: This amendment deletes "relative" and inserts "compared"
on page 53 line 23. This amendment also inserts language on line
26, following "Act." The amended language of Section 11 reads as
follows.
Sec. 11. REAPPROPRIATION OF UNEXPENDED BALANCE. (a) The
unexpended balance on a cash basis on December 31, 2002, of an
appropriation made in sec. X of this Act is reappropriated to
the department to which the appropriation was made for
operating expenses of that department during January 1, 2003,
through June 30, 2003.
(b) It is the intent of the legislature that each agency
of the state report to the legislature the percentage of the
fiscal year 2003 authorized operating expenditures that were
expended during the first six months of fiscal year 2003
compared to the percentage of fiscal year 2002 authorized
operating expenditures that were expended during the first six
months of fiscal year 2002. The reports shall be submitted to
the legislature by January 31, 2003, and should contain line
item information for each allocation of an appropriation made
in this Act. Each department of state government will be held
accountable for its actions, including compliance with
appropriation made in sec. X of this Act.
This amendment also inserts "an amount not to exceed two-percent
of" following "Act" on page 53 line 27. The amended language of
Section 12 reads as follows.
Section 12. EARLY EXPENDITURE AUTHORITY. Notwithstanding sec.
Y of this Act, an amount not to exceed two-percent of an
appropriation made in sec. Y of this Act may be expended for
the stated purpose of that appropriation January 12, 2003,
contingent upon compliance with the program review provisions
of AS 37.07.080(h).
This amendment also makes conceptual changes to Section 12, "to
reduce the amount of 'second-half' money that can be moved (via the
Legislative Budget and Audit Committee review process) to the
'first-half' of the year."
This amendment also makes the following stipulations.
Identify the appropriations that are excluded from the process
(that is, they get full year appropriation in Sections 1, 2,
and 3 of the bill). Sections 2 and 3 are fund roll-up by
agency and statewide. Excluded appropriations consist of:
• All language appropriations (Sections 10 through end of
bill
• All formula programs (clarify inclusion of Power Cost
Equalization-not included in House language)
• The University of Alaska
• Courts
• Legislature
• Other Allocations specified in the attached list
Divide the remainder of all appropriations in half. The half-
year appropriations will appear as Sections 4 through 9.
(Sections 5 and 7 are fund roll-ups by agency and Sections 8
and 9 are fund roll-ups statewide.)
Insert lead-in language in Section 4.
The following appropriation items are for operating
expenditures from the general fund or other funds as set out
in Section 5 of this Act to the agencies named for the
purposes expressed for the portion of the fiscal year
beginning July 1, 2002 and ending December 31, 2002, unless
otherwise indicated. A department-wide, agency-wide, or
branch-wide unallocated reduction or increase set out in this
section may be allocated among the appropriations made in this
section to that department, agency or branch.
Insert lead-in language in Section 7.
The following appropriation items are for operating
expenditures from the general fund or other funds as set out
in Section 8 of this Act to the agencies named for the
purposes expressed for the portion of the fiscal year
beginning January 1, 2003 and ending June 30, 2003, unless
otherwise indicated. A department-wide, agency-wide, or
branch-wide unallocated reduction or increase set out in this
section may be allocated among the appropriations made in this
section to that department, agency, or branch.
In Sections 4 and 7, reduce each allocation by 10%, and
appropriate that 10% to new Agency-wide Unallocated Increases
components in each agency.
Section 11 of draft version R differs from the House version
of HB 403; it clarifies that accounting is to be on a cash
basis (thus minimizing effort associated with the December 31
close-out) and it includes intent language regarding reports
to the legislature.
Exempt from Bifurcation
Department of Administration
Special Systems
Unlicensed Vessel Participant Annuity Retirement
Plan
Elected Public Officers Retirement System Benefits
Longevity Bonus Grants
Longevity Bonus Grants
Department of Community and Economic Development
State Revenue Sharing
State Revenue Sharing
Municipal Assistance
National Program Receipts
Fisheries Business Tax
Safe Communities Program
Safe Communities Program
Qualified Trade Association Contract
Qualified Trade Association Contract
Alaska Aerospace Development Corporation
Alaska Aerospace Development Corporation
Alaska Aerospace Development Corporation Facilities
Maintenance
Fisheries Enhancement Tax Receipts
Fisheries Enhancement Tax Receipts
Alaska Industrial Development and Export Authority
Alaska Industrial Development and Export Authority
Alaska Industrial Development Corporation
Facilities Maintenance
Alaska Energy Authority Statewide Operations and
Maintenance
Rural Energy Programs
Energy Operations
Circuit Rider
Power Cost Equalization
Alaska Science and Technology Foundation
Alaska Science and Technology Foundation
Alaska Seafood Marketing Institute
Alaska Seafood Marketing Institute
Department of Education and Early Development
K-12 Support
Foundation Program
Tuition Students
Boarding Home Grants
Youth in Detention
Schools for the Handicapped
Community Schools
Pupil Transportation
Pupil Transportation
Alaska Postsecondary Education Commission
Western Interstate Commission for Higher Education-
Student Exchange Program
Department of Environmental Conservation
Air and Water Quality
Air and Water Director
Air Quality
Water Quality
Commercial Passenger Vessel Environmental
Compliance Program
Department of Health and Social Services
Public Assistance
Alaska Temporary Assistance Program
Adult Public Assistance
General Relief Assistance
Old Age Assistance-Alaska Longevity Bonus (ALB)
Hold Harmless
Permanent Fund Dividend Hold Harmless
Tribal Assistance Programs
Medical Assistance
Medical Services
Catastrophic and Chronic Illness Assistance
Catastrophic and Chronic Illness Assistance
(AS 47.08)
Public Assistance Administration
Child Care Benefits
Children's Health Eligibility
Children's Health Eligibility
Purchased Services
Foster Care Base Rate
Foster Care Augmented Rate
Foster Care Special Need
Foster Care Alaska Youth Initiate
Subsidized Adoptions & Guardianship
Court Orders and Reunification Efforts
Department of Military and Veterans Affairs
Alaska National Guard Benefits
Retirement Benefits
Department of Revenue
Permanent Fund Corporation
Permanent Fund Corporation
Alaska Housing Finance Corporation
Alaska Housing Finance Corporation Operations
Department of Transportation and Public Facilities
International Airports
International Airport Systems Office
Anchorage Airport Administration
Anchorage Airport Facilities
Anchorage Airport Field and Equipment Maintenance
Anchorage Airport Operations
Anchorage Airport Safety
Fairbanks Airport Administration
Fairbanks Airport Facilities
Fairbanks Airport Field and Equipment Maintenance
Fairbanks Airport Operations
Fairbanks Airport Safety
Marine Highway System
Marine Vessel Operations
Marine Engineering
Overhaul
Reservations and Marketing
Southeast Shore Operations
Southwest Shore Operations
Vessel Operations Management
Southeast Vessel Operations
Southwest Vessel Operations
University of Alaska
University of Alaska
Budget Reductions/Additions-Systemwide
Statewide Programs and Services
Statewide Services
Statewide Networks (ITS)
University of Alaska Anchorage
Anchorage Campus
Kenai Peninsula College
Kodiak College
Matanuska-Susitna College
Prince William Sound Community College
University of Alaska Fairbanks
Cooperative Extension Service
Bristol Bay Campus
Chukchi Campus
Fairbanks Campus
Fairbanks Organized Research
Interior-Aleutians Campus
Kuskokwim Campus
Northwest Campus
Rural College
Tanana Valley Campus
University of Alaska Southeast
Juneau Campus
Ketchikan Campus
Sitka Campus
Alaska Court System
Alaska Court System
Appellate Courts
Trial Courts
Administration and Support
Agency-wide Unallocated Reduction
Commission on Judicial Conduct
Commission on Judicial Conduct
Judicial Council
Judicial Council
Courtwatch
Legislature
Budget and Audit Committee
Legislative Audit
Ombudsman
Legislative Finance
Committee Expenses
Legislature State Facilities Rent
Unallocated Reduction
Agency-wide Unallocated Reduction
Legislative Council
Salaries and Allowances
Administrative Services
Session Expenses
Council and Subcommittees
Legal and Research Services
Select Committee on Ethics
Redistricting Board
Legislative Operating Budget
Legislative Operating Budget
Debt Service and Special Appropriations
Debt Service
Debt Retirement Fund
Certificates of Participation
School Debt Reimbursement
Alaska Clean Water Fund Revenue Bonds
Alaska Drinking Water Fund Revenue Bonds
International Airport Revenue Bonds
Special Appropriations
Anchorage Jail Lease
Fund Transfers
Alaska Children's Trust
Alaska Clean Water Fund
Alaska Drinking Water Fund
Disaster Relief Fund
Fish and Game Fund
Marine Highway Stabilization
Municipal Capital Project Matching Grant Fund
Oil and Hazardous Substance Release Prevention
Account
Oil and Hazardous Substance Release Response
Account
Power Cost Equalization and Rural Electric
Capitalization Fund
Permanent Fund Dividend Fund
Storage Tank Assistance Fund
Unincorporated Community Capital Project Matching
Grant Fund
Power Project Fund
Co-Chair Donley explained this amendment would bifurcate the FY 03
operating budget appropriations, similar to the bifurcation
approved in the House of Representatives budget legislation.
Senator Ward moved for adoption.
Senator Hoffman objected for explanation.
DAVID TEAL, Director, Division of Legislative Finance, detailed the
amendment, beginning with the reporting requirements inserted to
Section 11, which he said would provide information to the
Legislature that could be used in preparing the FY 04 operating
budget. He noted that the Division of Legal and Research Services
would replace the references to Section X and Section Y in the
amendment with the pertinent bill section numbers once all of the
adopted amendments are incorporated into the committee substitute.
Mr. Teal spoke to the language changes to Section 12, pointing out
that the language approved by the House of Representatives allows
for unrestricting transferring of funds allocated for the second
half of the fiscal year to be spent during the first half. He
informed that the language in this amendment restricts the amount
of funds that could be transferred to "two percent of the budget".
Mr. Teal stated that programs not listed as exempt from
bifurcation, would be subject to the bifurcation process.
Mr. Teal explained that the ten percent reduction from the
bifurcated allocations, stipulated in the amendment to language in
Sections 4 and 5, is transferred to an unallocated increase
component for each agency and would be available for expenditure at
the department's discretion.
AT EASE 11:43 PM / 11:49 PM
Ms. McConnell expressed that she was unsure whether the authors of
this amendment were "hoping" that with the change of the
gubernatorial administration, the political party of the
administration would change from Democratic to Republican. She
informed that the bifurcation provisions would significantly
increase the workload, in a year in which the Legislature is also
making large budget reductions. She remarked this process is not
"worthy" of the American system, where smooth transitions are made
between administrations.
Ms. McConnell suggested that "human nature" is such that "we tend
to ascribe to other people, the motives that we would have
ourselves." She expressed that comments made to GOV #1, "really
brought that home to me," as the comments indicated that only the
new Administration would "suffer" from the budget reductions to the
Governor's Office. She stated this is because the Committee made
the implication that the current Administration would expend "more
than its share" of the appropriated funds, thus providing the new
Administration with less than its share. On the contrary, she
emphasized that bifurcating the budget would restrict the
flexibility of the next governor in establishing a new
administration.
Ms. McConnell asserted that the current Administration views the
appropriations as "the public's dollars for State services and we
feel a tremendous obligation" to be responsible in implementing the
budget. She pointed out that, as represented in the supplemental
budgets of the last several years, certain programs are not fully
funded in the current year's budget, and must be addressed the next
legislative session regardless of who is the new governor.
Ms. McConnell reiterated testimony she gave before the Committee at
an earlier hearing, regarding practical and legal concerns of
bifurcation. She stressed, "I really can't overemphasize how
difficult a job I think you are creating for an administration
that's going to come in with lots of new people taking jobs
throughout State government with tremendous responsibilities for
establishing their own administration." She shared her experience
when she entered her current position 7 ½ years prior, and the
great amount of work required by the new staff in the Office of
Management and Budget, each department and the governor's office,
to review that year's budget and prepare supplemental funding
requests as well as proposing a budget for the next fiscal year.
She noted that the next administration would have less time to
accomplish this, due to deadline changes made by the legislature.
Ms. McConnell stated that the budgets for each program do not
necessarily "fit neatly into six month categories" giving the
unpredictable timing and amounts of snowfall as an example. She
spoke of the annual purchases of gravel, sand and road salt by the
Department of Transportation and Public Facilities as well as fuel
purchased by all departments and transported to locations across
the State to be "in position for the winter activities." As a
result, she stressed that a disproportionate amount of the budget
must be expended in the first portion of the fiscal year to take
advantage of bulk purchase prices. She predicted that the cost of
these supplies could increase if the departments were prohibited
from making large purchases.
Ms. McConnell pointed out that current statutes do not allow the
Legislative Budget and Audit Committee to appropriate general
funds; therefore, the provision in the amendment calling for
transfer of funds allocated to the second six months of the fiscal
year in the event of a special need, could not be implemented. She
also expected the members of the Legislative Budget and Audit
Committee would be busy during the interim and unable to attend
additional meetings.
Ms. McConnell added that quarterly payments to grant recipients
normally made during the month of December would not occur until
January, causing cash-flow problems for non-profit organizations.
Ms. McConnell spoke to the provision in the amendment requiring the
Administration to issue a comparison report of expenditures in the
first six months of FY 03 to the same time period in FY 02. She
informed that this data would be of little benefit if the
departments were not given adequate time to include explanations of
the expenditures, such as the amount of snowfall, the number of
prisoners, etc. She stated that changes in expenditure amounts
would otherwise be "taken out of context."
Ms. McConnell opined that of greater concern than the bifurcation
proposal is the inadequate funding to many service programs.
However, she asked the Committee to not adopt this amendment, as it
would require "unproductive" work.
Senator Hoffman asked if the list of programs exempt from
bifurcation is identical to that approved by the House of
Representatives.
Co-Chair Donley noted the Western Interstate Commission for Higher
Education (WICHE) program is included in this list but was omitted
from the House of Representatives exemption.
Mr. Teal explained that the WHICHE program must pay dues to the
cooperative organization "up front"; therefore, all of this
program's expenses occur within the first six months of the fiscal
year. He also noted that the amendment states "all formulas" are
included in the exemption list, although the PCE program is not,
nor is it exempted in the budget approved by the House of
Representatives.
Senator Hoffman asked why the PCE program is not included.
Mr. Teal did not know.
AT EASE 12:01 AM / 12:05 AM
Co-Chair Donley stated the PCE program was not exempted in this
amendment because the House of Representative did not exempt it. He
did not object to adding it to the exclusion list.
Senator Hoffman moved to amend the amendment to exempt the PCE
program from bifurcation.
Without objection LANG #3 was AMENDED.
A roll call was taken on the motion to adopt LANG #3 as amended.
IN FAVOR: Senator Leman, Senator Ward, Senator Wilken, Senator
Green, Co-Chair Kelly and Co-Chair Donley
OPPOSED: Senator Hoffman, Senator Olson and Senator Austerman,
The motion PASSED (6-3)
The amended amendment was ADOPTED.
Co-Chair Kelly moved "House Bill 403 from Committee with individual
recommendations, as amended, with accompanying intent language."
There was no objection.
Co-Chair Donley thanked staff members of the Committee and the
Division of Legislative Finance for their efforts in preparing this
budget.
Without objection SCS CS HB 403 (FIN), 22-LS1295\R, as amended
MOVED from Committee.
ADJOURNMENT
Co-Chair Dave Donley adjourned the meeting at 12:09 AM.
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