Legislature(2003 - 2004)
04/14/2003 09:01 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
April 14, 2003
9:01 AM
TAPES
SFC-03 # 46, Side A
SFC 03 # 46, Side B
SFC 03 # 47, Side A
CALL TO ORDER
Co-Chair Lyda Green convened the meeting at approximately 9:01 AM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Ben Stevens
Senator Lyman Hoffman
Senator Donny Olson
Senator Robin Taylor
Also Attending: JANET CLARKE, Director, Division of Administrative
Services, Department of Health and Social Services; KEVIN BROOKS,
Director, Division of Administrative Services, Department of Fish
and Game; KAREN MORGAN, Director, Department of Administration,
Department of Public Safety; ED FISHER, Deputy Commissioner,
Department of Labor and Workforce Development; GREG O'CLARAY,
Commissioner, Department of Labor and Workforce Development;
KATHERYN DAUGHEETTEE, Director, Division of Administrative
Services, Department of Law; NICO BUS, Administrative Services
Manager and Acting Director, Division of Support Services,
Department of Natural Resources; MIKE MAHER, Director, Division of
Administrative Services, Department of Environmental Conservation;
BARBARA TOWN, Budget Services, Division of Administrative Services,
Department of Environmental Conservation;
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
SB 35-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 75-APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 36-APPROP:MENTAL HEALTH BUDGET
HB 76-APPROP:MENTAL HEALTH BUDGET
The Committee heard reports for the budget subcommittees of the
Department of Community and Economic Development, the Department of
Education and Early Development, the Department of Transportation
and Public Facilities, the Department of Corrections, the
Department of Health and Social Services, the Office of the
Governor, the Alaska Court System, the Legislature, the Department
of Fish and Game, the Department of Public Safety, the Department
of Labor and Workforce Development, the Department of Law, the
Department of Natural Resources, and the Department of
Environmental Conservation. The bill was held in committee.
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 35
"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 SS FOR HOUSE BILL NO. 75(FIN) am(brf sup maj fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 36
"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."
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 76(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."
Department of Community and Economic Development
Co-Chair Wilken, Chair
Senator Fred Dyson
Senator Gary Stevens
Senator Donny Olson
The Senate Finance Budget Subcommittee for the Department of
Community and Economic Development met and reports the
following budget closeout summary. For complete numerical
analysis of this budget, please refer to the actual numbers
contained in the budget documents published by the Legislative
Finance Division.
The Senate Finance Budget Subcommittee recommends funding the
Department of Community and Economic Development general fund
budget at the Governor's requested level of $32,870,600, which
represents a 19.1 % reduction in general funds spending for
this department compared to its FY 03 Management Plan.
The Subcommittee recommends that Total Agency expenditures be
increased by $485,300 above the Governor's Amended budget
request. Please note that this increase is funded entirely by
receipt-supported services and Regulatory Commission of Alaska
Receipts (not general funds). Furthermore, this recommendation
comes at the request of the Department and is embodied by two
transactions:
1. The fiscal note associated with House Bill 159, relating to
the Alaska Commercial Fishing and Agriculture Bank, was
originally expected to yield a total savings of $244,400
within the Division of Banking, Securities, and
Corporations. However, upon further review by the
Department, it was determined that the true savings would
be closer to $126,000. Therefore, and in anticipation of HB
159 passing into law, the Subcommittee chose to acknowledge
the revised fiscal note and impose a decrement to that
Division by $118,400.
2. The Governor shifted the Public Advocacy duties within the
Regulatory Commission of Alaska (RCA) to the Office of
Attorney General, and, originally, moved seven of its staff
and funding along as well. However, it has since been
determined that these staff are not involved with Public
Advocacy work, so the Department requests that these staff
and funding remain in RCA. Hence, $359,300 in receipt-
supported services funds were put back into that BRU
[Budget Request Unit].
The Senate Finance Subcommittee also accepts the Governor's
elimination of all funding for the Alaska Science and
Technology Foundation (ASTF). However, the Subcommittee would
like to recommend not transferring the balance of the ASTF
Endowment into the General Fund (as the Governor is
proposing). It may be worthwhile to consider maintaining the
balance of the endowment as is and instead use those monies as
one-time spending under "other funds".
Co-Chair Wilken read the subcommittee report into the record.
Co-Chair Wilken noted this results in reduction of five permanent
full time and two permanent part time positions.
Senator Hoffman asked how the Power Cost Equalization (PCE) program
would be affected by this proposal.
Co-Chair Wilken replied PCE would be funded at the level requested
by the Governor.
Senator Hoffman understood there to be a $3.1 reduction over the
previous year's funding. He indicated he would research the matter.
Co-Chair Wilken stated that PCE was not specifically discussed by
the subcommittee subsequently no changes were made to the amount
recommended by the Governor.
Co-Chair Green understood there to be no reduction to the FY 03
management plan appropriation.
Senator Bunde asked how funding would be offset if the ASTF
endowment were not deposited into the general fund as requested by
the Governor.
Co-Chair Wilken relayed that the subcommittee recommendation does
not continue the ASTF program, although flexibility is requested to
hold the funds for future consideration in the FY 04 budget.
Department of Education and Early Development
Co-Chair Wilken, Chair
Senator Fred Dyson
Senator Bettye Davis
Department of Education and Early Development
FY 04 Senate Finance Subcommittee
April 11, 2003
The Senate Finance Subcommittee for the Department of
Education and Early Development forwarded a proposed FY 04
budget to the full Senate Finance Committee for consideration
that totals $902,843,900. This amount includes:
1) $708,599,800 in general purpose funds (33.1% of total state
general purpose funds);
2) $160,922,800 in federal funds; and
3) $33,361,300 in other funds.
K-12 Funding Summary
· Education Funding Formula is funded at $4,010 per student
· Learning Opportunity Grants (LOGs) are funded at $20
million within the language section, a drop of $9,340,900
from the supplemental amount approved last session.
· Pupil Transportation costs will be reimbursed at 80% of
FY 03 funding. (However, based on the projected increase
of transportation FY 04 expenses, the actual
appropriation of $43,188,200 is 74% of the actual FY 04
request.)
· Tuition/Ward of the State Program funding ($2,225,000) is
eliminated, affecting mainly Anchorage, Fairbanks, and
Kenai.
Fund Source Changes
· Slightly over $2.5 million of general purpose funds
replaced federal TANF [Temporary Assistance for Needy
Families] funds to maintain a current level for Head
Start Grants.
· A new Autism Training and Educational Initiative is
funded with $150,000 MHTAAR [Mental Health Trust
Authority Authorized Receipts] funds.
· Approximately $45 million No Child Left Behind federal
funds will be passed through 53 local school districts.
· The Museum component received a $30,000 increase in
Receipt Supported Services to help maintain the current
level of service at the Sheldon Jackson Museum in Sitka.
Program Changes
· Child Care Assistance and Licensing is transferred to the
Department of Health and Social Services.
· Alaska State Community Service Commission is transferred
to the Department of Community and Economic Development.
· Alaska Vocational Training Education Center is
transferred to the Department of Labor and Workforce
Development.
· Alaska Youth Initiative and Out-of-State Placement
programs are transferred to the Department of Health and
Social Services.
Co-Chair Wilken highlighted that the subcommittee recommends
adopting the Governor's proposal with the exception of increased
receipt authority for the Sheldon Jackson Museum.
Co-Chair Wilken voiced concerns of the subcommittee regarding
reductions to education funding and listed those amounts as
reflected in the subcommittee report.
Co-Chair Wilken pointed out that the subcommittee found that the
number of students claimed as "intensive service students" has
increased 26.2 percent in the past five years. He explained that
school districts receive five times the normal student dollars, or
approximately $20,000, for each of these students. He reported that
the subcommittee recommends an audit of this system at cost of
$223,000. He surmised that a return from this audit could be "well
in excess" of the amount spent.
Co-Chair Wilken noted the subcommittee recommends the elimination
of Alyeska Central School interagency receipts, although he was
unsure of the impact of this action if the pending SB 107-
CORRESPONDENCE STUDY does not pass into law. He informed that this
budgetary change would eliminate 48 positions.
Co-Chair Wilken stated that passage of SB 110-UNDER SCHOOL AGE
STUDENTS, SB 121-COMMUNITY SCHOOLS and SB 107-CORRESPONDENCE STUDY
are necessary to implement the subcommittee's recommended budget.
He predicted that amendments to the FY 04 operating budget would be
necessary if any of the aforementioned bills do not pass.
Co-Chair Wilken indicated that the transfer of several programs
from the Department to other agencies has resulted in a decrease of
87 permanent full time positions, 25 permanent part time positions
and one temporary position. He qualified that funding for these
positions would be reflected as increases to the budgets of the
affected departments.
Co-Chair Wilken referenced a letter of concern signed by the
subcommittee members and expressing concern over the Governor's
proposed $29.3 million reduction to the Department from FY 03
appropriations and intent to identify additional funding, which
reads as follows.
The Senate Finance Subcommittee for the Department of
Education and Early Development met on Friday, April 11, 2003
and voted to forward the attached spreadsheets to the full
Senate Finance Committee for consideration.
The Subcommittee's recommendation for the Department's budget
meets the requested allocation target, however, we have
serious reservations about the proposed level of funding for
K-12 public education. The cumulative effect of the proposed
reductions to the Learning Opportunity Grants program, pupil
transportation, debt reimbursement, and a lack of recognition
of the increased school operating costs will seriously impact
the educational programs in all 53 school districts.
As the Senate Finance Committee continues its deliberations on
the total state operating budget, we are hopeful that
additional funding will also be available so that our local
school districts can continue to offer Alaska students the
best educational opportunity possible.
Senator Bunde noted members received extensive input regarding the
Alyeska Central School (ACS). He noted arguments were made
challenging the claim that closure of this program would save the
State money. He asked if the subcommittee addressed the matter.
Co-Chair Wilken responded the ACS is comprised of two components:
the summer school program and the correspondence program. He stated
that closure of the summer school program would result in savings
to the State. He reported that the subcommittee determined that
closure of the correspondence program would be revenue neutral. He
explained that because participating students would attend other
schools, the State would continue to expend funds.
Senator Hoffman was encouraged that the co-chair had concerns about
the limited funding for education. He expressed he would anticipate
the Committee's actions to rectify the situation. He preferred that
the budget include funding for those programs subject to changes
pending the passage of other legislation. He suggested that the
budget could be amended in the event those bills were to pass.
Co-Chair Green commented on the difficulties in preparing the
budget for this Department, due to the separate pending legislation
and the transfer of programs to other agencies. She pointed out
that enactment of SB 345, relating to school districts becoming
vendors, from the previous legislative session could result in
increased funds for this Department. She furthered that if
psychiatric students were returned to Alaska, funds would no longer
be sent to out of State facilities for the purpose of educating
these Alaskan students.
Department of Transportation and Public Facilities
Co-Chair Wilken, Chair
Senator Scott Ogan
Senator Tom Wagoner
Senator Georgianna Lincoln
Talking Points on DOT&PF Subcommittee Closeout
· The purpose of this meeting is to closeout the DOT&PF
operating budget subcommittee and adopt the recommendations to
be forwarded to the full Senate Finance Committee for
consideration.
· The Senate Finance Operating Budget allocation for DOT&PF
resulted in a $699,700 general fund reduction to the
Governor's Amended Request. This has been accomplished and is
reflected in the transaction sheets [Available from the
Division of Legislative Finance 907-465-3795].
· The first handout "Agency Totals - FY 04 Operating Budget -
Senate Structure" shows a summary of the subcommittee's
recommendation [Available from the Division of Legislative
Finance 907-465-3795].
· First is a $30,000 reduction in contractual expenses from the
Highways and Aviation BRU. This money was a one-time
appropriation in the FY 03 Management Plan intended to
increase the number of signs reminding slow drivers to pull
over so the congested traffic behind them can pass. This
reduction was recommended in the House subcommittee.
· Second, the subcommittee recommends a $699,700 reduction in
General Funds and increase the CIP [Capital Improvement
Projects] by the same amount which will be reflected in the
Department's indirect cost allocation plan (ICAP).
ΠIt has come to my attention that the Department has
elected to charge rates lower than what is permissible
by the Federal Highway Administration for their ICAP.
ΠThis subcommittee believes that the Department should
take full advantage of federal CIP receipts that can
be used for overhead costs in order to relieve some
pressure from the general fund.
· This subcommittee report fully funds the Governor's request
for FY 04 and supports his commitment to continue an increased
level of highway and airport maintenance. This report also
reflects the subcommittee's support for the Governor's
reorganization of the Department.
Co-Chair Wilken overviewed the talking points.
Co-Chair Wilken commented he was impressed at the willingness and
cooperation of Department personnel to achieve efficiencies and
utilize funds for maintenance and operations, which he
characterized as priorities. He stated this Department is receiving
"intense scrutiny" by the commissioner and that further advances
would be reflected in the FY 05 operating budget request.
Senator Taylor asked about the subcommittee's recommendation to
fund the Marine Highway System $579,000 less than the amount
approved by the House of Representatives.
[Note tape interruption]
Senator Taylor agreed to discuss the matter at a later time.
Senator Olson asked if the subcommittee discussed the delays and
budget overruns of the improvements to the Ted Stevens Anchorage
International Airport.
Co-Chair Wilken responded the issue was not addressed in this
budget, as it is "a whole different subject".
Department of Corrections
Co-Chair Green, Chair
Senator Scott Ogan
Senator Gary Stevens
Senator Gretchen Guess
The Senate Finance subcommittee on the Department of
Corrections has considered the Governor's FY 04 budget
proposal. Administrative Order No. 207 was issued by the
Governor directing the Department to "streamline operations,
realize efficiencies, contain costs and improve functions."
In response, the Department consolidated its operations into
three divisions: Institution, Probation and Parole, and
Administrative Services. The Department is in the process of
consolidating functions at both the management and operational
levels to save and redirect funding for front line positions.
Legislation is making its way through the House and Senate to
save State general funds through the Correctional Industries
Program and the concept of medical parole for prisoners who
are terminally ill and incapable of presenting a danger to
society.
The Governor's FY 04 budget proposal reduces State general
fund expenditures by $6.5 million, and reduces overall
spending by $2.8 million.
The subcommittee recommends the Governor's proposed FY 04
budget with the following structural change: creation of a new
component, the Anchorage Correctional Complex, that combines
the Anchorage Jail and the Cook Inlet Correctional Facility
into one management unit. This change is outlined in
Administrative Order No. 207, and does not result in any
change in FY 04 funding levels.
Governor's Amended
General Purpose $148,239,900
Federal 3,451,100
Other 26,180,500
Total FY 04 177,925,500
Changes $0.0
Subcommittee Recommendation
General Purpose $148,239,900
Federal 3,451,100
Other 26,180,500
Total FY 04 177,925,500
Co-Chair Green overviewed the subcommittee report.
Co-Chair Green furthered that additional funds from permanent fund
dividend garnishments would be utilized to fund this Department and
that reductions would be made to some inmate programs. She pointed
out the Governor's proposed budget includes a one-half percent, or
$800,000, reduction "across the board".
Department of Health and Social Services
Co-Chair Green, Chair
Senator Ben Stevens, Chair
Senator Ralph Seekins
Senator Hollis French
The Senate Finance subcommittee on the Department of Health
and Social Services held meetings with the Department during
the last two weeks to discuss the agency's programs and FY 04
budget proposal. Major changes have been proposed by the
Governor that include:
· Internal reorganization and consolidation of functions.
· Creation of a department-wide program review office for
program efficiencies, coordination, and integrity.
· Decentralized administration of the Medicaid Program of
four areas of care:
o Children's Services
o Behavioral Health Services
o Seniors and Disabilities Services
o Health Care Services
· Senior and children's programs transferred from other
agencies:
o Longevity Programs and Boards, Pioneers' Home, and
Senior Services from the Department of Administration
o Child Care Assistance from the Department of Education
and Early Development
· Elimination of the Longevity Bonus Grants program.
· General fund reductions through cost containment measures
and reduced services:
o Program reductions through legislation (SB 109, SB
117, SB 123, SB 124)
o Medicaid cost containment and ProShare refinancing
o Reductions to lower priority grants and advocacy
grants
· Full funding increases in formula driven programs to reduce
supplemental requests.
The subcommittee has accepted the Governor's recommended
changes outlined above. The Department is making tremendous
strides toward improving the quality and delivery of services,
maximizing existing resources, and ensuring accountability and
integrity in its programs.
In addition to the Governor's baseline FY 04 budget proposal,
the subcommittee recommends the changes detailed in the
following pages [available from the Division of Legislative
Finance 907-465-3795]. These changes net a decrease of State
general fund expenditures of $7.4 million below the Governor's
proposal.
Governor's Amended
General Purpose $552,961,100
Federal 897,103,000
Other 221,994,000
Total FY 04 1,672,058,100
Changes
General Purpose ($7,394,400)
Federal 0.0
Other (8,300,800)
Total FY 04 (15,695,200)
Subcommittee Recommendations
General Purpose $545,566,700
Federal 897,103,000
Other 213,693,200
Total FY 04 1,656,362,900
Co-Chair Green remarked that in addition to accepting the
Governor's proposal, the subcommittee recommends the "reprogramming
of alcohol tax and tobacco settlement funds." She furthered that at
the request of the Alaska Mental Health Trust Authority (MHTA), the
subcommittee also recommends elimination of two programs and
changes to the State's comprehensive mental health programs.
Co-Chair Green commented on the many interest groups and affected
parties participating in this budgetary process, some of which
contribute funds. She told of efforts made to satisfy these
entities and ensure feasibility for the Department.
Co-Chair Green detailed reductions to the Children's' Services
Budget Request Unit (BRU) of $1.5 million and the change to the
Foster Care, Special Needs base rate, due to over-funding and
nonuse of funds. She also noted a $500,000 appropriation for court
orders and reunification has historically been included in the
budget appropriation, although this item would be funded through a
supplemental appropriation, as actual expenditures could not be
anticipated. She pointed out this is similar to the funding
procedure for judgments and miscellaneous claims.
Co-Chair Green explained that the subcommittee recommends utilizing
alcohol tax revenues to fund existing behavioral health programs
within Medicaid and utilizing tobacco settlement receipts to fund
treatment of tobacco related illnesses. She added that the tobacco
prevention and control program would no longer be partially funded
with general funds and that overall funding would be reduced to FY
02 appropriation amounts according to the subcommittee
recommendation.
Co-Chair Green spoke to the subcommittee recommendations for
incremental increases to grant programs including the Infant
Learning program grants, and of efforts to achieve a standard to
reach all at-risk children and those demonstrating developmental
disabilities or delays, similar to the federal standard. She added
that the subcommittee recommends the programs be needs based.
Co-Chair Green relayed that the subcommittee focus on the community
health grants has been to direct services to individuals based on
priority and that less funds would be expended for non-direct
services.
Co-Chair Green then informed of the subcommittee's recommendation
to reduce the Department's budget by $490,000 with the intent that
the reduction would be distributed throughout personal services,
travel expenses and contractual services.
Co-Chair Green explained the proposed elimination of the Balloon
Project, noting that the three-year pilot project was extended two
more years. She assured the efforts would continue with the
transfer of front line social worker positions and the creation of
an Adoption Placement Legal Services component. She stressed the
importance of funding the legal expenses involved in adoption
placement.
Co-Chair Green stated that the Healthy Families program had
previously been funded utilizing Temporary Assistance for Needy
Families (TANF) funds, which are no longer available. However, she
pointed out the subcommittee recommends that the Better Beginnings
portion of the program be transferred to Children's Service
Management with funding "earmarked" by US Senator Ted Stevens.
Co-Chair Green relayed that the subcommittee and the MHTA addressed
the Community Health, Alaska Psychiatric Institute (API) and
recommended funding the "single point of entry" program, as well as
"minor changes" to accommodate those needs.
Co-Chair Wilken understood the subcommittee recommends reducing
general fund funding to the $4.9 million infant learning program by
$250,000. He calculated this would be approximately five percent of
the total expenditure. He also noted subcommittee guidelines on
delivery of the services in a more efficient manner.
Co-Chair Green affirmed.
Co-Chair Wilken next clarified that the subcommittee recommends
elimination of the $158,000 general fund component for Tobacco
Prevention and Control item, and transferring the remaining $2.04
million of tobacco settlement funds amongst other tobacco related
services.
Co-Chair Green affirmed the tobacco settlement receipts would still
be used to fund tobacco-related services, specifically to pay the
Medicaid portion of the expenses for those who suffer from alcohol
or tobacco-related diseases and illnesses.
Co-Chair Green furthered that the creation of the Tobacco
Prevention and Control program required a certain level of funding
and that the program is now operational, with television
commercials completed and brochures printed, etc.
Senator Bunde cautioned that the program is currently working and
should not be changed so that it no longer works.
Co-Chair Green assured that the program would receive over $2
million under the subcommittee proposal, which she surmised is
adequate to maintain operations.
Senator Hoffman continued to support the Longevity Bonus program
and noted that the subcommittee recommends completely eliminating
the funding. He asserted that the Legislature made a commitment
regarding this program.
Senator Hoffman next addressed the Balloon Project, which has been
very successful, with 90 percent achievement. He asked with the
transfer of the two social worker positions if the primary
functions of those positions would continue to address the
fundamentals of the program.
Co-Chair Green indicated this is her intent. She told of the
expectation that as the number of children in foster care "left the
system" through adoption, the workload of this program would level
off. She requested further detail from the Department about
protecting the integrity of the project.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, affirmed the intent that
the positions would remain focused on the Balloon Project and not
become assigned to other functions.
Senator Hoffman shared Senator Bunde's concerns regarding the
appropriation of tobacco settlement funds for uses other than the
Tobacco Prevention and Control program.
Ms. Clarke pointed out the adjustment recommended by the
subcommittee is not consistent with Governor's proposed budget. She
expressed disappointment with the proposed transfer of the funds,
although understood the budget constrains and recognized the
relationship between the high Medicaid costs of treating tobacco
related illnesses.
Office of the Governor
Co-Chair Green, Chair
Co-Chair Wilken
Senator Gene Therriault
Senator John Cowdery
Senator Donny Olson
Governor's Office FY 04 Operating Budget
Subcommittee Recommendations
The Senate Finance subcommittee on the Governor's Office FY 04
operating budget denied the request for a statewide
unallocated reduction of $2,000,000, putting the Governor's
Office FY 04 authorization at $14,455,900 in general funds and
$14,679,500 in total.
With the exception of a general fund increase to the
Governor's Contingency Fund for unexpected situations, this
recommendation is primarily a maintenance budget for the
Governor's Office. After adjustments are made for program
transfers within the Governor's Office and to other
departments, the result is the FY 03 management plan plus
increases necessary to pay higher health insurance premiums,
an increase in interagency receipts for Denali Commission
staff, and federal receipts for the Human Rights Commission.
The FY 04 Governor's Office budget request reflects the
following organizational changes:
· Primary responsibilities of the Equal Employment
Opportunity Office are transferred to the Department of
Administration, Division of Personnel.
· Responsibilities of the Division of Governmental
Coordination and the Seismic Hazards Safety Commission are
transferred to the Department of Natural Resources.
· Savings from this reorganization are transferred to the
Office of Management and Budget to support new audit
functions.
· The Division of Elections is assuming responsibility for
APOC [Alaska Public Offices Commission] reporting provided
SB 119 / HB 157 passes. If legislation does no pass,
funding and positions will remain within the Department of
Administration.
Co-Chair Green read the subcommittee report into the record.
Alaska Court System
Co-Chair Green, Chair
Senator John Cowdery
Senator Tom Wagoner
Senator Hollis French
The Senate Finance Subcommittee recommendations for the Court
System's FY 04 operating budget result in an operating budget
for the Court System of $55,998,400, of which $54,845,500 is
general funds. Below is a summary of the increments approved.
The following requests for general fund increases are approved
under this proposal:
· $75 per month per employee increase in health insurance
premiums $598,800
· Wide-area network fee increase (data processing
chargeback) $271,500
· Courtroom security for Juneau, Kenai and Palmer $230,000
· Third District - Judge and Court Clerk $180,100
· Second District - Kotzebue Court Relocations $128,000
· Second District - Rent increase in Unalakleet $6,100
· Fourth District - Bethel Courtroom addition $45,000
Requests for increments in other funding sources are approved
as follows:
· Authority to Receive and Expend Non-Federal Grant Funds
(Statutory Designated Program Receipts) $10,000
· Court-Coordinated Resources Project (MHTAAR) $8,200
· Domestic Violence Case Handling Improvements (Federal
Receipts) $200,000
· Family Law Self-Help Center Facilitator (Inter-Agency
Receipts - federal funds from the Child Support
Enforcement Division, [Department of Revenue]) $45,600
These increments represent the court system's highest
priorities and allow the courts to improve efficiency and
security of judicial proceedings.
Co-Chair Green read the subcommittee report into the record. She
noted the increase over the FY 02 budget would allow the Alaska
Court System to operate at a maintenance level.
Co-Chair Green relayed that after hearing testimony on the
conditions of some of the courtrooms, the subcommittee felt
compelled to recommend funding for the aforementioned improvements.
Co-Chair Green informed that the subcommittee recommendation denied
a requested $1.15 million in increments.
Senator Hoffman pointed out that funding for health insurance
increases is not included in the subcommittees' recommendations for
other departments and asked the intent of the Committee.
Co-Chair Wilken clarified that funding for this item is included in
the proposals of the three budget subcommittees that he chairs.
Co-Chair Green was unsure if funding was included for every
department and assured the matter would be addressed.
Senator Hoffman stated that the Department of Natural Resources
budget subcommittee recommendation does not include such funding
because the chair of that subcommittee, Senator Bunde, indicated
the full Committee would address the matter.
Legislature
Co-Chair Green, Chair
Co-Chair Wilken
Senator Gene Therriault
Senator John Cowdery
Senator Lyman Hoffman
The Senate Finance subcommittee recommendation for the
Legislature's FY 04 budget totals $38,969,400, of which
$38,043,800 is general funds. The recommendation reflects a
total reduction of $622,100 from the FY 03 management plan and
is $1,050,600 below the Governor's amended request for the
Legislature.
This recommendation provides funding for the individual
components at the amounts requested by Legislative Affairs,
Legislative Audit and Legislative Finance. With two
exceptions, it is the same budget as adopted by the House
Subcommittee.
1) The Office of Victim's Rights requested an increase of
$35,300 in PFD [Permanent Fund Dividend] funds and a
$14,800 fund source change from general funds to PFD funds
to cover increased costs for FY 04. The House approved the
increase and fund transfer and reduced PFD funds available
for the Department of Corrections. This recommendation
approves the requested increase, but funds it with general
funds rather than PFD funds.
2) The House authorized an FY 04 allocation of $1,557,800 for
Committee Expenses of the Budget and Audit Committee. After
consultation with the chair of that committee, the
contractual line of this allocation was reduced by $100,000
in the Senate recommendation.
Co-Chair Green read the subcommittee report into the record.
Department of Fish and Game
Senator Ben Stevens, Chair
Senator Scott Ogan
Senator Tom Wagoner
Senator Kim Elton
Senate Finance Subcommittee
Department of Fish and Game Budget
The Senate Finance Fish and Game Budget Subcommittee is
funding the Department's FY 04 budget request at the
Governor's level for general funds with the following
recommendations:
· At the Department's request, the subcommittee recommends an
increment of $500,000 federal receipt authority for the
implementation of the US/Canada Yukon River Treaty.
· Transfer $800,000 of general funds from the State
Subsistence component to various Commercial Fisheries
Regional components.
· Increase fish and game funds by $190,000: $95,000 to be
allocated to the Sport Fisheries appropriation and $95,000
to the Wildlife Conservation appropriation.
· Sport Fisheries Habitat requested $264,000 general funds
resulting from the transfer of habitat functions from the
Department of Natural Resources. The subcommittee
recognizes this general fund transfer is part of an agency
reorganization cost and expects this to be a one-time need
of general fund.
Senator B. Stevens overviewed the information contained in the
budget subcommittee report.
Senator B. Stevens noted the subcommittee recommends the Division
of Subsistence be funded at the FY 03 level of $224,000 general
funds. He told of a temporary transfer of some Division of Sport
Fish duties to the Division of Habitat, until habitat biologists
could be found positions within the Division of Sport Fish.
Senator Hoffman referenced $35 million for disaster relief and
asked how the State would receive and expend those funds, as the
Legislature has the power of appropriation regardless of the
Governor's intention.
Senator B. Stevens understood the Governor was preparing a proposal
for the use of these funds.
Senator Hoffman asked if separate legislation would be enacted
during this session or whether the appropriation would be included
in the operating budget.
Senator B. Stevens was unsure of the process.
Senator Hoffman stressed the importance of beginning implementation
before the fishing season begins. He encouraged the Legislature
take action before the session concludes.
Senator Taylor asked the funding source of the Crystal Lake
Hatchery appropriation of $192,700.
Senator B. Stevens recalled discussion on the matter and deferred
to the Department.
KEVIN BROOKS, Director, Division of Administrative Services,
Department of Fish and Game, testified that the Crystal Lake
Hatchery component was transferred to the Sport fish BRU. He stated
that the $192,000 was "tied up in a contract with the Southern
Southeast Aquaculture Association" and is a "permanent part of the
budget".
Senator Taylor understood this to be the case.
SFC 03 # 46, Side B 09:49 AM
Senator Taylor asked if the Department intended to utilize salmon
enhancement funds for Hatchery operations, as has been done in the
past.
Mr. Brooks responded that fish and game funds would be used for the
Department's portion of the operational expenses. He noted these
funds are garnered from the sale of fishing and hunting licenses.
Senator Taylor asked if the appropriation for the Hatchery is
specifically revenue from the king salmon stamps purchased in
conjunction with fishing licenses.
Mr. Brooks replied that a combination of both licenses and stamp
sale revenues would be used.
Senator Taylor recalled negotiations at the time the Southern
Southeast Aquaculture Association assumed operation of the Hatchery
and other facilities regarding debt forgiveness, interest levels
and other issues to ensure adequate cash flow. He asked if a "final
solution" could be found for this "on-going difficulty".
Mr. Brooks responded that under the contractual agreement the
Association continues to operate the Hatchery. He stated he would
need to research the use of salmon enhancement funds.
Senator Taylor expressed this would provide a solution.
Senator Hoffman asked the implication of the transfer of $800,000
from the Division of Subsistence to the Division of Commercial
Fisheries.
Mr. Brooks replied the situation would be the same as encountered
the prior year, which "poses challenges". He qualified that the
Department has yet to determine a course of action. He noted the
House of Representatives approved funding for this.
Senator Hoffman asked how the $800,000 would have be spent if
appropriated.
Mr. Brooks answered that these funds were expended in prior years
for subsistence harvest assessments and to leverage federal funds
from the Office of Subsistence Management.
Department of Public Safety
Senator Ben Stevens, Chair
Senator Gene Therriault
Senator Ralph Seekins
Senator Gretchen Guess
Senate Finance Subcommittee
Department of Public Safety Budget
The Senate Public Safety Budget subcommittee is funding the
department's budget at the Governor's level with the following
recommendations:
· Transfer of $246,000 general funds, with the agencies
approval, for moving Victim's For Justice from the
Department of Public Safety to the Department of Law.
· Fund source change of $431,600 from general funds to
receipt supported services for a net zero.
· Increase inter-agency receipts of $280,000 for Fish and
Wildlife Protection appropriation, Marine Enforcement
component, to receive funds from the Department of Fish and
Game to support Western Alaska law enforcement by fully
funding the Woldstad and Stimson patrol vessels.
· Deny the department's request to move $431,600 general
funds out of AST [Alaska State Troopers] Detachment to
fifteen components agency-wide to fund the ACS
telecommunication and computer services billing contract.
The subcommittee recommends funding these components with
general fund increments that were made available through a
receipt supported services carry-forward in Fire Prevention
(increase of $231,600) and Alaska Criminal Records and ID
(increase of $200,000).
· Recommend a technical, line item transfer under the Alaska
Public Safety Information Network by moving $47,700 from
contractual services to miscellaneous line item to correct
the Governor's request.
Senator B. Stevens read the subcommittee report into the record. He
pointed out the subcommittee recommendation is $667,000 general
fund less than the amount requested by the Governor, although the
total budget would be a higher amount than that in the Governor's
proposal. He attributed this to fund source transfers.
Senator Hoffman requested an outline of how the Woldstad and
Stimson patrol vessels operations would be funded.
Senator B. Stevens replied that an increase of $280,000 interagency
receipts in accordance with an agreement between the Department of
Fish and Game and the Department of Public Safety to utilize the
patrol vessels for common missions.
Senator Hoffman clarified that funds would be appropriated for both
vessels rather than just the Stimson.
Senator B. Stevens affirmed and explained that the appropriation
would provide adequate funding to continue operations as done in FY
03.
Senator Hoffman understood additional capital project funds would
be required to operate the Woldstad.
Senator B. Stevens affirmed and commented that if funds become
available to refurbish the Woldstad, the appropriation in the
operating budget would be utilized to operate the completed vessel.
KAREN MORGAN, Director, Department of Administration, Department of
Public Safety, affirmed Senator Hoffman that additional capital
funding is required to return the Woldstad to service. She
indicated the Department and the budget subcommittee has been
addressing the matter.
Senator Taylor referenced the proposed $127,000 funding reduction
for aircraft and opined that the budgeting process is a "crude way
to approach what should be a policy decision made by the
Legislature" regarding whether search and rescue activities should
be undertaken by the Department or by the Civil Air Patrol and
volunteers, as done in the past. He relayed complaints that
volunteers are not dispatched and instead an Alaska State Trooper
is paid overtime wages to conduct a mission.
Senator Taylor expressed concern with the current policy that only
allows Troopers to fly Department-owned aircraft and only for
Division of Alaska State Troopers (AST) business. He complained
about the use of AST Complained about use of AST aircraft to
transport the Governor, and asserted that funds for these
activities should be paid from the Office of the Governor budget.
Senator Taylor next spoke to the "quality of pilots" and the
increased qualification requirements of private pilots contracting
with the Department of Fish and Game to perform stream surveys. He
remarked that the size of the Department of Public Safety aircraft
fleet has steadily increased along with the use of that fleet;
however the experience of the pilots is limited. He suggested
private sector pilots with more experience should be utilized
instead.
Senator Taylor relayed that the Commissioner intends the Department
to have the "finest fleet in the world." While he agreed the
Department should have the best possible equipment, he questioned
the need for 46 fixed wing aircraft and six helicopters. He
remarked that review of flight logs found that the majority of the
use of Department aircraft has been for training purposes.
Senator Olson understood the need for Troopers to access villages,
given the limited number of personnel in comparison to the
jurisdiction. However, he expressed concern with the general policy
regarding the significant expansion of the aircraft fleet and
specifically how it would be implemented. He recalled the previous
year's intent to replace some aircraft with newly acquired
secondhand aircraft, which did not occur. He cautioned against the
need to house and maintain a large aircraft in the future.
Senator Olson also disagreed with the changes to the search and
rescue procedures. While he understood the need for Troopers to be
involved in these activities, he surmised the AST should focus on
coordination efforts.
Department of Labor and Workforce Development
Senator Con Bunde, Chair
Senator Fred Dyson
Senator Ralph Seekins
Senator Bettye Davis
Senate Finance Subcommittee - Department of Law
4-9-03
The Senate Finance Subcommittee has adopted the following FY
04 budget for the Department of Labor and Workforce
Development. This budget contains $10,993,200 in general
funds, $97,029,100 in federal funds, and $45,517,600 in other
funds as proposed in the Governor's amended budget.
In this budget, there are changes to the Employment Security
appropriation, which is now divided into two appropriations.
The first appropriation, Compensation and Safety, contains
programs for Workers' Compensation and Labor Standards and
Safety. The second appropriation, Business Partnership,
contains all of the employment, training and unemployment
insurance programs. The restructuring of the Employment
Security appropriations reflects the funding specific to those
programs and will enable the Department to work toward
compliance with the Workforce Investment Act of 1998.
While there is a general fund reduction to Independent Living
Rehab, the Department has identified $300,000 in carry-forward
federal funds that can be used to help continue services.
The subcommittee concurs with the Administration's effort to
increase efficiency throughout State government and the
changes made through Administrative Order No. 205,
Establishing the Division of Business Partnerships in the
Department of Labor and Workforce Development, are reflected
in this budget.
The subcommittee adopted the following intent language.
Compensation and Safety Alaska Safety Advisory Council
The amount appropriated by this appropriation includes the
unexpended and unobligated balance on June 30, 2003, of the
Department of Labor and Workforce Development, Alaska Safety
Advisory Council receipts under AS 18.60.840.
Senator Bunde read the subcommittee report into the record.
Senator Bunde requested the Department provide clarification of the
funding reductions proposed for the Independent Living
Rehabilitation program. He understood that approximately $5 million
would be available to fund the program.
Senator Olson asked the impact on vocational training in rural
Alaska.
Senator Bunde predicted a positive impact, indicating that the
Commissioner is supportive of community college and other
vocational training.
ED FISHER, Deputy Commissioner, Department of Labor and Workforce
Development, testified that approximately $1.5 million would be
available for the Independent Living Rehabilitation program, under
the subcommittee's proposal. He informed that approximately $4.9
million in "independent funds flow around the Department" to the
independent living centers, which in some cases are "used for other
purposes".
Senator Olson restated his question about the overall effect on
vocational training for residents in Rural Alaska.
Mr. Fisher reminded that the functions were transferred from the
Department of Education and Early Development to the Department of
Labor and Workforce Development.
Senator Olson also was unsure of the funding sources.
Mr. Fisher understood that funding for these programs was reduced
before the transfer occurred, although he did not anticipate
further reductions.
Senator Olson asked the amount of the reductions.
Senator Bunde replied that the administration grant to the Kotzebue
Technical Center would be reduced from $1.1 million in FY 03 to
$809,000 in FY 04 under the subcommittee's proposal.
Senator Olson asked how same level of services would be continued.
Mr. Fisher was unsure, and suggested operations could be addressed
in a different manner.
Co-Chair Green directed the witness to provide further information.
Senator Hoffman asked for clarification of funding for the
Independent Living and Rehabilitation program, pointing out a 48
percent reduction of $763,900. He wanted to know the impact this
would have on the program.
Mr. Fisher indicated that $300,000 federal funds appropriated in FY
03 would be available for FY 04.
GREG O'CLARAY, Commissioner, Department of Labor and Workforce
Development, testified that the subcommittee proposes a $318,000
reduction to the program in FY 04. He stated his intent to reduce
general fund funding for the program by $618,000.
Senator Hoffman asked what services would no longer be provided
with the lesser funding.
Mr. O'Claray shared that he recently met with the Access Alaska
organization and requested this information. He predicted that
fewer participants would be served. He detailed two components of
the program, one of which prepares individuals to live
independently and return to work and the other, which provides 24-
hour assisted living care without a "work plan". He remarked that
the second function is not aligned with the Department of Labor and
Workforce Development's core service mission. He shared that he
directed Access Alaska to identify alternate funding for this
purpose, although the organization expects this to be difficult.
Co-Chair Green returned to the matter of funding for increased
employee health insurance costs. She informed that the $75 per
person insurance fee pertains to nonunion personnel and that the
full Committee would address funding for employees who are members
of a bargaining unit. She explained that negotiations with the
bargaining units were not completed by the subcommittees' deadline
to submit budget recommendations.
Department of Law
Senator Con Bunde, Chair
Senator Ralph Seekins
Senator Tom Wagoner
Senator Kim Elton
Senate Finance Subcommittee - Department of Law
4/11/03
The Senate Finance Subcommittee has adopted the following FY
04 budget for the Department of Law. The changes shown in this
subcommittee report reflect changes to the Governor's amended
budget. This budget contains $26,570,800 in general funds,
$495,500 in federal funds, and $18,556,400 in other funds.
The Victims for Justice function and associated funding was
transferred from the Department of Public Safety, Council on
Domestic Violence and Sexual Assault appropriation to the
Department of Law, Third Judicial District: Anchorage
component in the Criminal Division appropriation. This
transfer moves the function and $246,000 general funds to the
Department of Law.
This budget also reflects the Department's reorganization from
five BRUs to three (Criminal Division, Civil Division, and
Administration and Support).
The subcommittee concurs with the Administration's effort to
increase efficiency throughout State government.
The subcommittee adopted the following language for the Civil
Division - Fair Business Practices.
The amount appropriated by this appropriation includes the
unexpended and unobligated balance on June 30, 2003, of
designated program receipts and general fund program receipts
of the Department of Law, fair business practices section.
Senator Bunde read the subcommittee report into the record. He
noted the Governor has proposed a $700,000 unallocated reduction to
the Department. Senator Bunde informed that an audit was underway
to determine the best way to implement this reduction.
Senator Taylor asked for clarification of the transfer of funding
for the Council on Domestic Violence and Sexual Assault from
Department of Public Safety to the Department of Law.
Co-Chair Green explained the specific "pass through" funding is a
grant allocated to the Victims for Justice program and this
transfer is the request of the Victims for Justice administration.
She assured that the Council itself would not be transferred.
Senator Bunde affirmed the Council remains in Department of Public
Safety.
Senator Hoffman asked if the number of full time permanent
positions within the Department would change.
Senator Bunde responded that the number of permanent full time
positions would be the same as that approved by the House of
Representatives, which he listed as a decrease of .2 percent.
Senator Hoffman asked the number of positions.
Senator Bunde informed that the Attorney General has transferred
several positions within the Department and subsequently the number
of positions was unknown.
KATHERYN DAUGHEETTEE, Director, Division of Administrative
Services, Department of Law, testified that the subcommittee's
budget recommendation does not reflect any changes to the number of
positions contained in the Governor's proposed budget. She
reiterated that the Department is awaiting the results of a
performance review conducted by the Conference of Western Attorneys
General to assist in the implementation of the proposed $700,000
Department-wide budget reduction.
Department of Natural Resources
Senator Con Bunde, Chair
Senator Gary Stevens
Senator Tom Wagoner
Senator Lyman Hoffman
Senate Finance Subcommittee
Department of Natural Resources
4/9/03
The Senate Finance Subcommittee has adopted the following FY
04 budget for the Department of Natural Resources. This budget
contains $47,403,000 in general funds, $15,487,500 in federal
funds, and $33,100,600 in other funds. The difference from the
Governor's amended budget to the Subcommittee's recommendation
is an increase of $7,363,500 in general funds to be used for
Fire Suppression Activity.
In an effort to separate activity and funding between
fire preparedness and actual fire suppression activity,
the subcommittee's budget divides Fire Suppression into
two components - Fire Preparedness and Fire Suppression
Activity.
There is an increase of $7,363,500 general funds for Fire
Suppression Activity. This amount was calculated by using
a 10-year average of fire suppression costs.
To keep all of the Fire Suppression functions together,
the functions of the Fire Preparedness Function in the
Resource Development BRU of Forest Management and
Development has been transferred to the new Fire
Suppression Preparedness.
The Subcommittee concurs with the Administration's effort to
increase efficiency throughout State government and the
Executive Orders introduced by the Governor are reflected in
this budget.
The Subcommittee adopted the following intent language.
"The amount appropriated by this appropriation includes
the unexpended and unobligated balance on June 30, 2003,
of the timber receipts account (AS 38.05.100)."
Senator Bunde overviewed the subcommittee report, pointing out the
proposed changes to the fire suppression budget is an attempt to
align the initial appropriation with actual expenses.
Co-Chair Green approved of the proposed accounting of the fixed
costs associated with fire suppression in the fire preparedness
component, and actual fire suppression activities in the fire
suppression activity component.
Senator Taylor asked the amount of the unexpended and unobligated
balance of the timber sales receipts account and how those funds
would be appropriated.
NICO BUS, Administrative Services Manager and Acting Director,
Division of Support Services, Department of Natural Resources,
testified the amount is approximately $240,000 and that the timing
of the receipts from timber sales is not always known. He informed
that FY 03 has experienced an increase in the timber sales receipt
authorization, and noted that efforts are ongoing to carry forward
fewer funds from this account each year.
Senator Taylor asked how the funds were appropriated.
Mr. Bus responded that the receipts are utilized to prepare for
future timber sales.
Co-Chair Green recalled the Committee held this discussion earlier.
Senator Taylor agreed, remarking he wanted to ensure the funds were
appropriated for future sales as discussed.
Senator Olson asked about the contract for aircraft used for fire
suppression activities and whether the contract was for multiple
years.
Senator Bunde was not familiar with this matter.
Mr. Bus informed the terms of the contract are for ten years.
Senator Olson clarified the Department is bound by contract to
employ certain aircraft that is only utilized 500 hours annually.
He recalled earlier Committee discussion regarding the use of other
aircraft, in which the witness testified that aircraft was loaned
to the federal government for use in fire suppression activities
outside of Alaska. Senator Olson informed that he has since learned
that a number of aircraft were not utilized by federal agencies but
rather remained in the State. He was concerned about idle aircraft
at a time when attempts are underway to reduce spending.
Mr. Bus told of two types of aircraft in question, one of which is
loaned to the federal government at the conclusion of the Alaska
fire seasons. He noted that because the contract is a lease-
purchase agreement, equity is built each year in the aircraft and
that eventual ownership is beneficial to the State in the long
term.
Senator Olson questioned the benefit of owning these aircraft and
expressed concern with the accident history of the PC7. He asked if
the State would be burdened with unsafe aircraft once new
technology is available.
Senator Taylor asked the current funding appropriation for the land
sales program and the anticipated amount of land the Department
would sell.
Mr. Bus listed the total funding for land disposal would be
approximately $3 million under the subcommittee recommendation. He
noted that currently most of the available land could be purchased
"over the counter" and via the Internet. He stated that additional
land would be offered during the current and upcoming fiscal years
and that he would provide further details.
Senator Taylor asked the volume of land for sale as well as the
amount of land that has been sold.
Mr. Bus would provide the total number of acres.
Senator Taylor asked for a comparison with previous years.
Mr. Bus responded that each year the Department has been selling an
increased amount of land, pointing out that the program began two
years prior. He commented, "Our sales are ahead of our projections.
There is clearly interest… [and therefore] this budget includes a
$2.5 million transfer."
SFC 03 # 47, Side A 10:37 AM
Mr. Bus continued that the Department is optimist that the goals
for selling more land would be reached and subsequently more
revenue would be generated from these sales.
Senator Taylor asked if this is a "receipts program" and if either
twice the amount of land was sold or the land was sold at twice the
value than anticipated.
Mr. Bus affirmed and noted most of the revenue generated was a
result of purchasers refinancing their loans and therefore paying
off their debt to the State sooner.
Senator Taylor requested the amount of acres sold and the revenue
received from these sales. He relayed he has been told that the
value of the land is low and could not be sold; however, he stated
the land is valuable and that people are "anxious to buy it". He
compared the potential revenue generated by land sales to that
predicted to be collected from the sale of studded tires.
Department of Environmental Conservation
Senator Robin Taylor, Chair
Senator Scott Ogan
Senator Lyman Hoffman
FY 04 Department of Environmental Conservation
Operating Budget Closeout
April 10, 2003
Department of Environmental Conservation's FY 04 Operating
Budget was thoroughly reviewed. Each division's services were
reviewed for purposes of determining if they supported the
Department's legislated duties to establish and enforce
predictable and rational standards for the control of water,
land, subsurface land, and air pollutions, and the regulation
of sanitary practices in the interest of public health.
Alternative methods were considered for each of the
Department's programs. It was determined that none of the
alternatives offered more effective or efficient delivery of
the programs.
The Department's FY 04 total operating budget is $52,249,100,
which is $153,000 less than the Department's FY 03 authorized
operating budget and includes a net reduction of 13 full time
positions. The total reduction in State general fund sources
is $733,000 or 6.4 %.
Senator Taylor read the subcommittee report into record.
Senator Taylor qualified that at the time this report was prepared,
the status of other legislation relating to the transfer of food
safety inspections from the State to municipalities was uncertain.
He understood the affected municipalities were not supportive of
the proposed transfer. He cautioned that if the legislation does
not pass, funds for these activities would be required.
Co-Chair Green relayed that due to concerns about the proposal to
transfer the food safety activities, the enabling legislation was
awaiting resolution of the issues. Therefore, she recommended the
budget should not be dependent upon such transfer.
Senator Taylor agreed, but pointed out that the general funds
required for the Department would not change, as the program is
funded through fees collected.
Co-Chair Wilken referenced the subcommittee's recommended general
fund reduction of $300,000 for laboratory services and asked if the
services would be reduced or whether private laboratories would be
contracted to conduct the activities.
Senator Taylor assured the workload would not be reduced.
MIKE MAHER, Director, Division of Administrative Services,
Department of Environmental Conservation,
BARBARA TOWN, Budget Services, Division of Administrative Services,
Department of Environmental Conservation, introduced herself at
Senator Taylor's request.
Mr. Maher anticipated that a combination of reduced services and
contracting with private laboratories would occur.
Senator Taylor indicated that the laboratory located in Juneau
would no longer be staffed. He commented that much of the
activities conducted at this facility are "literally not core
function for this Department" but rather assisting high schools and
conduction water studies. He stated that other functions would be
transferred to private facilities.
Co-Chair Wilken next noted the proposed 13 percent funding
reduction of $181,000 to the air quality component and asked
whether this would result in less testing.
Mr. Maher answered this reduction represents a "reprioritization"
within the Department. He read a statement into the record as
follows.
While more study may be needed to know if air toxins are a
problem in Alaska, existing known air quality problems are in
need of additional resources. The Department's [FY] 04 budget
proposes using savings shown by postponing a more rigorous air
toxic initiative to strengthen the Department's ability to
respond to more pressing air quality issues, like the health
risks from diesel fuel in rural communities.
Senator Taylor recalled questions arose asking why the diesel
studies were conducted.
Mr. Maher informed that the Department sent a memorandum to the
subcommittee responding to those questions [copy not provided]. He
noted that the questions related to federal funds requested in the
FY 04 capital budget relating to a study of the impacts of diesel
from highway traffic. By contrast, he explained, this matter
relates to the use of diesel generation activities in close
proximity to homes and schools in rural Alaska.
Senator Taylor expounded on the proposed studies to measure the
impacts of utilizing a cleaner diesel fuel, which would be required
for vehicular use by the federal government in the next several
years. He disagreed that funds should be expended in this manner
given that the new fuel would be utilized for all purposes in rural
communities regardless of whether it was designated for vehicles or
for generators. He predicted the air quality would improve.
Mr. Maher stated he would provide an additional copy of the
memorandum to the subcommittee chair.
ADJOURNMENT
Co-Chair Lyda Green adjourned the meeting at 10:52 AM
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