Legislature(2007 - 2008)SENATE FINANCE 532
04/12/2007 05:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB61 | |
| HB95 || HB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 95 | TELECONFERENCED | |
| += | HB 96 | TELECONFERENCED | |
| = | SB 61 | ||
MINUTES
SENATE FINANCE COMMITTEE
April 12, 2007
5:12 p.m.
CALL TO ORDER
Co-Chair Lyman Hoffman convened the meeting at approximately
5:12:18 PM.
PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
Also Attending: KAREN REHFELD, Director, Office of Management &
Budget, Office of the Governor
Attending via Teleconference: There were no teleconference
participants
SUMMARY INFORMATION
SB 61-SUPPLEMENTAL APPROPRIATIONS
The Committee adopted a committee substitute and three
amendments. The bill reported from Committee.
HB 95-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 96-APPROP: MENTAL HEALTH BUDGET
The committee heard from the Office of Management and Budget.
Committee substitutes for each bill were adopted, and 17
amendments were considered with 14 adopted. The bills reported
from Committee.
5:13:16 PM
SENATE BILL NO. 61
"An Act making appropriations for qualified regional
seafood development associations, for investigation and
litigation relating to the public employees' retirement
system and the teachers' retirement system, and for a
special advisory election; and providing for an effective
date."
This was the third hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman moved to adopt Senate Finance committee
substitute, Version 25-GS1063\M, Kane, dated April 10, 2007, as
the working document.
There being no objection, the Version "M" committee substitute
was ADOPTED as the working document.
5:13:43 PM
Amendment #1: This amendment deletes the language of
subparagraph (g) of Section 1, Chapter 3, FSSLA 2005, page 67,
lines 17 through 19 amended by Section 6 on page 4, lines 22
through 27 of the bill and inserts new language to read as
follows.
(g) The unexpended and unobligated balance of the
appropriation made by sec. 1, ch. 3, FSSLA 2005, page 67,
lines 17 - 19 (Chitina, personal use dip net fishery access
area - $700,000) is reappropriated to the Department of
Transportation and Public Facilities for Chitina fishery
access and facility improvements.
Co-Chair Hoffman moved for adoption and objected for purposes of
explanation.
Co-Chair Hoffman stated that this amendment was offered at
request of the Governor Sarah Palin Administration. The
amendment would "remove the conditional language that is
attached to the original appropriation". He explained that "A
name change, as proposed in SB 61 will not remove the language
and will prevent the department from being able to complete the
replacement of the O'Brien Creek Bridge and add a boat ramp this
year."
5:15:12 PM
Co-Chair Hoffman removed his objection.
Senator Olson asked whether the action proposed by this
amendment was considered significant.
Co-Chair Hoffman reminded the Committee that this issue had been
discussed during the previous hearing on this bill. The
amendment would simply "clarify the language."
There being no further objection, Amendment #1 was ADOPTED.
5:16:16 PM
Amendment #2: This amendment inserts a new section into the bill
as follows.
Department of Education and Early Development. The sum of
$740,271 is appropriated from the general fund to the
school construction grant fund (AS 14.11.005) for payment
by the Department of Education and Early Development as a
grant under AS 14.11.015 to the Chugach School District for
Chenega Bay School roof replacement.
Co-Chair Hoffman moved for adoption and objected to explain that
this amendment would provide State general funds for the Chenega
Bay School roof replacement.
Co-Chair Hoffman removed his objection.
There being no further objection, Amendment #2 was ADOPTED.
5:16:54 PM
Amendment #3: This amendment inserts a new subsection into
Section 5 as follows.
(c) The sum of $6,500,000 is appropriated from the
general fund to the Department of Health and Social
Services for the Fairbanks virology laboratory completion
from the following amounts:
General fund $3,500,000
Interest earnings on
certificates of participation $3,000,000
Co-Chair Hoffman offered a motion for adoption and objected to
provide an explanation. This amendment would provide significant
cost savings to the State by allowing the project to proceed on
schedule.
Co-Chair Hoffman removed his objection.
There being no further objection, Amendment #3 was ADOPTED.
AT EASE 5:18:20 PM / 5:18:35 PM
Co-Chair Stedman offered a motion to authorize the Division of
Legal and Research Services to review the amendments and make
conforming and technical changes as necessary.
There being no objection, the motion PASSED.
5:19:11 PM
Co-Chair Stedman offered a motion to report CS SB 61, Version
25-GS1063\M, as amended, from Committee with individual
recommendations.
There being no objection, CS SB 61(FIN) was REPORTED from
Committee.
AT EASE 5:19:51 PM / 6:03:49 PM
CS FOR HOUSE BILL NO. 95(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; and
providing for an effective date."
CS FOR HOUSE BILL NO. 96(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."
This was the fourth hearing for these bills in the Senate
Finance Committee.
Co-Chair Stedman offered a motion to adopt SCS CSHB 95, Version
25-GH1013\W, Bailey, dated April 12, 2007, as the working
document.
Co-Chair Hoffman stated that this committee substitute contained
only one change to Version "T", adopted as a working document in
a previous hearing. The following conditional language
pertaining to appropriations made to the Department of Health
and Social Services was deleted from page 17, lines 6 through 11
of Version "T".
No money appropriated to the Department of Health and
Social Services may be expended for an abortion that is not
a mandatory service required under AS 47.07.030(a). The
money appropriated for Health and Social Services may be
expended only for mandatory services required under Title
XIX of the Social Security Act and for optional services
offered by the state under the state plan for medical
assistance that has been approved by the United States
Department of Health and Human Services.
Senator Dyson understood that this language had been added
during deliberations by the House of Representatives and that
they continued to retain the language in their version of the
bill. Therefore he was curious to the reason the Senate has
suggested removing the language.
Co-Chair Hoffman understood that the language had been deleted
by the House of Representatives.
6:06:17 PM
Co-Chair Hoffman corrected his remarks by stating that the House
bill contained similar language to that deleted from Version
"W".
KAREN REHFELD, Director, Office of Management and Budget, Office
of the Governor, affirmed.
Senator Dyson asked for further clarification.
Co-Chair Hoffman responded that the House version of the bill
contains similar language to that deleted from Version "W".
Senator Dyson objected to the adoption of the Version "W"
committee substitute.
A roll call was taken on the motion.
IN FAVOR: Senator Elton, Senator Huggins, Senator Olson, Senator
Thomas, Co-Chair Stedman and Co-Chair Hoffman
OPPOSED: Senator Dyson
The motion PASSED (6-1)
Committee substitute Version "W" was ADOPTED as the working
document.
[Note: The amendments are titled according to their sponsor and
are offered to the most recently adopted committee substitutes
unless otherwise noted.]
HOFFMAN #1: This amendment deletes $48.1 million general funds
from the Department of Commerce, Community and Economic
Development, Revenue Sharing Results Delivery Unit (RDU), Local
Government Support component on page 5, line 32. Accompanying
explanatory language reads as follows.
If $48.1 million for revenue sharing is in the operating
budget, DCCED can distribute the funds as it wishes. The
Senate is working on a revenue sharing plan with a
distribution method that accounts for some retirement
issues. To ensure that the legislature has a voice in the
allocation of the money, revenue sharing is expected to
appear in a later appropriations bill.
Co-Chair Hoffman moved for adoption and objected to explain that
this amendment would delete funding for the municipal revenue
sharing program. The House has taken similar action. He read the
explanatory statement into the record.
Co-Chair Hoffman removed his objection.
There was no further objection and the amendment was ADOPTED.
6:08:46 PM
HOFFMAN #2: This amendment deletes subsection (b) from Section
13 DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, on page 57,
line 31 through page 58, line 3 of the committee substitute
Version "T". [Note: This language was not included in committee
substitute, Version "W".] The deleted language reads as follows.
(b) The sum of $10,543,219 is appropriated from the
general fund to the Department of Education and Early
Development for distribution to each school district as a
grant in the same amount as was received by that school
district during fiscal year 2007 for a school improvement
grant.
Accompanying explanatory language reads as follows.
Because funding for school improvement grants will be
addressed in education legislation later this session, this
funding is being removed from the operating budget.
Co-Chair Hoffman moved for adoption of the amendment and
objected to overview the deleted language and the explanatory
statement.
Co-Chair Hoffman removed his objection.
The amendment was ADOPTED without further objection.
AT EASE 6:10:23 PM / 6:11:06 PM
Co-Chair Hoffman announced the need to adopt a proposed
committee substitute to HB 96, as the amendments under
consideration pertained to both appropriation bills.
Co-Chair Stedman offered a motion to adopt SCS CSHB 96, Version
25-GH1015\L, Bailey, dated April 12, 2007, as the working
document.
Co-Chair Hoffman explained that the changes to this bill
mirrored those in the committee substitute for HB 95.
Senator Dyson understood therefore that the language deleted
from HB 95 by Version "W" was also deleted from this bill.
Co-Chair Hoffman affirmed.
Senator Dyson objected. The language was included in the bills
by the House of Representatives to prevent public funds from
being used to support abortions not medically necessary.
A roll call was taken on the motion.
IN FAVOR: Senator Huggins, Senator Olson, Senator Thomas,
Senator Elton, Co-Chair Stedman and Co-Chair Hoffman
OPPOSED: Senator Dyson
The motion PASSED (6-1)
The committee substitute, Version "L", was ADOPTED.
6:13:18 PM
HOFFMAN #3: This amendment adds $150,000 general funds to the
Department of Labor and Workforce Development, Vocational
Rehabilitation RDU, Independent Living Rehabilitation component
on page 24, lines 26 and 27. Accompanying explanatory language
reads as follows.
A one-time funding increment of $100,000 was granted in FY
07 for Independent Living Rehabilitation. This amendment
would continue the FY 07 level of funding and establish the
increment as part of the base budget in FY 09. These funds
would be used to operate Alaska's Centers for Independent
Living. Centers for Independent Living (CILs) have
increased the number of disabled and senior Alaskans served
by 112% (to 3200 clients) in the past three years, while
receiving relatively flat State funding. Costs to provide
these preventative services that keep people out of
expensive institutions are rising, stretching Alaska's CILs
to the limit of effectiveness. In FY 05, State funding
comprised only 9% of the total funding used to operate
Alaska's successful Independent Living program. CILs
leverage State general fund dollars, and are extremely
resourceful, cost-effective agencies providing necessary
services on behalf of the State of Alaska.
$50,000 if this increment will support interpreter referral
services for Alaskans who are deaf or hard-of-hearing. This
program allows deaf and hard of hearing Alaskans, whose
primary language is American Sign Language, to secure and
maintain employment and receive other necessary medical and
legal services. The program has been flat-funded for over
17 years, while the deaf population is burgeoning in areas
like the Kenai Peninsula, where no interpreter program
currently exists. In areas where services currently exist,
the demand has skyrocketed. For example, in Southeast
Alaska the number of sign language interpreter requests
filled grew from 182 in FY 04 to 464 in FY 06, an increase
of 155%. This increment would allow more Alaskans to access
this service by increasing funding to current grantees and
providing for a new program in Homer.
Co-Chair Hoffman moved for adoption and objected to explain the
amendment.
Co-Chair Hoffman removed his objection.
Without further objection, the amendment was ADOPTED.
6:15:02 PM
STEDMAN #1: This amendment adds $3 million general funds to the
Department of Commerce, Community and Economic Development,
Qualified Trade Association (QTA) Contract RDU and component on
page 5, line 31 through page 6, line 5. Accompanying explanatory
language reads as follows.
One time only increment. Visitors to Alaska sustain many
small businesses which provide jobs in our communities.
Unfortunately, the number of independent travelers is in
decline and effective marketing is necessary to bring new
private dollars into the economy, grow local community
revenues from tourism taxes, and increase state revenue
from tourism-related taxes.
Co-Chair Stedman moved for adoption.
Co-Chair Hoffman objected for an explanation.
Co-Chair Stedman explained that this amendment would add one
time only general fund funding of $3,000,000 for increased
marketing efforts for the State. Summertime tourism impacts all
areas of the State.
Co-Chair Hoffman removed his objection. Despite being less than
the amount requested by Alaskans involved in the tourism
industry, this appropriation demonstrates the State's effort to
address the need for increased marketing to independent
travelers.
There was no further objection and STEDMAN #1 was ADOPTED.
6:17:10 PM
STEDMAN #2: This amendment adds $500,000 general funds to the
Department of Commerce, Community and Economic Development, QTA
Independent Traveler Grants RDU and component on page 6, lines 6
through 9. Accompanying explanatory language reads as follows.
This one time increment would increase tourism marketing
directed at independent travelers (non-cruise ship
visitors.) Independent travelers sustain many Alaska small
businesses which provide jobs in our communities.
Unfortunately, the number of independent travelers is in
decline and effective marketing is necessary to bring new
private dollars into the economy, grow local community
revenues from tourism taxes, and increase state revenue
from tourism-related taxes.
Co-Chair Stedman moved for adoption.
Co-Chair Hoffman objected for the purposes of explanation.
Co-Chair Stedman explained that the amendment would appropriate
$500,000 for marketing efforts directed toward independent
travelers.
Co-Chair Hoffman acknowledged the substantial public testimony
in support of this effort.
Without further objection, STEDMAN #2 was ADOPTED.
6:18:32 PM
STEDMAN #3: This amendment adds $250,000 federal receipts to the
Department of Commerce, Community and Economic Development,
Banking and Securities RDU and component on page 7, lines 21 and
22. Accompanying explanatory language reads as follows.
Based on a contract with the US Treasury Department, DCCED
will provide financial education through its staff or
partners. Education will be provided face-to-face in local
communities, in a regional hub community, through distance
learning channels, printed materials, and broadcast media
to individuals, community leaders and educators.
The DCCED will be responsible for coordinating the
provision of financial education with the financial service
provider and with other state entities in order to leverage
financial and in-kind resources. Topics will include the
basic elements of financial literacy, bank accounts,
electronic banking, identification theft, etc. Funds may
also provide travel for community leaders to attend the
Native Financial Skills Initiative to be held in Anchorage.
In order to best serve communities with the least access to
financial services, this program will focus on providing
services to Alaska communities with populations under 5,000
that lack access to major roadways and do not have a branch
of a bank or credit union. Resources will be focused on
between two and four communities.
Co-Chair Stedman moved for adoption.
Co-Chair Hoffman objected to receive an explanation.
Co-Chair Stedman explained that this federal receipt authority
would address the impact of bank consolidations both in the
country and in the State. For example, some sparely populated
regions of the State are losing their community's deposit
institution. This funding would assist in educating citizens
about banking and financial services.
Co-Chair Hoffman removed his objection.
There being no further objection, STEDMAN #3 was ADOPTED.
6:19:56 PM
OLSON #1: This amendment would transfer the Women, Infants and
Children component and $26,445,700 allocation to that component
from the Children's Services Budget Review Unit (BRU) on page
18, line 13, to the Public Assistance BRU on page 19, line 11.
Accompanying explanatory language reads as follows.
Structure change to move the above component/allocation
from the Children's Services appropriation to the Public
Assistance appropriation. This is an important budget
structure change to reflect the organizational change that
was recommended by both divisions and approved by
Commissioner Jackson and OMB with an effective date of July
1, 2007.
This budget structure change was accidentally not picked up
in the Governor's Amended budget request; and was also
missed when both the House and Senate sub-committees closed
this budget.
The correct placement is as the last allocation of the
Public Assistance appropriation, following Work Services.
Senator Olson moved for adoption.
Co-Chair Hoffman objected for an explanation.
Senator Olson read the explanatory statement into the record.
Co-Chair Hoffman removed his objection.
Senator Dyson asked whether the Administration supported the
amendment.
6:21:54 PM
Ms. Rehfeld assured that the Administration did not object to
the change.
There being no objection, OLSON #1 was ADOPTED.
6:22:17 PM
OLSON #2: This amendment adds $750,000 general funds to the
Department of Public Safety, Village Public Safety Officer
(VPSO) Program BRU, VPSO Contracts component on page 30, line
28. This amendment also inserts the following conditional
language to the component.
The amount appropriated by this appropriation includes the
unexpended and unobligated balance on June 30, 2007, of the
Department of Public Safety, Village Public Safety Officer
Contracts.
Accompanying explanatory language reads as follows.
The subcommittee reduced $750,000 of general funds from
this allocation with a request to carryforward the FY 07
general fund lapsing balance into FY 08. The carryforward
language was not included in the language section of the
bill, resulting in an unintended cut to this allocation.
This amendment restores the unintended cut and includes
conditional language that enables the division to carry
forward the FY 07 general fund balance that would have
lapsed.
Senator Olson moved for adoption.
Co-Chair Hoffman objected.
Senator Olson read the explanatory statement into the record.
Senator Olson understood that the Department of Public Safety
supported the amendment.
Co-Chair Hoffman removed his objection.
Without further objection, OLSON #2 was ADOPTED.
6:23:34 PM
OLSON #3: This amendment adds $150,000 Highway Working Capital
Fund to the Department of Transportation and Public Facilities
(DOT), State Equipment Fleet BRU and component on page 35, line
9. Accompanying explanatory language reads as follows.
Add $150,000 Highway Working Capital Fund (HWCF) to State
Equipment Fleet (SEF) for mechanics' time spent working on
capital project related work. Normally the mechanics' time
is charged through the Equipment Management System but DOT
has had to establish unbudgeted RSAs as the SEF does not
have the budget authority for the increased personal
services expenditures. This amendment would add sufficient
personal services budget authority to the SEF, thus
eliminating the administrative burden of generating many
small dollar RSAs.
Senator Olson moved for adoption.
Co-Chair Hoffman objected.
Senator Olson read the explanatory statement into the record.
The Department is in support of the amendment.
Co-Chair Hoffman removed his objection.
Without further objection, OLSON #3 was ADOPTED.
6:24:45 PM
HUGGINS #1: This amendment adds $225,000 general funds and
$5,300 Capital Improvement Project (CIP) receipts to the
Department of Natural Resources, Fire Suppression BRU, Fire
Suppression Preparedness component on page 29, lines 8 and 9.
Accompanying explanatory language reads as follows.
The Department of Natural Resources requests an FY 08
operating budget amendment as a result of a Department of
Administration (DOA), Division of Personnel classification
study for the Forester and Forest Technician job classes.
DOA implemented the Forest Technician portion of the study
on February 16, 2007, and the Forest portion of the study
is effective April 16, 2007. This action affects two budget
components: Forest Management and Development, and Fire
Suppression Preparedness.
The Fire Suppression Preparedness component requests an FY
08 amendment of $230,300. This increased cost was
calculated using an estimated FY 08 PERS rate of 22%,
anticipating changes to the Public Employee Retirement
System (PERS) by the legislature which would change the
Governor's original proposed rate of 43.83%. If the rate is
set significantly higher, the department will re-evaluate
the costs next year and pursue a supplemental request if
necessary.
More than 180 Position Contract Numbers (PCNs) from the two
components have been subject to the classification study.
DOA implemented the Technician series portion of the study
on February 16, 2007, increasing salaries by at least one
range for each of the division's 118 Forest Technician
positions. The Forester series portion of the class study
is effective April 16, 2007 and established a promotional
ladder within the series by establishing a Forester IV
level (set at a range 20). Eight Forester III positions
were moved into the IV level. Other study actions included
establishing a dispatch series, with internal pay alignment
resulting in a two range increase form the previous rate
which was last reviewed in 1991. This amendment request
covers the increased costs to maintain the current service
level.
Forestry's last classification study was performed more
than 15 years ago. These two major job classes comprise
two-thirds of the division's workforce and are the Division
of Forestry's field personnel employed to suppress wildland
fires. The class study and funding of the Division of
Personnel's implementation of the findings contributes to
recruitment and retention of qualified staff, and improves
the state's ability to manage the wildland fire and forest
management programs.
Senator Huggins moved for adoption.
Co-Chair Hoffman objected.
Senator Huggins reviewed the amendment and stressed that this
funding would allow for the Divisions first job classification
study in 15 years. The Department of Natural Resources supported
the amendment.
Co-Chair Hoffman removed his objection.
Without further objection, HUGGINS #1 was ADOPTED.
6:25:44 PM
HUGGINS #2: This amendment would add $31,700 general funds and
$2,500 CIP receipts to the Department of Natural Resources,
Resource Development BRU, Forest Management & Development
component on page 28, lines 10 and 11. Accompanying explanatory
language reads as follows.
The Department of Natural Resources requests an FY 08
operating budget amendment as a result of a Department of
Administration (DOA), Division of Personnel classification
study for the Forester and Forest Technician job classes.
DOA implemented the Forest Technician portion of the study
on February 16, 2007, and the Forest portion of the study
is effective April 16, 2007. This action affects two budget
components: Forest Management and Development, and Fire
Suppression Preparedness.
The Fire Suppression Preparedness component requests an FY
08 amendment of $230,300. This increased cost was
calculated using an estimated FY 08 PERS rate of 22%,
anticipating changes to PERS by the legislature which would
change the Governor's original proposed rate of 43.83%. If
the rate is set significantly higher, the department will
re-evaluate the costs next year and pursue a supplemental
request if necessary.
More than 180 PCNs from the two components have been
subject to the classification study. DOA implemented the
Technician series portion of the study on February 16,
2007, increasing salaries by at least one range for each of
the division's 118 Forest Technician positions. The
Forester series portion of the class study is effective
April 16, 2007 and established a promotional ladder within
the series by establishing a Forester IV level (set at a
range 20). Eight Forester III positions were moved into the
IV level. Other study actions included establishing a
dispatch series, with internal pay alignment resulting in a
two range increase form the previous rate which was last
reviewed in 1991. This amendment request covers the
increased costs to maintain the current service level.
Forestry's last classification study was performed more
than 15 years ago. These two major job classes comprise
two-thirds of the division's workforce and are the Division
of Forestry's field personnel employed to suppress wildland
fires. The class study and funding of the Division of
Personnel's implementation of the findings contributes to
recruitment and retention of qualified staff, and improves
the state's ability to manage the wildland fire and forest
management programs.
Senator Huggins moved for adoption.
Co-Chair Hoffman objected for an explanation.
Senator Huggins overviewed the amendment and noted that this
would be the first reclassification study of these positions in
ten years.
Co-Chair Hoffman removed his objection.
Without further objection, HUGGINS #2 was ADOPTED.
6:26:47 PM
ELTON #1: This amendment adds $773,900 general funds and
$774,000 Receipt Supported Services funds to the Department of
Environmental Conservation, Water BRU, Water Quality component
on page 14, line 11.
Senator Elton moved for adoption.
Co-Chair Hoffman objected for an explanation.
Senator Elton explained that this amendment pertained to the
State's decision "to adopt "primacy" in regards to the National
Pollutant Discharge Elimination System (NPDES) authority. Five
procedural options were available to the State: it could revert
to the system in effect before the State adopted a position of
primacy in which the federal government conducted and paid for
the program; the State could conduct the program and the federal
government could pay expenses; the State could conduct and pay
for the program; the State could conduct the program and
applicants would pay program costs; or the State could conduct
the program and both the State and applicants would contribute
toward program expenses.
Senator Elton informed the Committee that the House supported
having the State conduct and pay for the program. The Senate
Finance Committee Department of Environmental Conservation
budget subcommittee preferred to allow the Federal government to
both conduct and pay for the program. As a matter of compromise,
this amendment would authorize the State to conduct the program
and have program expenses covered by both the State and program
applicants.
Co-Chair Hoffman removed his objection.
Senator Dyson commended Senator Elton for his efforts on the
matter. The State's decision to assume primacy on this
permitting process could be the most significant action taken by
the legislature this session.
There being no further objection, ELTON #1 was ADOPTED.
6:28:48 PM
THOMAS #1: This amendment adds $500,000 general funds to the
Department of Health and Social Services, Behavioral Health BRU,
Behavioral Health Grants component on page 17, line 17.
Accompanying explanatory language reads as follows.
$350,000 will allow continued operation of the Interior's
existing detox facility, the Ralph Purdue Center, operated
by the Fairbanks Native Association. In past years, the
Center received federal SAMHSA funds that will not be
available in FY 08. Fairbanks is one of only three
communities in Alaska with capacity to provide medically
supervised detoxification services for persons withdrawing
from alcohol or other drugs. As a regional center,
Fairbanks provides detoxification care for persons from
throughout the Interior and Northern regions of the state;
one in every three to four people admitted to the Ralph
Purdue Center in FY 06 came from communities outside
Fairbanks.
$150,000 will be used to prepare for the opening of the
Fairbanks Enhanced Detox Facility, which is planned to
replace the Ralph Purdue Center in September, 2008. With
only a ten-bed capacity for detoxification care at the
Ralph Purdue Center, service is unavailable to large
numbers of persons in need. Inadequate detox capacity in
Fairbanks results in more than 1000 incapacitated persons
being held temporarily in the Fairbanks Correctional
Facility annually; most needing screening in the hospital
emergency department first. The jail and the hospital end
up being an expensive revolving door.
The Golden Heart Coalition has secured the capital funds
necessary for construction of a new detox facility from a
variety of partners: the Denali Commission, the Trust, the
Rasmuson Foundations, Greater Fairbanks Community Hospital
Foundation and the State Legislature. However, additional
funding is required to cover the costs associated with
additional capacity and enhanced essential services.
The Denali Commission and Rasmuson Foundation may withdraw
their funding for construction of the new detox facility if
the legislature does not fund medical detox in FY 08. They
will be reluctant to pay for construction of a facility
that does not have a source of funds to operate.
Senator Thomas moved for adoption.
Co-Chair Hoffman objected to receive an explanation.
Senator Thomas read the explanatory statement into the record.
Senator Olson, chair of the Committee's Department of Health and
Social Services budget subcommittee, spoke in support of the
amendment.
Co-Chair Hoffman removed his objection.
Without further objection, THOMAS #1 was ADOPTED.
6:31:24 PM
THOMAS #2: This amendment adds $211,800 general funds to the
Department of Labor and Workforce Development, Workforce
Development BRU, Employment and Training Services component on
page 23, lines 27 and 28. Accompanying explanatory language
reads as follows.
This increment would maintain the Job Centers in Glennallen
and Tok. The department proposed closing these offices in
response to continuing reductions in federal funds.
However, these centers provide valuable assistance to
Alaskans in search of jobs throughout that Interior area,
and is one of the only contacts that people have with the
State of Alaska in any practical purpose.
Senator Thomas moved for adoption and read the explanatory
statement into the record.
Without objection, THOMAS #2 was ADOPTED.
6:32:15 PM
THOMAS #3: This amendment adds $250,000 General Fund/Mental
Health funds and $250,000 Mental Health Trust Authority
Authorized Receipts to the Department of Health and Social
Services, Public Health BRU, Women, Children and Family Health
component on page 19 lines 30 and 31. Accompanying explanatory
language reads as follows.
The increment would allow comprehensive, timely assessments
and diagnosis of Autism Spectrum Disorders (ASD). Current
studies show ASD affecting 1 in every 150 children
nationwide. Early diagnosis is made through a
comprehensive, multidisciplinary team evaluation. The
capacity to diagnose and reevaluate Alaskan children is
currently severely limited due to limited staff and
resources. Research shows that 90% of children who do not
receive early intervention will require custodial or
special care throughout their lives.
Funding will allow for training and travel for a pediatric
nurse practitioner to travel throughout Alaska providing
comprehensive evaluations. Currently, a parent and child
would have to travel to Anchorage to receive these
services.
A $500,000 increment would mean that:
· The Department of Health and Social Services could
leverage over $220,000 in non-state funds to support
the program.
· Between 400 and 500 children per year would receive a
comprehensive evaluation for autism -- more than
doubling the current capacity.
· Nurse practitioners would be trained and added to the
multidisciplinary team, offering a cost effective
approach for children with less complicated medical
and developmental histories.
· Children over the age of eight would be seen. Due to
capacity limitations, this age group is not currently
served.
· Children would be re-evaluated over time as their
needs change.
· Psychological evaluations would be available. Most
psychologists with expertise in autism assessment are
not able to bill Medicaid.
· Screening clinics would be held in various locations
around the state. This is an intermediate step, prior
to a comprehensive exam, to ensure only those children
who need an extensive work-up are referred for a full
evaluation.
Senator Thomas moved for adoption and read the explanatory
statement into the record.
Co-Chair Hoffman objected.
Co-Chair Hoffman, noting that Senator Olson was the chair of the
Department of Health and Social Services budget subcommittee,
asked his position on the amendment.
Senator Olson objected to the amendment. The State Medical Board
did not support spending State funds for this purpose. In
addition, the need to travel to Anchorage for a complete
diagnostic evaluation has been established because the sole
pediatric neuron-developmental specialist in the State dealing
with autism is located there. Thus, having a diagnosis made by
"a mid-level person" who travels throughout the State would be
called into question."
Senator Olson acknowledged there being statewide concern about
autism; however, suggested that further review of the issue be
conducted before action is taken.
Senator Elton asked whether the Alaska Mental Health Trust
Authority increment required a general fund dollar match.
Senator Thomas understood a general fund match was required to
provide the appropriate level of funding. To that point, he
cited being surprised at the seemingly low level of funding that
was requested to support the project.
Senator Thomas appreciated Senator Olson's position and the
prospect of advancing autism treatment in the future.
Nonetheless, he pointed out that not addressing the needs of
autistic children early would serve to increase expenses.
Senator Olson agreed that citizens are concerned about autism;
however, more information and planning is required.
A roll call was taken on the motion.
IN FAVOR: Senator Thomas
OPPOSED: Senator Dyson, Senator Elton, Senator Huggins, Senator
Olson, Co-Chair Stedman and Co-Chair Hoffman
The motion FAILED (1-6)
The amendment FAILED to be adopted.
6:37:40 PM
THOMAS #4: This amendment adds a new SW Budget Reductions and
Additions component to the University of Alaska (UA), University
of Alaska BRU, and appropriates $4,900,200 general funds and
$470,000 UA Receipts to the component. Accompanying explanatory
language reads as follows.
Fixed cost deficit GF: $3,629,400
Critical Engineering and Healthcare Education Programs
GF: $200,000, UA Rcpts: $50,000
Engineering and Construction Management
· Engineering Enrollment Growth at Anchorage Campus
(GF: $200,000, UA Rcpts: $50,000)
· Construction Management at Anchorage Campus
(GF: $115,000, UA Rcpts: $30,000)
· UAA/UAS 1+3 Program in Engineering at Juneau Campus
(GF: $100,000, UA Rcpts: $20,000)
Health
· WWAMI program expansion at Anchorage Campus
(GF: $180,000, UA Rcpts: $150,000)
· Nursing Core Expansion at Anchorage Campus
(GF: $299,300, UA Rcpts: $150,000)
· Community Health Aide Program at College of Rural
Alaska
(GF: $143,400, UA Rcpts: $20,000)
· Dental Program at Tanana Valley Campus
(GF: $233,100, UA Rcpts: $50,000)
This amendment uses saving from the university budget to
cover the unavoidable costs increases for goods and
services, and seven of the highest demand new degree
programs being requested by the Construction and Healthcare
industry.
Senator Thomas moved for adoption.
Co-Chair Hoffman objected
Senator Thomas reviewed the amendment.
Co-Chair Hoffman asked Co-Chair Stedman, chair of the
Committee's University of Alaska budget subcommittee, his
position on the amendment.
Co-Chair Stedman advised against the amendment. The approach to
the University's funding differs from other budgetary procedures
because the Legislature appropriates a single line item to the
University. The University's Board of Regents is free to
allocate the funds as they see fit amongst the various
University campuses and programs.
Co-Chair Stedman that the fixed costs of the University are
covered in the FY 2008 Legislative appropriation. He reviewed
the budgetary growth the University has experienced in recent
years, and noted that, unlike other State departments, the
University feels that any savings experienced by the University,
such as the $4.9 million resulting from savings in the
University's "ORPS budget", should be committed back to them
rather than to the State.
6:42:42 PM
Co-Chair Hoffman maintained his objection.
Senator Thomas stressed that Alaska has tremendous educational
demands. Programs in support of medical and engineering
professions are just a few needs. He would appreciate the
Committee's support of the amendment.
A roll call was taken on the motion.
IN FAVOR: Senator Thomas, Senator Dyson and Senator Elton
OPPOSED: Senator Huggins, Senator Olson, Co-Chair Stedman and
Co-Chair Hoffman
The motion FAILED (3-4)
The amendment FAILED to be adopted.
DYSON #1: This amendment adds $1,547,900 general funds to the
Department of Environmental Conservation, Water BRU, Water
Quality component on page 14 line 11. Accompanying explanatory
language reads as follows.
In 2005 the Legislature authorized the Department of
Environmental Conservation to take all actions necessary to
assume primacy for the National Pollutant Discharge
Elimination System (NPDES) Wastewater Discharge Program.
This amendment restores $1,547,900, which was deleted by
the subcommittee, so that the state may continue to seek
NPDES discharge permitting authority, including
responsibility for issuing permits and monitoring
compliance with the NPDES Wastewater Discharge Program.
Assuming state primacy will enhance administrative
efficiencies by reducing permitting bodies from two
(federal and state) to one (state) and will allow
permittees to work with Alaska-based permitters who are
familiar with Alaska's unique local conditions, rather than
with EPA staff located in Seattle. In addition more
regulated facilities will actually have NPDES permit
coverage (EPA has not issued the required permits to many
facilities). Although permit fees under a state NPDES
program would increase over currently charged fees,
permittees support state primacy, recognizing the benefits
greatly outweigh the costs.
Senator Dyson announced this amendment would be NOT OFFERED due
to action taken on Elton #1.
AT EASE 6:44:33 PM / 6:44:44 PM
DYSON #2: This amendment removes $374,700 from the Department of
Health and Social Services, Departmental Support Services BRU,
Office of Program Review on page 21, line 14; removes $1,025,300
from the Human Services Community Matching Grant BRU and
component on page 22, lines 15 and 16; and adds $1,400,000 to
the Departmental Support Services BRU, Office of Faith Based &
Community Initiatives component on page 21, lines 15 and 16.
Accompanying explanatory language reads as follows.
Originally the governor proposed fully funding operation of
the Office of Faith Based and Community Initiatives
($1,400,000) by eliminating the Human Services Community
Matching Grants ($1,485,300).
For staffing, the governor proposed transferring four
positions from the Office of Program Review to the Faith
Based Office. It is appropriate that the corresponding
funding for such positions ($374,698) also be transferred
from the Office of Program Review to allow the Faith Based
Office to continue operations unabated.
The balance of the funding can come from the Human Services
Community Matching Grant.
Senator Dyson moved for adoption, overviewed the explanatory
statement and requested that the Administration be allowed to
speak to the amendment.
Co-Chair Hoffman objected to the motion to adopt the amendment.
Ms. Rehfeld reported that the Palin Administration supported the
amendment. The intent was to provide the funds through a
competitive grant process on a statewide basis rather than
solely to the three communities currently receiving it through
the Human Services Community Matching Grants program.
AT EASE 6:46:30 PM / 6:47:24 PM
Co-Chair Hoffman asked Senator Olson, as chair of the Department
of Health and Social Services budget subcommittee, to share his
position on the amendment.
Senator Olson did not support the amendment.
Co-Chair Hoffman maintained his objection to its adoption.
Senator Dyson appreciated Senator Olson's position; however,
indicated that some "confusion" could have occurred in the
subcommittee's actions to recommend the existing funding
allocations.
Ms. Rehfeld informed the Committee that Governor Palin intended
that the funding be available statewide.
Senator Dyson hoped that Senator Olson's objective would be to
allow the funding to be available on a statewide basis. Senator
Dyson urged support for the amendment.
Co-Chair Hoffman asserted that he would support the subcommittee
chair's recommendation despite the benefit the adoption of this
amendment might present to the communities he represents. The
three programs currently receiving this funding should be
provided time to evaluate how a change would affect the programs
currently supported by the funding. This item could be further
addressed during the next budgetary process.
6:49:38 PM
Senator Olson communicated that, while the subcommittee
supported continuing the block grants for the three communities,
it also allocated $500,000 for faith-based community programs.
These actions were supported by the involved entities.
Co-Chair Hoffman maintained his objection.
A roll call was taken on the motion.
IN FAVOR: Senator Thomas and Senator Dyson
OPPOSED: Senator Elton, Senator Huggins, Senator Olson, Co-Chair
Stedman and Co-Chair Hoffman
The motion FAILED (2-5)
The amendment FAILED to be adopted.
DYSON #3: This amendment inserts language to the conditional
language pertaining to appropriations to the Department of
Health and Social Services contained in the committee substitute
Version "T" but deleted from Version "W", which was before the
Committee. [The original language is cited above.] The inserted
language reads as follows.
This statement is a statement of the purpose of the
appropriation and is neither merely descriptive language
nor a statement of legislative intent.
Senator Dyson announced this amendment would be NOT OFFERED.
No further amendments were forthcoming.
Co-Chair Stedman offered a motion to authorize the Division of
Legal and Research Services and the Division of Legislative
Finance to make any necessary technical and conforming changes
to HB 95, Version "W", as amended.
Without objection, the motion was ADOPTED.
Co-Chair Stedman offered a motion to authorize the Division of
Legal and Research Services and the Division of Legislative
Finance to make any necessary technical and conforming changes
to HB 96, Version "L", as amended.
There being no objection, the motion was ADOPTED.
AT EASE 6:52:06 PM / 6:52:42 PM
Co-Chair Stedman offered a motion to report SCS CS HB 95,
Version 25-GH1013\W, as amended, from Committee with individual
recommendations.
There being no objection, SCS CSHB 95(FIN) was REPORTED from
Committee.
6:53:23 PM
Co-Chair Stedman offered a motion to report SCS CSHB 96, Version
25-GH1015\L, as amended, from Committee with individual
recommendations.
There being no objection, SCS CS HB 96(FIN) was REPORTED from
Committee.
6:53:55 PM
Senator Elton thanked Co-Chair Hoffman for his leadership on the
operating budget bills. Senator Elton acknowledged this process
was new to him and that he had learned from it. He appreciated
the assistance he received from Committee members and others.
Co-Chair Hoffman thanked Committee for their diligent work and
voiced appreciation for assistance provided by the Division of
Legislative Finance. The effort had been intensified "in
anticipation of the 90 day session" that would commence with the
second session of the 25th Legislature. The effort to address
the operating budget expediently was also made to allow time for
the Committee to thoroughly discuss the Alaska Gasline
Inducement Act proposed by the Governor. He hoped that the
outcome of that legislation would be as successful as that of
these bills.
6:56:20 PM
Senator Dyson complimented the Committee's actions on its effort
to control State spending. He hoped that "the gain" made by this
Committee would not be negated when the bills are addressed in
Conference Committee.
Senator Dyson also expressed disappointment that the Committee
failed to "take a stand-up for life and unborn children's
lives." He contended there "would be a few hundred more dead
kids because" of action taken by the Committee "unless the House
shows more care than we did."
Senator Huggins thanked Co-Chair Hoffman and his staff for their
leadership and efficiency in addressing this important
legislation. The funding allocated to the Education Fund, which
was established approximately two years prior, is of particular
note, particularly in consideration of the effort to control
operating budget expenses.
Co-Chair Stedman thanked Co-Chair Hoffman for his leadership in
the operating budget process. "It is difficult, multi-faceted
and there's a lot of hard decisions" particularly in light of
"the unprecedented growth" the operating budget has experienced
in the past several years. Further belt-tightening, and perhaps
alternate funding sources, might occur before the financial
benefits provided by a gas pipeline would commence. He commended
Committee Members for their responsive but difficult commitment
to holding down State operating expenses this year and in the
years before revenues from the gas pipeline commence.
Co-Chair Stedman also commended the Committee for the one
billion dollar allocation to the Education Fund. This has
allowed one year of forward funding of education.
Co-Chair Stedman advised that additional State savings are
anticipated to result from the State's FY 08 capital budget
process. The effort should be to save "money today for when it
rains tomorrow."
ADJOURNMENT
Co-Chair Lyman Hoffman adjourned the meeting at 6:59:52 PM.
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