Legislature(1993 - 1994)
03/30/1993 08:20 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 30, 1993
8:20 a.m.
TAPES
SFC-93, #45, Side 2 (291-087)
CALL TO ORDER
Senator Steve Frank, Co-chair, convened the meeting at
approximately 8:20 a.m.
PRESENT
In addition to Co-chair Frank, Senators Jacko, Kelly,
Kerttula, Rieger, and Sharp were present. Co-chair Pearce
did not attend.
ALSO ATTENDING: Cheryl Frasca, Director of Budget Review,
Office of Management and Budget; Mike Greany, Director,
Legislative Finance Division; Joan Kasson, fiscal analyst,
Legislative Finance Division; Traci Cramer, budget analyst,
Office of Management and Budget; and aides to committee
members and other members of the legislature.
SUMMARY INFORMATION
SENATE BILL NO. 100
An Act making supplemental and special
appropriations for the expenses of state
government; making, amending, and repealing
capital and operating appropriations; and
providing for an effective date."
CSSB 100 (Finance) was REPORTED OUT of committee with a
"do pass" recommendation and a SFC Letter of Intent.
Co-chair Steve Frank directed attention to an updated draft
CSSB 100 (Fin) (8-GS106\O, Utermohle, 3/29/93) and advised
that it contains amendments from the hearing the day before.
The Co-chair then highlighted the following changes:
Office of the Public Defender, DOA A d d e d
$300.0
Office of Public Advocacy, DOA A d d e d
$500.0
Revenue Operations, DOR A d d e d
$225.0
McLaughlin Youth Center, DH&SS
97.5*
Fairbanks Youth Facility, DH&SS
60.0*
Contract Jails, DPS A d d e d
$200.0
Seafood Sanitation, DEC A d d e d
$151.2
Co-chair Frank advised that additional funding of $225.0
from the $325.0 the Dept. of Revenue requested for revenue
operations would allow the department to begin hiring needed
auditors. *He further advised that the Dept. of Health and
Social Services found available revenues within Northern
Region family and youth services so that funding of $97.5
could be reallocated to the McLaughlin Youth Center and
$60.0 to the Fairbanks Youth Facility. This reallocation
will allow the department to provide additional assistance
to the Bethel Receiving Home to keep it open.
Senator Kerttula voiced support for additional funding for
both the public defender and revenue auditors. He then
advised that he had an additional amendment he would
subsequently propose to committee.
Senator Rieger posed a question regarding backup information
submitted with the $351.2 request for seafood sanitation.
He noted indication of a current balance of $1.8 million and
projected expenditures, February through June, of $1.999 for
a difference of approximately $200.0. He then asked why the
total was increased to $351.2 rather than $200.0.
TRACI CRAMER, budget analyst, Office of Management and
Budget, explained that funds that appear to be available for
lapse are federal and cannot be applied to the program.
They are unrealized federal moneys. Requested funding will
cover both unrealized federal dollars and unrealized program
receipts. Senator Rieger asked why the program receipts
were not realized. Mrs. Cramer advised of three reasons:
1. The Legislature assumed the receipts would be
achievable on July 1.
2. Problems with the regulation process delayed
effectiveness until February.
2. The fees were "very optimistic." Hearings
indicated that
the public felt the fees were too high for the
first year of the program. Downward adjustments
were thus made.
Senator Kerttula distributed an amendment to add $1,000,000
in general funds to the Dept. of Law to pay judgments and
claims against the state for the fiscal year ending June 30,
1993. He then MOVED for adoption. He explained that the
Dept. of Law is appealing only $85.0 of the total judgment
from the recent reapportionment lawsuit. House Bill 146
(Appropriation for Reapportionment Litigation Costs) is
presently in Senate State Affairs and has two additional
referrals prior to coming to the floor. Senator Kerttula
questioned whether the bill would move, and he noted that
the current judgment against the state continues to accrue
interest at 10%. Co-chair Frank said that he looked into
the issue and found the case to be complicated and amounts
to be arbitrary. He stated his impression that half of the
judgment was on appeal. The Co-chair then voiced his intent
to deal with the judgment in the above-noted bill or "some
later vehicle."
Senator Kerttula next directed attention to a breakdown of
costs contained within a memo (copy on file) from Stephen C.
Slotnick, Assistant Attorney General, Dept. of Law. The
Senator then suggested it would be both a financial and
political error not to resolve the issue before the end of
the session.
Senator Sharp voiced concern over demonstrating legislative
intent to fully pay an anticipated balance before the matter
works its way through the court system. Co-chair Frank
concurred. Senator Kerttula reiterated that only $85.0 of
the total is on appeal.
Co-chair Frank called for further debate. None was
forthcoming. He then called for objections to the motion
for adoption of the amendment. Senator Kelly OBJECTED. Co-
chair Frank directed that a roll call vote be taken:
YEAS: Kerttula
NAYS: Rieger, Jacko, Sharp, Kelly, Frank
The motion FAILED on a vote of 1 to 5.
Senator Kelly MOVED for adoption of CSSB 100 (Finance). No
objection having been raised, CSSB 100 (Finance) was
ADOPTED.
Co-chair Frank directed attention to a March 29, 1993, memo
from Randy Welker, Legislative Auditor, and advised that it
contains proposed intent language relating to supplemental
funding for the Division of Elections. Senator Kelly MOVED
that the six recommendations set forth in the memo be
incorporated within a Senate Finance Committee letter of
intent to accompany the bill. No objection having been
raised, the motion CARRIED, and the letter of intent was
ADOPTED.
Senator Kelly MOVED that CSSB 100 (Finance) pass from
committee with individual recommendations. No objection
having been raised, CSSB 100 (Finance) was REPORTED OUT of
committee with the Senate Finance Committee letter of
intent. All members present signed the committee report
with a "do pass" recommendation, with the exception of
Senator Kerttula who signed "no rec."
ADJOURNMENT
The meeting was adjourned at approximately 8:30 a.m.
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