Legislature(1999 - 2000)
03/12/1999 02:33 PM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 12, 1999
2:33 PM
TAPES
SFC-99 #53, Side A (017 - 585)
Side B (585 - 000)
CALL TO ORDER
Co-Chair Sean Parnell convened the meeting at approximately
2:33 P.M.
PRESENT
In addition to Co-chair Parnell, Senators John Torgerson,
Randy Phillips, Dave Donley, Loren Leman, Gary Wilken, Al
Adams, Pete Kelly, and Lyda Green were present when the
committee was convened.
Also Attending: ANNALEE MCCONNELL, Director, Office of
Management and Budget; DAN SPENCER, Chief Budget Analyst,
Office of Management and Budget; BARBARA BRINK, Office of
the Public Defender; SHARON BARTON, Director, Division of
Administrative Services, Department of Administration;
KATHRYN DAUGHHETEE, Director, Division of Administrative
Services, Department of Law; VIRGINIA STONKUS, Financial
Services, Division of Administrative Services, Department
of Environmental Conservation; NICO BUS, Administrative
Services Manager, Division of Support Services, Department
of Natural Resources and Department of Military and
Veterans' Affairs; JANET CLARKE, Director, Division of
Administrative Services, Department of Health and Social
Services; CHRIS CHRISTENSEN, Staff Counsel, Alaska Court
System; DAVID BLAISDELL, staff to Senator Sean Parnell;
JOHN BITNEY, Alaska Housing Finance Corporation; DAVID
TEAL, Director, Division of Legislative Finance; JIM HAUCK,
Fiscal Analyst, Division of Legislative Finance; GINGER
BLAISDELL, Fiscal Analyst, Division of Legislative Finance;
aides to committee members and other legislative members.
Attending via Teleconference:
SUMMARY INFORMATION
HOUSE BILL NO. 100
"An Act making and amending capital, supplemental, and
other appropriations, and appropriations to capitalize
funds; ratifying certain expenditures; and providing for an
effective date."
CS FOR HOUSE BILL NO. 100(FIN)
"An Act making and amending capital, supplemental, and
other appropriations; making and amending appropriations to
capitalize funds; ratifying certain expenditures; making
and amending appropriations under art. IX, sec. 17c,
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for an
effective date."
CS FOR HOUSE BILL NO. 100(FIN)(brf sup maj fld)(efd fld)
"An Act making and amending capital, supplemental, and
other appropriations; making and amending appropriations to
capitalize funds; ratifying certain expenditures."
Co-chair Parnell convened the meeting at approximately 2:35
p.m. He briefly explained SCS CSHB 100(FIN) work draft M,
dated 3/12/99.
Senator Phillips asked the difference between the Senate
Finance Committee substitute and the version of the House
bill that had passed. (The committee took a brief at ease
at approximately 2:40 p.m.)
Co-chair Parnell reconvened the meeting at approximately
2:55 p.m. He asked David Blaisdell to come before the
committee and explain the changes.
David Blaisdell, staff to Senator Sean Parnell was invited
to join the committee. The difference in the disaster fund
involved several things. He referred the committee to
section 2 of the bill. The Senate Finance Committee
substitute requested $3.5 million in federal receipts
resulting from the transfer. The House bill added $1.2,
which they were transferring for that. They only withheld
funding for Perseverance Trail. The Senate Finance
Committee removed funding for all three trails.
The next difference was the Pioneer Homes 6(h), (g), (f)
and the Senate Finance Committee substitute was funding the
entire repair of the Fairbanks Pioneer Home boiler from
AHFC receipts. The House would fund half through general
funds receipts and the other half from AHFC receipts.
Under section 7, the Department of Community and Regional
Affairs, the Senate Finance Committee substitute funded
$1,400 for PCE whereas the House took it out of the bill
completely.
Senator Donley said the issue of PCE should not have been
brought up at all before discussion by the committee.
Mr. Blaisdell continued his presentation with Section 11,
which was the increase for CAMA and subsidized adoptions.
They reduced the Department of Community and Regional
Affairs by the same amount.
In section 16, the Department of Revenue, $800,000 was
requested for CSED by the Senate Finance Committee, which
was reflected in the work draft.
Senator Phillips referred to page eight, line sixteen,
which he said appeared in the House bill. Co-chair Parnell
explained that this reflected the funding change.
Senator Torgerson said the House did add an amendment
regarding program receipts, which was section 24 of the
House bill. It was not, however, included in the work
draft SCS.
Co-chair Parnell asked for a motion to move the work draft,
version "M" of SCS CSHB 100(FIN).
Senator Torgerson moved SCS CSHB 100(FIN), version "M" as
working draft before the committee. Senator Donley
objected specifically to section twenty-two and PCE.
Co-chair Parnell explained that this would be the first
time PCE would be adopted.
Senator Phillips MOVED to delete section seven of the work
draft. (The committee took a brief at ease at
approximately 3:05 p.m.)
Co-chair Parnell reconvened the meeting at approximately
3:07 p.m.
Senator Phillips renewed his motion #27 to delete section
seven of the work draft. Senator Adams OBJECTION. He said
the work draft should be adopted first before any
amendments.
Co-chair Parnell also objected to the amendment. It should
be taken up after adoption of the work draft. By a roll
call vote of 2 yeas (Phillips, Donley) and 7 nays (Parnell,
Torgerson, Leman, Wilken, Adams, P. Kelly, L. Green)
amendment #27 FAILED.
Senator Torgerson asked UNANIMOUS CONSENT for the adoption
of SCS CSHB 100(FIN), version "M". Senator Donley
objected. By a roll call vote of 8 yeas (Parnell,
Torgerson, Leman, Wilken, Adams, P. Kelly, L. Green,
Phillips) and 1 nay (Donley) SCS CSHB 100(FIN) was ADOPTED
as the working draft before the committee.
Senator Torgerson MOVED amendment #1. Senator Adams
OBJECTED. This amendment would add $176,443.00 to the
General Fund appropriation. By a roll call vote of 8 yeas
(Parnell, Torgerson, Leman, Donley, Wilken, P. Kelly, L.
Green, Phillips and 1 nay (Adams) amendment #1 was ADOPTED.
Senator Green MOVED amendment #3. By way of explanation
she referred to the Historic Bristol Bay Sockeye Harvest
handout which she provided the committee members. Senator
Adams OBJECTED. He feared there would be lawsuits.
Senator Green briefly responded. Senator Adams referred to
SB 101, which defined what is a disaster. This should be
worked on. Disasters have been taken care of in prior
years, such as fires and earthquakes. There is a need to
fund declared disasters so that Federal funds can be
collected.
Co-chair Parnell advised that this amendment was wrestled
with considerably. It was felt that the intent of disaster
statute was stretched beyond recognition. The supplemental
would pass State monies to communities to make the
necessary match. In Senator Green's amendment the State
would give funds in order to acquire funds. C0-chair
Parnell felt they should work on narrowing the emergency
statute. He was concerned about how the disaster funds are
being used or misused. It was his feeling that the
statutes should be narrowed.
Senator Green asked if some contingency language might be
developed stating that the amendment be included only if SB
101 passed. Co-chair Parnell said this could be hammered
out later.
Senator Leman voiced his concern with the manner in which
the Administration had handled this matter. He said there
was an obligation by the Legislature to step up and object.
He would support changing the definition of the law. Other
economic disasters had not resulted in a State bale-out.
He shared much of the sentiment and would support the
appropriate language. Senator Green was concerned,
however, that this would not cover the community match.
Co-chair Parnell commented briefly and then asked for a
roll call vote on amendment #3. By a roll call vote of 1
yea (Green) and 8 nays (Parnell, Torgerson, Donley, Leman,
Wilken, Adams, P. Kelly, Phillips) amendment #3 FAILED.
Senator Adams MOVED amendment #4. Senator Phillips
OBJECTED. Senator Adams briefly explained the amendment.
His amendment would restore funding for the Southeast
wind/raid disaster. Senator Leman said he thought they had
agreed to fix the trail and then have the City of Juneau
take it over.
Co-chair Parnell explained. Monies were appropriated to
fix up portions of the trail. They would use the monies,
fix up the trail and then convey it to the city. However,
the monies were reappropriated because Juneau had
volunteers to fix up the trail. The city would then not
accept the trail until it was upgraded to their more
specific standards. This request related to a different
disaster on the trail. There was the possibility of
relocating the trail rather than using disaster funds for
repairs.
Senator Adams MOVED an amendment to amendment #5 and MOVED
the withdrawal of amendment #5. WITHOUT OBJECTION
amendment #5 was WITHDRAWN and new amendment #5 was MOVED.
This amendment would appropriate AHFC receipts to the
Western Alaska fisheries disaster. Senator Torgerson
OBJECTED. By a roll call vote of 1 yea (Adams) and 8nays
(Parnell, Torgerson, Donley, Leman, Wilken, P. Kelly, L.
Green, Phillips) new amendment #5 FAILED.
Senator Donley MOVED amendment #6. Senator Adams OBJECTED.
Senator Adams said a bad precedent would be set with this
amendment. Senator Donley responded saying that parameters
should be set on attorney fees. Senator Kelly asked to
hear from the Court.
Chris Christensen, Staff Counsel, Alaska Court System was
invited to join the committee. He explained that there was
a statute which authorized the judiciary branch to allow
for fees. He referred to a case from 1974, Gilbert vs.
State. There had been ample opportunities to change the
statute. In his nine years of service to the Court System
he cannot recall legislation being introduced to fix fees.
Each year the committee goes through the judgments and
blames the Court. He explained how public individuals view
their rights. There was frustration and genuine anger this
year. Past Legislatures have never sent a message to the
public that the Judge would hear their case in a
prejudicial manner and not rule in favor of the plaintiff
in order to protect the State. Senator Donley briefly
commented.
Co-chair Parnell asked for a vote. By a roll call vote of
4 yeas (Donley, Leman, L. Green, Phillips) and 5 nays
(Parnell, Torgerson, Wilken, Adams, P. Kelly) amendment #6
FAILED.
Senator Donley WITHDREW amendment #7.
Senator Donley MOVED amendment #8. Senator Adams OBJECTED.
He asked that Chris Christensen be invited back before the
committee.
Chris Christensen was invited to rejoin the committee. He
referred to the Legislative session of 1993. Approximately
one hundred thousand pages of Court transcriptions were
prepared. That included two full-time State employees and
a network of private contractors around the State preparing
transcripts. When something is privatized that invites
contract claims.
Co-chair Parnell asked if the numbers in amendment #8 had
been compared to know if they were accurate? Mr.
Christensen responded referring to the settlement. Co-
chair Parnell said the listed numbers did not match the
bill. Senator Donley responded. He said the Court System
chose to make the settlement. "This is the problem.
State agencies make a settlement and then submit the bill
to Legislature for payment. This needs to be accounted
for." (There followed a brief pause on record.)
David Blaisdell noted a technical change to amendment #8.
The correct amounts for lines four, five, seven and eight
would be respectively as follows: $1,883,300; $1,856,515;
$1,868.000; and $1,841,215. The drafter will conform these
corrected amounts if the amendment passes. Senator Kelly
asked for an explanation of judgments? Senator Donley
responded. These were for attorney fee judgments in the
settlement of a claim.
By a roll call vote of 6 yeas (Donley, Leman, Wilken, P.
Kelly, L. Green, Phillips) and 3 nays (Parnell, Torgerson,
Adams) amendment #8 was ADOPTED.
Senator Adams MOVED amendment #9. This amendment would
restore funding for a third probation officer to manage a
caseload of eight hundred seventy-four prisoners. Senator
Torgerson OBJECTED. Senator Green asked if the money was
in the previous bill.
By a roll call vote of 1 yea (Adams) and 8 nays (Parnell,
Torgerson, Donley, Leman, Wilken, P. Kelly, L. Green,
Phillips) amendment #9 FAILED.
Senator Adams MOVED amendment #10. He explained that this
would fund minimal staffing needed for anticipated prisoner
population at Cook Inlet Pretrial Facility. Senator
Torgerson OBJECTED. By a roll call vote of 1 yea (Adams)
and 8 nays (Parnell, Torgerson, Donley, Leman, Wilken, P.
Kelly, L. Green, Phillips) amendment #10 FAILED.
Senator Adams MOVED amendment #11. Senator Donley
OBJECTED. Senator Donley said there were more Public
Defenders that prosecutors. Thad did not count Office of
the Public Advocate. He felt restoring this funding would
be a serious mistake. Senator Adams responded and said
there had been an increase of eight hundred cases last
year. By a roll call vote of 1 yea (Adams) and 8 nays
(Parnell, Torgerson, Leman, Wilken, P. Kelly, L. Green,
Phillips) amendment #11 FAILED.
Senator Leman MOVED amendment #12. He explained this would
reappropriate $430,300 in Federal indirect "reimbursements"
that may be used as State funds for the SCED shortfall.
WITHOUT OBJECTION amendment #12 was ADOPTED.
Senator Adams MOVED #13. Senator Torgerson OBJECTED.
Senator Adams explained this increment would fund the
maintenance costs of the Harborview facility in Valdez. By
a roll call vote of 1 yea (Adams) and 8 nays (Parnell,
Torgerson, Donley, Leman, Wilken, P. Kelly, L. Green,
Phillips) amendment #13 FAILED.
Senator Adams WITHDREW amendment #14. He then MOVED the
new amendment #14. This amendment would allow for the
manual opening of the "plow roads" during spring of 1999.
Senator Torgerson OBJECTED. By a roll call vote of 2 yeas
(Adams, Phillips) and 7 nays (Parnell, Torgerson, Donley,
Leman, Wilken, P. Kelly, L. Green) new amendment #14
FAILED.
Senator Torgerson MOVED amendment #15. WITHOUT OBJECTION
it was ADOPTED.
Senator Torgerson MOVED amendment #16. Senator Donley
asked where program receipts came from. Senator Torgerson
explained the appropriation would provide authority to
receive and expend funds from the Kodiak area fishermen and
the funding would not affect the General Fund budget.
WITHOUT OBJECTION amendment #16 was ADOPTED.
Co-chair Parnell said the committee would take a brief at
ease at approximately 4:05 p.m.
Co-chair Parnell reconvened the committee at approximately
5:20 p.m. with all members present.
Senator Torgerson MOVED amendment #17. He explained that
this amendment would add $200 million to the general fund
from the budget reserve fund. Senator Adams asked how long
$200 million would last and also noted that he would like
to hear from the Office of Management and Budget.
Annalee McConnell, Director, Office of Management and
Budget was invited to join the committee. She said she had
not had an opportunity to check with Commissioner Poe on
the latest figures.
Co-chair Parnell said he did not know where they would all
end up at the end of year with the current oil prices.
WITHOUT OBJECTION amendment #17 was ADOPTED.
Senator Leman MOVED amendment #18. This would appropriate
funds for the replacement of the Fairbanks Pioneer Home
boiler system. WITHOUT OBJECTION amendment #18 was
ADOPTED.
Senator Phillips MOVED amendment #19. He explained this
amendment would delete the entire section seven of the
bill, Power Cost Equalization. Senator Adams OBJECTED. He
said there was a commitment by the State regarding PCE.
Further, he was willing to work with the committee to find
a long-term solution. He asked that this amendment not be
adopted. By a roll call vote of 2 yeas (Phillips, Donley)
and 7 nays (Parnell, Torgerson, Leman, Wilken, Adams, P.
Kelly, L. Green) amendment #19 FAILED.
Senator Torgerson MOVED amendment #20. This amendment
would increase the miscellaneous claims amount by $450.00
to reflect an additional bill received by the Department of
Administration. WITHOUT OBJECTION amendment #20 was
ADOPTED.
Senator Torgerson moved amendment #21. This amendment
would increase the miscellaneous claims amount by $97.95 to
reflect an additional bill received by the Department of
Fish and Game. WITHOUT OBJECTION, amendment #21 was
ADOPTED.
Senator Torgerson moved amendment #22. This amendment
reflected the Department of Health and Social Services'
intention to reduce GF/MH expenditures by $229.200.
WITHOUT OBJECTION amendment #22 was ADOPTED.
Senator Torgerson moved amendment #23. This amendment
reduced the FY99 GF deposit in the AMHS fund by $180,000 to
reflect operational savings by the Alaska Marine Highway
System with the rest of the reductions to come from other
departmental operations. WITHOUT OBJECTION amendment #23
was ADOPTED.
Senator Green MOVED amendment #24. She explained this
appropriation would raise the number of full-time
equivalent direct-care nurses to a minimum ration of one
nurse to fifty residents per shift for residents in
comprehensive, Alzheimer's disease or related dementia, and
enhanced assisted living levels of care, and then, with any
remaining balance, for direct-care certified nurse aides.
WITHOUT OBJECTION amendment #24 was ADOPTED.
Senator Torgerson MOVED amendment #25. Co-chair Parnell
explained the amendment briefly. WITHOUT OBJECTION
amendment #25 was ADOPTED.
(The committee took a brief at ease.)
Co-chair Parnell reconvened the committee. Senator
Torgerson moved amendment #26 and briefly explained.
WITHOUT OBJECTION amendment #26 was ADOPTED.
Senator Green MOVED amendment #28. Senator Adams OBJECTED.
Senator Green explained that enactment of this section was
conditioned upon the enactment into law of SB 101, amending
the definition of "disaster". "Things need to change with
this legislation," said Senator Adams. "This does not
address Kotzebue or North Pole, for instance." He said he
would be happy to work with the committee regarding this
amendment.
Senator Torgerson advised that SB 101 was noticed for
hearing before the committee next Tuesday. He said it was
his intent to push this bill through.
By a roll call vote of 8 yeas (Parnell, Torgerson, Donley,
Leman, Wilken, P. Kelly, L. Green, Phillips) and 1 nay
(Adams) amendment #28 was ADOPTED.
Senator Torgerson moved amendment #29. Senator Donley
explained opposition to this amendment and the difficulties
with the adoption of the Senate Committee Substitute work
draft now before the committee. Senator Leman said he
would support amendment #29. Shortfalls were not the fault
of PCE recipients. Senator Green commented briefly.
There were challenges that must be addressed this year.
By a roll call vote of 8 yeas (Parnell, Torgerson, Donley,
Leman, Wilken, P. Kelly, L. Green, Phillips) and 1 nay
(Adams) amendment #29 was ADOPTED.
Senator Donley MOVED amendment #30. Senator Adams
OBJECTED.
(Tape change to #59, Side A, log 000.)
Senator Donley WITHDREW amendments #30 and 31. (There
followed a brief at ease.)
Co-chair Parnell returns to amendment #30.
Senator Donley again MOVED amendment #30. Senator Adams
OBJECTED. Senator Donley explained briefly. Senator
Torgerson said the numbers do not compute. Senator Adams
advised the committee that the Office of Management and
Budget had advised that the numbers were off.
Annalee McConnell, Director, Office of Management and
Budget rejoined the committee. She said some of the cases
were missing and that this did not represent a full list.
Senator Donley felt she was referring to a whole different
issue. Ms. McConnell indicated there was a subsequent
list dated 3 March 1999. Co-chair Parnell asked what was
the discrepancy? Ms. McConnell said three cases were
missing, including updated costs.
(There followed a brief at ease.)
Co-chair Parnell reconvened the committee at approximately
6:00 p.m. Senator Donley said he had copies of the three
cases and asked they be added to the list in amendment #30.
They were: "Larson, Timbers & Thomas Edward Davis vs.
CSED"; "Tanana Chiefs Conference, Inc. CSED vs. Native
Village of Minto"; and "Bryan Timbers Lewis Nakarak vs.
CSED". Senator Adams asked that administrative costs also
be added. WITHOUT OBJECTION the amendment to amendment #30
was ADOPTED. Senator Adams therefore WITHDREW his
objection to amendment #30. WITHOUT OBJECTION amended
amendment #30 was ADOPTED.
Senator Adams MOVED amendment #32. Senator Torgerson
OBJECTED. Senator Leman agreed with Senator Torgerson and
said he would rather see if the money could be found
somewhere else. Senator Donley referred to amendment #33.
He explained the reduction to the Office of the Public
Advocate. It would be consistent with the reduction to the
Public Defender Agency.
Senator Donley MOVED amendment to amendment #32. He
explained that he would WITHDRAW his amendment #33 with the
exception of the reference to page three, line thirteen and
page twelve, line eleven. He asked these two references be
incorporated into amendment #32. Senator Adams OBJECTED
and suggested the monies be taken from LB&A. By a roll
call vote of 5 yeas (Parnell, Donley, Leman, Green,
Phillips) and 4 nays (Torgerson, Wilken, Adams, P. Kelly)
the amendment to amendment #32 was ADOPTED.
Senator Adams MOVED amended amendment #32. Senator
Torgerson OBJECTED. By a roll call vote of 7 yeas
(Parnell, Donley, Leman, Wilken, Adams, L. Green, Phillips)
and 2 nays (Torgerson, P. Kelly) amended amendment #32 was
ADOPTED.
Senator Donley WITHDREW amendment #33.
(There followed a brief at ease at approximately 6:10 p.m.)
Co-chair Parnell reconvened the committee at approximately
6:35 p.m.
Senator Leman MOVED amendment #34. In addition he
explained that he will move to rescind action on amendment
amendment #12 and would therefore replace it. Senator
Leman MOVED to rescind action in amendment #12. WITHOUT
OBJECTION committee action on amendment #12 was RESCINDED.
Senator Leman MOVED amendment #34. Senator Adams OBJECTED
and asked for an explanation.
Ginger Blaisdell, Fiscal Analyst, Division of Legislative
Finance was invited to join the committee. She explained
the substitution of amendment #34 for #12. The unexpended
and unobligated amount, not to exceed $421,889 from program
receipts received during the fiscal year ending June 30,
1999 by the child support enforcement division that are
collected from Alaska temporary assistance recipients that
exceeds $7,244,400 are appropriated to the Department of
Revenue, child support enforcement division for operating
costs for the fiscal year ending June 30, 1999.
Co-chair Parnell explained that if receipts were collected
it would be possible to receive $750,000 in receipts and
use $421,000 in their projection.
Annalee McConnell, Director, Office of Management and
Budget was invited to join the committee along with Dan
Spencer, Chief Budget Analyst, Office of Management and
Budget. She said they supported use of CSED funds. Now
they would be relying on two types of receipts. However,
they will not know until the end of the year how much will
be allowed. The welfare reform effect was greater than had
been anticipated. However, it was explained that it would
not affect the draw on the CBR fund; also no effect on the
combined General Fund number.
Senator Adams REMOVED his objection. WITHOUT OBJECTION,
amendment #34 was ADOPTED.
Senator Donley MOVED amendment #35. This would add a
subsection 4(c), the sum of $10,000 to be appropriated from
the General Fund to the Department of Law to pay costs
associated with the Judgments and Claims listed in
subsections (a) and (b). The funds lapse on June 30, 1999.
WITHOUT OBJECTION amendment #35 was ADOPTED.
Co-chair Parnell asked for a brief at ease at the table.
He reconvened the committee again at approximately 7:10
p.m.
Senator Donley noted a technical amendment to amendment
WITHOUT OBJECTION this technical change was made.
Senator Torgerson MOVED SCS CSHB 100(FIN), version "M".
Senator Adams OBJECTED. By a roll call vote of 8 yeas
(Parnell, Torgerson, Donley, Leman, Wilken, P. Kelly, L.
Green, Phillips) and 1 nay (Adams) SCS CSHB 100(FIN) was
REPORTED OUT with individual recommendations.
Co-chair Parnell thanked the committee and his staff for
their hard work. There followed a brief discussion about
the request by the Administration for funds last year as
compared to this year.
ADJOURNMENT
Senator Parnell adjourned the meeting at approximately 7:20
p.m.
SFC-99 (14) 3/12/99
| Document Name | Date/Time | Subjects |
|---|