Legislature(2001 - 2002)
03/29/2001 10:05 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 29, 2001
10:05 AM
TAPES
SFC-01 # 57, Side A
SFC 01 # 57, Side B
CALL TO ORDER
Co-Chair Dave Donley convened the meeting at approximately 10:05
AM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Loren Leman
Senator Lyda Green
Senator Gary Wilken
Senator Alan Austerman
Senator Lyman Hoffman
Senator Donald Olson
SUMMARY INFORMATION
HB 103-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 104-APPROP: MENTAL HEALTH BUDGET
The Committee heard subcommittee budget reports for the Department
of Revenue, Department of Environmental Conservation, Alaska Court
System, Department of Law, Department of Education and Early
Development, Department of Fish and Game, Office of the Governor,
Department of Community and Economic Development, Department of
Health and Social Services, Legislature, and the University of
Alaska. All subcommittee budget reports were adopted.
CS FOR HOUSE BILL NO. 103(FIN)(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."
CS FOR HOUSE BILL NO. 104(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."
Senator Leman complimented the departments he worked with for their
cooperation in reviewing the budgets.
Department of Revenue
Senator Leman, Chair
Senator Phillips
Senator Ellis
Senator Leman said the Department of Revenue Management Plan for
FY 01 was approximately $12.1 million in general funds, and the
subcommittee was directed by the Senate to prepare a budget of
$11.9 million general funds for FY 02. He noted this amount was
just slightly below the Governor's requested amount of $12.017.3
million.
Senator Leman reviewed the line items as follows:
Fully funded Child Support Enforcement and allowed for
increase to Officer 1 upgrade
He expressed that the full funding of the child support budget
request was the "highlight" of the $11.9 million budget the
subcommittee prepared.
Included front section language to allow Child Support
Enforcement Division (CSED) to use minimum state required
match for federal funds
Disallowed a $58.0 request for Municipal Bond Bank Authority
(MBBA) receipts after discussing with the Department the
possibility of coming back with a supplemental request if bond
sales do occur. This is distinct from the $58.0 MBB Rcpt
request in the Slow-Track Supplemental which does need to be
funded.
Alaska Housing Finance Corporation (AHFC): Increased federal
receipts ($300.0) for 370 new Section 8 vouchers; but
disallowed three additional positions to administer these
vouchers. I've asked the Department to review its staffing
levels and see if this work can be done with existing staff.
AHFC: Disallowed two PCNs and funding for HOME/Tax Credit
compliance auditors. Requested Department to review its
staffing levels and see if this work can be done with existing
staff.
Slightly reduced the Department request for AHFC Receipts for
programs moving from the Capital to the Operating Budget.
($462.0 to $435.0/AHFC Rcpts).
Alaska Mental Health Trust Authority (AMHTA): Allowed one
intern and one permanent FT employee and some increased travel
(Request was $23.8 Mental Health Administration (MH Admin),
funded $11.0).
AMHTA; After seeing that thirteen out of twenty-one Deputy
Directors are Range 23 or below, reduced the request for a
Deputy Director from Range 25 to Range 23.
There were increases in Alaska State Pension Investment Board
management fees.
Senator Leman commented that while the increase of approximately
$4.5 million in management fees was not part of the general funds,
he wanted to bring it to the Committee's attention.
Reduced Permanent Fund Corporation's request for additional
travel, salaries, and equipment ($58.7 request funded at
$47.1)
Senator Leman clarified that even though the travel, salaries, and
equipment funds were not general funds, the subcommittee wanted to
be responsible for the allocations.
Allowed partial increment to Permanent Fund Division
(request $116.5, funded $110.0)
Senator Leman informed that this Permanent Fund Division request
was to cover costs of mailing letters, instead of postcards,
notifying residents that their Permanent Fund applications had been
received.
Senator Leman commended to the full Senate Finance Committee the
subcommittee's General Fund proposed budget of $11,952,000 for the
Department of Revenue.
Department of Environmental Conservation
Senator Leman, Chair
Senator Torgerson
Senator Olson
Senator Leman stated that the Department of Environmental
Conservation had previously been funded with $12.2 million in
general funds out of a total department budget of close to $50
million. He noted that the Governor's budget request included $1.5
million in general funds and two positions, additional "Oil and Haz
Mat funds" of close to $700,000 and three positions, and Facility
Receipt Funds of approximately $150,000 and two positions. He
continued that the Governor's budget consisted of a total increase
of $2.8 million and seven positions. He informed that the
allocation for funding his subcommittee received for the Department
of Environmental Conservation budget was a $700,000 increase over
the FY 01 Management Plan. He informed that the subcommittee
recommended a budget of $12.82 million dollars, which was $100,000
under the allocation.
He highlighted other subcommittee recommendations as follows:
Disallowed a $300.0/GF increment for Arctic Contaminants
Program - there are funding sources in the Capital and
Operating budgets if this is a priority for the Department.
Slight reduction in Solid Waste Management.
Allow increment for Water Quality due to passage of HB 361,
and kept $77.0 in Statutory Designated Program Receipts.
Increased funding to the Spill Prevention and Response
Division to include $609.4 in 470 Fund (Oil and Hazardous
Substance Prevention and Response Fund) + two positions for
new activities associated with British Petroleum/ARCO/Phillips
merger. Additionally, $77.5 Oil Haz & one position for SB 273
Cruise Ship/Railroad monitoring.
Funding for Local Emergency Planning committees to create,
maintain and test oil/hazardous substance spill response plans
($423.4 Oil Haz & zero positions).
Senator Leman noted the subcommittee had increased the funding
approximately $100,000 over last year for local emergency planning
commissions.
Facility Construction & Operation: Funded one of two requested
positions to administer operator certification requirements
for Class A water systems.
Letter of Intent directing the Department to seek a waiver to
exclude the smallest water systems that do not add chemicals
to their systems from the operator certification requirements.
Senator Leman concluded that the subcommittee met the spending
limit determined by the Senate Majority, and he believed the
Department is funded adequately to do its mission.
Alaska Court System
Senator Wilken, Chair
Senator Pearce
Senator Davis
Senator Wilken informed that the subcommittee's budget
recommendation of $50,923,500 was within the allocation for the
Alaska Court System (ACS) He said this allocation was met with a .7
percent increase in general fund spending, almost all of which
would be dedicated to the maintenance and operations cost of
approximately $337,700 for the new Fairbanks Courthouse (Trial
Courts), scheduled to open in August 2001.
He stated the following receipt authority was approved:
An increment of $150,000 from the Mental Health Trust
Authority for a count coordinated resources project to assist
mentally ill persons who have been convicted of a misdemeanor
crime.
An increment of $188,100 from the Department of Revenue
interagency receipts to establish a pro se center to assist
litigants in family matters before and after court
proceedings.
An increment of $216,000 from federal receipts to continue
the Anchorage Drug Court pilot program.
Commission of Judicial Conduct - The Subcommittee approved a
$15,000 increment to help reduce the level of underfunding in
its personnel budget.
Judicial Council - The subcommittee recommended the
continuation of the Judicial Council's budget as funded
in FY 01.
Senator Wilken continued that the budget approved an "increase in
headcount of plus four" with zero general fund additions. He
informed that the Judicial Council came in the very last day of the
budget work, with late information on some outstanding funding
source issues and asked for a $39,000 increment. He commented that
while he was not able to put it in the budget, he understood their
situation. He stated he wanted the Committee to know about the
request so further discussion might garner another funding source.
Senator Leman asked for further details on the four new positions.
Senator Wilken responded that he did not have that information with
him.
Co-Chair Donley said that they would come back to that.
Department of Law
Senator Wilken, Chair
Senator Taylor
Senator Ellis
Senator Wilken reported that the proposed budget allocation for FY
02 Operating Budget for the Department of Law was met with
$25,473,600 in general fund spending. He commented that this was an
overall 1.55 percent reduction in general funds spending. He added
that the subcommittee approved the addition of eight new positions
for the Department, two of which would be funded by general funds.
He continued that in addition to the baseline management plan, the
subcommittee approved the following "significant" items:
Criminal Division, Criminal Justice Litigation
Approved an increment for $117,500 for the Victim Witness
Notification and Support program to provide for more reliable
notification to victims of crime.
Civil Division, Collections and Support
Approved a reduction in excess General Fund Program Receipt
Authority in the amount of $53,700.
Civil Division, Environmental Law
Approved a reduction in excess General Fund Program Receipt
Authority in the amount of $33,500.
Civil Division, Governmental Affairs Section
Approved an increment for $90,000 for an Associate Attorney
(paralegal) position to conduct specialized research and
assist within the Governmental Affairs Division.
Civil Division, Human Services Section
Approved an increment for $137,000 for a Juvenile Delinquency
Attorney position in Anchorage to handle the significant
increase in the number of cases handled by this section over
the past two years.
Oil and Gas Litigation and Legal Services, Oil and Gas
Litigation
Approved a reduction in General Fund support for this division
by $91,600.
Senator Wilken noted that the subcommittee asked the Division of
Oil and Gas to help absorb new general fund allocation increases by
shouldering a $91,600 reduction.
Senator Wilken informed there were outstanding issues the
Department of Law was involved in, one of which was an on-going
lawsuit against the Bank of America. Senator Wilken explained that
the Department of Law had asked for $250,000 to continue that
lawsuit with an anticipated rate of return of between $50 and $80
million. He continued that he felt this would be money well spent,
but there were two other avenues of funding that could be available
for funding which he would support, rather than through the
operating budget.
Co-Chair Donley commented that this funding was not in the House of
Representatives budget either.
Senator Wilken replied that was correct.
Department of Education and Early Development
Senator Wilken, Chair
Senator Elton
Senator Torgerson
Senator Wilken reported that the Department of Education and Early
Development (DEED) allocation was $29,795,800 and did not include
budget recommendations for the foundation formula or pupil
transportation. He informed the full Senate Finance Committee would
address those items. He noted the overall reduction of $188,300 in
general fund spending was a .6percent reduction from the FY 01
Management Plan. He continued that the budget includes six new
positions, one fulltime and one temporary position funded with
general funds.
He outlined the highlights of the proposed budget as follow:
Executive Administration, Commissioner's Office.
Approved a travel allocation reduction by 3 percent
department-wide, realizing a decrement of $50,000.
Teaching and Learning Support, Special & Supplemental Services
Approved a $2,000,000 and a $6,645,800 increase in federal
receipt authority for Special Education and Title I Grant
programs that provide direct assistance to local school
districts.
Approved receipt for $100,000 Mental Health Trust Authority
funds to aid the transition of students with disabilities from
high school to the community.
Teaching and Learning Support, Quality Schools
Approved an increment request for $74,300 for the
Correspondence Program Review Program
Senator Wilken explained that there were now over 9,000 students
taking correspondence courses, which reflects tremendous growth
since the program's inception. He said $74,300 would cover the cost
of complying with federally mandated programs and would focus on
two pilot programs: one in Delta and one in Nenana. He said the
assessments of these programs would help determine whether other
correspondence programs could use these pilot programs.
Approved a $1,200,000 increase in federal receipt authority
for RightStart, Extended Day Kindergarten, and Academic
Intervention Coordinator programs.
Approved a $4,620,600 increase in federal receipt authority
for the Eisenhower, Innovative Education and Classroon Size
Reduction, and Teacher Recruitment and Retention programs that
provide direct assistance to local school districts.
Early Development, Child Nutrition
Approved a $1,075,000 increase in federal receipt authority to
reimburse school districts for increased freight costs for
shipping United States Department of Agriculture (USDA)
commodities ($75,000) and additional costs involved with the
free and reduced meals provided daily to students
($1,000,000).
Early Development, Child Care Assistance and Licensing
Approved a $3,873,500 and $1,717,000 increase in federal
receipt authority to offer Child Care Development Fund money
to low-income working families to help pay for local child
care.
Approved a $3,000,000 increase in Inter-agency (IA) Temporary
Assistance to Needy Families (TANF) receipts for Child Care
Assistance.
Approved a $2,000,000 increase in federal receipt authority
for Child Care Assistance.
Early Development, Head Start Grants
Recognized a $3,783,000 increase in federal receipts for the
expansion of the Head Start Program that will be available
directly to local Head Start managers.
Accepted a $100,000 Investment Loss Trust Fund (ILTF) increase
for local Head Start Match.
Early Development, Special Programs
Approved a $100,000 increase in federal receipt authority for
Sequenced Training for Early Childhood Professionals in
Alaska.
Approved a $475,000 increase in IA receipt authority for
EvenStart grants (Family Literacy).
Requested the Department of Education and Early Development to
consider the merits of the organizational structure proposed
by the House and implement the appropriate changes.
Education Support Services, District Support Services
Recommended a reappropriation of K-12 Support FY 01 lapse
funds in the amount of $350,000 for a District Cost Study
(language section). This is a one-time cost.
Commissions and Boards, Alaska State Council on the Arts
Approved an increment of $11,500, a 2.5 percent increase.
Kotzebue Technical Center, Kotzebue Tech Operations Grant
Eliminated the General Fund appropriation as directed in the
FY 00 Operating Budget Intent Language. This vocational
facility is eligible and will receive funding under the Alaska
Technical and Vocational Education program, established in
House Bill 289, Ch. 132, SLA 2000.
Alaska Vocational Technical Center
Accepted $634,200 increase in Receipt Support Services funds
for Rent Receipts, First Alaskan Foundation Grant, and
Certified Nurse Assistance programs.
Mt. Edgecumbe Boarding School
Approved a partial increment request for $131,100 for the
Dormitory Services and Management contracts.
Alaska Library and Museums, Library Operations
Approved an $98,700 increment for the Gates Foundation
Project.
Alaska Library and Museums, Museum Operations
Approved a $40,400 increase of Museum Grants to provide
grants to local museums.
Alaska Postsecondary Education Commission,
Student Loan Operations
Recommended the acceptance of $250,000 from Alaska Commission
on Postsecondary Education (ACPE) Dividend receipts for the
National Guard Continuing Education Benefits (language
section).
Alaska Postsecondary Education Commission,
Student Loan Operations.
Approved $63,100 increase in ACPE Dividend for increase costs
for the Washington, Wyoming, Alaska, Montana, Idaho Medical
Education Program (WWAMI).
Senator Wilken outlined some outstanding issues regarding daycare
and qualifications for daycare and transportation. Although the
transportation issue was not a charge of this subcommittee, Senator
Wilken expressed that support of the allocation of approximately
$50 million be adopted by the Senate Finance Committee to fully
fund pupil transportation in the FY 02 budget.
Senator Olson commented that it certainly was troubling to look at
withholding funding from the Kotzebue Technical Center, and he did
not see the advantage in not funding it, especially at a location
where training for pipeline jobs was available. Senator Olson added
that he had not been involved in earlier discussions about the
Technical Center and would like to know what agreements had been
made.
Senator Wilken responded he agreed about the programs the Technical
Center offered and gave some background information about the
subcommittee discussions on the University's Chukchi Campus and the
Kotzebue Technical Center. He continued that the two facilities are
a short distance from each other and perhaps the two could be
joined together to operate more efficiently without jeopardizing
any programs. He commented that there were a lot of resources in a
small amount of production and perhaps it could be more effective.
He said that this was the third year of discussions to advance this
theory.
Senator Olson commented that he was not sure "what deals were being
made," but he did not see how the two could be combined since they
has entirely different focuses. He voiced that the Chukchi College
had an academic environment while the Technical Center focuses on
vocational technical skills. He said that the two entities have
different goals.
Senator Wilken answered that he had been part of the discussions
the Committee has had prior to Senator Olson's participation on the
Finance Committee. Senator Wilken said he would be able to review
the matter with Senator Olson.
Department of Fish and Game
Senator Kelly, Chair
Senator Pearce
Senator Austerman
Senator Hoffman
Co-Chair Kelly reported that the subcommittee came in approximately
$37,000 under the Senate Majority determined allocation and
recommended the FY 02 funding for the Department of Fish and Game
at $30,719,000 in general funds and $127,759,400 in total funds. He
continued that this budget is an increase of $372,000 over the FY
01 budget and $10,513,900 over the FY 01 Authorized total budget.
However, it was a reduction of $275,000 in general funds from the
Governor's requested FY 02 budget.
Senator Kelly continued that the subcommittee fully funded the
Department's requests for the Division of Commercial Fisheries, the
Division of Sport Fisheries, the Division of Subsistence, State
Facilities Maintenance, and the Commercial Fisheries (Limited)
Entry Commission. He noted that the subcommittee had also funded
all second-year labor contracts.
Senator Kelly outlined changes the subcommittee had made to the
Governor's request:
Wildlife Conservation
In the Conservation and Reinvestment Act (CARA) Implementation
component, The Department requested $2,425,000 in new federal
funding for Conservation and Reinvestment Act implementation.
The subcommittee has proposed funding of $1,510,000 along with
intent language requesting that the Department of Fish and
Game seek approval of the Legislative Budget and Audit
Committee to receive and expend any additional federal
receipts in the event Conservation and Reinvestment Act
funding is reauthorized in Congress.
Administration and Support
In the Boards of Fisheries and Game, the Department requested
an increment of $76,700 in general funds. The subcommittee has
recommended funding of $56,700 in general funds, which equals
the amount of the reduction the Boards took in the FY 01
budget.
In the Advisory Committees, the Department requested an
increment of $45,000 in general funds. The subcommittee has
recommended funding of $15,000 in general funds, which equals
the amount of the reduction the Advisory Committees took in
the FY 01 budget.
Habitat
In the Habitat component, the Department increment request of
$225,000 in general funds for Oil and Gas Permitting & the
Kenai River Center has been denied.
Department of Community and Economic Development
Senator Kelly, Chair
Senator Pearce
Senator Torgerson
Senator Lincoln
Senator Kelly explained that the subcommittee recommended the FY 02
funding for the Department of Community and Economic Development to
consist of $41,767,300 in general funds and $147,835,500 in total
funds. He stated that this budget is an increase of $266,500
general funds and $14,759,100 total funds over the FY 01 Authorized
Department of Community and Economic Development budget. He stated
the subcommittee has reduced the Department's request by $454,800
in general funds.
Co-Chair Kelly said that the subcommittee fully funded the
Department's requests for Executive Administration and
Development, Municipal Revenue Sharing, Investments, the Alaska
Aerospace Development Corporation (AADC), Alaska Industrial
Development and Export Authority (AIDEA), Alaska Science and
Technology Foundation (ASTF), Alaska Seafood Marketing Institute
(ASMI), Banking, Securities & Corporations, the Division of
Insurance, Occupational Licensing, and Department of Community
and Economic Development State Facilities Rent. He continued that
the subcommittee had also funded all second-year labor contracts.
He noted that the subcommittee had updated the Executive
Administration Support Cost Allocation Plan at the request of the
Department.
Senator Kelly listed the changes the subcommittee had made to the
Department's request as follows:
Community Assistance & Economic Development
In the Community and Business Development component, the
Department request of a fund source change of $99,800 from
Rural Development Initiative funds to general funds has been
denied.
In the Community and Business Development component, the
Department request of $100,000 in general funds for an
Economic Development Administration planning grant has been
denied.
In the Community and Business Development component, the
Department requested $35,000 in general fund program
receipts for Made In Alaska and other miscellaneous
increases. The subcommittee has recommended funding of
$20,000 in statutory designated program receipts for the
miscellaneous increases.
In the Community and Business Development component, the
Department requested $20,000 in general fund program
receipts for the official state highway map. The
subcommittee has recommended full funding of $20,000 in
statutory designated program receipts.
Qualified Trade Association Contract
In the Qualified Trade Association Contract, the
subcommittee has recommended a reduction of $200,000 in
general funds. This will still fund the Contract at
$4,600,000 which is still $100,000 in state funds higher
than the Millennium Plan calls for.
Investments
In Investments, the subcommittee has recommended funding of
$43,000 in Rural Development Initiative Funds for
compensation for servicing loans. This is at the request of
the department.
Alaska Aerospace Development Corporation
In the AADC Facilities Maintenance component, the
subcommittee has recommended that in place of the language
section, the AADC receive $9,000,000 in AERO Receipt
authority from launch activities in the numbers section of
the budget.
Alaska Science and Technology Foundation
In ASTF, the subcommittee has recommended that in place of
the language section, the ASTF receive $1,500,000 in ASTF
Funds for grants in the numbers section of the budget.
AK Seafood Marketing Institute
In ASMI, the subcommittee has recommended that in place of
the language section, ASMI receive $700,000 in receipt
supported services to match the FY 01 carryforward.
Insurance
In Insurance Operations, the subcommittee has recommended an
increment of $10,000 in receipt supported services for the
yearly dues of the National Conference of Insurance
Legislators.
Regulatory Commission of Alaska (RCA)
In the RCA, the Department requested $352,900 in RCA
receipts for seven positions to deal with the increased
workload. The subcommittee has recommended funding of
$277,200 in RCA receipts for five of those positions.
Senator Leman asked if Co-Chair Kelly could explain why the Tourism
budget was $100,000 over the Millennium Plan, and was there a
reason that this budget was not reducing as rapidly as targeted.
Senator Kelly responded that, even with $100,000, the subcommittee
still came in under the spending limit agreed upon by the Senate
Majority.
Senator Leman queried "so one year after they agreed to the plan
they have come back" claiming to be unable to follow the plan.
Co-Chair Kelly surmised this to be the case.
Department of Health and Social Services
Senator Green, Chair
Senator Kelly
Senator Davis
Senator Therriault
Senator Green reported the Department of Health and Social Services
budget "was the largest single piece of the state budget", and it
was "awe inspiring". She commented that "100 percent of all
Alaskans' PFDs", would "not pay for this budget". She informed that
the subcommittee has presented a "very generous budget and came in
right at our cap" with a total budget of $470 million general funds
and $1.2 billion total funds, an increase of approximately $15
million in general funds and $100 million total funds.
Senator Green noted the changes in the Senate subcommittee's budget
as compared to the House of Representatives FY 02 budget as
follows: the inclusion of the Alaska Housing Finance Corporation
(AHFC) money for nurses' salaries was included in the fast-track;
$200,000 in general funds was restored to the public assistance
field services to ensure the maintenance efforts for Temporary
Assistance to Needy Families (TANF); all medical assistance fund
money was properly shown as a GF match; a $350,000 increase to fund
transcription services to free up approximately 20% of each social
workers' time; funding of $700,000 for the Infant Learning Program
(ILP) by shifting money from the alcohol drug abuse grant to the
infant program thereby fully restoring that program.; and a $40,000
increment to fund one position in the Vital Statistics staff.
Senator Green noted a request for $188,600 general funds for
Tobacco Prevention and Control in the Governor's request that the
subcommittee recommended against because it should be funded
through the Tobacco Settlement account instead of general funds.
She continued that with further clarification, the component could
be restored.
Senator Green informed that the subcommittee approved five of the
requested seven new positions with $100,000 general funds for
Community Health Emergency Service.
Senator Green continued that the subcommittee approved the transfer
approximately $423,000 from Statutory Designated Program Receipts
to the Alaska Psychiatric Institute (API).
Senator Green explained "the funding for all designated BRUs is
transferred to purchase services, state health services, alcohol
and drug abuse services, and community health grants with the
intent of this transfer to place all grants in the competitive
grant line for types of services to allow the Department to better
match the grant to the ability of the grantee to generate funds
from alternative sources including Medicaid and direct federal
grants."
Senator Green informed that the subcommittee learned that "many of
our sites across the state are receiving direct federal grants,"
"Indian Health Service money", Medicaid filings, and third party
payments, so that their budgets are being "supplemented"
significantly above state funding. She explained that this
currently benefits some agencies, but the subcommittee felt the
BRUs should be reallocated to assist smaller rural programs that
could benefit from additional funding.
Senator Green continued that the subcommittee supported the
following: 4 percent reduction in funding to Purchase Services
Family Preservation; 8 percent reduction in funding to State Health
Services Community Health Grants; 2 percent reduction in funding
for Alcohol, Drug and Abuse Services, a part of which went to fund
the ILP; $5,000 grant to help fund front line staff in rural
services programs, $3.25 million federal grant to Epidemiology.
Senator Green said that the Child Protection Legal Assistance
Program was relocated to the Department of Administration.
Senator Green shared that the subcommittee recommended a 1 percent
decrease to the Governor's request for Medicaid and emphasized that
the roll of Medicaid, Welfare and associated costs should be
seriously reviewed, as they are "the driver" of increasing costs to
the Health and Social Services budget. She continued that the
Medicaid Taskforce was working on how to control these costs and
alternative ways to provide health care, medical care, and
insurance more cost effectively.
Senator Green said the subcommittee also supports a request to fund
eleven different rural medical providers each with a minimum of a
$200,000 grant to adequately staff their offices.
Senator Wilken asked Senator Green if this ILP she spoke of was the
same one the Key Campaign spoke about on their recent visit.
Senator Green responded yes, that ILP had been funded with
general fund money.
Senator Hoffman voiced support for the funding of the Infant
Learning Program, but was concerned it received an increase at the
expense of the Alcohol and Drug Abuse programs. He urged the
Committee to rethink the logic of this funding since the State
suffers from such rates of high alcohol and drug abuse.
Senator Hoffman also asked, regarding the competitive grants, if
there had been a reduction in past grants to Anchorage and
Fairbanks.
Senator Green responded no, that Anchorage and Fairbanks "are
competitive grant providers themselves." She continued that
Anchorage and Fairbanks "receive a block grant" and save the state
money because the state does not have to evaluate those competitive
grants.
Senator Hoffman concurred that competitive grant providers save the
state money, but so do other non-profit organizations. He voiced
his concern that some groups seem to be "punished for going out and
getting additional federal dollars." He stated "the reduction of
the past few grants and only in Rural Alaska, does not seem fair to
me and then putting them into one BRU on a competitive basis also
doesn't make sense."
Senator Hoffman reiterated that this "budget is treating Rural
Alaska unfair" and that having no reduction in the urban pass-
through programs in Anchorage and Fairbanks puts the "balancing of
this budget on the backs of Rural Alaska," and "at the expense of
the alcohol and drug program."
Senator Green acknowledged what Senator Hoffman had said, but said,
nonetheless, in a competitive grant process, a grant has just as
much potential for additional funds as a detriment. She continued
that the funding in those grant lines has been essentially the same
since 1981, with perhaps one reduction. She noted that it is
difficult to determine whether an "arbitrary figure was there to
begin with" or the funding was based on actual costs. She said,
however, that the competitive grant process allows for new people
to come in and compete, and assesses no-growth programs. She said
there is "interesting information" available on who has been able
to attract new funding.
SFC 01 # 57, Side B 10:52 AM
Senator Green continued some groups have acquired sophistication in
their funding endeavors while other groups have not. She voiced
concern that this imbalance should be addressed.
Senator Hoffman said he talked to the Chief Executive Officer of
the Yukon Kuskokwim Health Corporation who said that, as a result
of these program cuts, there would be direct cuts in services.
Senator Hoffman opined there would be more reductions of services
in rural Alaska, and he felt the whole state should be treated
equally.
Senator Green explained that because only two communities
(Anchorage and Fairbanks) oversaw their own grants, every other
area in the state was in the competitive grant process and were
subject to the same scrutiny. She expanded that through the grant
process, there could be some efficiencies in funding through a
department or each BRU.
Senator Hoffman remarked that all areas, both urban and rural,
including Anchorage and Fairbanks, should be in the same pool, with
"one pot of funds and let them all compete equally for those
dollars. That would be fair, and then you would see efficiencies".
Office of the Governor
Senator Donley, Chair
Senator Halford
Senator Kelly
Senator Olson
Senator Pearce
Senator Donley said that the Governor's Office budget target
established by the Senate Majority is $15,536,800 general funds and
the Senate subcommittee's recommendation is the same as the House
of Representatives recommendation. He said the main issue was how
to deal with $12.85 million in federal funds from the Conservation
and Reinvestment Act (CARA) He said that, like the House
subcommittee, the Senate subcommittee recommended $100,000 of these
funds be designated for the Governor's Office for determining how
to use the CARA money.
He continued that the Division of Elections was another area of
focus. He explained that since it was not an election year, there
was a reduction of five temporary positions and one full time
position in the Human Rights Commission, but there was the addition
of fourteen temporary positions in Elections due to redistricting.
Senator Donley stated that a major change in this budget was the
transfer of the International Trade and Market funding of
approximately $1 million, from the Governor's Office to the
Department of Community and Economic Development.
Legislature
Senator Donley, Chair
Senator Kelly
Senator Hoffman
Senator Pearce
Senator Halford
Senator Donley said the subcommittee's recommendation of
$37,287,000 in general funds for this budget is the same as that of
the House. He informed that this budget consisted of zero federal
funds and minor transfers and adjustments within the budget. He
detailed that the largest of these adjustments was the addition of
$250,000 of receipts to Legislative Audit to formalize a
reimbursable services agreement (RSA) with the Department of
Administration for auditing executive branch agencies. He continued
that the next largest one was the transfer of interagency receipts
of $60,000 in Administrative Services for increased print shop
receipts. He said the subcommittee added one permanent full-time
position to Administrative Services for data processing and one
equivalent position for Legislative Council. He said there was a
transfer of $11,000 for dues increases for NTSL and Energy Council.
He summarized that there were a few other transfers that are less
than $20,000.
Co-Chair Donley announced that Senator Leman's report on the
Department of Natural Resources, and Senator Ward and Senator
Austerman's committee reports would be heard the next day.
University of Alaska
Committee of the Whole
Co-Chair Donley presented the close out of the University of Alaska
budget. He informed that the Committee's recommendation was the
same as the House recommendation of $193,500,000 in General Funds.
He said that within the budget, the Committee recommended a change
to the Legislative Intern Program at the request of the University.
He continued that the University wished to remove the Intern
Program as a line item in the budget to be instead handled
internally. Co-Chair Donley stated that the Committee supports that
request.
Co-Chair Donley clarified that on the FY 02 Senate Subcommittee
worksheet, under University of Alaska Budget Reductions/Additions-
Systemwide, General Fund column, the Committee recommendation
amount would change from $9,227,100 to $9,363,100. Co-Chair Donley
shared that this budget reflects a 5.08 percent increase over last
year.
Senator Wilken questioned information referring to the Post
Secondary Education allocation of a $2 million dividend that the
House had accepted, but that was not included in the Senate
Committee recommendations. He asked how this would impact the
overall increase the University would receive over FY 01.
Co-Chair Donley replied the recommendation before the Committee is
a $9.3 million general fund increase.
Senator Wilken said he hoped to do more for the university in
response to the pleas of many people and University President Mark
Hamilton's mission to make it a "university system the state can be
proud of."
Senator Green made a motion to adopt the university subcommittee
report.
Senator Austerman objected to state for the record that he felt the
same as Senator Wilken. Senator Austerman said he plans to
readdress any concerns he might have about the University budget
when the budget comes back before the Committee.
There were no further objections and the University subcommittee
report was ADOPTED.
Co-Chair Kelly moved to adopt the other previously discussed
subcommittee reports of that day.
Co-Chair Donley stated there being no objections, the subcommittee
reports were ADOPTED.
Senator Wilken provided the information on the four positions in
the Alaska Court System Budget that Senator Leman had asked about
earlier. He said the positions consisted of one project manager for
the Mental Health Court funded entirely by the Mental Health Trust,
and an attorney and two paralegals for the Anchorage pro se center
fully funded by Federal Funds.
Senator Wilken thanked all of the people of the various departments
and his staff who had worked hard, cooperatively, and respectfully
with his subcommittees on the budgets.
Co-Chair Donley thanked the Committee and the staff for their
efforts on all the budgets.
ADJOURNMENT
Co-Chair Dave Donley adjourned the meeting at 11:06 AM
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