Legislature(2019 - 2020)SENATE FINANCE 532
02/21/2019 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB20 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 20 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
SENATE FINANCE COMMITTEE
February 21, 2019
9:01 a.m.
9:01:51 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Peter Micciche
Senator Donny Olson
Senator Mike Shower
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Donna Arduin, Director, Office of Management and Budget;
Samantha Gatton, Administrative Services Director,
Department of Fish and Game, Office of Management and
Budget; Fabienne Peter-Contesse, Administrative Services
Director, Department of Natural Resources, Office of
Management and Budget; Jeff Rogers, Administrative Services
Director, Department of Environmental Conservation, Office
of Management and Budget; Senator Cathy Giessel.
SUMMARY
SB 20 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 20 was HEARD and HELD in committee for further
consideration.
DEPARTMENTAL REVIEW
SENATE BILL NO. 20
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund; and providing
for an effective date."
9:07:21 AM
DONNA ARDUIN, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
discussed the presentation, "State of Alaska; Office of
Management and Budget; FY 2020 Governor's Amended Budget;
Presentation to the Senate Finance Committee; February 21,
2019; Director Donna Arduin" (copy on file).
SAMANTHA GATTON, ADMINISTRATIVE SERVICES DIRECTOR,
DEPARTMENT OF FISH AND GAME (DFG), OFFICE OF MANAGEMENT and
BUDGET, looked at slide 3, "FY 2020 Budget: Department of
Fish and Game."
Co-Chair Stedman asked for definitions about the budget
definitions.
Ms. Gatton replied with those definitions. She continued to
discuss slide 3.
9:10:43 AM
Ms. Gatton addressed slide 4, "FY 2020 Budget: Department
of Fish and Game":
Remove projects funding with Charter Revolving Loan
funds (-$997.0 GF)
Adjust the Scope of Management of Special Areas
Wildlife Viewing (-280.0 GF)
Statewide Support - Executive Branch 20 percent Travel
Reduction
Co-Chair Stedman queried a definition of a special program
area, and its impact.
Ms. Gatton replied that it was roughly 3000 acres in the
state. She used the example of the Mendenhall Refuge or the
Palmer Hay Flats. She noted that there were also
sanctuaries and critical habitat areas.
Co-Chair Stedman queried the expected impact in the special
areas.
Ms. Gatton replied that the fees collected for the special
areas were deposited into the Fish and Game funds. She
stated that the fees were used to leverage Pittman
Robertson and other federal funding.
Senator Bishop wondered whether any Pittman Robertson
funding would be returned to the federal government.
Co-Chair Stedman asked for a definition of Pittman
Robertson fund, and any current information on the current
budgets.
Ms. Gatton replied that Pittman Robertson funding was the
excise tax on firearms and ammunitions. The federal Pittman
Robertson Act was created to provide funds to each state to
manage animals in their habitats. The funds could not be
diverted to other uses.
9:15:46 AM
Co-Chair Stedman remarked that the issue would be addressed
in subcommittee.
Co-Chair von Imhof noted that the 50 percent travel
reduction was in every department. She wondered how the
travel reduction would decrease the ability to travel to
check licenses.
Ms. Gatton replied that the Department of Fish and Game
(DFG) did significant traveling. She explained that there
was an examination of how the department organized and or
developed its travel budget. The department believed that
it could reduce travel budget.
Senator Hoffman queried the structural changes were
proposed by the administration in the areas of habitat and
subsistence.
Ms. Gatton replied that there were three full-time
positions reduced in the budget. She explained that two of
the positions were the Subsistence Director and the Habitat
Director. She explained that there was an examination of
how to support those sections and identify how those would
be reported to the commissioner's office.
Senator Hoffman felt that those questions needed to be
answered before the budget request.
Senator Shower stressed that there was a constitutional
mandate for subsistence. He understood that there were
positions that could be eliminated, but felt that the
subsistence position was critical to many Alaskans.
9:20:30 AM
Senator Olson remarked that there were many phone calls
about subsistence and remarked that losing two directors
were being put into personnel who already had other duties.
Ms. Gatton replied that those positions were transferred
out the budget, but there were no duties associated with
those divisions that would go to OMB.
Senator Olson wondered who those programs would report to.
Co-Chair Stedman stated that if she did not know the answer
she could report back to the committee.
Senator Wielechowski asked whether there were any new
positions in the department.
Ms. Gatton replied in the negative.
Co-Chair Stedman noted that there were hatcheries that
received funding from the state, and wondered whether there
were any changes in the budget.
Ms. Gatton replied in the affirmative, and there were
projects for the hatcheries in the Capital Budget.
Co-Chair Stedman remarked that the $3.4 million and $1.8
million in the budget were considered capital funds.
Ms. Gatton responded that there was still operating budget,
but she stated that there would be additional money
associated with those hatcheries.
Co-Chair Stedman wondered whether the shooting ranges would
be in the budget.
Ms. Gatton replied in the affirmative.
Senator Wielechowski recalled that there was legislation
that raised the fishing license fees to pay for the
hatcheries, and wondered when that was set to expire.
9:25:01 AM
Co-Chair Stedman put historic context around the
hatcheries.
Ms. Gatton agreed to provide that information.
Senator Bishop asked that the department examining making
sport fish sale from the hatcheries.
Co-Chair Stedman asked for a definition.
Senator Bishop did not want to pontificate.
Co-Chair Stedman wanted to understand.
Senator Bishop shared that there were individuals who had
applied to the hatcheries to purchase fish, and have been
denied. The department must approve the sale. He asked that
the department examine that new revenue.
Senator Wilson queried a quantification of how much of the
Dingell Johnson funds were lost due to the lack of state
matching funds in the year prior.
Co-Chair Stedman felt that the question had already been
addressed.
Senator Wilson explained that it was different for fund
source.
Ms. Gatton agreed to provide that information.
Senator Wielechowski noted the transfer of a division
director to the Governor's Office. He requested a list of
all the positions that were to be transferred out of Juneau
to other parts of the state.
Co-Chair Stedman stated that the request could be for the
OMB director. He also requested a total employee count
reduction.
Senator Hoffman remarked that the budget probably had more
economic impact to the state than most of the other
departments. He queried the impact of the proposal if
implemented on the commercial fishing industry, and whether
the economic engine would be maintained throughout the
state.
9:30:59 AM
Ms. Gatton replied that the $997,000 of removing projects
funding was specifically for commercial fisheries. She
noted that some of the projects would not occur, and other
projects would be swapped. There was an examination of
partnerships with other entities.
Senator Hoffman asked what entities that were looked at for
cooperation.
Ms. Gatton agreed to provide that information.
Senator Hoffman stated that the receipts were given
voluntarily. He noted that his region had serious concerns
that the budget would not provide the financial means
because of the profits from their resource may have a
reduction.
Senator Micciche felt that the impact of sport and
commercial fishing and hunting and he would examine that
interplay.
Senator Shower wondered whether the Alaska National
Interest Lands Conservation Act (ANILCA) coordinator was
eliminated in the budget.
Ms. Gatton replied that she did not believe that was in the
DFG budget.
9:36:58 AM
AT EASE
9:37:06 AM
RECONVENED
9:37:16 AM
FABIENNE PETER-CONTESSE, ADMINISTRATIVE SERVICES DIRECTOR,
DEPARTMENT OF NATURAL RESOURCES, OFFICE OF MANAGEMENT and
BUDGET, highlighted slide 6, "FY 2020: Department of
Natural Resources."
Co-Chair Stedman wondered whether there were 25
terminations in the future.
Ms. Peter-Contesse replied that there were 25 people in the
36 positions. She furthered that, in addition to those,
there were seven positions that would be transferred, but
five of those were filled positions. She explained that
there was an additional five people that would be affected
by the 2020 budget. She stated that there was a total of 30
people that would be either transferred to a different
location or laid off.
Co-Chair von Imhof felt that it was the clearest and most
comprehensive presentation. She remarked that the graph
showed a pattern, and there were varying degrees of
explanation. She asked that the graph include totals and
changes.
Ms. Peter-Contesse explained that there was more
granularity in the subcommittees. She felt that presenting
at a high level was a better use of time.
Co-Chair von Imhof felt that she did not want to use a
calculator.
Co-Chair Stedman shared that he had been through many years
of financial presentations.
Ms. Peter-Contesse continued with her presentation.
9:47:57 AM
AT EASE
9:48:18 AM
RECONVENED
Ms. Peter-Contesse addressed slide 7, "FY 2020 Budget:
Department of Natural Resources Snapshot ($ Thousands)":
Recorder's Office Consolidation and Efficiencies (-
408.0 GF and -3 PFT, -2 PPT
Increase Wildland Fire Suppression Activity Base
Budget (+$8,00.0 GF)
Reduce Lower Priority Programs in the Division of
Agriculture (-$1796.0 GF and -15 PFT, -4PPT0
Delete Agriculture Revolving Loan (-$421.7 GF and -2
PFT)
9:54:53 AM
Ms. Peter-Contesse continued to discuss slide 7:
Consolidate Parks Administrative Staff (-$150.0 GF and
-1 PFT, -2 PPT0
Statewide Support - Executive Branch 50 percent Travel
Reduction (-$354.7 GF)
9:55:27 AM
Co-Chair Stedman wondered why Anchorage was chosen rather
than Juneau for storing the historical documents of the
state.
Ms. Peter-Contesse replied that Anchorage had the majority
of the Recorder's Office footprint and the physical
documents.
Co-Chair von Imhof noted that there were many more modern
electronic documents. She felt that the documents could be
stored at any location, and commended the efforts. She
wondered whether there was significant data storage. She
wondered whether there were conversations about the future
of storage.
Ms. Peter-Contesse responded that they were required to
keep the original files, which were the large maps for
municipalities. She remarked that there were many files
that did not have physical files. She shared that they kept
microfiche as a backup, which is the national standard for
backing up recorded data. She remarked that there was a
full floor of staff and files, which was a major footprint
of the first floor of the Atwood Building in Anchorage.
Senator Micciche wondered whether there was an evaluation
of the cause and effect. He wanted to focus on the
agricultural priorities. He felt that it was a tough time
to remove $3.2 million in the state agricultural sector. He
queried the evaluation of that effect.
Ms. Peter-Contesse replied that it was being considered.
She stressed that it was important to look at the core
mission of the Department of Natural Resources (DNR). She
felt that many of the cuts were to good programs, but it
was important to consider the state's fiscal situation, and
whether it was the state's job to support the programs.
10:00:20 AM
Senator Olson felt that the private industry would not take
up the slack unless there was a profit motive. He asked
whether there were private companies to pick up the slack.
Ms. Peter-Contesse was not aware of specific business other
that conversations in the peony industry.
Senator Wilson wondered whether the state's lease
agreements in the buildings would be utilized for other
departments.
Ms. Peter-Contesse replied that the savings relied with the
$408,000 reduction did not include future lease cost
savings. She explained that there were situations where the
leases were up before the beginning of FY 20, and there may
be a need to either buyout or negotiate the leases. She
anticipated additional reductions in lease savings.
Senator Wilson looked at the State Agricultural
Veterinarian Program, and wondered whether the cut risked
any life or safety issues.
Ms. Peter-Contesse replied in the negative. She explained
that the regulatory requirements of having a state
veterinarian resided in the Department of Environmental
Conservation (DEC), and they were continuing the program.
Senator Bishop felt that there would be a spirited
conversation about the Recorder's Office, but remarked that
the small miners Fairbanks interior would not be happy
about the move. He stressed that not all small miners had
the ability to access a computer.
Co-Chair von Imhof remarked on the broadband capability,
and wondered whether there were conversations with title
companies for the impacts. She wondered whether DNR could
do a courtesy scan for those miners. She noted that there
may be unintended consequences that with additional
investment in smaller areas might provide the services.
Ms. Peter-Contesse replied that there were conversations
and work with title companies. She stated that almost all
title companies were e-recording. She noted that DNR had
continued outreach to the Alaska Miner's Association to
attempt to reduce the impact for those people who did not
have computer access.
Senator Shower echoed Co-Chair von Imhof's comments and
thanked the presenter for their format. He wondered whether
the important positions had been eliminated.
Ms. Peter-Contesse replied that there was a position that
would not be eliminated.
10:07:55 AM
JEFF ROGERS, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF ENVIRONMENTAL CONSERVATION, OFFICE OF MANAGEMENT and
BUDGET, looked at slide 9, "FY 2020 Budget: Department of
Environmental Conservation."
10:11:15 AM
Mr. Rogers discussed slide 10, "FY 2020 Budget: Department
of Environmental Conservation Snapshot ($ Thousands)":
Repeal Ocean Ranger Program (-$3,426.0 Other)
Withdraw Funding for Dairy Regulation (-$179.6 GF and
-1 PFT)
Remove Economist Position (-$124.3 GF and -1 PFT)
Statewide Support - Executive Branch 50 percent Travel
Reduction (-$167.5 GF)
10:16:20 AM
Senator Bishop asked how many gallons of milk the dairy
produced in a year.
Mr. Rogers agreed to provide that information.
Senator Olson wondered whether there was protection against
antimicrobial diseases.
Mr. Rogers replied that the dairy would not be able to
continue operating a system of commercial sales without the
state operating a dairy program under the Pasteurized Milk
Ordinance. He stated that DEC had regulations that permit
the distribution through cow share programs.
Senator Wielechowski requested a list of the areas that the
state had been given primacy.
Mr. Rogers replied that he did not have a list of the costs
of primacy permits. He agreed to provide further
information.
Co-Chair Stedman stressed that he would like the list of
primacy permits. He recalled the Potential For Shellfish
testing, and requested a status report on that issue.
Mr. Rogers replied that there was no proposed action on
shellfish testing in the FY 20 budget, and the program
would continue.
Senator Micciche requested details and plans for the Spill
Prevention and Response (SPAR) fund, because less than a
penny was funded through Alaska's fuel sales.
Mr. Rogers responded that DEC had worked with Senator
Micciche to engineer a refined fuel surcharge that would
fund SPAR. The Department of Revenue made a number of
oversights in the fiscal note, which included exemptions
that require assessment.
10:21:36 AM
Senator Wielechowski looked at the Ocean Ranger Program. He
understood that the cruise ship paid a four dollar per
berth fee. He wondered whether the fees that were paid
matched the expenses of the program, or other expended
general funds.
Co-Chair Stedman further wondered whether that program was
part of the deficit issue.
Mr. Rogers replied that DEC received four dollars per berth
for ever cruise ship in Southeast Alaska. He stated that
DEC received an excess of $4 million in Ocean Ranger
receipts. He stated that DEC only had legislative authority
to spend approximately $3.8 million of those receipts. He
stated that of the $3.8 million, $3.4 million funds the
Ocean Ranger Program. He remarked that previous actions by
the legislature had also diverted a certain portion of
receipts to other marine adjacent activities.
Co-Chair Stedman asked whether the revenue received was DGF
for the program.
Mr. Rogers replied in the negative. He stated that the
revenue was considered "other."
Co-Chair Stedman asked whether the elimination of the
program helped with the deficit.
Mr. Rogers replied that it did not.
Co-Chair Stedman felt that the legislature needed to
prioritize the efforts, and felt that there should not be a
focus on the items that would not fix the problem.
SB 20 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:25:32 AM
The meeting was adjourned at 10:25 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| FY2020 Gov Amend Budget to SFC 2.21.19 FG DNR DEC.pdf |
SFIN 2/21/2019 9:00:00 AM |
SB 20 |