HOUSE BILL NO. 100 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; 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." (Copies of amendments will be on file with the House Finance Committee Secretaries Office, Capital, Room 519, until the end of the Nineteenth Alaska State Legislature. Copies of the amendments will be found at the Legislative Library after the end of the Nineteenth Alaska State Legislature.) DEPARTMENT OF EDUCATION Representative Martin MOVED to adopt Amendment DOE-1 (copy on file). The amendment adds $80.0 thousand dollars to the Alaska Maps for Alaska's Students project to cover printing costs. The appropriation would be provided by the deletion of designated grant funding for the Institute of Alaska Native Arts, Museum of Alaska Transportation and Industry and the NANA Museum of the Arctic. Representative Brown questioned if this item should be included in capital projects funding since it is a one time appropriation. Representative Martin reiterated that the identified designated grants would be zeroed and transferred to the Alaska Maps for Alaska's Students project out by the amendment. Representative Kohring spoke against the amendment. Co-Chair Hanley pointed out that school districts are not prevented from purchases the maps. Representative Brown suggested the Committee approve authorization for general fund program receipts to fund printing costs. She MOVED to divide the question. Representative Mulder objected. Representative Brown WITHDREW her motion to divide the question. A roll call vote was taken on the MOTION to adopt Amendment 2 DOE-1. IN FAVOR: Martin OPPOSED: Brown, Grussendorf, Navarre, Kelly, Kohring, Mulder, Parnell, Therriault, Foster, Hanley The MOTION FAILED (1-10). Representative Kohring MOVED to adopt Amendment DOE-2 (copy on file). He explained that the amendment would give the Alaska State Council on the Arts the authority to use their appropriation of $144.0 thousand dollars to access federal funding. He noted that up to $675.3 thousand dollars in federal funds are available. He acknowledged that it is unlikely that the entire federal match will be accessed at the current appropriation level. There being NO OBJECTION, it was so ordered. Representative Grussendorf MOVED to adopt Amendment DOE-4 (copy on file). The amendment would restore $414.0 thousand dollars to the Kotzebue Technical Center and delete $414.0 thousand dollars from Correspondence Study-State. He argued that the reduction would not harm Correspondence Study and emphasized that the Kotzebue Technical Center needs the funding to function. Representative Navarre suggested that the Correspondence Study component would be negatively impacted. Representative Kohring observed that there is not sufficient general fund dollars in the Correspondence Study component to fund the amendment. He pointed out that the majority of funding in this component is foundation formula funding. He stated that there is only $59.8 thousand dollars in General Funds in this component. DARBY ANDERSON, SUPERINTENDENT, ALYESKA CENTRAL SCHOOL, DEPARTMENT OF EDUCATION testified that there are 2,000 students served by the Correspondence Study program. She stated that personnel costs support teachers and staff based primarily in Juneau. The average teacher/pupil ration in the Correspondence Study program is 67 to 1. The average cost is $2.4 thousand dollars per student as opposed to a state average of $7.9 thousand dollars per student. Representative Martin spoke in support of the Correspondence Study program. Representative Kohring maintained that removal of the funding would have a serious impact. A roll call vote was taken on the MOTION to adopt Amendment DOE-4. 3 IN FAVOR: Grussendorf, Foster OPPOSED: Brown, Navarre, Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley The MOTION FAILED (2-9). Co-Chair Foster MOVED to adopt Amendment DOE-3 (copy on file). He noted that the amendment would restore $200.0 thousand dollars for the Kotzebue Technical Center. He explained that $75.0 thousand dollars would be appropriated from a reduction in the Commissioner's Office in the Department of Health & Social Services and $125.0 thousand dollars would be appropriated from a reduction in the Correspondence Study component, Department of Education. Representative Brown MOVED to AMEND Amendment DOE-3 to the Correspondence Study component to $59.8 thousand dollars. She pointed out that this is the total amount of General Funds left in the Correspondence Study component. There being NO OBJECTION, it was so ordered. Representative Martin spoke in support of continuing funding to the Correspondence Study component. Co-Chair Foster MOVED to delete the reduction of $59.8 thousand dollars from Correspondence Study. JANET CLARK, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES spoke in opposition to Amendment DOE-3. She emphasized the need to track federal changes for welfare reform and block grants. A roll call vote was taken on the MOTION to adopt Amendment DOE-3. IN FAVOR: Brown, Grussendorf, Navarre, Kelly, Foster OPPOSED: Kohring, Martin, Mulder, Parnell, Therriault, Hanley The MOTION FAILED (5-6). Representative Grussendorf MOVED to adopt new Amendment DOE- 5 (copy on file). He explained that the amendment would delete $69.1 thousand dollars from Boarding Home Grants and appropriate $69.1 thousand dollars to Mt. Edgecumbe Boarding School. He noted that there are 3 students for every available position in the Mt. Edgecumbe Boarding School. Co-Chair Hanley noted that the FY 96 proposed level is $100.0 thousand dollars above FY 95, but $69.0 thousand dollars below Governor Knowles' FY 96 request. 4 KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF EDUCATION testified that the transfer would be appropriate. She stated that $189.5 thousand dollars would remain in the Boarding House component. She estimated that this would be sufficient to meet the needs of the component. There being NO OBJECTION, Amendment DOE-5 was adopted. Representative Navarre HELD Amendment DOE-6 (copy on file). Representative Brown MOVED to adopt Amendment DOE-7 (copy on file). Co-Chair Hanley OBJECTED. Representative Brown stated that the amendment would add $75.7 thousand dollars to the WICHE Student Exchange program by reducing the Correspondence Study program by $59.8 thousand dollars and Administrative Services by $15.9 thousand dollars. She questioned if the $59.8 thousand general fund dollars could be replaced by program receipts. Ms. Anderson explained that the $59.8 thousand dollars in General Funds are in the Correspondence Study component as a result of contract negotiations. She stressed that this reduction would result in the loss of at least one teaching position. She stated that this would be a significant loss. Representative Martin spoke in opposition to the amendment. (Tape Change, HFC 95-69, Side 2) JOE MCCORMICK, JOE MCCORMICK, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION gave a brief history of the WICHE program. He stated that approximately 1,079 Alaskan students have benefited from the program in medical and health related professions. He stressed that the proposed funding level would result in the continuation of the program for existing students only. Representative Brown noted that 735 undergraduates are participated in 1994. Mr. McCormick pointed out that WICHE eligible students are given preferential enrollment. He noted that only 30 of 125 eligible students were funding in FY 95. He emphasized that the program recognizes that Alaska will never have the educational opportunities of larger states. A roll call vote was taken on the MOTION to adopt Amendment DOE-7. IN FAVOR: Brown, Grussendorf, Navarre, Mulder OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault, Foster, Hanley 5 The MOTION FAILED (4-7). Representative Grussendorf MOVED to RESCIND the Committee's action in adopting Intent Language DOE-1 (copy on file). The intent states that the "Mr. Edgecumbe school be given notice that funding for the school will not be provided past FY 96." Representative Kohring OBJECTED. Representative Kohring WITHDREW his objection. There being NO OBJECTION, Letter of Intent DOE-1 was rescinded. A roll call vote was taken on the MOTION to adopt Intent Language DOE-1. Representative Martin spoke in support of the continuation of funding for Mt. Edgecumbe. Representative Brown suggested that telecommunications be utilized when possible. IN FAVOR: Therriault OPPOSED: Brown, Grussendorf, Navarre, Kelly, Kohring, Martin, Mulder, Parnell, Foster, Hanley The MOTION FAILED (1-10). DEPARTMENT OF HEALTH AND SOCIAL SERVICES Representative Therriault MOVED to adopt amended Amendment HSS-1 (copy on file). Representative GRussendorf OBJECTED. The amendment would transfer $77,176 thousand dollars from the Alcohol and Drug Abuse Services and $33.2 from the Department of Community and Regional Affairs to created a separate BRU for the Fairbanks Native Association. Representative Grussendorf pointed out that the amendment would created a designated grant and may take funds away from rural areas. Representative Therriault spoke in support of the amendment. A roll call vote was taken on the MOTION to adopt Amendment HSS-1. IN FAVOR: Kelly, Kohring, Mulder, Therriault, Foster, Hanley OPPOSED: Brown, Grussendorf, Navarre, Parnell The MOTION FAILED (4-6). Representative Brown MOVED to adopt Amendment HSS-2 (copy on file). She explained that the amendment would use the Mitigation Account to fund $2.0 million dollars for Medicaid Non-Facility, Department of Health & Social Services. She stressed that the amendment would fund adult Medicaid services for dental, speech therapy, occupational therapy, 6 vision examinations, eye glasses, hearing aids and chiropractors. She argued that providing these services is cost effective. She reiterated that the Mitigation Account is used to subsidize gas station and other businesses required to clean up hazardous materials. JOHN BARNETT, EXECUTIVE DIRECTOR, BOARD OF STORAGE TANK ASSISTANCE testified that only 29 percent of eligible tanks are in gas stations. He maintained that most of these facilities are small and Alaskan owned. He emphasized the need to maintain the program. He stated that 132 sites have been cleaned or are in the process of being cleaned. He discussed applications and their ranking. He pointed out that 15 of the current clean up sites are operating ground water recover systems to restore drinking water supplies. He pointed out that some sites cost $500.0 thousand dollars. Banks will not finance contaminated site clean up. He noted that the program is spread throughout the state. Representative Therriault noted that 40 percent of the grants are within the Anchorage area. He explained that money in the Mitigation Account not appropriated to the Storage Tank Assistance Fund is transferred in 20 (a) of the front section to the Hazardous Substance Release Prevention Account. Representative Navarre expressed support and acknowledged the need for the Storage Tank Assistance Program. He stressed that there is a need for basic preventive services in the Medicaid program. He suggested that the Storage Tank Assistance program could be funded by a .01 cent fuel tax. Representative Brown noted that the owner has the responsibility of complying with water laws and not polluting. She observed that most states fund similar programs through a fuel tax. Mr. Barnett noted Alaska is the only state that has a direct appropriation to fund fuel clean up programs. Representative Brown noted that a homeowner who had a leaking tank would not be eligible unless the tank was over 1,100 gallons. She stressed that there is no funding source other than General Funds. Ms. Clarke explained that the Medicaid budget serves 100,000 thousand Alaskans. The amendment would restore seven optional services for 15,000 Alaskans. Representative Martin expressed concern that the amendment institutes major changes. Representative Brown stressed that $2. million dollars would be left in the Storage Tank Assistance Fund. Representative Parnell emphasized that the programs are 7 unrelated. Representative Brown argued that the whole budget should be considered and shifts in priorities allowed. A roll call vote was taken on the MOTION to adopt Amendment HSS-2. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley The MOTION FAILED (3-8). DEPARTMENT OF LABOR Representative Brown MOVED to adopt Amendment LAB-1 (copy on file). Representative Mulder OBJECTED. Representative Brown explained that the amendment would add $302.8 thousand dollars from the Mitigation Account to the Department of Labor, Occupational Safety and Health. The amendment would also authorize $188.1 thousand dollars in general fund program receipts. (Tape Change, HFC 95-70, Side 1) Representative Mulder spoke in opposition to the amendment. He maintained that offices will not be closed across the state. He observed that all remaining general fund dollars are federally matched. ARBE WILLIAMS, DIRECTOR, DIVISION OF ADMINISTRATION, DEPARTMENT OF LABOR stated that the Department will attempt to keep offices open. She could not guarantee that offices will not be closed. She explained that the $188.1 thousand dollars in program receipts were new. The Department planned to sell federal regulations bought at a 25 percent discount. She noted that the reduction in program receipt authority will prevent them from reselling federal regulations. Representative Mulder stated that program receipts were reduced in order to remain under the Department's cap. He added that the program receipts were seen as an expansion. Representative Brown summarized that the reduction will delay response of complaints from 10 to 30 days. Ms. Williams stated that less serious complaints could be delayed as long as 3 months. She added that state requirements which compel the Department to have jurisdiction over businesses with fewer than 10 employees will not be met. 8 Representative Mulder stressed that the Subcommittee felt that the reduction was the least harmful way to meet the cap. A roll call vote was taken on the MOTION to adopt Amendment LAB-1. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley The MOTION FAILED (3-7). Representative Brown WITHDREW Amendment LAB-2 (copy on file). She noted that Representative Martin has a similar amendment under the Department of Natural Resources. The amendment would have added $80.0 thousand dollars for Labor Market Information. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Representative Mulder MOVED to adopt Amendment CED-1, on behalf of Co-Chair Foster (copy on file). He explained that the Subcommittee reduced Alaska Rural Development Assistance grants (ARDORs) by approximately $16.0 thousand dollars each. This amount was transferred to the Alaska Tourism Marketing Council. He noted that the amendment would transfer the funding back to the ARDOR program. Representative Kelly spoke against the amendment. He stressed that ARDOR's are tied to private industry. Representative Navarre spoke in support of the amendment. He maintained that ARDORs are effective. He stressed that ARDORs are economic development programs for Alaskans that are working. Representative Brown noted that she is an ex-officio member of the Anchorage Economic Development Corporation which is the ARDOR for Anchorage. A roll call vote was taken on the MOTION to adopt Amendment CED-1. IN FAVOR: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley OPPOSED: Brown, Grussendorf, Navarre Co-Chair Foster was absent from the vote. The MOTION FAILED (3-7). 9 Representative Brown MOVED to adopt Amendment CED-2 (copy on file). She explained that the amendment would fund Market Surveillance in the Division of Insurance through program receipts collected from insurance fees. Representative Kelly maintained that the program represents an expansion in bureaucracy. GUY BELL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT explained that fees by the Division of Insurance are adjusted to cover operating costs. He added that the Division feels that collections of premium tax would be maximized by increased scrutiny. A roll call vote was taken on the MOTION to adopt Amendment CED-2. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley Co-Chair Foster was absent from the vote. The MOTION FAILED (3-7). Representative Brown MOVED to adopt Amendment CED-3 (copy on file). She reiterated her conflict of interest as an ex- officio member of the Anchorage ARDOR. She explained that the amendment would provide an net savings to the General Fund of $1.0 million dollars by restructuring the programs within the Department of Commerce and Economic Development. REPRESENTATIVE KIM ELTON spoke in support of the amendment. The amendment would eliminate the Division of Economic Development and Office of International Trade and shifts $2.4 of $3.4 million dollars to the Commissioner's Office for restructuring. He emphasized the importance of economic development. He explained that the amendment would eliminate 21 positions and transfer 3 positions to the Office of the Commissioner. Additional funding would be provided to the ARDORs. Representative Mulder acknowledged the importance of economic development but spoke against the amendment. He suggested that the component be considered with programs in the Department of Community and Regional Affairs. He questioned if the Commissioner supports the amendment. Representative Elton acknowledged that the Commissioner did not request the amendment. He spoke in support of the amendment. Representative Elton recommended that $1.4 million dollars 10 by applied to ARDORs and $200 thousand dollars be appropriated to Making the Case. Representative Grussendorf expressed concern that the amendment would make it difficult to sort out differences in an operating budget conference committee. Representative Martin maintained that the amendment is an intrusion into the powers of the Governor. Representative Kelly stressed that ARDORs should be more closely tied to private enterprise. He maintained that more emphasis should be put on international trade. Representative Navarre pointed out that each ARDOR receives less than one office in the legislature. He emphasized that the ARDOR program is just getting started. He felt that funding should be maintained. He estimated that ARDORs can become self supporting over time. Representative Brown suggested that the amendment reflects the type of prioritization that the legislature must make. She suggested that much of the work performed by the Department such as working with industry to make sure that regulatory barriers are not arbitrarily burdensome, are discretionary, without a measurable benefit. She estimated that a million dollar reduction would not result in an appreciable difference in the economic development in the State. She maintained that ARDORs are grass root programs. She recounted achievements of the Anchorage ARDOR. Representative Navarre pointed out that ARDORs help develop business plans to allow those that wish to begin business to have a plan for financing. A roll call vote was taken on the MOTION to adopt Amendment CED-3. IN FAVOR: Brown, Grussendorf, Navarre, Foster OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley The MOTION FAILED (4-7). (Tape Change, HFC 95-70, Side 2) Representative Navarre MOVED to adopt amended Amendment CED- 4 (copy on file). He explained that the amendment would delete $75.0 thousand dollars from the Office of International Trade and restore $75.0 thousand dollars to Alaska Rural Development Assistance grants (ARDORs). Representative Kelly OBJECTED. 11 A roll call vote was taken on the MOTION to adopt Amendment CED-4. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley The MOTION FAILED (3-8). DEPARTMENT OF NATURAL RESOURCES Representative Martin MOVED to adopt Amendment DNR-1 (copy on file). He explained that the amendment would restore $80.0 thousand dollars to the Department of Labor for the State Data Center to provide census information. He noted that the state of Alaska was under-counted in the last census. The amendment would transfer $50.0 thousand general dollars from the Agricultural Revolving Loan Fund to the Director's Office, Division of Agriculture. Representative Therriault OBJECTED. NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF NATURAL RESOURCES emphasized that the Agricultural Revolving Loan Fund was intended as a revolving loan fund. He noted that the fund has been seeded with General Fund appropriations. He observed that the beginning balance was over $6.0 million dollars. He emphasized that the Fund is starting to be self sustaining. He observed that the Mental Health Trust settlement will create a significant demand on the Fund. He maintained that approval of the proposed amendments, which total $2.0 million dollars in reductions to the Fund, would result in the bankruptcy of the Fund. He emphasized that most of the loans funded through the Fund do not qualify as traditional banking loans. In response to a question by Representative Grussendorf, Mr. Bus summarized that reductions to the Fund will jeopardize functions critical to the industry. Representative Grussendorf noted that some of the proposals contained in the amendments would generate General Fund revenue. Mr. Bus noted that $500.0 thousand dollars in new charges to the Agricultural Revolving Loan Fund were adopted in Subcommittee. In addition, $260.0 thousand dollars in operational charges were reduced. Representative Therriault noted that the $500.0 thousand dollars was offset to result in a net effect of $300.0 thousand dollars. He suggested that the Division of Forestry will have to be merged with the Division of 12 Agriculture. He expressed concern that acceptance of reductions in the proposed amendments would jeopardize the current balance. JOHN CRAMER, DIRECTOR, DIVISION OF AGRICULTURE, DEPARTMENT OF NATURAL RESOURCES replied to questions by Representative Brown. Mr. Cramer stated that the default rate for borrowers is 6 percent. He acknowledged that 17 percent of the outstanding loans are in default. He observed that 42 parcels in the Northern region of the State have been identified for land disposal. There are 15 parcels in South Central Alaska. An additional 23 parcels will be disposed of in the Point McKenzie area when the appeal of the Mental Health Trust Settlement has been finalized. Representative Brown questioned if it is the Division's philosophy that all farmers in the State are entitled to have their operations funded by the State. Mr. Cramer replied that it was not the Division's intent to fund all farm operations. He observed that 60 percent of the state's farmers' short term operational costs are funded through the Agricultural Revolving Loan Fund. He noted that the Fund is currently able to cover demand. He emphasized that the delinquency rate on new loans is currently at 5.6 percent. Representative Brown expressed concern that previous land disposals were not successful. Mr. Cramer assured members that the Division has learned from past mistakes. He noted that there are a number of structures on the parcels in Point McKenzie. Most of the land has been cleared and could be into production in a short period of time. He stressed that start up costs would be reduced. Mr. Cramer noted that the Division does inspections of products grown or brought into the state of Alaska. He observed that federal funds cover at least 50 percent of the program. He stated that the federal government would not perform the inspections if the State no longer funded the program. Representative Brown questioned the amount of funding spent on marketing agricultural products. Mr. Cramer stated that the Alaska Grown Program is funded from the Agricultural Revolving Loan Fund at $300.0 thousand dollars. It was shifted from a General Fund appropriation approximately five years ago. Co-Chair Hanley noted that 65 percent of the State's milk is imported from out of state. He observed that the state's involvement was not successful in the dairy industry. 13 Representative Therriault reiterated that new loan delinquency has been reduced to 5.6 percent. He maintained that the current level of agricultural growth is sound. Representative Brown questioned why the State has taken such an active role in agriculture. She asked if state supported activities would cease if state funding was reduced. Mr. Cramer estimated that the rate of development would be slowed. In response to a question by Representative Navarre, Mr. Cramer explained that current loans are shorter and are better monitored. He added that projects are more conservative. The interest rate is 8 percent. Mr. Bus noted that there are a total of $500.0 thousand in general fund dollars remaining in the Agricultural Development component after Subcommittee reductions. Representative Mulder MOVED to AMEND Amendment DNR-1, add $30.0 thousand dollars from the Agricultural Revolving Loan Fund. Mr. Bus recommended that the amendment to the amendment be changed to reflect a transfer to the General Fund. He emphasized that it will be difficult to account for expenditures in another department from the Agricultural Revolving Loan Fund. Representative Mulder WITHDREW his amendment to Amendment DNR-1. There being NO OBJECTION, it was so ordered. Representative Mulder MOVED to AMEND Amendment DNR-1, to appropriate $30.0 thousand dollars from the Agricultural Revolving Loan Fund to the General Fund and appropriate $30.0 thousand general fund dollars to the Department of Labor. Representatives Martin and Mulder spoke in support of the amendment. A roll call vote was taken on the MOTION to adopt Amendment DNR-1. IN FAVOR: Parnell, Brown, Grussendorf, Martin, Mulder, Navarre, Foster, Hanley OPPOSED: Therriault, Kelly, Kohring The MOTION PASSED (8-3). Co-Chair Foster MOVED to adopt amended Amendment DNR-2 (copy on file). He explained that the amendment would appropriate $40.0 thousand dollars from the Agricultural Revolving Loan Fund to the General Fund and appropriate $40.0 thousand dollars from the General Fund to the Department of Community 14 and Regional Affairs for a designated grant to the Deltana Corporation for winter snow and ice removal. He spoke in support of the amendment. (Tape Change, HFC 95-71, Side 1) In response to a question by Representative Brown, Mr. Cramer explained that the road in question was not built by the Division of Agriculture. The road was not the result of a Division of Agriculture disposal. The Division of Agriculture inherited the area from the Department of Commerce and Economic Development. He noted that the road is 30 miles outside of Delta Junction across the Gerstle River. Representative Brown observed that the even though the program was under the Department of Commerce and Economic Development it was still the agriculture program. She suggested that agricultural disposal should not be made if there is no existing supporting infrastructure. Representative Therriault spoke against the amendment. He pointed out that a road service area could be created to provide local support. REPRESENTATIVE KUBINA spoke in support of the amendment. He stated that the Department of Natural Resources previously paid for the road to be plowed. He observed that there are 13 children in the area that were unable to attend school due to the road condition. He requested that funding be provided for an additional year. He emphasized that he has communicated to the residents that they must find a way to fund the road maintenance in future years. A roll call vote was taken on the MOTION to adopt Amendment DNR-2. IN FAVOR: Brown, Grussendorf, Mulder, Navarre, Foster OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault, Hanley The MOTION FAILED (5-6). Representative Grussendorf WITHDREW Amendment DNR-3 (copy on file). Representative Grussendorf MOVED to adopt Amendment DNR-4 (copy on file). He noted that the amendment would add $100.0 thousand dollars for Forest Management and Development. Funding would be provided by a transfer from the Agricultural Revolving Loan Fund. He pointed out that the component does not have a Deputy Commissioner. There 15 are two managers with a wide range of duties. He gave a brief overview of the managers' duties. He observed that one of the managers will be reduced if the amendment is not adopted. A roll call vote was taken on the MOTION to adopt Amendment DNR-4. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley The MOTION FAILED (3-8). Representative Brown MOVED to adopt Amendment DNR-5 (copy on file). Representative Therriault OBJECTED. Representative Brown explained that the first part of the amendment would authorize and addition of $75.0 thousand dollars in program receipts for Land Development, Public Information Center/Publications. The program receipts are derived from the purchases by the public of materials from the Department of Natural Resources. She stated that without the adoption of Amendment DNR-5 the component's staff will be reduced by 25 percent. Representative Brown noted that the second portion of Amendment DNR-5 would add $154.0 thousand dollars for Information Resource Management. This would be offset by a $154.0 thousand dollar reduction in General Funds to the Agricultural Development component in the Department of Natural Resources. She noted the importance of computer information services in the Department. Failure to adopt the amendment would result in the reduction of three positions. Representative Brown MOVED to AMEND Amendment DNR-5 to change the funding source from General Funds in the Agricultural Development component to the Agricultural Revolving Loan Fund. There being NO OBJECTION, it was so ordered. Representative Therriault observed that the Subcommittee reduced the Public Information Center/Publications. He noted that $220.2 thousand dollars remain in the component. He stressed that the Subcommittee initially recommended that two of the four positions be reduced. One position was restored. Representative Martin questioned the level of general fund program receipts authorized in the Public Information Center/Publication in FY 95. Mr. Bus explained that program receipts are used to pay for the function and the 16 publication. Program receipts from the sale of the publication is used to fund reprinting. He stressed that the reduction in program receipt authorization would jeopardize reprintings. He maintained that the reduction would jeopardize the entire concept of public service. He stated that the reduction would result in the loss of two positions. Representative Martin spoke in support of additional funding for the Land Development Public Information Center/Publications. He MOVED to divide the question. There being NO OBJECTION, the amendment was divided into Amendment DNR-5A, authorize an addition of $75.0 thousand dollars in general fund program receipts for Land Development, Public Information Center/Publications; Amendment DNR-5B, add $154.0 thousand dollars for Information Resource Management from the Agricultural Revolving Loan Fund. A roll call vote was taken on the MOTION to adopt Amendment DNR-5A, add $75.0 thousand dollars for Land Development, Public Information Center/Publications. IN FAVOR: Martin, Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Mulder, Parnell, Therriault, Foster, Hanley The MOTION FAILED (4-7). In response to a question by Representative Brown, Mr. Bus explained that there was a reduction in capital project receipts as a result of the completion of land selection projects. He noted that some projects were not included in the Governor's request. He observed that these omissions will result in a loss of six positions. The Subcommittee reduction will result in the loss of three additional positions. He stressed that the loss of automation capability will be felt throughout resource programs in mining, forest and land management. Representative Brown spoke in support of Amendment DNR-5B. She maintained that the level of reduction is too deep to keep the Department functioning in an efficient manner. A roll call vote was taken on the MOTION to adopt Amendment DNR-5B. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault, Foster, Hanley Representative Mulder was absent from the vote. 17 The MOTION FAILED (3-4). Representative Brown MOVED to adopt Amendment DNR-6 (copy on file). Representative Brown MOVED to AMEND Amendment DNR-6, amend the funding source to delete "Agricultural Development" and substitute "Agricultural Revolving Loan Fund". She noted that $150.0 thousand dollars would be transferred from the Agricultural Revolving Loan Fund to the General Fund and from the General Fund to Parks and Recreation Management. The amended amendment would also delete $100.0 thousand dollars in general fund program receipt authorization for Parks and Recreation Management. There being NO OBJECTION, it was so ordered. Representative Brown noted that the amendment was submitted on behalf of Representative Davies. She noted that Representative Davies, who served on the Subcommittee, felt that the authorized level of program receipt could not be reached. She summarized that state parks are in danger of being closed without the additional funding. She maintained that the state park system is the backbone of recreation in the areas they exist. Representative Therriault noted that the intention is to shift funding from the General Fund to user fees. He noted that the approved level of program receipt authority is only $50.0 thousand dollars beyond what was requested by the Department. Mr. Bus noted that the Department is requesting $350.0 thousand additional dollars for an enlarged park system. He noted that construction money was approved for many new parks to open. The additional funding would staff the new parks. He summarized that the Subcommittee recommendation would reduce the general fund contribution by $400.0 thousand dollars. He emphasized that park units will be closed. He added that revenues will be lost in areas where parks are closed, since fees will not be collected in these areas. He stated that the amendment would not restore the total request. A roll call vote was taken on the MOTION to adopt Amendment DNR-6. IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Kelly, Kohring, Martin, Navarre, Parnell, Therriault, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (3-8). 18 Representative Navarre MOVED to adopt a DNR-7 (copy on file). The amendment would delete 150.0 thousand dollars from the Agricultural Revolving Loan Fund and add $150.0 thousand dollars to Oil and Gas Development, Leasing/Evaluation. Representative Therriault detailed the Subcommittee's actions. Representative Navarre emphasized that the component enhances revenues to the state. Mr. Bus noted that the reduction would result in the loss of 2 to 3 positions. He emphasized that the positions facilitate the preparations of lease sales. He maintained that lease sale offers will be slowed. A roll call vote was taken on the MOTION to Amendment DNR-7. IN FAVOR: Brown, Grussendorf, Navarre, Parnell, Foster OPPOSED: Kelly, Kohring, Martin, Therriault, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (5-5). Representative Brown MOVED to adopt Amendment DNR-8 (copy on file). THe amendment would reduce the Agricultural Revolving Loan Fund by $1.24 million dollars and add $46.0 thousand dollars to the Public Defender Agency and $780 thousand dollars to the Office of Public Advocacy. She spoke in support of Amendment DNR-8. A roll call vote was taken on the MOTION to adopt Amendment DNR-8. IN FAVOR: Brown, Foster OPPOSED: Grussendorf, Navarre, Kelly, Kohring, Martin, Parnell, Therriault, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (2-8). Representative Brown MOVED to adopt Amendment DNR-9 (copy on file). She explained that the amendment would transfer $200.0 thousand dollars from the Agricultural Revolving Loan Fund to the Department of Health & Social Services, Maternal Child and Family Health. She spoke in support of the amendment. Co-Chair Hanley observed that the Subcommittee authorized the addition of one of the three new sites requested by the 19 Governor. A roll call vote was taken on the MOTION to adopt Amendment DNR-9. IN FAVOR: Brown, Grussendorf, Foster OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault, Hanley Representatives Navarre and Mulder were absent for the vote. Representative Brown MOVED to adopt Amendment DNR-10 (copy on file). The amendment would transfer $100.0 thousand dollars from the Agricultural Revolving Loan Fund to Administrative Services. (Tape Change, HFC 95-72, Side 1) A roll call vote was taken on the MOTION to adopt Amendment DNR-10. IN FAVOR: Brown, Grussendorf OPPOSED: Kelly, Kohring, Martin, Mulder, Navarre, Parnell, Therriault, Foster, Hanley The MOTION FAILED (2-9). Representative Brown WITHDREW Amendment DNR-11 (copy on file). DEPARTMENT OF FISH AND GAME Co-Chair Foster MOVED to adopt amended Amendment FG-1 (copy on file). The amendment would delete $75.0 thousand dollars from the Department of Health & Social Services, Office of Commissioner and delete $91.2 thousand dollars from the Department of Fish and Game, Commercial Fisheries Entry Commission; and add $166.2 thousand dollars for the Department of Fish and Game, Office of the Commissioner. He noted that the amendment was offered on behalf of Representative Moses. He spoke in support of the amendment. Representative Grussendorf spoke in support of the additions in the amendment. He noted the importance of funding positions in the Commissioner's Office which represent Alaska in treaty negotiations with Canada and during deliberations on the Magnusom Act. He questioned the effect of the reductions. FRANK HOMAN, COMMISSIONER, COMMERCIAL FISHERIES ENTRY COMMISSION explained that the Commission has lost 8 positions in the past 8 years. He stressed that the 20 Commission has received a maintenance level budget for the past three years. He emphasized that the three commissioners are administrative law judges that sit as a tribunal for appeals on limited entry permits. There is a backlog of 800 cases awaiting adjudication. He stressed that the effect of the reduction would result in the elimination of 2 to 3 positions. He emphasized that the Commission brings in revenue. Co-Chair Foster MOVED to AMEND Amendment DNR-1, delete $35.0 thousand dollars from the Department of Health & Social Services, Office of Commissioner and delete $46.0 thousand dollars from the Department of Fish and Game, Commercial Fisheries Entry Commission; and add $81.0 thousand dollars for the Department of Fish and Game, Office of the Commissioner. Mr. Homan stated that the reduction would result in the loss of a hearing officer or two licensing personnel. Representative Grussendorf expressed concern with the reduction to the Commercial Fisheries Entry Commission. Co- Chair Hanley noted that the Commission has gradually reduced the backlog. There being NO OBJECTION, the amendment to Amendment FG-1 was adopt. There being NO OBJECTION, Amendment FG-1 was adopted. Representative Grussendorf WITHDREW Amendment FG-2 (copy on file). Representative Grussendorf MOVED to adopt Amendment FG-3 (copy on file). The amendment would restore the funding level for the Division of Habitat to $1990.0 thousand dollars. He observed that the Division was reduced by a third of their budget. He noted that offices would be closed in Ketchikan and Sitka. Representative Mulder MOVED to AMEND Amendment FG-3, delete $200.0 thousand dollars from the Subsistence BRU, Department of Fish and Game and add $200.0 thousand dollars to the Division of Habitat. The Division of Habitat will be funded at $1620.0 million dollars. Co-Chair Foster OBJECTED. A roll call vote was taken on the MOTION to amend Amendment FG-3. IN FAVOR: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Navarre, Hanley OPPOSED: Brown, Grussendorf, Foster The MOTION PASSED (8-3). 21 Representative Grussendorf expressed concern with the level of funding for the Division of Habitat. A roll call vote was taken on the MOTION to adopt Amendment FG-3. IN FAVOR: Grussendorf, Navarre, Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley OPPOSED: Brown, Foster The MOTION PASSED (9-2). Representative Grussendorf MOVED to adopt Amendment FG-4 (copy on file). The amendment would transfer $29.6 thousand dollars from Fisheries Management and appropriate $29.6 thousand dollars to the Yukon River Drainage Fisheries Association. REPRESENTATIVE IRENE NICHOLIA spoke in support of the amendment. She emphasized that the Association allows different interest groups to work cooperatively with the Department of Fish and Game to assist in addressing the declining fall chum fisheries. Co-Chair Hanley noted that this grant was eliminated along with other designated grants in the Department of Community and Regional Affairs. A roll call vote was taken on the MOTION to adopt Amendment FG-4. IN FAVOR: Brown, Grussendorf, Navarre, Foster OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley The MOTION FAILED (4-7). DEPARTMENT OF PUBLIC SAFETY Representative Brown WITHDREW Amendment PS-1 (copy on file). Representative Brown MOVED to adopt Intent Language PS-1 (copy on file). She explained that the intent language would require those entities which have police powers to utilize local police departments for routine patrol and investigative services. Representative Mulder, and Kelly spoke in support of Intent Language PS-1. Representative Parnell noted that the intent language would not cover the Anchorage Hillside area. He felt it was 22 inappropriate to enact policy through intent language. Discussion ensued regarding the effect of the language on the Hillside area of Anchorage. A roll call vote was taken on the MOTION to adopt Intent Language PS-1. IN FAVOR: Brown, Grussendorf, Navarre, Kelly, Martin, Mulder, Hanley, Foster OPPOSED: Parnell, Therriault, Kohring The MOTION PASSED (8-3). Intent Language PS-2 was WITHDRAW. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Co-Chair Hanley MOVED to adopt Amendment DOT-1 (copy on file). He explained that the amendment would transfer $1.0 million dollars from the Storage Tank Assistance Fund to the Department of Transportation and Public Facilities, Statewide Maintenance and Operations. Representative Grussendorf questioned if the Alaska Marine Highway System would be included. Co-Chair Hanley stated that the Alaska Marine Highway System is not included in this component. Representative Grussendorf stressed the need for further funding to the Alaska Marine Highway System. Representative Navarre spoke in support of the amendment. Representative Brown noted that the money would be deleted from front section 20 (b). Co-Chair Hanley noted the money transfer would be through the General Fund. There being NO OBJECTION, a DOT-1 was adopted.