CONFERENCE COMMITTEE ON THE FY 95 OPERATING BUDGET May 13, 1995 2:58 p.m. TAPES CC-95 #3, SIDE 1 (000-end) CC-95 #3, Side 2 (000-071) CALL TO ORDER Representative Hanley convened the meeting at 8:15 p.m. in the Senate Finance Committee Room, State Capitol Building, Juneau, Alaska. PRESENT All Conference Committee members were present: Representative Hanley Senator Frank Representative Foster Senator Halford Representative Grussendorf Senator Zharoff ALSO PRESENT: Mike Greany, Dir., and Fiscal Analysts, Leg. Fin. Annalee McConnell, Director, OMB; Nancy Slagle, Dir. of Budget Review, and Budget Analysts, OMB; Staff to conferees and other legislative members SUMMARY INFORMATION CSHB 100 (FIN) AND SCS CSHB 100(FIN)AM S(EFD/BRF SUPER MAJ FLD S) "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." The Conference Committee reviewed the following agency budgets: Department of Administration Department of Commerce and Economic Development Department of Community and Regional Affairs Department of Corrections Department of Education Office of the Governor Department of Health & Social Services Legislature Department of Public Safety Department of Revenue Department of Transportation and Public Facilities Department of Fish and Game The Conference Committee also considered: Front Section Intent Language Fiscal Notes Log notes, motions sheets, attachments, and tapes of the meeting are on file and available at the Legislative Library (465-3808). LOG # DESCRIPTION OOO DEPARTMENT OF ADMINISTRATION Rep. Hanley MOVED the Department of Administration pg. 21, S -$40.0 pg. 43, H -$334.9 pg 44, 1, H pg 44, 2, S 020SUSAN TAYLOR, ANALYST, LEGISLATIVE FINANCE DIVISION stated that the Senate number for page 44, 2 would allow funding to be transfer into public radio and television. 029Page 44, 2 was held open 031Rep. Hanley MOVED 46, amended S, $2950.0 thousand page 47, 1, S, $13750. He stated that a separate RATNet BRU would be created. The transfer from the Public Broadcasting Commission was not made. 059pg 47, H Ms. Taylor explained that pg 44, 1 should be the House number. She stated that pg 44, 2 will reflect revised numbers. 110Rep. Grussendorf summarized that funding for public radio would be $50.0 below the highest level. Public television and RATNet would be $25.0 below the highest level. 120DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Rep. Hanley MOVED pg 3, S pg 21, S amended of -$449.8, grants -$285.8 140DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Rep. Hanley MOVED pg 1, H pg 5, S pg 6, S pg 8, S amended $26271.7 Sen. Frank noted that this is a 7 percent reduction. pg 9, S amended -$31959.0 172DEPARTMENT OF CORRECTIONS was held 175DEPARTMENT OF EDUCATION Rep. Hanley MOVED pg 18, S pg 26, H pg 32, S pg 35, S amended GF match -$115.4 pg 59, H amended -$20.0, S -$20.0 200OFFICE OF THE GOVERNOR Rep. Hanley MOVED pg 1, S amended -$50.0 pg 2, S pg 3, H pg 4, S pg 5, S amended -$36.2 pg 9, H pg 10, S pg 14, H 210DEPARTMENT OF HEALTH AND SOCIAL SERVICES Rep. Hanley MOVED pg 1, H 220LEGISLATURE Rep. Hanley MOVED pg 1, S amended -$123.0 pg 2, S amended -$997.1 pg 3, S amended -$107.4 pg 4, S pg 7, S pg 9, S amended -$216,0 pg 10, S pg 13, S pg 14, S pg 15, 1, H amended -$762.6 pg 15, 2, H pg 16, S pg 17, S 229Rep Hanley explained that the funding for the Legislature is below FY 94 actuals. He noted the intent is to not continue the carry forward. 253DEPARTMENT OF PUBLIC SAFETY Rep Hanley MOVED to reopen the Department of Public Safety. There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED pg 12, 3, H pg 14, H pg 20, S amended -$22.4 266DEPARTMENT OF REVENUE Rep. Hanley MOVED 13, S pg 17, S amended -$19.3 pg 19, 1, S pg 19, 2, S pg 19, 3, H pg 19, 4, H pg 19, 5, H amended $292.4 pg 19, 5, GF $152.4 pg 19, 6, H 290DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Rep. Hanley MOVED to reopen the Department of Transportation and Public Facilities. There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED pg 44, S amended -$917.3 305 INTENT LANGUAGE Senator Frank provided Conference Committee members with intent language (Attachment 1). The intent for the Department of Administration, regarding RATNet and public broadcasting, pages 1 and 2, Attachment 1 was held. 344Rep. Hanley MOVED Intent Language for the Department of Revenue (see Attachment 1). Rep. Hanley MOVED Intent Language for the Department of Education (see Attachment 1). There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED Intent Language for the Department of Commerce and Economic Development (see Attachment 1). There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED Intent Language for the Department of Military and Veterans Affairs (see Attachment 1). There being NO OBJECTION, it was so ordered. 344Rep. Hanley MOVED Intent Language for the Department of Natural Resources (see Attachment 1). There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED Intent Language for the Department of Public Safety (see Attachment 1). There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED Intent Language #499, Public Safety Highway Safety Planning Agency-Federal Grants at $600.0. There being NO OBJECTION, it was so ordered. 371Rep. Hanley MOVED Intent Language for the Department of Transportation and Public Facilities (see Attachment 1). There being NO OBJECTION, it was so ordered. 395Senator Frank MOVED to delete the second sentence in Intent Language for the Department of Environmental Conservation, #1428. There being NO OBJECTION, it was so ordered. 360Rep. Hanley MOVED Intent Language for the Department of Corrections. Representative Grussendorf expressed objections to Intent Language for the Department of Corrections, # 1381. Intent Language #1381 was adopted. 418Ms. McConnell noted that Intent Language for the Department of Corrections, 1931 was not adopted because it is anticipated to be included in the capital budget. 421Rep. Hanley did not move Intent Language for the University of Alaska. There being NO OBJECTION, it was so ordered. 424Senator Frank provided members with intent language of the regarding public television and radio and RATNet (Attachment 2). Rep. Hanley MOVED Intent Language in Attachment 2. There being NO OBJECTION, it was so ordered. 433Rep. Hanley MOVED Intent Language for the Department of Natural Resources (Attachment 3). There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED Intent Language for the Department of Education (Attachment 4). There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED Intent Language for the Department of Commerce and Economic Development, ARDOR (Attachment 5). There being NO OBJECTION, it was so ordered. Rep. Hanley MOVED Intent Language for the Department of Commerce and Economic Development, International Trade (Attachment 6). There being NO OBJECTION, it was so ordered. 449Ms. McConnell noted that the Department of Administration intends to make an effort to reduce lease costs through negotiations. She added that if the Department is unsuccessful an supplemental request would be introduced. 461Rep. Hanley MOVED to for the Department of Administration, pg 23, H amended -$25.0 thousand dollars. There being NO OBJECTION, it was so ordered. 465Rep. Hanley MOVED to pg 43, H amended -$334.9. He explained that there would be a separate RATNet BRU. pg 44, 1, H amended -$1435.1 pg 44, 2, S amended radio -$2950.0, amended TV - $1375.0. pg 45, S pg 46, S amended $2950.0 pg 47, 1, S amended $1375.0 pg 47, 2, H 495DEPARTMENT OF FISH AND GAME Rep. Hanley MOVED pg 1, H amended -$457.1 pg 1, 2, H pg 1, 3, H pg 2, H pg 3, H pg 4, H pg 5, 1, H pg 5, 2, H pg 5, 3, H pg 6, H pg 9, H amended -$25.0 pg 14, 1, S amended -$700.0 federal funds, - $1,600.0 Fish and Game Fund pg 14, 2, H pg 14, 3, H pg 14, 4, H pg 14, 5, H 504Rep. Hanley MOVED pg 15, 1, H pg 15, 2, H pg 15, 3, H pg 16, H pg 17, H pg 18, H pg 19, S pg 20, H pg 21, S amended -$149.0 general fund, -$10.3 GFPR pg 24, S pg 25, S pg 26, S pg 27, S pg 28, H amended -$395.0 512Rep. Hanley MOVED pg 30, 1, H pg 30, 2, S pg 33, S pg 34, S 527FRONT Section Rep. Hanley MOVED front Section Sections (see attachment 7): Section 2, Senate Section 13, S Section 18 (a)-(g), S Section 19, S Section 20(a), H Section 20(b) amended H, 2,791.3 Section 20(c), S Section 24, H Section 25, S Section 31, H Section 38, S 558Ms. McConnel expressed concern that labor contracts were not ratified by the Legislature. Representative Grussendorf OBJECTED to the adoption of Section 38, Senate. Representative Hanley stressed that inaction would amount to ratification of the contracts. He observed that if money is not appropriated to fund ratified contracts then departments would have to absorb the increases. 571A roll call vote was taken on the MOTION to adopt Section 38, Senate (Attachment 8). IN FAVOR: Foster, Halford, Frank, Hanley OPPOSED: Grussendorf, Zharoff The MOTION PASSED (4-2). Rep. Hanley MOVED Section 39, S Section 40, S Sections 41, S (Tape Change, CC 95-4, Side 2) 000Rep. Hanley MOVED 42, & 43, Senate 009Representative Hanley MOVED to adopt front Sections which were identical in the House and Senate versions. There being NO OBJECTION, it was so ordered. 011Rep. Hanley MOVED to adopt category two items. There being NO OBJECTION, it was so ordered. 019Rep. Hanley MOVED to adopt front Section items: Section 20(a) H Section 20 (b) amended H, $2791.3 Section 21(c), S 024DEPARTMENT OF CORRECTIONS Representative Hanley MOVED pg 31, 3, S amended - $946.6 031FISCAL NOTES Representative Hanley provided members with a list of fiscal notes (Attachment 9). He amended the list by deleting $110.0 thousand dollars for HB 92 and inserting $136.0 thousand dollars. Rep. Hanley MOVED to adopt the fiscal notes contained in Attachment 9. There being NO OBJECTION, it was so ordered. 046Ms. McConnel asked for an analysis of fiscal notes. Representative Hanley stated that an analysis would be forthcoming. 062Senator Frank discussed reductions to fiscal notes. He noted that HB 78 fiscal notes were reduced to result in a net zero. He added that fiscal notes for HB 159 were reduced to reflect the effective date of January 1, 1996. He stated that SB 28 was also reduced to reflect discussions with the Department.  Representative Hanley MOVED to report CCHB 100 out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. 071ADJOURNMENT The meeting adjourned at 4:54 p.m.