HOUSE FINANCE COMMITTEE March 12, 1993 1:35 p.m. TAPE HFC 93-46, Side 1, #000 - 481. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:35 p.m. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf ALSO PRESENT Mike Greany, Director, Legislative Finance Division; Arthur H. Snowden, II, Administrative Director, Alaska Court System; Sharon Peek, Staff, Representative Menard. SUMMARY INFORMATION HB 55 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." SUBCOMMITTEE CLOSEOUTS: ALASKA COURT SYSTEM HB 117 "An Act naming the Manvil H. Olson Bridge." HB 117 was reported out of Committee with "no recommendation" and with a zero fiscal note by the Department of Transportation and Public Facilities, dated 3/1/93. HB 144 "An Act relating to fees for certain costs of administering the permanent fund dividend program." HB 144 was reported out of Committee with "no recommendation" and with a zero fiscal note by the Department of Revenue. HOUSE BILL NO. 55 1 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." ALASKA COURT SYSTEM The House Finance Subcommittee for the Alaska Court System consists of Chair Parnell with members Representatives Barnes, Porter, Navarre and Grussendorf. Representative Parnell provided members with a letter from the Alaska Court System answering questions regarding their budget (Attachment 1). Representative Parnell asked the Alaska Court System to respond to the following questions: * What specific areas of responsibility have increased significantly in the past five years? * What budgetary or planning action, if any has taken place to address these demands? * Over the next five to ten years, what areas of the respective division or agency are anticipating increased workloads? * How does the department's proposed FY 94 budget help to prepare the department for these demands. Representative Parnell presented members with the Alaska Court System FY 94 Operating Budget, Impact of House Budget Reduction (Attachment 2). Representative Parnell stressed that the Alaska Court System is not just another department but a branch of government. He pointed out that the Governor's proposed FY 93 Alaska Court System budget is $44,362.5 million general fund dollars. This is a 4.1 percent increase. The Subcommittee was given a 2 percent reduction target. The Subcommittee's proposed budget for the Alaska Court System is 2.1 percent over FY 93 Authorized. Representative Parnell provided members with the Subcommittee's Transaction Summary for the Governor to House (Attachment 3). He reviewed Attachment 3. * Trail courts - <642.3 thousand dollars> $140.4 thousand dollars in new positions were deleted as prioritized by the Alaska Court System. Other reductions were; new equipment <$10.1 thousand dollars> and office space <$23.4 thousand dollars>. The Subcommittee deleted a 2 $401.2 thousand dollars request for jury fee increases. A $67.5 thousand dollars reduction was made to the mediation pilot project. The project was suggested by the legislature for divorce and family law mediation. The project will be conducted only in Anchorage. * Administration and Support - <210.0 thousand dollars> New positions were deleted. * Commission on Judicial Conduct - <$3.0 thousand dollars> An investigator position was eliminated. The position's funds were transferred to contractual with a $3.0 thousand dollar reduction. * Judicial Council - <$68.0 thousand dollars> Funding for a malpractice project was reduced. Representative Hoffman noted that the court clerk position was eliminated in Dillingham. He stressed that there has been a 71 percent increase in caseload in Dillingham. He emphasized that the area needs to have a district judge and attorney. He asked why the Bristol Bay area is being neglected. ARTHUR H. SNOWDEN, II, ADMINISTRATIVE DIRECTOR, ALASKA COURT SYSTEM agreed that problems in the Bristol Bay area need to be addressed. He stated that the Alaska Court System had to chose between deletions in court personnel or magistrate training. He expressed his desire to reinstate the court clerk position at a later date. Representative Hoffman reiterated his concerns. Representative Grussendorf expressed concern that 3 court clerk positions were deleted in Ketchikan, Dillingham and Craig. He also expressed concern that the Internal Auditor position was deleted. He emphasized that the internal auditor was requested through the Legislative Budget and Audit Committee. Representative Parnell MOVED to adopt and INCORPORATE into HB 55 the proposals by the House Finance Subcommittee on the Alaska Court System. There being NO OBJECTION, it was so ordered. 3 HB 55 was HELD in Committee. HOUSE BILL NO. 117 "An Act naming the Manvil H. Olson Bridge." SHARON PEEK, STAFF, REPRESENTATIVE MENARD explained that HB 117 would name a bridge located at Schrock Road over the Little Su River after Manvil Olson. Mr. Olson spent many years constructing the original bridge. Ms. Peek noted that the local residents refer to the river crossing as the Manvil Olson bridge. Representative Foster MOVED to report HB 117 out of Committee with individual recommendations and with the accompanying fiscal note. Representative Grussendorf noted that the fiscal noted did not include funding for signs. He asked if the bridge would be have a sign. No one could answer the question. There being NO OBJECTION, HB 117 was moved from Committee. HB 117 was reported out of Committee with "no recommendation" and with a zero fiscal note by the Department of Transportation and Public Facilities, dated 3/1/93. HOUSE BILL NO. 144 "An Act relating to fees for certain costs of administering the permanent fund dividend program." Co-Chair Larson noted that HB 144 would transfer the costs of administering permanent fund dividend assignments and attachments back to the person whose financial obligations are the cause of the assignment or attachment. Representative Martin observed that minors are currently having their permanent fund dividend checks attached for obligations of their parents. Representative Martin MOVED to RESCIND the Committees action of February 19, 1993, in failing to report HB 144 out of Committee. There being NO OBJECTION, it was so ordered. The original question to report HB 144 out of Committee with individual recommendations and with the accompanying fiscal note remained before the Committee. There being NO OBJECTION, it was so ordered. HB 144 was reported out of Committee with "no recommendation" and with a zero fiscal note by the Department of Revenue. 4 Co-Chair Larson noted that the Department of Education House Finance Subcommittee's closeout was held in order that the Subcommittee meet to amend a previous action. Co-Chair Larson discussed the amendment schedule. Co-Chair MacLean noted that the capital closeout will begin after the operating budget has been closed. Input on capital projects will be submitted through subcommittees. ADJOURNMENT The meeting adjourned at 2:10 p.m. 5