HOUSE FINANCE COMMITTEE May 11, 1993 11:30 p.m. TAPE HFC 93-139, Side 2, #000 - end. TAPE HFC 93-140, Side 1, #000 - 531. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 11:30 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 Representative Barnes; Mike Greany, Director, Legislative Finance Division; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget; Joan Kasson, Fiscal Analyst, Legislative Finance Division; Nancy Slagle, Fiscal Analyst, Legislative Finance Division; Bill Lawrence, Anchorage Wastewater Utility; John Bitney, Legislative Staff, Representative Larson. SUMMARY INFORMATION SB 165 "An Act making an appropriation to the Alyeska Settlement Fund and making appropriations from the Alyeska Settlement Fund; and providing for an effective date." HCS CSSB 165 (FIN) was reported out of Committee with "no recommendation". SENATE BILL NO. 165 "An Act making an appropriation to the Alyeska Settlement Fund and making appropriations from the Alyeska Settlement Fund; and providing for an effective date." Co-Chair Larson provided members with a sectional analysis for CSSB 165 (FIN) am (Attachment 1). Co-Chair Larson reviewed Attachment 1. He noted that 1 sections regarding reappropriations were added to the bill. Co-Chair MacLean provided members with a sectional analysis of sections containing reappropriations (Attachment 2). She observed that sections 6 - 58 are identical to sections passed by the House Finance Committee in SB 100. Additional sections were added by the Senate. The new sections are 59 - 68 and 150. Co-Chair MacLean reviewed reappropriation sections in Attachment 2, section by section. Representative Brown questioned section 60, Municipality of Anchorage, Ship Creek redevelopment. She observed that the project was appropriated in 1991. She noted that the appropriation was contingent on private investment commitments. She stated that a Legislative Budget and Audit Committee audit found that the private investment commitment arranged by the municipality was not deemed to be sufficient. She argued that the project is still viable. She pointed out that the money is not lapsing. Representative Brown asked for more information on section 61, Municipality of Anchorage Alyeska Water Improvement District. BILL LAWRENCE, ANCHORAGE WASTEWATER UTILITY explained that $6.2 million dollars was appropriated in two appropriations in 1991. He stated that $350 thousand dollars of the funds appropriated by SB 488 are inaccessible. This reappropriation would complete the project at the original appropriation level. Co-Chair Larson reviewed each section of CSSB 165 (FIN) am, starting on section 57 and asked if members had objections or comments. Representative Brown asked for further clarification of the connection between sections 64 and 63. Co-Chair MacLean explained that section 64 is a contingency clause for the reappropriation in section 63 of $650.0 thousand dollars to the Rural Development Initiative Fund. Representative Brown noted that section 66, King Cove hydroelectric power project, was not in the House's supplemental or reappropriation bills. REPRESENTATIVE RAMONA BARNES clarified that section 66 was originally contained in the capital appropriation bill. It was removed to be included in the reappropriation bill. Funding was not available through reappropriation. Co-Chair Larson noted that section 67 is the $4.0 million dollars appropriated from the General Fund for the Department of Transportation and Public Facilities, Alaska 2 Marine Highway System. Co-Chair Larson stated that funding for the vessel is as follows: * Reduce general fund match by $2 million dollars; * Add $2 million from the Vessel Replacement Fund; * Transfer $7 million dollars from Mitigation Fund to the Vessel Replacement Fund; * Transfer $4 million dollars in the Senate capital budget to the supplemental budget (SB 165). Representative Brown spoke in support of the House number of $616.4 thousand dollars for section 74, Office of Public Advocacy. Co-Chair MacLean stated her objection to the Senate reduction in section 80, Department of Law, judgement and claims. JOAN KASSON, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION explained that the Senate figure of $309.8 thousand dollars contains funding for judgments not including the judgement awarded to the Southeast Conference. Co-Chair MacLean MOVED to delete "$309.8" and insert "$1,436.6" million dollars. There being NO OBJECTION, it was so ordered. Members discussed section 55, Alcan Caravan Alaska Highway Promotional Film. Representative Martin MOVED to delete section 55. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Foster, Hanley, Parnell, Therriault, MacLean, Larson OPPOSED: Martin Representative Navarre was not present for the vote. The MOTION PASSED (9-1). (Tape Change, HFC 93-140, Side 1) Co-Chair Larson continued to move through the bill section by section, beginning with section 84. Representative Therriault noted the difference between the House and Senate numbers for section 126, state land selection activities. He asked if the Department of Natural 3 Resources can cover their publication expenses with the Senate figure of $150.0 thousand dollars. Co-Chair Larson thought that they could. Co-Chair MacLean observed that the Senate did not include $23.1 thousand dollars in legislative intent language when the House had adopted regarding funds for the Alaska Psychiatric Institute (API) replacement facility. Co-Chair Larson explained that the House set aside $23.1 thousand dollars in medicaid reimbursement until decisions regarding API are complete. He pointed out that additional funding for various hospitals is included in section 137, $2,802.0 million dollars. NANCY SLAGLE, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION clarified that no funding is appropriated to API. She stressed that the money is being set aside for appropriation at a later date. Co-Chair MacLean read the intent language contained in section 138 (b). Co-Chair MacLean noted that there is a difference between House and Senate numbers for section 143, prisoner transportation costs. Representative Parnell noted that the House Finance Subcommittee on the Department of Public Safety felt that $125.0 thousand dollars represents actual prisoner transportation costs. Representative Navarre MOVED in section 143, prisoner transportation costs, to delete "$75.0" and insert "$125.0" thousand dollars. There being NO OBJECTION, it was so ordered. Co-Chair Larson noted that the Senate included section 146, Elections Division, $297.7 thousand dollars. Section 143 was a request by Lieutenant Governor Coghill to cover reapportionment costs. Representative Brown observed that the reapportionment expenditures are unnecessary. Ms. Slagle explained section 148, HB 178, medicaid options. She stated that HB 178 included two portions. House Bill 178 would have provided adoption services under medicaid and an additional medicaid option to allow severely disabled children to be served in home and community based settings. She noted that SB 99 includes funding for adoption services. Funding for severely disabled children would be contained in section 148 of CSSB 165 (FIN) am. Funding is a 50/50 federal/state match. Representative Hanley asked if language in the appropriation bill is expansive enough to allow the expenditure of funding. Ms. Slagle believed the bill provided sufficient flexibility. She noted that the language in the appropriation bill, CS HB 55, states that "to be incorporated in some other measure". She stressed that the 4 substance is included in HB 178. Representative Brown asked the total appropriation needed. Ms. Slagle answered that $17.7 thousand general fund dollars are not included. Representative Brown provided members with AMENDMENT 1 (Attachment 3). She noted that the amendment pertains to section 60, Municipality of Anchorage, Ship Creek redevelopment. The amendment would extend the lapse date to 1995 in order to allow private investment commitments to be obtained. Representative Brown MOVED to ADOPT AMENDMENT 1. There being NO OBJECTION, it was so ordered. Co-Chair MacLean MOVED to report HCS CSSB 165 (FIN) out of Committee with individual recommendations. HCS CSSB 165 (FIN) was reported out of Committee with "no recommendation". ADJOURNMENT The meeting adjourned at 1:00 a.m. 5