HOUSE FINANCE COMMITTEE March 28, 1995 1:30 P.M. TAPE HFC 95-66, Side 2, #000 - end. TAPE HFC 95-67, Side 1, #000 - end. TAPE HFC 95-67, Side 2, #000 - end. TAPE HFC 95-68, Side 1, #000 - 525. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 1:47 p.m. PRESENT Co-Chair Hanley Representative Martin Co-Chair Foster Representative Mulder Representative Brown Representative Navarre Representative Grussendorf Representative Parnell Representative Kelly Representative Therriault Representative Kohring ALSO PRESENT Representative Ivan; Barbara Ritchie, Department of Law; Nancy Slagle, Director, Division of Budget Review, Office of the Management and Budget, Office of the Governor; Kristie Leaf, Staff, Representative Kohring; Bill Legere, President, Alaska Broadcasting Service; Douglas Samimi-Moore, Executive Director, Alaska Broadcasting Commission; Rich McClear, Southeast Media Consortium. SUMMARY HB 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. HB 100 was HELD in Committee for further discussion. 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, 1 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 ADMINISTRATION Representative Kohring MOVED to adopt Amendment DOA-1 (copy on file). Representative Brown OBJECTED. Representative Kohring explained that the amendment would delete $170.6 thousand dollars from Permanency Planning and $2,803.4 thousand dollars from the Public Broadcasting Commission; and add $111.5 thousand dollars to the Public Broadcasting Commission and $2,862.5 thousand dollars in Public Broadcasting Radio Grants. He explained that the intent is to maximize funding to sole service stations. He recommended that separate appropriations be made to individual stations. Representative Grussendorf expressed concern with the line item authorization of separate appropriations. He spoke in support of allowing the Public Broadcasting Commission to allocate grants based on services. He pointed out that even though KCAW is not identified as a sole service station, KCAW is the only source of news, weather and radio service to many communities. He noted that the commercial station only reaches to three miles outside of town. He emphasized that area fisherman are dependent on KCAW. RICH MCCLEAR, SOUTHEAST MEDIA CONSORTIUM stated that regional consortiums have been created by individual stations. The Alaska Public Broadcasting Commission has aggregated $300.0 thousand dollars for statewide services. He emphasized that these services provide more efficiencies than could be created by individual stations. He stressed that money can be saved through regionalization. Representative Brown spoke against line item appropriations. She suggested that a separate BRU could be identified for radio. She pointed out that some public radio and television stations have combined operations. She emphasized that the elimination of public television will effect the radio network. She spoke in support of providing sufficient funding for public television to allow the transition to privatization of television. She maintained that public television could be consolidated into one 2 station. She noted that there are alternatives to eliminating television. Representative Brown stated that she supports permanency planning. She noted that permanency planning could be funded through adoption of a fiscal note. Representative Kohring agreed that the Permanency Planing program can be funded through a fiscal note accompanying HB 92. He spoke in support of Amendment DOA-1. He noted that the intent is to serve all communities. He stressed that the amendment does not inhibit pooling of resources on a regional basis. Representative Navarre asked the definition of "sole service". Representative Kohring responded that "sole service" refers to a community that only has a public facility, there is no commercial radio facility. Representative Navarre noted that Kenai is listed as a sole service station. Representative Martin pointed out that Kenai can pick up radio singles from Anchorage. Representative Brown expressed concern that stations that are not being fully funded are taking a larger (35%) reduction. She stressed that many stations are close to the edge of being able to capture federal funds. She emphasized that larger stations serve areas that do not have other services. She observed that the Anchorage station also provides service to Prudhoe Bay and Unalaska. She felt that attempts to regionalize would be undermined. She emphasized that public radio is a fundamental core service that has huge impacts on people. Representative Kohring maintained that no stations will go off the air. He stressed that reductions must be made. Representative Brown responded that several stations will loose federal funding if the proposed level of reduction is made. She alleged that even though the total appropriation will be larger than the original recommendation, some stations will receive deeper cuts. She stated that a dozen stations will be reduced to local access repeaters and loose most of their federal dollars. Representative Kohring observed that sole service stations will not be reduced. Other stations would be reduced by 35 percent. He acknowledged that the amendment would reduce the amount that non-sole service stations would be cut. Co-Chair Hanley clarified that the Subcommittee's 3 recommendation would have provided a 25 percent reduction to public radio with the intention that sole service stations would be held harmless. Non-sole service stations would have received a 45 - 50 percent reduction. He noted concern that the Public Broadcasting Commission would shut down or drastically reduce some of the sole service stations. Representative Grussendorf emphasized that stations running repeaters are dependent on the "mother" stations. He reiterated the dependency of fishers on radio service. He repeated his concern for the allocation of designated grants. Representative Kohring stated that $111.5 thousand dollars will remain for staff and travel expenses. Co-Chair Hanley clarified that there is $170.6 dollars more in the total component. Representative Kohring stressed that the intent of separate appropriations is that public radio service be maintained at all stations. Representative Navarre summarized that separate appropriations will result in the elimination of statewide news programs and the loss of some federal grant funding. KRISTIE LEAF, STAFF, REPRESENTATIVE KOHRING stated that the Department of Administration did not indicate that any public radio stations would go off the air as a result of the reduction of state funding. She maintained that radio stations will receive an additional $25.0 thousand dollars due to a reduction in staff and travel. Representative Grussendorf MOVED to AMEND Amendment DOA-1, to grant $2,974.0 million dollars to the Public Broadcasting Commission. He stated the intent would be for the Commission to administer the grants. After a brief at ease Representative Grussendorf MOVED to WITHDRAW his amendment to Amendment DOA-1. Representative Kohring MOVED to AMEND Amendment DOA-1, by deleting the itemization of grants to individual stations and to appropriate $2,974.0 million dollars to the Public Broadcasting Commission. He stated that the amendment will give the Commission an opportunity to allocate the funding in a manner that is fair and allows stations to remain open. He noted that a letter of intent will be drafted. There being NO OBJECTION, the amendment to Amendment DOA-1 was adopted. There being NO OBJECTION, Amendment DOA-1 was adopted. 4 Co-Chair Foster MOVED to adopt Amendment DOA-2 (copy on file). Representative Kohring OBJECTED. Co-Chair Foster explained that the amendment will pay $200.0 thousand dollars for staffing of the Rural Alaska Television Network (RATNet). He noted that the uplink is funded for RATNet without an staff. Representative Kohring stated that RATNet's budget was reduced by 25 percent. (Tape Change, HFC 95-67, Side 1) The amendment would reduce the Office of the Commissioner, Department of Administration by $50.0 thousand dollars; Agricultural Development, Department of Natural Resources by $100.0 thousand dollars and Personnel/Equal Employment Opportunity, Department of Administration by $50.0 thousand dollars. He spoke in support of the amendment. Representative Brown noted that she supports the addition but not the reduction to the Personnel/Equal Employment Opportunity, Department of Administration by $50.0 thousand dollars. She stressed that grievances not handled administratively could end up in court. Representative Therriault expressed concern with the $100.0 thousand dollars reduction to Department of Natural Resources. Representative Grussendorf suggested that another revenue source be considered. Co-Chair Foster WITHDREW Amendment DOA-2. Representative Brown MOVED to adopt Amendment DOA-3 (copy on file). Representative Kohring OBJECTED. The amendment would add $309.9 thousand dollars to RATNet and $3,067.8 million dollars for the Public Broadcasting Commission from the Mitigation Account. Representative Brown explained that the Mitigation Account consists of fines and penalties collected by the Department of Law for money owed the State. She noted proposals to appropriate funding from the Mitigation Account to the Underground Storage Tank program and Oil and Hazardous Substance Release Response Fund. She stressed that the money in the Mitigation Account is general fund revenue. She stressed the importance of RATNet and public broadcasting. She maintained that storage tank clean up is not the most pressing environmental problem that the State faces. She emphasized that RATNet is an integral part of the state emergency broadcasting system. Co-Chair Foster MOVED to divide the question. Representative Martin spoke against using the Mitigation 5 Account as a funding source. There being NO OBJECTION, Amendment DOA-3 was divided. Co-Chair Foster MOVED to adopt Amendment DOA-3A, add $309.9 thousand dollars to RATNet from the Mitigation Account. Representative Therriault asked if the funds would be taken from section 20(a) or 20(b). He stated that funding in 20 (a) that is not transferred to the Underground Storage Assistance Fund will lapse into the Oil and Hazardous Substance Release Prevention and Response Fund. He noted that the Oil and Hazardous Substance Release Prevention and Response Fund pays for operations of the Division of Spill Prevention and Response. Representative Brown stated that the reduction would come from section 20(b). Representative Therriault stressed that the money contained in 20(b) would have to be transferred to the General Fund before it can be appropriated. Representative Brown observed that she is attempting to target the $3.5 million dollars that would be transferred from the Mitigation Account to the Storage Tank Assistance Fund. She observed that there is no legal restriction on spending from the Mitigation Account. Representative Therriault spoke against the amendment. He emphasized the importance of clean drinking water. Representative Martin agreed with Representative Therriault. Representative Brown stressed that she also supports clean drinking water. She maintained that the money in the Storage Tank Assistance Fund subsidizes private corporate entities. She noted that Chevron, Tesoro, MarkAir, PTI, Delta Airlines, Alaska Airlines, Mat-Su Telephone, and Alaska Federal Credit Union are among the beneficiaries of the Fund. Representative Grussendorf spoke in support of funding for RATNet. He asked suggestions for a more agreeable funding source. A roll call vote was taken on the MOTION to adopt Amendment DOA-3A. IN FAVOR: Brown, Grussendorf, Navarre, Foster OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley The MOTION FAILED (4-7). Representative Brown MOVED to adopt Amendment DOA-3B. Representative Kohring OBJECTED. 6 BILL LEGERE, PRESIDENT, ALASKA BROADCASTING SERVICE discussed a plan to phase out state support for public television over a three year period. He provided members with a handout describing the phase out plan (copy on file with Amendment DOA-3B). He stressed that the infrastructure created by the State would be jeopardized by the elimination of state support in FY 96. Representative Brown MOVED to AMEND Amendment DOA-3B by reducing the appropriation amount to $2.8 million dollars. DOUGLAS SAMIMI-MOORE, EXECUTIVE DIRECTOR, ALASKA PUBLIC BROADCASTING COMMISSION assured members that it is not the intent of the Commissioner to shut down any radio stations. He stressed that a number of stations risk loosing their federal matching funds at the current appropriation level. He noted that the federal match requires that there be five full time professional staff not paid by federal funds at each station applying for a match. Most of the stations that would be turned into local access repeaters would not qualify under this restriction. He pointed out that commercial radio may not provide the same service as public radio stations. He observed that a significant reduction of state support would result in the loss of the Alaska Public Radio Network's statewide news coverage. He reiterated that 10 to 12 stations would loose their federal funding and be reduced from a full service station to a local access repeater. Representative Kohring pointed out that the Public Broadcasting Endowment can raise money. He maintained that the public will pay for public radio and television if they want the service to continue. He did not feel that it is the role of government to subsidize radio and television. Representative Brown maintained that there is a high degree of public interest and concern. She alleged that the State should be involved in emergency broadcasting and educational programing. A roll call vote was taken on the MOTION to adopt Amendment 3B. IN FAVOR: Brown, Grussendorf, Navarre, Foster OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell, Therriault, Hanley The MOTION FAILED (4-7). Representative Brown MOVED to adopt Amendment DOA-4 (copy on file). Representative Kohring OBJECTED. Amendment DOA-4 7 would add $100 to the Personnel/Equal Employment Opportunity BRU from the Mitigation Account. Representative Brown observed that there is a current backlog of six months. She maintained that if cases are not settled in arbitrations the State will face an increase in court cases. A roll call vote was taken on the MOTION to adopt Amendment DOA-4. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kohring, Martin, Parnell, Therriault, Foster, Hanley Representatives Kelly and Mulder were absent for the vote. The MOTION FAILED (3-6). Representative Brown MOVED to adopt Amendment DOA-5 (copy on file). Representative Kohring OBJECTED. Amendment DOA-5 would fund the Public Defender Agency at $460.0 thousand dollars and the Office of Public Advocacy at $780.0 thousand dollars. Representative Brown explained that the amendment would fund the activities of the Public Defender Agency and the Office of Public Advocacy for the next year. She asked how members could justify not funding these requirements. She noted that by June 30, 1995 the Office of Public Advocacy expects to have 60 cases that must be continued. She maintained that 57 of the cases are for felonies. Representative Grussendorf spoke in support of the amendment. He emphasized the constitutional responsibility for representation. He maintained that the size of the purse should not determine the quality of justice received. Representative Kohring pointed out that funding has increased from the FY 95 authorized level. He suggested that the Prosecuting Attorney's Office and the Department of Law be equally reduced. Representative Brown noted that if these agencies are to have less cases there needs to be less crime laws. She suggested that these programs be funded in relationship to the rest of the criminal justice system. Representative Navarre pointed out that the Department of Law has the ability to determine which cases they are going to prosecute. The Public Defender Agency does not have the discretion to reject cases referred to them. He noted that the Office of Public Advocacy takes child protection cases. He observed that these agencies have been consistently under-funded. 8 Representative Brown maintained that the FY 96 proposed funding level for the Public Defender Agency is $300.0 thousand dollars less than the FY 95 authorized when the RPL approved by the Legislative Budget and Audit Committee is included. The Office of Public Advocacy will receive $100.0 thousand dollars less than the total FY 95 authorized level including RPL's. Representative Navarre emphasized that inadequate funding will result in a supplemental. Representative Kohring stressed that he would welcome working with the Administration for long term solutions. A roll call vote was taken on the MOTION to adopt Amendment DOA-5. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kohring, Martin, Mulder, Parnell, Therriault, Foster, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (3-7). (Tape Change, HFC 95-67, Side 2) Co-Chair Hanley MOVED to adopt Intent Language DOA-1 and DOA-2 on behalf of Representative Austerman (copies on file). He noted that the intent language would direct the Administration to move towards privatization of public radio and television. Representative Brown suggested that the intent language is inconsistent with the actions of the Committee. She noted that RATNet is not included in the Endowment Trust. Co-Chair Hanley WITHDREW Intent Language DOA-1 and DOA-2. There being NO OBJECTION, it was so ordered. Representative Brown HELD Intent Language DOA-3. Representative Kohring MOVED to adopt Intent Language DOA-4 (copy on file). The intent language provided that no sole service stations be closed, that state funding not be provided to public television, and that the issue be re- visited in one year. There being NO OBJECTION, it was so ordered. NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR requested that "Commission" be deleted from Amendment DOA-1 in order to allow the Administration flexibility to provide that the 9 Public Broadcasting Endowment Trust or the Public Broadcasting Commission administer the funds. Representative Martin spoke against the suggestion. He maintained that an amendment to delete "Commission" would amount to using an appropriation for legislative change. Ms. Slagle emphasized that the intent would be to privatize public broadcasting and would not require statutory language changes. Co-Chair Hanley noted that the Trust is already established in law. He questioned if the suggested amendment would allow the Administration to distribute the funding without going through the Public Broadcasting Commission or the Public Broadcasting Endowment Trust. Ms. Slagle assured Co-Chair Hanley that the appropriation would be directed either through the Public Broadcasting Commission or the Public Broadcasting Endowment Trust. The amendment was not offered. Representative Brown referred to Intent Language DOA-3. She deleted "and RATNet" from the third paragraph of the amendment. She MOVED to adopt Intent Language DOA-3. The intent language would direct the Administration to reduce general fund support for RATNet, to privatize public broadcasting through the Public Broadcasting Endowment Trust, and to consolidate the public television stations into one station. Representative Kohring spoke against government subsidization of public broadcasting. Discussion ensued regarding privatization of publIc broadcasting. Representative Brown asserted that private media is absent from much of the State due to the size of the market. She suggested that there meeds to be some level of government funding in rural Alaska. She emphasized that stations should be encouraged to create an organization that is able to solicit private funds. Representative Martin suggested that private enterprise may feel that they cannot compete against a government subsidized entity. Representative Navarre noted that commercial stations are primarily funded through advertising. He maintained that advertising dollars to support commercial broadcasting are not available. Representative Kohring reiterated his belief that the public will pay for public broadcasting if they want it to continue. He asserted that "big bird is not going to go away." 10 In response to a question by Representative Martin, Representative Brown clarified that the Public Broadcasting Endowment Trust has been legally created. Representative Navarre noted problems in his district regarding commercial station broadcasting. A roll call vote was taken on the MOTION to adopt Intent Language DOA-3. IN FAVOR: Brown, Grussendorf, Navarre, Kohring, Martin, Parnell, Therriault, Hanley OPPOSED: Mulder Representatives Foster and Kelly was absent from the vote. The MOTION PASSED (8-1). DEPARTMENT OF LAW Representative Parnell MOVED to adopt Amendment LAW-1 (copy on file). Co-Chair Hanley explained that the amendment would add funding for the Department of Law, Legal Services. Funding would be provided from the Department of Health & Social Services. He explained that $1.0 million dollars would be take from the Department of Health & Social Services and transferred to the Department of Law. The Waivers Services Component would be reduced by $588.0 thousand dollars. He stated that this would not affect the number of waivers applied. He noted that a $488.0 thousand dollar savings was realized in this component due to additional slowing of the Older Alaskans waiver. The base was adjusted by $140.0 thousand dollars to correct an error. He added that Medicaid Non-facility, Medicaid Facility and General Relief Medial will be reduced by 10.6 percent for a savings of $412.0 thousand dollars. Representative Parnell explained that $1.5 million dollars would be added back to Legal Services, Department of Law. He added that transfers would be made from the Environmental Law and Environmental Compliance Components to Legal Services. This would allow funding in areas of child protection and natural resources. In response to a question by Representative Brown, Representative Parnell explained that at the request of the Office of Management and Budget, 470 funds were withdrawn from the Department of Law's base. The Department of Law will bill the Department of Environmental Conservation for services associated with 470 funds. 11 Representative Brown asked if there would be a reduction in the level of effort for collecting fines, damages and penalties associated with violations. BARBARA RITCHIE, DEPUTY ATTORNEY GENERAL, CIVIL DIVISION, DEPARTMENT OF LAW acknowledged that there would be a reduction in the recouping of fines. She estimated that the reduction in personnel cost would result in a loss of revenues which would exceeded the savings by over $100.0 thousand dollars in fines. Representative Parnell explained that the Department of Law made the decision to share the reductions across the Department. Co-Chair Hanley further explained the savings realized in the Waivers Services Component. He noted that the waiting list has been reduced. There being NO OBJECTION, Amendment LAW-1 was adopted. Representative Brown WITHDREW Amendment LAW-2 (copy on file). DEPARTMENT OF REVENUE Co-Chair Hanley MOVED to adopt Amendment REV-1 (copy on file). He explained that the amendment would add $952.8 thousand dollars for the Mental Health Trust Authority. The amendment also contained intent language directing the Authority to prepare a comprehensive mental health program budget. Representative Martin emphasized that money spent in administration reduces funding available for clients. He maintained that the Authority needs to have legislative oversight. Co-Chair Hanley pointed out that they must submit their budget to the legislature. He observed that the amount was requested by the Authority. He noted that four positions are statutorily required. Representative Brown maintained that the Authority believes it has the ability to spend dollars from the Mental Health Trust Income Account. She expressed concern that the intent language would run counter to the understanding of the settlement. Co-Chair Hanley MOVED to divide the question. He explained that the intent language would be considered separately. There being NO OBJECTION, it was so ordered. In response to a question by Representative Navarre, Co- 12 Chair Hanley noted that the staff and range information was not provided. There being NO OBJECTION, Amendment REV-1A was adopted. Representative Brown summarized that it is not the intent to preclude the Mental Health Trust Authority from exercising their statutory authority and make expenditures consistent with the statute out of the Mental Health Trust Income Account. Co-Chair Hanley stressed that he only wanted to have the Authority submit a list of planned expenditures. Representative Brown WITHDREW her objections. There being NO OBJECTION, Amendment REV-1B was adopted. Representative Martin MOVED to adopt Amendment REV-2 (copy on file). The amendment would delete $600.0 thousand dollars from the Department of Revenue, Oil and Gas Audit. (Tape Change, HFC 95-68, Side 1) Representative Grussendorf spoke against the amendment. He noted that the amendment would reduce an auditor position. He pointed out that each auditor is capable of bringing in millions of dollars. Co-Chair Hanley and Representative Brown spoke against adoption of the amendment. A roll call vote was taken on the MOTION. IN FAVOR: Therriault, Martin, Mulder, Foster OPPOSED: Brown, Grussendorf, Navarre, Parnell, Kelly, Kohring, Hanley The MOTION FAILED (4-7). Representative Brown MOVED to adopt Amendment REV-3 (copy on file). Representative Martin OBJECTED. Representative Brown explained that the amendment would add $140.0 thousand dollars to Treasury Management Safekeeping Fees from the Constitutional Budget Reserve Fund. She argued that the this component needs to be represented "on budget". Representative Martin objected to the use of the Constitutional Budget Reserve as the funding source. He MOVED to AMEND Amendment REV-3, delete "Constitutional Budget Reserve Fund" and insert "general funds". Representative Therriault noted that the amendment to the amendment would raise the cap of the Department of Revenue. Co-Chair Hanley expressed support for using the Constitutional Budget Reserve Fund as the funding source. 13 He stressed that the funds are used to manage the Constitutional Budget Reserve Fund. Representative Martin cautioned that interest will have to be paid on money borrowed from the Constitutional Budget Reserve Fund. A roll call vote was taken on the MOTION to amend the amendment. IN FAVOR: Brown, Martin OPPOSED: Grussendorf, Navarre, Kelly, Kohring, Parnell, Therriault, Foster, Hanley The MOTION FAILED (2-8). There being NO OBJECTION, Amendment REV-3 was adopted. Representative Grussendorf MOVED to adopt Amendment REV-4 (copy on file). He explained that funding would be transferred from Gaming to Child Support Enforcement. He spoke in support of the amendment. He pointed out that child support payments which would result from the amendment would surpass the cost of the amendment. Representative Martin pointed out that the Child Support Enforcement Division is receiving an increase from FY 95. He argued against the amendment. He noted that not all of the approved positions have been filled. He stressed the importance of the Gaming Component. Representative Grussendorf acknowledged the importance of Gaming. He emphasized that a $90.0 thousand dollar transfer into the Child Support Enforcement Division would capture up to $800.0 thousand dollars in federal matching funds. Representative Parnell expressed concern with the funding source. Representative Grussendorf stressed that the funding source reflects the priorities of the Department of Revenue. Representative Brown spoke in support of the amendment. She observed that the Legislative Budget and Audit Committee approved additional positions without approving the necessary funding to implement the positions. She reiterated that federal matching funds would be gained. She added that the State would benefit from the increase in child support payments. Co-Chair Hanley noted that the amendment would drop Gaming to the FY 95 level. The Child Support Enforcement Division would be $600.0 thousand dollars above FY 95. 14 A roll call vote was taken on the MOTION to adopt Amendment REV-4. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault, Foster, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (3-7). Representative Grussendorf MOVED to adopt Amendment REV-5 (copy on file). He explained that the amendment would add an investigators position to the Alcohol Beverage Control Board. Representative Navarre stressed that the increase would be offset by an increase in program receipts. He stressed the effects of alcohol on social programs. Representative Martin observed that the increase in program fees comes from taxes paid by tavern and bar owners. Representative Navarre declared a conflict of interest. Representative Parnell declared a conflict of interest. Both were excused and expected to vote. A roll call vote was taken on the MOTION to adopt Amendment REV-5. IN FAVOR: Brown, Grussendorf, Kelly, Navarre OPPOSED: Kohring, Martin, Parnell, Therriault, Foster, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (4-6). Representative Brown MOVED to adopt Amendment REV-6 (copy on file). Representative Martin OBJECTED. Representative Brown explained that the amendment would restore funding to the Divisions of Oil and Gas Audit and Income and Excise Audit, and the Office of the Commissioner. She maintained that it does not make sense to reduce areas of the budget that are responsible for collection of monies owed to the State. She stressed that the Commissioner serves on 24 state boards with major responsibility. The reduction in the Commissioner's Office would result in a loss of 2 of 4 positions. Representative Martin spoke against the amendment. He 15 alleged that there are diminishing returns on funding spent on audits. He stressed that the level is an increase over Governor Hickel's request. He acknowledged that the funding level is below Governor Knowles' request. Representative Brown pointed out that $265 thousand dollars was deleted from the front section for oil and gas litigation. She noted other reductions. She maintained that there is a significant reduction in these areas. Representative Martin maintained that the front section appropriation amounted to a "slush fund". Representative Brown argued that the front section appropriated funded items related to major oil and gas cases, expert witnesses and auditor travel. A roll call vote was taken on the MOTION to adopt Amendment REV-6. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault, Foster, Hanley Representative Mulder was absent from the vote. The MOTION FAILED (3-7). ADJOURNMENT The meeting adjourned at 5:05 p.m. 16