Legislature(2001 - 2002)
03/14/2001 09:12 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 117(FIN) am
"An Act making supplemental and other appropriations; and
providing for an effective date."
Co-Chair Donley detailed the changes in a new proposed committee
substitute, Version "X". He noted that changes made at the previous
hearing for this bill are incorporated into the proposed committee
substitute. In addition he listed.
Section 12(a), (b) and (c) - Change the effective dates of
several appropriations including Section 12(a), (b) and (c) to
the year 2002, at the request of the Administration. This is
consistent with other appropriations.
Section 10(b) - Added $43,000 at the request of Co-Chair Kelly
to address an emergency relating to clothing at the Youth
Corps program at the Alaska Military Academy.
Section 14(e) - Gives authorization to accept $422,000 federal
funds as a grant through the Department of Transportation and
Public Facilities for Fairbanks Downtown Transit and Cultural
Integration Planning at the request of Senator Wilken. No
general funds are involved in this item. This is to address
the requirements of the federal Clean Air Act and is necessary
to continue receiving federal highway funds.
Co-Chair Kelly moved to adopt 22-GH1085\X as a working draft. There
was no objection and it was ADOPTED.
Amendment #7: This amendment makes the following changes to the
previous committee substitute.
Delete:
Section 4 Department of Environmental Conservation
$26,000 general funds for temporary personnel
Section 5 (d) Department of Fish and Game
$43,900 general funds for temporary personnel
Section 8(b) Department of Law
$150,000 general funds for legal services
Section 11 (a) Department of Natural Resources
$75,000 general funds for gas royalty study
Section 11 (b) Department of Natural Resources
$30,000 general funds for gas pipeline supply-side study
Section 11 (c) Department of Natural Resources
$50,000 general funds for Alaska North Slope gas sales
(reservoir studies)
Section 11 (f) Department of Natural Resources
$293,600 general funds for State Pipeline Coordinator's
Office
Section 12 (c) Department of Revenue
$25,000 general funds for study of state's fiscal regime
for ANS gas development
Total $693,500 general funds
Insert:
Add a new bill section to read:
Sec.__. DEPARTMENT OF NATURAL RESOURCES. The sum of
$693,500 is appropriated from the general fund to the
Department of Natural Resources for gas pipeline development
and related activities for the fiscal years ending June 30,
2001 and June 30, 2002.
Senator Hoffman moved for adoption and noted necessary technical
changes are necessary to conform to the committee substitute,
Version "X".
Senator Ward objected to adoption of the amendment.
Senator Hoffman remarked that the amendment gives the
Administration flexibility and that the amount does not change. He
reminded the members of an appropriation Arctic Power approved the
day prior that gives the organization flexibility to expend the
funds in the best manner to secure a natural gas pipeline in
Alaska.
Senator Ward spoke to his objection stating that he wants the money
to be spent exactly as stipulated in the committee substitute. He
surmised that the governor has the same intentions to spend the
funds to directly promote the gas line project.
Senator Hoffman countered by comparing this project to that of
building a house. He stated that although the floor plan is
established beforehand, changes are inevitable and the "customer"
should have the ability to make those changes.
Senator Ward maintained his objection.
Senator Olson acknowledged the large amount of funds in question
and understood Senator Ward's reservations, but agreed with Senator
Hoffman that flexibility must be maintained.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Austerman, Senator Leman, Senator Ward, Senator
Wilken, Co-Chair Kelly and Co-Chair Donley
ABSENT: Senator Green
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
Amendment #8: This amendment makes the following changes to the
committee substitute.
Delete:
Section 11 (a) Department of Natural Resources
$75,000 general funds for gas royalty study
Section 11 (b) Department of Natural Resources
$$30,000 general funds for gas pipeline supply-side study
Section 11 (c) Department of Natural Resources
$50,000 general funds for Alaska North Slope gas sales
(reservoir studies)
Section 11 (f) Department of Natural Resources
$293,600 general funds for State Pipeline Coordinator's
Office
Total $448,600 general funds
Insert:
Add a new bill section to read:
Sec.__.DEPARTMENT OF NATURAL RESOURCES. The sum of
$448,600 is appropriated from the general fund to the
Department of Natural Resources for gas pipeline development
and related activities for the fiscal years ending June 30,
2001 and June 30, 2002.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson again addressed the need for flexibility.
Senator Ward agreed that a certain amount of flexibility is
necessary, but thought that there was adequate flexibility in the
existing structure.
Co-Chair Donley pointed out concerns raised over the governor
naming the task force the Alaska Highway Gas Line Task Force, which
appears to establish the route of the proposed pipeline. On the
contrary, Co-Chair Donley asserted, the majority of Alaskans prefer
an Alaska route. He added that this item is included in the fast
track supplemental and that the issue would arise again in the
regular supplemental. He stressed that the most urgent issues
should be addressed with the fast track. He noted that the governor
has a $400,000 contingency fund, which could be used towards
portions of the project if a need arose that did not fit the
criteria set forth in the committee substitute.
Senator Hoffman granted that the governor does have the contingency
fund, but noted that this amendment does not request additional
funds, only to give the flexibility to the funds provided.
Senator Wilken understood and appreciated the request for
flexibility, but stated, "The timing is bothering me." He explained
this is because of the allocation the Committee approved for Arctic
Power the day prior. He stressed he wanted the funds from this
amendment to be "targeted" to the state agencies as requested by
the agencies.
Senator Hoffman also supported the efforts of the past month but
stressed there is no guarantee there would not be changes after the
committee substitute is passed.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Wilken, Senator Austerman, Senator Leman, Senator
Ward, Co-Chair Kelly and Co-Chair Donley
ABSENT: Senator Green
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
Amendment #9: This amendment changes Section 1 of the committee
substitute to read as follows.
Section 1. DEPARTMENT OF ADMINISTRATION. The sum of
$195,000 [$100,000] is appropriated from the general fund to
the Department of Administration, division of Alaska longevity
programs, pioneers homes, for increased costs for nurses [and
nurse's assistants] for the fiscal year ending June 30, 2001.
Senator Olson moved for adoption.
Senator Ward objected.
Senator Olson relayed his experience as a physician regarding the
need for qualified nursing staff in the Pioneers' Homes.
Senator Austerman objected to the $100,000 already appropriated,
saying that he thought it poor policy for the legislature to agree
to fund salary increases that the Administration contracted without
consulting the legislature first. He admitted that the budget cuts
over the past five years "got ourselves into this".
Senator Hoffman stated that the intent is to provide services in
the facilities and that the state is having difficulty recruiting
and retaining nurses. He stressed that the field is competitive and
that the Pioneers' Homes are loosing staff. He suggested that to
deny this request due to the five-year budget philosophy would not
alleviate the problem.
Senator Austerman did not disagree that nurses should receive a pay
increase. However, he stressed this should be done as part of the
regular budget process.
Co-Chair Kelly remarked that the regular budget cycle is the
appropriate process to address this issue, and he anticipated it
would receive support at that time.
Senator Olson hoped that the Committee, as a responsible body,
would act as such, given that many members might someday become
residents of the Pioneers' Homes. He spoke to the shortage of
doctors and nurses in rural Alaska.
Co-Chair Donley stated, "This issue is really about pay raises." He
detailed the governor's supplemental budget request for funds to
pay for the pay increases the Department of Administration granted
these employees without prior approval from the legislature. He
asserted this action equated to "very extraordinary circumstances."
He noted that when discussing the matter with the department, he
learned that when comparing state salaries to private sector
salaries, the department had not taken benefit packages into
account. While he expressed that he does support the pay raises for
nurses, he opposed the Administration's method in this instance. He
assured that the matter would again be addressed during the regular
budget cycle. He took Senator Olson's observations to heart.
Co-Chair Donley noted that the provision allowing the funds to be
spent on nurses' assistants is not a requirement, but an option to
give flexibility for those duties that could be performed by an
assistant. He pointed out that sometimes nurses are required to
perform some duties for which they are overqualified. He stated
these funds could be used to increase nurses' salaries or hire
additional nurses. He understood the requested amount is the entire
amount needed if all of the existing vacancies were filled.
Co-Chair Donley stated that although the pay raises were necessary,
he did not think the manner in which they were granted are
appropriate. He wanted to send the message that the actions of the
Administration must be "discouraged"
Senator Hoffman requested to hear from the Administration as to the
seriousness of the immediate need.
DAN SPENCER, Director, Division of Administrative Services,
Department of Administration, clarified that the raise is already
being paid to the nurses and that the increased wage would be paid
to all new hires as well. He warned that if this request were not
granted, some of the vacant positions would have to be held open.
Senator Ward asked if an option of contracting out nursing services
was considered before the decision was made to grant the pay raise.
Mr. Spencer responded that this practice is not employed in the
Pioneers' Homes, except for some on-call positions. These
positions, he described as qualified nurses available for work on
short notice.
Senator Ward asked if some services are currently outsourced.
Mr. Spencer affirmed and again told of the on-call part-time
positions that do not include benefits.
Senator Ward asked if any consideration was given to the option of
contracting out additional services at a higher salary but without
benefits.
Mr. Spencer responded that it was not.
Senator Ward suggested the department do so.
Mr. Spencer understood the point, but noted that approximately half
of the on-call positions are vacant.
Senator Ward suggested that if the funds could be put toward
funding the outsourced services without providing benefits, the
state could become competitive.
Co-Chair Donley pointed out that the appropriation gives $100,000
and that the estimated cost of the increase is $43,000 per month,
which would be adequate for the remainder of the fiscal year.
Co-Chair Kelly stressed that the situation is not critical given
that the matter would be addressed again before the end of the
session. Meanwhile, he assured, no staff would go without pay or
would be laid off. In addition, he noted that the state would still
be competitive because the raises have been granted.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator Leman, Senator Ward, Senator Wilken, Senator
Austerman, Co-Chair Kelly and Co-Chair Donley
ABSENT: Senator Green
The motion FAILED (2-6-1)
The amendment FAILED to be adopted.
Co-Chair Kelly offered a motion to move SCS CS HB 117 (FIN), 22-
GH1085\X, from Committee.
There was no objection and the bill MOVED from Committee.
Co-Chair Donley thanked George Utermohle of the Division of Legal
and Research Services and drafter of HB 117, for his efforts.
AT EASE 9:50 AM / 10:03 AM
[Note: Portion of audio tape is blank as tape machine was not
turned off.]
SFC 01 # 39, Side B 10:03 AM
Co-Chair Kelly chaired the remainder of the meeting.
| Document Name | Date/Time | Subjects |
|---|