Legislature(1995 - 1996)
02/22/1995 01:40 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 137
"An Act making supplemental appropriations for
operating expenses of state government for fiscal year
1995; and providing for an effective date."
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR continued her
review of HB 137.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
RON LIND, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES explained
that Sections 41 - 43 relate to the extreme snow falls
experienced in the state of Alaska during FY 95. He stated
that Section 41, Highways and Aviation Snow Removal was
reduced to $2,170.0 million dollars. He added that Section
42, which funds maintenance and operations of statewide
facilities for snow removal could be reduced to $49.8
thousand dollars. He observed due to heavy snow falls,
Section 43, Anchorage International Airport needs to be
increased to $350.0 thousand dollars.
Mr. Lind observed that Sections 44 - 47 are related. He
noted that the Department has received, in past years,
between $1.0 and $1.5 million dollars in capital
appropriation for emergency repairs to the aviation or
highway system. He explained that no appropriation was made
in FY 95 with the understanding that emergencies would be
identified and selected items submitted to the Legislature.
He briefly described projects listed in Sections 44 - 47.
Mr. Lind explained that spring maintenance was identified as
a problem area. Section 48 would appropriate $750.0
thousand dollars for spring maintenance. The funding would
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be used for gravel resurfacing, leveling frost heaves with
asphalt and pot hole patching. He added that approximately
$150.0 thousand dollars will be allocated per district.
In response to a question by Representative Martin, Mr. Lind
clarified that there is some money for spring maintenance in
the Department's budget. He stressed that the deferred
maintenance amounts in the Department's capital budget was
reduced in FY 95. He did not think that the supplemental
appropriation would result in a reduction to their FY 96
budget. Representative Navarre spoke in support of Section
48. He emphasized that delayed maintenance will result in
more costly repairs.
Mr. Lind discussed Section 49. He noted that the Department
owes $230.3 thousand to the Department of Law for litigation
related to the Copper River Highway. He explained that the
Department of Transportation and Public Facilities is billed
by the Department of Law. He noted that most of the $2.0
million dollars paid to the Department of Law comes from
federal funds.
Representative Therriault observed that the amount is
reflected in the Department of Law as interagency receipts.
In response to a question by Co-Chair Hanley, Mr. Lind
clarified that the appropriation would pay for attorney
legal costs which were not asked for by the Department. He
explained that the Department is unable to anticipate the
exact expenditure.
In response to a question by Representative Brown, Mr. Lind
stated that the charge has been paid by the Department of
Law. If the appropriation is not funded the accounting
system would show that the Department of Law spent money
that the Legislature appropriated with the assumption that
they would be reimbursed, but for which they were not
reimbursed. He noted that the Legislature can write off the
revenue that the Department of Law did not receive. The
effect on the General Fund would be the same.
Representative Parnell asked how the Department of Law
billed the Department of Transportation and Public
Facilities. Mr. Lind explained that the Department of Law
submits a billing by case number showing which attorneys
spent how many hours working on a project.
Mr. Lind explained that Section 50 also reimburses the
Department of Law for state right-of-way litigation. Ms.
Slagle noted that some of the costs may pay for outside
counsel.
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Mr. Lind discussed Section 51. This section pays personnel
costs for two airport employees that were laid off when they
were unable to pass certification by the Alaska Police
Standards Council. The employees failed the vision portion
on the test. The court ordered that you cannot demonstrate
that an employee cannot do a job that they have been
employed to do for 10 to 12 years. The employees were put
back to work.
Representative Mulder suggested that the settlement terms
could be influenced by a preknowledge of the amount
appropriated for settlement by the Legislature.
GARY HAYDEN, DIRECTOR, ALASKA MARINE HIGHWAY SYSTEM,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES discussed
Section 52. He noted that the Alaska Marine Highway System
Fund is facing a $1.6 million dollar deficit for FY 95. He
acknowledged that revenues sales were down approximately
$400.0 thousand dollars. He added that the Leconte was
brought into service in November and December. The decision
to run the Leconte during November and December cost an
additional $200.0 thousand dollars. He stressed that the
Columbia has been laid up an addition 4 weeks in an attempt
to reduce costs. He added that an attempt is being made to
encourage ridership. He discussed factors contributing to a
reduction in ridership.
Co-Chair Foster questioned how much the Department of
Transportation and Public Facilities pays to the Department
of Labor. Mr. Lind responded that the Department of
Transportation and Public Facilities pays very little for
violations to the Department of Labor.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Ms. Slagle explained that Section 53 would extend the lapse
date for Rural Development Grants. The grants were part of
the operating budget.
Ms. Slagle noted that Section 54 funds the city of Egegik's
first year organization grant.
DEPARTMENT OF CORRECTIONS
Ms. Slagle observed that Section 55 represents a fund source
change for prison phones of $200.0 thousand dollars from
general fund program receipts to general fund dollars. She
explained that the system is not in place to track receipt
of the funds from the prisoners.
Ms. Slagle stated that Section 56 would pay $39.3 thousand
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dollars to implement the transfer of the community jails
from the Department of Public Safety.
Ms. Slagle noted that Section 57 would fund $1,611.5 million
dollars in contempt of court fines related to the Cleary
settlement.
Ms. Slagle explained that Section 58 pays $457.0 thousand
dollars in legal personnel actions for pending decisions.
UNIVERSITY OF ALASKA
Ms. Slagle noted that Section 59 pays $130.0 thousand
dollars for snow and ice removal at the Anchorage and Prince
William Sound Campuses.
MARY LOU BURTON, STATEWIDE BUDGET DIRECTOR, UNIVERSITY OF
ALASKA noted that Section 68 funds $153.0 thousand dollars
for the cost of removing the panels on the Butrovich
Building. Section 69 is $1,326.0 million dollars for
replacement of the panels. She explained that the
University had planned to wait for the litigation settlement
before replacing the panels. She stated that the University
was informed that the panels needed to be taken off
immediately because they were in danger of falling and
causing injury. The panels were removed at a cost of $153.0
thousand dollars from the University's Risk Loss Prevention
Fund. Section 68 would replace the funds used to remove the
panels. She stated that the University would be willing to
make the appropriation of Section 69 conditional to repay
any amount to the general fund for any litigation proceeds.
Ms. Burton explained that the appropriation needs to made in
the supplemental in order to allow work to proceed this
summer. If the panels are not replaced further
deterioration may occur. Litigation is being pursued
against the contractor, manufacturer and the architect. The
University has recovered $1.0 million dollars in insurance.
(Tape Change, HFC 95-28, Side 2)
Representative Navarre questioned the University's
motivation to pursue the case if the state prepays the cost
of replacement. Ms. Burton assured him that the University
will pursue litigation to recover costs.
ALASKA COURT SYSTEM
ARTHUR H. SNOWDEN, II, ADMINISTRATIVE DIRECTOR, ALASKA COURT
SYSTEM stated that Section 60 will support trial costs
associated with the North Slope Royalty Case.
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Mr. Snowden noted that Section 61 will pay $51.7 thousand
dollars for retroactive magistrate pay based on a
reclassification. He observed that Section 61 is a one time
cost.
In response to a question by Representative Parnell, Mr
Snowden clarified that the North Slope Royalty case will go
to trial in April.
STATEWIDE
Ms. Slagle explained that Section 62 pays miscellaneous
claims and stale-dated warrants that cannot be paid without
an appropriation for the lapsed funds. She stressed that
misplaced bills or improperly billed claims result in funds
lapsing.
CAPITAL SUPPLEMENTAL REQUESTS
Ms. Slagle stated that Section 63 appropriates to Alaska
Housing Finance Corporation (AHFC) $258.0 thousand dollars
for low income weatherization after Kobuk River flooding.
Ms. Slagle noted that Section 64 appropriates $1.8 million
dollars to AHFC for the supplemental housing program.
BOB BARATKO, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE explained that Section 64 is an
underestimate of the Program's need. He noted that another
$6.6 million dollars was identified by HUD. The $1.8
million dollar appropriation will make the federal match.
Ms. Slagle observed that Section 63 can be reduced to $149.1
thousand dollars.
Ms. Slagle noted that Sections 65 - 67 are capital projects
in the Department of Public Safety. She briefly review the
projects. Section 65 appropriates $41.6 thousand dollars
for the Civil Air Patrol hangar roof at Merrill Field.
Section 66 appropriates $100.0 thousand dollars for the city
of Homer jail upgrade to code compliance. She observed that
the appropriation is needed to assure life and safety.
Co-Chair Hanley expressed concern that the state will not be
reimbursed. He noted that the state is negotiating
contracts that will upgrade the amounts paid to communities.
He observed that some communities will receive an additional
capital appropriation.
Representative Parnell noted that many of the community
jails suffer from building code violations.
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HB 138 was HELD in Committee for further discussion.
(Tape Change, HFC 95-29, Side 1)
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