Legislature(1997 - 1998)
04/24/1998 09:40 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 326
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
SENATE CS FOR CS FOR HOUSE BILL NO. 326(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
Co-chair Pearce introduced SCS HB 325 and SCS HB 326 the
operating budget documents. After the adoption of the
Legislative subcommittee closeout, Governor's subcommittee
closeout and the University subcommittee closeout, Co-chair
Pearce said the committee would review the front section
and begin amendments.
Senator Sharp MOVED adoption of the subcommittee budget
closeout on the Legislative budget and that it be
incorporated into HB 325. WITHOUT OBJECTION the
Legislative budget was ADOPTED into HB 325.
Senator Sharp MOVED adoption of the subcommittee budget
closeout on the Governor's budget and that it be
incorporated into HB 325. WITHOUT OBJECTION the Governor's
budget was ADOPTED into HB 325.
Senator Adams MOVED adoption of the subcommittee budget
closeout on the University of Alaska budget and that it be
incorporated into SB 229 and 230. He noted the
subcommittee also included two Letters of Intent that the
House adopted. There was no funding for salary increase.
He called the committee's attention to the front section #7
and section #32.
Senator Donley asked if there was anything addressing
intent language regarding division of the two campuses?
(note brief microphone malfunction) Senator Adams noted
the intent language was in the members' packets. There was
no intention to divide the two campuses.
Senator Sharp clarified that the motion for the adoption of
the subcommittee budget closeout on the University of
Alaska should have been for HB 325 and 326. Senator Adams
stood corrected.
WITHOUT OBJECTION the University of Alaska subcommittee
budget closeout was ADOPTED into HB 325 and 326.
Co-chair Pearce asked the committee members to go to the
front section.
Co-chair Pearce explained UNIV #1 and said there was an
unallocated reduction to the University of Alaska single
BRU of $4,453.2 million GF and then an add to the
University of Alaska Statewide Programs and Services for
contract funding. The amendment, she explained, was to the
Governor's requested number. The amendment would fully
fund, with new general fund monies, the contractual
agreements the University of Alaska brought before the
Legislature. The total funding was $2,300.1 million. This
would keep stable funding for the University at the FY '98
level and add $2 million for the contracts.
(The committee took a brief at ease.)
UNIV #1 MOVED by Senator Donley. Senator Adams OBJECTION.
He moved an amendment to the amendment placing the number
in parenthesis to a new number of $3,640.2 million.
Senator Torgerson objected. Senator Adams clarified for
Co-chair Pearce that this new number was still a negative.
He further explained his amendment to UNIV #1 and said they
were taking he number of the following contracts equal to
that number so it was equal. If they continued to leave
$4,445.3 million in the budget there would be an
unallocated reduction from the University that they would
have to cut their budget in the amount of $813,000. Then
it would show the budget as taking a cut. However, the new
number would still fully fund contracts. If there were any
questions the University could come forward and testify to
his amendment.
Senator Torgerson said they were funding $2.3 million over
the FY '98 level and felt the original amendment was
adequate.
Co-chair Pearce asked for a roll call vote. By a vote of 6
nays (Pearce, Sharp, Donley, Torgerson, Parnell, Phillips
and 1 yea (Adams) the amendment to UNIV #1 FAILED.
Senator Adams WITHDREW his objection to UNIV #1. WITHOUT
OBJECTION UNIV #1 was ADOPTED.
Co-chair Pearce requested members to look at the draft
front section, "L" by Mr. Utermohle, dated 4/24/98. She
said she appreciated the time Mr. Utermohle, Legislative
Finance staff and her staff put into this draft during the
early morning hours. In reviewing the draft she noted
section 7 was the CBR and section 9 differed from the House
figures. Section 22 at line 16 would change due to the
House inadvertently leaving out the new contracts for the
confidential employees association. By her recollection
the number should be around $76,000. On page 7, lines 13
through 19 represent the funding for the University
contracts that were just added to the back section. Line
29 (f), all of pages 8, 9 and 10 through line 16 will have
to have their numbers adjusted due to the changes in
section 22 and the University. In continuing her review
she said sections 23 through the end of the front section
mirrored the House figures. As a final note, section 2
also differed from the House in that they had dropped the
AIDEA section and now requested the Senate to put it back
in. She said as soon as the new draft was completed it
would be copied for members and also would be available to
the public.
Senator Adams questioned page 11, section 25 regarding
State debt and other obligations. In particular, line 9
(c) which was the $46 million appropriated to the general
fund, he did not believe was the total amount for the debt
service. He suggested placing another $34 million out of
the cigarette tax to equalize that amount. He also asked
what was being done with the collected amount from last
year. His interest was specifically in the cigarette tax.
Co-chair Pearce said they were not planning here nor in the
operating budget to deal with the FY '98 collection of the
tobacco tax. She concurred with Senator Adams regarding
the approximate $60 million cigarette tax collection in FY
'98 that had not been dealt with. She said as soon as
there was a collective decision of what to do with those
funds it would be dealt with in the capital reappropriation
bill. It may be that the Legislature, at the end of the
session, will use that money for some FY '99 costs.
Senator Adams further inquired to section 9 and would the
language in that section cover the no appropriating of new
program receipts or federal funds? Co-chair Pearce said
the present language was different than the bill that
passed. Senator Adams said he would take a closer look at
that section. Co-chair Pearce did further explain that the
Senate language would not allow the RPL process because
they did not accept any federal funds other than those
identified in the document. Any new federal funds would
have to wait until next year because they would not come
before the Legislature this election year as RPL's. They
would also not be subject to the 45-day Rule.
Co-chair Pearce then called DOA amendment #6. Senator
Donley said this was a reduction in the money the
department did not think they needed in order to free it up
to pay for some other things.
(There followed a brief at ease at approximately 10:15 a.m.
Co-chair Pearce reconvened the committee at 10:20 a.m. with
all members present.)
DOA #6 was MOVED by Senator Phillips. Senator Adams had no
objection. WITHOUT OBJECTION the amendment was ADOPTED.
Co-chair Pearce said this amendment would take the
Longevity Bonus grants line in the FY '99 budget to cover
expected longevity bonus payments in FY '99.
Co-chair Pearce then requested Senator Torgerson to work
the committee through the Department of Transportation
amendments.
(A very brief at ease was taken by the committee at the
request of Senator Torgerson.)
Senator Torgerson said that most of the amendments had to
do with a compromised package for the operation of the
Malaspina as a day boat and the starting up of other feeder
vessels and day boats in the rest of the Southeast Region.
He felt most of this could have been handled through the
normal budget process. But it had been necessary to send a
letter to the Finance Committee co-chairs threatening to
come out with a zero budget for the Department of
Transportation and Public Facilities in order to get them
to the table. The amendments to be presented today are
just to the operating budget; however, there will be a
series of amendments for the capital budget. These would
basically go to the Southern Region to start supplying
federal matching monies for the Inter-Island Authority and
to get monies for access across certain areas of land and
to complete the studies as to where facilities should be
located.
He said the department asked for about $2 million for
operation of the Malaspina in the Lynn Canal. Most
everyone rejected that request saying it was too high.
Recently the department returned with a request for
$577,000 in general funds as a subsidy to operate the
Malaspina. Senator Torgerson still felt this amount was
too high and felt the vessel could be operated at break-
even. He further explained that a packet explaining the
amendments had now been passed out to committee members.
The amendments would have a zero impact on the budget. He
said they would give the department authorization for half
of the requested $577,000 which would come out of Southeast
Vessel Operations. More directly, he said, it would come
out of the fuel component because the price of fuel has
dropped and there is a little leeway room there. He also
expected the department to find concessions within their
bargaining unit to allow the vessel operate. Senator
Torgerson said he was further suggesting that monies be
appropriated for the Kennicott and the Malaspina in one BRU
because there is still a level mistrust. This would make
the Malaspina operate as a back up to the Kennicott. He
feels that public pressure and sentiment on running the
Malaspina will keep the department to their course as far
as spending money for the operation. He said this was a
four-year plan and the department did not feel they would
require any subsidy for FY years 2001 and 2002. The
department said they only needed approximately $1.7 million
in FY '99 for needed repairs on the Malaspina. They will
be able to run the vessel for the next four years with
maintenance just to keep it Coast Guard certified.
DOT #1 was MOVED by Senator Torgerson. He further
explained that another difficulty with the department was
not letting travel agents into the reservations system. He
said the Legislature had appropriated somewhere around $3.5
million for new computer reservations system. The system
is up and running, however, the department was reluctant to
open that up to travel agents. When one calls the 800
number they cannot get through and therefore the department
is losing money. It should be opened up to the private
sector through travel agents in order to get folks taken
care of.
The Senator said at yesterday's meeting the department
agreed to open up the travel agent services in Sitka,
Ketchikan, Wrangell, Juneau and Skagway. He would like to
submit this intent language in case the department does not
carry through.
Senator Phillips asked if Haines travel agents were
included? Senator Torgerson said those cities listed were
the ones where the largest need would be.
Senator Parnell had questions on the language regarding the
department putting out the bid for travel agent services.
He noted the intent language says the Department of
Transportation will offer travel agent services and said
the language was pretty loose. He did not want to build
travel agencies within the department other than already
existed. He suggested the word "offer" be replaced by
"contract for". Senator Torgerson concurred.
Senator Parnell MOVED amendment to DOT #1, deleting "offer"
on line one and inserting "contract for". WITHOUT
OBJECTION the amended DOT #1 was ADOPTED.
DOT #11 was MOVED by Senator Torgerson. He said this would
set up a separate BRU combining the Kennicott and the
Malaspina as one unit and the increased authority in the
amount of $2,767,351. This would authorize the department
to draw down this amount on the Marine Highway fund.
WITHOUT OBJECTION amendment DOT #11 was ADOPTED.
DOT #2 was MOVED by Senator Torgerson. This amendment
would take $288,591 out of Southeast Vessel Operations and
put it into the BRU in DOT #11. Senator Adams OBJECTED.
He asked what the funding source was. Senator Torgerson
responded saying from Southeast Vessel Operations. Senator
Adams WITHDREW his objection. WITHOUT OBJECTION amendment
DOT #2 was ADOPTED.
DOT #3 was WITHDRAWN by Senator Torgerson.
DOT #4 was MOVED by Senator Torgerson. He noted a drafting
error and said there should be no brackets around the
amendment as it was an add back of $78,000 in authority.
He advised the committee that the longshoring agents had
upped their rates substantially. WITHOUT OBJECTION
amendment DOT #4 was ADOPTED.
DOT #5 was MOVED by Senator Torgerson. He said this was
intent language having to do with securing right-of-way and
starting preliminary engineering for land across the
Cleveland Peninsula. It is one of the identified links for
the feeder vessel component in the Southeast Region. To
date the subcommittee is concerned that there is not a lot
of action to secure this right-of-way. That is why this
letter of intent is being offered. WITHOUT OBJECTION
amendment DOT #5 was ADOPTED.
DOT #6 was MOVED by Senator Torgerson. He said this
amendment would take $90,000 out of the Southeast Shore
Operations, which was recognizing the agreement with
British Columbia. That agreement forgave $90,000/year for
the next nine years in tie-up fees at the Prince Rupert
dock. WITHOUT OBJECTION amendment DOT #6 was ADOPTED.
DOT #7 was MOVED by Senator Torgerson. Senator Adams
OBJECTED. Senator Torgerson said this was a clean up of
lapsed funds given to the department last year. He
explained the department had reduced the authorization on
the federal portion but kept the general fund portion.
Senator Adams said if DOT #7 were adopted there would be
some impact on Southeast Support Services in their funding.
Some federal funds were needed through the utilization of
general fund dollars. He said his main objection was that
this was being deleted in this particular amendment and
these federal funds were at best difficult to get. Senator
Torgerson explained that it was a one-time lapse.
Co-chair Pearce noted the objection of Senator Adams and
requested a roll call vote. By a vote of 6 yeas (Pearce,
Sharp, Donley, Torgerson, Parnell, Phillips) and 1 nay
(Adams) DOT #7 was ADOPTED.
DOT #8 was MOVED by Senator Torgerson. He explained this
was also a one-time lapse being denied. WITHOUT OBJECTION
amendment DOT #8 was ADOPTED.
DOT #9 was MOVED by Senator Torgerson. Senator Adams
OBJECTED. Senator Torgerson explained this was $800,000
the department requested to go into the Highway
Stabilization Fund. He said it was being denied. Senator
Adams said anytime changes were made to a department or
division the impact was usually not realized. In order to
accomplish the changes some funding was needed to help.
Senator Parnell asked what the size of the fund was and its
purpose. Senator Torgerson said he thought the balance was
around $40 million. He said this was made up of funds from
spare sales for one year. These were put into a forward
fund for the following year.
Co-chair Pearce noted the objection of Senator Adams and
requested a roll call vote. By a vote of 6 yeas (Pearce,
Sharp, Donley, Torgerson, Parnell, Phillips) and 1 nay
(Adams) DOT #9 was ADOPTED.
Senator Torgerson WITHDREW amendment DOT #12.
DNR #1 was MOVED by Senator Torgerson. Senator Adams
OBJECTED. Senator Torgerson said this amendment would
correspond with DOT #5, which was a letter of intent asking
for the right-of-way to be secured across the Cleveland
Peninsula, needed for a feeder vessel in the Southeast
Region. Senator Adams WITHDREW his objection. WITHOUT
OBJECTION amendment DNR #1 was ADOPTED.
Senator Torgerson said presently he had no more amendments.
However, he may have further intent language to be offered
on Sunday to insure the department does not come back for
supplementals for the operation of the Malaspina.
Senator Adams advised that the minority may have further
amendments for Sunday also.
DOA #1 was MOVED by Senator Adams. Co-chair Pearce noted
OBJECTION. Senator Adams said this amendment referred to
the Office of Public Advocacy. In looking at the annual
cost of this particular agency it is entirely case driven.
This caseload is very high and it is necessary to look at
the supplemental funding. Every time the budget is
shortchanged it is necessary to consider supplementals. He
noted that the guardian ad litem responsibilities had
greatly increased their workload. Also the ratio of civil
to criminal cases in the State has increased. He did not
believe the offices of the Public Advocate nor Public
Defender had abused the kinds of cases they took on. He
noted that judges of the Alaska Court System ordered the
cases to be taken by these two offices. He further said he
was open to any compromise figure. Otherwise the committee
will be here next year discussing the same matters in a
supplemental budget.
(Tape #140 switched to side B, log #591 at 10:45 a.m.)
Co-chair Pearce noted an objection and requested a roll
call vote. By a vote of 1 yea (Adams) and 6 nays (Pearce,
Sharp, Donley, Torgerson, Parnell, Phillips) amendment DOA
DOA #2 was MOVED by Senator Adams. Co-chair Pearce
OBJECTED. Senator Adams explained that he was asking for
approximately $1.7 million for the Office of the Public
Defender. He said it was the same argument as for DOA #1.
This was also a caseload driven office; eighty-eight
percent in criminal cases and twelve percent in civil
cases. Neither the office of the Public Defender nor the
Public Advocate abused the cases they were required to
take.
Senator Donley did not feel that Legislative changes was
increasing the costs of the agency. He felt significant
progress had been made in the criminal justice laws over
the past five to six years that have reduced the cost of
the administration of criminal justice and reduced the cost
to the public defenders. He cited conspiracy laws, finger-
printing of minors law, automatic waiver of juvenile laws,
laws on DNA testing and laws on 404(b) regarding rules of
evidence. It is therefore, not true, to say every new law
passed by the Legislature increases the cost in this area.
He said many of the reforms were reducing costs.
Senator Adams said a decrease in prosecution had not been
seen. He said something needed to be done about the
caseloads, citing too many cases per individual attorney.
It needs to be taken care of; however, the Legislature was
not doing it.
Co-chair Pearce noted an objection and requested a roll
call vote. By a roll call vote of 1 yea (Adams) and 6 nays
(Pearce, Sharp, Donley, Torgerson, Parnell, Phillips) DOA
DOA #3 was MOVED by Senator Adams. Senator Torgerson
OBJECTED. Senator Adams explained this amendment had to do
with economic development. It had two increments; one in
the amount of $200,000 and the second in the amount of
$50,000. Last year there was a twenty-five percent
increase in drilling permits, mainly in his district. The
loss of the first increment in the amount of $200,000 would
result in a negative impact to the State and the oil
industry. The other $50,000 increment covered the State's
membership in International Oil and Gas Commission. He
felt the State needed to be involved in this commission
because of its active role in supporting and lobbying for
issues such as the continuation of trying to open ANWR and
trying to maintain the Resource Conservation Reclamation
Act.
Co-chair Pearce noted an objection and requested a roll
call vote. By a roll call vote of 1 yea (Adams) and 6 nays
(Pearce, Sharp, Donley, Torgerson, Parnell, Phillips) DOA
Senator Adams WITHDREW amendments DOA #4 and DOA #5.
Senator Parnell asked what the House did regarding the
budgets for Office of Public Advocate and Office of the
Public Defender. Co-chair Pearce indicated that both have
increases over FY '98, however not to the extent of the
Governor's request.
Co-chair Pearce noted the Senate Floor bells had rung and
asked that Senate Finance reconvene again on Sunday
afternoon at 2:00 p.m. She advised Senator Adams the
committee would commence with his amendments. She hoped
the committee would also adopt the front section at that
time upon its completion.
ADJOURNMENT
Co-chair Pearce recessed the committee at approximately
10:55 a.m.
SFC-98 -12- 4/24/98
| Document Name | Date/Time | Subjects |
|---|