Legislature(1993 - 1994)
03/29/1994 08:30 AM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 370
"An Act making appropriations for the operating and
loan program expenses of state government and to
capitalize funds; and providing for an effective date."
PAUL FUHS, ACTING COMMISSIONER, DEPARTMENT OF COMMERCE AND
ECONOMIC DEVELOPMENT discussed program receipts. He noted
that three-fourths of the department's budget is comprised
of program receipt authority. He noted that the
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Subcommittee's proposed budget represents a 10 percent
general fund reduction for the Department of Commerce and
Economic Development. He estimated the reduction at $800.0
thousand dollars beyond the proposed House Majority cap. He
observed that there has been a $5.5 million dollar reduction
over FY 93.
Representative Navarre MOVED to ADOPT AMENDMENT 1 (copy on
file). Amendment 1 would reinstate $130.0 general fund
dollars for the Alaska Film Office. Co-Chair MacLean
OBJECTED. She maintained that the Division's staff can
provided technical assistance to film companies.
Representative Navarre maintained that every dollar invested
in this component achieves a 93 to 1 return. A roll call
vote was taken on the MOTION to adopt AMENDMENT 1.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
MacLean, Larson
The MOTION FAILED (5-6).
Representative Navarre MOVED to ADOPT AMENDMENT 2 (copy on
file). Amendment 2 would add $1.5 million general fund
dollars for the Alaska Tourism Marketing Council.
Co-Chair MacLean asserted that the Subcommittee's reduction
of $3.0 million dollars is high. She MOVED to AMEND
Amendment 2 to delete "$1.5" and insert "1.0" million
dollars. She noted that provisions contained in the ominous
bill are aimed at raising program receipts through program
fees in the Department of Commerce and Economic Development.
Discussion pursued regarding potential fee increases.
Representative Martin OBJECTED to the motion to amend.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell,
Therriault, Foster, Hanley, MacLean, Larson
OPPOSED: Martin
The MOTION PASSED (5-6).
Representative Parnell MOVED to AMEND Amendment 2 to change
the funding source from the General Fund to International
Trade Offices. Co-Chair MacLean spoke against the amendment
to the amendment. Commissioner Fuhs expressed opposition to
the amendment to the amendment. He emphasized the
importance of the International Trade Offices. He discussed
funding for international offices through the Division of
Tourism.
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Representative Brown provided members with AMENDMENT 3 (copy
on file). She discussed amendment 3 as it relates to
amendment 2. She observed that amendment 3 would close the
international trade offices in Japan, Korea and Taiwan.
Representative Martin stressed the importance of
international trade. Representative Grussendorf objected to
the amendment to amendment 2, to change the funding source.
Co-Chair MacLean detailed projects promoted by the
international trade offices.
Representative Brown referred to newspaper accounts that the
Tokyo Office has stopped providing assistance to small
businesses and is concentrating almost exclusively on
natural gas marketing. Commissioner Fuhs disagreed with
Representative Brown's assessment of the Tokyo office's
promotion of Alaskan products and businesses. He detailed
smaller projects supported by the international offices. He
maintained that 95 percent of the work done by international
offices is on behalf of smaller projects.
A roll call vote was taken on the MOTION to add $1.0 million
dollars to the Alaska Tourism Marketing Council and delete
$696.0 thousand dollars from the Offices of International
Trade.
IN FAVOR: Therriault, Brown, Hoffman, Navarre, Parnell
OPPOSED: Grussendorf, Foster, Hanley, Martin, Larson
MacLean
The MOTION FAILED (5-6).
A roll call vote was taken on the MOTION to adopt AMENDMENT
2 as amended to $1.0 million dollars.
IN FAVOR: Brown, Hoffman, Grussendorf, Navarre, MacLean
OPPOSED: Foster, Hanley, Martin, Parnell, Therriault,
Larson
The MOTION FAILED (5-6).
Representative Brown MOVED to ADOPT AMENDMENT 3 (copy on
file). Representative Martin OBJECTED. Representative
Brown emphasized that funding of the International Trade
component is a lower priority than the state's mandatory
obligations.
Co-Chair MacLean spoke against amendment 3. Commissioner
Fuhs noted that the International Trade component was
reduced 25 percent by the House Finance Subcommittee.
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Representative Parnell MOVED to AMEND Amendment 3 to add an
increment of $696.0 thousand dollars to the Alaska Tourism
Council. Co-Chair MacLean OBJECTED. A roll call vote was
taken on the MOTION.
IN FAVOR: Therriault, Brown, Hoffman, Navarre, Parnell
OPPOSED: Grussendorf, Foster, Hanley, Martin, Larson
MacLean
The MOTION FAILED (5-6).
Representative Brown observed that amendment 3 would retain
funding for the Anchorage International Trade Office.
A roll call vote was taken on the MOTION to adopt AMENDMENT
3.
IN FAVOR: Hanley, Hoffman, Navarre, Parnell, Therriault,
Brown
OPPOSED: Grussendorf, Martin, Foster, MacLean, Larson
The MOTION PASSED (6-5).
Representative Navarre MOVED to ADOPT AMENDMENT 4 (copy on
file). He explained that amendment 4 would eliminate the
$125.0 increment to the grants line for rural tourism and
increase the Alaska Tourism Marketing Council by $125.0
thousand dollars. He observed that this was the only
increment in the Department of Commerce and Economic
Development. He noted emphasized that the Alaska Tourism
Marking Council supports tourism statewide.
Co-Chair MacLean OBJECTED. She noted that the Alaska
Tourism Marketing Council does not have rural
representation.
(Tape Change, HFC 94-98, Side 1)
Commissioner Fuhs expressed opposition to amendment 4. He
explained the functions of the rural tourism grant.
Representative Navarre WITHDREW AMENDMENT 4.
Representative Brown MOVED to ADOPT AMENDMENT 5 (copy on
file). She explained that amendment 5 would reduce personal
services in AIDEA by $450.0 thousand dollars. The amendment
would eliminate two of the four deputy director positions.
She emphasized the need to prioritize the budget. She added
that the $200.0 thousand dollar increment in the contractual
line, for new feasibility studies on energy resources would
also be deleted.
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Commissioner Fuhs stressed that the deputy director
positions represent specialized skills in finance and
project development. He emphasized that the positions help
to maintain a high credit rating. Discussion pursued in
regards to the feasibility studies.
A roll call vote was taken on the MOTION to adopt AMENDMENT
5.
IN FAVOR: Therriault, Brown
OPPOSED: Grussendorf, Hoffman, Navarre, Foster, Hanley,
Martin, Parnell, MacLean, Larson
The MOTION FAILED (2-9).
HB 370 was HELD in Committee for further discussion.
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