Legislature(1995 - 1996)
03/26/1996 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. 412
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
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reserve fund; and providing for an effective date."
DEPARTMENT OF LABOR
Representative Brown MOVED to adopt Amendment Labor-1 (copy
on file). Representative Mulder OBJECTED. Representative
Brown spoke in support of the amendment. Amendment Labor-1
would add $75.0 thousand dollars to a restore
boiler/pressure vessel inspector position in Fairbanks. She
noted that one out of five units inspected are found to have
violations. She observed that the position generates fees.
This position performs an average of 800 inspections
annually. She emphasized the liability to the State for
failure to perform inspections. She maintained that this
reduction is too deep into the core functions of the State.
Representative Brown asserted that subcommittee
recommendations are $3.5 million dollars below caps assigned
by the House Majority. She stated that there are no
appropriate decrements remaining in the budget. She
maintained that the remaining functions are necessary and
essential.
Co-Chair Hanley noted that subcommittee recommendations had
not been adopted.
Representative Brown WITHDREW her motion to adopt Amendment
Labor-1.
SUBCOMMITTEE RECOMMENDATIONS
Representative Mulder MOVED to adopt all House Finance
Subcommittee recommendations (copies on file). There being
NO OBJECTION, it was so ordered.
DEPARTMENT OF LABOR
Representative Brown MOVED to adopt Amendment Labor-1.
Representative Mulder OBJECTED. He noted that this
reduction was proposed by the Governor. He stated that the
Department indicated they thought that this function could
be offset by the remaining positions.
Representative Therriault noted that Amendment HSS-7 would
also restore this position. Amendment HSS-7 would restore
$75.0 thousand dollars for a boiler/pressure vessel
inspector position with an equal decrement from the State
Medical Examiners.
JANET CLARK, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES discussed Amendment
HSS-7. She stressed that the State Medical Examiner program
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was previously known as the Postmortem program. She
observed that bodies had been shipped to Anchorage from
rural areas for autopsy. She noted that FY 95 is the first
year that the program has been without a supplemental
request. She stressed that a loss of a position in this
program will result in higher contract costs. She noted
that as a state employee witness fees are not paid to the
medical examiner for testimony in cases regarding
unexplained deaths. The Department of Law has saved
approximately $80.0 thousand dollars from a reduction in
witness fees. She maintained that the number of autopsies
for unexplained deaths have been reduced.
In response to a question by Representative Parnell, Ms.
Clark noted that some contractual costs are needed for
autopsies in Ketchikan and to pay transportation costs. She
stressed that the contractual line has been reduced. She
reiterated that if the deputy medical examiner was deleted
that the State would pay more than is saved in contractual
costs.
Co-Chair Hanley restated that the Department of Law saved
$80.0 thousand dollars in witness costs.
Representative Brown MOVED to amend Amendment LABOR-1 by
adding a funding source; delete $30.0 thousand dollars from
the Department of Health & Social Services, contractual line
of the State Medical Examiner and $40.0 thousand dollars
from the Department of Law, Civil Division, General
Services. There being NO OBJECTION, it was so ordered.
Representative Brown MOVED to adopt Amendment Labor-1 as
amended. Representative Mulder OBJECTED. A roll call vote
was taken on the MOTION to adopt Amendment Labor-1 as
amended.
IN FAVOR: Brown, Grussendorf, Navarre, Kelly, Parnell,
Therriault, Foster, Hanley
OPPOSED: Kohring, Mulder
Representative Martin was absent from the vote.
The MOTION PASSED (2-8).
Representative Mulder disclosed that his wife is a lobbyist.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Co-Chair Foster MOVED to adopt CED-1 (copy on file).
Amendment CED-1 would add $300.0 thousand dollars for the
Kotzebue Technical Center (KTC) by deleting $100.0 thousand
dollars from the Office of the Governor, Contingency Fund;
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$100.0 thousand dollars from the Division of Trade and
Development, Department of Commerce and Economic
Development; and $100.0 thousand dollars from the Office of
the Ombudsman.
Representative Navarre OBJECTED. He noted that he supports
the increment but objected to reductions in the Department
of Commerce and Economic Development and the Office of the
Governor, Contingency Fund.
Co-Chair Foster WITHDREW Amendment CED-1. Representative
Grussendorf noted that he has a similar amendment. He
expressed concern with the funding source.
Co-Chair Hanley MOVED to adopt Amendment CED-2 (copy on
file). He explained that the Governor reduced the Surety
Fund in the Department of Commerce and Economic Development.
The amendment would add $82.0 thousand dollars to the Surety
Fund and delete $42.0 thousand dollars in general fund
program receipts. There being NO OBJECTION, it was so
ordered.
Representative Grussendorf MOVED to adopt Amendment CED-3
(copy on file). Amendment CED-3 would change the funding
source of $876.5 thousand dollars from general fund to
general fund program receipts for the Division of
Measurement and Standards, Department of Commerce and
Economic Development; and add $843.6 thousand dollars for
the Alaska Seafood Marketing Institute (ASMI). He
emphasized that the reduction to ASMI takes money from
export promotions. He stated that this money was reduced
under the assumption that funding would be available through
HB 397. He observed that the funding available through HB
397 is the result of the whitefish fisheries and should be
spent on domestic programs. He observed that ASMI has
requested to be held harmless in FY 97 in order to address
problems resulting from the salmon glut.
REPRESENTATIVE KIM ELTON spoke in support of Amendment CED-
3. He explained that ASMI receives federal funds which
require a 15 percent cash match. In addition, ASMI receives
processor and harvester assessments. A 3 percent assessment
against the value of all the product landed at the dock is
paid by processors to ASMI. Salmon harvesters are assessed
1 percent of the value of salmon harvested. The salmon
harvester assessment is limited by statute to the domestic
market. The processor assessment comes from all types of
seafood. The processor assessment is not restricted by
statute but has historically been spent on domestic markets.
Co-Chair Hanley noted that he served on an ASMI subcommittee
on export funding. He observed that federal funds are only
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used for foreign markets.
Representative Elton noted that the federal portion has been
reduced to $4.0 million dollars. He added that federal
foreign funding has to be matched by private funding. He
noted that the total marketing program including the state
and private match is $9.6 million dollars.
Co-Chair Hanley noted that the match has been over
appropriated in past budgets.
Representative Kelly explained that the reduction was made
under the assumption that ASMI can seek funding from other
sources. He acknowledged that it would not be appropriate
to use whitefish funding as a match for salmon marketing.
He noted that there is $1.3 million dollars in HB 397. He
observed that the on shore processing tax includes funding
from salmon processing. He explained that the match could
be funded from the on shore processing tax and replaced by
whitefish funds.
Representative Navarre spoke in support of Amendment CED-3.
Representative Grussendorf maintained that the amendment
represents a good investment for the State.
Representative Mulder maintained that the amendment
represents a direct subsidy to the commercial fishing
industry.
(Tape Change, HFC 96-92, Side 2)
Representative Navarre noted that the State receives taxes
from the fishing industry. He stressed that low salmon
prices will result in a reduction in state revenues.
Representative Elton pointed out that the cooperative
marketing program is 95 percent paid by industry. He noted
that at its conception the program was 90 percent state
supported. He expressed concern that the lack of state
support will result in the loss of the processor assessment.
Processors can vote to eliminate the assessment in 1997.
A roll call vote was taken on the MOTION.
IN FAVOR: Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
Representative Brown was absent from the vote.
The MOTION FAILED (2-8).
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Representative Navarre MOVED to adopt Amendment CED-4 (copy
on file). Representative Mulder objected. Amendment CED-4
would add $80.7 thousand dollars for the Commissioner's
Office, Department of Commerce and Economic Development.
Representative Navarre noted that the Commissioner sits on
13 - 14 boards and a number of task forces. This amendment
funds a special assistant responsible for the Marketing
Alaska program.
Representative Kelly noted that there were two development
specialist positions in the Department to administer the
Alaska Rural Development Assistance program (ARDOR). He
pointed out that the ARDOR program was transferred to the
Department of Community and Regional Affairs. The two
support positions remained in Department of Commerce and
Economic Development. He stated that one of these positions
is working on the Marketing Alaska program.
IN FAVOR: Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
Representative Brown was absent from the vote.
The MOTION FAILED (2-8).
Amendment CED-5 was HELD.
Co-Chair Foster MOVED to adopt Amendment CED-1.
REPRESENTATIVE DON LONG spoke in support of Amendment CED-1.
He stressed the importance of training programs in his
region. He pointed out that there is a high percentage of
unemployment and individuals on state welfare programs.
Representative Martin expressed support for KTC. He asked
if funding could be transferred from the Chukchi Community
College campus of the University of Alaska. Representative
Long stressed the difference in curriculums and the
importance of both forms of education.
Representative Navarre MOVED to AMEND Amendment CED-1 by
changing the funding source; delete the reductions of $100.0
thousand dollars from the Division of Trade and Development
and Department of Commerce and Economic Development and
$100.0 thousand dollars from the Office of the Ombudsman;
and add a deletion of $200.0 thousand dollars from the
Legislature, Operating Budget. Co-Chair Foster OBJECTED.
Representative Navarre maintained that the legislative
operating budget can be reduced this year. He noted that
there is a new legislature coming in next year. He asserted
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that the new legislature can adjust to the reduction. He
argued that the legislative operating budget would be a
better place to make a reduction then the Office of the
Ombudsman or the Division of Trade and Development.
Representative Grussendorf spoke in support of the amendment
to the amendment.
Co-Chair Foster WITHDREW his objection. There being NO
OBJECTION, the amendment to the amendment was adopted.
Representative Martin expressed interest in changing the
funding source in Amendment CED-1 of $100.0 thousand dollars
from the Office of the Governor to the Chukchi Community
College. Co-Chair Hanley pointed out that the Governor's
contingency fund still contains $150.0 thousand dollars.
There being NO OBJECTION, Amendment CED-1 as amended was
adopted.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Representative Grussendorf MOVED to adopt Amendment CRA-1.
Representative Mulder OBJECTED. Amendment CRA-1 would add
$80.0 thousand dollars to the Alaska Marine Safety Education
Association (AMSE). Representative Grussendorf stressed
that AMSE serves approximately 120 communities and instructs
the public in regards to boating safety.
Co-Chair Hanley noted that the program had been previously
funded by the federal government. He observed that the
issue will be addressed in legislation to come before the
Committee.
A roll call vote was taken on the MOTION to adopt Amendment
CRA-1.
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).
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative Brown MOVED to adopt Amendment CED-5 (copy on
file). Amendment CED-5 would appropriate $110.0 thousand
dollars to the Department of Commerce and Economic
Development to fund Alaska Public Lands Information Centers
(APLIC). She emphasized that the state and federal
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governments are in a partnership to provide information on
state and federal lands. She observed that if the State
does not continue its support the centers will only provide
information about federal lands. The federal contribution
is over $1.0 million dollars. The centers serve 250,000
visitors annually. The program has been in effect for 14
years. She maintained that the reduction is too deep.
Representative Kelly emphasized that federal funding will
not be jeopardized. Representative Brown maintained that
the federal government will not pick up the State's portion.
Information on state lands will not be provided.
Co-Chair Hanley noted that the reduction was made in the
Governor's proposed budget.
A roll call vote was taken on the MOTION to adopt Amendment
CED-5.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Representative Navarre MOVED to adopt Amendment CRA-2 (copy
on file). Representative Kelly OBJECTED. Amendment CRA-2
would restore $161.0 thousand dollars for Alaska Legal
Services. Representative Navarre noted that Alaska Legal
Services primarily serves rural Alaska. Forty percent of
their clientele are Alaskan Natives. He maintained that
services will be reduced in rural areas of Alaska.
Representative Kelly stressed that it is not the role of
government to provide free civil legal services. He
acknowledged the constitutional mandate to provide public
defenders.
Representative Brown argued that it is a function that
should be funded adequately. She observed that between
60,000 and 70,000 Alaskans are living at the poverty level.
She asserted that access to the court system is not possible
without some form of subsidized help. Alaska Legal Services
provides advise on divorce, adoption, child custody,
landlord disputes, wills, unemployment and probates. She
maintained that the legal system should be available to low
income individuals. Offices have already been closed in
Dillingham, Kodiak and Kotzebue. She observed that there
are currently 483 open cases.
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Representative Kelly noted that Alaska Legal Services
receives over $1.0 million dollars in federal funds and
other grants. He emphasized that there is plenty of money
from other sources.
REPRESENTATIVE IRENE NICHOLIA disagreed that Alaska Legal
Services receives over a million dollars in federal funds.
She observed that federal funds were cut. She added that
the Nome office also closed. She stressed the importance of
the service.
Representative Parnell acknowledged the difficulty in
cutting this service. He observed that as an Attorney, 14
percent of his legal services were provided for free to help
low income individuals. He stressed that attorneys will
have to help more to fill the need.
Representative Brown commended Representative Parnell for
his services to those in need. She questioned if seeking
free counsel from private attorneys is a viable approach.
She gave an example of a case served by Alaska Legal
Services.
A roll call vote was taken on the MOTION to adopt Amendment
CRA-2.
IN FAVOR: Brown, Grussendorf, Navarre, Foster
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley
The MOTION FAILED (4-7).
UNIVERSITY OF ALASKA
Representative Navarre MOVED to adopt Amendment UA-1 (copy
on file). Representative Mulder OBJECTED.
(Tape Change, HFC 96-93, Side 2)
Amendment UA-1 would restore an unallocated budget reduction
of $283,600 dollars to the University of Alaska.
Representative Navarre explained that the amendment would
fund salary increases that the University of Alaska has
refused to honor.
Representative Martin stressed that the House Finance
Subcommittee addressed the issue. The Subcommittee turned
down the request because of the broader issue of contract
negotiations.
Representative Grussendorf expressed support for the
amendment.
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In response to comments by Representative Martin,
Representative Navarre clarified that the amendment would
fund FY 97 negotiated salary costs.
Co-Chair Hanley pointed out that the amendment cannot
guarantee that the money will be spent by the University to
fund the increase. He observed that an amendment will be
offered to pull out salary increases due to contract
negotiations in the FY 97 operating budget. Language will
be offered for the front section to turn down all the
contracts. He emphasized that if language turning down the
contracts is not included that the agencies will have to
absorb their cost.
Representative Navarre estimated that if the University has
to absorb contract costs that a disproportional amount will
be taken from the outlying campuses.
REPRESENTATIVE JOHN DAVIES spoke in support of the
amendment. He stressed that the University contends that
the negotiated contracts will not be funded unless there is
explicit funding by the Legislature. He stated that
explicit approval can be followed by an equal reduction. He
disagreed with the removal of the contract costs.
A roll call vote was taken on the MOTION to adopt Amendment
UA-1.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF CORRECTIONS
Representative Mulder MOVED to adopt Amendment DOC-1 (copy
on file). He explained that the amendment will add back to
the Department of Corrections $464.1 thousand dollars. It
changes many of the specific reductions to unallocated
reductions. This will allow the Department more
flexibility. The amendment recommends a total budget for
the Department of $137,919,800 million dollars, an increase
of $9.9 thousand dollars over FY 96 Authorized. The FY 96
Authorized included carry forward of $2.4 million dollars
from FY 95. He noted specific changes:
* Administrative and Support funding is
increased by $180.0 thousand dollars, no
reductions are taken from the Parole Board;
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* Funding for institutions is increased by
$199.0 thousand dollars;
* Correctional Industries is returned to the
Institutions BRU;
* Intent language is added requesting that the
Department review perimeter guards, Cleary
monitoring, educational coordinators and
assistant superintendents to determine value
and function;
* Mental health nurses, educational contract
services and coordinators, Correctional
Officers III and most assistant
superintendents have not been specifically
eliminated;
* Funding is increased for Community
Corrections by $84.5 thousand dollars;
* CRC beds are returned to the Community
Corrections BRU but remain a separate
component; and
* Funding for a day reporting project remains
unfunded.
Representative Mulder noted that the amendment retains
elimination of several positions that are either unfilled or
are attached to programs that will not continues.
Representative Brown noted that the Department of
Corrections' budget is still $450.0 thousand dollars below
the House Majority's recommended cap. She asked if $80.0
thousand dollars for inmate health care is funded.
Representative Mulder explained that there is a no specific
recommended reduction within inmate health care. There is
an unallocated reduction of $1,741 million dollars from
institutions as a whole. The Department is requested not to
add new positions. He noted that the Department is
requested to reallocate existing PCNs in order to have a
more accurate PCN count.
BOB COLE, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
CORRECTIONS stated that the Department will have to make
unallocated reductions. He noted areas of concern to the
Department:
* Elimination of a special assistant in the
Commissioner's Office;
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* Elimination of the assistant superintendent
at Highland Mountain Correctional Center;
* Elimination of a $334.7 thousand dollar
request to fund a day reporting center; and
* A $241.0 reduction for Point McKenzie
expansion.
Representative Brown questioned the Legislature's legal
authority to eliminate specific positions.
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR stated that
the Legislature does not appropriate positions. The
Legislature appropriates funding for the operation of the
State. The Administration uses the funds and creates
positions.
Representative Brown expressed concerns regarding the
proposed elimination of the special assistant in the
Commissioner's Office and the assistant superintendent at
Highland Mountain Correctional facility. She asked if the
Department has the ability to fund these positions. Ms.
Slagle stated that the Department can create positions based
on the funding level.
Representative Mulder referred to the assistant
superintendent at the Highland Mountain Correctional
facility. He noted that Highland Mountain is a 300 bed
facility. There are two assistant superintendents, one
supervises the women's beds and one the men's. He noted
that there are 64 - 66 women inmates.
There being NO OBJECTION, Amendment DOC-1 was adopted.
Representative Brown WITHDREW Amendment DOC-2 (copy on
file).
Representative Navarre MOVED to adopt Amendment DOC-3 (copy
on file). Representative Mulder OBJECTED. Representative
Navarre explained that the amendment would reduce the
Governor's request by $2.0 million dollars. He pointed out
that this is the cap level recommended by the House
Majority. The reduction would be unallocated. He stressed
that an unallocated reduction will maximize the Department's
management authority and provide flexibility.
Representative Mulder spoke against the amendment. He
stressed that the Subcommittee recommendation is above the
FY 96 authorized amount. He maintained that the proposed
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funding level is realistic and addresses public safety
concerns.
Representative Navarre noted that prison population is
growing at a rate of 8 - 10 percent a year. He emphasized
the need to allow management to address this growth.
A roll call vote was taken on the MOTION to adopt Amendment
DOC-3.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (3-8).
In response to a question by Representative Brown,
Representative Mulder agreed that Amendment DOC-1 includes
the Governor's request for $80.0 thousand dollars to fund
two psychiatric nurses. The PCN's for these positions are
not included but the Department can convert other PCN's or
establish new ones. Representative Brown WITHDREW Amendment
DOC-4 (copy on file).
In response to a question by Representative Brown,
Representative Mulder noted that inmate programs reflect the
Governor's requested amount.
Representative Brown noted that Amendment DOC-1 states that
the educational coordinators are where they are supposed to
be. She observed that Amendment DOC-5 (copy on file) would
reinstate educational coordinators. She noted that these
positions provide adult basic education.
Representative Mulder noted that Cook Inlet Correctional
Center is contracting for a educational coordinator. This
positions will remain in the contractual line. Several
facilities have two educational coordinators. He emphasized
that the Subcommittee recommends that these be reviewed to
see if a savings can be realized through contracting
services. He stressed that the Subcommittee is not
recommending that these positions be deleted.
Representative Brown WITHDREW Amendment DOC-5 (copy on
file).
Representative Brown noted that the Highland Mountain
assistant superintendent is not funded. Representative
Mulder stressed that the recommendation for elimination of
this position came from the prison guards.
Representative Brown noted that other reductions are
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unallocated. She questioned why the Highland Mountain
assistant superintendent was identified for elimination.
She maintained that the there are administrative duties that
must be performed.
Representative Mulder reiterated that there are two
assistant superintendents at Highland Mountain.
Representative Brown pointed out that Highland Mountain is
performing long term rehabilitation.
Mr. Cole spoke in support of retaining the assistant
superintendent position at the Highland Mountain
Correctional facility. He noted that the women's campus has
an active programing component. He stressed that the
institution is largely run as two separate operations.
Representative Brown stressed the need to allow the
Department to manage effectively. Representative Mulder
stated that the position will be deleted by the action of
adopting Amendment DOC-1. He acknowledged that the
Department could create the position again. He stressed
that there are higher priorities.
Representative Brown noted that the Department of
Corrections has historically under served women. She
stressed that this position is the women's superintendent.
Representative Brown MOVED to adopt amended Amendment DOC-6
(copy on file). Amendment DOC-6 as amended would delete
language in Amendment DOC-1 that would identify the Highland
Mountain assistant superintendent position for elimination.
A roll call vote was taken on the MOTION.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (3-8).
(Tape Change, HFC 96-93, Side 1)
Representative Brown referred to data and word processing.
She emphasized the importance of these functions. She
observed that a request authorizing federal funding to up
grade the information system was not included in the
operating budget. She expressed concern that the funding
will not be included in the limited capital projects
improvement legislation.
Representative Mulder agreed with the need to revamp the
Department of Corrections' information system. He
maintained that it is appropriate to show the federal
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funding in the capital budget. He noted that they are one
time positions. He did not want the positions built into
the operating base. He emphasized that federal funds can be
added in the capital budget.
Mr. Cole clarified that the three micro-network technician
specialist positions will need to be retained in future
budgets.
Federal funding was located to retain these three positions
for FY 97. The three analyst programmer positions that were
deleted from the general fund portion of the Department's
request are budgeted as interagency receipts. He explained
that this would allow funding to be transferred from the
Department of Public Safety if federal funding is received
or allow the Department to bill internally. He noted that
it is unlikely that funding will be located for the three
deleted analyst programmer positions.
In response to a question by Representative Brown,
Representative Mulder clarified that the classification
officer's position in the Office of Commissioner was
restored.
STATEWIDE
Co-Chair Hanley noted that Municipal Assistance and State
Revenue Sharing were not included in the House Finance
Subcommittees' reports. He observed that Amendment
Statewide-1 (copy on file) would include the Governor's
proposed funding level for Municipal Assistance ($29,402.3
million dollars), State Revenue Sharing ($24,170.0 million
dollars) and the Renters' Equivalency Rebate program
($300.0). He noted that the Governor's proposal reduces
Municipal Assistance and State Revenue Sharing by 8 percent.
The Senior Citizens' Property Tax Exemption was not funded
in the FY 97 request. The Senior Citizens' Property Tax
Exemption was funded at $1,163.0 million dollars in FY 96.
Representative Martin MOVED to adopt Amendment Statewide-1.
There being NO OBJECTION, it was so ordered.
Co-Chair Hanley observed that after discussions with the
Administration some on going capital appropriations were
transferred to the operating budget. He noted that the
inclusion of these items in the operating budget have
created confusion. Amendment Statewide-2 would deny
transfers of capital items to the operating budget. He
noted that these items will be discussed in the capital
budget.
Representative Martin MOVED to adopt Amendment Statewide-2.
Representative Navarre OBJECTED for purposes of discussion.
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He observed that items were originally transferred from the
operating budget to the capital budget in order to show
reductions in the operating budget. He pointed out that the
largest percentage of these items are for deferred
maintenance in the Department of Transportation and Public
Facilities. He stressed that these projects should be
retained in the operating budget. He expressed concern that
there will not be sufficient funding in the capital budget.
He noted that deferred maintenance costs should be funded on
an annual basis.
Representative Brown maintained that the Department of Law's
litigation budget should be in the operating budget. Co-
Chair Hanley noted that specific cases under litigation by
the Department of Law were transferred because they were not
expected to continue past a specific amount of time. The
concern was that these costs would become part of the
Department's base.
Co-Chair Hanley acknowledged that debate needs to continue
regarding the appropriate funding source for these items.
Representative Navarre WITHDREW his objection. Amendment
Statewide-2 was adopted.
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