Legislature(1997 - 1998)
03/02/1998 02:00 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
HOUSE BILL NO. 461
"An Act making supplemental and special
appropriations; and providing for an effective date."
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND
BUDGET, OFFICE OF THE GOVERNOR, provided an overview of the
proposed time-sensitive appropriations from the Governor's
FY98 Supplemental Bill (HB397, SB292). She assured
Committee members that the Administration had placed strict
limits on what would be considered time-sensitive.
DEPARTMENT OF REVENUE - 1 (a)
DAN SPENCER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND
BUDGET (OMB), OFFICE OF THE GOVERNOR, stated that 1(a)
would address the immediate funding for monies needed to
prevent cash-flow problems for the Bank of America
building. Department of Administration (DOA) has been
paying maintenance costs out of their budget as a stopgap
measure, however, that budget is experiencing it's own cash
flow problems. Private tenants are currently paying AHFC,
and OMB would prefer to give AHFC the authority to contract
with DOA. The request would address the fiscal note
situation resulting from last session.
JOHN BITNEY, ALASKA HOUSING FINANCE CORPORATION (AHFC),
ANCHORAGE, advised that AHFC at this time has no authority
to use the receipts from the building to pay for operation
and maintenance costs. AHFC has been collecting the
receipts in a separate holding account. With this
authority, AHFC would RSA reimbursement to DOA for their
expenses.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS - 1(b)
Co-Chair Hanley advised that Section 1(b) had been
addressed in HB 370.
DEPARTMENT OF CORRECTIONS - 1(c)
Mr. Spencer explained that the requested appropriation
would be used to cover costs associated with Community
Residential Center (CRC) beds. Some CRC contracts will
expire March 31, 1998. The Department cannot implement
contracts to continue these beds if this requested funding
is not made available.
Representative Mulder commented that the Department is
looking into existing funding that could be applied.
DWAYNE PEEPLES, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS (DOC), noted that since
the supplemental request was submitted, the Department has
done a reassessment of the CRC funding BRU's. There is $18
thousand dollars available in a new CRC BRU, which could be
available because of start up delays of new beds.
Additionally, $64 thousand more dollars has been identified
in an existing CRC BRU, money which could also be made
available. He noted that to date, the $236 thousand dollar
initial request could be reduced by $82 thousand dollars.
Mr. Peeples addressed the program receipts. He stated that
$50 thousand dollars would come from the Drinking While
Intoxicated (DWI) Program. The Department was authorized
to receive funds which were above the remaining account
balance in that program. Co-Chair Hanley commented that
the in-mates occupying the beds would pay for a large
portion.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES - 1(d)
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated
that the $100 thousand dollar appropriation request would
be used to fund the Maternal Child Care Clinics scheduled
to begin in late March. These clinics may be cancelled if
a supplemental appropriation allowing use of program
receipts from clinic fees is not approved.
KAREN PEARSON, HEALTH PROGRAMS MANAGER, DIVISION OF PUBLIC
HEALTH, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, spoke to
the work performed by the specialty clinics. With a
professional team traveling out to rural communities allows
those families not to have to travel to Anchorage or the
lower 48 in order to access medical services.
Co-Chair Hanley pointed out that not all people pay for
services received at these clinics. He asked if the
people, who do pay, cover costs of the clinics. Ms. Clarke
understood that the clinics were subsidized through other
funding mechanisms. Last year, the Department received
funding through Alaska Mental Health Trust Authority as
well as federal block grants. She agreed that program
receipt revenue does not cover the full cost of the
clinics.
Co-Chair Hanley questioned why a supplemental request
exists when the Department had these clinics included in
last year's budget proposal. Ms. Pearson explained that
the program staff was not aware during last year's budget
that the Division would no longer be able to go to the
Legislative Budget and Audit Committee (LBA) for additional
program receipts.
Representative Foster echoed concern. Ms. Clarke noted
that the Department does have some remaining funds
resulting from an increase received from the FY99 Mental
Health Trust Authority which could continue some clinics.
DEPARTMENT OF MILITARY & VETERAN'S AFFAIRS - 1(e)
NICO BUS, BUDGET COORDINATOR, DEPARTMENT OF MILITARY &
VETERAN'S AFFAIRS (DMVA), stated that the requested funding
would coordinate federal receipts for Poker Flats Research
Range. The Department will transfer funding to the
University of Alaska so that construction can begin this
spring.
The specific work to be done would happen over a two year
time frame, costing about $20 million federal dollars.
Those funds would be used for refurbishment of a road and
the technology support. He noted that because of existing
agreements, it would be easiest for those funds to be
distributed through DMVA. The Department would act as
funding conduit. Mr. Bus noted that there would be no
money for the Department.
Representative Martin pointed out that Section 1(e) and
1(i) represented the same money. He asked if the funds
would conflict with the Kodiak Space Center. Co-Chair
Therriault explained that Poker Flats rockets were
atmospheric sounding rockets and which could not achieve
orbit; the Kodiak facility rockets will orbit.
Representative Martin asked how much money had been spent
over the past five years for upgrading.
MARY LOU BURTON, (TESTIFIED VIA TELECONFERENCE), UNIVERSITY
OF ALASKA, FAIRBANKS, believed that approximately $10
million dollars has been spent since 1990. The project has
been 100% federally refunded.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES - 1(f)
Co-Chair Hanley questioned why this item had been included
in the fast track supplemental.
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES (DOTPF), stated that this stretch of the road is
in great need of repair. It had been included in the State
Transportation Improvement Program (STIP) to fix sections
of the road during a five years period beginning in 2000.
Because of the damages, which occurred this summer, the
Department realized they needed to speed up the work. The
road has deteriorated. The Federal Highway department has
granted approval for this project.
The Department is rapidly working to get the proposal
completed in order to go to bid by April so that the
repairs could be done by August. She pointed out that many
states are currently using federal highway money to
maintain roads, although it requires each state to provide
a plan.
Ms. Slagle pointed out that a specific section of road has
been identified for repair. The State would not be allowed
to undertake general overall maintenance when attempting to
meet Federal Highway approval, yet, specific work will be
approved.
Co-Chair Hanley asked if the State had overappropriated
it's original match or if the Department had held off on
already approved federal projects.
THOMAS BRIGHAM, DIRECTOR, DIVISION OF STATEWIDE PLANNING,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, replied
that neither point had occurred. The Department has
increased the size of the FY98 program to general
expectation. The Tok project fits into bigger project
funding appropriated by the federal government, which would
not displace other projects.
Co-Chair Hanley inquired the total highway match for this
year. Mr. Brigham replied it would be in the amount of
$24.5 million dollars. Because of new federal
authorization, there could be additional federal funds
available. The average match rate is 10%.
Co-Chair Therriault asked if the proposed increment would
cause a shift to any other proposed project. Mr. Brigham
stated that nothing would be displaced and no major design
would be needed.
DEPARTMENT OF FISH AND GAME - 1(g)
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF FISH AND GAME, stated that the
requested allocation would be used for subsistence harvest
research projects. He added, early approval of federal
receipts would allow timely completion of these projects.
There are five separate small projects included in the
request, all of which will need to be completed by
September 30, 1998. He added that this would be a 100%
federal fund.
Representative Foster argued the point that the Nome
subsistence position had been cut leaving sixteen positions
residing in Anchorage. He indicated his resentment in
supporting sixteen subsistence positions in Anchorage when
the need is in Bush Alaska. Mr. Brooks responded that the
economics of maintaining Bush Alaska offices and leases
became prohibitive. Flying from village to village is
expensive. The Anchorage office has always been the hub.
He summarized that the budget has been cut so small, it is
impossible for the Department to cover such a wide area.
DEPARTMENT OF LABOR - - 1(h)
REBECCA GAMEZ, DIRECTOR, DIVISION OF EMPLOYMENT SERVICES,
DEPARTMENT OF LABOR (DOL), explained that the $3 million
dollar supplemental request would be used to establish the
Alaska Disaster Assistance Program (ADAP). Early approval
will allow relief for those persons suffering from the loss
of their primary income due to the poor salmon-fishing
season in Bristol Bay.
Representative Martin asked how the program was different
from HB 370. Ms. Gamez explained that this was not a loan
program; it was an entitlement program. DOL anticipates
quick turnover costs. Administrative costs will amount to
approximately 8.4%; $2.75 million dollars will be available
to 54 communities in the State.
Co-Chair Hanley asked if the Department used guidelines
similar to those established by FEMA. Ms. Gamez responded
that the determination would be based on a combination of
regulations and laws and would include some of those used
through FEMA. The federal government turned that request
down. An amount had been determined by estimating the
maximum number of people that would be eligible under the
Disaster Unemployment Assistance program and then used the
average unemployment benefit rate received.
Representative Martin asked why the program had been
limited to Bristol Bay. Ms. Gamez replied that the
Division had "stuck" with the basic FEMA request made a
number of months ago and did not expand it. Representative
Martin suggested adding language specifying all communities
that could qualify for the funding.
(Tape Change HFC 98- 48, Side 2).
Co-Chair Hanley noted that to undertake this request would
require additional legislation. Normally there would be a
fiscal note attached with the bill. Mr. Spencer questioned
where the fiscal note would show up; he recommended the use
of conditional language. A fiscal note would provide
appropriation contingent upon the bill passing.
Appropriation could be made in the bill, but if the bill
did not pass, the appropriation would be no good. Co-Chair
Hanley noted that there could be an appropriation bill
tagging along with the legislation.
UNIVERSITY OF ALASKA - 1(i)
Co-Chair Hanley noted that Section 1(i) was tied with
Section 1(e).
DEPARTMENT OF MILITARY & VETERAN'S AFFAIRS - 1(j)
Mr. Bus explained that the appropriation would fund the
Youth Corps ChalleNGe program. He stated that early
approval was needed to begin the next scheduled class on
March 16, 1998. He advised that $250 thousand dollars had
been allocated in the FY98 budget to support the program
with the understanding that the Department could come back
during the supplemental budget process.
The Department did not know what the federal funding
commitment would be. The initial allocation for Alaska was
about $2 million dollars. DMVA continues to run the
program in anticipation of 80 graduates per class in each
of the two classes. In order to get the program back up to
par; the Department is proposing supplemental funding
request in the amount of $608 thousand dollars to secure
the program through June, 1998.
Co-Chair Hanley asked the total anticipated budget for the
year. Mr. Bus replied that it would be $3.4 million
dollars, consisting of State and federal funding. The
federal government has committed to $2.1 million dollars.
Co-Chair Hanley asked the amount of the request if there
were 60 graduates. Mr. Bus explained that becomes
complicated as the federal guidelines require 75% federal
funds for 25% State funding match requirements. Co-Chair
Hanley requested an impact statement indicating the cost
differential for 60 and/or 80 graduates. He pointed out
that the percentage provided by the feds is declining.
Representative Foster pointed out that when the program
started it was a total federally funded program, however,
at this time, the projection is that federal funding will
pay 60% of costs and the State will provide 40% of the
associated costs. Representative Foster pointed out that
the cost per graduated student is approximately $22
thousand dollars. Mr. Bus advised that the program was
geared to the "at-risk" youth and that it is a cost
avoidance program. The cost of sending a youth to a
correctional facility is approximately $66 thousand
dollars. Mr. Bus emphasized that at-risk youth really
benefit from the program.
DEPARTMENT OF ADMINISTRATION - 1(k)
Mr. Spencer noted that the Department of Administration
(DOA) was requesting funding for needed monthly lease
payments for the period from now through May, 1998.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, advised that when
the FY98 budget had been passed, DOA projected that budget
would be short approximately $1.7 million dollars. The net
effect of activity since that time has resulted in a total
request of $1.4 million dollars.
HB 461 was HELD in Committee for further consideration.
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