Legislature(1995 - 1996)
04/01/1996 09:35 AM Senate FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 468(FIN) am
"An Act making supplemental appropriations for the
expenses of state government and making and amending
appropriations; ratifying certain state expenditures;
and providing for an effective date."
Nancy Slagle was invited to join the committee. She
referred to a letter of 24 March 96 requesting changes to
the supplemental request. The first item was the increased
need for the longevity bonus program for FY 96. It was
identified that they were expecting the checks to be run on
26 March and updated the model forecast for the current year
and the need is $1.6 million to cover the additional
applicants that have entered into the program.
Co-chairman Frank asked if there was information regarding
in migration.
Sharon Barton, Department of Administration was invited to
join the committee. She said that on 27 March a packet was
sent over that included a study "Elderly Graphic Profiles of
the United States". What the studied showed was that Alaska
is a net out migrator with respect to the elderly
population. The surprising new information was the number
of people reaching the age of 60 - 65 and those folks made
up a larger percentage than had been anticipated, very much
higher than in the other states. Senator Rieger said that
elderly birth meant that a person who was here and now
qualified as being elderly. Ms. Barton clarified this and
said that it was those persons who reached this age between
1985 and 1990. She said that they relied on experience for
the supplement request. Senator Sharp said there was an
increase over anticipated payments for new applicants. Ms.
Barton concurred. She said they relied on historical
behaviour to determine how they will participate in the
program.
Nancy Slagle said the next item was a request for $150,000
for the permanent fund dividend division. This would be
funds from the permanent fund dividend fund for garnishment
fees that the division has statutory authority to charge
($2.00 fee) and this would assist the division to meet its
obligations under contractual services. This is a shortage
for processing a computer conversion.
Nanci A. Jones was invited to join the committee. She
explained the history of the project since December 1984.
This would cover an unexpected charge back for the mainframe
computer system. Senator Rieger asked what the total charge
back that was being anticipated from the Department of
Administration to the Permanent Fund Division. She said the
total would be approximately $465,000. She said the actual
usage by the division has increased. Senator Rieger said he
felt this was an undue increase and has asked Senator
Phillips to take a hard look at the entire mainframe system.
The cost should not be going up. She advised that they must
use their data base more than once a year. They are in the
process of trying to establish a plan for hot back-up.
Senator Rieger said he was skeptical of the total price tag
and perhaps this could go to a private contractor to
maintain the data.
Nancy Slagle said the next item was amendments to the
miscellaneous claims and stale dated warrants section of the
bill, section 14(a), an increase to the Department of
Administration and to Public Safety. Further sections
include ratifications as identified in the original
supplemental for Departments of Administration, Commerce,
Labor and Public Safety to clean up some over-expenditures
or under collections of revenue. The departments are
continuing to try and clean up their accounting records.
She said the AIDEA one was $16,000. She further said the
last one was the Exxon Valdez Trustees Council requesting an
appropriation of $6,670,500. in settlement funds for
purchase of several small parcels in the Prince William
Sound, Kenai Peninsula areas. Senator Halford indicated
that it may have been better to have gone through LB&A.
Senator Phillips said he was curious about River Ranch,
located near mile 32 on the Kenai River. Ms. Slagle said
there was a memo sent over this morning basically
transmitting Department of Administration's regarding the
longevity bonus. Also it requested a change in the
Department of Law's judgments. The Department of Law had
increased the amount of their request by $55,422 in general
funds and $4,012 in public employee retirement funds and
$13,900 in international airport revenue funds.
Barbara Ritchie, Department of Law was invited to join the
committee. She noted the additional judgments that came in
since the original supplemental was put together for
consideration. She explained the international airport fund
being another $13,000. The original request had been put
together by the Department of Transportation and they had
not calculated the post judgment interest. The general
funds request, "Sorensen", was a judgment in the amount of
$2,969.61 with interest and was a DMV license revocation
proceeding. (off record-return) Senator Rieger asked if
the core of the case was the ruling saying there was a due
process right involved in a revocation proceeding. Ms.
Ritchie concurred.
Senator Phillips referred to item #16 and Ms. Ritchie said
that was part of the election case that grew out of the 1994
election. This was a reversal in the "Dansereau" case and
since they were no longer the prevailing party they had to
repay the prior cost award to "Dansereau". He continued on
to item #17 and she identified "Cordova District Fishermen
United" and this matter arose out of a review of a State Oil
& Gas lease sale 1979. It involved an administrative appeal
which produced a declaratory judgement. The judgment was an
award of attorney fees and costs against the State. Senator
Rieger asked about the appeal and how many points did the
State win on. She said the State prevailed on one issue in
the case. Senator Rieger noted that some of the fees were
not disallowed because they pertained to the other point
they lost on but because they were excessive. Senator Sharp
asked if there was information weather the Trustees for
Alaska were involved in the original complaint. Ms. Ritchie
said they were not in the original case at the
administrative level but entered later. However, the party
is not entitled to attorney fees for time spent at the
administrative level. She further advised co-chairman Frank
that the "Brantly" and "Palmer" cases were discussed
previously. This was an additional $13,900 in interest that
had not been calculated in the original submittal on this
judgment. Co-chairman Frank asked that she explain the PERS
fund. She said this was an Anchorage case involving the
Public Employee Retirement System. They were sued and the
claim had been that under law that was in effect when the
plaintiff joined PERS she was entitled to specific medical
treatment that had been denied by AETNA. The case was
settled for attorney fees, the State paying half and AETNA
paying the other half. Nancy Slagle advised that was the
end of the judgments.
Co-chairman Frank introduced EVOS. (off record-return)
(change to tape SFC-96, #62, Side 1)
Molly McCammon was invited to join the committee. She noted
there were two major habitat protection parcels with the
oil spill area near the Kenai River. $12 million a year has
been committed to be put in an account. An extensive
planning process will be deciding on how to spend those
funds in the next one to two years. She referred to the
first phase of the small parcel program wherein willing
sellers are represented that have agreed to sell their lands
for appraised value as approved by a government appraiser.
These are all parcels within the spill area. Two are in
Prince William Sound and the remaining in the Kenai
Peninsula. In light of the Kenai River parcels it would
have been the council's preference to try and focus strictly
on the area closest to the river. However, in dealing with
private sellers basically it must be negotiated with what
private sellers are willing to sell. The Department of
Natural Resources would be responsible for managing these
lands. The primary benefits for which they are being
acquired is to protect the resources they surround. In some
cases it is sockeye and pink salmon habitat, herring
fisheries habitat, bird habitat, and intertidal resources.
In other cases it would also provide additional
opportunities for public access and recreation.
Senator Phillips requested information regarding the Tulin
parcel. She noted that it belonged to an elderly couple
that had homesteaded the property. The benefit of this
parcel was that it would provide beach access. She noted
this parcel was 220 acres. The River Ranch parcel is 146
acres, near Mile 32 on the Kenai River. Current owners were
considering putting in a fishing lodge and housing complex.
The program for acquiring these parcels on the Kenai River
is being done through a joint project of the Kenai Habitat
Restoration funded by Senator Stevens. Any lands acquired
under this program would be eligible for restoration.
Senator Sharp noted that there was very little river
frontage on the Tulin parcel. She said one of the main
attributes of this parcel was the potential for recreation
and tourism. Further, it is located on Katchemak Bay. The
City of Kenai indicated they would rezone this portion of
the bend of the river to conservation. All appraisals were
conducted by state appraisers.
Marty Rutherford testified via teleconference. In response
to Senator Sharps inquiry she said she would get the
information regarding the taxes paid on the parcels.
Senator Rieger commented on government appraisal. The
appraiser must determine the maximum value. Ms. McCammon
advised that all the parcels were appraised as a blank
slate. The landowners had no commitment that they would
accept the appraisal and there was no negotiated offer
beforehand. Senator Rieger further asked the success rate
of people agreeing to sell. Ms. McCammon indicated there
were 32 parcels considered for appraisal. Some acquisitions
would be going through the Forest Service and the Department
of Interior and will not go through the state process.
There are another five or six possible parcels for
consideration. The submission had to come from the
landowner.
Traci Cramer, Exxon Valdez Oil Spill was invited to join the
committee. In response to co-chairman Frank's question
regarding section 16, EVOS, she said it carried forward
what had been previously approved by Legislative Budget &
Audit Committee for the 1996 work plan. It was consistent
with past language in previous reappropriation supplemental
bills. Senator Halford requested copies of this paperwork
be submitted. He noted this was the first number of small
parcels involved. He said his concern was that this
generation would sell out to government ownership instead of
further private owners in areas that may be individually to
their benefit but may not be to the benefit of overall
private ownership in the future. The Kenai River has a lot
of private land and he did not want to see the settlement
eliminate the last vestiges of private ownership in the
entire Prince Williams Sound. Ms. McCammon felt this would
not happen because there were not enough landowners
interested in selling or participating in the program. Only
32 parcels were deemed significant or important enough to
actually have an appraisal done. Only those presently
before the committee had agreed to sell at that price. She
referred the committee to the Civil Settlement, Exxon Valdez
booklet. She noted the whole program for the Prince William
Sound was initiated by then Governor Hickel with the idea
that the Whittier access road would come to pass. Senator
Halford said his concern was that there would be private
facilities available to the public adjacent to public land
that help this land be used rather than government owned
facilities. Senator Sharp commented regarding
superinflation of the values and the prices going to be paid
and the other was what would the joint property owners be
faced with when the evaluation hits the assessment books and
the surrounding properties that are adjoining are re-
evaluated up to the price paid for the particular parcel.
Ms. McCammon said that among the landowners those that
seemed the happiest were those who had the parcel for twenty
to forty years. Those who purchased their lands later were
not on the list. Senator Halford voiced his further
concerns.
Co-chairman Frank requested RPL's and said Senators Sharp
and Halford would submit their recommendations to the
committee.
ADJOURNMENT
The meeting adjourned at approximately 10:55 A.M.
| Document Name | Date/Time | Subjects |
|---|