04/20/1998 09:10 AM Senate FIN

                                                                               
 SENATE BILL NO. 230                                                           
                                                                               
"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 convened the meeting noting they would begin                   
full committee closeouts on the operating budget for both                      
mental health programs and departmental closeouts for FY                       
'99.  She said all information regarding missions and                          
measures had been loaded on the WEB.  The numbers from today                   
will also be loaded in that go along with each of the                          
measures.  She said it was her intent to get through four                      
subcommittees; Child Care, Welfare Reform, Economic                            
Development and Human Resources.  Senator Adams asked about                    
amendments and Co-chair Pearce advised committee members                       
that all amendments must be in her office by noon on                           
Thursday of this week.  The committee will commence work on                    
amendments Friday morning.  She further noted there would be                   
Statewide teleconference available Thursday on the budget                      
and the capital projects.  The morning will be reserved for                    
those wishing to testify in Juneau and in the afternoon for                    
teleconference around the State.                                               
                                                                               
Senator Adams asked what the public should look at as far as                   
the capital budget?  Co-chair Pearce announced they would                      
take up the entire list the Governor has submitted,                            
including the capital projects included in the                                 
reappropriations bill.                                                         
                                                                               
Senator Phillips requested that the Co-chair take up Welfare                   
Reform first.  He noted they accepted the Governor's                           
proposed numbers, minus Child Care.                                            
                                                                               
Senator Adams MOVED Welfare Reform subcommittee report be                      
adopted by the committee.  WITHOUT OBJECTION it was ADOPTED                    
into SB 229 and SB 230.                                                        
                                                                               
                                                                               
Co-chair Pearce explained she chaired the Child Care                           
subcommittee.  By a vote of 2 yeas (Pearce, Leman) and 1 nay                   
(Ellis) the attached budget proposal was adopted.  They                        
recommended in child care benefits, except internal                            
transfers within the child care development fund and $6.9                      
million in total fund increases.  In Department of Community                   
and Regional Affairs, Child Assistance/ Child Care they                        
adopted technical adjustments and an $85,100 agency                            
transfer.  In Daycare Assistance they accepted the technical                   
adjustments and also the $4 million plus interagency                           
transfer from DHSS.  They also replaced $4 million in                          
general funds with $4 million Federal funds.  They further                     
accepted a grant for Head Start in the amount of $50,000.                      
Senator Phillips MOVED Child Care subcommittee report be                       
adopted by the committee.  Senator Adams OBJECTED.  He said                    
the minority had concerns regarding the numbers in the                         
Daycare Assistance Program and probably they would submit an                   
amendment on Thursday.  He noted a request by Head Start for                   
$1 million and asked if there was someone present from the                     
department who could respond to his question.                                  
                                                                               
REMOND HENDERSON, Director, Division of Administrative                         
Services, Department of Community and Regional Affairs was                     
invited to join the committee.  He advised WILLIAM MAILER,                     
Program Coordinator, Child Care Program, Division of                           
Community and Rural Development, Department of Community and                   
Regional Affairs was available via teleconference from                         
Anchorage.   Mr. Mailer explained that the $1 million                          
request for Head Start was to help increase the program to                     
twenty-five percent.  They are currently serving                               
approximately twenty-two percent of the individuals that                       
need Head Start.  They had also asked for funding to help                      
expand the Daycare Assistance Program as part of the                           
Governor's Smart Start package.  It would address the                          
individuals that are on waiting lists as well as those not                     
signed up but are known to exist.  Most individuals do not                     
sign up because they know funds are not available.                             
                                                                               
Senator Adams WITHDREW his objection.                                          
                                                                               
Co-chair Pearce said she understood Senator Adams' concern                     
and advised him that in this budget they were spending more                    
money on Daycare than they did last year.  They were also                      
capturing an additional $6 million in Federal funds with the                   
transfer of ATAP general funds match over to Child Care.                       
She noted for the record that she was very sensitive to the                    
need for child care.  The total being spent Statewide at                       
this time was $39 million.  She further explained that there                   
is  a  bill in the House sponsored by Representative Mark                      
Hanley that would combine the Child Care programs that are                     
now in HESS and C&RA.  If the bill passes they will leave                      
them as they are in the budget.                                                
                                                                               
Senator Phillips said that if the bill came to the Senate he                   
would recommend that CR&A be the lead agency for this, move                    
one person from HESS to CR&A and he felt then the customer                     
base would be happier having it that way.                                      
                                                                               
Therefore, Co-chair Pearce said WITHOUT OBJECTION the Child                    
Care subcommittee report was ADOPTED.                                          
Senator Donley MOVED the Economic Development subcommittee                     
report.  Senator Adams OBJECTED.  Senator Donley explained                     
briefly that the most controversial change was in the                          
Division of Trade and Tourism.  That regarded the Juneau                       
mine, which was not opened.  He further advised they took                      
the Governor's proposed numbers.  Senator Adams WITHDREW his                   
objection.  WITHOUT OBJECTION the Economic Development                         
subcommittee report was ADOPTED.                                               
                                                                               
Senator Torgerson MOVED the Human Resources subcommittee                       
report.  He explained the funding source change and also                       
some changes in the cut sheets.  The changes in the cut                        
sheets would be amended at this time.  He said they were                       
denying the increment for pre-school certification, denying                    
the increment for Statewide reading initiative, denying an                     
increment for sports in school and denying an increment for                    
comprehensive assessment program.  Senator Adams OBJECTED.                     
He said the objection was to the denial of the access                          
increment to the education special projects.  Senator                          
Torgerson said he would take another look at the matter.                       
Senator Adams said he appreciated that and WITHDREW his                        
objection.  WITHOUT OBJECTION the Human Resources                              
subcommittee report was ADOPTED.                                               
                                                                               
Co-chair Pearce called a short at ease at 9:40 a.m.  She                       
reconvened the committee at 9:50 a.m.                                          
                                                                               
Co-chair Pearce advised the schedule for the afternoon at                      
4:30 p.m.  She noted the afternoon bill hearing schedule                       
would commence at 5:30 p.m.                                                    
                                                                               
                                                                               
ADJOURNMENT                                                                    
                                                                               
Co-chair Pearce recessed the meeting at approximately 9:52                     
a.m.                                                                           
SFC-98 -1- 4/20/98