Legislature(2001 - 2002)
04/19/2002 04:08 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 403(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds."
SENATE BILL NO. 289
"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 reserve fund; and providing for an
effective date."
CS FOR HOUSE BILL NO. 404(FIN)
"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."
SENATE BILL NO. 288
"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."
Department of Health and Social Services
JAY LIVELY, Commissioner, Department of Health and Social Services,
testified that some aspects of the budget "significantly and
negatively impact the health and welfare of Alaskans."
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, noted the proposed budget
contains no funds for labor cost increases and also makes a three-
percent reduction to administrative service, and that as a result,
it would be more difficult to accomplish duties.
Ms. Clarke pointed out the committee substitute contains no
unallocated reduction and compared this to the "major unallocated
reduction" passed by the House of Representatives. She also noted
that many increments are not funded in the Senate Finance committee
substitute, specifically the Governor's request for the Smart Start
initiative.
Ms. Clarke addressed "cuts to the base." She listed a 20 percent
reduction of $4.4 million to alcohol treatment grants, and as a
result, approximately 1,300 fewer people would receive treatment,
waiting lists would be longer and the time before treatment is
received would increase. She spoke of the "maintenance of effort"
required of this program by the federal government to qualify for
block grant funding. She explained that with the proposed amount of
State funding, the federal block grant would be reduced in FY 04,
and she translated this into a reduction of the number of
residential treatment beds in all locations except Anchorage and
Fairbanks. She added that the Youth Residential Services program in
Anchorage would need to be closed as well.
Ms. Clarke informed the Committee of the Alcohol Safety Action
Program that helps the court system monitor those arrested for
Driving Under the Influence offenses. She stated the proposed
budget would reduce funding for this program by $528,100. She
warned that this would eliminate the newly established Juvenile
Alcohol Safety Action Program as well as require the closure of
five of the eight grantee offices; those located in Dillingham,
Ketchikan, Kodiak, Mat-Su and Seward.
Ms. Clarke next spoke to the $289,100 reduction to the base funding
amount for the community-based suicide prevention program, which
would result in 19 fewer communities receiving grants. She
commented these grants amount to approximately $15,000 each and
that "this program goes a long way to getting, in many villages,
counselors in those villages to help in that area."
Ms. Clarke expressed concern about the $2 million funding reduction
to the Chronic and Acute Medical Assistance (CAMA) program, which
serves those who are terminally ill, or have one of the following
diseases: diabetes, seizure disorder, chronic mental illness or
hypertension. She noted that recipients of these program benefits
have no other insurance coverage and also have monthly income
levels no greater than $300 and no more than $500 in assets. She
informed this program currently serves over 1,200 Alaskans annually
and that the proposed funding amount would allow only 600 people to
be served in FY 04.
Ms. Clarke then told of the impact of the proposed $400,000
reduction to the public assistance field services office, which
would require the elimination of 17 caseworker positions located in
Anchorage, Fairbanks, Juneau, Mat-Su, Kenai and Bethel. She pointed
out these caseworkers assist poor Alaskans to become more self-
sufficient.
Ms. Clarke reminded the Committee that the budget passed by the
House of Representatives contains a $7 million unallocated budget
reduction for the Department. She shared that the Department has
identified methods to adjust to this reduction, including changing
the infant learning program into a needs based program. She stated
that the budget subcommittee implemented many of the identified
methods into its recommendations. She stressed that the change to
the infant learning program was proposed as a concept that has not
been researched. Therefore, she advised that actual implementation
and success of such a change is unknown. She assured that the
Department "would make every effort" to implement the changes
successfully. She relayed concerns of grantees questioning the
feasibility of adapting to the budget reduction.
Ms. Clarke listed the approximately $200,000 reduction to Emergency
Medical Service (EMS) grants and described the "critical lifesaving
volunteer medical services" and "a lot of bang for the buck"
provided by this program.
Co-Chair Donley asked the total budget of this program and whether
the amount the witness characterized as a reduction from the prior
year is actually a request for additional funds that was denied.
Ms. Clarke listed the total budget of $1.7 million in FY 02 and
stated the committee substitute appropriates $200,000 fewer funds
for FY 03.
Senator Austerman asked if the program is funded entirely with
general funds.
Ms. Clarke responded that general funds primarily fund the program.
Ms. Clarke next addressed tobacco-related programs, informing that
the proposed FY 03 budget does not reduce the FY 02 base funding of
$2.5 million. However, she pointed out that the additional $4
million requested by the Governor is necessary due to legislation
passed the previous year establishing the Tobacco Education And
Cessation Fund. She explained this fund requires the use of 20
percent of all settlement receipts for tobacco education and
cessation programs.
Co-Chair Donley asked the amount necessary to reach the 20 percent
requirement of the Tobacco Education and Cessation Fund
legislation.
Ms. Clarke answered approximately $2 million.
Ms. Clarke stated that the appropriation proposed for Community
Mental Health Services is a $900,000 reduction to the FY 02 base
funding amount. She stated that the Department would be required to
reduce all support for general community mental health and limit
grants to those with severe emotional disturbance or those who are
chronically mentally ill, as these are the people requiring
immediate service. She warned that state services would not be
available to the remainder of people diagnosed with a mental
illness, and consequently, early intervention could not occur.
Ms. Clarke stressed that the Division of Family and Youth Services,
is critical to protecting children from abuse and neglect. She
noted the committee substitute contains no reductions to "front
line" social workers, foster care and subsidized adoption; however
it proposes to reduce funding for family preservation grants. She
described the prevention aspects of this program, including
assisting parents, reunification activities, intensive pre-
placement services, and follow-up care for families. She summarized
that although no new increments are funded, child protection is
funded at the FY 02 level.
Ms. Clarke listed other "critical functions" that are funded in the
committee substitute at the FY 02 level, including increased labor
costs: juvenile justice, epidemiology services, public health
nursing, developmentally disabled grants and the Alaska Psychiatric
Institute.
Senator Wilken asked if the entire amount of EMS Grants is utilized
for equipment purchases or whether any portion is utilized for
staff expenditures.
Ms. Clarke replied that most of the funds are used for training
activities. She noted none of the grant funding is expended on
equipment.
Mr. Livey added that volunteers primarily operate this program and
that this program provides training for search and rescue teams and
fire fighters throughout the State.
Senator Wilken indicated his priority is to obtain the best
equipment possible for this program.
Senator Wilken referenced a letter addressed to him from the
Fairbanks North Star Borough [copy not provided] regarding changes
to the Community Matching Grant Program. He asked for an
explanation of said changes.
Ms. Clarke affirmed the committee substitute proposes changes to
the Community Matching Grant Program, which is a "pass through"
program to Anchorage and Fairbanks. She informed that the
unallocated budget reduction contained in the budget approved by
the House of Representatives included the elimination of this
program. She said the initial recommendation of the Senate Finance
budget subcommittee was to retain the program but reduce it 50
percent. She noted that after hearing the concern of the Fairbanks
North Star Borough, the subcommittee's final recommendation was to
reduce funding for the program by 25 percent, or approximately
$425,000 from FY 02.
Senator Wilken asked if the reduction to this program would be
"spread equally across all programs".
Ms. Clarke emphasized this program only provides funds to the
Municipality of Anchorage and the Fairbanks North Star Borough.
Senator Green pointed out that since the subcommittee report was
submitted, legislative staff and representatives of the Department
have been making efforts to secure alternate funding for the EMS
Grants program.
Senator Olson cited the Department's impact statement [copy on
file], noting the elimination of funding for alcohol and drug abuse
residential treatment programs in all locations except Anchorage
and Fairbanks. He asked why the Anchorage and Fairbanks locations
were "preserved".
Ms. Clarke understood the decision was based upon the number of
people served, the size of the urban programs along with "the
belief that they could cover the rest of the State". She stated
that it was determined "this was the best of a very bad situation
retrenchment into those large communities."
Senator Olson asked the number of treatment center programs that
would be eliminated.
Ms. Clarke replied that she would provide that information.
Department of Labor and Workforce Development
REMOND HENDERSON, Director, Division of Administrative Services,
Department of Labor and Workforce Development, thanked the
Committee for passing SB 262, which establishes the building safety
fund. He noted this proposed budget does not provide funding for
inspectors although the other legislation provides necessary
funding for these positions.
Senator Olson asked the consequences of failing to inspect the
boilers.
Mr. Henderson replied it is a matter of safety of the 6,000 boilers
that must be inspected and could possibly explode if not properly
maintained.
Senator Olson asked the locations of the boilers needing
inspection.
Mr. Henderson noted distribution is statewide. He listed the number
of uninspected boilers in various communities.
Department of Law
BARBARA RITCHIE, Deputy Attorney General, Civil Division, Office of
the Attorney General, Department of Law testified that the
committee substitute proposes a budget for the Department that is
approximately $2.5 million less than the amount requested in the
Governor's budget and approximately $1.6 million less than the FY
02 appropriation. She stated that the committee substitute contains
a $983,000 budget reduction and does not appropriate $680,000 to
fund increased labor expenses and position reclassification
expenses or the $531,700 necessary to implement recently passed
crime-related legislation.
Ms. Ritchie spoke to the difficulty in determining how the
"reductions of this magnitude" would be absorbed. She asserted that
although the budget subcommittee attempted to assist in this
endeavor, "there aren't any really good choices here" and impacts
would be experienced.
Ms. Ritchie informed the Committee that the directed $250,000
reduction to the Civil Division and could require the elimination
of two attorney positions, or one attorney position, one paralegal
and support staff positions. She characterized this Division as
having "the largest grouping of general fund activities," in which
the Department is "loathe to reduce" as those activities have
direct impact on the health and safety of Alaskans, particularly
children.
Ms. Ritchie noted the denial of funding for the Balloon Project,
relating to child protection, warning that this would result in the
elimination of one attorney position dedicated to this project. She
explained these funds are received from the Department of Health
and Social Services as a reimbursable services agreement (RSA).
Senator Green clarified that the budget subcommittee recommended
the Committee restore almost all funding not provided in the budget
passed by the House of Representatives.
Ms. Ritchie stated this is a "preferred scenario" and that one
attorney position could be retained for the Balloon Project, thus
necessitating the loss of one-half attorney position.
Ms. Ritchie continued that legal services for natural resources and
fish and game efforts would be reduced, given the dependence on
general funds for these activities.
Ms. Ritchie pointed out that almost all work conducted by the
Department is "incoming". She explained that the Department is
defending the State against lawsuits, prosecuting those who commit
crime or protecting children. She stressed the Department has
little control over the amount of legal work produced and stated
this is the reason it would be difficult to determine how
reductions would be made.
Ms. Ritchie spoke to the $250,000 proposed reduction to the
Criminal Division. She noted this would result in a reduction of
the number of prosecuting attorneys and support staff positions;
stressing this is the only option as over 70 percent of the
Division's budget is for personnel. She stated that the position
reductions would be made in the largest of the 14 district attorney
offices in the State, likely those offices located in Anchorage and
Fairbanks. She noted that the local Fairbanks government recently
repealed ordinances relating to domestic violence and as a result,
this workload is transferred to the State.
Ms. Ritchie next addressed the reduction of $442,500 general funds
to Oil and Gas Litigation programs. She commented that the budget
for these activities have been reduced "pretty dramatically" over
the past several years, although the Department has been able to
adjust to the reductions because many of the major cases have been
resolved. However, she advised that gasoline issues must be
addressed in the upcoming year. She noted the Department has more
control over the workload in this area in that it could determine
whether to pursue cases but she stressed the importance of
undertaking cases to obtain tax revenue, etc.
Ms. Ritchie then detailed the fiscal notes of recently passed
legislation that were not funded in the committee substitute,
including the collection of victim restitution. She described the
program whereby the Collections Section of the Civil Division
undertakes these activities and noted the Section is ideal for this
as it currently conducts other collection efforts utilizing
paralegals and administrative support staff. She informed that
judgments are being received under this operation, but cautioned
that without the remainder of the $106,000 requested for this
purpose, the Section would have an insufficient number of staff to
undertake the collection of approximately 5,000 court-ordered
judgments annually.
Co-Chair Donley referenced testimony heard from other states that
contract collections to private entities with success rates of up
to 70 percent. He asked why the success rate is only 30 percent in
Alaska, given the existence of the Alaska Permanent Fund Dividend
(PFD) program.
Ms. Ritchie questioned the accuracy of the 30 percent success rate
information, as she understood the efforts to be considerably more
successful. She told of the collection of almost $400,000 primarily
through permanent fund dividend garnishments. She relayed the
negative experience of a previous attempt to contract other
collection activities to an outside entity, in which the State had
to terminate the contract. She offered to research the matter of
contracting versus in-house operation of collection activities.
Ms. Ritchie spoke to newly adopted legislation relating to Driving
While Intoxicated (DWI) offenses and therapeutic courts, which
require funding to implement. She reminded of the fiscal note
request for an additional attorney position in the Criminal
Division to enforce the DWI legislation and pointed out that this
increment was not funded in the committee substitute. She
questioned the ability to meet the "public expectation" of the
"level of prosecution" without adequate funding. She also noted the
additional attorney position requested in the fiscal note to
implement the therapeutic courts legislation was not funded. She
described the importance of this program to rehabilitate offenders
and the efficiency of utilizing an attorney rather than a judge,
who could then focus on other court matters such as child
protection.
Ms. Ritchie informed the Committee that the Fairbanks Courthouse
would close on July 1, 2002 and the State's district attorney's
office in that city must be relocated. She said a request for
proposals (RFP) has been issued to secure a new facility and that a
$100,000 to $200,000 impact is expected.
Ms. Ritchie stated that the approximate $500,000 unallocated
reduction to the Office of the Attorney General for unfounded labor
cost increases would make it difficult for the Department to
fulfill the obligations described in its Missions Statement to
represent the State in litigations and in prosecuting crimes. She
stated that a significant portion of the reduction could be
allocated to Oil and Gas Litigation activities, as the Department
has greater control over the workload in this area than in
prosecution of crimes. She also predicted a greater backlog in all
cases. She expressed that efforts would be made to adjust to the
budget reduction in a manner that would have the least impact to
the health and safety of Alaskans.
Senator Olson asked for a comparison of the level of service this
budget would allow to the level of service the Department currently
provides.
Ms. Ritchie answered that 71 percent of the Department budget is
utilized for personnel expenses and that the budget reduction would
result in the elimination of some positions. She stated that
service would be reduced to natural resource related areas and that
other departments would receive less legal council. She also noted
that prosecution of criminal offenders would be reduced in urban
areas. She stressed that funding to address child abuse and child
neglect would not be reduced, as these functions are critical and
already "overburdened".
Senator Olson was troubled by the recently repealed domestic
violence ordinances of the Fairbanks North Star Borough and asked
how this would impact the Department.
Ms. Ritchie described the screening process of determining which
cases would be brought to trial. She predicted delays could occur
and that less attention would be devoted to each case because of
limited staff.
Senator Olson next asked how the therapeutic courts would
specifically deal with "those criminals whose problem stems from
alcoholism".
Ms. Ritchie was unsure. She stressed the program is very resource
intensive and involves a different court system. She stated the
intent is to determine whether this process would reduce repeat
alcohol and drug related offenses. She warned that by not fully
funding the program, the results would be indeterminate.
Senator Olson asked the proposed funding amount would jeopardize
the Therapeutic Courts program and "the success we've seen thus
far."
Ms. Ritchie replied not necessarily, although it would impact the
Department's ability to fully participate.
Department of Military and Veterans Affairs
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Military and Veterans Affairs and
Department of Natural Resources, testified that the Department of
Military and Veterans Affairs has determined the proposed $640,000
budget reduction would be taken in the Alaska Military Youth
Academy. He stated this would be done with the anticipation that HB
312 would pass and that general funds for this program would be
replaced with inter-agency receipts (I/A Receipts).
Mr. Bus stated that otherwise the proposed FY 04 funding is status
quo, with the exception of increased actuarial costs of $442,000 in
retirement and benefits due to poor performance of the stock
market.
Co-Chair Donley asked for an explanation of HB 312.
Mr. Bus explained the legislation would fund the operations of the
Alaska Military Youth Academy similar to a school, by providing
funding based on each student or cadet. He exerted this would
provide a stable funding source for the Academy and as the
population of students increases and decreases, the amount of
funding would as well. He noted the program was initially federally
funded as a pilot program and that the State contribution has
increased to the current 40 percent funding.
Senator Wilken clarified HB 312 "stops the transition from the old
formula to new foundation formula" as it relates to education
funding and noted that the Alaska Military Youth Academy was
included in a committee substitute.
Senator Olson asked how many fewer students would be accepted into
the program.
SFC 02 # 72, Side B 04:55 PM
Mr. Bus stated if the alternate funds were not received, the
Department would no longer qualify for a federal grant and the
entire program could be eliminated.
Senator Olson asked the total budget of the academy program.
Mr. Bus answered the federal grant is $3.5 million, of which $2.1
million is provided by the federal government and $1.4 million is
State general funds.
Co-Chair Donley asked if the stipends paid to students is a federal
grant requirement.
Mr. Bus replied that stipends are a federal requirement and that
other states address the matter differently.
Mr. Bus detailed the three stages of the academy program, including
the final stage after graduation whereby graduates are paid a
stipend up to 12 months if they continue to participate in the
program. He explained the post graduation requirements of meeting
with mentors and staying in school and noted this allows the
success of the program to be monitored. He qualified that the
federal government could not mandate the stipend payments, although
it "strongly encourages" stipends through it's grant program. He
relayed that the federal government has indicated that not
providing the stipends could result in loss of the grants because
other states are willing to offer the stipends.
Mr. Bus informed that many graduates of the youth academy utilize
the stipend payments to enroll in secondary education programs.
Senator Ward asked if any states receive the federal grants but do
not pay stipends to graduates.
Mr. Bus replied that most states do pay stipends although "a
couple" do not. He stated he would provide further information.
Senator Olson asked if the Department's level of service would be
reduced if the proposed budget were passed.
Mr. Bus responded that if the Department did not receive the
$654,000 in alternate funding, the youth academy must be
eliminated.
Department of Natural Resources
PAT POURCHOT, Commissioner, Department of Natural Resources,
testified that the budget subcommittee allowed the Department to
provide input in determining ways to accommodate for the "very
problematic" budget restriction. He was particularly appreciative
of the subcommittee's accommodation in oil and gas activities as
well as with a mining project located in the Denali "block".
Mr. Pourchot referenced both a 16 page impact statement and a two
page summary [available on the Office of Management and Budget
website] but expressed his testimony would focus only on two items.
The first item he listed as a $400,000 fund source change to the
Division of Oil and Gas from general funds to a federal grant
called the Community Impact Assistance Program. He described the
grant program whereby federal funds are appropriated to the
Division of Governmental Coordination in the Office of the
Governor. He informed that the Department of Natural Resources had
been unfamiliar with this program and upon review, is concerned
that the funds are "one time monies". He warned that if these funds
were utilized for FY 03, "serious problems" could occur the
following fiscal year if funds were not appropriated for the
Division of Oil and Gas. In addition, he noted that approximately
$12 million in requests have been submitted although only $2
million is available. He furthered that the federal public
involvement process for developing a plan have been completed and
approved by the US Secretary of Commerce. He stated that any
amendments to the plan would require additional public involvement
and reapproval. He was unsure the outcome of such review, although
stressed that significant time would be required.
Mr. Pourchot next addressed proposed ten-percent general funding
reduction of $530,000 to the Division of Parks. He warned this
would result in the closure of approximately 21 park units across
the State. He shared that an analysis has been conducted to
determine which parks generate the most revenue, as program
receipts are utilized for operation expenses, as well as
identifying the parks with heavier usage and the maintenance
expenses of each park. He surmised that such a large number of
park closures would be unacceptable for the public. He relayed a
recommendation of the subcommittee to introduce legislation
allowing receipt supported services of park revenue to allow the
expenditure of the approximately $2 million in receipts. He
predicted this would fully fund the park operations plus other
Department activities.
Senator Wilken referenced correspondence relating to forestry
projects in Interior Alaska [copies not provided] and asked how the
proposed budget would impact these projects.
Mr. Pourchot reminded that the House of Representatives adopted a
budget that contains reductions that "would definitely affect"
timber harvesting projects, especially those located in Interior
Alaska. He assured that the Senate Finance committee substitute
does not contain any specific general fund reductions to the timber
harvesting projects; however, close attention must be paid to
maximize timber generated revenue to enable utilization of non-
general fund receipts for additional projects. He stated that
Southeast Alaska, with its bigger trees and denser timber growths
is likely to generate higher revenue than in other areas of the
State, such as in Interior Alaska. He added that less emphasis
would be made on value added local processing, which generates less
income for the State than the export of raw materials. He assured
the Department still intents to maintain a "credible" value added
program.
Senator Austerman asked the number of employees in the Division of
Oil and Gas.
Mr. Pourchot answered approximately 60 to 65 positions are located
in the Division.
Senator Austerman cited the impact statement summary stating that
employees would be laid off if the $400,000 were not received. He
asked the number of employees that would be laid off.
Mr. Pourchot responded that because the salaries of employees of
the Division of Parks are significantly less than the Division of
Oil and Gas, fewer employees would be laid off from the Division of
Oil and Gas. He estimated that four or five personnel would be
eliminated from the Division of Oil and Gas if the aforementioned
$400,000 were not provided.
Senator Austerman next referenced the proposed reduction to the
Division of Parks is equal to ten percent of the general funds to
the parks program. He asked the amount of fee increases that would
be necessary to replace the lost appropriation.
Mr. Pourchot replied the Division currently receives approximately
$2 million of the total $5,5 million Division budget in program
receipts, including day use fees, campground fees and boat launch
fees as well as some concessionaire contracts. He informed that in
January 2002 fees for day use, season passes and boat launch
permits were increased, resulting in complaints from users and
legislators. He surmised the current fees are "pushing the limit"
in "what Alaskans expect to pay for access to their public parks."
Senator Austerman clarified that in the 21 parks that would be
closed, the lands would remain available for use although the parks
and facilities would not be maintained or staffed.
Mr. Pourchot responded that the identified parks would be
"physically barricaded" with the "hope" that people would not
continue to use the parks. He stressed there would be no garbage
service, septic pump operation or management of the units. He
admitted people might still utilize the parks, but expressed that
such use would "create other problems" with other financial
implications.
Senator Austerman agreed that the closure of 21 parks "would not be
good" and he hoped the parks would not be misused. However, he
emphasized the parks are State land and would be accessible for
use.
Mr. Pourchot clarified that the parks would remain available for
"non developed recreational use" but that park facilities would be
barricaded.
Senator Olson asked how the Department would determine which parks
would be closed
Mr. Pourchot stated the Department determined that the closures
should be distributed statewide. He detailed the review of the cost
of managing each unit, noting that some remotely located parks
incur higher transportation costs. He also noted that the parks
that generate significant revenue would not be closed as well as
those parks with high use patterns. He qualified that most State
parks receive considerable use.
Senator Olson wanted to know how the proposed budget reductions
would affect the level of service compared to the FY 02 budget.
Mr. Pourchot answered that the Governor's proposed budget for the
Division of Parks includes a "modest increment" necessary to
maintain the level of service the public is accustomed to.
Therefore, he stated that the Senate Finance committee substitute
would result in significant less service.
Senator Wilken asked if more or less timber sales would occur.
Mr. Pourchot replied that most of the planned timber sales in
Interior Alaska would proceed as planned. He noted that a few sales
could be deferred or superceded by timber sales in Southeast
Alaska, due to the higher revenue possible for those sales.
Senator Ward asked the number of parks that would close if the
committee substitute were passed and the legislation relating to
funding park operations with receipt supported services also
passed.
Mr. Pourchot answered that no parks would be closed, although the
legislation he earlier mentioned has not been introduced.
Co-Chair Donley asked the ratio of supervisors to "line workers" in
the Department.
Mr. Pourchot was unsure but noted that divisions have been
consolidated and subsequently management at upper and middle levels
have been "collapsed" over the past several years. He gave the
formally separate Divisions of Mining, Water and Lands as well as
the position held by Nico Bus with the Department of Natural
Resources and the Department of Military and Veterans Affairs as
examples.
Co-Chair Donley requested the number of employees covered by the
General Government Unit (GGU) versus those covered by the
Supervisors Unit.
Mr. Bus stated he would supply that information.
Department of Public Safety
GLENN GODFREY, Commissioner, Department of Public Safety, noted the
budget proposed in the Senate committee substitute is almost $1.8
million higher than the amount approved by the House of
Representatives; however, it would still negatively impact the
Department and result in reductions of up to 47 positions,
including at least 17 trooper positions and 19 seasonal fish and
wildlife protection aides statewide. He stated that the Division of
Fish and Wildlife Protection would be required to terminate its
seasonal fish and wildlife aide program.
Mr. Godfrey informed that an additional $3.3 million is required to
maintain the FY 02 level of service in FY 03. He noted this does
not include increments for additional child abuse investigations
and other programs recommended by the public.
Mr. Godfrey expressed that the proposed $1.7 million unallocated
reduction to the Office of the Commissioner would "have a definite
impact on public safety services across the State." He recalled
that over the past several years the Department has eliminated mid
level and upper level managers, particularly in the uniformed
divisions. He informed that the Department attempts to maximize
field positions and minimize administrative support positions. He
stated that no programs within the Department would be able to
absorb the unallocated reduction "of this magnitude". He warned
that because the Division of Alaska State Troopers and the Division
of Fish and Wildlife Protection represent the largest budget
components, these divisions would "shoulder the majority of these
cuts." He furthered that other programs, including the Division of
Fire Protection would be negatively impacted as well. He testified
that field positions would be reassigned to perform the necessary
administrative functions, as the proposed budget would "cripple"
the centralized administration.
Mr. Godfrey pointed out that $960,000 is necessary to accommodate
for fixed cost increases for general funded support services, such
as fuel cost increases, emergency guard hires and prisoner
transport expenses, increased costs for forensic examinations
associated with sexual assaults and increased trooper housing
expenses.
Mr. Godfrey informed that Alaska is "already well below, by about
half" the national average of the ratio of troopers to population.
He noted this does not take geographical areas into consideration.
He stressed that recently passed legislation along with proposed
legislation, such as HB 4 relating to drunken driving penalties,
would be less effective without adequate law enforcement.
Mr. Godfrey shared the terrorist events of September 11, 2001 have
affected all states and have resulted in additional public safety
responsibilities. He listed the Alyeska Pipeline as a facility
requiring the protection of the Department. He stressed these
additional responsibilities are difficult to assume given the
current resources. He stated that the available funding should be
increased rather than decreased.
Mr. Godfrey expressed intent to continue efforts to obtain adequate
funding to provide public safety at the current level.
Senator Olson asked the level of service that would be provided in
rural Alaska in FY 03.
Mr. Godfrey answered that currently response time to incidents
located both along the road system and off of the road system would
be affected. He relayed complaints he receives weekly about delayed
response time. He qualified that once a trooper arrives at the
scene of an incident, the involved parties seem to be satisfied
with the level of service received.
Senator Olson asked if the Department has requested supplemental
funding for FY 02 expenses.
Mr. Godfrey described the request for approximately $488,000 for a
homeland security package in addition to a supplemental request for
over $1 million for normal expenditures. He detailed the homeland
security package including $288,000 to fund a temporary checkpoint
established at the Yukon River and $135,000 for homeland security.
He told of an upcoming training exercise involving federal and
municipal agencies to prepare for possible terroristic attacks. He
stated this drill would cost the State over $64,000.
Senator Olson asked the number of "brown shirts" (fish and wildlife
protection officers) and "blue shirts" (Alaska State Troopers)
positions would be eliminated under the proposed Senate committee
substitute budget.
Mr. Godfrey listed 17 blue shirts, six court services officers, or
"gray shirts", and 19 brown shirt seasonal aides, for a total of 47
positions lost.
Senator Austerman stated the Department of Public Safety gave the
budget subcommittee a list of programs that could be reduced. As a
result, he recommended the elimination of the Civil Air Patrol and
the Batterers Intervention Program to maintain funding for core
services. He reminded that the two programs are recent additions to
the Department's operations and expressed his preference to
eliminate programs rather than "weaken" the entire Department. He
noted however that the subcommittee disagreed with this approach
and recommended funding for avalanche related programs.
Senator Olson noted the significant funding reductions proposed for
administrative services. He asked the impact on the trooper
programs.
Mr. Godfrey responded that many outlying posts would be affected by
the loss of administrative assistance resulting in uniformed
support troopers performing these functions instead of operating in
the field.
Senator Olson next spoke to the proposed reduction to the Village
Public Safety Officers (VPSO) program emphasizing the dependence
upon this program in rural area.
Mr. Godfrey explained that support troopers are those who travel to
rural villages to provide support and training to the VPSO staff
stationed in those locations. He clarified these are not positions
stationed in urban areas performing administrative support duties.
Therefore, he stressed the VPSO program would be impacted by
reduced funding for support troopers.
Department of Transportation and Public Facilities
KURT PARKAN, Deputy Commissioner, Department of Transportation and
Public Facilities, testified the proposed Senate Finance budget
would have a substantial impact on Department operations. He listed
the loss of 187 positions, closure of two maintenance stations,
partial closure of a third maintenance station, and reduced road
maintenance throughout the State.
Mr. Parkan furthered that a six to seven week reduction in Alaska
Marine Highway (AMH) ferry service would occur: service of the M/V
Columbia could be reduced by one and one half months, the M/V
Malaspina, which currently provides service to the northern Lynn
Canal, would be surplussed, the M/V Bartlett would be surplussed in
May 2003, the M/V Aurora would be in lay-up status from July 2002
through May 2003, then relocated to the Prince of Wales route
formerly service by the M/V Bartlett, the M/V Taku, which provides
service between Prince of Wales and Skagway, would be laid up from
October 31, 2002 through June 1, 2003. In addition he stated that
a fee increase would be implemented for all passengers and vehicles
and prices for on board food service would be raised.
Senator Olson asked the level of service to rural Alaska in FY 03.
Mr. Parkan answered that service would be reduced for the roads in
the Nome area. He referenced the Department's impact statement as
containing further details [copy on file.] He qualified that the
budget proposed by the Senate Finance Committee is "kinder" to the
Nome area than the version passed by the House of Representatives.
Senator Olson expressed concern that the Department would not "turn
the lights out on the runway".
Mr. Parkan assured that the Department has determined that airport
service is critical to many parts of Alaska, as they provide the
only access to several communities, and that the levels of service
would be maintained to ensure the airports retain certification.
Senator Austerman asked the number of maintenance stations located
outside of major urban areas.
Mr. Parkan estimated the State currently has approximately 50
maintenance stations.
Senator Austerman wanted to know how many stations would be closed.
Mr. Parkan answered four: Kalson Bay, Kodiak, Chitna, and Birch
Lake, noting that operations at other stations would be reduced due
to staff restraints. He gave the station located in Willow as an
example, in that staffing would be reduced by fifty percent.
Senator Austerman asked if the positions located at the closed
maintenance stations would be eliminated or transferred to urban
areas.
Mr. Parkan replied that in some instances the positions are
eliminated and in other instances the staff are relocated to an
adjoining maintenance station. He added that equipment is either
transferred to another station or surplussed.
Alaska Court System
CHRIS CHRISTENSEN, Deputy Administrative Director, Alaska Court
System, testified that the Court System is unique and that the
impacts of the proposed budget reductions would be "magnified". He
explained that the Court System operates one program: to provide a
forum for the resolution of civil and criminal cases filed by
individuals, businesses and governmental entities. He stressed that
the trial courts are not allowed to refuse to hear a case
presented, and that the Court is required to administer the program
within a certain mandated time frames as stipulated in the
constitution and in statute.
Mr. Christensen informed that the proposed budget in the Senate
committee substitute contains a reduction of almost six percent in
"available dollars" from FY 02, which is almost $3 million. He
noted this amount includes the $2.5 million necessary for increased
costs plus a $597,000 unallocated reduction. He listed the
increased costs not funded: pay raises approved by the Legislature
two years prior, $146,000 for the second year of operations of the
Driving While Intoxicated (DWI) Courts in Anchorage and Bethel, and
$680,000 for required increased contributions to the Judicial
Retirement System. He noted the retirement fund had been over
funded in recent years and those funds had been available for
reappropriation, although this year, a portion of the funds must be
returned to maintain the actuarial value of the account.
Mr. Christensen stressed that fewer resources to handle an
increased caseload would result in slower processing of that
caseload. However, he reiterated that a majority of the cases could
not be delayed.
Mr. Christensen asked how the Court System would manage the funding
reduction "of this magnitude". He suggested the Court System could
discontinue operations in some locations, although he pointed out
this does not stop the demand for services: people would still get
divorced and crimes would continue to be committed. He also noted
that closing the third largest courthouse in the State located in
Palmer, for example, would only realize a savings of approximately
$1.5 million, which is only half the amount necessary.
Mr. Christensen did anticipate that some smaller magistrate courts,
with smaller caseloads, would be closed, as well as some larger
courts located along the road system. He furthered that the larger
courts, notably those in Anchorage and Fairbanks, would have
significant layoffs.
Mr. Christensen told of efforts of the past several years to
quicken the casework process, which he stated would be reversed as
a result of these layoffs and court closures. He stressed that
because the State constitution mandates that criminal cases be
prioritized civil cases and family cases would be delayed. He noted
that approximately 30,000 felony and misdemeanor cases were filed
in Alaska during the previous year, and of that amount four "fell
through the cracks" and were dismissed under the "speedy trial
rule." He predicted more such dismissals would occur if the layoffs
and court closures were instituted.
Mr. Christensen spoke to the consequences of delaying some civil
cases, including the loss of federal funding. He continued that
family law cases do not have a statutory or constitutional mandate
for resolution in a certain timeframe. Therefore, he stated these
cases would be delayed the most, and he surmised these are the
cases that should be delayed the least.
SFC 02 # 73, Side A 05:43 PM
Mr. Christensen reminded the Committee that judges are required to
provide a sworn affidavit every two weeks attesting they are
"caught up on their work" or their paycheck is withheld until the
work is up to date. He advised, as a lawyer, that this law is
likely unconstitutional, although, as a court manager, he
characterized this law as "a great tool". However, he opined that
judges should not lose their paycheck due to lack of resources
available to complete their duties.
MARLA GREENSTEIN, Executive Director, Alaska Commission on Judicial
Conduct, testified via teleconference from Anchorage, that the
Commission is constitutionally mandated to address complaints
related to judicial ethics. She noted the Commission has no control
over the caseload. She informed that two full time positions are
necessary to fulfill the normal duties and that outside council is
contracted to handle serious cases involving formal hearings. She
stated that the proposed funding allocation for the Commission is
inadequate and fewer funds would be available to hire the outside
council.
Ms. Greenstein shared the history of repeated supplemental budget
requests. She warned that if the Commission is not funded fully, it
would "severely impact" the ability to enforce the judicial ethics
code. She predicted that some difficult cases would not be
processed and that the quality of the prosecutions would diminish.
LARRY COHN, Executive Director, Alaska Judicial Council, testified
via teleconference from Anchorage, that the proposed Senate Finance
budget of $742,000 for the Council is approximately seven percent
less than the current budget and the same as the budget of eight
years prior. He stated that approximately $39,000 of the reduction
is a result of the Council's completion of a comprehensive criminal
justice study. He informed that the Council has proposed a new
study relating to self-represented litigants that would require an
additional $39,000, although he did not anticipate receiving those
funds. He asserted that the Council has few discretionary
responsibilities, as the constitution or statutes mandate almost
all the work undertaken.
Mr. Cohn noted the Council has not requested supplemental funding
in over 20 years, although the proposed budget provides less
funding "at a time when the Council has increased
responsibilities." He listed one of the additional
responsibilities, as contained in HB 172 passed the previous
session, to evaluate the performance of two new therapeutic courts.
He furthered that the pending HB 515 would require the Council to
establish performance measures for the Alaska Court System.
Mr. Cohn commented that the Legislature has considered funding the
development of fisheries, mining and other resource development and
he stressed that funding the Council is an investment in justice.
Senator Olson asked how the level of service of the Alaska Court
System would be affected by the proposed budget allocations.
Mr. Christensen responded that some criminal cases would not be
processed and that there would be "a complete loss of service" to
some small communities. He asserted that the Alaska Court System
would be unable to fulfill its constitution mandates with the
proposed level of funding.
Senator Olson asked if the court located in Nome would be closed.
Mr. Christensen answered that decisions have not been made as to
which courts would close. He spoke to the criteria used in
reviewing whether layoffs or closures would be made at each
location. He listed available alternative facilities for a
community and the quality of employees at each court, as some are
able to work more efficiently.
Senator Olson referenced the testimony of the Alaska Judicial
Council claiming that the funding for evaluation of the therapeutic
courts is insufficient. He asked the long-term consequences to the
program.
Mr. Cohn replied that the Council was not provided with funding to
undertake the duties required of it in the enabling legislation
establishing the therapeutic courts. He described the studies
scheduled for the next three to four years to collect, analyze, and
report data. He stated the lack of funding for the evaluation
process should not affect the on-going operations of the court for
the next several years, although the absence of a complete
evaluation would affect the information available to the
legislature for determining whether the courts are worthwhile.
Senator Olson commented that it would be difficult to be "hard on
crime" if the necessary information is not provided.
Mr. Cohn affirmed that more information is beneficial. He suggested
that recidivism could be reduced by the use of the therapeutic
courts, but this would be unknown without proper evaluation.
Office of the Governor
MIKE NIZICH, Administrative Director, Division of Administrative
Services, Office of the Governor, testified to two areas of concern
regarding the proposed $1.65 million general fund reduction over
the amount requested. The first he listed as the year-three labor
cost increases of $267,600, which he stressed are statutory salary
increases and that the Office does not have the option to forgo
these raises. As a result, he informed that three positions must be
eliminated.
Mr. Nizich stated the second concern as the $567,000 unallocated
budget reduction. He cautioned this is a significant reduction to
the Office's base operating budget and that it would impede the
resources available to the next governor and lieutenant governor
who would take office at the mid point of the fiscal year. He
pointed out that the Office of the Governor operates primarily with
general funds for personnel services. Therefore, he informed that
the reductions must be taken in the number of positions funded, and
that nine full time positions must be eliminated. He was unable to
speculate on which positions would be eliminated as the priorities
of the next governor were unknown.
Senator Olson asked for elaboration on the assertion that the
proposed funding level would impede the new administration.
Mr. Nizich, replied that at the start of FY 03, only five months
remain of the current Governor's term of office. Speaking from his
experience of working during multiple administration transitions,
newly elected governors establish agendas and expect to implement
them once taking office. He stressed that, unlike any previous
governor, the next administration would not have the financial or
human resources available to address their priorities. He furthered
that no discretionary funds would be available to address "public
outcry" issues, such as fisheries, an oil spill, etc.
Senator Olson asked if the proposed budget reductions would impact
every aspect of the Office of the Governor operations.
Mr. Nizich affirmed that every component would be affected.
University of Alaska
It was established that no representative was present to speak to
the impacts to the University of Alaska.
ADJOURNMENT
Co-Chair Dave Donley adjourned the meeting at 06:02 PM
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