Legislature(1993 - 1994)
04/07/1994 01:40 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 370 An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date. HB 370 was HELD in Committee for further 1 consideration. HOUSE BILL 370 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." Department of Corrections Representative Brown summarized previous action taken on Amendment #6 which had been reduced by $1 million dollars providing an add back of $8.635 million dollars. She added that Amendment #6 would restore the reductions made by the House Finance Subcommittee and would supplement funding to the level requested by the Governor's amended budget for the Department of Corrections. Representative Brown MOVED to adopt Amendment #6. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hoffman. OPPOSED: Parnell, Hanley, Martin, Larson, MacLean. Representatives Therriault and Navarre were not present for the vote. The MOTION FAILED (4-5). Representative Brown MOVED to adopt Amendment #3 which would impose a 2% unallocated reduction to the Governor's proposed budget to replace the 5% component reduction recommended by the Correction's Subcommittee. This reduction would total $5,819.8 million dollars. A 2% reduction would total $2,327.9 million dollars. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hoffman. OPPOSED: Parnell, Hanley, Martin, MacLean, Larson. Representative Therriault and Representative Navarre were not present for the vote. The MOTION FAILED (4-5). Representative Brown MOVED to adopt Amendment #5. MARGARET PUGH, STAFF, REPRESENTATIVE FRAN ULMER, stated that Amendment #5 would restore two Assistant Superintendents to 2 the Wildwood Correction Center. She added that other institutions were reduced by one management position, an Assistant Superintendent. Wildwood had three management positions eliminated, and that the amendment would return Wildwood to parity with the other institutions in the State. FRANK PREWITT, COMMISSIONER, DEPARTMENT OF CORRECTIONS, pointed out that most prison facilities are multi purpose and have combined pretrial and misdemeanant relations. When the Assistant Superintendent position is eliminated, the Superintendent will then have the responsibility for the entire management structure. Commissioner Prewitt reiterated that without these positions the management structure at Wildwood would be deficient. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hoffman. OPPOSED: Therriault, Hanley, Martin, Parnell, Larson, MacLean. Representative Navarre was not present for the vote. The MOTION FAILED (4-6). Representative Brown MOVED to adopt Amendment #4 explaining that it would impose a 5% unallocated reduction, rather than identifying components. This would give the administration maximum flexibility to handle reductions. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf. OPPOSED: Hanley, Martin, Parnell, Therriault, Larson, MacLean. Representatives Hoffman and Navarre were not present for the vote. The MOTION FAILED (3-6). Representative Parnell MOVED to adopt Amendment #9, a Letter of Intent which would provide language assuring that public safety would be protected upon a prisoners release. Commissioner Prewitt advised that the Legislature's intent would be difficult to execute because of inadequate funding. There being NO OBJECTION, it was adopted. Co-Chair Larson MOVED to adopt Amendment #10 which would provide an increment of $334.7 thousand dollars to be used for electronic monitoring and day reporting centers contracted out to the private sector. 3 MELVA KROGSENG, STAFF, REPRESENTATIVE RAMONA BARNES, advised that Speaker Barnes supported Amendment #10 and asked that the service be contracted out of the Department. Representative Brown questioned the per prisoner cost. Ms. Krogseng replied that by using staff from the Department of Corrections, the cost of the services would increase whereas contracting the service out would defray that cost. Commissioner Prewitt remarked that the "in house" cost would be $15 dollars per day for electronic monitoring. He asked what type of offender the legislature would expect to be electronically monitored. DIANE SCHENKER, SPECIAL ASSISTANT, DEPARTMENT OF CORRECTIONS, stated that DWI offenders are statutorily exempt from electronic monitoring. There being NO OBJECTION to Amendment #10, it was adopted. Co-Chair MacLean MOVED to adopt the Department of Correction's budget as amended by the House Finance Committee. There being NO OBJECTION, it was adopted. Front Section Co-Chair Larson explained the changes made in work draft #8- GH2027\E, Utermohle, 4/01/94. JAY HOGAN, STAFF, REPRESENTATIVE RON LARSON, clarified the changes made to Section #6. Currently, the State insurance catastrophe reserve sweeps left over balances at the end of a fiscal year for a substantial portion of that money. The concept of back up reserves is currently being considered. Mr. Hogan said that the Committee is being asked to consider a budget reserve back up appropriation. Section #6 was HELD open. Representative Martin referenced Section #5 and asked if the shortfall had been appropriated from the general fund for Title XX of the Social Security Act. JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated that Section #5 relates to Title XX funds. The action which the Committee took kept this portion in the front section of the operating budget. She added that there has been information available regarding over collection and federal receipts received over the years. The general funds will be used within the Division of Family and Youth services budget in order to qualify for the federal funds which are spread throughout the budget. 4 Co-Chair Larson commented on Section #12 stating that according to the Constitution, the permanent fund earnings go to the general fund or whatever sources the Legislature determines. Section #12 would recommend that those funds go into the dividend fund. (Tape Change, HFC 94-111, Side 2). Co-Chair Larson advised that $556 million dollars would then be available to distribute through the permanent fund. Co-Chair MacLean MOVED to delete Section #13 which would remove inflation proofing of the principal of the Alaska permanent fund. Representative Martin OBJECTED. Co-Chair MacLean interjected that the cost for inflation proofing currently is 2.9% of the principle. She recommended that inflation proofing continue at a cost rate of 1%. Discussion followed among Committee members regarding reduction or deletion of inflation proofing of the principal of the permanent fund. Representative Hanley pointed out that protection of the principle of the permanent fund should be closely monitored by the Legislature and that he would not support the reduction or deletion. Co-Chair MacLean WITHDREW the MOTION to delete Section #13. There being NO OBJECTION, it was withdrawn. Representative Therriault WITHDREW a previous motion to amend Section #16. There being NO OBJECTION, it was so ordered. Co-Chair Larson provided the Committee with an amendment to Page 4, Section #17 (d). [Copy on file]. The amendment would appropriate $200 million dollars from the available unrestricted cash in the general account of the revolving Alaska Housing Finance Corporation (AHFC) fund to the general fund. Co-Chair Larson MOVED the amendment. Representative Brown OBJECTED. Representative Brown pointed out that the Executive Director of AHFC had testified before the LBA Committee that AHFC would prefer a longer period of time in order to secure bond market approval that would guarantee a long range financial plan. She emphasized that the amendment would be a "taking" from AHFC rather than an appropriation from that corporation. 5 A roll call vote was taken on the MOTION. IN FAVOR: Grussendorf, Hanley, Martin, Parnell, Therriault, Foster, MacLean, Larson. OPPOSED: Hoffman, Brown. Representative Navarre was not present for the vote. The MOTION PASSED (8-2). Co-Chair Larson MOVED a change to Section #19 (b), Page 4, deleting "$5,545,000" and inserting "$2,462,600". He questioned Section #19 (a) asking if the remainder of the fund should continue to stay in the oil and hazardous substance release response fund or if it should be placed in the general fund. Representative Brown MOVED that the amount lapse into the general fund. VIRGINIA STONKUS, ANALYST, DIVISION OF LEGISLATIVE FINANCE, noted that the majority of the funds in the oil and hazardous substance release response fund resulted from the Exxon Valdez settlement. There being NO OBJECTION, the motion was adopted. Co-Chair Larson MOVED to amend Section #21, deleting "$25,800,000" and inserting "$25,900,000. MIKE GREANY, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE, advised that the Department of Revenue provided the updated amount as derived from the five cent per barrel surcharge collected from the general fund to the oil and hazardous release response fund. There being NO OBJECTION, Section #21 was amended. Co-Chair Larson MOVED to amend Section #22 which would appropriate additional monies for costs relating to legal proceedings and audit activity involving oil and gas revenue due to be paid from the constitutional budget reserve. There being NO OBJECTION to changing the funding source for Section #22 to the constitutional budget reserve, it was adopted. Representative Martin MOVED to insert the full costs recommended by the Department of Law be deleting "$13,500,000" and inserting "$27,000,000" dollars and to delete "$4,500,000" state corporation receipts and insert "$9,000,000" dollars. 6 A roll call vote was taken on the MOTION. IN FAVOR: Hanley, Martin, Parnell, Therriault, Brown, MacLean. OPPOSED: Hoffman, Grussendorf, Larson. Representatives Navarre and Foster were not present for the vote. The MOTION PASSED (6-3). (Tape Change, HFC 94-112, Side 1). Co-Chair MacLean recommended amending Section #25. Co-Chair Larson pointed out that half the costs for the Alaska Marine Highway System are generated from program receipts and half the cost are provided from the general fund. Ms. Slagle noted that the Alaska Marine Highway System's receipts currently total $41 million dollars. The $41 million dollars and the request for $28 million dollars would cover the needed appropriation for the system. She added that there would be a fund balance to be accessed in order to continue operations. Co-Chair MacLean MOVED to amend Section #25 by deleting "$28,715,800" and inserting "$20,000,000". Representative Grussendorf noted that the Legislature has requested that the Marine Highway System service more communities which would make it inappropriate to decrease the funding request. A roll call vote was taken on the MOTION. IN FAVOR: Therriault, Martin, MacLean. OPPOSED: Hoffman, Parnell, Brown, Foster, Grussendorf, Hanley, Larson. Representative Navarre was not present for the vote. The MOTION FAILED (3-7). Co-Chair Larson referenced a letter from George Utermohle, Legislative Counsel regarding Section #28. The original language would allow funds from that section to lapse into the general fund offsetting a supplemental request. [Copy on file]. Co-Chair Larson MOVED to delete Section #28, replacing it with the new language. DON STUDY, OSHA DIRECTOR, DEPARTMENT OF LABOR, stated that the Safety Advisory Council was started as a private entity with private functions. Private funds generating $68 thousand dollars were contributed to the State with the 7 understanding that the State would reappropriate each year that amount of funds for "seed" money for conference needs. Mr. Study noted that the group currently meets yearly to discuss occupational, safety, and health training. Co-Chair Larson WITHDREW THE MOTION. There being NO OBJECTION, it was withdrawn. Representative Hanley MOVED to insert the language as proposed by Mr. Utermohle as a new Section #28. There being NO OBJECTION, it was so ordered. Representative Hanley MOVED the new Section #31 as drafted by Mr. Utermohle which would reappropriate the roll forward for the Alaska Public Utilities Commission (APUC). GUY BELL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, advised that the Public Utilities Commission is funded with a regulatory cost charge, a surcharge on every consumer's electric bill to cover the cost of APUC. The intent of Section #31 would roll forward any receipts from the regulatory cost charge which are not spent in FY94, allowing APUC to reduce the regulatory cost charge in FY95. Representative Martin OBJECTED to the new language. Representative Hanley WITHDREW THE MOTION. There being NO OBJECTION, the motion was withdrawn. Representative Martin advised that HB 505 would address concerns indicated in Section #33. Discussion followed regarding the stipulations of HB 505 and the funding sources listed using the constitutional budget reserve. Representative Hanley clarified that the appropriation from the debt retirement fund to the Department of Education would not require a three quarters vote. Representative Martin MOVED to delete Section #33. Representative Brown OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Foster, Grussendorf, Hanley, Larson. OPPOSED: Brown, Grussendorf, Hoffman. Representatives MacLean and Navarre were not present for the vote. The MOTION PASSED (6-3). Representative Parnell MOVED a change as proposed by 8 Representative MacLean to Section #34 deleting "deposited" and inserting "available" in the four dam pool transfer fund. Representative Brown questioned the effect of the change. REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, stated that the change would allow all available funds in that fund to be appropriated in the 40/40/20 percent split. He added that HB 372 and SB 243 would also address that concern. Representative Brown OBJECTED to the change. A roll call vote was taken on the MOTION. IN FAVOR: Parnell, Therriault, Foster, Grussendorf, Hanley, Hoffman, Martin, Larson. OPPOSED: Brown. Representatives MacLean and Navarre were not present for the vote. The MOTION PASSED (8-1). Co-Chair Larson MOVED to delete Section #35. Mr. Hogan remarked that Section #35 had been placed in appropriation bills in previous years. He added that HB 505 would appropriate a specific amount from the constitutional budget reserve fund and therefore thought deleting it would be appropriate. Representative Martin OBJECTED indicating this section could protect the State from decisions made by the Supreme Court. A roll call vote was taken on the MOTION. IN FAVOR: Therriault, Brown, Grussendorf, Hanley, Hoffman, Larson. OPPOSED: Parnell, Martin. Representatives Foster, Navarre and MacLean were not present for the vote. The MOTION PASSED (6-2). Co-Chair Larson referenced the new language as provided by George Utermohle for Section #38. [Copy on file]. Mr. Bell commented that the source of funds would be the same as the marketing tax and the processor tax as collected from fishermen. The purpose of the tax would be to cover 9 the cost of seafood marketing in Alaska. The revenue expected this year would be close to $1.6 million dollars and would be carried forward into FY95. (Tape Change, HFC 94-112, Side 2). Representative Hoffman MOVED to adopt the language as proposed by Mr. Utermohle which would clarify the obligated receipts. Following discussion among the Committee members, there was NO OBJECTION, and it was adopted. Representative Brown MOVED to adopt Amendment #10 which would delete all material and insert a new subsection addressing previous action taken to the mitigation account and the storage tank fund. Representative Parnell OBJECTED. A roll call vote was taken on the MOTION. IN FAVOR: Brown, Foster, Hoffman, Larson. OPPOSED: Therriault, Grussendorf, Hanley, Martin, Parnell. Representatives Navarre and MacLean were not present for the vote. The MOTION FAILED (4-5). HB 370 was HELD in Committee for further consideration.
| Document Name | Date/Time | Subjects |
|---|