04/19/1994 03:10 PM House FIN

  HB 455    An Act  making and amending operating  and capital                 
            appropriations   and   ratifying   certain   state                 
            expenditures; and providing for an effective date.                 
                                                                               
            HB   455  was  HELD   in  Committee   for  further                 
            consideration.                                                     
                                                                               
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  HOUSE BILL 455                                                               
                                                                               
       "An  Act making  and  amending  operating  and  capital                 
       appropriations    and    ratifying     certain    state                 
       expenditures; and providing for an effective date."                     
                                                                               
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  [Workdraft copy on file].                                                    
                                                                               
  Section #9                                                                   
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT  AND  BUDGET, OFFICE  OF THE  GOVERNOR, commented                 
  that Section  #9 remained open.   Section  #9 would  address                 
  judgments and claims  of the Department of Law,  an increase                 
  from $325,400 dollars  to $1.221 million dollars.   Co-Chair                 
  Larson  advised that  the amount  had been  determined by  a                 
  memorandum as provided by Attorney General Botelho, 4/06/94.                 
  [Copy on file].                                                              
                                                                               
  Section #16                                                                  
                                                                               
  Ms.  Slagle  advised  that  Section  #16 would  address  the                 
  increase  to  federal  receipts and  a  decrease  to general                 
  funds.  Section #16 references the judgments and settlements                 
  concerning  Medical   Assistance  and  reflects   a  greater                 
  participation by the federal government in that area.                        
                                                                               
  Section #28                                                                  
                                                                               
  Ms.   Slagle   pointed   out  that   the   changes   to  the                 
  disproportionate    share    program    resulted   from    a                 
  miscalculation  of  the amount  the  State would  receive in                 
  federal reimbursement.                                                       
                                                                               
  New Sections Following Section #50                                           
                                                                               
  Ms. Slagle clarified that the new section for the Department                 
  of Administration's  request for $35 thousand  dollars would                 
  address costs for the ethics complaints grievance awards.                    
                                                                               
  Ms. Slagle added that the new  section for the Department of                 
  Transportation   and   Public  Facilities   would  reference                 
  ratification of prior year expenditures.                                     
                                                                               
  The new section for the Department of Commerce and  Economic                 
  Development would explain Alaska Seafood Marketing extending                 
  the  FY93  restricted  program  date and  the  use  of  FY93                 
  revenues for expenditures in FY94.                                           
                                                                               
  Ms. Slagle commented that the following sectional change for                 
  the Department of Public Safety  would permit a ratification                 
  of expenditures.                                                             
                                                                               
  The  new  section for  the  Department of  Corrections would                 
  address overtime litigation settlement  for the canine  unit                 
  in  the  amount  of  $163.9 thousand  dollars.    Ms.  Brown                 
  questioned the settlement amount for that component.                         
                                                                               
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  (Tape Change, HFC 94-133, Side 2).                                           
                                                                               
  Ms. Slagle continued that the following section would extend                 
  the  lapse  date  for  the   Exxon  Valdez  Trustee  Council                 
  restoration project within  the Department of Fish  and Game                 
  to the Department of Natural Resources.                                      
                                                                               
  The following section would grant ratification to prior year                 
  expenditures within the Department of Administration.                        
                                                                               
  Ms. Slagle added  that the  following new section  addressed                 
  the Department of Law, Legal  Services and Operations, Weiss                 
  versus  the  State  interim trail  costs  and  attorney fees                 
  request for $492.1 thousand dollars.  Ms. Slagle advised the                 
  Committee  of  a  memorandum  provided  by Attorney  General                 
  Botelho, 4/06/94, regarding the concerns.  [Copy on  file].                  
                                                                               
                                                                               
  ELIZABETH  SHAW, CHIEF,  ASSISTANT  ATTORNEY GENERAL,  CIVIL                 
  DIVISION, DEPARTMENT OF LAW, stated that the  claims had not                 
  been  placed  into  the  supplemental  last year,  and  that                 
  consequently the requests covered both FY94 & FY95.                          
                                                                               
  Discussion followed  between Representative  Martin and  Ms.                 
  Shaw regarding the large cost requested by the law firms and                 
  amount paid.  Ms. Shaw pointed out that most of the  sums of                 
  billed lawyer fees  have gone through  the court system  and                 
  that a determination had been made as to the allowable costs                 
  and fees.   She added that costs  will vary depending on how                 
  much per  hour an  attorney may  charge and  that the  costs                 
  include   computer,   research,   paralegal   and   overhead                 
  projections.                                                                 
                                                                               
  Section #55                                                                  
                                                                               
  Representative Brown questioned Section #55 which would roll                 
  forward the balance in the  Rural Development Grants to June                 
  30,  1995  instead  of  lapsing that  account.    Ms. Slagle                 
  replied that historically, there has been a problem with the                 
  rural development grants and that  Section #55 would provide                 
  an extension for the grants in  order to continue into FY95.                 
                                                                               
                                                                               
  REMOND  HENDERSON,  DIRECTOR,  DIVISION   OF  ADMINISTRATIVE                 
  SERVICES,  DEPARTMENT  OF  COMMUNITY  AND REGIONAL  AFFAIRS,                 
  remarked that all  the money  has not yet  been awarded  and                 
  that the funds have not yet been encumbered.                                 
                                                                               
  HB 455 was HELD in Committee for further consideration.