Legislature(1995 - 1996)
03/29/1995 01:37 PM House FIN
| Audio | Topic |
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 100
"An Act making appropriations for the operating and
loan program expenses of state government 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."
(Copies of amendments will be on file with the House
Finance Committee Secretaries Office, Capital, Room
519, until the end of the Nineteenth Alaska State
Legislature. Copies of the amendments will be found at
the Legislative Library after the end of the Nineteenth
Alaska State Legislature.)
DEPARTMENT OF EDUCATION
Representative Martin MOVED to adopt Amendment DOE-1 (copy
on file). The amendment adds $80.0 thousand dollars to the
Alaska Maps for Alaska's Students project to cover printing
costs. The appropriation would be provided by the deletion
of designated grant funding for the Institute of Alaska
Native Arts, Museum of Alaska Transportation and Industry
and the NANA Museum of the Arctic.
Representative Brown questioned if this item should be
included in capital projects funding since it is a one time
appropriation.
Representative Martin reiterated that the identified
designated grants would be zeroed and transferred to the
Alaska Maps for Alaska's Students project out by the
amendment. Representative Kohring spoke against the
amendment.
Co-Chair Hanley pointed out that school districts are not
prevented from purchases the maps.
Representative Brown suggested the Committee approve
authorization for general fund program receipts to fund
printing costs. She MOVED to divide the question.
Representative Mulder objected. Representative Brown
WITHDREW her motion to divide the question.
A roll call vote was taken on the MOTION to adopt Amendment
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DOE-1.
IN FAVOR: Martin
OPPOSED: Brown, Grussendorf, Navarre, Kelly, Kohring,
Mulder, Parnell, Therriault, Foster, Hanley
The MOTION FAILED (1-10).
Representative Kohring MOVED to adopt Amendment DOE-2 (copy
on file). He explained that the amendment would give the
Alaska State Council on the Arts the authority to use their
appropriation of $144.0 thousand dollars to access federal
funding. He noted that up to $675.3 thousand dollars in
federal funds are available. He acknowledged that it is
unlikely that the entire federal match will be accessed at
the current appropriation level. There being NO OBJECTION,
it was so ordered.
Representative Grussendorf MOVED to adopt Amendment DOE-4
(copy on file). The amendment would restore $414.0 thousand
dollars to the Kotzebue Technical Center and delete $414.0
thousand dollars from Correspondence Study-State. He argued
that the reduction would not harm Correspondence Study and
emphasized that the Kotzebue Technical Center needs the
funding to function.
Representative Navarre suggested that the Correspondence
Study component would be negatively impacted.
Representative Kohring observed that there is not sufficient
general fund dollars in the Correspondence Study component
to fund the amendment. He pointed out that the majority of
funding in this component is foundation formula funding. He
stated that there is only $59.8 thousand dollars in General
Funds in this component.
DARBY ANDERSON, SUPERINTENDENT, ALYESKA CENTRAL SCHOOL,
DEPARTMENT OF EDUCATION testified that there are 2,000
students served by the Correspondence Study program. She
stated that personnel costs support teachers and staff based
primarily in Juneau. The average teacher/pupil ration in
the Correspondence Study program is 67 to 1. The average
cost is $2.4 thousand dollars per student as opposed to a
state average of $7.9 thousand dollars per student.
Representative Martin spoke in support of the Correspondence
Study program. Representative Kohring maintained that
removal of the funding would have a serious impact.
A roll call vote was taken on the MOTION to adopt Amendment
DOE-4.
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IN FAVOR: Grussendorf, Foster
OPPOSED: Brown, Navarre, Kelly, Kohring, Martin, Mulder,
Parnell, Therriault, Foster, Hanley
The MOTION FAILED (2-9).
Co-Chair Foster MOVED to adopt Amendment DOE-3 (copy on
file). He noted that the amendment would restore $200.0
thousand dollars for the Kotzebue Technical Center. He
explained that $75.0 thousand dollars would be appropriated
from a reduction in the Commissioner's Office in the
Department of Health & Social Services and $125.0 thousand
dollars would be appropriated from a reduction in the
Correspondence Study component, Department of Education.
Representative Brown MOVED to AMEND Amendment DOE-3 to the
Correspondence Study component to $59.8 thousand dollars.
She pointed out that this is the total amount of General
Funds left in the Correspondence Study component. There
being NO OBJECTION, it was so ordered.
Representative Martin spoke in support of continuing funding
to the Correspondence Study component.
Co-Chair Foster MOVED to delete the reduction of $59.8
thousand dollars from Correspondence Study.
JANET CLARK, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES spoke in opposition
to Amendment DOE-3. She emphasized the need to track
federal changes for welfare reform and block grants.
A roll call vote was taken on the MOTION to adopt Amendment
DOE-3.
IN FAVOR: Brown, Grussendorf, Navarre, Kelly, Foster
OPPOSED: Kohring, Martin, Mulder, Parnell, Therriault,
Hanley
The MOTION FAILED (5-6).
Representative Grussendorf MOVED to adopt new Amendment DOE-
5 (copy on file). He explained that the amendment would
delete $69.1 thousand dollars from Boarding Home Grants and
appropriate $69.1 thousand dollars to Mt. Edgecumbe Boarding
School. He noted that there are 3 students for every
available position in the Mt. Edgecumbe Boarding School.
Co-Chair Hanley noted that the FY 96 proposed level is
$100.0 thousand dollars above FY 95, but $69.0 thousand
dollars below Governor Knowles' FY 96 request.
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KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF EDUCATION testified that the transfer would be
appropriate. She stated that $189.5 thousand dollars would
remain in the Boarding House component. She estimated that
this would be sufficient to meet the needs of the component.
There being NO OBJECTION, Amendment DOE-5 was adopted.
Representative Navarre HELD Amendment DOE-6 (copy on file).
Representative Brown MOVED to adopt Amendment DOE-7 (copy on
file). Co-Chair Hanley OBJECTED. Representative Brown
stated that the amendment would add $75.7 thousand dollars
to the WICHE Student Exchange program by reducing the
Correspondence Study program by $59.8 thousand dollars and
Administrative Services by $15.9 thousand dollars. She
questioned if the $59.8 thousand general fund dollars could
be replaced by program receipts.
Ms. Anderson explained that the $59.8 thousand dollars in
General Funds are in the Correspondence Study component as a
result of contract negotiations. She stressed that this
reduction would result in the loss of at least one teaching
position. She stated that this would be a significant loss.
Representative Martin spoke in opposition to the amendment.
(Tape Change, HFC 95-69, Side 2)
JOE MCCORMICK, JOE MCCORMICK, EXECUTIVE DIRECTOR,
POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION gave a
brief history of the WICHE program. He stated that
approximately 1,079 Alaskan students have benefited from the
program in medical and health related professions. He
stressed that the proposed funding level would result in the
continuation of the program for existing students only.
Representative Brown noted that 735 undergraduates are
participated in 1994. Mr. McCormick pointed out that WICHE
eligible students are given preferential enrollment. He
noted that only 30 of 125 eligible students were funding in
FY 95. He emphasized that the program recognizes that
Alaska will never have the educational opportunities of
larger states.
A roll call vote was taken on the MOTION to adopt Amendment
DOE-7.
IN FAVOR: Brown, Grussendorf, Navarre, Mulder
OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault,
Foster, Hanley
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The MOTION FAILED (4-7).
Representative Grussendorf MOVED to RESCIND the Committee's
action in adopting Intent Language DOE-1 (copy on file).
The intent states that the "Mr. Edgecumbe school be given
notice that funding for the school will not be provided past
FY 96." Representative Kohring OBJECTED. Representative
Kohring WITHDREW his objection. There being NO OBJECTION,
Letter of Intent DOE-1 was rescinded.
A roll call vote was taken on the MOTION to adopt Intent
Language DOE-1. Representative Martin spoke in support of
the continuation of funding for Mt. Edgecumbe.
Representative Brown suggested that telecommunications be
utilized when possible.
IN FAVOR: Therriault
OPPOSED: Brown, Grussendorf, Navarre, Kelly, Kohring,
Martin, Mulder, Parnell, Foster, Hanley
The MOTION FAILED (1-10).
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Representative Therriault MOVED to adopt amended Amendment
HSS-1 (copy on file). Representative GRussendorf OBJECTED.
The amendment would transfer $77,176 thousand dollars from
the Alcohol and Drug Abuse Services and $33.2 from the
Department of Community and Regional Affairs to created a
separate BRU for the Fairbanks Native Association.
Representative Grussendorf pointed out that the amendment
would created a designated grant and may take funds away
from rural areas. Representative Therriault spoke in
support of the amendment.
A roll call vote was taken on the MOTION to adopt Amendment
HSS-1.
IN FAVOR: Kelly, Kohring, Mulder, Therriault, Foster, Hanley
OPPOSED: Brown, Grussendorf, Navarre, Parnell
The MOTION FAILED (4-6).
Representative Brown MOVED to adopt Amendment HSS-2 (copy on
file). She explained that the amendment would use the
Mitigation Account to fund $2.0 million dollars for Medicaid
Non-Facility, Department of Health & Social Services. She
stressed that the amendment would fund adult Medicaid
services for dental, speech therapy, occupational therapy,
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vision examinations, eye glasses, hearing aids and
chiropractors. She argued that providing these services is
cost effective. She reiterated that the Mitigation Account
is used to subsidize gas station and other businesses
required to clean up hazardous materials.
JOHN BARNETT, EXECUTIVE DIRECTOR, BOARD OF STORAGE TANK
ASSISTANCE testified that only 29 percent of eligible tanks
are in gas stations. He maintained that most of these
facilities are small and Alaskan owned. He emphasized the
need to maintain the program. He stated that 132 sites have
been cleaned or are in the process of being cleaned. He
discussed applications and their ranking. He pointed out
that 15 of the current clean up sites are operating ground
water recover systems to restore drinking water supplies.
He pointed out that some sites cost $500.0 thousand dollars.
Banks will not finance contaminated site clean up. He noted
that the program is spread throughout the state.
Representative Therriault noted that 40 percent of the
grants are within the Anchorage area. He explained that
money in the Mitigation Account not appropriated to the
Storage Tank Assistance Fund is transferred in 20 (a) of the
front section to the Hazardous Substance Release Prevention
Account.
Representative Navarre expressed support and acknowledged
the need for the Storage Tank Assistance Program. He
stressed that there is a need for basic preventive services
in the Medicaid program. He suggested that the Storage Tank
Assistance program could be funded by a .01 cent fuel tax.
Representative Brown noted that the owner has the
responsibility of complying with water laws and not
polluting. She observed that most states fund similar
programs through a fuel tax. Mr. Barnett noted Alaska is
the only state that has a direct appropriation to fund fuel
clean up programs. Representative Brown noted that a
homeowner who had a leaking tank would not be eligible
unless the tank was over 1,100 gallons. She stressed that
there is no funding source other than General Funds.
Ms. Clarke explained that the Medicaid budget serves 100,000
thousand Alaskans. The amendment would restore seven
optional services for 15,000 Alaskans.
Representative Martin expressed concern that the amendment
institutes major changes. Representative Brown stressed
that $2. million dollars would be left in the Storage Tank
Assistance Fund.
Representative Parnell emphasized that the programs are
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unrelated. Representative Brown argued that the whole
budget should be considered and shifts in priorities
allowed.
A roll call vote was taken on the MOTION to adopt Amendment
HSS-2.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF LABOR
Representative Brown MOVED to adopt Amendment LAB-1 (copy on
file). Representative Mulder OBJECTED. Representative
Brown explained that the amendment would add $302.8 thousand
dollars from the Mitigation Account to the Department of
Labor, Occupational Safety and Health. The amendment would
also authorize $188.1 thousand dollars in general fund
program receipts.
(Tape Change, HFC 95-70, Side 1)
Representative Mulder spoke in opposition to the amendment.
He maintained that offices will not be closed across the
state. He observed that all remaining general fund dollars
are federally matched.
ARBE WILLIAMS, DIRECTOR, DIVISION OF ADMINISTRATION,
DEPARTMENT OF LABOR stated that the Department will attempt
to keep offices open. She could not guarantee that offices
will not be closed. She explained that the $188.1 thousand
dollars in program receipts were new. The Department
planned to sell federal regulations bought at a 25 percent
discount. She noted that the reduction in program receipt
authority will prevent them from reselling federal
regulations.
Representative Mulder stated that program receipts were
reduced in order to remain under the Department's cap. He
added that the program receipts were seen as an expansion.
Representative Brown summarized that the reduction will
delay response of complaints from 10 to 30 days. Ms.
Williams stated that less serious complaints could be
delayed as long as 3 months.
She added that state requirements which compel the
Department to have jurisdiction over businesses with fewer
than 10 employees will not be met.
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Representative Mulder stressed that the Subcommittee felt
that the reduction was the least harmful way to meet the
cap.
A roll call vote was taken on the MOTION to adopt Amendment
LAB-1.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kohring, Martin, Mulder, Parnell, Therriault,
Foster, Hanley
The MOTION FAILED (3-7).
Representative Brown WITHDREW Amendment LAB-2 (copy on
file). She noted that Representative Martin has a similar
amendment under the Department of Natural Resources. The
amendment would have added $80.0 thousand dollars for Labor
Market Information.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative Mulder MOVED to adopt Amendment CED-1, on
behalf of Co-Chair Foster (copy on file). He explained that
the Subcommittee reduced Alaska Rural Development Assistance
grants (ARDORs) by approximately $16.0 thousand dollars
each. This amount was transferred to the Alaska Tourism
Marketing Council. He noted that the amendment would
transfer the funding back to the ARDOR program.
Representative Kelly spoke against the amendment. He
stressed that ARDOR's are tied to private industry.
Representative Navarre spoke in support of the amendment.
He maintained that ARDORs are effective. He stressed that
ARDORs are economic development programs for Alaskans that
are working.
Representative Brown noted that she is an ex-officio member
of the Anchorage Economic Development Corporation which is
the ARDOR for Anchorage.
A roll call vote was taken on the MOTION to adopt Amendment
CED-1.
IN FAVOR: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
OPPOSED: Brown, Grussendorf, Navarre
Co-Chair Foster was absent from the vote.
The MOTION FAILED (3-7).
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Representative Brown MOVED to adopt Amendment CED-2 (copy on
file). She explained that the amendment would fund Market
Surveillance in the Division of Insurance through program
receipts collected from insurance fees.
Representative Kelly maintained that the program represents
an expansion in bureaucracy.
GUY BELL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT explained that fees by the
Division of Insurance are adjusted to cover operating costs.
He added that the Division feels that collections of premium
tax would be maximized by increased scrutiny.
A roll call vote was taken on the MOTION to adopt Amendment
CED-2.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
Co-Chair Foster was absent from the vote.
The MOTION FAILED (3-7).
Representative Brown MOVED to adopt Amendment CED-3 (copy on
file). She reiterated her conflict of interest as an ex-
officio member of the Anchorage ARDOR. She explained that
the amendment would provide an net savings to the General
Fund of $1.0 million dollars by restructuring the programs
within the Department of Commerce and Economic Development.
REPRESENTATIVE KIM ELTON spoke in support of the amendment.
The amendment would eliminate the Division of Economic
Development and Office of International Trade and shifts
$2.4 of $3.4 million dollars to the Commissioner's Office
for restructuring. He emphasized the importance of economic
development. He explained that the amendment would
eliminate 21 positions and transfer 3 positions to the
Office of the Commissioner. Additional funding would be
provided to the ARDORs.
Representative Mulder acknowledged the importance of
economic development but spoke against the amendment. He
suggested that the component be considered with programs in
the Department of Community and Regional Affairs. He
questioned if the Commissioner supports the amendment.
Representative Elton acknowledged that the Commissioner did
not request the amendment. He spoke in support of the
amendment.
Representative Elton recommended that $1.4 million dollars
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by applied to ARDORs and $200 thousand dollars be
appropriated to Making the Case.
Representative Grussendorf expressed concern that the
amendment would make it difficult to sort out differences in
an operating budget conference committee.
Representative Martin maintained that the amendment is an
intrusion into the powers of the Governor.
Representative Kelly stressed that ARDORs should be more
closely tied to private enterprise. He maintained that more
emphasis should be put on international trade.
Representative Navarre pointed out that each ARDOR receives
less than one office in the legislature. He emphasized that
the ARDOR program is just getting started. He felt that
funding should be maintained. He estimated that ARDORs can
become self supporting over time.
Representative Brown suggested that the amendment reflects
the type of prioritization that the legislature must make.
She suggested that much of the work performed by the
Department such as working with industry to make sure that
regulatory barriers are not arbitrarily burdensome, are
discretionary, without a measurable benefit. She estimated
that a million dollar reduction would not result in an
appreciable difference in the economic development in the
State. She maintained that ARDORs are grass root programs.
She recounted achievements of the Anchorage ARDOR.
Representative Navarre pointed out that ARDORs help develop
business plans to allow those that wish to begin business to
have a plan for financing.
A roll call vote was taken on the MOTION to adopt Amendment
CED-3.
IN FAVOR: Brown, Grussendorf, Navarre, Foster
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley
The MOTION FAILED (4-7).
(Tape Change, HFC 95-70, Side 2)
Representative Navarre MOVED to adopt amended Amendment CED-
4 (copy on file). He explained that the amendment would
delete $75.0 thousand dollars from the Office of
International Trade and restore $75.0 thousand dollars to
Alaska Rural Development Assistance grants (ARDORs).
Representative Kelly OBJECTED.
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A roll call vote was taken on the MOTION to adopt Amendment
CED-4.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (3-8).
DEPARTMENT OF NATURAL RESOURCES
Representative Martin MOVED to adopt Amendment DNR-1 (copy
on file). He explained that the amendment would restore
$80.0 thousand dollars to the Department of Labor for the
State Data Center to provide census information. He noted
that the state of Alaska was under-counted in the last
census. The amendment would transfer $50.0 thousand general
dollars from the Agricultural Revolving Loan Fund to the
Director's Office, Division of Agriculture. Representative
Therriault OBJECTED.
NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF NATURAL RESOURCES emphasized that
the Agricultural Revolving Loan Fund was intended as a
revolving loan fund. He noted that the fund has been seeded
with General Fund appropriations. He observed that the
beginning balance was over $6.0 million dollars. He
emphasized that the Fund is starting to be self sustaining.
He observed that the Mental Health Trust settlement will
create a significant demand on the Fund. He maintained that
approval of the proposed amendments, which total $2.0
million dollars in reductions to the Fund, would result in
the bankruptcy of the Fund. He emphasized that most of the
loans funded through the Fund do not qualify as traditional
banking loans.
In response to a question by Representative Grussendorf, Mr.
Bus summarized that reductions to the Fund will jeopardize
functions critical to the industry. Representative
Grussendorf noted that some of the proposals contained in
the amendments would generate General Fund revenue.
Mr. Bus noted that $500.0 thousand dollars in new charges to
the Agricultural Revolving Loan Fund were adopted in
Subcommittee. In addition, $260.0 thousand dollars in
operational charges were reduced.
Representative Therriault noted that the $500.0 thousand
dollars was offset to result in a net effect of $300.0
thousand dollars. He suggested that the Division of
Forestry will have to be merged with the Division of
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Agriculture. He expressed concern that acceptance of
reductions in the proposed amendments would jeopardize the
current balance.
JOHN CRAMER, DIRECTOR, DIVISION OF AGRICULTURE, DEPARTMENT
OF NATURAL RESOURCES replied to questions by Representative
Brown. Mr. Cramer stated that the default rate for borrowers
is 6 percent. He acknowledged that 17 percent of the
outstanding loans are in default. He observed that 42
parcels in the Northern region of the State have been
identified for land disposal. There are 15 parcels in South
Central Alaska. An additional 23 parcels will be disposed
of in the Point McKenzie area when the appeal of the Mental
Health Trust Settlement has been finalized.
Representative Brown questioned if it is the Division's
philosophy that all farmers in the State are entitled to
have their operations funded by the State. Mr. Cramer
replied that it was not the Division's intent to fund all
farm operations. He observed that 60 percent of the state's
farmers' short term operational costs are funded through the
Agricultural Revolving Loan Fund. He noted that the Fund is
currently able to cover demand. He emphasized that the
delinquency rate on new loans is currently at 5.6 percent.
Representative Brown expressed concern that previous land
disposals were not successful.
Mr. Cramer assured members that the Division has learned
from past mistakes. He noted that there are a number of
structures on the parcels in Point McKenzie. Most of the
land has been cleared and could be into production in a
short period of time. He stressed that start up costs would
be reduced.
Mr. Cramer noted that the Division does inspections of
products grown or brought into the state of Alaska. He
observed that federal funds cover at least 50 percent of the
program. He stated that the federal government would not
perform the inspections if the State no longer funded the
program.
Representative Brown questioned the amount of funding spent
on marketing agricultural products. Mr. Cramer stated that
the Alaska Grown Program is funded from the Agricultural
Revolving Loan Fund at $300.0 thousand dollars. It was
shifted from a General Fund appropriation approximately five
years ago.
Co-Chair Hanley noted that 65 percent of the State's milk is
imported from out of state. He observed that the state's
involvement was not successful in the dairy industry.
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Representative Therriault reiterated that new loan
delinquency has been reduced to 5.6 percent. He maintained
that the current level of agricultural growth is sound.
Representative Brown questioned why the State has taken such
an active role in agriculture. She asked if state supported
activities would cease if state funding was reduced. Mr.
Cramer estimated that the rate of development would be
slowed.
In response to a question by Representative Navarre, Mr.
Cramer explained that current loans are shorter and are
better monitored. He added that projects are more
conservative. The interest rate is 8 percent.
Mr. Bus noted that there are a total of $500.0 thousand in
general fund dollars remaining in the Agricultural
Development component after Subcommittee reductions.
Representative Mulder MOVED to AMEND Amendment DNR-1, add
$30.0 thousand dollars from the Agricultural Revolving Loan
Fund.
Mr. Bus recommended that the amendment to the amendment be
changed to reflect a transfer to the General Fund. He
emphasized that it will be difficult to account for
expenditures in another department from the Agricultural
Revolving Loan Fund.
Representative Mulder WITHDREW his amendment to Amendment
DNR-1. There being NO OBJECTION, it was so ordered.
Representative Mulder MOVED to AMEND Amendment DNR-1, to
appropriate $30.0 thousand dollars from the Agricultural
Revolving Loan Fund to the General Fund and appropriate
$30.0 thousand general fund dollars to the Department of
Labor. Representatives Martin and Mulder spoke in support
of the amendment.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-1.
IN FAVOR: Parnell, Brown, Grussendorf, Martin, Mulder,
Navarre, Foster, Hanley
OPPOSED: Therriault, Kelly, Kohring
The MOTION PASSED (8-3).
Co-Chair Foster MOVED to adopt amended Amendment DNR-2 (copy
on file). He explained that the amendment would appropriate
$40.0 thousand dollars from the Agricultural Revolving Loan
Fund to the General Fund and appropriate $40.0 thousand
dollars from the General Fund to the Department of Community
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and Regional Affairs for a designated grant to the Deltana
Corporation for winter snow and ice removal. He spoke in
support of the amendment.
(Tape Change, HFC 95-71, Side 1)
In response to a question by Representative Brown, Mr.
Cramer explained that the road in question was not built by
the Division of Agriculture. The road was not the result of
a Division of Agriculture disposal. The Division of
Agriculture inherited the area from the Department of
Commerce and Economic Development. He noted that the road
is 30 miles outside of Delta Junction across the Gerstle
River.
Representative Brown observed that the even though the
program was under the Department of Commerce and Economic
Development it was still the agriculture program. She
suggested that agricultural disposal should not be made if
there is no existing supporting infrastructure.
Representative Therriault spoke against the amendment. He
pointed out that a road service area could be created to
provide local support.
REPRESENTATIVE KUBINA spoke in support of the amendment. He
stated that the Department of Natural Resources previously
paid for the road to be plowed. He observed that there are
13 children in the area that were unable to attend school
due to the road condition. He requested that funding be
provided for an additional year. He emphasized that he has
communicated to the residents that they must find a way to
fund the road maintenance in future years.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-2.
IN FAVOR: Brown, Grussendorf, Mulder, Navarre, Foster
OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault,
Hanley
The MOTION FAILED (5-6).
Representative Grussendorf WITHDREW Amendment DNR-3 (copy on
file).
Representative Grussendorf MOVED to adopt Amendment DNR-4
(copy on file). He noted that the amendment would add
$100.0 thousand dollars for Forest Management and
Development. Funding would be provided by a transfer from
the Agricultural Revolving Loan Fund. He pointed out that
the component does not have a Deputy Commissioner. There
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are two managers with a wide range of duties. He gave a
brief overview of the managers' duties. He observed that
one of the managers will be reduced if the amendment is not
adopted.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-4.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (3-8).
Representative Brown MOVED to adopt Amendment DNR-5 (copy on
file). Representative Therriault OBJECTED. Representative
Brown explained that the first part of the amendment would
authorize and addition of $75.0 thousand dollars in program
receipts for Land Development, Public Information
Center/Publications. The program receipts are derived from
the purchases by the public of materials from the Department
of Natural Resources. She stated that without the adoption
of Amendment DNR-5 the component's staff will be reduced by
25 percent.
Representative Brown noted that the second portion of
Amendment DNR-5 would add $154.0 thousand dollars for
Information Resource Management. This would be offset by a
$154.0 thousand dollar reduction in General Funds to the
Agricultural Development component in the Department of
Natural Resources. She noted the importance of computer
information services in the Department. Failure to adopt
the amendment would result in the reduction of three
positions.
Representative Brown MOVED to AMEND Amendment DNR-5 to
change the funding source from General Funds in the
Agricultural Development component to the Agricultural
Revolving Loan Fund. There being NO OBJECTION, it was so
ordered.
Representative Therriault observed that the Subcommittee
reduced the Public Information Center/Publications. He
noted that $220.2 thousand dollars remain in the component.
He stressed that the Subcommittee initially recommended that
two of the four positions be reduced. One position was
restored.
Representative Martin questioned the level of general fund
program receipts authorized in the Public Information
Center/Publication in FY 95. Mr. Bus explained that program
receipts are used to pay for the function and the
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publication. Program receipts from the sale of the
publication is used to fund reprinting. He stressed that
the reduction in program receipt authorization would
jeopardize reprintings. He maintained that the reduction
would jeopardize the entire concept of public service. He
stated that the reduction would result in the loss of two
positions.
Representative Martin spoke in support of additional funding
for the Land Development Public Information
Center/Publications. He MOVED to divide the question.
There being NO OBJECTION, the amendment was divided into
Amendment DNR-5A, authorize an addition of $75.0 thousand
dollars in general fund program receipts for Land
Development, Public Information Center/Publications;
Amendment DNR-5B, add $154.0 thousand dollars for
Information Resource Management from the Agricultural
Revolving Loan Fund.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-5A, add $75.0 thousand dollars for Land Development,
Public Information Center/Publications.
IN FAVOR: Martin, Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Mulder, Parnell, Therriault,
Foster, Hanley
The MOTION FAILED (4-7).
In response to a question by Representative Brown, Mr. Bus
explained that there was a reduction in capital project
receipts as a result of the completion of land selection
projects. He noted that some projects were not included in
the Governor's request. He observed that these omissions
will result in a loss of six positions. The Subcommittee
reduction will result in the loss of three additional
positions. He stressed that the loss of automation
capability will be felt throughout resource programs in
mining, forest and land management.
Representative Brown spoke in support of Amendment DNR-5B.
She maintained that the level of reduction is too deep to
keep the Department functioning in an efficient manner.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-5B.
IN FAVOR: Brown, Grussendorf, Navarre
OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault,
Foster, Hanley
Representative Mulder was absent from the vote.
17
The MOTION FAILED (3-4).
Representative Brown MOVED to adopt Amendment DNR-6 (copy on
file). Representative Brown MOVED to AMEND Amendment DNR-6,
amend the funding source to delete "Agricultural
Development" and substitute "Agricultural Revolving Loan
Fund". She noted that $150.0 thousand dollars would be
transferred from the Agricultural Revolving Loan Fund to the
General Fund and from the General Fund to Parks and
Recreation Management. The amended amendment would also
delete $100.0 thousand dollars in general fund program
receipt authorization for Parks and Recreation Management.
There being NO OBJECTION, it was so ordered.
Representative Brown noted that the amendment was submitted
on behalf of Representative Davies. She noted that
Representative Davies, who served on the Subcommittee, felt
that the authorized level of program receipt could not be
reached. She summarized that state parks are in danger of
being closed without the additional funding. She maintained
that the state park system is the backbone of recreation in
the areas they exist.
Representative Therriault noted that the intention is to
shift funding from the General Fund to user fees. He noted
that the approved level of program receipt authority is only
$50.0 thousand dollars beyond what was requested by the
Department.
Mr. Bus noted that the Department is requesting $350.0
thousand additional dollars for an enlarged park system. He
noted that construction money was approved for many new
parks to open. The additional funding would staff the new
parks. He summarized that the Subcommittee recommendation
would reduce the general fund contribution by $400.0
thousand dollars. He emphasized that park units will be
closed. He added that revenues will be lost in areas where
parks are closed, since fees will not be collected in these
areas. He stated that the amendment would not restore the
total request.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-6.
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Kelly, Kohring, Martin, Navarre, Parnell,
Therriault, Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (3-8).
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Representative Navarre MOVED to adopt a DNR-7 (copy on
file). The amendment would delete 150.0 thousand dollars
from the Agricultural Revolving Loan Fund and add $150.0
thousand dollars to Oil and Gas Development,
Leasing/Evaluation.
Representative Therriault detailed the Subcommittee's
actions. Representative Navarre emphasized that the
component enhances revenues to the state.
Mr. Bus noted that the reduction would result in the loss of
2 to 3 positions. He emphasized that the positions
facilitate the preparations of lease sales. He maintained
that lease sale offers will be slowed.
A roll call vote was taken on the MOTION to Amendment DNR-7.
IN FAVOR: Brown, Grussendorf, Navarre, Parnell, Foster
OPPOSED: Kelly, Kohring, Martin, Therriault, Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (5-5).
Representative Brown MOVED to adopt Amendment DNR-8 (copy on
file). THe amendment would reduce the Agricultural
Revolving Loan Fund by $1.24 million dollars and add $46.0
thousand dollars to the Public Defender Agency and $780
thousand dollars to the Office of Public Advocacy. She
spoke in support of Amendment DNR-8.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-8.
IN FAVOR: Brown, Foster
OPPOSED: Grussendorf, Navarre, Kelly, Kohring, Martin,
Parnell, Therriault, Hanley
Representative Mulder was absent from the vote.
The MOTION FAILED (2-8).
Representative Brown MOVED to adopt Amendment DNR-9 (copy on
file). She explained that the amendment would transfer
$200.0 thousand dollars from the Agricultural Revolving Loan
Fund to the Department of Health & Social Services, Maternal
Child and Family Health. She spoke in support of the
amendment.
Co-Chair Hanley observed that the Subcommittee authorized
the addition of one of the three new sites requested by the
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Governor.
A roll call vote was taken on the MOTION to adopt Amendment
DNR-9.
IN FAVOR: Brown, Grussendorf, Foster
OPPOSED: Kelly, Kohring, Martin, Parnell, Therriault,
Hanley
Representatives Navarre and Mulder were absent for the vote.
Representative Brown MOVED to adopt Amendment DNR-10 (copy
on file). The amendment would transfer $100.0 thousand
dollars from the Agricultural Revolving Loan Fund to
Administrative Services.
(Tape Change, HFC 95-72, Side 1)
A roll call vote was taken on the MOTION to adopt Amendment
DNR-10.
IN FAVOR: Brown, Grussendorf
OPPOSED: Kelly, Kohring, Martin, Mulder, Navarre, Parnell,
Therriault, Foster, Hanley
The MOTION FAILED (2-9).
Representative Brown WITHDREW Amendment DNR-11 (copy on
file).
DEPARTMENT OF FISH AND GAME
Co-Chair Foster MOVED to adopt amended Amendment FG-1 (copy
on file). The amendment would delete $75.0 thousand dollars
from the Department of Health & Social Services, Office of
Commissioner and delete $91.2 thousand dollars from the
Department of Fish and Game, Commercial Fisheries Entry
Commission; and add $166.2 thousand dollars for the
Department of Fish and Game, Office of the Commissioner. He
noted that the amendment was offered on behalf of
Representative Moses. He spoke in support of the amendment.
Representative Grussendorf spoke in support of the additions
in the amendment. He noted the importance of funding
positions in the Commissioner's Office which represent
Alaska in treaty negotiations with Canada and during
deliberations on the Magnusom Act. He questioned the effect
of the reductions.
FRANK HOMAN, COMMISSIONER, COMMERCIAL FISHERIES ENTRY
COMMISSION explained that the Commission has lost 8
positions in the past 8 years. He stressed that the
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Commission has received a maintenance level budget for the
past three years. He emphasized that the three
commissioners are administrative law judges that sit as a
tribunal for appeals on limited entry permits. There is a
backlog of 800 cases awaiting adjudication. He stressed
that the effect of the reduction would result in the
elimination of 2 to 3 positions. He emphasized that the
Commission brings in revenue.
Co-Chair Foster MOVED to AMEND Amendment DNR-1, delete $35.0
thousand dollars from the Department of Health & Social
Services, Office of Commissioner and delete $46.0 thousand
dollars from the Department of Fish and Game, Commercial
Fisheries Entry Commission; and add $81.0 thousand dollars
for the Department of Fish and Game, Office of the
Commissioner.
Mr. Homan stated that the reduction would result in the loss
of a hearing officer or two licensing personnel.
Representative Grussendorf expressed concern with the
reduction to the Commercial Fisheries Entry Commission. Co-
Chair Hanley noted that the Commission has gradually reduced
the backlog.
There being NO OBJECTION, the amendment to Amendment FG-1
was adopt. There being NO OBJECTION, Amendment FG-1 was
adopted.
Representative Grussendorf WITHDREW Amendment FG-2 (copy on
file).
Representative Grussendorf MOVED to adopt Amendment FG-3
(copy on file). The amendment would restore the funding
level for the Division of Habitat to $1990.0 thousand
dollars. He observed that the Division was reduced by a
third of their budget. He noted that offices would be
closed in Ketchikan and Sitka.
Representative Mulder MOVED to AMEND Amendment FG-3, delete
$200.0 thousand dollars from the Subsistence BRU, Department
of Fish and Game and add $200.0 thousand dollars to the
Division of Habitat. The Division of Habitat will be funded
at $1620.0 million dollars. Co-Chair Foster OBJECTED.
A roll call vote was taken on the MOTION to amend Amendment
FG-3.
IN FAVOR: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Navarre, Hanley
OPPOSED: Brown, Grussendorf, Foster
The MOTION PASSED (8-3).
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Representative Grussendorf expressed concern with the level
of funding for the Division of Habitat.
A roll call vote was taken on the MOTION to adopt Amendment
FG-3.
IN FAVOR: Grussendorf, Navarre, Kelly, Kohring, Martin,
Mulder, Parnell, Therriault, Hanley
OPPOSED: Brown, Foster
The MOTION PASSED (9-2).
Representative Grussendorf MOVED to adopt Amendment FG-4
(copy on file). The amendment would transfer $29.6 thousand
dollars from Fisheries Management and appropriate $29.6
thousand dollars to the Yukon River Drainage Fisheries
Association.
REPRESENTATIVE IRENE NICHOLIA spoke in support of the
amendment. She emphasized that the Association allows
different interest groups to work cooperatively with the
Department of Fish and Game to assist in addressing the
declining fall chum fisheries.
Co-Chair Hanley noted that this grant was eliminated along
with other designated grants in the Department of Community
and Regional Affairs.
A roll call vote was taken on the MOTION to adopt Amendment
FG-4.
IN FAVOR: Brown, Grussendorf, Navarre, Foster
OPPOSED: Kelly, Kohring, Martin, Mulder, Parnell,
Therriault, Hanley
The MOTION FAILED (4-7).
DEPARTMENT OF PUBLIC SAFETY
Representative Brown WITHDREW Amendment PS-1 (copy on
file).
Representative Brown MOVED to adopt Intent Language PS-1
(copy on file). She explained that the intent language
would require those entities which have police powers to
utilize local police departments for routine patrol and
investigative services. Representative Mulder, and Kelly
spoke in support of Intent Language PS-1.
Representative Parnell noted that the intent language would
not cover the Anchorage Hillside area. He felt it was
22
inappropriate to enact policy through intent language.
Discussion ensued regarding the effect of the language on
the Hillside area of Anchorage.
A roll call vote was taken on the MOTION to adopt Intent
Language PS-1.
IN FAVOR: Brown, Grussendorf, Navarre, Kelly, Martin,
Mulder, Hanley, Foster
OPPOSED: Parnell, Therriault, Kohring
The MOTION PASSED (8-3).
Intent Language PS-2 was WITHDRAW.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Co-Chair Hanley MOVED to adopt Amendment DOT-1 (copy on
file). He explained that the amendment would transfer $1.0
million dollars from the Storage Tank Assistance Fund to the
Department of Transportation and Public Facilities,
Statewide Maintenance and Operations. Representative
Grussendorf questioned if the Alaska Marine Highway System
would be included. Co-Chair Hanley stated that the Alaska
Marine Highway System is not included in this component.
Representative Grussendorf stressed the need for further
funding to the Alaska Marine Highway System.
Representative Navarre spoke in support of the amendment.
Representative Brown noted that the money would be deleted
from front section 20 (b). Co-Chair Hanley noted the money
transfer would be through the General Fund.
There being NO OBJECTION, a DOT-1 was adopted.
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