Legislature(1997 - 1998)
03/26/1997 08:00 PM House FIN
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* first hearing in first committee of referral
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HOUSE BILL NO. 75
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective
date."
AMENDMENTS:
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
LEGISLATURE
UNIVERSITY OF ALASKA
FRONT SECTION
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative Kohring MOVED to adopt Amendment DCED-1 (copy on
file). Representative Davies OBJECTED for purposes of discussion.
Representative Kohring explained that the intent of the
Subcommittee was to identify programs that could be eliminated.
He observed that the Division of Tourism would be eliminated and
their duties disseminated throughout the budget. The Subcommittee
originally placed tourism functions in the Alaska Tourism
Marketing Council (ATMC). The Division of Trade and Development
would be renamed the Division of Trade and Tourism. The new
division would carry forward the mission of the tourism industry.
The Division of Trade and Tourism will be divided into the Office
of Tourism and the Office of Trade. The division director
position would be down-graded to a office manager and lowered to a
range 18. Additional funding was place in the contractual line.
Representative Kohring further explained the amendment as
diagramed on page two.
In response to a question by Representative Grussendorf,
Representative Kohring clarified that a special assistant position
in the Commissioner's Office was deleted. The director of the
Division of Tourism was down-graded to office manager.
Co-Chair Hanley summarized that the Alaska Tourism Marketing
Council would remain intact. Representative Kohring clarified
that international positions were retained.
There being NO OBJECTION, Amendment DCED-1 was adopted.
Representative Grussendorf MOVED to adopt Amendment DCED-2 (copy
on file). Representative Kohring OBJECTED. Representative
Grussendorf observed that the Alaska Tourism Marketing Council
retains statutory requirements which limits it to an executive
director and no more than two staff. The amendment would transfer
the Film Office to the Division of Trade and Tourism. He
emphasized that films are designed to attract economic
development.
Co-Chair Hanley acknowledged that the statutory three staff
requirement for the Alaska Tourism Marketing Council prevents
additional staff to manage the Film Office.
Representative Kohring stressed that the Subcommittee's intent is
to minimize the effect of reductions.
A roll call vote was taken on the MOTION to adopt Amendment DCED-
2.
IN FAVOR: Davis, Davies, Foster, Grussendorf, Kelly, Martin,
Moses, Mulder, Therriault, Hanley
OPPOSED: Kohring
The MOTION PASSED (10-1).
Representative Davies MOVED to adopt Amendment DCED-3 (copy on
file). Representative Kohring OBJECTED for purposes of
discussion. Representative Davies explained that the amendment
would reestablish the Alaska Science and Technology Foundation
(ASTF) as a grant giving agency. He spoke in support of the
amendment. He gave examples of projects supported by the Alaska
Science and Technology Foundation.
Representative Martin spoke in support of the amendment.
Representative Kohring explained that his plan to eliminate the
Alaska Science and Technology Foundation were based on discussions
with other legislative members. He spoke against the amendment.
He maintained that the Alaska Science and Technology Foundation
subsidizes the economy. He stressed that the state would continue
to meet its contractual obligations. He stated that funding for a
grant administrator and a clerical position were authorized to
manage the remaining grants. He recommended that the remaining
funding be spent on road and highway deferred maintenance.
Representative Grussendorf spoke in support of the amendment. He
stressed that ASTF is geared toward creating new market niches and
diversifying the economy.
Representative Kohring maintained that research should be the
function of the University of Alaska system. He added that
projects should be financed by private sector investors.
Representative Davies stressed that ASTF is not a subsidy for
business. He asserted that ASTF is a development activity that
allows the state and private enterprise to share risk. If a
product is developed that pays its own way it repays the Fund. He
maintained that university research cannot make up for the loss of
ASTF.
A roll call vote was taken on the MOTION to adopt Amendment DCED-
3.
IN FAVOR: Davies, Grussendorf, Moses, Kelly, Martin, Davis
OPPOSED: Kohring, Mulder, Foster, Therriault, Hanley
The MOTION PASSED (6-5).
Representative Grussendorf MOVED to adopt Amendment DCED-4 (copy
on file). He expressed concern with reductions to the Division of
Trade and Development. He acknowledged that the Department of
Commerce and Economic Development is at its budget cap.
Representative Grussendorf WITHDREW Amendment DCED-4.
Representative Grussendorf MOVED to adopt Amendment DCED-5 (copy
on file). Representative Kohring OBJECTED for purposes of
discussion. Amendment DCED-5 would add $200 thousand general fund
dollars and $66.7 thousand dollars in designated program receipts
to the Alaska Tourism Marketing Council for TV adds.
Representative Grussendorf spoke in support of the amendment. He
noted that television advertising has been reduced.
(Tape Change, HFC 97-84, Side 2)
GUY BELL, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMERCE AND ECONOMIC DEVELOPMENT explained that with Amendment
DCED-5 the Alaska Tourism Marketing Council's FY 98 budget would
be $370 thousand dollars below FY 97.
Representative Kohring spoke against the amendment. He pointed
out that $1.175 million dollars have been budget for television
advertising. Mr. Bell clarified that the Governor's budget, as
proposed had $1.17 million dollars for television advertising.
The ATMC budget was reduced by $1 million dollars. He maintained
that this reduction effectively eliminates the television
advertising program.
A roll call vote was taken on the MOTION to adopt Amendment DCED-
5.
IN FAVOR: Davies, Grussendorf, Moses, Foster
OPPOSED: Davis, Kohring, Martin, Mulder, Therriault, Hanley
Representative Kelly was absent from the vote.
The MOTION FAILED (4-6).
Representative Kohring noted that funding was transferred from the
Office of Trade to the Office of Tourism. Representative
Grussendorf WITHDREW Amendment DCED-6.
Representative Grussendorf MOVED to adopt Amendment DCED-7 (copy
on file). Representative Kohring OBJECTED for purposes of
discussion. Amendment DCED-7 would restore a special assistant
position. He observed that the commissioner of the Department of
Commerce and Economic Development sits on 16 major boards and 20
task forces. The special assistant position is able to be present
when the commissioner cannot.
Representative Kohring spoke against Amendment DCED-7. He
emphasized the need to reduce the budget. He suggested that a
reduction of the commissioner's duties and responsibilities could
be considered.
A roll call vote was taken on the MOTION to adopt Amendment DCED-
7.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION FAILED (3-8).
LEGISLATURE
Representative Moses MOVED to adopt Amendment LEG-1 (copy on
file). Co-Chair Hanley OBJECTED. Amendment LEG-1 would delete
$84.1 thousand dollars from the Legislature's operating budget and
restore $119.1 thousand dollars to Alaska Seafood Marketing
Institute. The amendment would appropriate $78.9 thousand dollars
in program receipts, $5.2 thousand dollars in general fund match
and $35 thousand dollars in federal receipts. Representative
Moses maintained that it is a poor time to reduce the ASMI
program.
Representative Grussendorf spoke in support of the amendment.
A roll call vote was taken on the MOTION to adopt Amendment LEG-1.
IN FAVOR: Davies, Grussendorf, Moses
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
The MOTION FAILED (3-8).
Representative Moses MOVED to adopt Amendment LEG-2 (copy on
file). Co-Chair Hanley OBJECTED. Amendment LEG-2 would delete
$300 thousand dollars from the Legislative Operating Budget and
add $300 thousand dollars to the Department of Fish and Game,
Commercial Fisheries Management and Development for support in the
development of new fisheries. Representative Moses spoke in
support of the amendment. He maintained that the Bering Sea
fisheries have been handed to the state of Washington do to
restrictions on Alaskan fishers. He emphasized the need for
special openings for the small boat fleet and development of new
fisheries.
Representative Davis noted that there are economic development
opportunities in unutilized fisheries around the state. He spoke
in support of the amendment.
Representative Grussendorf spoke in support of the amendment. He
stressed that the amendment would develop fisheries.
A roll call vote was taken on the MOTION to adopt Amendment LEG-2.
IN FAVOR: Davies, Davis, Grussendorf, Moses
OPPOSED: Foster, Kelly, Kohring, Martin, Mulder, Therriault,
Hanley
The MOTION FAILED (4-7).
Representative Moses MOVED to adopt Amendment LEG-3 (copy on
file). Co-Chair Hanley OBJECTED. Representative Moses explained
that the state trooper position stationed in Cold Bay is going to
be eliminated. He noted that no troopers will be stationed
between Dillingham and the end of the Aleutian chain. The
amendment would delete $100 thousand dollars from the Legislative
Operating Budget and add $100 thousand dollars to the Department
of Public Safety to fund the Cold Bay trooper. He emphasized the
high cost of flying troopers from Dillingham.
Representative Davies spoke in support of the amendment. He
recounted an experience he had in Cold Bay regarding the loss of
geological equipment. He stressed that the local trooper was able
to retrieve the equipment. He added that the weather in the area
is unpredictable.
A roll call vote was taken on the MOTION to adopt LEG-3.
IN FAVOR: Davies, Davis, Grussendorf, Kelly, Moses
OPPOSED: Mulder, Foster, Kohring, Martin, Hanley, Therriault
The MOTION FAILED (5-6).
Representative Moses MOVED to adopt Amendment LEG-4 (copy on
file). Amendment LEG-4 would add intent language to provide a
full time state trooper in Detachment A stationed in Cold Bay.
Co-Chair Hanley noted that he supported the amendment. There
being NO OBJECTION, it was so ordered.
STATEWIDE
Co-Chair Hanley MOVED to adopt Amendment Statewide-3 as revised
(copy on file). Co-Chair Hanley explained that the amendment
would deny general salary increases.
Ms. McConnell spoke in support of the negotiated wage increase.
She maintained that the negotiations were entered into in good
faith. She stressed that the Governor has already cut money from
the agencies' budgets to accommodate the increases in the second
year of the contracts.
(Tape Change, HFC 97-85, Side 1)
Ms. McConnell stated that the Administration supports the
contracts and that the negotiated increases have been incorporated
into the Governor's budget. She maintained that it is the
obligation of the Legislature to support commitments made for the
whole term of the contracts.
Co-Chair Hanley noted that it is the Administration's obligation
to support the contracts. He stated that there is no statutory
obligation for the Legislature to support the contracts. He
observed that, in previous years, similar contracts negotiated by
the Administration have been turned down by the union membership.
Co-Chair Hanley recalled that salary increases, approved last
year, were for one year only.
Co-Chair Therriault recounted statements made during floor debate
in the past legislative session. He observed that he indicated,
at the time, that his vote should not be construed as an
endorsement of the contracts up to the year 2000. He noted that a
salary study was requested. He asserted that future legislatures
cannot be bound.
Representative Davies acknowledged that the Legislature can deny
the salary increases. He questioned if it is good public policy
to renegotiate labor contracts every year. He argued that it
would be better to accept the contract.
Representative Grussendorf spoke against the amendment.
Ms. McConnell reiterated support for the contracts. She stressed
the difficulty of renegotiating the contracts.
A roll call vote was taken on the MOTION to adopt Statewide-3.
IN FAVOR: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
OPPOSED: Davies, Grussendorf
Representative Moses was absent from the vote.
The MOTION PASSED (8-2).
UNIVERSITY OF ALASKA
Co-Chair Therriault MOVED to Rescind the Committee's action in
failing to adopt Amendment UA-3. A roll call vote was taken on
the MOTION.
IN FAVOR: Davies, Grussendorf, Davis, Foster, Kelly, Kohring,
Martin, Mulder, Therriault
OPPOSED: Hanley
Representative Moses was absent from the vote.
Co-Chair Therriault MOVED to Amend Amendment UA-3 by deleting the
reference to the University of Alaska,Fairbanks/Fairbanks
Organized Research. There being NO OBJECTION, it was so ordered.
Amendment UA-3 as amended would delete $530 thousand dollars from
the University of Alaska. There being NO OBJECTION, Amendment
UA-3 was adopted as amended.
FRONT SECTION
Representative Martin MOVED to Rescind the Committee's action in
failing to adopt Amendment Front-4. A roll call vote was taken on
the MOTION.
IN FAVOR: Davies, Grussendorf, Foster, Kelly, Kohring, Martin,
Therriault, Hanley
OPPOSED: Mulder, Davis
Representative Moses was absent from the vote.
The MOTION PASSED (8-2).
Co-Chair Hanley summarized that Amendment Front-4 would allow
revenues generated by the Alaska Railroad Corporation to be
appropriated to the railroad. He observed that the amendment
would only have an effect if legislation is passed placing the
railroad under the Executive Budget Act.
A roll call vote was taken on the MOTION to adopt Amendment Front-
4.
IN FAVOR: Davies, Grussendorf, Kelly, Kohring, Martin,
Therriault, Hanley
OPPOSED: Mulder, Davis, Foster
Representative Moses was absent from the vote.
The MOTION PASSED (7-3).
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Representative Grussendorf MOVED to Rescind the Committee's action
in adopting Amendment CRA-8. Co-Chair Hanley OBJECTED. Amendment
CRA-8 increased the overall reduction to municipal assistance and
revenue sharing to 6 percent.
A roll call vote was taken on the MOTION to Rescind Amendment CRA-
8.
IN FAVOR: Davies, Grussendorf
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,
Therriault, Hanley
Representative Moses was absent from the vote.
The MOTION FAILED (2-8).
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Co-Chair Hanley MOVED to adopt Amendment HSS-20 (copy on file).
He explained that the amendment would delete an $125 thousand
dollar increment in State Health Services/Public Health
Administrative Services and add to Child Protection Services $41.7
thousand dollars in the Northern Region, $41.7 thousand dollars in
the South Central Region and $41.6 thousand dollars in the South
Eastern Region. There being NO OBJECTION, it was so ordered.
LEGISLATURE
Co-Chair Hanley MOVED to Adopt an $100 thousand dollar unallocated
reduction to the Legislative Operating Budget. There being NO
OBJECTION, it was so ordered.
HB 75 and HB 76 were HELD in Committee for further consideration.
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