Legislature(1997 - 1998)

04/16/1998 08:37 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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HOUSE BILL NO. 325                                                             
                                                                               
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.                             
                                                                               
HOUSE BILL NO. 326                                                             
                                                                               
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 LABOR                                                            
                                                                               
Co-Chair Therriault MOVED to ADOPT Amendment Labor-1 (copy                     
on file).  He explained that the Department of Labor                           
Subcommittee reduced excess general fund match used in the                     
Alaska Work Program.  The Amendment would authorize                            
additional interagency receipts to the Alaska Work Program                     
from the Department of Health and Social Services.                             
                                                                               
Representative Grussendorf spoke in support of the                             
amendment.                                                                     
                                                                               
There being NO OBJECTION, it was so ordered.                                   
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment Labor-2                    
(copy on file).  Co-Chair Hanley OBJECTED for the purpose of                   
discussion.  Amendment Labor-2 would add $4.8 thousand                         
dollars for Employment Security Services and $1.6 thousand                     
dollars for Employment Security unemployment insurance.                        
                                                                               
Representative Grussendorf spoke in support of the                             
amendment.  He observed that the federal government                            
reimburses the Department of Labor for the use of its                          
vehicle fleet for on the job inspections.  The Department of                   
Labor receives reimbursement based on a 15-year                                
depreciation.  The amendment reflects that the actual                          
depreciation time is less than 15 years.                                       
                                                                               
Co-Chair Therriault emphasized that the department could                       
absorb the amount.                                                             
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses, Foster                                   
OPPOSED: Davis, Kelly, Kohring, Martin, Mulder, Therriault,                    
Hanley                                                                         
                                                                               
The MOTION FAILED (4-7).                                                       
                                                                               
Representative Grussendorf WITHDREW Amendment Labor-3.                         
                                                                               
MILITARY AND VETERANS AFFAIRS                                                  
                                                                               
Co-Chair Therriault MOVED to ADOPT Amendment MVA-1 (copy on                    
file).  Amendment MVA-1 would delete $50 thousand dollars                      
from Disaster Planning and Control and add $50 thousand                        
general fund dollars, $50 thousand agriculture revolving                       
loan fund dollars and $25 thousand dollars in statutory                        
designated receipts to the Department of Natural Resources,                    
Agricultural Development.  He explained that the                               
appropriation would allow field certification and assist in                    
marketing seed potatoes in Taiwan.  He observed that money                     
has, earmarked for Red Cross assistance, was lapsed from the                   
Disaster Planning and Control Account during the last two                      
years.  He observed that the intent is that the Department                     
of Commerce and Economic Development develop a business plan                   
for continuation of the project.  Alaska is the only state                     
that has broken into the Taiwanese market.                                     
                                                                               
Representative Grussendorf pointed out that approximately                      
$500 thousand dollars has been appropriated toward the                         
project.  He questioned when the project would start to pay                    
for itself.  Co-Chair Therriault stated that, based on                         
increased purchases, the project should begin to pay for                       
itself.  He noted that the farmers would contribute $25                        
thousand dollars toward the project.                                           
                                                                               
There being NO OBJECTION, Amendment MVA-1 was adopted.                         
                                                                               
In response to a question by Representative Foster, Co-Chair                   
Hanley observed that the Committee previously adopted intent                   
language.                                                                      
                                                                               
ALASKA COURT SYSTEM                                                            
                                                                               
Representative Davies MOVED to ADOPT Amendment Court-1 (copy                   
on file). Co-Chair Hanley OBJECTED.  Amendment Court-1 would                   
appropriate $1,417.0 million dollars to the Alaska Court                       
System for administration and support.  Representative                         
Davies explained that the appropriation would provide                          
security for out-of-custody hearings.  He stressed that the                    
Courts are concerned with the lack of security.                                
                                                                               
Co-Chair Therriault pointed out that the Alaska Court System                   
had a $600 - $700 thousand-dollar savings in personnel cost.                   
Of this amount, $380 thousand dollars is committed to                          
covering costs related to adoptions under the Smart Start                      
Program.  He observed that the remaining savings could be                      
used to fund increased courtroom security.                                     
                                                                               
Representative Grussendorf spoke in support of the                             
amendment.                                                                     
                                                                               
Representative Davies MOVED to amend Amendment Court-1 to                      
$708.5 thousand dollars.  He observed that the amendment                       
would provide 11 court officers.  He stressed that court                       
security officers have been diverted to prisoner transport                     
due to a high caseload.                                                        
                                                                               
There being NO OBJECTION, the amendment to Amendment Court-1                   
was adopted.                                                                   
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses                                           
OPPOSED: Davis, Foster, Kohring, Martin, Mulder,                               
Therriault, Hanley                                                             
                                                                               
Representative Kelly was absent from the vote.                                 
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
DEPARTMENT OF REVENUE                                                          
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment Rev-1                      
(copy on file).  Amendment Rev-1 would replace a federal                       
appropriation of $110 thousand dollars with general funds to                   
the Division Child Support Enforcement.                                        
                                                                               
GINGER PATTON, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION                    
testified that the amendment had be previously adopted.                        
                                                                               
Representative Grussendorf WITHDREW the amendment.                             
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment Rev-2                      
(copy on file).  Representative Mulder OBJECTED.  Amendment                    
Rev-1 would authorize an additional $4,494.0 million dollars                   
in fund receipts to the Alaska Permanent Fund Corporation.                     
He observed that the amendment would bring their FY 99                         
appropriation, in this area, equal to the FY 98 authorized                     
and supplemental appropriations.                                               
                                                                               
Representative Martin spoke against the amendment.  He                         
argued that savings could be obtained and pointed out that                     
the FY 98 request was greater than the actual appropriation,                   
with the addition of the supplemental.                                         
                                                                               
Representative Grussendorf observed that the FY 99                             
appropriation is less than the combined FY 98 appropriation.                   
                                                                               
Co-Chair Hanley spoke against the amendment.                                   
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses                                           
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,                        
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment Rev-3                      
(copy on file).  Representative Mulder OBJECTED. Amendment                     
Rev-3 adds $76 thousand dollars in program receipts to the                     
Alcohol Beverage Control Board.  Representative Grussendorf                    
explained that the amendment restores an increment for an                      
investigator in Southeast Alaska.                                              
                                                                               
Representative Martin spoke against the amendment.                             
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses, Foster                                   
OPPOSED: Davis, Kelly, Kohring, Martin, Mulder, Therriault,                    
Hanley                                                                         
                                                                               
The MOTION FAILED (4-8).                                                       
                                                                               
DEPARTMENT OF NATURAL RESOURCES                                                
                                                                               
Representative  Kelly WITHDREW Amendment DNR-1 (copy on                        
file).                                                                         
                                                                               
Representative Kelly MOVED to ADOPT Amendment DNR-2 (copy on                   
file).  Amendment DNR-2 would delete a $35.4 thousand dollar                   
appropriation from the Agriculture Revolving Loan Fund                         
(ARLF), which would have increased to full-time a special                      
assistant position.  It would add $63.0 thousand ARLF                          
dollars for an additional agricultural inspector position in                   
Fairbanks and add $55.4 thousand ARLF dollars to                               
contractual.  Under the contractual amount $15.4 thousand                      
dollars would authorize increased warrants and $40 thousand                    
dollars would be used for the Alaska Grown Promotion                           
program.                                                                       
                                                                               
SENATOR LYDA GREEN explained that the agricultural inspector                   
I position would be used in the Mat-Su area.  She spoke in                     
support of the amendment.                                                      
                                                                               
(Tape Change, HFC 98 - 106, Side 2)                                            
                                                                               
Co-Chair Hanley questioned if the private sector compliments                   
the Alaska Grown Promotion program.  Senator Green noted                       
that there is some private contribution.                                       
                                                                               
Representative Grussendorf asked if the amendment is                           
contained in the Senate version.  Senator Green observed                       
that it is in the senate version.                                              
                                                                               
In response to a question by Representative Davies, Senator                    
Green explained that additional staff is needed to cover                       
inspections while the existing positions are in training.                      
There would be four full-time inspectors.                                      
                                                                               
Representative Kelly MOVED to amend Amendment DNR-2, delete                    
"Fairbanks" and insert "Mat-Su".  There being NO OBJECTION,                    
it was so ordered.  There being NO OBJECTION, Amendment DNR-                   
2 was adopted as amended.                                                      
                                                                               
Representative Davies MOVED to ADOPT Amendment DNR-3 (copy                     
on file).  Co-Chair Hanley OBJECTED.  Amendment DNR-3 would                    
delete $50 thousand dollars from Fire Suppression and add                      
$50 thousand dollars to the Commissioner's Officer.                            
Representative Davies spoke in support of the amendment.                       
                                                                               
Co-Chair Therriault spoke in opposition to the amendment.                      
He objected to the funding source.                                             
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses                                           
OPPOSED: Davis, Foster, Kelly, Martin, Mulder, Therriault,                     
Hanley                                                                         
                                                                               
Representative Kohring was absent from the vote.                               
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
Amendments DNR-4 and DNR-5 were not offered.                                   
                                                                               
Representative Davies MOVED to ADOPT Amendment DNR-6.                          
Amendment DNR-6 contained intent language to clarified that                    
the department would request through the Legislative Budget                    
and Audit Committee statutory designated program receipt                       
authority in the amount of $150 thousand dollars for                           
specific land use plans.                                                       
                                                                               
Co-Chair Hanley pointed out that the department already has                    
the authority to request authorization for statutory                           
designated program receipts.                                                   
                                                                               
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND                          
BUDGET, OFFICE OF THE GOVERNOR emphasized that it is helpful                   
to have a clarification on record since the Legislative                        
Budget and Audit Committee has been concerned that it not                      
authorize expenditures that were not intended in the                           
operating budget.                                                              
                                                                               
There being NO OBJECTION, Amendment DNR-6 was adopted.                         
                                                                               
DEPARTMENT OF FISH AND GAME                                                    
                                                                               
Representative Mulder MOVED to ADOPT Amendment F&G-1 (copy                     
on file).  Co-Chair Hanley OBJECTED for the purpose of                         
discussion.   Amendment F&G-1 would delete $100.0 thousand                     
dollars from the Commissioner's Office.  Representative                        
Mulder observed that fish and game funds, derived from                         
hunting and sport fish licenses are being used to fund a                       
position in the Commissioner's Office.  He pointed out that                    
fish and game funds are to be used to promote opportunities                    
for recreational hunters and fishermen.                                        
                                                                               
Representative Grussendorf spoke against the amendment.  He                    
stressed that activities in the Commissioner's Office are                      
tied to sport fishing and hunting.                                             
                                                                               
Representative Davies spoke against the amendment.  He                         
stressed that the position could provide a basis for people                    
to expect and demand representation at the commissioner's                      
level for sport fishing and hunting issues.                                    
                                                                               
FRED FISHER, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION                      
clarified, in response to a question by, Co-Chair Hanley                       
that the funds could come from either sport fish or game                       
licenses.                                                                      
                                                                               
Representative Mulder noted that he would not object to                        
other use of Fish and Game funds.                                              
                                                                               
FRANK RUE, COMMISSIONER, DEPARTMENT OF FISH AND GAME                           
observed that fish and game funds are used in other states'                    
commissioner's offices.  He emphasized that the                                
Commissioner's Office handles game and sport fishing issues.                   
The appropriation is only 10 or 15 percent of the                              
Commissioner's Office's overall budget.  He acknowledged                       
concerns that there is not adequate representation for sport                   
fishing and game issues on the North Pacific Council or                        
Board of Fish.  He stressed the need to be active on                           
endangered species issues.  He assured the Committee that                      
the funds would be used to support the opportunity for sport                   
hunting and fishing.                                                           
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Foster, Kelly, Kohring, Martin, Mulder, Therriault                   
OPPOSED: Davies, Grussendorf, Moses, Davis, Hanley                             
                                                                               
The MOTION PASSED (6-5).                                                       
                                                                               
Representative Mulder MOVED to ADOPT Amendment F&G-2 (copy                     
on file).  Representative Davies OBJECTED.  Amendment F&G-2                    
would move $75 thousand dollars from the Soldotna office of                    
the Central Regional Fisheries Management to the Kenai River                   
Center, Habitat Permitting/Title 16.  He observed that the                     
department indicated that, at the current level, the $75                       
thousand dollars in general funds would be used for Title 16                   
permitting, not the Kenai River Center.                                        
                                                                               
Representative Grussendorf expressed concern with the                          
funding source.                                                                
                                                                               
Representative Davis acknowledged the need for funding to                      
the Kenai River Center, but expressed concern with the                         
funding source.  He MOVED to amend Amendment F&G-2 by                          
deleting the deletion and reducing the addition from $75                       
thousand dollars to $52 thousand dollars.                                      
                                                                               
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                   
DEPARTMENT OF FISH AND GAME agreed with Representative                         
Mulder's assessment that the current level of funding would                    
be used for permitting.  He observed that the Governor                         
requested an increment of $175 thousand dollars to allow the                   
Habitat Division to deal with increased workload.  The                         
workload has increased about 38 percent, while the                             
division's general funds have been reduced approximately 47                    
percent.  This is the last year that capital improvement                       
funds are available.  The current budget would not cover the                   
Kenai River Center.                                                            
                                                                               
Representative Davis noted that the Kenai Borough has                          
received a request for assistance in covering operational                      
and maintenance expenses.  He questioned if "Title 16"                         
should be deleted from the amendment to assure that the                        
funds go to the Kenai River Center.  Mr. Rue explained that                    
the Center issues permits.                                                     
                                                                               
Representative Mulder spoke against reducing the addition to                   
$52 thousand dollars.                                                          
                                                                               
Co-Chair Hanley spoke against the amendment.  He noted that                    
the Department of Fish and Game is at its spending cap.                        
                                                                               
Representative Davis clarified that the $52 thousand dollars                   
in state funds was built into the Kenai River Center's                         
budget.                                                                        
                                                                               
A roll call vote was taken on the motion to amend Amendment                    
F&G-2.                                                                         
                                                                               
IN FAVOR: Davies, Davis, Grussendorf, Moses                                    
OPPOSED: Foster, Kelly, Kohring, Martin, Mulder,                               
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (4-7).                                                       
                                                                               
Representative Davies MOVED to divide the question.  Co-                       
Chair Hanley OBJECTED.  A roll call vote was taken on the                      
motion.                                                                        
                                                                               
IN FAVOR: Davies, Davis, Grussendorf, Moses                                    
OPPOSED: Foster, Kelly, Kohring, Martin, Mulder,                               
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (4-7).                                                       
                                                                               
A roll call vote was taken on the motion to adopt Amendment                    
F&G-2.                                                                         
                                                                               
IN FAVOR: Mulder, Foster, Kelly, Kohring, Martin, Therriault                   
OPPOSED: Davies, Davis, Grussendorf, Moses, Hanley                             
                                                                               
The MOTION PASSED (6-5).                                                       
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment F&G-3                      
(copy on file).  Amendment F&G-3 would add a $75 thousand                      
dollar increment to the Division of Habitat for oil and gas                    
leasing. Representative Grussendorf emphasized that the                        
appropriation would be used to assure that the state's fish                    
and wildlife resources are protected.                                          
                                                                               
Co-Chair Hanley spoke in opposition to the amendment.  He                      
pointed out that the Subcommittee did not delete the savings                   
the division anticipates from early retirements.  He                           
stressed that these savings should offset reductions made in                   
the FY 98 budget.                                                              
                                                                               
(Tape Change, HFC 98 - 107, Side 1)                                            
                                                                               
Representative Davies asked the anticipated amount that                        
would be saved from early retirements.                                         
                                                                               
Co-Chair Hanley stated that there is a potential savings of                    
approximately $30 thousand dollars.                                            
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses                                           
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,                        
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment F&G-4                      
(copy on file).  He noted that the amendment would be an                       
addition of $100 thousand dollars for Habitat                                  
Permitting/Title 16.  The amendment would allow for                            
permitting increases in Mat-Su and Southeast Alaska.                           
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses                                           
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Mulder,                        
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative Grussendorf MOVED to ADOPT Amendment F&G-5                      
(copy on file).  The amendment would add $150 thousand                         
dollars for Subsistence Field Offices.  He stressed the need                   
for data regarding harvest levels.                                             
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR: Davies, Grussendorf, Moses                                           
OPPOSED: Davis, Foster, Kelly, Kohring, Martin, Therriault,                    
Hanley                                                                         
                                                                               
Representative Mulder was absent from the vote.                                
                                                                               
The MOTION FAILED (3-7).                                                       
                                                                               
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                             
                                                                               
Representative Foster MOVED to ADOPT Amendment DOT-1 (copy                     
on file).  He explained that the amendment would correct a                     
technical problem, which occurred with the closeout.                           
                                                                               
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                   
DEPARTMENT OF TRANSPORTATION explained that the subcommittee                   
requested that the unallocated reduction for the Department                    
of Transportation and Public Facilities be taken in the same                   
manner as in FY 98.  The unallocated reduction in FY 98 was                    
divided between the statewide programs and the Alaska Marine                   
Highway System.  The Alaska Marine Highway System is a front                   
section appropriation.  The amendment moves $800 thousand                      
dollars of the unallocated reduction to the Alaska Marine                      
Stabilization Fund to offset an increment that was requested                   
for assistance.  The level of service would not be reduced.                    
                                                                               
There being NO OBJECTION, Amendment DOT-1 was adopted.                         
                                                                               
Representative Foster MOVED to ADOPT Amendment DOT-2 (copy                     
on file).  Ms. Slagle explained that the amendment moves the                   
BRU and component budget structure for the Alaska Marine                       
Highway System.  There would be no impact to the Alaska                        
Marine Highway System.                                                         
                                                                               
Co-Chair Hanley noted that it is a technical amendment.                        
                                                                               
There being NO OBJECTION, it was so ordered.                                   

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