Legislature(1997 - 1998)

04/16/1998 03:00 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
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 TRANSPORTATION AND PUBLIC FACILITIES                             
                                                                               
Representative Foster MOVED to adopt DOT #3.  [Copy on                         
File].  He explained that it would provide a technical                         
correction.  There being NO OBJECTION, it was adopted.                         
                                                                               
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                   
                                                                               
Representative Kohring noted that as Chair of the DCRA                         
Subcommittee, the Committee recommended no spending beyond                     
the cap and that the entire Subcommittee supported the                         
final version as proposed.                                                     
                                                                               
Representative Kohring MOVED to adopt CRA #1.  [Copy on                        
File].  He stated that the amendment would delete federal                      
funding from the Rural Cap program and employment training                     
for rural development.  He believed that the program was                       
deviating from its mission regarding expenditures.  These                      
funds are a grant program, although, he remarked that the                      
money was being spent in a political way.  This amendment                      
would delete all money from that program.                                      
                                                                               
Representative Grussendorf OBJECTED.  He pointed out that                      
the Subcommittee had agreed that the Community and                             
Development Assistance program should be held harmless.                        
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  Kelly, Kohring, Martin, Mulder, Therriault                          
OPPOSED: Grussendorf, Moses, J. Davies, G. Davis,                              
Foster, Therriault                                                             
                                                                               
The MOTION FAILED (5-6).                                                       
                                                                               
Representative Grussendorf MOVED to adopt CRA #2.  [Copy on                    
File].  Representative Mulder OBJECTED.  Representative                        
Grussendorf noted that the amendment would restore $2.5                        
million dollars in funding for the State's revenue sharing                     
program to the level proposed in the Governor's FY 99                          
budget.  Last year the programs were reduced by 6% and this                    
year it is proposed that they be reduced an additional 5%.                     
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  Moses, J. Davies, Grussendorf                                       
OPPOSED: Kelly, Kohring, Martin, Mulder, G. Davis,                             
Foster, Hanley, Therriault                                                     
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative Grussendorf MOVED to adopt CRA #3.  [Copy on                    
File].  Representative Kohring OBJECTED.  Representative                       
Grussendorf explained that the amendment would restore the                     
increment for the program as proposed in the Governor's                        
FY99 budget.  Right now the State only provides for 22% of                     
the eligible children.  The proposed increase would raise                      
that amount to 25%; 12% of those children have some type of                    
disability.                                                                    
                                                                               
Representative J. Davies spoke to the long success track                       
record of that program.  He stressed that this was an                          
important piece of the long-range prevention goal.                             
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  Moses, J. Davies, Grussendorf                                       
OPPOSED: Kohring, Martin, Mulder, G. Davis, Foster,                            
Kelly, Therriault, Hanley                                                      
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative Grussendorf MOVED to adopt CRA #4.  [Copy on                    
File].  He explained that this amendment would address                         
local government assistance.  It would restore the funding                     
level for that component to the Governor's proposed FY99                       
level.  Representative Grussendorf pointed out that the                        
Subcommittee had specifically intended to hold the program                     
harmless from any reduction.                                                   
                                                                               
Co-Chair Hanley noted that last year when the revision was                     
passed to the municipal assistance and revenue sharing                         
bill, the smallest communities received an increase.                           
                                                                               
Representative Kohring OBJECTED, noting that originally the                    
Subcommittee wanted to cut $300 thousand dollars from that                     
program and that the $50 thousand dollar reduction was                         
small.  He pointed out that Division was heavily staffed.                      
Representative Kohring believed that twenty staff people is                    
more than adequate to perform the required functions.                          
Representative Grussendorf disagreed with Representative                       
Kohring that the Subcommittee had recommended a $300                           
thousand dollar cut, advising that the Minority members had                    
disagreed with all the proposed cuts in that Subcommittee.                     
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  Moses, J. Davies, Grussendorf                                       
OPPOSED: Martin, Mulder, G. Davis, Foster, Kelly,                              
Kohring, Hanley, Therriault                                                    
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative Grussendorf MOVED to adopt CRA #5.  [Copy on                    
File].  Representative Kohring OBJECTED.  Representative                       
Grussendorf stated that the amendment would restore the                        
funding for the Special Assistant position to the                              
Commissioner.  The Department deals with many small                            
communities throughout the State and must participate in                       
many different organizations and boards.  He commented that                    
the above mentioned position could serve as the                                
Commissioner's designee.  Representative J. Davies pointed                     
out that there is an increasing need for interfacing Title                     
29 into rural Alaska.                                                          
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  Moses, J. Davies, Grussendorf, Kelly                                
OPPOSED: Mulder, G. Davis, Foster, Kohring, Martin,                            
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (4-7).                                                       
                                                                               
Representative Grussendorf MOVED to adopt CRA #6.  [Copy on                    
File].  Representative Kohring OBJECTED.  Representative                       
Grussendorf explained that the amendment would restore the                     
funding level for the program to the Governor's proposed FY                    
99 level.  He stated that the program is responsible for                       
$19 million dollars worth of childcare programs                                
administered throughout the State.                                             
                                                                               
Representative Kohring noted that the requested position is                    
for a grant administrator, and that that there currently                       
are 10 grant administrator positions held in DCRA.                             
Representative Kohring believed that the program could be                      
run efficiently with that number of staff.                                     
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  J. Davies, Grussendorf, Moses                                       
OPPOSED: Mulder, G. Davis, Foster, Kelly, Kohring,                             
Martin, Hanley, Therriault                                                     
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                       
                                                                               
Representative J. Davies MOVED to adopt HESS #1.  [Copy on                     
File].  Representative Martin OBJECTED.                                        
                                                                               
Representative J. Davies explained that the amendment would                    
restore the general relief medical (GRM) funding designated                    
for low income Alaskans to provide specific types of                           
medical services including terminal illness, chemotherapy,                     
diabetes, seizure disorders, mental illness, and                               
hypertension.  The GRM program has over 1600 persons                           
currently utilizing that service.                                              
                                                                               
Representative Martin spoke to the number of situations in                     
which GRM supported funding for abortions.  He added that                      
the "safety net" referenced by Representative J. Davies                        
could be covered by Medicare and Medicaid.  Representative                     
Martin suggested that GRM was "hiding" under illegal                           
medical guises.  Representative J. Davies noted that in                        
1997, there were 857 people who received GRM for emergency                     
and/or chronic health care needs.  Typically, 89% of these                     
services are for prescriptions and drugs.  Representative                      
J. Davies stressed that often times GRM services are a                         
bridge to the federal programs referenced by Representative                    
Martin, and that those programs have to be applied for, in                     
which many times there is a several month delay.                               
                                                                               
A roll call vote was taken on the motion to adopt HESS #1.                     
                                                                               
IN FAVOR:  J. Davies, G. Davis, Grussendorf, Moses                             
OPPOSED: Foster, Kelly, Kohring, Martin, Mulder,                               
Therriault, Hanley                                                             
                                                                               
The MOTION FAILED (4-7).                                                       
                                                                               
Representative Martin MOVED to adopt HESS Intent Language.                     
Representative Grussendorf stated that the philosophy                          
proposed in the Letter of Intent was unacceptable by                           
denying those people in dire need of medical attention.  He                    
OBJECTED to the Letter of the Intent.                                          
                                                                               
Representative Kelly pointed out that over the past years,                     
the Legislature has encouraged the Administration to                           
separate the abortion dollars from GRM, which has put the                      
Legislature in an awkward position.  He stated that the                        
Administration has flatly refused.  Representative                             
Grussendorf explained that the Administration could not                        
make that separation as a result of a Supreme Court ruling.                    
                                                                               
(Tape Change HFC 98- 108, Side 2).                                             
                                                                               
Representative J. Davies cited that language written in the                    
intent language was not true.  Representative Martin                           
offered to provide Committee members significant back up                       
for every statement made in the attachment.                                    
                                                                               
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE                             
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, advised                    
that she was not aware of any available factual statements                     
regarding the referenced material.  Representative Martin                      
reiterated that there had been extensive claims which came                     
from the Department.  Representative Grussendorf commented                     
that there was more information than necessary contained in                    
the Letter of Intent.                                                          
                                                                               
Representative J. Davies noted that the language contained                     
in the Letter of Intent was insulting.  He quoted the                          
letter:  "The State has a policy of terminating children of                    
those on welfare with the expressed purpose of keeping down                    
the purpose of social funded programs".  He stressed that                      
there is no evidence that is the State's policy.                               
Representative Martin pointed out that the Department has                      
clearly referenced the economic value of spending money on                     
abortion.  Representative J. Davies claimed that                               
Representative Martin had taken information out of context                     
and misinterpreted it.                                                         
                                                                               
Representative J. Davies continued, the Letter of Intent                       
states that in a 1974 settlement agreement that DHSS agreed                    
to ignore its own abortion regulations.  He asked if Ms.                       
Weller was familiar with that settlement agreement.                            
                                                                               
NANCY WELLER, DIVISION OF MEDICAL ASSISTANCE, DEPARTMENT OF                    
HEALTH AND SOCIAL SERVCIES, replied that the agreement had                     
been based on not requiring a position statement be                            
submitted with the abortion claims.                                            
                                                                               
Representative Martin temporarily WITHDREW the MOTION to                       
adopt the Letter of Intent.  There being NO OBJECTION, it                      
was withdrawn.                                                                 
                                                                               
DEPARTMENT OF LAW                                                              
                                                                               
Representative Grussendorf MOVED to adopt LAW #1.  [Copy on                    
File].  Representative Mulder OBJECTED.  Representative                        
Grussendorf commented that the amendment would fund a part-                    
time prosecutor to handle the Bristol Bay fishery cases and                    
assist public safety by prosecuting cases in other                             
fisheries.                                                                     
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  Grussendorf, Moses, J. Davies, Hanley                               
OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin,                             
Mulder, Therriault                                                             
                                                                               
The MOTION FAILED (4-7).                                                       
                                                                               
DEPARTMENT OF ADMINISTRATION                                                   
                                                                               
Representative G. Davis MOVED to adopt ADMIN #1.  [Copy on                     
File].  Co-Chair Hanley OBJECTED for the purpose of                            
discussion.  He asked if the leases would be short funded.                     
Representative G. Davis noted that the leases had been                         
renegotiated, providing a FY98 savings.  He stated that the                    
amendment would bring the Division of Motor Vehicles (DMV)                     
$50 thousand dollars short of their initial request.                           
                                                                               
Co-Chair Hanley accounted a speech made by Governor Knowles                    
which suggested that by making drivers license renewal user                    
friendly, would eliminate approximately 220 thousand                           
transactions, saving the State money.  He requested a                          
schedule of the length of time referenced by the Governor                      
indicating that information.                                                   
                                                                               
ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF                               
ADMINISTRATION, replied that one of the problems with the                      
quoted calculation was that a most expensive transaction                       
was being compared to the least expensive transaction                          
change to the web environment.  A number of people use the                     
mailing system which continues to be more expensive than                       
the web technology.                                                            
                                                                               
Co-Chair Hanley suggested the Governor's speech was                            
misleading the public.  Ms. Elgee acknowledged that the                        
representation of that many people coming into the DMV                         
office is inaccurate, however, those offices are extremely                     
crowded.  Co-Chair Hanley noted his frustration with the                       
Governor's speech and requested information be provided                        
indicating the estimated savings.  Ms. Elgee responded that                    
an individual breakdown could be provided, however, it will                    
be more difficult to predict timing, as the Division is                        
attempting to change people's behavior by using the web                        
based environment.                                                             
                                                                               
JUANITA HENSLEY, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF                     
ADMINISTRATION, noted that the population of people in                         
Alaska purchasing cars has risen and unfortunately, those                      
individuals do not have any other option but to come into                      
the DMV office.  She pointed out that the Division has not                     
requested any increase for a number of years.                                  
                                                                               
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND                           
BUDGET, OFFICE OF THE GOVERNOR, advised that current                           
service at the DMV offices has been unacceptable to the                        
public.  The Governor did say that we could improve service                    
while achieving savings.  Co-Chair Hanley WITHDREW his                         
OBJECTION, and ADMIN #1 was adopted.                                           
                                                                               
Representative Kohring MOVED to adopt ADMIN #2.  [Copy on                      
File].  Representative G. Davis OBJECTED.  Representative                      
Kohring explained that the amendment would delete a portion                    
of public broadcasting.  He emphasized that government                         
should not be funding public television because in doing                       
so, it is competing with the private sector and that it is                     
not an essential service.                                                      
                                                                               
Representative G. Davis pointed out that the Subcommittee                      
did not support this amendment.                                                
                                                                               
(Tape Change HFC 98- 109, Side 1).                                             
                                                                               
Representative G. Davis explained that the cut would wipe                      
out services to Juneau, Fairbanks and Bethel; Anchorage                        
would be seriously impacted, where corporate donations are                     
located.  Representative G. Davis reiterated that this was                     
too drastic of a cut and that as Chair of the Subcommittee                     
he did not support the amendment.                                              
                                                                               
Representative J. Davies pointed out that public television                    
offers the advantages of distant learning for children.  It                    
is an appropriate public expense and is supported by the                       
general public.  Representative Moses recommended doubling                     
the amount currently given to public television.  He stated                    
that it is a very good educational tool and should be                          
utilized more.                                                                 
                                                                               
A roll call vote was taken on the motion.                                      
                                                                               
IN FAVOR:  Kohring, Martin, Mulder                                             
OPPOSED: Foster, Grussendorf, Kelly, Moses, J.                                 
Davies, G. Davis, Hanley, Therriault                                           
                                                                               
The MOTION FAILED (3-8).                                                       
                                                                               
Representative Grussendorf WITHDREW ADMIN #3.  [Copy on                        
File].  There being NO OBJECTION, it was withdrawn.                            
                                                                               
HB 325 and HB 326 were HELD in Committee for further                           
consideration.                                                                 

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