Legislature(2005 - 2006)HOUSE FINANCE 519
03/31/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | HB 66 | ||
| = | HB 67 | ||
| + | HB 122 | TELECONFERENCED | |
| + | HB 149 | TELECONFERENCED | |
| + | HB 156 | TELECONFERENCED | |
| + | HB 185 | TELECONFERENCED | |
HOUSE BILL NO. 66
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.
HOUSE BILL NO. 67
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.
1:46:00 PM
DEPARTMENT OF HEALTH & SOCIAL SERVICES
1:47:06 PM
Representative Croft MOVED to ADOPT HSS #10, which would add
a total of $1.169 million dollars to the Pioneer Homes from
various sources. Vice-Chair Stoltze OBJECTED. (Copy on
File).
Representative Croft explained that the Anchorage Pioneer
Home has 228 licensed beds of which 78 are not currently
occupied; there are 56 people on the active wait list for
the Anchorage Home. To make the vacant beds in the
Anchorage home available for Level II and Level III care,
some modest renovation would need to be done. The amendment
proposes to spend $269 thousand general fund dollars for
renovation and $300 thousand general fund dollars for
staffing. The amounts would bring in approximately $600
thousand dollars in Medicaid and client fees, which would
open up 15 beds.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Moses, Croft
OPPOSED: Hawker, Holm, Kelly, Stoltze, Weyhrauch,
Foster, Meyer, Chenault
The MOTION FAILED (3-8).
1:49:55 PM
Representative Croft MOVED to ADOPT HSS #11, which would
provide $500 thousand dollars to the Department for Senior
and Disability services. Co-Chair Chenault OBJECTED. (Copy
on File).
Representative Croft explained that the Community DD wait-
lists clients in a flexible and cost effective way through
non-profit organizations. Funds go to organizations such as
the Hope Cottages, Fairbanks Resource Agency, Maniilaq, and
Matsu Services for children and adults, including other
organizations.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Moses, Croft
OPPOSED: Hawker, Holm, Kelly, Stoltze, Weyhrauch,
Foster, Meyer, Chenault
The MOTION FAILED (3-8).
1:51:52 PM
DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT
Representative Foster MOVED to ADOPT LABOR #1, which would
add $400 thousand dollars to the Department for the
Northwestern Alaska Career and Technical Center. Co-Chair
Chenault OBJECTED. (Copy on File).
LARRY LABOLLE, STAFF, REPRESENTATIVE RICHARD FOSTER,
explained that the amendment would establish a new
allocation called the Northwestern Alaska Career and
Technical Center for student training and transportation
operations related to vocational career education.
Co-Chair Chenault WITHDREW his OBJECTION. There being NO
further OBJECTION, LABOR #1 was adopted.
Representative Croft MOVED to ADOPT LABOR #2, which would
add $150 thousand dollars to the Department for vocational
rehabilitation services. Co-Chair Chenault OBJECTED. (Copy
on File).
Representative Croft explained that the amendment would
provide funding for non-profit independent living centers
around Alaska by providing services that help Alaskans to
live independently in their communities, rather than in
nursing care facilities. Dollars to those services save the
State money, while ensuring that Alaskans are able to live
independently as possible in own homes.
Representative Weyhrauch agreed that the centers offer
critical services for helping people into the workforce and
to learn how to live independently. He advised that the
amendment had not come before the Subcommittee. The
Subcommittee removed money from the Alaska Jobs Initiative
and placed it into the Adult Basic Education, increasing
that by $150 thousand dollars. He noted the "good work"
done in that area and reluctantly opposed the amendment.
Participated on that Subcommittee. Representative Croft
WITHDREW LABOR #2.
1:58:37 PM
DEPARTMENT OF MILITARY & VETERANS AFFAIRS
Co-Chair Chenault MOVED to ADOPT DMVA #4, which would add
$50 thousand dollars to the Department for the National
Guard Military Headquarters. (Copy on File).
Representative Weyhrauch OBJECTED.
Co-Chair Chenault explained that the amendment would provide
financial assistance to families of the Alaska National
Guard while their family members are deployed.
JOHN CRAMER, DIRECTOR, ADMINISTRATION SERVICES DIVISION,
MILITARY AND VETERANS AFFAIRS, spoke to the amendment, which
will provide funding for family support services, noting
that during the time of deployments, there are added
stresses on the families.
Representative Weyhrauch acknowledged that the funding will
provide a token acknowledgement of support for the overseas
troops and WITHDREW his OBJECTION.
Representative Joule mentioned his concerns for those
military persons overseas ability making their mortgage
payments. He asked if the amount was sufficient.
Mr. Cramer acknowledged it would be difficult to determine
an adequate level of support for those family centers.
2:02:37 PM
Representative Joule inquired if it was intended that the
full amount go toward services. Mr. Cramer understood that
it would entirely go directly to support services.
Mr. Cramer responded to comments made by Vice-Chair Stoltze,
currently, there are approximately 220 National Guardsmen,
and it is anticipated that the number will increase to 300
within the year. Vice-Chair Stoltze acknowledged that there
will be a great upheaval to many lives because of the
deportation and that the funding might help with the stress
on those families.
Mr. Cramer pointed out that the centers will be open 24/7's,
providing valuable support to family members.
There being NO further OBJECTION, DMVA #4 was adopted.
2:06:08 PM
Representative Foster MOVED to ADOPT DMVA #5, deleting
$242.2 thousand dollars from the Department for the Local
Emergency Planning Committee. There being NO OBJECTION,
DMVA #5 was adopted. (Copy on File).
2:06:52 PM
DEPARTMENT OF NATURAL RESOURCES
Co-Chair Chenault MOVED to ADOPT DNR #4, creating a $78.9
thousand dollar funding change from Receipt Supported
Services (RSS). (Copy on File). Vice-Chair Stoltze
OBJECTED.
Co-Chair Chenault explained that per AS 37.05.144, program
receipts can be used only by that program generating those
receipts. The Department requests an allocation that does
not generate RSS. The amendment would exchange general
funds and RSS funds between allocations in order to meet the
requirement of AS 37.05.144. An amendment adopted 3/22/05,
failed to include a Public Employees Retirement System
(PERS) cost adjustment.
Vice-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, DMVA #4 was adopted.
DEPARTMENT OF NATURAL RESOURCES
2:08:29 PM
Co-Chair Chenault MOVED to ADOPT DNR #5, which would help
fund positions and associated costs addressing the backlog
experienced with selling land under the preferred right
leases, adding $106.7 thousand dollars. (Copy on File).
There being NO OBJECTION, DNR #5 was ADOPTED.
DEPARTMENT OF PUBLIC SAFETY
Co-Chair Chenault pointed out that DPS #3 had been
WITHDRAWN. (Copy on File).
Representative Joule added that he would WITHDRAW DPS #4.
(Copy on File).
ALASKA COURT SYSTEM
Representative Croft MOVED to ADOPT COURT #1, which would
add $165.3 thousand dollars to the Judicial Council.
Representative Stoltze OBJECTED. (Copy on File).
Representative Croft explained that the amount would restore
a decrement made at the subcommittee level to personal
services. Those employees are the ones that investigate
judicial applicants, poll bar members as to the applicants'
suitability for the bench, and provide staff support to the
volunteer Judicial Council. Without the funds, it is
possible that the Judicial Council would be unable to
fulfill their constitutionally mandated duties.
2:10:29 PM
Co-Chair Chenault advised that he had chaired that
subcommittee. He pointed out that the Judicial Council
consists of a seven member volunteer board. At present
time, there are seven employees for that seven-member board;
he thought that was excessive. He stated current funding is
sufficient.
Representative Croft pointed out that judicial vacancies are
happening at a higher rate over the past couple years,
through normal growth of the State. He commented that the
suggesting that a staffing ratio of 1-1 was excessive, look
at the legislative staffing ratios. He reiterated that the
board is a volunteer board and is expected to do the work.
The request is small.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Moses, Croft, Foster
OPPOSED: Kelly, Stoltze, Weyhrauch, Hawker, Holm,
Meyer, Chenault
The MOTION FAILED (4-7).
2:16:08 PM
UNIVERSITY OF ALASKA
Representative Weyhrauch MOVED to ADOPT UA #2A, adding
language addressing the Cooperative Extension Service Agent
position need. Vice-Chair Stoltze OBJECTED. (Copy on
File).
Representative Weyhrauch explained that the amendment would
insert new language to Page 34, Line 32: "It is the intent
of the Legislature that the University of Alaska, to fill
the Cooperative Extension Service Agent position
specializing in Land Resources and 4-H position in the
Northern Southeast section of Alaska.
Vice-Chair Stoltze WITHDREW his OBJECTION.
Representative Holm noted that the University's Cooperative
Extension Office had assured him that it was their intent to
fill that position.
There being NO further OBJECTION, UA #2 was adopted.
2:19:15 PM
LANGUAGE
Vice-Chair Stoltze MOVED to ADOPT LANG #2, inserting new
language. Representative Weyhrauch OBJECTED. (Copy on
File).
Vice-Chair Stoltze explained that the new section would add
language: "Notwithstanding any prior expenditure
authorization to the contrary, funds appropriated by this
Act, by another Act enacted by the First Session of the
Twenty forth Alaska State Legislature, or by another Act
enacted by a prior legislature may not be used towards the
cost of building a new capitol building in the current
capital site (AS44.06.010)."
A roll call vote was taken on the motion.
IN FAVOR: Moses, Stoltze, Hawker, Meyer, Chenault
OPPOSED: Kelly, Foster, Joule, Holm, Weyhrauch, Croft
The MOTION FAILED (5-6).
2:23:47 PM
Representative Joule MOVED to ADOPT LANG #3, which would add
a new Section 13, for the capital project matching grant
program; renumbering all following sections. Vice-Chair
Stoltze OBJECTED. (Copy on File).
Representative Joule explained that the statutory program
provides a mechanism for communities to establish priorities
for capital improvements and make application to the
Department for funding after demonstrating a required local
match. Grants are a minimum of $25 thousand
dollars/community with increased amounts allocated to
communities based on population according to a statutory
formula. Additional requirements prior to community
eligibility include:
· A preventative maintenance plan; and
· Proof that the community is adhering to the
preventative maintenance plan.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Weyhrauch, Croft, Joule
OPPOSED: Stoltze, Foster, Hawker, Holm, Kelly, Meyer,
Chenault
The MOTION FAILED (4-7).
2:27:15 PM
STATEWIDE
Representative Croft WITHDREW STATEWIDE #1. (Copy on File).
Representative Croft MOVED to ADOPT STATEWIDE #2, which
would delete $5.845 million dollars in Permanent Fund
spending in the budget. (Copy on File).
2:27:27 PM
Co-Chair Chenault OBJECTED.
Representative Croft reiterated that the amendment deletes
$5.85 million dollars in Permanent Fund spending in the
budget. That is everything except for the Public Assistance
'hold harmless' money, the Permanent Fund Corporation
operating costs and the permanent fund dividend.
Representative Croft added a conceptual amendment to
STATEWIDE #2 to guarantee that the agencies listed be
replaced by general funds.
A roll call vote was taken on the motion.
IN FAVOR: Stoltze, Croft
OPPOSED: Weyhrauch, Foster, Hawker, Holm, Joule,
Kelly, Moses, Meyer, Chenault
The MOTION FAILED (2-9).
2:29:22 PM
Representative Croft MOVED to ADOPT STATEWIDE #3. Co-Chair
Chenault OBJECTED. (Copy on File).
Representative Croft explained that the amendment would cut
$49 million dollars from the Executive Branch of government
to be implemented at the discretion of the governor. From
the FY-5 Management Plan to the House Committee Substitute
(CASH) for FY06, education funding grew at a rate of 9.6%;
over the same period of time, the operating budget without
including education and grew at a rate of 12.7%. The
amendment would cap general fund growth in the operating
budget to the same percentage as the growth of K-12 funding.
He provided figures from Legislative Finance Division.
Representative Hawker commented that the argument had a
"logical flaw". If comparing the management plan from FY05
to the committee substitute from FY06, it does not reflect
the FY05 supplemental budget. The true FY05 budget is in
excess of the management plan and would correspond to
lowering the rate of growth in the non-education budget. He
maintained that what was being presented was not an accurate
reflection. The largest component of growth in the FY06
budget is Medicaid costs and those other costs in that
budget. Representative Hawker opposed the amendment.
Representative Weyhrauch agreed with the approach but would
not support the amendment.
Co-Chair Chenault noted concern giving appropriation
authority to the Administration and questioned the
amendment's intent. He stated that he would be a no vote on
the proposed amendment.
Representative Croft summarized that they were correct
numbers and that the supplemental funding would change some
of the amounts. He questioned if the proposed budget was
defensible. The provided numbers come from the Division of
Legislative Finance. He acknowledged it was adding $2
million dollars to the operating budget while cutting the
municipal education budget.
A roll call vote was taken on the motion.
IN FAVOR: Croft, Moses
OPPOSED: Weyhrauch, Foster, Hawker, Holm, Joule,
Kelly, Stoltze, Meyer, Chenault
The MOTION FAILED (2-9).
2:39:20 PM
Representative Croft WITHDREW STATEWIDE #4. (Copy on File).
AT EASE: 2:39:57 PM
RECONVENE:3:23:51 PM
DEPARTMENT OF CORRECTIONS
Representative Joule requested that COR #1 be WITHDRAWN.
(Copy on File).
3:24:51 PM
LANGUAGE
Representative Holm MOVED to RESCIND previous action taken
on the failure to adopt LANGUAGE #2. (Copy on File).
Representative Weyhrauch OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Hawker, Holm, Kelly, Moses, Stoltze, Meyer,
Chenault
OPPOSED: Foster, Joule, Weyhrauch
Representative Croft was not present for the vote.
The MOTION FAILED (7-3).
Co-Chair Chenault noted the amendment was currently before
the Committee. He asked if there was objection to LANGUAGE
#2. Representative Weyhrauch OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Hawker, Holm, Kelly, Moses, Stoltze, Meyer,
Chenault
OPPOSED: Foster, Joule, Weyhrauch, Croft
The MOTION PASSED (7-4).
3:28:01 PM
DEPARTMENT OF ADMINISTRATION
Representative Holm MOVED to ADOPT DOA #7, which will delete
$254,300 dollars from Public Broadcasting. (Copy on File).
Representative Joule OBJECTED.
Representative Holm clarified that the amendment would
reduce the State of Alaska general fund grant to $500
thousand dollars for public television services. He
observed that they had received $4 million dollars in
federal funds for digital programming and will receive
another $2 million dollars in FY06. Digital programming
should present a large savings and that their overall budget
has increased in membership and federal funding. He
maintained that public broadcasting should be "weaned off of
State funding".
BILL LEGERE, GENERAL MANAGER, KTOO, JUNEAU, emphasized that
the State funds support direct operations and that the
federal funds would be reduced. The stations affected are
Expenses have increased as a result of the change to digital
programming. The proposed cut could force one of the four
stations off the air.
3:32:31 PM
Representative Holm referred to some financial statements
from the Alaska Public Broadcasting Association (APBA). Mr.
Legere pointed out that the financial figures referenced in
the statements do not go to any of the stations that would
be cut. Currently, there are 30 organizations in Alaska.
All the referenced funds are earmarked for spending for
specific projects and are not retained earnings.
In response to queries by Representative Joule, Mr. Legere
noted that the there has been level funding since 2000. The
large State cuts were first experienced in the mid 1990's.
He pointed out that KTOO's budget is currently at par to
what it was in 1994.
Representative Joule recalled earlier cuts to public
broadcasting and noted the efforts behind successful
broadcasting fund drives. He stressed that Alaskans support
public broadcasting.
3:36:56 PM
Representative Croft spoke against the amendment,
emphasizing the importance of public television. The
reduction is dramatic.
Representative Holm acknowledged that public broadcasting is
a fine institution; however, pointed out other and more
important areas for the State to fiscally support.
Co-Chair Meyer commented that the amendment would only
pertain to television. He thought that public television,
in the light of Internet options, is not as important as it
was 20-years ago. Representative Holm agreed and observed
that programming is available though satellite television.
A roll call vote was taken on the motion.
IN FAVOR: Hawker, Holm, Kelly, Stoltze, Chenault, Meyer
OPPOSED: Joule, Moses, Weyrauch, Croft, Foster
The MOTION PASSED (6-5).
3:42:11 PM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Representative Joule WITHDREW COM #6. (Copy on File).
Representative Kelly MOVED to ADOPT COM #7, which would
boost the PCE program's expenditure authorization to $18.7
million dollars. Traditional funding was $15.7 million
dollars. (Copy on File). There being NO OBJECTION, it was
adopted.
3:43:02 PM
DEPARTMENT OF FISH & GAME
Representative Joule MOVED to ADOPT F&G #4, adding $650
thousand dollars for State subsistence. Representative Holm
OBJECTED. (Copy on File).
Representative Joule spoke in support of the amendment. He
noted that the request was made up of two parts; $250
thousand dollars for maintaining the program at the FY05
operating level and a $400 thousand dollar increment
requested by the Governor to allow the program to focus on
current research, updating databases important for providing
information to subsistence management and other hunting and
fishing opportunities. Without the $250 thousand dollars to
maintain the existing program, the subsistence staff will no
longer be able to continue the mediation role that they have
often played between subsistence users and other related
individuals on matters before the Board of Fish and Game.
The position that serves the North Slope Region is likely to
be eliminated which could impede the completion of EIS
studies for future oil and gas development.
Representative Holm spoke against the amendment. He noted
that the determination that had been made in the
Subcommittee was that it was a socio-economic portion of
data collection for the Department and would not be
beneficial to the Board of Fish and Game. He maintained
that data had been based on the use of game species, taken
from areas in which the respondents had a stake in the
response.
3:48:29 PM
WAYNE REGELIN, ACTING COMMISSIONER, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF FISH AND GAME, noted that both
the Board of Fish and Board of Game have sent letters in
support of the appropriation. Both boards must determine if
a species has customary and traditional use for subsistence.
Those board's must also determine the amount used in order
to decide the level of need. He stressed that the entire
program could be in serious jeopardy without the program.
The Division works on a 10-year cycle.
Mr. Regelin disagreed with assessments that data was
unnecessary. He emphasized the quality of the data
collected. The increment will maintain a 10-year cycle.
3:53:37 PM
Representative Joule questioned what would happen without
the support, regaining State control of subsistence. Mr.
Regelin noted that if the State system continues to get
smaller, it would most likely loose the status of a
"division" because the system cannot work without someone
collecting that data. He estimated that the federal system
would then become more entrenched. Data collected by the
Subsistence Division helps to keep the federal program
honest.
3:55:56 PM
In response to a question by Representative Croft, Mr.
Regelin estimated that there would be more court challenges
without the data collection.
Representative Croft concluded that in the absence of data,
the federal government would error toward more subsistence.
He argued that sport hunters also would lose without the
collected data.
Representative Kelly pointed out that the data being
discussed was not "hard biology". He maintained that the
whole system is not based on those facts.
3:59:44 PM
In response to a question by Vice-Chair Stoltze, Mr. Regelin
recalled that there are 37 full time employees around the
State. Seasonal employees are hired to collect data.
Representative Holm clarified that there are 28 permanent
full-time, 9 permanent part-time, and 47 seasonal employees.
Mr. Regelin stressed the need for social science to
accompany hard science.
A roll call vote was taken on the motion.
IN FAVOR: Joule, Moses, Croft, Foster
OPPOSED: Kelly, Stoltze, Hawker, Holm, Chenault, Meyer
Representative Weyhrauch was absent from the vote.
The MOTION FAILED (4-6).
DEPARTMENT OF LAW
Representative Croft WITHDREW LAW #1. (Copy on File).
4:03:36 PM
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
Co-Chair Chenault MOVED to ADOPT DOT #1, which would add
funding to the Highways, Aviation & Facilities component.
(Copy on File). Representative Croft OBJECTED.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained that the amendment would cover the utility and
fuel cost increases for operations and maintenance for the
Department. The Subcommittee did not consider this
amendment. Higher fuel prices and utility costs incurred
during FY05 and are expected to continue into FY06. If the
request is denied, building temperatures, janitorial
services and snow hauling would be reduced, snow plowing and
building maintenance tasks delayed, safety training sessions
reduced and if needed, staff laid off.
Representative Croft WITHDREW his OBJECTION. There being NO
further OBJECTION, DOT #1 was adopted.
4:06:02 PM
UNIVERSITY OF ALASKA
Representative Weyhrauch WITHDREW UA #3. (Copy on File).
Representative Weyrauch MOVED to ADOPT UA #4, which would
add $22.639 thousand dollars to the University. (Copy on
File). Representative Croft OBJECTED for further
explanation.
PAT PITNEY, BUDGET DIRECTOR, UNIVERSITY OF ALASKA, commented
that the amendment would increase the FY06 operating
appropriation to the University of Alaska by a total of
$22.639 thousand dollars, which is the amount originally
included in Section 37(a) of HB 67 for the following
proposed maintenance level operating items:
· Salary maintenance;
· Operating & extraordinary fixed costs;
· Risk management/insurance fees;
· Network bandwidth;
· Maintenance & repair & new facility operating
costs;
· Additional student demand in existing programs;
· Continued expansion of AAS Nursing at three sites;
and
· The behavioral health program partnership.
He concluded that combined with the $3.44 million general
fund dollars currently in the bill, the amendment brings
UA's general fund increase to $11.934 million dollars - the
amount requested by UA (excluding retirement) and the
portion included in the Governor's original budget
(excluding retirement).
Representative Croft WITHDREW his OBJECTION. There being NO
further OBJECTION, UA #4 was adopted.
4:09:31 PM
DEPARTMENT OF FISH AND GAME
Co-Chair Chenault MOVED to ADOPT F&G #5, which would add
$250 thousand dollars to State Subsistence. (Copy on File).
There being NO OBJECTION, F&G #5 was adopted.
Representative Foster MOVED to give the Legislative Finance
Division authority to make any necessary technical changes
to conform the adopted amendments into the bill. There
being NO OBJECTION, it was so ordered.
HB 66 & 67 was HELD in Committee for further consideration.
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