Legislature(2005 - 2006)
03/23/2006 02:51 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HB366 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 365
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. 365
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. 366
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.
AMENDMENTS
Department of Environmental Conservation - (no amendments)
Department of Fish and Game
Legislature
Office of the Governor - (no amendments)
Department of Health & Social Services
Department of Law
DEPARTMENT OF LAW
Co-Chair Chenault MOVED to ADOPT Law #3. Representative
Hawker OBJECTED.
REPRESENTATIVE JOHN HARRIS, SPEAKER OF THE HOUSE, stated
that LAW #3 was a request from the City of Valdez for a
district attorney and that he was working with the
Department of Law to address these concerns. He
acknowledged the request was large, including about three
positions.
DEAN GUANELI, CHIEF ASSISTANT ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, advised there are a number of
district attorney offices across Alaska and that almost all
of those offices are required to cover court proceedings in
surrounding areas. Some areas do not have a district
attorney.
2:55:42 PM
Mr. Guaneli pointed out that a number of communities of
comparable size, actually have larger caseloads than those
in Valdez. Placement of district attorneys is actually
driven by caseload. He noted the office that covers Valdez
is located in Palmer.
Co-Chair Chenault understood that the Department was
adequately staffed in the Valdez area and was not requesting
the funding with the amendment. Mr. Guaneli said correct.
Representative Hawker MAINTAINDED his OBJECTION. Co-Chair
Chenault WITHDREW LAW #3.
2:58:19 PM
DEPARTMENT OF FISH AND GAME
Representative Holm MOVED to ADOPT F&G #1, which would add
$250 thousand general fund dollars to the Hunter Education
Public Shooting Ranges, 1004 General Fund and delete the
amount from the same appropriation component, funding source
1023 Fish and Game Fund. There being NO OBJECTION, F&G #1
was adopted.
Representative Holm MOVED to ADOPT F&G #2. Representative
Hawker OBJECTED for clarification.
Representative Holm explained that the amendment would add
$200 thousand 1018 EVOS Trust dollars to Commercial
Fisheries. The fund shift would allow for the dogfish
research/studies in Price William Sound area.
Representative Hawker WITHDREW his OBJECTION. There being
NO further OBJECTION, F&G #2 was adopted.
3:01:03 PM
Representative Moses MOVED to ADOPT F&G #3. Representative
Kerttula OBJECTED for clarification.
Representative Moses explained that the amendment would
delete Intent L regarding Southeast Dive Fisheries. The
draft House committee substitute deleted the $150 thousand
dollar increment to the Governor's budget by the
subcommittee for SE Dive Fisheries but left in the intent
language that accompanied that increment. If the Department
honored the intent language without receiving additional
funding for that purpose, other core programs of the
Commercial Fisheries Division would have to be cut. The
amendment simply deletes the intent language regarding the
SE Dive Fisheries.
Representative Kerttula WITHDREW her OBJECTION. There being
NO further OBJECTION, F&G #3 was adopted.
3:02:05 PM
Co-Chair Chenault MOVED to ADOPT F&G #4. Vice Chair Stoltze
OBJECTED.
SHARON KELLY, STAFF, REPRESENTATIVE MIKE CHENAULT, explained
that the amendment would restore funding sources and amounts
as reflected in the Governor's version of the FY07 adjusted
base. General fund increments were requested for FY07
salary adjustments when increased revenue from the other
funding sources was not likely. In the Governor's operating
budget request, other funding source base adjustments were
requested. Without the amendment, the Division will have to
absorb costs, which will cause reductions to programs, staff
and services.
· Eliminate the Chilkoot River sockeye weir and reduce
staff attendance at Fish and Game Advisory Committee
meetings in the Southeast Region;
· Eliminate the Central region's aquaculture/mari-culture
permitting and planning functions and reduce the
Central region's public information office
capabilities;
· Reduce Kuskokwin and Yukon Delta Herring biomass and
fishery monitoring surveys by approximately half,
reduce the AYK region's public information office
capabilities, and reduce Yukon summer salmon
monitoring;
· Eliminate the Chignik River sockeye salmon smelt and
stock composition projects, rescue the Westward
region's marine fisheries research staff, and reduce
staff attendance at Fish and Game Advisory Committee
and other public meetings; or
· Use the $400.0 General Fund increment approved by the
House Fish and Game Finance subcommittee to restore
State funding to Southeast salmon management
biologists, and $22.2 thousand dollars out of the $300
thousand dollars CFEC Receipts increment to increase
salmon stock assessment projects in the Central Region
to cover the reduction.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, F&G #4 was adopted.
3:04:00 PM
Co-Chair Chenault MOVED to ADOPT F&G #5. Representative
Holm OBJECTED. The amendment would add $391.4 thousand
general fund dollars, deleting the same amount of federal
receipt dollars for wildlife conservation; additionally, it
would add $35.1 thousand general fund dollars and delete the
same amount of inter agency receipt dollars for wildlife
conservation special projects.
Ms. Kelly explained that the amendment would be used to
restore funding sources and amounts as reflected in the
Governor's version of the FY07 adjusted base. General fund
increments were requested for unavoidable FY07 salary
adjustments when increasing revenue from the other funding
sources could not be realized. In the Governor's operating
budget request, other funding source base adjustments are
requested when they are expected to obtain increased
revenue. It would be an adjustment to salaries.
Ms. Kelly continued, without the amendment, the Division of
Wildlife Conservation would have to absorb personnel cost
increases for Public Employee Retirement System (PERS) and
bargaining unit contracts from existing programs. The
Division does not anticipate that other funding sources
would realize the necessary revenue to pay the unavoidable
increased costs for existing positions. The action would
force reductions to the frequency of field surveys for big
game species and hunting opportunities for Alaskans.
Representative Holm WITHDREW his OBJECTION. There being NO
further OBJECTION, F&G #5 was adopted.
3:04:54 PM
Co-Chair Chenault MOVED to ADOPT F&G #6, which would add
$174.4 thousand general fund dollars and delete $7.1
thousand CIP receipts, $8.5 EVOS Trust dollars & $158.0 I/A
receipt dollars for Administration services, administration
& support for the Department. Representative Holm OBJECTED.
Ms. Kelly explained that the amendment restores funding
sources and amounts as reflected in the Governor's version
of the FY07 adjusted base. General fund increments are
requested for FY07 salary adjustments when increased revenue
from the other funding sources is not anticipated. In the
Governor's operating budget request, other funding source
base adjustments are requested when likely to obtain
increased funding. Without the amendment, the Division
would have to absorb the costs, which would cause various
reductions to programs, staff and services.
Representative Holm interjected that F&G #4, #5 & #6,
"perverts the legislative and subcommittee process". With
his comments on record, Representative Holm WITHDREW his
OBJECTION. There being NO further OBJECTION, F&G #6 was
adopted.
3:06:31 PM
Representative Moses MOVED to ADOPT F&G #7, which would add
$278 thousand general fund dollars, deleting the same amount
for Headquarters Fisheries Management, Commercial Fisheries
appropriation. Co-Chair Chenault OBJECTED.
Representative Moses pointed out that the amendment would
change the funding source for the Extended Jurisdiction
section. That area provides data and policy analyses needed
for State participation in the North Pacific Fishery
Management Council and other federal fishery arenas.
Funding for that area has been federal, but the funding fell
short.
Co-Chair Chenault commented that the Division had adequate
funding to accomplish the necessary tasks of the Department.
3:08:22 PM
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses
OPPOSED: Weyhrauch, Foster, Hawker, Holm, Kelly,
Stoltze, Meyer, Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (2-8).
3:09:18 PM
Representative Moses MOVED to ADOPT F&G #8, which would add
$300 thousand general fund dollars to the Commercial
Fisheries Special Projects. Co-Chair Chenault OBJECTED.
Representative Moses noted that the amendment would restore
the ground fish/shellfish project increment to the requested
level. The funding would provide biometric support for
survey design and data analysis in various shellfish
programs, shrimp stock assessments, and biological sampling
in the red sea urchin fishery. It would fund:
· Shrimp stock assessments in Prince William Sound, Cook
Inlet & the Westward Region;
· Biological catch sampling, data analysis and population
assessment for crab species in Southeast Alaska; and
· Fund a trawl survey for the Norton Sound Red King Crab
fishery, the most valuable fishery north of the Yukon
River.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses
OPPOSED: Weyhrauch, Foster, Hawker, Holm, Kelly,
Stoltze, Meyer, Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (2-8).
3:11:25 PM
Representative Moses MOVED to ADOPT F&G #9, which would add
$150 thousand general fund dollars, deleting the same amount
in federal funds for the Commercial Fisheries Special
Project Management. Co-Chair Chenault OBJECTED.
Representative Moses explained that the amendment would
restore and increment to the $300 thousand dollar level
requested in the Governor's budget for Bristol Bay Science &
Education Initiative & restore authorization for 3 Petroleum
Production Tax (PPT) staff.
Representative Hawker questioned if the amount had been
taken care of through F&G #4. Co-Chair Chenault thought
that was so.
Co-Chair Chenault commented that the Committee was charged
with the issue to control the budget. Representative Holm
interjected that there are other funds that could be used to
do address the concern. Co-Chair Chenault requested
Representative Holm and Representative Moses work together
to address the concern.
F&G #9 was HELD for further consideration.
3:13:15 PM
Representative Moses WITHDREW F&G #10.
3:13:56 PM
Representative Kerttula MOVED to ADOPT F&G #11, which would
add $200 thousand general fund dollars to the Commercial
Fisheries Special Projects-Southeast Region. Co-Chair
Chenault OBJECTED.
Representative Kerttula added that F&G #4 took care of part
of the amendment and would restore Southeast Region salmon
stock assessment increment at the level in the Governor's
budget. F&G #11 specific projects include the Chilkat River
mark and recapture studies, increased aerial surveys,
reinstatement of weirs previously eliminated due to reduced
funding, and increased seasonal duration of weir operation
that has been reduced due to reduction in funding.
Representative Kerttula MOVED to AMEND F&G #11, reducing the
amount by $27.4 thousand dollars, making the total request
in the amount of $172.6 thousand general fund dollars.
There being NO OBJECTION, the amendment was amended.
DENBY LLOYD, DIRECTOR, DIVISION OF COMMERCIAL FISHERIES,
DEPARTMENT OF FISH AND GAME, commented that the amendment
would provide funds to replace aerial surveys in Southeast
Alaska for the salmon assessment program. Additionally, it
would help restore the Chilkat River fish wheel project
providing a full estimate of sockeye salmon abundance, which
is integral to the management of the northern Southeast
fisheries.
Representative Holm pointed out a substantial budget
increase over the past four years to that component.
Representative Hawker inquired if the request was creating a
new area. Mr. Lloyd stated there was one single special
project included in the budget & for clarification purposes,
the Department identified that increment in the Governor's
budget component, as divided by region.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses
OPPOSED: Weyhrauch, Foster, Hawker, Holm, Kelly,
Stoltze, Meyer, Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (2-8).
3:19:12 PM
Representative Moses WITHDREW F&G #12.
3:19:35 PM
Representative Moses MOVED to ADOPT F&G #13, which would add
$400.0 thousand general fund dollars to the Westward Region,
Commercial Fisheries, deleting that amount from the federal
receipts, and deleting the unrealizable federal receipt
authority from the Department's budget. Vice Chair Stoltze
OBJECTED.
Representative Moses stressed that F&G #13 is important, as
it allows the Department to conduct critically important
aerial surveys, reinstate weirs previously eliminated due to
reduced funding and increase seasonal duration of weir
operations in areas where duration has been reduced due to
funding reductions.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses, Foster
OPPOSED: Weyhrauch, Hawker, Holm, Kelly, Stoltze,
Meyer, Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (3-7).
Representative Moses WITHDREW F&G #14.
3:22:22 PM
Representative Holm MOVED to ADOPT F&G #15, which would add
$70 thousand 1007 inter agency receipts to Sport Fisheries
Habitat. Vice Chair Stoltze OBJECTED.
Representative Holm stated that implementation of the
amendment would be used for RS2477 navigability and access
defense.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTIONS, F&G #15 was adopted.
3:23:10 PM
Representative Holm MOVED to ADOPT F&G #16, which would add
$704.1 thousand 1024 Fish & Game Funds to Sport Fisheries,
while deleting $100 thousand Sport Fish Enterprise Account
dollars and $604.1 thousand general fund dollars.
Representative Kerttula OBJECTED for further clarification.
Representative Holm explained that the amendment would
replace general fund and Sport Fish Enterprise Account funds
with Fish & Game Funds. The Sport Fish Division has a $5.7
million dollar balance that can be utilized prior to
expending general funds. The highest priority for general
fund spending within the Department is in the Wildlife
Conservation Division, which has a negative balance. The
change would force the Department and the Wildlife
Conservation Division to operate Hunter Education Public
Shooting Ranges at increased capacities and without reliance
on decreasing the hunting license fee receipts within the
Fish and Game Fund.
JIM DIERINGER, STAFF, REPRESENTATIVE JIM HOLM, added that
the funding had been requested by the Sports Division,
requesting general fund dollars. The money used for the
shooting range is a general fund increment, not requested by
the Governor.
Representative Kerttula did not understand, questioning what
would be received for the shooting ranges. Mr. Derringer
explained that the $250 thousand dollar amendment previously
adopted would be a general fund increment to the shooting
ranges. Sport Fish had a balance left from last year; the
subcommittee thought it was appropriate to move the funds.
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
FISH AND GAME, understood that the amendment would back out
monies from the House Finance Committee (HFC) substitute to
deal with the "unrealized" federal funds. The amendment
would back-out general fund dollars and replace that
authorization. He believed it would "un-do" what was
requested.
3:28:16 PM
A roll call vote was taken on the motion.
IN FAVOR: Kelly, Foster, Hawker, Holm, Chenault, Meyer
OPPOSED: Kerttula, Moses, Stoltze, Weyhrauch
Representative Joule was not present for the vote.
The MOTION PASSED (6-4).
3:29:43 PM
LEGISLATURE
Representative Weyhrauch MOVED to ADOPT LEGIS #2, which
would add $70 thousand interagency receipt dollars for
Legislative Budget and Audit (LBA) component. There being
NO OBJECTION, the amendment was adopted.
3:30:21 PM
DEPARTMENT OF HEALTH & SOCIAL SERVICES
*Representative Hawker MOVED to ADOPT HSS #1, which adds
$1.5 million general fund dollars and $2,152.0 million
federal fund dollars to the Developmental Disabilities (DD)
Medicaid waiver for seniors and Disabilities Medicaid
Services; it would also delete $1.500 million general fund
dollars from the disproportionate share hospital
authorization, Medicaid Services. Vice Chair Stoltze
OBJECTED.
Representative Hawker explained that the amendment would
complete funding the DD waitlisted needs identified by the
Governor's Council on Disabilities & Special Education; it
incorporates recommendations of the Ad Hoc Committee on the
Developmental Disabilities waitlist. The balance of the
appropriation for the Disproportionate Share Hospital
Authorization upon passage of the amendment would be
$3.223.1 million general fund dollars and $4.954.4 million
federal dollars.
3:34:02 PM
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, HSS #1 was adopted.
3:34:51 PM
LEGISLATURE
Vice Chair Stoltze MOVED to RESCIND previous action taken on
adopting LEGIS #2. There being NO OBJECTION, previous
action was rescinded. Then Representative Weyhrauch
OBJECTED.
Mr. Derringer explained that it would provide clarification
as there had been a typing error.
Representative Weyhrauch WITHDREW his OBJECTION. There
being NO further OBJECTION, LEGIS #2 was adopted as amended.
3:37:24 PM
DEPARTMENT OF HEALTH & SOCIAL SERVICES
Representative Hawker MOVED to ADOPT HSS #2, which would
delete $1,990.2 million general fund dollars from Medicaid
Services in the Health Care Services component. Vice Chair
Stoltze OBJECTED.
Representative Hawker explained that the change resulted
from a reduction to the Medicare Part D clawback. The
Centers for Medicaid and Medicare Services (CMS) recently
revised downward the per capita Medicare Part D clawback
phase-down payment from $145.32 (budgeted) to $119.57
million dollars. The payment was reduced because the
inflation rate used for the calculation changed. The amount
of general fund match needed by the Department dropped from
$4,360.0 to $2,369.8 million dollars.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, HSS #2 was adopted.
3:38:57 PM
Representative Holm MOVED to ADOPT HSS #3, which would add
$1,700.0 million 1004 general funds dollars to Human
Services Community Matching Grants. Representative Hawker
OBJECTED.
Representative Holm noted that it would restore the Human
Services matching grant to previous levels, funding the
Governor's request, leveraged six times @ $12 million
dollars. He pointed out that there are 12 worthy agencies
who use those funds.
Representative Hawker responded that the matching grant
component had been an issue every year. It is a program
that gives block grants to the municipalities and does not
provide services outside other areas of the State. The
block grant program is divided among Alaskan communities.
The program has been level funded for the past few years and
monies were added last year, holding harmless Matsu and
Fairbanks. He acknowledged that the Governor had requested
the program increment. The subcommittee maintained the base
funding and that nothing more had been replaced. It is
difficult to allocate general fund money to accomplish the
greatest good for State services; funding is a matter of
prioritizing. He maintained that policy direction toward
social service issues should be the community's
responsibility.
Representative Holm respected those comments, but maintained
the need.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses, Foster, Holm
OPPOSED: Kelly, Stoltze, Weyhrauch, Hawker, Meyer,
Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (4-6).
3:45:26 PM
Representative Holm MOVED to ADOPT HSS #4, which would add
$125 thousand Mental Health Trust (MHTAAR) dollars & $125
thousand dollars to Flexible Long Term Care Services, the
Home and Community Base Care component. Representative
Hawker OBJECTED.
Representative Hawker advised that the request had been
brought forward after the subcommittee had completed their
work. He acknowledged the Legislature's continued need to
address the "unrelenting demand for senior services now and
into the upcoming future".
Representative Hawker MOVED to AMEND, changing Home and C
Based Care to Senior & Community based grants. There being
NO OBJECTION, HSS #4 was amended.
Representative Hawker WITHDREW his OBJECTION to the amended
HSS #4. There being NO further OBJECTION, HSS #4 was
adopted as amended.
3:49:24 PM
Representative Kerttula MOVED to ADOPT HSS #5, which would
add $5 million general fund dollars and $1 million TANF
dollars to Community Action Prevention & Intervention Grants
component. Representative Kelly OBJECTED.
Representative Kerttula stated that the program would impact
youth in Alaska who are at risk of substance abuse, suicide
or adopting criminal behavior through providing
alternatives, productive activities, good role models and
appropriate mentors.
Co-Chair Meyer noted he serves on the Boys and Girls Club of
Anchorage, which has proven to help youth at-risk statewide.
Representative Hawker argued that the request creates a new
program with an annual investment of $6 million general fund
dollars. He recommended instead, a competitive grants
program. He added that the proposed initiatives were about
services to help parents. He urged that specific programs
be targeted, including basic parenting skills. He urged
that the amendment not be adopted.
3:56:49 PM
Vice Chair Stoltze commented on his financial support of the
Mat-Su Boys and Girls Club, adding that he could not second
guess the work of the subcommittee or those budget
decisions.
3:58:18 PM
Representative Weyhrauch discussed the process, stipulating
that his "no vote" would not reflect the end of the request
process for the FY07 budget.
Representative Kerttula echoed sentiments voiced by
Representative Hawker, regarding the need to leverage
federal funds; however, experience indicates that such funds
are competitive and that they do end up leveraging money.
She referenced past dollars well spent through the Big
Brothers, Big Sisters programs. She added her comments
regarding parenting services, pointing out that some are
families who work hard and just need a little help. With
that help, those kids could make it.
4:02:40 PM
Representative Kelly maintained his objection, commenting
that the State cannot sustain the type of increases.
Representative Kerttula maintained that the programs are
successful.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses, Foster, Meyer
OPPOSED: Stoltze, Weyhrauch, Hawker, Holm, Kelly,
Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (4-6).
4:05:06 PM
Representative Kerttula MOVED to ADOPT HSS #6, which would
add $1.096 million general fund dollars to the Alaska Fetal
Alcohol Syndrome Program, Behavioral Health. Representative
Hawker OBJECTED.
Representative Kerttula explained that continuation of a
targeted effort at identification, training, and service
development for individuals with Fetal Alcohol Syndrome
Disorder (FASD) is necessary to minimize the number of
children born with FASD and for those individuals
experiencing some disability as a result of FASD, maximizing
success at living independent, productive lives. Funds
proposed for FY2007 would be used specifically to:
· Develop/provide adult diagnostic services;
· Job-training & coaching for youth & adults with FASD;
· In-state residential treatment options for children &
youth with FASD; and
· Statewide prevention messaging & educating Alaska about
the dangers of drinking alcohol during pregnancy.
Representative Kerttula urged support for the amendment.
Representative Hawker countered that FASD was the
beneficiary of $5 million federal dollars for those efforts.
He encouraged that FASD be addressed through a larger policy
arena and that "throwing money at it" has not demonstrated
success.
Representative Kerttula asked about the number of teams
working on this issue statewide and what they had
accomplished.
ANGELA SOLARNO, ADVISORY BOARD FOR ALCOHOLISM AND DRUG
ABUSE, noted that there are 12 diagnostic teams serving the
State. They serve a variety of populations - children and
adults.
Representative Kerttula asked what teams do when addressing
those persons diagnosed with FASD. Ms. Solarno explained
that a diagnosis of FAS is rather difficult and that it
would be a functional assessment. After they are diagnosed,
the recipient is then available to receive the type of
treatment they need. They can become somewhat independent;
otherwise, they become added costs to the State system.
Representative Kelly acknowledged that it takes a multiple
system approach. He talked about stigmatizing the abusers
[mothers] and the need for them to share in the blame. He
emphasized the harsh realities of FAS. He did not think
money could solve the problem.
Representative Kerttula voiced support of continued
education; she stressed that the condition is controllable
and agreed, it is a "terrible crime".
A roll call vote was taken on the motion.
IN FAVOR: Moses, Foster, Kerttula
OPPOSED: Weyhrauch, Hawker, Holm, Kelly, Meyer,
Chenault
Representative Stoltze & Representative Joule were not
present for the vote.
The MOTION FAILED (3-6).
4:15:37 PM
Representative Kerttula MOVED to ADOPT HSS #7, which would
add $300 thousand general fund/mental health dollars to
behavioral health grants. Representative Hawker OBJECTED.
Representative Kerttula spoke to the amendment. Funding
additional social detox beds in Anchorage would provide
treatment services to 300-600 people annually. She pointed
out that substance abuse professionals have testified that
social detox beds are desperately needed throughout
Anchorage. Alcohol abuse requires early intervention and
prevention services to reduce the negative outcomes of
alcohol such as domestic violence, child abuse crime and
health problems. Funding for the program would cover
expenses needed for room, board and rehabilitation services
associated with clients who are in intoxicated states at the
time of admission. The program emphasizes the development
of personal skills needed for sober and drug free living.
Additional social detox beds could reduce the burden and
wait list for more costly medical detox beds.
Representative Hawker maintained his objection and related
information regarding the social-detox "soft approach". He
proposed that there be greater coordinated program systems.
4:19:18 PM
Vice Chair Stoltze inquired if the amendment was intended to
be added to the Mental Health Budget. Representative
Kerttula said it was.
Co-Chair Meyer asked for clarification regarding which
budget the amendment would be taken from.
SHARON KELLY, STAFF, CO-CHAIR CHENAULT, commented it was
okay to proceed as both bills were currently under
consideration.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses
OPPOSED: Stoltze, Weyhrauch, Foster, Hawker, Holm,
Kelly, Meyer, Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (2-8).
4:22:55 PM
Representative Kerttula MOVED to ADOPT HSS #8.
Representative Hawker OBJECTED. Representative Kerttula
preceded to AMEND HSS #8, adding to the appropriation line
Public Assistance and allocation to Public Assistance
Administration rather than Behavior Health Grants. Also,
the funding Source would be the TANF Federal Bonus funding.
Representative Kerttula addressed Amendment 8 as amended,
explaining that the Governor had proposed $3 million in
funding for community-based services, programs and practices
focused on prevention of underage alcohol use. Substance
abuse prevention funding is critical to Alaska's future &
that underage alcohol use is a significant problem
throughout Alaska. Preventing teen alcohol abuse would save
considerable money in the long-term areas of traffic crash,
criminal justice, productivity losses, health care and
public assistance.
4:24:31 PM
Representative Hawker questioned if the amendment to the HSS
#8 restored the reduction made by the subcommittee to the
social services budget. Representative Kerttula affirmed it
would. Representative Hawker recommended the amendment be
withdrawn.
AT EASE: 4:25:48 PM
RECONVENE: 4:32:19 PM
Representative Kerttula WITHDREW the amended language
proposed to HSS #8. She re-worded the change, leaving
current language and adding $1 million from TANF to Public
Assistance. Representative Hawker OBJECTED for the purpose
of discussion.
Representative Hawker said in order to make the amendment
work technically, the State would be spending a portion of
the bonus pool. Unless the authority to fund the
interagency receipt is provided, there is nothing to spend.
Representative Hawker WITHDREW his OBJECTION to the
amendment to the amendment.
4:35:00 PM
A roll call vote was taken on the motion as amended.
IN FAVOR: Foster, Kerttula
OPPOSED: Weyhrauch, Hawker, Holm, Kelly, Stoltze,
Meyer, Chenault
Representative Joule & Representative Moses were not present
for the vote.
The MOTION FAILED (2-7).
4:36:28 PM
Representative Kerttula MOVED to ADOPT HSS #9.
Representative Hawker OBJECTED. Representative Kerttula
requested to amend the amendment, changing the allocation
from SED Youth to Behavior Health Administration. There
being NO OBJECTION, HSS #9 was amended.
Representative Kerttula spoke to HSS #9, which would provide
adequate staffing and project management for coordination
and gate-keeping functions. She stressed that the
allocation would help youth-at-risk.
Representative Hawker countered that the amendment would add
three more positions within the Department's administrative
structure.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses
OPPOSED: Foster, Hawker, Holm, Kelly, Stoltze,
Weyhrauch, Meyer, Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (2-8).
4:40:40 PM
Representative Kerttula MOVED to ADOPT HSS #10.
Representative Hawker OBJECTED. Representative Kerttula
MOVED to AMEND the amendment to indicate general funds/1037,
adding $1.250 million general fund dollars to the seriously
& emotionally disturbed youth, Behavioral Health. There
being NO OBJECTION to the amended language, it was adopted.
Representative Kerttula spoke to the amended HSS #10, which
would provide additional funding to the Community Mental
Health Centers to work with families and youth prior to
consideration by the placement/resource committees for
residential care. Currently, some families & children may
never connect with a community mental health clinician prior
to moving into residential care.
4:42:44 PM
Representative Hawker maintained that "bringing the kids
home" does not exist; he noted that the subcommittee had
funded $800 thousand of the requested amount.
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses
OPPOSED: Foster, Hawker, Holm, Kelly, Stoltze,
Weyhrauch, Meyer, Chenault
Representative Joule was not present for the vote.
The MOTION FAILED (2-8).
4:46:30 PM
FUNDING CAP
Co-Chair Meyer MOVED to ADOPT FUND CAP #1, which would add
$1.8 million dollars from the commercial passenger vessel
environmental compliance fund. Representative Kerttula
OBJECTED.
Co-Chair Meyer MOVED to AMEND FUND CAP #1 to change Line 1,
Page 62, Line 27, to reflect the current version of the
bill. There being NO OBJECTION, it was amended.
Co-Chair Meyer spoke to FUND CAP #1 as amended, which helps
the Department of Environmental Conservation with oil spill
contingency funding. Representative Kerttula WITHDREW her
OBJECTION. There being NO further OBJECTION, FUND CAP #1
was adopted as amended.
4:48:20 PM
Co-Chair Chenault MOVED to ADOPT FUND CAP #2, which would
insert $76,241.4 million dollars and delete $59,592.9
million dollars for Alaska Industrial Development Export
Authority (AIDEA) dividends. Vice Chair Stoltze OBJECTED.
Ms. Kelly explained the amendment. It would capitalize the
Alaska Debt Retirement Fund and replaces $16,649.5 million
AIDEA dividends with general funds; also, it would delete
capitalization of the Clean Water Fund, Drinking Water Fund
and Information Services Fund. Moving the capitalization
of the funds to the capital budget, flow into and out of the
funds would appear in the same appropriation bill. The
action is necessary to improve coordination of the
capitalization and appropriation amounts. There is no net
impact on the total budget.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, FUND CAP #2 was adopted.
4:49:49 PM
Co-Chair Chenault MOVED to ADOPT FUND CAP #3, which would
amend Section 21(o) & Section 26(o). Vice Chair Stoltze
OBJECTED.
Ms. Kelly explained that in April 2006, Sport-fish revenue
bonds would be sold. Due to a delayed issuance, there is
anticipated more surcharge revenue collections prior to debt
service being payable than previously estimated. The
increment to debt service would allow the repayment of funds
to occur more quickly than originally budgeted.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:51:01 PM
Co-Chair Chenault MOVED to ADOPT FUND CAP #4, which would
amend Section 26(g), State Debt and other obligations. Vice
Chair Stoltze OBJECTED.
Ms. Kelly explained that in March 2006, $344.6 million
dollars in Alaska International Airport System revenue bonds
were sold to refinance $104.9 million of outstanding bonds
for savings and to fund $240 million dollars in new
spending. The increment to debt service due to the new
money issue and payable in FY2007, is reflected in the
amendment.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, it was adopted.
4:52:03 PM
STATEWIDE
Co-Chair Chenault MOVED to ADOPT STATEWIDE #1, #24-
GH2033\I.15, Bailey, 3/23/06. Vice Chair Stoltze OBJECTED.
Ms. Kelly explained that the STATEWIDE #1, #2 & #3
amendments were all related. The House Finance Committee
wanted to address fuel issues in the budget, not including
it in the base. The amendment attempts to appropriate no
additional general funds unless oil prices exceed the
official forecast of $54 dollars per barrel (bbl). As the
price of oil increases, the amount appropriated to off-set
agency costs would increase to a maximum of $24 million
dollars. The amount of the appropriation would be
determined by the year to date price of oil. There would be
two different dates during the fiscal year, one September
thst,
30, 2006 and the other March 312007. The following day
of each month, there would be a distribution of funds up to
$12 million dollars. For budgeting & reporting purposes,
the estimated amount is zero.
Ms. Kelly continued, STATEWIDE #2 reappropriates the non-
general fund fuel increases in the budget; however, it
deletes $100 thousand general fund dollar match to the
Department of Military & Veterans Affairs, which would keep
that budget consistent with the other departments. Co-Chair
Chenault said it had been added during the subcommittee
process.
4:54:46 PM
Ms. Kelly noted that STATEWIDE #3 was an amendment to
STATEWIDE #1, which places sidebars on appropriations so
that the monies would be appropriated to the Governor and
then their Office would distribute it to the departments.
She reiterated the sidebars for certain State agencies.
Representative Hawker thought that the amendment created a
"tape linkage" between the price of Alaska North Slope (ANS)
crude oil as the base for the State agencies and asked if
members were comfortable with that linkage. Ms. Kelly
replied that the Chairman's office used the $53.26/bbl price
amount as budgeted; the Administration could have to come
back for additional supplemental funding. The amendment
attempts to take care of the agencies in the budget, without
needing to save operating revenue for fuel.
Representative Hawker questioned if evidence existed that
the table corresponds to the retail refined product price
purchased by the departments. Ms. Kelly could not provide
absolute assurance; however, the price was approved by the
Administration.
4:57:37 PM
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION, stated
that they had not looked at the correlation but instead used
information from the Department of Transportation & Public
Facilities, since they have the greatest diesel fuel costs.
There is a correlation between crude prices and refined
product prices. Representative Hawker appreciated that
perspective but worried about additional supplementals for
the State in FY08.
Co-Chair Chenault wanted to get away from supplemental
funding requests. There is a need for a mechanism to assure
the departments that there would be funding to cover the
fuel costs this year.
5:00:49 PM
Representative Hawker concurred with the objective.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, STATEWIDE #1 was adopted.
Mr. Teal pointed out that STATEWIDE #3 was an amendment to
STATEWIDE #1.
Co-Chair Chenault MOVED to AMEND STATEWIDE #1 to include
STATEWIDE #3. There being NO OBJECTION, STATEWIDE #3 was
adopted as amended.
5:02:38 PM
Co-Chair Chenault asked if there was objection to adopting
STATEWIDE #2. There being NO OBJECTION, it was adopted.
5:03:08 PM
DEPARTMENT OF NATURAL RESOURCES
Co-Chair Meyer MOVED to RESCIND previous action taken on DNR
#2. Representative Kelly OBJECTED.
Co-Chair Meyer realized that the program was important to
the people in Fairbanks but did not think the State should
be responsible to fund it. Representative Kelly countered
that the increment had been funded for a longtime by the
State and was included for funding recommended by the
Governor.
AT EASE: 5:05:29 PM
RECONVENE: 5:09:04 PM
5:09:19 PM
A roll call vote was taken on the motion.
IN FAVOR: Stoltze, Weyhrauch, Foster, Hawker, Meyer,
Chenault
OPPOSED: Holm, Kelly, Kerttula, Moses
Representative Joule was not present for the vote.
The MOTION PASSED (6-4) & action was RESCINDED.
Representative Holm stated the State does not do a good job
promoting renewable industry; he thought that was not in the
best interest of the State.
Representative Kelly echoed those sentiments, understanding
the frustration with the difficulties of the program.
5:11:15 PM
Vice Chair Stoltze pointed out that the amendment had not
yet been reintroduced for discussion. Representative Kelly
acknowledged that, pointing out that given the vote taken on
rescinding, he would WITHDRAW DNR #2.
5:12:31 PM
Co-Chair Chenault MOVED to ADOPT DNR #5, #24-GH2033\I.12,
Bailey, 3/22/06. There being NO OBJECTION, it was adopted.
DEPARTMENT OF FISH AND GAME
5:13:34 PM
Representative Moses WITHDREW F&G #9. There being NO
OBJECTION, it was withdrawn.
5:14:12 PM
DEPARTMENT OF COMMERCE, COMMUNITY & ECONOMIC DEVELOPMENT
Representative Moses MOVED to reinstate DCCED #5, which
would add $6,460.0 million general fund dollars to Power
Cost Equalization (PCE). Co-Chair Chenault OBJECTED.
Representative Moses advised that the State had not fully
funded that need for many years and has been prorated for
some time and now seriously needs funding.
Co-Chair Chenault acknowledged the importance of the concern
for rural Alaska, however, pointed out the statewide fueling
issues now on the table. He thought that concerns addressed
should be the ones "on how to best help all Alaskans". He
did not support the amendment.
5:19:06 PM
Representative Kerttula agreed that there needs to be a
long-term fix to the problem of energy costs; however,
communities hardest hit are the ones requesting PCE
assistance. Those communities are experiencing an 8 to 10
cent per kilowatt hour increase.
5:20:02 PM
Representative Moses acknowledged that PCE had been added
years ago with the understanding that it would be fully
funded. He felt strongly that it should be fully funded.
Co-Chair Chenault agreed but maintained his objection.
5:20:34 PM
A roll call vote was taken on the motion.
IN FAVOR: Kerttula, Moses, Foster
OPPOSED: Kelly, Stoltze, Hawker, Holm, Meyer, Chenault
Representative Weyhrauch and Representative Joule were not
present for the vote.
The MOTION FAILED (3-6).
5:21:21 PM
Co-Chair Chenault acknowledged that there are many needs
throughout the State which have not been addressed. He
invited Ms. Frasca from the Office of the Governor to
highlight certain items of concern in the budget funding
process; however, urged that the process move forward.
5:22:-43 PM
CHERYL FRASCA, DIRECTOR, DIVISION OF MANAGEMENT & BUDGET,
OFFICE OF THE GOVERNOR, thanked the Chair for her "first and
only opportunity" to address the full Committee. She noted
that the budget proposed by the Governor reflected his
priorities for the State of Alaska and the State's basic
responsibilities, such as funding for K-12 education,
protecting Alaskans through the Department of Corrections,
Department of Public Safety, Division of Public Health, and
the Department of Transportation and Public Facilities with
maintenance of roads, harbors and airports. The proposed
budget, additionally, included requests by which the State
could take steps to meet future opportunities; however, most
of those were rejected. She observed that the House Finance
Committee substitute reflects only the priorities of the
Committee and not the State's responsibility & best
interest. The Administration has requested many
opportunities to address concerns with the budget being
proposed.
Ms. Frasca acknowledged that the Committee had accommodated
some of the Governor's concerns. She pointed out continued
concerns received from the Office of Children's Services
case management system, positions in the Division of Oil and
Gas, transportation safety, & rural energy assistance. She
stated she would not address those concerns at this time;
however, indicated significant concerns regarding the
Department of Corrections.
Ms. Frasca pointed out that within "budgeting circles",
there is a sophisticated, highly technical budgeting
practice; it is more commonly know as a "shell game" or some
describe it as "smoke and mirrors". In Alaska, the budget
practice hit a fevered pitch in the late 90's - early
2000's. For those unfamiliar with the practice, it's where
you re-label what had previously been general fund spending
and you then call it a general fund reduction. In 1997, the
Legislature created 5 non-general fund categories. In 2000,
the Legislature created another 21 [categories]. In 2002,
the Legislature created another 24. Ms. Frasca maintained
that amending the statute that defines non-general fund
program receipts, created 50 non-general fund designations.
Ms. Frasca commented that the State's primary general fund
responsibilities are public safety, corrections, court
system, K-12, & the legislature's budget. Every time the
Legislature takes more out of the general fund for a special
interest, there is less to meet the basic traditional
responsibilities. She expressed her respect for the
Legislature's power to appropriate, but asked that the laws
that govern such designations, be respected and amended with
caution.
5:27:17 PM
PORTIA PARKER, DEPUTY COMMISSIONER, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF CORRECTIONS, stated that the
budget proposed for the Department will be problematic and
that there is no feasible way to absorb the funding level
while continuing to provide the current level of service.
The Department will have to reduce services while
eliminating programs to achieve the 10% reduction. She
pointed out that interest arbitration for correctional
officers was not funded; the residential substance programs
were not funded and consequently will be discontinued. The
Department will need to look at non-security items and
decide what has the least impact on public safety.
5:28:47 PM
Representative Hawker clarified that there had been
misrepresentation in the media regarding the interest
arbitration issue. That was an amendment offered by the
Governor's office after the Department of Corrections
subcommittee had closed. He noted concerns with the budget
rd
and asked if the 23 Legislature had brought forward a bill
that would have consolidated other off-budget, other funds
into the general fund.
5:30:18 PM
Ms. Frasca explained it occurred through HB 232.
Representative Hawker pointed out that he had supported the
efforts with that bill.
Ms. Frasca reiterated her appreciation working in the budget
process and noted that they would continue to work toward
"transparency" in budgeting.
Co-Chair Meyer related that the subcommittee process worked
diligently with the Administration, although they had not
always agreed with increases being proposed.
5:31:58 PM
Co-Chair Chenault referenced a "huge increase to the
budget", acknowledging that the increases were not
sustainable into the future. He thanked the subcommittee
chairs for all their hard work. He thought that the
proposed budget was a "bit irresponsible".
5:35:48 PM
Representative Kelly said the timing was early. He stated
that the budget delivered by the Governor was over-weight,
pointing out that federal funding was falling away at a very
quick rate. The budget can not be fixed and he worried
about addressing the poorest of the poor.
5:37:58 PM
Co-Chair Chenault MOVED authority be given to Legislative
Legal Services to make necessary changes so the legislation
works as it should. There being NO OBJECTION, that
authority was adopted.
Representative Foster MOVED to REPORT CS HB 365 (FIN) out of
Committee with individual recommendations.
CS HB 365 (FIN) was reported out of Committee with a "do
pass" recommendation.
Representative Foster MOVED to REPORT CS HB 366 (FIN) out of
Committee with individual recommendations.
CS HB 366 (FIN) was reported out of Committee with a "do
pass" recommendation.
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