Legislature(1993 - 1994)

02/23/1994 01:40 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  HB 455    An  Act making and  amending operating and capital                 
            appropriations   and   ratifying   certain   state                 
            expenditures; and providing for an effective date.                 
                                                                               
            HB   455  was   held  in  Committee   for  further                 
  discussion.                                                                  
  HOUSE BILL 455                                                               
                                                                               
       "An Act  making  and  amending  operating  and  capital                 
       appropriations    and    ratifying     certain    state                 
       expenditures; and providing for an effective date."                     
                                                                               
  NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF                 
  MANAGEMENT AND BUDGET,  OFFICE OF  THE GOVERNOR, provided  a                 
  sectional overview of HB 455, the Supplemental legislation.                  
                                                                               
  DEPARTMENT OF ADMINISTRATION                                                 
                                                                               
       *    Sec. 3    Public Defender          $466.0                          
                                                                               
            This request  would provide for  the extraordinary                 
            number  of felony  cases and  underfunded personal                 
            services.                                                          
                                                                               
       *    Sec. 4    Office of Public Advocacy $554.7                         
                                                                               
            The request would address increased caseload.                      
                                                                               
  Representative Parnell asked if the requests in Sections 3 &                 
  4 resulted  from the  reductions the  Legislature took  last                 
  year.  Ms. Slagle stated those budgets had been reduced last                 
  year below projected cost for FY94.                                          
                                                                               
       *    Sec. 5    Personnel/OEEO           $100.0                          
                                                                               
            This request  would cover  arbitration case  costs                 
            for labor negotiations.                                            
                                                                               
       *    Sec. 6    Personnel/OEEO           $18.0                           
                                                                               
            This cost will cover a grievance  award cost for a                 
                                                                               
                                5                                              
                                                                               
                                                                               
            specific employee in that Department.                              
                                                                               
       *    Sec. 7    Personnel/OEEO           $50.0  thousand                 
            dollars                                                            
                                                                               
            The  request will  provide  for the  court-ordered                 
  salary and          geographic differential survey.                          
                                                                               
  SHARON   BARTON,   DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                 
  SERVICES, DEPARTMENT  OF ADMINISTRATION,  remarked that  the                 
  survey conducted  provided an evaluation  of state  salaries                 
  versus  private  sector salaries  for  similar type  of work                 
  performed.                                                                   
                                                                               
       *    Sec. 8    Leases                   $1,870.2                        
                                                                               
            The request will cover additional lease costs.                     
                                                                               
  DAN  SPENCER,  BUDGET  ANALYST,  OFFICE  OF  MANAGEMENT  AND                 
  BUDGET, OFFICE  OF THE  GOVERNOR, explained  that the  lease                 
  budget had been funded below  the projected costs for  FY94.                 
  Last years under funding was $1.8 million dollars under  the                 
  Governor's request budget.                                                   
                                                                               
  Co-Chair MacLean asked  which leases  were not covered  last                 
  year.  Ms. Barton offered to provide the Committee with that                 
  information.                                                                 
                                                                               
  (Tape Change, HFC 94-40, Side 1).                                            
                                                                               
       *    New Section #51     Personnel/OEEO  $35.0                          
                                                                               
       The  request would  cover  ethics complaints  grievance                 
       award cases.                                                            
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
       *    Sec. 9    Legal Services & Operations $325.4                       
                                                                               
            The funding will pay  judgement and claims against                 
  the State.                                                                   
                                                                               
  RICHARD   PEGUES,    DIRECTOR,   ADMINISTRATIVE    SERVICES,                 
  DEPARTMENT OF LAW,  explained the cost would  cover nineteen                 
  judgments.  During  the year,  more judgments were  received                 
  than funds allocated.                                                        
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
       *    Sec. 9a    Pupil transportation         $50.0                      
                                                                               
            These  costs  would  provide for  the  legal  fees                 
                                                                               
                                6                                              
                                                                               
                                                                               
            related to pupil  transportation issues (Ten  Eyck                 
            versus the State).                                                 
                                                                               
  DEPARTMENT OF LAW                                                            
                                                                               
       *    Sec. 10   Legal Services & Operations  $462.5                      
                                                                               
            These fees will address the reapportionment case -                 
             Southeast Conference versus Hickel.                               
                                                                               
  Mr. Pegues pointed  out that the amount  currently requested                 
  for reapportionment is  the same amount requested  last year                 
  and  not  granted  in  Conference  Committee.    The  amount                 
  requested includes the added interest costs from last year's                 
  request.                                                                     
                                                                               
  DEPARTMENT OF REVENUE                                                        
                                                                               
       *    Sec. 11   Permanent Fund Dividend       $142.6                     
                                                                               
            These  costs   will  cover  additional   costs  of                 
            printing   and   delivery   of    the   1994   PFD                 
            applications.                                                      
                                                                               
  THOMAS WILLIAMS, DIRECTOR, PERMANENT FUND DIVIDEND DIVISION,                 
  DEPARTMENT OF REVENUE, explained the original contractor was                 
  not  paid  because   services  were  not  completed.     The                 
  Department was advised  late in  the printing schedule  that                 
  the  contractor  could  not  provide   the  product  by  the                 
  deadline.  Consequently, there was  $142 thousand dollars of                 
  additional  expenses  in  order   to  get  the  applications                 
  available on time.                                                           
                                                                               
       *    Sec. 12   Permanent Fund Corporation    $3,195.0                   
                                                                               
            Cost to cover the additional equity management and                 
            international custody fees.                                        
                                                                               
  DEPARTMENT OF EDUCATION                                                      
                                                                               
       *    Sec. 13   Foundation Program            $1,500.0                   
                                                                               
            Funds to cover increased student enrollments.                      
                                                                               
  KAREN REHFELD, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT                 
  OF  EDUCATION,  stated the  amount  requested was  the total                 
  amount needed based on a count taken in October, 1993.  That                 
  amount  will be updated,  March, 1994,  and will  affect the                 
  request.                                                                     
                                                                               
       *    Sec. 14   Vocational    Education     -    federal                 
                      grants    -0-                                            
                                                                               
                                7                                              
                                                                               
                                                                               
            Funds to cover the ratification of expenditures.                   
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
       *    Sec. 15   PFD Hold Harmless             $244.4                     
                                                                               
            Costs to  cover the  increased number of  eligible                 
            recipients.                                                        
                                                                               
       *    Sec. 16   Medicaid Facilities           $7,674.5                   
                                                                               
            Funds to cover  judgement and settlements  against                 
            state by ASHNHA and others.                                        
                                                                               
  JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                 
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that the                 
  request is comprised of  three main cases, two of  which are                 
  settlements with  the Attorney  General's office  related to                 
  Our  Lady  of  Compassion's  appeal  issue and  with  Humana                 
  Hospital,  a 1986 rate  setting settlement.   Both  of these                 
  settlements can  be shared  50/50 percent  with the  federal                 
  government.  The  largest amount  of the request  originates                 
  from a judgement from  the supreme court for a  rate setting                 
  issue dispute over rates paid nursing  homes with the Alaska                 
  State Hospital Nursing Home Association.  She added  that it                 
  is anticipated that the level  of federal participation will                 
  reduce the needed amount.                                                    
                                                                               
  Representative Hanley asked the amount of  anticipated match                 
  funds due from  the federal government.   Ms. Clarke  stated                 
  the request for federal participation would be for the years                 
  1991,  1992  and  1993, and  it  has  been  received.   That                 
  information will be  available in March,  1994.  Ms.  Clarke                 
  offered to provide that information upon receipt.                            
                                                                               
       *    Sec. 17   Medicaid Facilities           $5,045.0                   
                                                                               
            Funds  to cover FY93  bills paid  in FY94  and the                 
            increased participants in FY94.                                    
                                                                               
  Representative  Hanley  commented  on  the  request  for  an                 
  additional supplemental for  fiscal year  1993.  Ms.  Clarke                 
  pointed  out  that  last  year,  the Department  offered  to                 
  relinquish  $4.5 million  dollars  in  the Medicaid  program                 
  which held true  with projections  until the fourth  quarter                 
  (April,  May  and June  1994).    At that  time,  bills were                 
  provided  remaining  from  1993.    The magnitude  of  those                 
  expenditures resulted in the proposed request.                               
                                                                               
       *    Sec. 18   Medicaid Facilities           $2,600.0                   
                                                                               
                                                                               
                                8                                              
                                                                               
                                                                               
            Funds to cover  for Charter  North and North  Star                 
            Hospital (disproportionate share claims).                          
                                                                               
       *    Sec. 19   Indian Health Service         $3,567.4                   
                                                                               
            Costs to cover the increased Indian Health Service                 
            billings.                                                          
                                                                               
       *    Sec. 20   General Relief Medical        $887.5                     
                                                                               
            Funds  for the  $246.6  thousand dollars  in  FY93                 
            carry forward; $640.9  thousand dollars  increased                 
            program growth.                                                    
                                                                               
  Per   Representative   Therriault's   request,  Ms.   Clarke                 
  explained "disproportionate share  claims", a program  which                 
  can  be  participated  in  through   Medicaid.    These  are                 
  disproportionate   share   payments  given   to  psychiatric                 
  hospitals because those  hospitals serve a  disproportionate                 
  share of either Medicaid clients or low income people.  When                 
  Alaska  began  participating in  this  program,  new federal                 
  dollars  were brought  into  the  State  in order  to  match                 
  current funds spent at API.                                                  
                                                                               
  HB 455 was HELD in Committee for further consideration.                      

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