Legislature(1993 - 1994)
02/23/1994 01:40 PM FIN
* first hearing in first committee of referral
= bill was previously heard/scheduled
= bill was previously heard/scheduled
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.