Legislature(1993 - 1994)
04/03/1993 12:55 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE BILL NO. 175:
An Act making appropriations for the operating and loan
program expenses of state government and to capitalize
funds; and providing for an effective date.
Department of Community & Regional Affairs
SENATOR GEORGE JACKO outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Community & Regional Affairs (copy of
handout on file titled "Department of Community Regional
Affairs-Agency Alternative" dated 4/1/93). He also outlined
designated grants for DC&RA (copy on file titled "Department
of Community & Regional Affairs, Designated Grants - FY88 to
FY94 Proposed").
SENATOR JAY KERTTULA said that he understood that the
deadline was past in the municipalities to disallow the
seniors' homeowners property tax exemption. BRUCE GERAGHTY,
Deputy Commissioner, Department of Community & Regional
Affairs, affirmed that the deadline was past for 1993.
Senator Kerttula said that local governments would have to
provide funding for the exemption. Mr. Geraghty agreed that
it would increase the local government contribution by 20
percent. CO-CHAIR STEVE FRANK said he had just been made
aware of the situation and had not had time to consider it.
Mr. Geraghty informed the committee that the Governor has
proposed and the House has passed a bill for optional
exemptions for municipalities.
Senator Kerttula MOVED for adoption of amendment #1 in
regard to Perseverance Theatre in the Designated Grants
component (copy on file). Senator Jacko OBJECTED. Co-chair
Frank asked for a show of hands. The motion FAILED on a
vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce,
Rieger, and Sharp were opposed. Senator Kerttula was in
support.)
Senator Kerttula MOVED for adoption of amendment #2 in
regard to "People Count" for adult education in Kenai (copy
on file). Senator Jacko OBJECTED. Co-chair Frank asked for
a show of hands. The motion FAILED on a vote of 6 to 1.
(Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp
were opposed. Senator Kerttula was in support.)
Senator Jacko MOVED for ADOPTION of amendment #3 in regard
to municipal revenue sharing for DC&RA (copy on file). No
objections being raised, it was ADOPTED.
SENATOR TIM KELLY MOVED for ADOPTION of the letter of intent
for DC&RA (copy on file). No objections being raised, it
was ADOPTED.
Senator Kelly MOVED for ADOPTION of subcommittee
recommendations for the Department of Community & Regional
Affairs budget into SB 175. No objections being raised, it
was ADOPTED.
University of Alaska
NANCY SLAGLE, Fiscal Analyst, Legislative Finance Division,
spoke to an earlier proposal to return the budget structure
for the University of Alaska to the format of two years ago.
The budget sheets would separate out program service areas
by campus. She provided a marked up version of a Department
of Fish & Game detail page for an example (copy of handout
on file). Senator Kerttula asked if the same amount of
detail would be provided to the legislature. Ms. Slagle
answered affirmatively, and added that the University would
have to explain changes, transfers, deletions, and provide
comparisons from the past year.
SENATOR STEVE RIEGER MOVED that each campus use project
budgeting within the allocation for their campus, and that
would be the format for the budget reporting for the next
year. No objections being raised, it was ADOPTED.
Department of Environmental Conservation
Co-chair Frank outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Environmental Conservation (copy of
handout on file titled "DEC FY94 Budget).
End SFC-93 #46, Side 2
Begin SFC-93 #48, Side 1
Co-chair Frank submitted letters of intent numbered 1
through 5 (copies on file). In answer to Senator Kerttula,
JOHN A. SANDOR, Commissioner, DEC, said that Alaska and
Hawaii have authority to apply for an exemption to the low
sulfur diesel fuel requirements that are imposed for the
lower 48. Mr. Sandor said that the state exemption request
had been submitted, and that it would not be feasible for
Alaska to be in compliance with this requirement.
In answer to Senator Rieger, Co-chair Frank said that
because of reductions, DEC would have problems in three
areas -- seafood inspections, sanitation, and bacterial
testing at the Palmer Laboratory. Co-chair Frank said that
the first letter of intent addressed seafood inspection and
bacterial testing as priorities. Senator Kerttula agreed
that seafood testing was needed.
Senator Kelly MOVED for ADOPTION of the five letters of
intent for DEC. No objections being raised, they were
ADOPTED.
Senator Kelly MOVED for ADOPTION of subcommittee
recommendations for the Department of Environmental
Conservation budget into SB 175. No objections being
raised, it was ADOPTED.
Senator Kelly MOVED for ADOPTION of a letter of intent for
DEC and amended it to say that "at least" $600.0 of the
$800.0 allocated to the Department of Military & Veterans
Affairs, Division of Emergency Services, from the Department
of Environmental Conservation for depots and corps be
allocated to support the incident command center emergency
preparation and planning support to state, federal and local
governments (copy on file). No objections being raised, it
was ADOPTED as amended.
Announcement
CO-CHAIR DRUE PEARCE announced an 8:00 a.m., April 5, 1993
meeting of the Senate Finance Committee with Jim Ayers,
Alaska Marine Highway System, speaking to the new state
ferry.
Department of Fish & Game
Co-Chair Pearce outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Fish & Game (copy of handout on file
titled "Senate Finance committee, Proposed Budget Cuts for
the Department of Fish & Game, 4/3/93").
In answer to Senator Kerttula, Co-chair Pearce said that the
Moose Research Center has had 30 years to produce a moose
pellet food, and that DF&G should go on to other projects.
She said there is a chance that the federal government may
continue this project. Discussion followed between Co-chair
Pearce and Senator Kerttula regarding the location of the
Moose Research Center and federal funding attached to it.
Senator Kerttula MOVED for ADOPTION of amendment #1 in
regard to Fred Division adding $170.0 for Kitoi Bay and
Pillar Creek Hatcheries (copy on file). Commissioner Sandor
spoke in support of the amendment and confirmed that there
was no program receipt authority to receive funds from KRAA.
Senator Jacko OBJECTED. Co-chair Frank asked for a show of
hands. The motion FAILED on a vote of 6 to 1. (Senators
Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed.
Senator Kerttula was in support.)
Senator Kerttula MOVED for ADOPTION of amendment #2 to
restore funding for the Snettisham Hatchery (copy on file).
Commissioner Sandor again supported this amendment and
pointed out the importance of Snettisham Hatchery for all
fisheries. Co-chair Frank asked for a show of hands. The
motion FAILED on a vote of 6 to 1. (Senators Frank, Jacko,
Kelly, Pearce, Rieger, and Sharp were opposed. Senator
Kerttula was in support.)
At Ease 1:52pm
Reconvene 1:53pm
Co-chair Pearce MOVED for ADOPTION of amendment #3 restoring
the reduction of $36.6 general funds from the Division of
Habitat and a $36.6 decrement made to the travel line item
in the Division of Wildlife Conservation (copy of file). No
objections being raised, it was ADOPTED.
Co-chair Pearce MOVED for ADOPTION of the three letters of
intent for DF&G (copy on file). No objections being raised,
they were ADOPTED.
Co-chair Pearce MOVED for ADOPTION of subcommittee
recommendations for the Department of Fish & Game budget
into SB 175. Senator Kerttula OBJECTED. Co-chair Frank
asked for a show of hands. The motion CARRIED on a vote of
6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and
Sharp were in support. Senator Kerttula was opposed.)
Department of Commerce & Economic Development
Co-chair Pearce outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Commerce & Economic Development (copy
of handout on file titled "Department of Commerce and
Economic Development" dated 4/3/93).
Senator Kerttula asked if detail grants funds would be
available to the committee, and specifically for Alaska
Tourism Marketing Council (ATMC). Co-chair Pearce noted
that the ATMC would receive an industry match increase over
the Governor's recommendations.
Co-chair Pearce MOVED for ADOPTION of subcommittee
recommendations for the Department of Commerce & Economic
Development budget into SB 175. No objections being raised,
it was ADOPTED.
At ease 2:30pm
Reconvene 4:20pm
Department of Natural Resources
Co-chair Pearce outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Department of Community & Regional Affairs (copy of
handout on file titled "Department of Natural Resources").
End SFC-93 #48, Side 1
Begin SFC-93 #50, Side 1
Senator Kelly MOVED for ADOPTION of subcommittee
recommendations for the Department of Commerce & Economic
Development budget into SB 175 as amended. No objections
being raised, it was ADOPTED.
Senator Kelly MOVED for ADOPTION of the four letters of
intent
for DNR (copy on file). No objections being raised, they
were ADOPTED.
Senator Kelly MOVED for ADOPTION of amendments #1 and #2 by
in regard to DNR budget changes to the Recorder's Office and
Statewide Fire Suppression (copies on file). No objections
being raised, they were ADOPTED.
Alaska Court System
SENATOR BERT SHARP outlined subcommittee increments and
decrements to the corrections of the FY94 operating budget
for the Alaska Court System (copy of handout on file titled
"Alaska Courts System, FY 94 Budget - Senate Finance Sub-
committee Work Draft, 4/3/93").
Senator Sharp MOVED for adoption of amendment #1 to restore
$600.0 GF to a miscellaneous reduction in trial courts (copy
on file). No objections being raised, it was ADOPTED.
Senator Kerttula MOVED for ADOPTION of amendment #2 to
restore a reduction of $1,540.1 to trial courts (copy on
file). Senator Sharp OBJECTED. Co-chair Frank asked for a
show of hands. The motion FAILED on a vote of 6 to 1.
(Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp
were opposed. Senator Kerttula was in support.)
Senator Sharp MOVED for ADOPTION of subcommittee
recommendations for the Alaska Court System budget into SB
175 as amended. No objections being raised, it was ADOPTED.
Governor
Co-chair Frank outlined subcommittee decrements to the
corrections of the FY94 operating budget for the Governor
(copy of handout on file titled "Governor - FY94 Budget,
General Funds Only"). He said that the Governor's office
had been asked to take a 5 percent budget cut.
Senator Kelly MOVED for ADOPTION of subcommittee
recommendations for the Office of Governor's budget into SB
175. No objections being raised, it was ADOPTED.
At Ease 4:05pm
Reconvene 4:30pm
Legislature
Co-chair Frank outlined subcommittee decrements to the
corrections of the FY94 operating budget for the Legislature
(copy of handout on file titled "Legislature - FY94
Operating Budget").
Senator Kelly MOVED for ADOPTION of subcommittee
recommendations for the Legislature's budget into SB 175.
Senator Kerttula OBJECTED. Co-chair Frank asked for a show
of hands. The motion CARRIED on a vote of 6 to 1.
(Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp
were in support. Senator Kerttula was opposed.)
At Ease 6:05pm
Reconvene 6:06pm
Front Section to SB 175
Co-chair Frank invited Mike Greany and Nancy Slagle, Fiscal
Analysts, Legislative Finance Division, to join the
committee at the table and speak to the front section of SB
175.
Senator Kerttula MOVED to adopt the front section of SB 175
for a working document. No objections being raised, it was
ADOPTED.
MIKE GREANY said that Sec. 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10
are sections that appear from year to year in the operating
budget and no changes were required.
NANCY SLAGLE spoke to Sec. 11 and said that legal counsel
had suggested that after (AS 37.15.430), on page 3, line 2,
the words "to the state bond committee for payment of debt
service" be added. Co-chair Frank MOVED for ADOPTION of an
amendment to Sec. 11 to reflect legal counsel's suggested
language. No objections being raised, it was ADOPTED.
Mr. Greany explained that Sec. 12 appropriated funds for
debt payment for the City of Seward - a recreational
facility, City of Kenai - court house facility, etc.
Mr. Greany said that Sec. 13 appropriated funds for payment
of debt service and trustee fees on state general obligation
bonds.
Ms. Slagle outlined the following sections:
Sec. 14 (a) and (b) was recommended by Legislative Fiance to
be deleted since it is in HB 45. Co-chair Pearce MOVED for
the deletion of Sec. 14 (a) and (b) from page 3, lines 14
through 18. No objections being raised, Sec. 14 was
DELETED.
Sec. 15 would allocate funding for the permanent fund
dividend.
Sec. 16 appropriates funds to offset the inflation on the
principle of the permanent fund. Ms. Slagle said that
recommended language has been suggested by legal counsel.
Senator Kerttula MOVED for ADOPTION of an amendment to Sec.
16, page 3, line 23, to reflect legal counsel's suggested
language. No objections being raised, it was ADOPTED.
Sec. 17 spoke to the interest earned during FY94 on revenue
before it was deposited to the permanent fund.
Sec. 18 spoke to the amount required to be deposited in the
permanent fund.
Sec. 19 appropriates the lapsing balance of the employment
assistance and training program account to the unemployment
compensation fund.
End SFC-93 #50, Side 1
Begin SFC-93 #52, Side 1
Sec. 20 appropriates the Alaska Housing Finance Corporation
and the earnings related to the various payments and
receipts to the Alaska Housing finance revolving fund. Mr.
Greany pointed out that the actual budgetary authority is
within the appropriate place in the budget in the Alaska
Housing finance component under the Department of Revenue.
Sec. 21, page 4, line 28, appropriates to the general fund
from the commercial fishing revolving loan fund. Ms. Slagle
said that Legislative Finance recommends it be reduced by
$200.0. The new number would be $4,802,800. This amount of
$200.0 was used as an additional fund source for the
Department of Commerce operating budget proposal which has
been adopted by the subcommittee.
Senator Kerttula MOVED to amend Sec. 21, page 4, line 29, by
reducing the amount to "$4,802,800," and also to change line
27 to read "$4,802,800." No objections being raised, it was
ADOPTED.
Senator Kerttula MOVED amendment #1 for Sec. 21, page 4,
line 30, to delete the agricultural revolving loan fund in
the amount of $1,500.0 (copy on file). No objections being
raised, it was DELETED. (Discussion and motion to amend
Sec. 21 was held later in the meeting.)
Sec. 22 appropriates the 5 cents per barrel surcharge to the
oil and hazardous substance release response fund. Ms.
Slagle said that Legislative Finance recommended that the
number be reduced from $26,800.0 to $26,700.0 to reflect the
forecast by the Department of Revenue. Mr. Greany pointed
out that the House already had taken this action. Senator
Kerttula MOVED that page 4, line 31, be amended to read
"$26,700,000." No objections being raised, it was ADOPTED.
Sec. 23 appropriates the balance of the oil and hazardous
substance release mitigation account to the oil and
hazardous substance release response fund. In answer to Co-
chair Pearce, Ms. Slagle said the balance in the account was
approximately $12.7. She explained the funds come from
penalties and fines levied related to oil spills, and said
that there was not a statutory amount that needed to left in
the account. Ms. Slagle said that this section has been in
the bill the past several years. Co-chair Pearce confirmed
that there would be about $6M going into the '470' fund.
Sec. 24 appropriates the unexpended balance of the oil and
hazardous substance release response fund for spill reserve.
In answer to Co-chair Pearce, Ms. Slagle said that the
balance in the spill reserve account was approximately $23M.
Discussion followed between Co-chair Pearce, Ms. Slagle, Mr.
Greany, and Ms. Stonkus regarding the oil spill response
fund, reserve fund, and the '470 fund. Mr. Greany explained
that Sec. 24 moved money that was in the '470' fund into the
spill reserve, which more specifically outlines where the
money can be used. In answer to Co-chair Pearce, Mr. Greany
said the 5 cents a barrel was connected to the '470' fund.
Co-chair Frank announced that Sec. 24 would be held until
later in the meeting.
Later in the meeting, Co-chair Pearce MOVED that Sec. 24,
page 5, lines 5 through 8 be deleted. No objections being
raised, it was DELETED.
Sec. 25 would reflect appropriations to the Department of
Law and Revenue for legal and audit activities involving oil
and gas revenue. In previous years this has been in the
back section of the budget, but this year the Governor's
office placed it in the front section.
Sec. 26 appropriates funds to the Department of Natural
Resources for costs associated with fire suppression. Ms.
Slagle said that Legislative Finance recommends that Sec. 26
be deleted since this has been put in the back section of
the budget. Senator Kelly MOVED to delete Sec. 26, page 5,
lines 18 through 20. No objections being raised, Sec. 26
was DELETED.
Sec. 27 appropriates the disaster relief fund and has been
in the back section in past years. This year the Governor's
office placed it in the front section.
Sec. 28 appropriates funds to the information services fund
for the Department of Administration. Ms. Slagle said that
Legislative Finance recommends that page 5, line 28, should
read "General fund - $2,311,600", line 29 should remain the
same, and line 30 should read "Inter-agency receipts -
$20,265,100," which would change the total on line 25 to
"$22,631,700." Senator Kerttula MOVED to amend Sec. 28,
lines 25 through 30, to reflect the recommendation by
Legislative Finance. No objections being raised, it was
ADOPTED.
Sec. 29 appropriates money from the general fund to the
Alaska Marine Highway System fund. Ms. Slagle said that
Legislative Finance recommends the sum be reduced to
"$28,329,200" to reflect the action taken by the Department
of Transportation & Public Facilities subcommittee. Co-
chair Frank MOVED that Sec. 29, page 5, line 31, be amended
to read "$28,329,200." No objections being raised, it was
ADOPTED.
Sec. 30 appropriates money to the fisheries enhancement
revolving fund.
Sec. 31 appropriates money from the mental health trust
income account to the general fund for statewide indirect
cost recovery related to mental health programs. Ms. Slagle
said that Legislative Finance recommends the sum be reduced
to $871,400 to reflect the action taken by the Department of
Health & Social Services subcommittee. Senator Kerttula
questioned this reduction. Co-chair Frank said that there
was an increase in DD grants in the DH&SS budget. Senator
Kelly MOVED that Sec. 31, page 6, line 5, be amended to read
"$871,400" (copy on file). No objections being raised, it
was ADOPTED.
Sec. 32 appropriates money from the oil and hazardous
substance release mitigation account to the storage tank
assistance fund. Ms. Slagle said that Legislative Finance
recommends a reduction to $5,691,500. Senator Kelly asked
for clarification of this appropriation. Discussion
followed between Ms. Slagle, Mr. Greany, Ms. Stonkus,
Senator Kelly, Co-chairs Frank and Pearce, in regard to the
'470' fund, spill reserve, and mitigation fund. Co-chair
Frank MOVED that Sec. 32, page 6, line 8, be changed to read
"$5,691,500." No objections being raised, it was ADOPTED.
Sec. 33 appropriates any funds not expended in FY93 by the
Safety Advisory Council to be used for the Governor's 1994
safety conference.
Sec. 34 refunds local governments their share of taxes and
fees collected under various programs. Mr. Greany said that
this section has been used for several years.
Sec. 35 appropriates the salmon enhancement tax to the
Department of Commerce and Economic Development.
Sec. 36 allows the use of funds in the statutory budget
reserve fund in case revenues are short.
Sec. 37 provides for the lapse date.
At Ease 6:45pm
Reconvene 6:55pm
Sec. 21 discussion was held at this time. Amendment #1 by
Senator Kerttula was ADOPTED. (See detail in Sec. 21
above.)
Sec. 24 was deleted at this time. (See detail in Sec. 24
above.)
Co-chair Pearce MOVED to adopt the amended front section of
SB 175. No objections being raised, it was ADOPTED.
Co-chair Pearce MOVED for passage of CSSB 175(FIN) with
individual recommendations. No objections being raised,
CSSB 175(FIN) was REPORTED OUT of committee as amended.
ADJOURNMENT
The afternoon meeting was recessed at approximately 7:00
p.m.
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