Legislature(1993 - 1994)
04/20/1994 08:35 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
HB 370 - APPROP: FY 95 OPERATING AND LOAN BUDGET Budget closeouts were conducted for all departments. SCS CSHB 370 (Finance) was REPORTED OUT of committee with a "do pass" recommendation. Co-chairman Steve Frank advised that the committee would proceed with presentation of subcommittee budget recommendations and subsequent incorporation of those recommendations into the Senate version of HB 370, the FY 85 operating budget. He then directed that review commence with the Dept. of Labor. DEPT. OF LABOR Senator Kelly distributed a handout containing subcommittee recommendations (copy on file in the original Senate Finance Committee file for HB 370). He explained that the subcommittee met the Senate cap of $9,495.9. In doing so, the following increments were denied: GF/Match -247.0 Population Estimate -75.0 ALRB Travel -14.0 GF/PR Worker's Comp -15.0 Health Insurance Premiums -46.5 -397.5 Co-chair Frank called for questions or comments on the budget. None were forthcoming. Senator Kelly MOVED that subcommittee recommendations for the Dept. of Labor budget be incorporated within SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF EDUCATION Senator Kelly directed attention to a handout presenting subcommittee recommendations (copy on file) and advised that the proposed budget meets the Senate cap. The subcommittee took the following House reductions: Reverse Health Insurance Increments - 99.30 Commissioner, Excess P/R Authority - 15.00 Admin. Serv., Delete 1 PFT Position - 28.10 Corres.Study, Elim Excess Authority - 20.00 St Council on Arts: Travel - 5.00 St Council on Arts: Contrac & Grants - 36.70 Kotz.Tech.Center: Grants - 29.70 AK Voc.Tech: Personal Services - 20.60 Indep.Living: Expanded Services -100.00 Archives: Gen.Fund Reduction - 53.00 WICHE Admin. Trans.From Exchange - 4.00 Basic Ed.: Personal Services - 28.50 The proposed budget also denies the following increments: Admin.Serv., Increased P/R Authority - 30.00 Library, Increased P/R Authority - 15.00 Voc.Rehab, P/R for client services - 75.00 The following additional decreases were made based on elimination of Harborview Services: Foundation -600.00 Pupil Transportation - 73.30 Tuition Program -156.40 Senator Kerttula voiced his understanding of the situation at Harborview to be that the children have grown up, and the facility is no longer used. Co-chair Frank concurred. Senator Kelly MOVED that the subcommittee budget for the Dept. of Education be included within SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF LAW Senator Kelly presented a handout containing subcommittee recommendations for the Dept. of Law and advised that the Senate cap was $29,052.9. Subcommittee reductions include: Mental Health Admin. and Support - 187.8 Mental Health Legal -1,500.0 Oil & Gas Litigation Legal and Audit Costs -5,891.6 -7,579.4 Senator Kelly explained that funding for oil and gas litigation would be covered through an appropriation from the constitutional budget reserve in the front section of SCS CSHB 370 (Finance). The Senator further explained that in light of potential settlement of the mental health lands case, it is hoped the $1,687.8 taken from mental health litigation will not be needed. Senator Kerttula voiced concern that the matter would not be settled. Senator Kelly MOVED that the Dept. of Law subcommittee report be included in SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. OFFICE OF THE GOVERNOR Co-chair Frank explained that the subcommittee made the following reductions: Executive Office - 425.0 Governor's House - 10.0 Contingency Fund - 50.0 Lieutenant Governor - 50.0 Media Center - 15.0 Governmental Coordination, OMB - 252.9 Unallocated Reduction, OMB - 154.4 Elections - 178.5 -1,135.8 Senator Kerttula raised a question regarding reductions to Governmental Coordination, asking if they were matching funds. Co-chair Frank concurred that some match was involved. He then voiced his belief that there are sufficient moneys to capture most federal funds, but not all. Senator Kelly questioned the unallocated reduction. Co- chair Frank explained that it was made at the request of OMB and accepted by subcommittee. Senator Kelly MOVED for adoption of the subcommittee budget for the Office of the Governor into SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. COURT SYSTEM Senator Sharp directed attention to a handout (copy of file) and explained that the subcommittee met the cap of $43,682.9. The following reductions were made: Appellate Courts, 3.2% - 124.4 Trial Courts, 2.7% - 901.9 Admin. & Support, - 171.8* Judicial Council, grants - 8.6 Commission on Judicial Conduct, Contractual, 1.2% - 3.4 *The reduction will be taken from the contractual line to reflect the anticipated savings from the Anchorage Times Building. Senator Sharp MOVED that the subcommittee budget for the Court System be incorporated within SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF TRANSPORTATION AND PUBLIC FACILITIES Senator Sharp again directed attention to a handout (copy on file) and advised of the following subcommittee reductions: Statewide Programs: Central D&C - 110.2 Northern D&C - 111.5 SE D&C - 78.3 Commissioner's Office (DP) - 8.8 Info. System (DP) - 24.1 GF to Fed Switch - 500.0 Unallocated Reduction - 174.8 -1,007.7 M&O Highways & Aviation Deny SEF Rate Increase -3,356.5 Deny New Fac. Increment -1,287.3 Remove Rural Airports -1,550.0 Unallocated Reduction - 916.3 -7,110.0 AMHS Stabilization Fund Unallocated Reduction - 318.6 Senator Sharp next proposed inclusion of the following standard lapse language: The allocation to the Department of Transportation and Public Facilities for highways and aviation shall lapse into the general fund on August 31, 1995. Senator Taylor noted that the Alaska Marine Highway appears to have lost a great deal percentage wise compared to maintenance and operation funding. The reduction in general maintenance and operations is much smaller than expected. Co-chair Frank voiced his understanding that prorata reductions were taken from last year's funding. He attested to funding switches in major maintenance and other areas. Senator Taylor contended that maintenance and operations received a $100.0 increase last year. The ferry system took a decrease of "almost $2 million." Senator Kerttula suggested that the $2 million reduction may have been made because ferry receipts increased by a like amount. Senator Taylor advised that he wished to have his comments on the record. Senator Sharp concurred in comments by Senator Kerttula and advised of projected revenue increases commencing the middle of next month. Senator Sharp MOVED for adoption of the subcommittee budget for the Dept. of Transportation and Public Facilities as presented, including the lapse language. No objection having been raised, IT WAS SO ORDERED. UNIVERSITY Senator Rieger directed attention to a cut sheet from the Legislative Finance Division and noted that it results in a $2,575.9 reduction from the Governor's request for the University. The Senate budget contains a single appropriation, a general reduction, and the Governor's unallocated reduction. The result is that all programs requested by the Governor and the Natural Heritage program are included in the overall request and subject to the unallocated and general reductions which produce the Senate Finance cap. Senator Kerttula directed attention to a proposed amendment to add $122.0 for utilities for the new classroom building at Mat-Su Community College. Co-chair Frank voiced opposition. He reiterated that the approach to the University budget seeks to allow University regents to make allocations based on a single appropriation and single decrement. The hope is that the University will "keep the buildings running, . . . including the MatSu Community College." Senator Kerttula formally MOVED for adoption of the amendment. Co-chair Frank reiterated his OBJECTION and called for a show of hands. The motion FAILED on a vote of 1 to 5. (Senator Jacko was absent from the meeting.) Senator Rieger MOVED that subcommittee funding and intent for the University of Alaska budget be incorporated into SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF ADMINISTRATION Co-chair Frank directed attention to a handout (copy on file) and advised of the following reductions: Longevity Bonus - 319.0 Pioneer Homes - 570.2 Senior Ser.Admin. deny 1/2 of Alzheimers increment - 514.1 Nutrition, trans. & support - 50.0 Senior employment - 74.3 Senior residential - 54.7 Public Defender - 515.9* Public Advocacy - 435.0* Commissioner - 31.3 Permanency Planning - 20.0 Administrative Services - 195.0 Personnel/OEEO - 388.0 Finance - 195.4 Property Mgmt. p/r incre. denied - 66.5 Central Duplicating & Mail - 30.0 Oil & Gas Conservation Commission - 270.0 APOC (FY 93 actual) - 21.6 Computer Services - 339.4 Telecommunications - 50.0 Info. Services (Front Section) - 300.0 RATNET - 25.0 Public Broadcasting - 210.0 Leasing & Facilities -1,849.7** Gen.Reduction: travel, supplies health care premium - 564.6 -7,090.5 *Reductions in the Public Defender and Public Advocacy agencies were made with the intent that they come to the Legislative Budget and Audit Committee and receive funds through PFDs "which the Dept. of Law is collecting." **Based upon expected savings from renegotiation of the Frontier lease or replacement space in Anchorage. Senator Kerttula MOVED for adoption of an amendment to restore $120.0 to the Alaska Public Broadcasting Commission. Restoration would leave a 90.0 reduction. Senator Kerttula explained that the typical station has lost 40% of its state revenue since 1986 and since 1991 has sustained cuts in grant funding of 18 to 20%. There is a possibility that at least one station will be cut from the network. Co-chair Frank OBJECTED and called for a show of hands. The motion FAILED on a vote of 1 to 5. Co-chair Frank referenced a handout (copy on file) which he explained would spread DP chargeback reductions among impacted agencies. He then noted need to clarify information thereon and advised that the handout would be dealt with at a later time. Senator Kelly MOVED for adoption of the subcommittee budget for the Dept. of Administration into SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF FISH AND GAME Co-chair Pearce directed attention to a handout (copy on file) and advised of the following reductions: Fisheries Management Consolidate DP support - 40.0 DP chargeback - 4.3 Denied health ins. increase - 109.4 Fisheries Development Tech adj 20.0 GFM to GF/PR Trans. Snettisham Hatchery - 460.0 Cut one-time hatchery funds - 415.0 Denied health ins. increase - 43.7 Cut GF/PR Pillar Creek - 70.0 Cut GF/PR Kitoi mgmt. - 100.0 Sport Fisheries Cut Behm Canal King Salmon Stock Status - 100.0 Wildlife Conservation Use other fund sources for 574.1 Deny health insurance increase - 5.4 Cut GF/PR marine mammal project - 5.0 Special Projects Denied health insurance increase - 1.0 Office of the Commissioner Denied health insurance increase - 3.9 DP chargeback reduction - 0.2 Cut Walrus Commission funding - 50.0 Cut GF for cross-cultural travel - 10.6 Public Communications Denied health insurance increase - 1.1 Cut GF to FY 94 auth level 211.2 Administrative Services DP chargeback reduction - 2.6 Denied health insurance increase - 12.0 Boards Services DP chargeback reduction - 0.5 Denied health insurance increase - 2.8 Adv. Com/Regional Council Denied health insurance increase - 1.7 Subsistence Denied health insurance increase - 9.0 DP chargeback reduction - 1.1 Habitat Denied health insurance increase - 16.9 DP chargeback reduction - 1.6 Cut SE Forest Mgmt/Practices - 75.0 Special Projects Deny oil/haz I/A for plan review - 185.6* Denied health insurance increase - 1.2 Limited Entry Program Administration Denied health insurance increase - 14.8 DP chargeback reduction - 3.9 *Funding for oil and hazardous substances plan review is covered by the DEC budget. The following additions were included in the subcommittee budget: Fisheries Development Sandy River Weir 40.0 Sport Fisheries Add F&G Funds for Kenai sonar 100.0 Add for Neets Bay/SSERA 100.0 Authority to receive federally dedicated money into F&G Fund 50.0 Pubic Communications Add I/A authority for revenues 120.0 Co-chair Pearce noted that general fund cuts for the Senate budget total $2,208.0. The Senate cap was $43,697.7. The subcommittee budget totals $41,489.7. Senator Kerttula MOVED for adoption of the following amendment: The appropriation made in this Act to the Department of Fish and Game, Commercial Fisheries Management and Development is conditioned on a minimum allocation of $360,000 for the operations of the Sikusuilaq hatchery. He explained that the hatchery was included in the Governor's budget at a total of $398,000. The Senate budget does not specifically delete the funding, however, the department has indicated that if the $415,000 in one-time hatchery funds it was allowed to carry forward from FY 94, is deleted, it would close the Sikusuilaq hatchery. The minimum needed to run the hatchery is $360,000. Co-chair Pearce OBJECTED. She reiterated that the Senate budget did not effect cuts for the hatchery. The House made a specific cut, then provided an add-back for the hatchery, but then took a 2.5% cut. Co-chair Pearce acknowledged the department indicated that if House numbers stand, funds for this hatchery will be cut first. Senator Kerttula inquired concerning acceptance of intent that the hatchery be maintained at no greater reduction than the 2.5%. Co-chair Frank directed that the issue be set aside for consideration later in the meeting. (See page 30 for adoption of this amendment.) Senator Kerttula next MOVED to add $460,000 in general funds to restore funding for the Snettisham Hatchery. He voiced his understanding that Canadian/American negotiations led to establishment and support for the facility. Snettisham is thus different than other hatchery operations. Co-chair Pearce OBJECTED. She acknowledged the Canadian/American treaty and Snettisham involvement but advised of her understanding that the treaty would not be broken by closure of Snettisham. The department would simply have to use an alternative source. Last year the committee informed the department it expected the department to find alternatives to general funds for Snettisham and to seek privatization of the hatchery. The department has been unable to do so. Snettisham has not been a successful hatchery. Senator Kerttula voiced his understanding that if the state loses the facility and fails to honor the treaty, the Alaska fishing fleet will receive a smaller share of the wild fish allocation. Further, if the hatchery is closed, the area must be restored to its natural state. That would incur an expenditure of many millions. Co-chair Frank called for a show of hands on adoption of the amendment. The motion FAILED on a vote of 1 to 5. Co-chair Pearce MOVED for incorporation of the Senate budget for the Dept. of Fish and Game into SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF CORRECTIONS Co-chair Frank distributed a handout (copy on file) and advised of the following reductions: Commissioner's Office - 59.0 Risk Assessment, increment denied - 50.0 Inmate Health Care, unallocated - 600.0 Inmate Progs. substance abuse beds - 175.2 Cook Inlet CC, fund source change for federal billings of 200.0 Comm. Corrections, reduce funding for DWI fines - 843.6 Comm. Corrections, reduce additional CRC funding for 12 months - 103.9 Comm. Corrections, deny augmented CRC alcohol treatment - 232.7 Comm. Corrections, reduce alloc. for DWI/Misdemeanant center -1,817.5 -3,881.9 Co-chair Frank next directed attention to the following intent language which he explained is similar to that provided last year: It is the intent of the legislature that the department, consistent with its statutory powers and duties, be allowed the maximum flexibility in allocating its budgetary resources during FY 95 in order to successfully deal with prison overcrowding and budgetary constraints. The Co-chair also noted the following new intent: It is the intent of the legislature that if the amount of program receipts collected in accordance with AS 28.35.030(k) or AS 28.35.032(o) during fiscal year 1995 exceeds the amount authorized for this purpose, then the department shall request authority from the Legislative Budget and Audit Committee to receive and expend the difference between these two amounts. Co-chair Pearce MOVED for adoption of both items of intent and requested unanimous consent. No objection having been raised, the intent language was ADOPTED. Co-chair Pearce next MOVED and requested unanimous consent for incorporation of the Senate operating budget for the Dept. of Corrections within SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF REVENUE Co-chair Frank directed attention to a Legislative Finance Division cut-sheet for the Dept. of Revenue and an April 11, 1994, memorandum from the division relating to increases and decreases in the department budget. (Copies of both the spread-sheet and memo are on file.) He then advised of the following changes from the Governor's budget: Child Support Enforcement Division Increase federal receipts 275.0 Increase federal receipts to change 16 temp. employees to full time, add 1 enforce- officer II, and for contractual arrangements with Dept. of Law 800.0 Public Housing Component - AHFC Increase federal and corporate receipts 1,137.5 Executive Order 90 Transfer Alaska Science and Technology Foundation from Dept. of Revenue to the Dept. of Commerce and Economic Development Alcoholic Beverage Control Board Denied general fund p/r increments - 80.0 Gaming Division Denied general fund p/r increments - 156.3 Permanent Fund Corporation Increase corporate receipts to cover equity mgmt. fees and international custodial fees in FY 95 20,277.4 End, SFC-94, #68, Side 1 Begin, SFC-94, #68, Side 2 Language in the above-noted memo, relating to increased funding for the Permanent Fund Corporation, indicates that funding within the Dept. of Revenue budget includes deletion of Section 16 of SB 262, which contained general language appropriating funds from the earnings reserve account of the Permanent Fund to the corporation for management fees for investment activities. Senator Kerttula directed attention to a proposed amendment (copy on file) and MOVED to increase oil and gas audit capabilities by $110.0. He explained that the increase would fund one of three vacant positions. Co-chair Frank voiced support for the amendment and called for objections. No objection having been raised, the amendment was ADOPTED. Senator Rieger asked if management fees for the Permanent Fund Corporation were budgeted for a specific dollar amount rather than through general language in the front section of the budget. MIKE GREANY, Director, Legislation Finance Division, responded that the subcommittee placed a dollar amount in the "back pages" rather than placing language in the front section. A conforming amendment would thus have to be made to the front section. Co-chair Pearce MOVED for incorporation of the subcommittee budget for the Dept. of Revenue into SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF NATURAL RESOURCES Co-chair Pearce directed attention to a spread-sheet (copy on file), noted formula cuts in travel, contractual, and commodities, and listed the following reductions: Commissioner's Office Travel - 8.6 Contractual - 3.9 Commodities - 0.8 Administrative Services Denied increment for lands accounting - 150.0 Travel - 4.8 Commodities - 3.0 Recorder's Office Denied workload increment - 55.9 Travel - 2.3 Contractual - 8.6 Commodities - 5.0 Division of Lands Denied increment for backlog - 450.0 Travel - 16.9 Contractual - 38.9 Commodities - 8.1 Forestry Denied increment for small projects - 35.0 Travel - 31.5 Contractual - 60.1 Commodities - 21.4 Mining Miscellaneous services - 30.0 Travel - 8.0 Commodities - 1.5 DGGS Travel - 9.3 Contractual - 21.9 Commodities - 3.8 Water Reduce Director's Office - 75.2 Travel - 10.1 Contractual - 16.8 Commodities - 1.4 Unassigned program receipts - 101.0 Pipeline Coordinator Reduced materials' sales to Land - 50.0 Travel - 9.0 Contractual - 24.3 Commodities - 2.9 Information Resource Mgmt. Reduce IAR from Lands - 200.0 Travel - 1.8 Contractual - 13.7 Commodities - 2.1 Data Processing Reduce DP chargeback - 19.9 Historic Preservation Denied Coffman Cove increment - 40.0 Reduced program receipts - 4.2 Parks Management Denied increment - 200.0 Travel - 22.0 Contractual - 68.0 Commodities - 18.2 Agriculture Nursery PR to IAR--funding change - 80.0 Travel - 10.5 Contractual - 8.1 Commodities - 1.0 State Fairs Reduce 10% - 9.8 Fire Suppression - Front Section Disallowed GF increment -1,919.5 -3,751.0* *A total of $108.2 was subsequently (see below) restored by an amendment. New total for reductions when amendment amount restored is -$3,642.8. Co-chair Pearce also advised of the following additional changes in the Senate budget: Recorder's Office Restore Nome Recorder's Office $ 35.0 Commissions The Senate budget did not eliminate funding for CACFA of $89.4. D.G.G.S. The Senate budget did not reduce the program receipt increment of $75.0 Co-chair Pearce next MOVED for adoption of an amendment to delete subcommittee reductions in travel, contractual, and commodities for the Parks Management BRU and restore $108.2. She voiced her understanding that with restoration of those funds, the department would not be closing any parks. No objection having been raised, the amendment was ADOPTED. Co-chair Pearce directed attention to the following standard intent: It is the intent of the legislature that should funding be insufficient for the department to meet its fire fighting responsibilities, funding will continue to be available by utilizing the disaster declaration process outlined in the current funding agreement. If necessary, the department will submit a supplemental request to the 1995 legislature. Co-chair Pearce then directed attention to an additional item of intent: It is the intent of the legislature that the Division of Parks and Outdoor Recreation request program receipt authority from Legislative Budget and Audit to receive and expend up to $200,000 in day-use fees, if they are collected this summer, so that no parks will be closed. She then MOVED and requested unanimous consent for adoption of the foregoing intent. No objection having been raised, the intent was ADOPTED. Co-chair Pearce MOVED for incorporation of the subcommittee budget for the Dept. of Natural Resources into SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF MILITARY AND VETERANS AFFAIRS Co-chair Frank advised of the following subcommittee changes to the budget: Department-wide Denied health insurance premium increases - 17.2 Disaster Planning & Control Change in funding source: decrease GF of ($393.6) and increase oil hazard spill response reserve fund $393.6. Decrease GF ($286.5) and increase disaster relief funds $286.5 General Fund Increment Add a grant for American Red Cross 100.0 Office of the Commissioner Eliminate secretarial position - 39.4 Army Guard Facilities Maintenance Reduce maintenance - 260.6 The Co-chair further referenced four items of intent: 1. Limiting the number of state positions at the King Salmon Air Base to three. 2. Requiring utilization of local residents for the work force for King Salmon Air Base. 3. Requesting that the department rent or lease unused space in its facilities when such an arrangement would not compete with the private sector, would not impact department operations, and would save operational costs. 4. Requesting that the department hire staff members from the same ethnic groups and in approximately the same ratios as youths served by the Youth Corps Component. Co-chair Pearce MOVED for incorporation of the subcommittee budget, together with proposed intent, into SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. LEGISLATURE Co-chair Frank referenced a handout (copy of file) and explained that the overall attempt was to return to FY 93 levels. That was achieved by the following funding: Legislative Budget and Audit $2,704.60 Legislative Finance - Admin. 1,217.50 Senate Finance 900.00 House Finance 1,200.00 LBA Committee Expenses 250.00 Legislative Council Salaries & Allowances 4,015.70 Administrative Services 4,100.00 Public Services 2,100.00 Legal Services 1,625.00 Session Expenses 5,656.60 Council & Subcommittees 614.00 Legislative Research 681.00 Legislative Operating Budget Senate Operating Budget 2,150.00 House Operating Budget 2,150.00 Ombudsman 1,250.00 Senator Kelly inquired concerning the difference between current year and FY 95 funding. Co-chair Frank advised that FY 94 authorized $41 million. The subcommittee target for FY 95 was $30.6. Senator Kelly asked if any other agency sustained a higher cut than the legislature. Co-chair Pearce responded negatively. Co-chair Frank generally concurred in that response but said he would have to review the other department budgets to be certain. Senator Kerttula MOVED for adoption of the subcommittee budget. No objection having been raised, the Senate budget for the legislature was incorporated within SCS CSHB 370 (Finance). DEPT. OF PUBLIC SAFETY Senator Rieger directed attention to a handout (copy of file) and advised of the following reductions: Fish and Wildlife Protection Enforcement/Investigative Services Roll back overtime to 9 hours - 40.0 HWCF rate reduction - 50.0 Denied health premium - 17.1 Denied in-service increment - 60.0 Director's Office Denied health premiums - 1.3 Reduce personal services - 14.8 Denied HWCF rate increment - 1.1 Aircraft Section Denied aircraft support needs - 63.0 Denied aircraft increased needs incre. - 143.6 Denied aircraft support incre. - 43.0 Denied health premium - 0.8 Marine Enforcement Denied health premium - 4.8 Denied patrol vessel costs incre. - 100.0 Denied trans. from enforcement - 38.3 Fire Prevention Fire Prevention Opt. Denied health premium - 5.5 Denied fire marshall increment - 72.9 Fire Service Training Denied health premium - 2.0 Reduced fire service training - 100.0 Highway Safety Planning Operations Denied health premium - 1.4 Reduce personal services - 2.0 Reduce travel - 4.1 Motor Vehicles Driver Services Denied health premium - 11.9 Field Services Denied health premium - 43.1 Denied pers.services incre. - 75.4 Reduce personal services - 100.0 Administration Denied health premium - 6.3 Alaska State Troopers Detachments Denied health premium - 50.7 Fund change from GF to GFPR -1,015.3 Criminal Investigations Denied health premium - 7.2 Reduce elective narcotics enforcement -1,670.3 Director's Office Denied health premium - 4.3 Judicial Services - Anch. Denied health premium - 3.4 Prisoner Transportation Denied cost increment - 6.5 Search and Rescue Reduce travel - 13.0 Narcotics Task Force Fund change from GF/M to GF/PR - 150.0 Commercial Vehicle Enforcement Denied HWCF rate increase - 1.1 VPSOs Support Denied health premium - 1.8 Administration Denied health premium - 1.3 Alaska Police Standards Denied health premium - 0.9 Domestic Violence and Sexual Assault Fund Change from GF to PFD fund - 90.0 Statewide Support Commissioner's Office Denied health premium - 3.6 Training Academy Denied health premium - 1.5 Reduce overtime for ALETS training - 11.0 Administrative Services Denied health premium - 11.8 Denied central support increment - 178.5 Denied risk mgmt & HWCF increment - 10.1 Laboratory Services Denied health premium - 10.2 Denied DWI enforcement increment - 53.0 APSIN - Denied health premium - 4.2 Building Security/Maintenance Delete funding for building security - 54.9 Alaska Criminal Records & ID Denied health premium - 8.1 Denied fingerprint system increment - 57.2 Delete criminal records analyst - 81.1 Senator Rieger further advised of the following increments: Alaska State Troopers Detachments - Personal services increment 50.0 VPSOs Contracts - Add I/A receipt authority 100.0 Contractual increment 20.0 Domestic Violence & Sexual Assault - Grants 20.0 He then noted general fund reductions of $4,277.6-- approximately $50.0 below the Senate cap. Senator Kerttula raised questions regarding reductions in aircraft components. Senator Rieger voiced his belief that the department places an "extremely high priority on safety." When budget increases are denied, that usually has the effect of reducing flying hours. In general, the same funding was carried forward, but increments were denied. Senator Rieger subsequently disclosed that he is on the board of AWAKE, one of the boards receiving grants from the Council on Domestic Violence and Sexual Assault. Senator Rieger MOVED that subcommittee recommendations for the budget for the Dept. of Public Safety be incorporated within SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF HEALTH AND SOCIAL SERVICES Senator Rieger advised of the following reductions: Assistance Payments ADFC - Reduced increment -4,005.6 APA - Reduced increment -1,061.7 Medical Assistance Medicaid Non-Fac. Change timing of waiver year -3,000.0 Reduce utilization increment -12,524.5 Medicaid Facilities Reduce utilization increment -6,940.5 General Relief Medical Denied formula increment - 994.5 Medicaid State Programs Reduce formula increment - 200.0 Waivers Services Change timing of waiver year -3,000.0 Elderly & adult waiver year 25% red. - 900.0 Public Assistance Administration Alaska Work Programs Refinance 4 JOBS case managers - 200.0 Medical Assistance Administration Med.Assist.Central Denied health ins. increase - 3.6 Claims Processing Denied health ins. increase - 5.3 Certification & Licensing Denied health ins. increase - 1.7 Medicaid Rate Advisory Comm. Denied health ins. increase - 2.0 Hearings & Appeals Denied health ins. increase - 0.9 Medicaid Waivers Auth. Denied health ins. increase - 0.9 Reduced travel - 4.0 Audit - required every other year - 50.0 Purchased Services Adult Services Travel reduced - 4.0 Foster Care Cost of living increment reduced - 717.1 Residential Child Care Reduce empty Medicaid beds - 250.0 Division of Family and Youth Services Southcentral Region Denied health ins. increase - 66.6 Northern Region Denied health ins. increase - 45.0 Reduced travel - 8.0 Southeastern Region Denied health ins. increase - 23.5 Reduced travel - 4.0 Central Office Denied health ins. increase - 12.2 Reduced travel - 35.0 Youth Facility Services McLaughlin Youth Center Reduced health ins. increase - 50.8 Fairbanks Denied health ins. increase - 34.4 Nome Denied health ins. increase - 11.2 Increase vacancy factor to 3% - 11.8 Johnson Youth Center Denied health ins. increase - 14.1 Bethel Youth Facility Denied health ins. increase - 22.8 Human Services - Community Matching Grant Transfer to Anch & Fbks Components -1,370.1 Maniilaq Alcohol & Drug Abuse-Reduce grants by 4% - 41.0 Norton Sound Alcohol & Drug Abuse-Reduce grants by 4% - 22.5 SEARHC Alcohol & Drug Abuse-Reduce grants by 4% - 13.8 Tanana Chiefs Conference Alcohol & Drug Abuse-Reduce grants by 4% - 20.7 Tlingit-Haida Alcohol & Drug Abuse-Reduce grants by 4% - 0.5 Y-K Health Corp Alcohol & Drug Abuse-Reduce grants by 4% - 40.0 State Health Services Nursing Denied health ins. increase - 66.3 Reduced travel - 25.6 WIC - Reduced travel - 2.1 Matern.Child & Fam. Health Denied health ins. increase - 16.8 Reduced travel - 12.9 Laboratory Services Denied health ins. increase - 16.7 Reduced travel - 10.2 Public Health Admin. Services Denied health ins. increase - 3.4 Reduce travel - 11.2 Reduce personal services - 62.5 Epidemiology Denied health ins. increase - 5.8 Reduced travel - 30.0 EMS Training & Licensing Denied health ins. increase - 3.2 Reduced travel - 3.8 Bureau of Vital Statistics Denied health ins. increase - 7.0 Reduce contractual (Cmptr Sys) - 25.0 Reduced travel - 1.9 Post Mortem Exams Denied health ins. increase - 0.3 Reduced travel - 0.8 Denied increment - 200.0 Home Health Services Denied health insurance increase - 1.0 Health Grants EMS Grants - Reduce travel - 5.0 Alcohol & Drug Abuse Administration Denied health ins. increase - 7.8 Reduced travel - 7.3 Increase vacancy to 3% - 10.4 Alcohol Safety Action Program Denied health ins. increase - 4.4 ADA Grants - Reduce grants by 4% - 800.0 Community Mental Health Grants General Grants Denied rural Hum.Svcs.increment(I/A) - 425.0 Denied transfer from API -1,711.0 Psychiatric Emergency Services Denied transfer from API - 600.0 Services to Chronically Mentally Ill Denied transfer from API - 750.0 Desig. Eval.& Treatment Denied transfer from API - 400.0 Services/Emotionally Disturbed Youth Denied transfer from API -1,200.0 Community DD Grants Excess implementation funds - 850.0 HDC Clients/ Refinanced waivers - 300.0 Institutes and Administration Mental Health/DD Admin. Denied health ins. increase - 17.9 Denied transfer from API - 240.0 Reduced travel - 14.1 API Denied health ins. increase - 90.7 Denied API 2000 CIP increment - 105.0 Reduce increment - 450.0 Harborview Developmental Center Denied health ins. increase - 43.0 Denied main. status quo increment - 400.0 Transfer to Comm. DD grants -1,100.0 Transfer to services for the chronically mentally ill - 500.0 Administrative Services Commissioner's Office Denied health ins. increase - 3.2 Regulatory Compliance Denied health ins. increase - 0.4 Transfer to Commissioner's office - 99.9 Personnel/Payroll, health ins. increase - 6.1 Budget and Finance Denied health ins. increase - 16.1 Denied transfer from API - 99.0 Gov.'s Council/Disabilities Denied health ins. increase - 0.2 Miscellaneous reduction - 10.0 Planning & Development Denied health ins. increase - 1.6 Facilities/CIP Costs Denied health ins. increase - 3.1 Alaska Mental Health Board Denied health ins. increase - 1.6 Reduce travel - 3.2 Senator Rieger then advised of a total general fund reduction of $26,991.8. He further advised of the following additional changes within the Senate budget: Adult Public Assistance Allowed for 5% caseload growth. Waiver Services Refinance DD & Complex Kids Waivers Send PJ choice to DD GR/RSA Claims Processing, Medical Assistance Managed care case workers 2,000.0 Anchorage Human Services Block Grant 1,490.9 Fairbanks Human Services Block Grant 440.4 Maternal Child & Family Health Denied pers.services, contr.trans. Increase contractual 25.0 Alcohol Safety Action Program Fund change from GF to GF/PR Services to Chronically Mentally Ill Transfer from Harborview - Sourdough 550.0 Community DD Grants Transfer from Med.Assist/Waivers 1,644.6 Waivers savings/maintain effort 250.0 Transfer in from Harborview 1,100.0 Harborview Developmental Center Fund Change-Day Treatment Authorization to rec. I/A receipts 1,650.0 Commissioner's Office Transfer in from regulation compliance 99.9 Senator Sharp asked if Human Services Community Matching Grants for Anchorage and Fairbanks were based on a population allocation. Senator Rieger advised of a formula in effect in FY 93 and a different formula for FY 94. Of the two, one favored Anchorage and the other Fairbanks. Proposed funding took numbers favoring each community, respectively, and reduced the funding by 10%. Senator Rieger further advised of intent language requiring that the grant line be matched on a 70/30 basis. Senator Rieger MOVED that subcommittee recommendations for the Dept. of Health and Social Services budget be incorporated within SCS CSHB 370 (Finance). Senator Kerttula OBJECTED. Co-chair Frank called for a show of hands, and the motion CARRIED on a vote of 4 to 1. (Co- chair Pearce was temporarily absent from the meeting, and Senator Jacko did not attend.) DEPT. OF ENVIRONMENTAL CONSERVATION Co-chair Frank directed attention to a handout (copy on file) and advised of the following reductions: Information & Admin. Services - 357.3 Response Fund Administration - 552.7 Regional Management - 8.0 Environmental Quality Director - 246.7 Wastewater & Water Treatment - 11.8 Solid & Hazardous Waste Management - 370.8 Air Quality Management - 903.4 (Excess Program Receipts) Water Quality Management - 42.0 Spill Prevention/Response Director - 239.8 Contaminated Sites - 283.9 Underground Storage Tanks -1,221.1 Government Preparedness - 230.2* (See below for subsequent action re: this component.) Environmental Health Director - 6.5 Animal Health & Dairy Industry - 19.4 Meat and Poultry Inspection - 2.2 Seafood and Sanitation Inspection - 335.7 Palmer Laboratory - 20.4 Facility Construction/Operations - 103.5 (Remote Maintenance Workers Retained) The foregoing resulted in a general fund reduction of $1,100, program receipt reduction of $1,027.0, interagency receipt reduction of $191.0, and reduction of $2.2 in general fund match. Co-chair Frank next directed attention to the following intent requested by Senator Adams: It is the intent of the legislature that, beginning in FY 96, the Remote Maintenance Worker (RMW) program be administered by the Dept. of Environmental Conservation on a matching grants basis. It is intended that grantees will use local or federal sources to offset state funding reductions to maintain RMW services at or above FY 95 levels. Co-chair Pearce MOVED for adoption of the foregoing intent. No objection having been raised, the intent was ADOPTED. Co-chair Pearce then MOVED for adoption of subcommittee recommendations for the Dept. of Environmental Conservation. Co-chair Frank noted need to effect a corresponding change in the Environmental Conservation budget to match funding for depots and corps in the Dept. of Military and Veterans Affairs budget. Co-chair Pearce WITHDREW her motion for adoption of the Dept. of Environmental Conservation budget. Co-chair Pearce then MOVED to appropriate $393.6 in 470 funds to the Dept. of Military and Veterans Affairs for disaster planning and control. No objection having been raised, the motion CARRIED. *Co-chair Pearce next MOVED to increase interagency receipts for the Government Preparedness component by $34.1 from the 470 fund. No objection having been raised, the motion CARRIED. End, SFC-94, #68, Side 2 Begin, SFC-94, #70, Side 1 Co-chair Pearce further noted that should SB 215 pass the legislature, flexibility will be needed in the front section of the budget to ensure proper accounting in the transition year. She then MOVED for adoption of that intent as a general motion for the Dept. of Environmental Conservation budget. No objection having been raised, the motion CARRIED. Co-chair Pearce MOVED for incorporation of the subcommittee budget for the Dept. of Environmental Conservation within SCS CSHB 370 (Finance). No objection having been raised, IT WAS SO ORDERED. DEPT. OF COMMUNITY AND REGIONAL AFFAIRS Co-chair Pearce directed attention to a handout (copy on file) and explained that the Senate cap called for a $610.0 reduction in general funds. She then advised of the following changes in the Dept. of Community and Regional Affairs Budget: Office of the Commissioner Eliminate Deputy Commissioner - 108.1 Restore Ak.Legal Services to FY 94 level 475.0 Administrative Services Eliminate Accounting Position - 55.2 Designated Grants Component Restore approximately 70 percent of FY 94 level 674.2 At this point in the meeting Co-chair Pearce advised that while she was not a member of the subcommittee formulating the budget for the Dept. of Community and Regional Affairs, she wished to disclose her membership on the Board of Directors of the Special Olympics, one of the grantees incorporated within the subcommittee budget. Training and Development Eliminate Deputy Director - 96.3 State Assessor Component Eliminate Administrative Assistant for Property Tax 46.0 Statewide Assistance Component Reduce personal services vacancy factor to 3.5 percent - 11.5 Child Care Component Hold grant amount constant all year long - 300.0 Day Care Assistance Programs Component Decrease fund for holiday closures - 300.0 Shift responsibility for registration to parents - 100.0 Head Start Grants Component Add funding to support new programs 159.9 Community Development Assistance Component Deny auth. for 2nd yr of Cottage Light Industry - 200.0 Rural Energy Program Deny general fund increment for CIP receipts - 525.7 Fund circuit rider program within DCRA/DOE 425.0 Health Insurance Premiums Decrease requested premium increases - 46.9 Co-chair Pearce next advised of the following net zero fund transfers between components and net zero transfers between fund sources: Commissioner's Office - 33.0 Energy Operations 33.0 Commissioner's Office 33.0 Community Development Assistance - 33.0 Delete two development specialist positions - 136.1 GF Add two engineer positions 136.1 PPF Remove loan specialist from general fund - 61.6 GF Add loan specialist to power projects fund 61.5 PPF Remove financial analyst from general fund - 48.7 GF Add financial analyst to bulk fuel revolving fund 48.7 BFRLF Remove senior economist from general fund - 102.9 GF add senior economist to power projects fund 102.9 PPF Co-chair Pearce further advised of intent language relating to: The State Assessor Component Child Care The Day Care Assistance Program Head Start Grants Energy Operations Component - Circuit Rider Program Power Cost Equalization In her concluding remarks, Co-chair Pearce advised that the subcommittee budget is approximately $14.0 under the Senate cap. Co-chair Pearce next directed attention to proposed amendments. She explained that Amendment 1 would add the following projects under designated grants: Maniilaq Inupiat Ilitqusiat Youth/Elder Program 35.0 Korean Community of Anchorage--Operations 19.6 and effect the following reduction: Under the Energy Division Reduce equipment line -40.0 The department has agreed to the foregoing reduction. That reduction together with the foregoing additions brings the subcommittee budget to the Senate cap. Co-chair Pearce then MOVED for adoption of Amendment No. 1. No objection having been raised, Amendment No. 1 was ADOPTED. Senator Kerttula MOVED for adoption of Amendment No. 2 to add $28,727.8 to municipal assistance and revenue sharing. He explained that the amendment would effect a 10% rather than 20% reduction from previous year funding. He then MOVED for adoption of a total of $65,449.6. Senator Rieger voiced his understanding that Legislative Finance Division would spread the $65.4 million figure appropriately to reflect the 10% reduction between the two programs. Co- chair Frank concurred. He then called for objections to the motion. No objection having been raised, Amendment No. 2 was ADOPTED. Senator Kerttula directed attention to Amendment No. 3 and MOVED to restore the $30.0 job training grant to Perseverance Theatre. He explained that the grant would allow the non-profit, professional theatre to leverage federal funds for its program. Co-chair Frank requested that Amendment No. 3 be HELD until later in the meeting. (Amendment No. 3 was not subsequently addressed.) Co-chair Pearce MOVED and asked for unanimous consent for adoption of Senate funding of the Dept. of Community and Regional Affairs budget. No objection having been raised, the budget was ADOPTED for incorporation into SCS CSHB 370 (Finance). DEPT. OF COMMERCE & ECONOMIC DEVELOPMENT Co-chair Pearce directed attention to a handout (copy of file). She further advised of the following changes in the subcommittee budget: Economic Development Fisheries Development Specialist - 65.0 International Trade - 14% Reduction Move director back to Anchorage - 113.0 Reduce travel 10% - 6.0 Reduce office rent/opt expenses - 100.0 Tourism Reduce travel 10% - 11.9 Film office - 25.0 Partially restore ATMC cut 2,000.0 Add Alaska Visitor Stat. Program 214.2 Occupational Licensing Business licensing increment - 33.0 ASMI Delete unrestricted GF - 49.6 Delete unrealized GF/PF -1,200.0 The subcommittee budget of $46,359.2 totals slightly less than the $46,365.6 cap. Co-chair Pearce next MOVED for adoption of Amendment No. 1 for the international trade component. She explained that the amendment would retain the 10% travel reduction of 6.0 and thereafter effect an unallocated reduction of 213.0. While the total component reduction would remain 219.0, Amendment No. 1 would allow the Governor's Office and the division of international trade to determine how to effect the cuts. Co-chair Pearce stressed that both the House and Senate have made it clear that the director should return to Anchorage. No objection having been raised, Amendment No. 1 was ADOPTED. Co-chair Pearce MOVED for adoption of the Senate budget for the Dept. of Commerce and Economic Development. No objection having been raised, the budget was ADOPTED for incorporation within SCS CSHB 370 (Finance). TELECOMMUNICATIONS - Agencywide Reduction Co-chair Frank directed attention to a handout (copy on file) which he explained sets forth reductions to various departments. Co-chair Pearce MOVED for adoption of reductions set forth on the handout. No objection having been raised, IT WAS SO ORDERED. INTENT Co-chair Pearce next directed attention to a packet of intent language. The following items of intent were MOVED and ADOPTED: Dept. of Transportation and Public Facilities - Maintenance of the Denali Highway between Cantwell and Valdez Creek Mine access road. University of Alaska, Fairbanks Rural Colleges Define Tanana Valley Campus as a separate component. Senator Kelly OBJECTED. Co-chair Frank asked that intent for the University be temporarily HELD in abeyance. Senator Kelly later WITHDREW his OBJECTION, and the foregoing intent for the University was APPROVED. Dept. of Administration - Leasing and Facilities It is the intent of the legislature that each new or renewing lease be negotiated to ensure the consolidation of existing space by not less than 10%. Dept. of Administration Public Defender Agency Office of Public Advocacy The agencies are to request authority to receive GF/PR from recovery of appointed counsel costs via Legislative Budget and Audit Committee. Dept. of Commerce and Economic Development Division of Tourism Funding of $125.0 is to be utilized for development of a highway marketing plan based on the following: $25.0 to sustain Alaskan participation in the joint highway marketing organization between the Yukon Territory, Alaska, and British Columbia. $65.0 to increase production and distribution of Tourism North's publication "North to Alaska." $35.0 to attend major auto/RV events and advertise through "highway road shows" and highway publications. Dept. of Public Safety Eight items of intent as follows: Fish and Wildlife Protection Enforcement and Investigative Services - Operations may be increased from sources other than GF. Dept. shall bring revised program requests to the LBA committee in an amount up to $1,200,000. Marine Enforcement - Operations may be increased from sources other than GF. Dept. shall bring revised program receipt requests to LBA in an amount up to $250,000 from new assessments, such as crab pots or fishing vessel licenses. Highway Safety Planning Agency Of the Section 153, Title 23, ISTEA increment, $1,500,00 is to be used for safety turnouts and signage along the Seward Highway, including $500,000 for the Potter Road turnout. Alaska State Troopers - Director's Office Upon passage of SB 365, a portion of GF/PR is for administrative costs. The department is authorized to RSA, to the extent that program receipts reduce need for general fund support, the funds to enforcement BRUs including the Alaska State Troopers, Fish and Wildlife Protection and Village Public Safety Officers. Village Public Safety Officers - Contracts Transfer of interagency receipts from the Director's Office to the contracts component in the Village Public Safety Officers BRU is authorized if additional general fund program receipts are received as a result of passage of SB 365, and such program receipts reduce the need for general fund support of this component. Violent Crimes Compensation Board It is the intent of the legislature that an amount equal to twenty-five percent of additional funds received as a result of passage of HB 119 (day fines) be appropriated to this component, in the front section of the budget. This amount is estimated by the Court System to equal $100,000. Council on Domestic Violence and Sexual Assault It is the intent of the legislature that an amount equal to twenty-five percent of additional funds received as a result of passage of HB 119 (day fines) be appropriated to this component, in the front section of the budget. This amount is estimated by the Court System to equal $100,000. Statewide Support - Administrative Services A portion of the GF/PR is for administrative costs associated with passage of SB 365. The department is authorized to RSA funds, to the extent that such program receipts reduce need for general fund support, to enforcement BRUs, including the Alaska State Troopers, Fish and Wildlife Protection, and Village Public Safety Officers. Senator Kerttula voiced OBJECTION to Intent No. 3 relating to safety turnouts and signage along the Seward Highway and Potter Road, but he subsequently WITHDREW his OBJECTION. No objection having been raised, all eight items of intent were ADOPTED. Dept. of Health and Social Services Co-chair Pearce next directed attention to seven items of intent for the Dept. of Health and Social Services. Senator Rieger asked that Intent No. 6 (Harborview receipt of Community Development Grant I/A receipts) be WITHDRAWN since the interagency receipt authority mentioned therein is already included in the budget. Senator Kerttula voiced OPPOSITION, on the basis of equity, to block grants to Anchorage and Fairbanks. Co-chair Pearce commenced a reading of the remaining six items of intent. An overview of that language follows: Medicaid Assistance-Medicaid Non-Facility It is the intent of the legislature that the department use managed care case workers for utilization control and to direct clients to cost- effective treatment. Medical Assistance-Medicaid Facilities It is the intent of the legislature that the department use managed care case workers for utilization control and to direct clients to cost- effective treatment. Anchorage Human Services Block Grant It is the intent that funds are to be matched by the Municipality of Anchorage at a 70/30 percent, state/municipality match. Fairbanks Human Services Block Grant It is the intent that funds are to be matched by the City of Fairbanks North Star Borough at a 70/30 percent, state/city-borough match. Purchased Services - Residential Child Care The reduction in this component is intended to reduce the number of beds purchased from Alaska Children's Services and will not result in the reduction of purchased beds in other facilities. DEPT. OF FISH AND GAME Senator Kerttula renewed his MOTION for adoption of the funding statement relating to the Sikusuilaq hatchery (see pages 8 and 9 of these minutes for earlier discussion). Co- chair Pearce explained that the Senate budget contains money to fund the hatchery. The House budget initially deleted funding, added it back at the full committee level, and then took a 2.5% reduction. The department has indicated that if it must take the 2.5% cut, it would not fund Sikusuilaq. Senator Adams has requested, via Senator Kerttula, that the Senate budget include language requiring that the department allocate a minimum of $360.0 for operation of the hatchery. Co-chair Pearce advised that addition of the language is consistent with the Senate budget. In response to a question from Senator Sharp, Co-chair Pearce explained that the House budget cut $1.3 million while the Senate cut $2.2 million. Senate reductions were thus greater until the House took a 2.5% unallocated reduction. The House has now effected greater cuts than the Senate, but most of those reductions are unallocated. Senator Sharp voiced his understanding that addition of the proposed language would shield the Sikusiulaq hatchery from more than 2.5% of the unallocated reduction. Co-chair Frank called for objections to inclusion of the language. No objection having been raised, the motion CARRIED and the language was ADOPTED. At this point, Co-chair Frank directed that the meeting be briefly recessed prior to review of the front sections of the budget. RECESS - 11:40 P.M. RECONVENE - 12:20 A.M. FRONT SECTIONS MIKE GREANY, Director, Legislative Finance Division, and VIRGINIA STONKUS, fiscal analyst, Legislative Finance, came before committee to speak to front sections 1 through 40 of SCS CSHB 370 (Finance). Mr. Greany directed attention to work draft "U," dated 4/20/94, and explained that Secs. 1, 2, 3, 4, 5, 7, and 8 reflect boilerplate language contained in the budget each year. He then proceeded to highlight the contents of remaining sections: Sec. 6. Allows for recovery of insurance payments, subject to LBA review. Sec. 9. Contains annual appropriations from the international airport revenue fund. Sec. 10. Appropriates general fund moneys to the debt retirement fund to cover AHFC lease payments for the City of Seward, City of Kenai, Dept. of Natural Resources, and Alaska Court System. Sec. 11. Appropriates general funds to the debt retirement fund for payments and trustee fees on state general obligation bonds. Sec. 12. Transfers funding from the earnings reserve account to the dividend fund for payment of permanent fund dividends and administrative costs. Sec. 13. Transfers inflation proofing moneys from the earnings reserve account to the principal of the Alaska permanent fund. Sec. 14. Appropriates interest earned on revenues to the principal of the Alaska permanent fund. Sec. 15. Funds required deposits to principal of the Alaska permanent fund under the designated percentage splits before and after December, 1979. Sec. 16. Appropriates lapses from the employment assistance and training program to the unemployment compensation fund. Sec. 17. Appropriates unrestricted mortgage loan interest payments and all other unrestricted receipts accruing to Alaska Housing Finance and all income earned on assets of the corporation to the Alaska housing finance revolving fund. A new subsection (d) appropriates $200,000,000 from available unrestricted cash in AHFC's general account to the state general fund for receipt during FY 95. This appropriation follows a report to LBA indicating a balance in excess of $500,000,000. Language allows for phased- in payments rather than a lump-sum payment to ease the impact on AHFC. Sec. 18. Appropriates moneys from the commercial fishing revolving loan fund to the fisheries enhancement revolving loan fund. Sec. 19. Appropriates the balance of the oil and hazardous substance release mitigation account to the oil and hazardous substance release response fund. The amount of $4,432,200 is also appropriated from the oil and hazardous substance release mitigation account to the storage tank assistance fund. Sec. 20. Appropriates the $25,900,000 from the oil and gas surcharge from the general fund to the oil and hazardous substance release response fund and further appropriates that amount based on a 60/40 split of the nickel surcharge to the following accounts: Oil and hazardous substance release prevention account $15,540,000 Oil and hazardous substance release response account $10,360,000 Sec. 21. Contains further appropriation language relating to the oil and hazardous substance release response fund and associated legislation (SB 215) impacting the fund. Sec. 22 Appropriates funds to the Dept. of Law and Dept. of Revenue for oil and gas litigation. The $15,265,000 total appropriation is comprised of $3,750,000 for the Dept. of Law from permanent fund corporate receipts and $11,250,000 from the constitutional budget reserve as well as a $265,000 general fund appropriation to the Dept. of Revenue. In response to an inquiry from Senator Rieger concerning the general funds, Mike Greany advised that general funds were utilized by the governor in his legislation. The House maintained general funds as a funding source but also applied a 2.5% unallocated reduction. The House, like the Senate, split Dept. of Law funding between the permanent fund and constitutional budget reserve. Funding from the constitutional budget reserve dropped out of the House budget when the three-quarter vote was not garnered. Co- chair Frank indicated that handwritten numbers for permanent fund and constitutional budget reserve funding for Dept. of Law reflect a compromise. JIM BALDWIN, Assistant Attorney General, Dept. of Law, advised of his understanding that most of the funding to the Dept. of Revenue would provide for contractual services relating to tax cases. Sec. 23. Appropriates $3,599,600 for fire suppression. Mike Greany explained that it would "match up with, but not duplicate," amounts incorporated within the subcommittee budget for the Dept. of Natural Resources. It is funded here rather than in the back pages of the budget. Sec. 24. The $22,150,400 appropriation for information services must match-up with subcommittee funding for Dept. of Administration telecommunications and data processing charge backs as well as the amendment effecting an agencywide reduction. Mr. Greany then requested latitude to match those dollars in finalizing the Senate budget. Sec. 25. Contains the $28,397.2 general fund appropriation to the Alaska marine highway system which funds a portion of system operations. The other portion is funded from marine highway revenues. Senator Kelly inquired concerning last year's figure. FRED FISHER, fiscal analyst, Legislative Finance Division, advised of $28,718.2. Senator Kerttula voiced his understanding that revenues for the system may be projected at a higher level for the coming year and thus cover the reduction from FY 94 to FY 95. Sec. 26. Appropriates $1,100,000 from the mental health trust income account to the unreserved portion of the general fund for statewide indirect cost recovery for mental health programs. Sec. 27. Appropriates receipts of the tank registration fee program to the storage tank assistance fund. The estimated amount is $450.0. Sec. 28. Extends the lapse date on funding for the governor's safety conference. Mike Greany explained that the conference straddles fiscal years. The administration will commence collecting funds this year for use in the next fiscal year. Sec. 29. Appropriates $8,000,000 of surplus AETNA reserves in the group health and life benefits fund to the Office of Management and Budget to allow an offsetting general fund reduction of $8 million to be calculated and apportioned out to agencies paying insurance premiums. This differs from the House approach and that of the governor where moneys were appropriated from the reserve to the general fund. Mr. Greany advised that the Senate "approach actually takes it as a reduction from the budget," since it offsets general funds. End, SFC-94, #70, Side 1 Begin, SFC-94, #70, Side 2 Sec. 30. Rather than request a new appropriation this year for the disaster relief fund, Sec. 30 simply rolls the FY 94 balance forward into FY 95. This approach appears both in the governor's and House budget. Sec. 31. Rolls Alaska Public Utilities Commission moneys forward into next year as an offset to amounts the commission would assess to regulated utilities for commission costs. Sec. 32. Appropriates $65,000 from the rural electrification revolving loan fund to the general fund. Sec. 33. This section,appropriating moneys from the earnings reserve account to the Alaska Permanent Fund Corporation for payment of investment management fees, should be deleted based on committee action incorporating the subcommittee budget for the Dept. of Revenue. That budget appropriates approximately $22 million for these fees. Sec. 33 is thus redundant. Co-chair Pearce MOVED, and asked unanimous consent to delete Sec. 33 from SCS CSHB 370 (Finance), "U" version. Senator Kelly asked if funding for fees contained within the Dept. of Revenue budget was from the earnings reserve account. Mr. Greany responded, "These are the corporate receipts- -other funds." Senator Kelly asked why the subcommittee took that approach. Mr. Greany explained that while he could not speak for the subcommittee, the general argument would be that by placing the funding in the back pages, a specific, known amount is appropriated versus a blanket appropriation in the front section. No objection to deletion of Sec. 33 having been raised, it was DELETED. Sec. 34. Contains annual language appropriating shared taxes. Specific dollars amounts are included in back pages. Front section language is controlling. Back section funding is, for information purposes, the estimated amount of the shared taxes. The estimate for FY 95 is approximately the same as last year. Sec. 35. Provides language appropriating the salmon enhancement tax--private aquaculture association moneys. Sec. 36. Rolls FY 94 ASMI seafood marketing assessment collections into FY 95. Sec. 37. Reflects a new section based on a recent audit. The audit highlighted the fact that funding from the real estate surety fund requires an appropriation. Sec. 37 provides that appropriation to the Dept. of Commerce and Economic Development. The appropriation was not part of the governor's budget. The House incorporated the appropriation as an amendment but included a provision requiring LBA review and approval. Sec. 38. DAVE SKIDMORE, aide to Co-chair Frank, explained that appropriations and language within Sec. 38 and its subsections relate to SB 378. Relevant portions of that bill shorten the length of time before permanent fund dividends forfeited by convicted and incarcerated felons are available for appropriation. If the bill passes, moneys that would normally be available in FY 96 will become available in FY 95. Two specific purposes and amounts are identified: Misdemeanant Services $1,817,500 Community Residential Center Substance Abuse Counseling/Services 175,200 If additional funding is available from dividends, the general fund appropriation to the Dept. of Corrections would be reduced by the amount of the excess. If less money is available, funding for the above-noted services would be reduced on a prorata basis. Sec. 39. Mike Greany explained that the $37,600,000 appropriation from the investment loss trust fund to the general fund reflects part of the settlement with Executive Life. Additional funding from the settlement will be forthcoming and available for future appropriation. Subsection (b) appropriates $60,000,000 from the Alaska Industrial Development and Export Authority revolving fund to the general fund. Mr. Greany suggested that language within the subsection be deleted and replaced with wording similar to that utilized in Sec. 17 (d) to effect the appropriation from AHFC. The appropriation from AIDEA would thus be structured so that moneys would flow to the general fund as they are available and would in no way impair the Authority's bond rating. Co-chair Pearce MOVED to delete Sec. 39(b) language at page 10, lines 2 and 3 of SCS CSHB 370 (Finance), work draft "U" and replace it with language inherently like that for AHFC in Sec. 17(d). She stressed that the amount to be appropriated in the new Sec. 39(b) is $60,000,000. Mike Greany explained that subsection 39(c) states that amounts necessary to balance the FY 95 budget (considering all revenue sources) would come from the constitutional budget reserve fund, subject to provisions of sec. 17(c) which require a three- quarter vote. Sec. 40. Later in the meeting, Senator Rieger asked why appropria- tions within Secs. 24 and 25 were included within nonlapsing provisions of AS 37.25.010. Mike Greany explained that the appropriations capitalize funds. FRONT SECTION AMENDMENTS Co-chair Frank directed attention to Amendment No. 1 and explained that it attempts to track House action appropriating $68.7 million from the constitutional budget reserve (art. IX, sec. 17) to the general fund for oil and gas litigation from July 1, 1990, through February 15, 1994, that is attributable to the constitutional budget reserve fund. That would reduce the amount required under Sec. 39(c) to balance the FY 95 budget. Co-chair Pearce MOVED for adoption of Amendment No. 1 (8-GH2027\U.1, Utermohle, 4/20/94). No objection having been raised, Amendment No. 1 was ADOPTED. Senator Rieger noted that in explaining Sec. 39(c), Mr. Greany advised of need for a three-quarter vote. The Senator then suggested that need for that vote is not clear for either Sec. 39 or the new section proposed by Amendment No. 1 and further voiced his belief that a three-quarter vote would not necessarily be required. Co-chair Frank next directed attention to Amendment No. 2. Senator Rieger MOVED for adoption of Amendment No. 2, appropriating 25% of day-fine collections from the general fund to the Dept. of Public Safety, Violent Crimes Compensation Board, and 25% to the Council on Domestic Violence and Sexual Assault. He explained that Amendment No. 2 parallels action taken on HB 119. Senator Kelly inquired concerning the total amount involved. Senator Rieger advised of Dept. of Law estimates of approximately $400.0. For the coming year, that amount is likely to be significantly less since the court must adopt court rules prior to implementation. Co-chair Frank voiced reluctance over adoption of the amendment and suggested that day-fine funding for the Violent Crimes Compensation Board and the Council on Domestic Violence and Sexual Assault be limited to $100.0 each. He then MOVED for adoption of that conceptual amendment within Amendment No. 2. No objection having been raised, the conceptual amendment to Amendment No. 2 was ADOPTED. Co-chair Frank then called for objections to adoption of Amendment No. 2, as amended. No objection having been raised, Amendment No. 2 was ADOPTED AS AMENDED. VIRGINIA STONKUS, fiscal analyst, Legislative Finance Division, highlighted the following differences between the front section of the Senate budget and that of both the House and the governor. 1. The governor's bill contains a section relating to debt retirement. That section was deleted and addressed in HB 505. 2. Sec. 33 of the House bill relates to the four-dam- pool transfer fund and follows through on an LBA recommendation and enabling legislation. Since HB 372 has passed the House and is awaiting floor action for passage in the Senate, language embodied in the front section of the House budget is no longer necessary. It was thus eliminated from the front section of the Senate budget. Co-chair Pearce MOVED and requested unanimous consent that SCS CSHB 370 (Finance) pass from committee with individual recommendations. No objection having been raised, SCS CSHB 370 (Finance) was REPORTED OUT of committee. All members signed the committee report with a "do pass" recommendation with the exception of Senator Kerttula who signed "no rec." (Senator Jacko was absent from the meeting and did not sign the report.) ADJOURNMENT The meeting was adjourned at approximately 1:10 a.m.
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