Legislature(1997 - 1998)

03/22/1997 10:10 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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       SENATE BILL NO. 83                                                      
                                                                               
       "An Act making an appropriation for management fees for                 
  the  constitutional budget  reserve fund (art. IX,  sec. 17,                 
                                                                               
                                                                               
       Constitution of the State of Alaska); and providing for                 
  an   effective date."                                                        
                                                                               
  Co-chair Pearce convened the meeting.  She noted that  first                 
  on the agenda supplemental and RPL's would be taken up.  Any                 
  new items would also be taken up.  OMB was also  present and                 
  would be going through some priorities  of theirs' and three                 
  specific requests from Legislators.                                          
                                                                               
  Karen   Rehfeld,   Director,  Education   Support  Services,                 
  Department of Education  was invited to join  the committee.                 
  She reviewed  Department of  Education RPL's  and noted  the                 
  requests have been included in the FY '98 budget.  In FY '96                 
  the concern was  with the federal  shut down.  The  division                 
  was very conservative with it's use  of federal dollars.  It                 
  involved not only cuts  to the U.S. Department  of Education                 
  but also  Rehabilitation Services.   It was also  noted that                 
  the  Mt. Edgecombe boarding school would like to host summer                 
  activities.  Program  receipts would  come from Alaska  Arts                 
  Southeast and the  Sitka Skipper's Organization.   The final                 
  request  for  general fund  program  receipts for  the State                 
  museum.  The entrance fee to  the museums was increased last                 
  year from  $2 to $3/person.    This  generated approximately                 
  $80,000.                                                                     
                                                                               
  Senator Donley referred to a particular line item and wanted                 
  to  know where the computers were physically located for the                 
  museums.  Ms. Rehfeld said it was her understanding that the                 
  intention was to connect the Sheldon Jackson museum with the                 
  State  museum  in  Juneau.    They  were also  intending  to                 
  complete  a  project  automating   the  collections  on  the                 
  internet.  In response to a question from Senator Donley she                 
  said this did not relate to library services.                                
                                                                               
  Co-chair  Pearce referred  to  a 20  March  letter from  Dan                 
  Spencer with the Department of  Law involving two additional                 
  items; Cook vs. Bothelo which was discussed Thursday.                        
                                                                               
  Annalee McConnell, Director, Office of Management and Budget                 
  was invited to  join the committee.   She felt that  perhaps                 
  updated spread sheets  would be  more informative than  each                 
  time submitting a letter.  Judgments and claims were brought                 
  forward individually so  that the  Department did not  incur                 
  late payments.  Senator Phillips felt  there should be a cut                 
  off  date and  whatever remained  be  dealt with  next year.                 
  Senator Adams suggested the easiest way  might be to get the                 
  house bill and then have one big spread sheet.                               
                                                                               
  Ms.  McConnell  continued regarding  contractual obligations                 
  with property owners.   There was concern because this  item                 
  had not been fully funded.  A list of leases was provided to                 
  House Finance  with options  of prorating  payments for  the                 
  last couple months of the year,  not paying anything on some                 
  leases and etc.  She suggested  an update of the projections                 
                                                                               
                                                                               
  of the longevity bonus; estimating that there would probably                 
  be a $1.5 million not necessary  to fund the longevity bonus                 
  program in  FY '97  and it could  be done  as a  delete/add.                 
  That  could  be done  to cover  the  lease obligation.   The                 
  second item was disaster  relief.  She wanted noted  that if                 
  the $585,000 was not part of the FY '97 supplemental it will                 
  need to  be  added to  the budget  in FY  '98 creating  more                 
  pressure there.  The third item was increased fuel costs for                 
  the Marine  Highway.   Nancy Slagle explained   the  average                 
  price would  have  to  drop to  $0.65/gallon  if  the  House                 
  recommendation were to  be followed.  The  average price was                 
  $0.82/gallon  and if  that  trend  continued Marine  Highway                 
  would still have  to absorb because  that would result in  a                 
  $471,000 increase for the full year in fuel.  Marine Highway                 
  was not  asking to  increase their  supplemental; they  will                 
  absorb it.  However, they have already absorbed $1.7 million                 
  throughout FY  '97 and  it was  getting to  a real  pressure                 
  point.     In talking  to  Nancy Slagle  the recommendation,                 
  about fuel provided the house  committee suggesting it could                 
  be  reduced  to  $130,000,  was  done  on  a  straight-lined                 
  projection.    DOT has  a  much more  precise, sophisticated                 
  projection  process  including  actual   weeks  of  service,                 
  mileage and so  forth.  The  next item  referred to was  the                 
  McLaughlin and  Fairbanks Youth Facilities  security fences.                 
  She referred to a conversation with Senator Sharp for a less                 
  expensive way  to  do  the  Fairbanks security.    She  will                 
  discuss  the  matter further  with  H&SS and  advise Senator                 
  Sharp whether a gate instead of a full perimeter fence would                 
  be an acceptable  alternative.  She did,  however, encourage                 
  the committee to include these items  due to the pressure on                 
  the '98 budget (where it will have to be  moved if it is not                 
  done in  the supplemental)  and further  because they  would                 
  like  to  commence  the  procurement   process  as  soon  as                 
  possible.  In  response to a  comment from Senator  Phillips                 
  she said Co-chair  Hanley felt this  could be funded with  a                 
  portion of  the  '97  AHFC  monies  that  were  not  already                 
  appropriated.   There were $53  million that could have been                 
  appropriated in '97;  the Legislature did not  fully utilize                 
  that amount and co-chair Hanley left that open as a possible                 
  source.   She advised  that  they had  suggested the  police                 
  training academy be funded with that source of money.                        
                                                                               
  Senator Donley asked if this was an electronic fence or some                 
  special surveillance system.  Ms.  McConnell said neither of                 
  the facilities had full fences around them.  As Janet Clarke                 
  indicated the facilities were built as  an open campus.  Now                 
  we are seeing  violent offenders put there.   Senator Donley                 
  still felt the cost  for the fence system was  too expensive                 
  at $1.2 million.   Senator Torgerson said one would  have to                 
  figure out what  kind of  fence was needed.   Ms.  McConnell                 
  said  she  would  ask H&SS  to  provide  further information                 
  regarding the cost break down.                                               
                                                                               
  She  continued on to Alaska Psychiatric Institute RPL.  They                 
                                                                               
                                                                               
  would  be  receiving  more  in  third  party  payments  than                 
  expected  and it  was  necessary to  make  a funding  source                 
  change.  The  last item was  the training academy at  Sitka.                 
  They needed a new shooting range  and women's dorm.  Senator                 
  Phillips asked if other communities used   the Academy.  Ms.                 
  McConnell indicated that the northern  folks were trained in                 
  Anchorage  and  folks from  Southeast  and other  areas were                 
  trained  in Sitka.    He further  asked if  Anchorage Police                 
  Department used the Sitka facility.  Ms. McConnell indicated                 
  they did not.                                                                
                                                                               
  Ken Bischoff, Director, Administrative  Services, Department                 
  of Public Safety was invited to join the committee.  He said                 
  the Sitka academy  trained statewide except Anchorage.   The                 
  communities did pay travel and  expenses of officers as they                 
  could.  Funds also  came from the Police  Standards Training                 
  fund.    However,  some  municipalities   do  not  have  the                 
  resources to meet  necessary standards of the  Alaska Police                 
  Standards Council.  Traditionally there  had been some level                 
  of state  subsidy to  other municipalities.   Senator  Sharp                 
  asked the  percentage  of the  total operating  cost of  the                 
  facility  that  is program  receipts  from the  users.   Mr.                 
  Bischoff  said he believed  the percentage  is approximately                 
  one-third.                                                                   
                                                                               
  Senator Donley asked if there was State subsidy for room and                 
  board and Mr. Bischoff acknowledged to some degree they did.                 
  The  Senator further  inquired if  there had  ever  been any                 
  women recruits turned  away from  the academy. Mr.  Bischoff                 
  indicated there had  been.   He said there  were not  enough                 
  spaces to accommodate female recruits.                                       
                                                                               
  Senator Phillips asked about training  in other States.  Mr.                 
  Bischoff  said  a 12-week  training  in Alaska  cost $5,600,                 
  whereas the same session  in the State of Utah  cost $2,000.                 
  There  was a  set of  fixed  and variable  costs.   The full                 
  variable  cost for instructors to  be brought in, turning on                 
  the lights, providing  room and  board, were typically  paid                 
  for   through   the   Police   Standards   Council   or  the                 
  municipality.  Senator  Torgerson asked of the  one-third in                 
  program receipts how much was a $10 surcharge.  Mr. Bischoff                 
  said the surcharge  came from the Police  Standards Training                 
  fund.                                                                        
                                                                               
  Senator Donley asked what percentage  of all traffic tickets                 
  in alaska come from  the Anchorage area.  Mr.  Bischoff said                 
  approximately 45%.  Senator Donley noted all that money went                 
  for subsidizing the  academy however  Anchorage did not  use                 
  the academy.                                                                 
                                                                               
  Co-chair  Pearce  advised   that  any  further  supplemental                 
  requests from committee members or other  members it must be                 
  in her office by Monday along with any back-up material.  It                 
  would  then be made  available to all  committee members and                 
                                                                               
                                                                               
  she would  continue this  hearing until  next Wednesday,  26                 
  March.                                                                       
                                                                               
  (There was a brief recess to change co-chair.)                               
                                                                               

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