Legislature(2003 - 2004)
02/20/2004 09:03 AM 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. 313
"An Act making supplemental and other appropriations; amending
appropriations; making an appropriation to capitalize a fund;
and providing for an effective date."
SENATE BILL NO. 314
"An Act making supplemental and other appropriations; amending
and repealing appropriations; making appropriations to
capitalize funds; and providing for an effective date."
This was the first hearing for these bills in the Senate Finance
Committee.
Co-Chair Green noted that the committee would hear presentations
from the departments for funding requests in both bills.
Department of Administration
SB 313
Section: 1
Results Delivery Unit [RDU]: ETS
Supplemental Need: Appropriates the ACS disentanglement of
$3,477,647 from the general fund to the Information Services Fund
$3,447,600 general funds
$3,447,600 Total Funds
ERIC SWANSON, Director, Division of Administrative Services,
Department of Administration testified the amount of this item
represents two payments made by the Alaska Communication System
(ACS) to the State as part of a settlement agreement to end a
contractual relationship in which ACS provided telecommunication
services. He stated this transfer is necessary to offset costs
incurred during the transition to revert the internal systems to
the pre-contract state.
Co-Chair Green asked whether these expenditures have already been
made.
Mr. Swanson affirmed they had.
Co-Chair Green asked if the funding is necessary in the "fast
track" supplemental budget rather than the regular supplemental
budget.
Mr. Swanson responded it is necessary to receive the funds timely
to prevent cash flow problems.
Co-Chair Green asked if any portion of the funding could be
deferred to FY 05.
Mr. Swanson answered it could not.
Senator Olson asked the total cost of the settlement and
disentanglement.
Mr. Swanson replied that the State would receive $3,447,600 from
ACS, however the total cost to the State would exceed that amount.
Senator Olson asked if the difference would be a significant
amount.
Mr. Swanson estimated the actual expenditures would not be
significantly more than the settlement.
SB 314
Section: 1(a) and (b)
RDU: OPA
Supplemental Need: FY 04 projected caseload and case cost growth.
$800,000 general funds
$300,000 SDPR
$1,100,000 Total Funds
Mr. Swanson listed factors contributing to this supplemental
funding need. He stated that the previous fiscal year, the OPA
received two supplemental appropriations, the second of which of
$357,000 was not included in the base calculations for determining
the FY 04 appropriation. Secondly, he reminded that in past years
the OPA has received interagency receipts from the Department of
Health and Social Services to fund child custody cases; however,
this funding would not be forthcoming in FY 04. He noted this is
despite the continued caseload growth. He furthered that the
overall caseload continues to increase, with felony cases, the most
expensive to handle, increasing eight percent over the previous
year.
AT EASE 9:18 AM / 9:19 AM
JOSH FINK, Office of Public Advocacy, Department of Administration,
testified via teleconference from Anchorage that he was available
to answer questions. He pointed out that $700,000 of this request
is to offset interagency receipts not received to fund the Balloon
Project. He attributed the need for the remaining $300,000 to the
increased caseload over FY 03. He assured the OPA is "aggressively"
pursuing cost saving measures and efficiencies. He detailed the
increases of the past several years.
Senator B. Stevens asked the whether the FY 05 funding request
would be adequate for that budget year. He questioned whether the
Department would continue to submit supplemental requests every
year.
Mr. Fink deferred to Mr. Swanson.
Mr. Swanson responded that the Department has taken this
supplemental request into account when submitting the FY 05 budget
recommendations. He qualified that the actual caseload growth is
difficult to project and is therefore not factored into annual
budget requests. He reiterated that the OPA has "fundamentally
changed" it operating practices. He stated it is likely that a
supplemental request would not be necessary for FY 05.
Senator Dyson asked for clarification of the funds necessary for
the Balloon Project.
Mr. Fink had anticipated the OPA would receive less than $400,000
in interagency receipts to fund legal representation in Balloon
Project cases, although no such funding was received. He noted the
Public Defender's Agency did not receive any of this funding
either. Despite this, he stressed that both offices are
aggressively pursing those cases.
Senator Dyson shared that he was involved in the establishment of
the Balloon Project, with intent that it would be a one-time
project. However, he noted the program was first extended for
another year, and has continued to operate although has never been
reauthorized by the Legislature as a continuing project.
Co-Chair Green reminded that the budget subcommittee provided full
funding for the Balloon Project last session. She agreed that the
project was intended to have a two-year lifespan but instead has
"taken of a life of its own" and is no longer a project but rather
a program.
Co-Chair Green recalled discussions held in the budget subcommittee
the previous session that the actual number of cases for adoptee
was decreasing. She asked whether this is so.
Mr. Fink did not have the actual numbers of adoptions completed,
but stressed that the project has been successful. He noted that
the backload has been significantly reduced and therefore the
number of cases is fewer than in past years.
Co-Chair Green asked whether new full time staff were hired
specifically to administer the Balloon Project cases, with the
intent that the positions would be eliminated once the need
subsided.
Mr. Fink qualified that the Balloon Project began before his tenure
at the OPA. He understood that three staff positions were created,
although the caseload was distributed to all the guardian ad litem
positions. He emphasized that no positions solely perform Balloon
Project cases.
Co-Chair Green asked which types of cases have experienced the
largest increases.
Mr. Fink replied that the OPA has experienced a "natural increase"
in all caseloads.
Co-Chair Green assumed the OPA would not request any funding in
addition to this supplemental budget request.
SB 314
Section: 1(c)
RDU: Public Defender
Supplemental Need: FY 04 projected caseload and case cost growth.
$ 650,000 general funds
Mr. Swanson reiterated that funding from the Department of Health
and Social Services for the Balloon Project is no longer
forthcoming. He noted that both the Public Defender's Agency (PDA)
and the OPA are assigned these adoption cases. He also spoke to the
increased caseload the PDA is experiencing.
Co-Chair Green pointed out that the funding request is
significantly higher than the PDA's cost of the Balloon Project.
Mr. Swanson agreed, noting this request is for funding to address
the increases of all caseloads.
BARBARA BRINK, Director, Public Defender Agency, Department of
Administration, testified via teleconference from an offnet
location that caseload increase of approximately 1,000 new annual
cases, has been "rather astonishing" over the last two years.
Ms. Brink assured the Committee that the PDA is always taking steps
to reduce expenditures. She noted that vacancies have been unfilled
in eight offices, despite the increase this creates for the
remaining attorneys. She also informed that the PDA is refusing to
automatically accept clients whose cases relate to parole
violations. She stated that the Agency used to accept clients at
the request of parole officers. She remarked that the court must
establish a system to determine eligibility of these defendants.
Ms. Brink furthered that the PDA has reduced the number of
subscriptions, and that travel is limited to only what is
necessary. She stated that the PDA has increased its usage of
volunteers and uncompensated interns, has eliminated positions and
shortened office hours. She stated that all expenditures of over
$100 are reviewed in a three-step process. She also noted that the
PDA has begun charging private attorneys who accept cases for the
cost of duplicating the case file.
Senator Olson noticed that the practice of interagency receipts
transferred from the Department of Health and Social Services to
the PDA has been discontinued and asked the reason.
Mr. Swanson responded that those funds were no longer appropriated
to the Department of Health and Social Services, although he was
unsure the reason.
Department of Fish and Game
SB 313
Section: 3
RDU: Capital
Supplemental Need: Receipts from City and Borough of Juneau to
complete work at the indoor rifle range in Juneau. These receives
have already been received, and work at the rifle range is
scheduled to start early spring.
$ $75,000 Statutory Designated Program Receipts (SDPR)
KEVIN BROOKS, Director, Division of Administrative Services,
Department of Fish and Game, clarified that construction had begun
and that the range is nearly complete. He informed that these
additional funds became necessary due to difficulty in attaining
water; however, the City and Borough agreed to allow the facility
to link to the municipal water system and also to assist in funding
the process.
SB 314
Section: 6
RDU: Capital
Supplemental Need: Language change to FY 02 appropriation relating
to the use of proceeds from sale of vessels to also include repair
and maintenance of vessels
$ 0.0 Total Funds
Mr. Brooks informed that a replacement vessel was purchased before
the sale of the existing vessel. He noted that costs were incurred
to prepare the new vessel, including painting.
[NOTE: Audio recording interruption.]
Co-Chair Green commented that the supplemental request for this
Department is very different than in previous years.
Office of the Governor
SB 313
Section: 4
RDU: Elections
Supplemental Need: General funds needed for the Help America Vote
Act (HAVA) fund maintenance of effort. Some work on the upcoming
primary and general elections will take place during FY 04.
$ 180,000 general funds
LAURA GLAISER, Director, Division of Elections, Office of the
Lieutenant Governor, testified that the language is incorrect and
should read, "the sum of $180,000 is appropriated from the general
fund to the Office of the Governor, division of elections for the
operating costs of the division related to the primary and general
election for the fiscal year ending June 30, 2004." She clarified
the funds would be utilized for "maintenance of effort" based on
primary and general election expenditures.
Senator Olson asked if these funds are necessary in the fast track
supplemental budget.
Ms. Glaiser responded they are to allow for preparation for the
upcoming primary election. She explained that statutory
requirements necessitate the purchasing forms in FY 04 so they
could be delivered during FY 05.
SB 314
Section: 7
RDU: Elections
Supplemental Need: Additional Election Funds for improving
accessibility to voting locations
$100,000 Election Fund
Ms. Glaiser stated this request is for authorization to expend
grant funds for improved accessibility as part of the HAVA.
Department of Public Safety
SB 313
Section: 7
RDU: Capital
Supplemental Need: Scope change for the Ketchikan Public Safety
Building appropriation, sec. 1, ch. 82, SLA 2003, pg. 33, In. 22,
to include a purchase of a building and adjacent lot and
improvements.
$ 0.0 Total Funds
DAN SPENCER, Director, Division of Administrative Services,
Department of Public Safety, testified that rather than
constructing a new building as earlier planned, the Department,
would purchase and renovate an existing building. He stated that
the purchase of an additional lot might be necessary for storage
and to operate an impound lot.
SB 314
Section: 13(a)
RDU: ABC Board
Supplemental Need: Enabling language to allow the department to pay
a prior year bill using the FY 04 appropriation
$ 0.0 Total Funds
Mr. Spencer explained that this would provide authorization to pay
a claim of a previous fiscal year submitted during this fiscal
year. He noted that this is authorization is necessary because
adequate lapsed funds are available and must be utilized for this
purpose as required by statute.
SB 314
Section: 13(b)
RDU: Capital
Supplemental Need: Denali Commission grant to the Council on
Domestic Violence and Sexual Assault for domestic violence and
sexual assault shelter facility funding
$4,750,000 federal funds
Mr. Spencer explained this request is to expend funds received from
the Denali Commission to solicit bids for improvements and repairs
to shelters for victims of domestic violence and sexual assault. He
noted this request is included in the FY 04 supplemental budget
request rather than the FY 05 capital budget request because the
Denali Commission dictated the funds must be allocated by July 1,
2004.
Co-Chair Green asked why this item was not included in the regular
FY 04 budget.
Mr. Spencer replied that the Department was unaware of this issue
until a couple months ago.
Co-Chair Wilken requested list of the communities where this funds
would be dispersed, as well as the amount of local contribution to
the projects.
Mr. Spencer qualified that a list of projects would not be
available until the end of the current fiscal year, although he
would provide it at that time.
Co-Chair Wilken understood that 21 agencies responded to a survey
on needs and planned projects.
Mr. Spencer clarified the survey was conducted in prior years.
DENISE HENDERSON, Executive Director, Council on Domestic Violence
and Sexual Assault, Department of Public Safety, testified that the
Council was contacted by the Denali Commission council and asked to
oversee the distribution of these federal funds. She informed that
the Denali Commission has sponsored many capital projects and that
when the funds were included in the federal omnibus budget, the
Commission requested the Council conduct a survey of service
providers to assess the unmet needs.
Co-Chair Wilken expressed concern that $4.75 million was to be
distributed to as many as 21 communities and he asked whether local
matching funds were required.
Ms. Henderson answered no.
Co-Chair Wilken clarified the program would solely consist of
federal funds with no expectation of State funding.
Ms. Henderson replied that this is the first time the Commission
has received this significant amount of funds. She stated that the
Council has decided to have service providers "bid" for the funds
to establish standard requirements. She explained this is to ensure
the sustainability of the projects and the organizations that would
operate them, given funding reductions from the State and federal
governments.
Co-Chair Wilken commented that traditionally, the Denali Commission
provides funding for projects in Rural Alaska. He asked whether all
communities would be eligible to receive these funds.
Ms. Henderson affirmed all communities in Alaska are eligible to
receive this funding.
Co-Chair Green asked whether a board or other group would review
the applications and undertake a selection process on behalf of the
Denali Commission.
Ms. Henderson replied that the Counsel would act in this capacity.
She added that the Denali Commission has requested that the State
government assume more control over how these funds are allocated.
Co-Chair Green asked whether any Counsel members are involved in
organizations that would be requesting this funding.
Ms. Henderson assured that no member of the Counsel holds a
position in a shelter or other organization affected by decisions
of the Council. She stated that she and a representative of the
Denali Commission would conduct site visits themselves and that
there are many factors they intent to take into account.
Co-Chair Green told of concerns expressed to her that no "wall"
exists between those awarding grants and recipients of those
grants.
Ms. Henderson responded this is one reason the Denali Commission
has requested that the State oversee this process.
Senator Olson asked what percentage of the $4.7 million would be
utilized for construction versus administrative costs.
Ms. Henderson replied that the original appropriation was $5
million and that the Denali Commission has retained $300,000.
AT EASE 9:49 AM / 9:50 AM
SFC 04 # 17, Side A 09:50 AM
[NOTE: Side B of #16 is not recorded. No portion of the meeting is
unrecorded.]
Department of Natural Resources
SB 313
Section: 6(a)
RDU: Recorder's Office
Supplemental Need: Increased costs to process heavy volume of
mortgage refinance activity
$300,000 Receipt Supported Services
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Natural Resources testified this request is
necessary due to the "extremely heavy workload in refinancing". He
informed that the workload has increased almost 50 percent and that
no permanent staff has been hired to address this extra workload.
He reported the Office has generated almost $10 million in
additional revenue and that the nonpermanent staff positions would
be eliminated once the workload decreases.
SB 313
Section: 6(b)
RDU: Office of Habitat Mgt. and Permitting
Supplemental Need: Replace unrealized inter-agency receipts in
order to fulfill workload requirements
$150,000 general funds
Mr. Bus stated this request is necessary to fund new positions
created with the acquisition of the habitat management and
permitting activities. He recalled the anticipation of inter-agency
receipts and statutory designated program receipts, which he said,
"did not materialize". He relayed that the original intent was that
the positions would be filled at Step A salary levels; however many
of the transferred employees were higher steps and therefore, the
Department has inadequate funding for five positions. He stressed
that with increased development efforts, the positions must be
filled.
SB 313
Section: 6(c)
RDU: Capital
Supplemental Need: Increased activity in Remote Recreational Cabin
Site Survey Contracts
$ 119,000 Land Disposal Income Fund
Mr. Bus informed that the Department contracts with private
professional to conduct the surveys, the cost of which is
reimbursed by the purchasers. He reported that the intent to
undertake these efforts the previous summer were unfeasible;
however, it was since determined that the funds should accurately
be accounted as capital rather than operating expenditures.
SB 314
Section: 12(a)
RDU: Capital
Supplemental Need: FESCO Settlement for Contaminated Site Cleanup
$118,638.12
$118,600 SDPR
Mr. Bus explained this relates to a lease settlement located on the
North Slope in which the company, the Department and the Department
of Environmental Conservation agreed that contamination cleanup was
necessary. He stated that the company paid the State $118,639 and
this request is for funds to allow the company to execute the lease
and undertake further development.
Co-Chair Green asked why this item is included in the FY 04
supplemental budget.
Mr. Bus responded that the terms of the settlement requires payment
be made before June 2004 and the start of FY 05.
SB 314
Section: 12(b)
RDU: Capital
Supplemental Need: BLM 2009 Accelerated Land Transfer - Year 1 of a
5-year project to significantly increase the rate of federal land
transfers to individual Native Allottees, the ANCSA Corporations,
and the State.
$1,268,000 federal funds
Mr. Bus informed that the federal Bureau of Land Management decided
to complete all land transfers by the year 2009. Because the
Department would be unable to perform its functions necessary to
accomplish this using existing funding, he said that the federal
government would provide the funds.
Senator Olson asked why three Department positions would be
necessary to undertake this operation.
Mr. Bus deferred to Dick Mylius.
DICK MYLIUS, Deputy Director, Division of Mining, Land and Water,
Department of Natural Resources, testified via teleconference from
an offnet location, about the approximately 300 Native allotments
of land transferred to the State before the Native allotments were
filed. As a result, he stated that the State must first transfer
these parcels back to the federal government so it could then
transfer to the Native allottees. He listed the steps involved,
including best findings, identification of easements, third party
interests, and etc., which must be conducted for each parcel
SB 314
Section: 12(c)
RDU: Capital
Supplemental Need: Denali Park Visitor Destination Access - US Park
Service grant for planning and design of new visitor facilities
$1,268,000 federal funds
Mr. Bus shared that the Department is evaluating a South Denali
Access planning as well as improvements to the Petersville road
corridor. He emphasized that this item is comprised of 100 percent
federal funds and no State funds.
SB 314
Section: 12(d)-(e)
RDU: Capital
Supplemental Need: Afognak Coastal Wetlands grant for purchase of
waterfall parcel within the Perenosa Bay area of Afognak Island
$2,000,000 federal funds
$650,000 SDPR
$ 2,650,000 Total Funds
Mr. Bus reminded this matter was discussed the previous session. He
noted the size of the project has been reduced to 2,100 acres
located on the northern coast of Afognak Island. He stated $2
million was received from the National Park Service and the Rocky
Mountain Elk Foundation provided the $650,000.
Co-Chair Wilken asked if the Governor vetoed funding for this
project the prior year.
Mr. Bus affirmed the larger land purchase as funds from the Exxon
Valdez Oil Spill settlement were involved.
Co-Chair Wilken asked if this proposal addresses the Governor's
earlier concerns.
Mr. Bus affirmed it does.
SB 314
Section: 12(f)
RDU: Office of Alaska Coastal Zone Management
Supplemental Need: Increased Department of Law costs for Coastal
Zone regulations
$95,000 general funds
Mr. Bus explained that as a result of the passage of HB 91 the
previous session, the Department has worked with the Department of
Law to draft regulations and coordinate with the coastal districts
implement changes. He noted the legislation predicted less
involvement from the Department of Law; however, the significant
changes have required additional efforts. He summarized this
request would fund the legal expenses of the transfer for remainder
of FY 04.
Senator Olson understood these legal services are necessary because
the Administration changed the management of the Alaska Coastal
Zone Program. He asked if the changes would require long-term
review by the federal agencies overseeing the Program. He wanted to
know if additional funding would be necessary in FY 05 and future
years.
RANDY BATES, Deputy Director, Office of Project Management and
Permitting, Office of the Commissioner, Department of Natural
Resources, testified that the need for additional supplemental
funds is not expected. He relayed that the Office anticipates the
federal regulators would complete review of the changes and the
process would be completed.
Co-Chair Green noted the Department submitted no request for
supplemental funds for fire suppression.
Mr. Bus affirmed the budget request contains no funding for fire
suppression activities in FY 04, although additional expenditures
were necessary for May and June of FY 03 as indicated in the
ratification section. He gave the estimate for those fire
activities was initially $6.5 million, but the actual cost was
$6,233,000.
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