Legislature(2003 - 2004)
04/20/2004 09:14 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
CS FOR HOUSE BILL NO. 375(FIN) am
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
CS FOR HOUSE BILL NO. 377(FIN)
"An Act making appropriations for the operating and capital
expenses of the state's integrated comprehensive mental health
program; and providing for an effective date."
The Committee considered amendments to SCS CS HB 375(FIN), 23-
GH2040\C, adopted as a working document at the previous hearing.
Department of Administration
ADMIN #1: This amendment adds $87,500 Statutory Designated Program
Receipts (SDPR) to the Centralized Administrative Services Budget
Request Unit (BRU), Finance component on page 2, line 18.
Accompanying explanatory language reads as follows.
The Department of Administration is requesting an FY 05 budget
amendment increment of $87,500 of Statutory Designated Program
Receipts for the Division of Finance.
The Division of Finance administers a statewide credit card
program for purchasing travel, contractual services, and
commodities. Based on average annual net spent per account and
payment history, the State receives a rebate from our credit
card provider, First National Bank of Alaska. The Division of
Finance has budgeted statutory designated program receipts of
$112,500 each year to use this rebate. In FY 04, the rebate
was $158,712, and it is expected that the same amount will be
forthcoming in FY 05. The Division of Finance would like to
use the excess receipts of approximately $87,500 in FY 05 to
fund additional startup costs of a Central Travel Office to
serve all State agencies.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for an explanation.
Co-Chair Green outlined this request.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without objection.
Department of Community and Economic Development
DCED #1: This amendment adds $30,000 general funds to the Community
Assistance & Economic Development BRU, Community Advocacy
component, on page 5, line 11 for the Local Boundary Commission.
Accompanying explanatory language reads as follows.
This funding is intended for the citizens and community of
Eagle River, the second largest community in the State, to
conduct community meetings and circulate petitions for the
purpose of considering options for seceding from the
Municipality of Anchorage and forming a separate local
government.
Senator Dyson moved for adoption.
Co-Chair Green objected.
Senator Dyson explained this funding would be appropriated as a
grant to a contractor or organization within the "community I
represent" to assist in preparing a petition to form a separate
local government.
Co-Chair Green characterized this item as a capital budget
appropriation. She asked the history of funding these efforts.
Senator Dyson reminded that several years ago, legislation was
passed to allow the Local Boundary Commission to supervise and
enable petitions for local communities to pursue seceding from
boroughs and to provide grants up to $30,000 for a feasibility
study. He noted that the legislature has yet to appropriate any
funds for these activities. He recalled that the sponsor of the
legislation recognized the difficulty of interested parties to
garner funds to undertake the elaborate analysis necessary to
determine whether seceding is viable. Senator Dyson expressed this
process would further the Alaska Constitutional direction for self-
determination.
Senator Dyson suggested this amendment should be adopted and that
funding be transferred to the capital budget later in the process
if possible. He stated that adoption of the amendment would provide
certainty that funding would be appropriated.
Senator Olson asked the total cost of a succession movement and the
total funds that would be requested from the State in the future
for this effort.
Senator Dyson assured this project has no provision, nor is there
intention to request funds for the creation of a separate borough.
He opined that the communities of Eagle River and Chugiak becoming
an independent borough would be positive for all parties.
Co-Chair Wilken accepted responsibility for this amendment. He
explained that if this amendment were not adopted, he would ensure
the funds are included in the FY 05 capital budget appropriation,
although he noted the current version of the capital budget under
consideration is approximately $8.3 million more than intended.
Co-Chair Green remarked that the capital budget is not intended to
be an "insurance policy" for funding certain operating budget
components.
Senator Hoffman announced he would vote in favor of this amendment
because he believed that government should be "as close to the
people as they want" it to be.
Senator Olson asked why if this matter pertains to local options,
funding is not garnered from local governments or other local
sources.
Senator Dyson replied that organizers have considered holding bake
sales and other fund raising activities and that he expected that
community members would contribute; however, the time constraints
and expertise required is "almost overwhelming." He commented that
the legislative "predecessors", in recognizing the difficulties for
communities to undertake the process of organizing local
governments.
Co-Chair Green pointed out that the Alaska Constitution expounds
maximum local government with a minimum of governmental units and
commented that this proposal is contradictory to the mantra. She
did not oppose the formation of a separate borough for the
community of Eagle River.
A roll call was taken on the motion.
IN FAVOR: Senator Dyson, Senator Hoffman, Senator Olson, and
Senator Bunde
OPPOSED: Senator B. Stevens, Co-Chair Wilken and Co-Chair Green
The motion PASSED (4-3)
The amendment was ADOPTED.
Department of Education and Early Development
DEED #1: This amendment deletes the language of subsection (b) of
Section 31. STATE DEBT AND OTHER OBLIGATIONS., on page 56, lines 13
- 17 and inserts new language to read as follows.
(b) The sum of $81,870,084 is appropriated to the
Department of Education and Early Development for state aid
for costs of school construction under AS 14.11.100 from the
following sources:
Alaska debt retirement fund (AS 37.15.011) $51,670,084
School fund (AS 43.50.140) 30,200,000
Accompanying explanatory language reads as follows.
The Department of Education and Early Development received a
request from the Anchorage School District to increase their
original FY 05 request for school debt reimbursement by
$2,837,400.
Senator B. Stevens informed that Governor Murkowski and the
Anchorage School District requested this amendment because of a
miscalculation in the original application for debt reimbursement
submitted in October 2003. He noted that it was determined that
action to address this matter would be delayed until after the
Municipality of Anchorage local election, in which items would be
identified for reimbursement. His research has shown that since
1992, the State has fully funded all requests for reimbursement
from every school district, and that this amendment qualifies for
reimbursement.
Senator Hoffman understood this amendment is offered at the request
of the community and he requested documentation showing
justification for the increased funds.
Senator B. Stevens affirmed that the Anchorage School District
requested this funding increase and he offered supporting
documentation.
Co-Chair Green asked whether this amendment is offered at the
request of the Anchorage local government.
Senator B. Stevens again affirmed and referenced correspondence
from the Anchorage School District detailing the items omitted from
the original request for reimbursement. He further explained the
decision to wait until after the local election to determine the
actual amount of funds needed.
Senator Hoffman asked if the Murkowski Administration has also
requested this funding increase.
Senator B. Stevens answered yes.
Co-Chair Green recalled she began hearing about this matter early
in the legislative session and initially intended funding to be
included in the FY 04 supplemental appropriation. According to the
timeline, she understood the funds would not be allocated to the
school district until they were expended.
EDDIE JEANS, Manager, School Finance and Facilities Section,
Division of Education Support Services, Department of Education and
Early Development, affirmed the discussions. He outlined the issue
in which the Anchorage School District submitted a request in
October 2003 for approximately $33 million and it was subsequently
discovered in January 2004 that the projected amount needed would
be insufficient and that an additional $3.5 million would be
necessary. At that time he recommended to the Anchorage School
District that a request for this increase be delayed until after
the municipal election scheduled for April 2004. He stated the
Department then received a letter dated April 13, 2004 from the
finance officer of the Anchorage School District revising the
original requested increase to $2.8 million. He totaled the
reimbursement request from the Anchorage School District at
$36,104,200. He also noted that the bonds must be sold and
repayment begun before the State would reimburse the school
district.
Co-Chair Green asked if this increased funding were not
appropriated at this time, whether it could be included in a FY 05
supplemental appropriation.
Mr. Jeans replied this would be possible. He stated that without an
adjustment, every school district except the Anchorage School
District would be reimbursed 100 percent by the State, while the
Anchorage School District would only receive 33 percent.
Senator B. Stevens moved for adoption of the amendment and
emphasized this would maintain the legislature's commitment to fund
the debt reimbursement at 100 percent as done since 1992.
LARRY WIGET testified via teleconference from Anchorage that he was
available to answer any questions related to this amendment.
Without objection DEED #1 was ADOPTED.
DEED #2: This amendment pertains to the existing $42,563,300
allocation to the Quality Schools Component in the Teacher and
Learning Support BRU on page 10, line 9. The amendment reads as
follows.
The amount allocated for Quality Schools includes $119,500
(general funds) for creation of a new Education (Specialist
II) position for monitoring and oversight of statewide and
district correspondence programs. It is the intent of the
legislature that the department expend these funds, combined
with the appropriations to fund and support the current range
21 EED education specialist II who is the charter school
program manager, to employ an additional one or more people to
create an office uniquely focused on maximization of all
Alaska alternative public school initiatives, including
charter schools. "Maximization" means: Finding ways to use
alternative schools to accomplish the requirements of No Child
Left Behind Act (NCLB); Increasing public choices for quality
education; Monitoring and overseeing alternative schools in
the context of these goals; and, Providing information to the
legislature regarding alternative school legislation,
challenges, evaluation, and opportunities. Existing
alternative schools include; charter schools, boarding
schools, correspondence schools, and district-operated
alternative schools.
Senator Dyson moved for adoption.
Co-Chair Wilken objected for an explanation.
Senator Dyson noted Co-Chair Wilken has proposed to add a position
to the Department with specific responsibilities, namely oversight
of the "thriving" correspondence schools. Senator Dyson expanded
the initial proposal to assign additional responsibility to the new
position to assist in encouragement, facilitation and development
of other alternative education within the public school system. He
explained this is partly intended to fulfill the requirements of
the federal No Child Left Behind Act.
Senator Dyson offered a friendly amendment to the amendment to add
additional intent language to read as follows.
Further, the duties shall be as follows:
1. Monitor and evaluate the expenditures of state funds in
accordance with state statutes and regulations;
2. Monitor and evaluate curriculum as it pertains to state
education and graduation requirements; and
3. Monitor and evaluate benchmark and other standardized test
results to insure that a quality education is being provided
and achieved by the Alaska's alternative educational system.
Senator Dyson noted this amendment is conceptual and gave direction
to the bill drafters to make language changes if necessary.
As a friendly amendment, no Committee action was required and the
amendment was AMENDED.
Co-Chair Wilken informed that almost 11,000 children are enrolled
as correspondence students, an increase from approximately 2,000 in
1996. He noted that the rate of increase appears to be leveling
off. As a result of the popularity of correspondence programs, he
relayed that questions have arisen regarding the appropriate
methods of educating children. Therefore, he stated the budget
subcommittee identified a need for the proposed position. He
appreciated Senator Dyson's efforts in specifying a job description
for the position. Co-Chair Wilken understood this amendment would
defines two positions within the Department. He encouraged support
of this amendment.
Co-Chair Green specified that the funds are already included in the
budget and that this amendment does not increase funding.
Senator Hoffman questioned the reference to $119,500 general funds
stated in the description language of the amendment.
Senator Dyson understood these funds were added to the budget for
this purpose at the recommendation of the budget subcommittee.
Co-Chair Wilken affirmed.
There was no objection and the amended amendment was ADOPTED.
Department of Environmental Conservation
DEC #1: This amendment adds $50,000 general funds to the Water BRU,
Water Quality component on page 11, line 32. Accompanying
explanatory language reads as follows.
This amendment fully funds the "Raindrops to Oceans"
initiative - a thorough redesign of DEC's water quality
management and permitting programs to improve efficiency and
effectiveness to mitigate pollution potential as water travels
from the raindrop to the ocean. The State's best economic and
water quality interests are attained through replacing the
current federal agency jurisdiction with state control for
wetlands management, underground injection of wastewaters and
discharges to surface waters.
Full funding provides the water quality program with resources
necessary to seek primacy and evaluate performance of
stormwater pollution control to a level adequate for the
"Raindrops to Oceans" redesign. It will be used to reform and
rationalize the permit process for waste disposal at large
mines and other facilities with waste discharges; accelerate
the updating of Alaska's water quality standards which are
fundamental cornerstones for permit decision making; develop a
plan and draft rules to acquire state jurisdiction for
permitting wastewater disposal into underground injection
control (UIC) wells; and make necessary improvements and
regulation changes for the stormwater program.
Without restoration of this funding, the Department will not
be able to undertake the underground injection portion of the
initiative in FY 05.
Co-Chair Green moved for adoption.
Senator Dyson objected for discussion purposes. He understood that
the budget subcommittee recommended restoring $100,000 deleted from
the FY 05 operating budget legislation passed by the House of
Representatives. He relayed that when asked by the subcommittee the
consequences of not appropriating the additional $50,000 requested
by Governor Murkowski, the Department testified that the federal
government would continue to operate the program.
KURT FREDRIKSSON, Deputy Commissioner, Department of Environmental
Conservation, testified this amendment would fully restore the
amount requested in the Governor's proposed FY 05 operating budget.
He stressed the importance of the Raindrops to Oceans program and
the need to regain control of State water quality protection and
permitting activities. He noted that currently the federal
Environmental Protection Agency (EPA) has significant input in the
manner in which the State oversees water quality protection. He
explained that the EPA approves the State's water quality
standards, regulates storm water, wetlands development, and
underground injection wells.
Senator Bunde referenced media reports of the potential closure of
the Pogo Mine over concerns voiced by an environmental organization
located in Fairbanks about potential runoff. He asked if a portion
of these funds would be utilized to address this matter.
Mr. Fredriksson replied that these funds would provide the
Department the resources necessary to become more "aggressive" on
water quality programs. He explained the issue at the Pogo Mine and
the appeal process of regulations.
[Note: Tape malfunction, remainder of Side A and all of Side B not
utilized - no portion of the meeting is unrecorded.]
SFC 04 # 87, Side A 09:49 AM
Mr. Fredriksson continued that if oversight of water quality
activities at the Pogo Mine were under State control, the automatic
"stay" on operations at the mine would not be possible. Rather, he
stated the Department would review the appeal, resolve the appeal
and "move forward".
Senator Bunde understood therefore that if this funding were not
provided, the federal government would continue operations, but
with consequences to the State.
Mr. Fredriksson replied that the federal government currently
controls operations and explained that the Department is
undertaking efforts to establish water quality standards with the
intent to assume responsibility from the federal government.
Senator Dyson apologized that sufficient discussions on the matter
were not held during the budget subcommittee hearings. He asked the
anticipated date the State would assume the functions currently
performed by the federal government.
Mr. Fredriksson reminded of a report submitted by the Department to
the legislature on the National Pollution Discharge and Elimination
System (NPDES) and of concerns expressed by different stakeholders.
He expected the Department would begin assuming responsibilities in
the coming year and he emphasized the importance of obtaining
legislative approval. Shortly thereafter, he expected the
Department would submit an application for primacy.
Senator Dyson calculated the total allocation for this program in
the current fiscal year, including this amendment at $300,000.
Mr. Fredriksson affirmed the allocation would be $150,000 general
funds and $150,000 general fund program receipts.
Senator Dyson clarified the Department would not assume any
authority in FY 05, rather would request legislation to allow the
Department to assume control, which would occur approximately 14
months from now.
Mr. Fredriksson affirmed.
Senator Dyson removed his objection to the adoption of the
amendment.
Co-Chair Green asked the definition of the NPDS acronym.
Mr. Fredriksson answered the acronym is National Pollution
Discharge Elimination System and defined it as a federal water
discharge permit program.
Co-Chair Wilken requested an outline of the Pogo Mine situation,
including options available to the State and information necessary
to determine whether the State should intervene in the matter. He
did not want the mine to close for a year, based on a "sucker
punch".
Co-Chair Green indicated that all the Committee Members were
interested in this issue.
Senator Olson noted media reports critical of the management of
certain programs and asked whether any of these funds would be
allocated to those programs.
Mr. Fredriksson answered no.
Senator Olson understood that the federal EPA is the ultimate
authority over water quality programs was therefore unsure how the
additional funds would allow for increased State input.
Mr. Fredriksson responded that oversight from the EPA would not be
entirely eliminated, but asserted that a "strong State presence is
the best defense against the EPA." With these resources, he
surmised the Department could assert a "must stronger State
position with respect to water quality protection and the permit
programs" established in State and federal law.
The amendment was ADOPTED without objection.
DEC #2: This amendment adds $18,800 general funds as follows:
$1,200 to the Administration BRU, Office of the Commissioner
component on page 11, line 9; $1,100 to the Administration BRU,
Information and Administrative Services component on lines 10 and
11; $400 to the Environmental Health BRU, Environmental Health
Director component on lines 14 and 15; $5,100 to the Environmental
Health BRU, Laboratory Services component on line 17; $1,700 to the
Environmental Health BRU, Air Director component on line 20; $4,300
to the Environmental Health BRU, Air Quality component on line 21;
and $5,000 to the Water BRU, Facility Construction component on
line 33. Accompanying explanatory language reads as follows.
During development of the Governor's FY 05 Operating Budget
DEC examined its priority programs, realigned resources and
offered reductions where feasible. The Governor's budget
included $67,400 in general fund, travel reductions in six of
DEC's components; capturing savings possible through the use
of new technology.
Additional general fund travel reductions are being proposed
for seven components, four of which had previous reductions in
the Governor's budget. DEC's general funds support core
programs where travel is often directly related to fieldwork.
This amendment restores funding for those core activities.
Co-Chair Wilken moved for adoption.
Co-Chair Green overviewed this amendment.
Without objection the amendment was ADOPTED.
Department of Fish and Game
F&G #1: This amendment makes fund source changes from general funds
to Commercial Fish Loan funds in the following amounts to the
following BRUs and components.
$167,900
BRU: Commercial Fisheries
Component: Southeast Region Fisheries Management
$206,100
BRU: Commercial Fisheries
Component: Central Region Fisheries Management
$140,000
BRU: Commercial Fisheries
Component: AYK Region Fisheries Management
$223,800
BRU: Commercial Fisheries
Component: Westward Region Fisheries Management
$81,100
BRU: Commercial Fisheries
Component: Headquarters Fisheries Management
$96,500
BRU: Commercial Fisheries
Component: Fisheries Development
$5,900
BRU: Sport Fisheries
Component: Sport Fisheries Habitat
$18,000
BRU: Administration and Support
Component: Commissioner's Office
$45,500
BRU: Administration and Support
Component: Administrative Services
$21,000
BRU: Administration and Support
Component: Boards of Fisheries and Game
$10,700
BRU: Administration and Support
Component: Advisory Committees
$9,300
BRU: Administration and Support
Component: State Subsistence
Co-Chair Wilken moved for adoption.
Co-Chair Green explained that the Committee has been advised that
this funding source change would have no adverse impact.
Senator Hoffman noted the increase totals $1 million and asked if
adequate funding is available in the Commercial Fish Loan fund.
Co-Chair Green relayed she has been advised that adequate funding
is available and this appropriation would cause no hardship or
difficulty for the program to meet its objectives.
Senator Hoffman asked if the chair of the budget subcommittee
supports this amendment.
Senator B. Stevens expressed support for the amendment.
The amendment was ADOPTED without objection.
Office of the Governor
GOV #1: This amendment increases the federal receipt appropriation
from $5,450,000 to $7,446,803, to the Office of the Governor in
Section 24 for the Help America Vote Act on page 54, lines 12 and
13. Accompanying explanatory language reads as follows.
The Division of Elections recently received updated GSA
estimates for the payments associated with the Help America
Vote Act (HAVA). The revised estimate from the federal
government is an increase of $19,996,803.
Co-Chair Wilken moved for adoption.
Co-Chair Green pointed out this amendment would allow the Division
to receive federal funds.
There was no objection and the amendment was ADOPTED.
GOV #2: This amendment increases the allocation to the Executive
Operations BRU, Executive Office component from $8,228,700 to
$8,324,700 on page 14, line 6. Accompanying explanatory language
reads as follows.
The purpose of this amendment is to add $96,000 in business
license receipts for a grant to World Trade Center Alaska
(WTCAK). The Governor's budget subcommittee had already been
closed out by the time this project was brought forward.
The purpose of the grant is to enable WTCAK to provide
information and services to Alaska businesses interested in
exporting their products to international markets. In
addition, WTCAK will identify export opportunities in non-
traditional markets (such as Singapore, India, and Mexico) and
will focus on expanding trade and investment with Taiwan and
Canada.
Co-Chair Wilken moved for adoption.
Co-Chair Green explained that funding for this program has
appropriated in previous years through the Department of Community
and Economic Development; however oversight of the WTCAK was
transferred to the Office of the Governor.
Senator Hoffman asked the success rate of this organization in
exporting items to international markets.
AT EASE 9:58 AM / 9:58 AM
Co-Chair Green was unable to answer, but shared that she had
listened to discussions on the matter by the House Finance
Committee and understood the agency was meeting its obligations.
Senator Olson asked the products promoted to international markets.
Co-Chair Green again was unable to answer, and noted that no one
was present to address the issue.
Senator B. Stevens listed fish, coal, gas and timber, i.e. natural
resources.
The amendment was ADOPTED without objection.
Department of Health and Social Services
H&SS #1: This amendment increases the allocation to the Health and
Social Services BRU, Services to the Seriously Mentally Ill
component from $1,894,400 to $2,224,400, and to the Services for
Severely Emotionally Disturbed Youth component from $906,200 to
$1,126,200 on page 15, lines 28 - 31. Accompanying explanatory
language reads as follows.
This amendment restores half of the reductions proposed by the
Governor to consolidate "catchment areas". The concept is to
eliminate duplicate administration in areas where there are
multiple providers. There is concern, however, this reduction
is too much, too soon, and poses a high risk to some of
Alaska's most fragile citizens, the seriously mentally ill.
The amendment adds $330,000 in GF/MH to the allocation for
"Services to the Seriously Mentally Ill," and $220,000 in
GF/MH to the allocation for "Services for Severely Emotionally
Disturbed Youth."
Co-Chair Wilken moved for adoption.
Co-Chair Green relayed this matter was discussed in the budget
subcommittee meetings. She stated this amendment would restore 50
percent of the reductions made to this program. She stressed the
importance that funds are utilized to serve clients, rather than to
create new agencies or administrative personnel.
Without objection the amendment was ADOPTED.
H&SS #2: This amendment adds $660,000 general fund/mental health
funds (GF/MH) to the Health and Social Services BRU, Services to
the Seriously Mentally Ill component, and adds $440,000 GF/MH to
the Services for the Severely Emotionally Disturbed Youth component
on page 15, lines 28 - 31.
Senator Olson commented and withdrew the amendment, noting the
commitment and special talent required to work with the individuals
served by these programs.
Co-Chair Green added that some issues appear "huge", but that in
relation to the entire mental health budget, the funding
appropriated by H&SS #1 is a small amount. She stressed the
importance of understanding the significant budget for behavioral
services and the importance that the funds be utilized to meet the
needs of the individuals the programs serve. She wanted to ensure
that the funds are expended "wisely" and for the benefit of the
clients.
Senator Olson agreed and furthered that a small investment in
prevention is worthwhile in avoiding the significantly higher costs
of undiagnosed illnesses.
The amendment was NOT OFFERED.
H&SS #3: This amendment increases the allocation to the Health and
Social Services BRU, Nursing component from $17,937,800 to
$18,842,800 on page 17, line 27. Accompanying explanatory language
reads as follows.
This amendment is intended to mirror the transaction the House
made to restore funding to public health nursing:
Add $535,000 of general funds
Add $370,000 of interagency receipts
(Instruction to Legislative Finance Division: use the
same line item distribution contained in the House
version CS HB 375 (FIN) am.)
Although the Department's plan to transition clinical
preventive services to other health care providers is supposed
to focus on urban areas, the positions targeted for deletion
are in key areas that serve outlying rural communities, such
as Bethel, Fairbanks, and Ketchikan.
This funding will allow the Department to take a more moderate
approach to revising public health nursing and allow
evaluation of the effectiveness of the transitions that are
made.
Co-Chair Wilken moved for adoption.
Co-Chair Green informed that it was discovered that the reductions
were disproportionate to the communities of Fairbanks, Juneau and
Ketchikan, although not to Anchorage.
There was no objection and the amendment was ADOPTED.
H&SS #4: This amendment adds $905,000 general funds to the Health
and Social Services BRU, Nursing component on page 17, line 27.
Senator Olson commented to the importance of public health nurses
as the "front line" of Alaska's health care delivery system,
particularly in reducing the impact of the recent tuberculosis
outbreak.
This amendment was NOT OFFERED based on action taken on H&SS #3.
H&SS #5: This amendment adds $492,600 general funds to the Health
and Human Services BRU, Human Services Community Matching Grant
component on page 19, lines 18 and 19. Accompanying explanatory
language reads as follows.
This amendment will maintain last year's funding level and the
inclusion of the Matanuska-Susitna Borough.
Co-Chair Wilken moved for adoption.
Senator Hoffman requested an explanation of the amendment.
Co-Chair Green informed that the "very aggressive" budget
subcommittee had recommended reduced funding for this program and
that this amendment would restore some funds. She predicted ongoing
funding for this program as the population in the Borough
increases.
Co-Chair Wilken reported that the grant awarded to the Fairbanks
North Star Borough is utilized most effectively compared to other
participating communities. He recommended that the Matanuska-
Susitna Borough model its program after the Fairbanks program. He
referenced an outline of the competitive process utilized by the
Fairbanks North Star Borough [copy not provided].
Senator Hoffman noted this amendment is identical to H&SS #6.
Senator B. Stevens asked if this amendment increases the funds
appropriated to this component.
Co-Chair Green replied that the governor's request has been
traditionally $1 million, with the funding divided equally between
two participants: Fairbanks and Anchorage. The request for FY 05
was also $1 million, she stated, but pointed out that the
Matanuska-Susitna Borough would begin participating in the program.
She explained that Governor Murkowski had intended that the
appropriation be divided among the three participants, but that she
recalculated the allocations, and determined that the subsequent
reductions to the Fairbanks and Anchorage programs could not be
absorbed.
Senator B. Stevens asked the total increase from the Governor's
requested amount.
Co-Chair Wilken answered, $159,300.
Co-Chair Wilken listed $749,727 would be allocated to the Anchorage
program with the adoption of this amendment, $224,954 to the
Fairbanks program and $184,600 to the Matanuska-Susitna program. He
stated he would provide detailed information to Senator B. Stevens.
Without objection the amendment was ADOPTED.
H&SS #6: This amendment adds $492,600 general funds to the Health
and Human Services BRU, Human Services Community Matching Grant
component on page 19, lines 18 and 19.
This amendment was NOT OFFERED based on action taken on H&SS #5.
H&SS #7: This amendment adds a new "Youth Courts" component to the
Health and Human Services BRU on page 14, line 24 and allocates
$508,300 general funds.
Senator Hoffman moved for adoption.
Co-Chair Green objected.
Senator Hoffman recalled public testimony given on the proposed FY
05 operating budget and the frequency of comments made in support
of the youth court program. He spoke of low recidivism of those
appearing before youth courts and cautioned of the situation with
these youths if the courts were discontinued. He calculated the
cost for participants in the youth court at $574 per individual and
compared this to the cost of housing juveniles at the McLaughlin
Youth Center. He reported that Alaska is "leading the nation" in
its comprehensive youth court system. He remarked this is a
successful program that saves money over the long term and results
in the youths becoming more productive members of the state. He
noted that Alaska currently operates 15 youth courts statewide
served by over 1,000 volunteers. He reiterated that this program
not only saves money in the future, but also allows youth a second
chance to become productive citizens in Alaska.
Co-Chair Green understood this amendment would more than double the
current appropriation for the youth court program.
Senator Hoffman corrected this amendment would provide the amount
requested for FY 05 by Governor Murkowski, which is the same amount
appropriated in FY 04.
JANET CLARKE, Director, Division of Administrative Services,
Department of Health and Social Services, clarified $508,300 is the
amount approved by the House of Representatives; however this
amount is derived of $28,800 federal funding and $279,500 general
funding transferred to this component and $200,000 added by the
House of Representatives.
Co-Chair Green understood the amount allocated to this program in
the current Senate Finance committee substitute working document is
$308,240. She calculated this amount is higher than appropriated
the previous fiscal year.
Ms. Clarke noted the Governor's proposed budget did not include a
separate component for the youth court program and that the funds
were contained in other components.
Co-Chair Green asked if this amendment would therefore increase the
current $308,240 appropriation to the amount approved by the House
of Representatives.
Ms. Clarke replied that the increase is unclear given the manner
the amendment is written.
A roll call was taken on the motion.
IN FAVOR: Senator Dyson, Senator Hoffman and Senator Olson
OPPOSED: Senator Bunde, Senator B. Stevens, Co-Chair Wilken and Co-
Chair Green
The motion FAILED (3-4)
The amendment FAILED to be adopted.
H&SS #8: This amendment adds $866,400 Tobacco Education/Cessation
funds to the Health and Human Services BRU, Tobacco Prevention and
Control component on page 18, lines 9 and 10. Accompanying
explanatory languages reads: "Returns to Governor's requested
amount using Tobacco Education and Cessation funds."
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson stated this amendment would increase funding for this
program to the amount appropriated for the current fiscal year,
although would remain less than the amount recommended by the
federal Centers for Disease Control (CDC). He remarked that funding
allocated to this program has been utilized "quite wisely". He
cited information circulated by the American Cancer Society that
the recommended amount necessary to fund this program is $16.5
million, compared to the $4.9 million currently spent. He opined
this is a disservice to those affected by the program, given the
decreased tobacco use of participants.
Co-Chair Green understood these funds are not available for
appropriation.
Senator Olson agreed, but noted that legislation sponsored by
Governor Murkowski would increase taxes on tobacco products and
subsequently increase revenues from this tax to $35 million, some
of which could be utilized to fund this program. He suggested that
if that legislation does not pass, alternative funding could be
secured.
Senator Bunde asked if this funding source includes revenues for
the master settlement act between states and tobacco companies.
Senator Olson responded that funds from the settlement are
deposited into the general fund and distributed.
Senator Bunde understood the agreement that 20 percent of funds
received from the settlement would be utilized for tobacco
cessation and prevention programs and asked how this amendment is
related.
Co-Chair Green replied that 20 percent of the settlement funds are
"spread throughout the budget" and that this amendment would be
additional funding. She offered to provide detailed information.
She characterized this amendment as an "empty appropriation."
Senator Olson answered Senator Bunde's question that this amendment
would provide that an amount equal to 20 percent of settlement
revenue would be expended for tobacco prevention and control
programs. If this amendment were not adopted, he remarked that the
programs would receive less than 20 percent of settlement funds. He
cited information from the Alaska Chapter of the American Cancer
Society.
Co-Chair Green listed the appropriations of these funds. She opined
that the (CDC) would continue to contend that additional funds
should be expended for prevention and cessation programs, and that
some local organizations disagreed with the CDC on this matter as
the FY 04 budget was being considered. She stressed that these
funds are also necessary to offset Medicaid expenses resulting from
tobacco use. However, because of significant support for cessation
and prevention efforts, the legislature has attempted to maintain
guidelines in allocating the settlement funds.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Dyson, Senator B. Stevens, Senator Bunde, Co-Chair
Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Labor and Workforce Development
DLWD #1: This amendment adds $50,000 Workers Safety funds to the
Workers' Compensation and Safety BRU, Workers' Compensation
component on page 20, line 9. Accompanying explanatory language
reads as follows.
This amendment will restore one full time position and funding
that should not have been deleted in the Governor's FY 05
request since the deletion was subject to the passage of
legislation, SB 311/HB 450.
Co-Chair Wilken moved for adoption.
Co-Chair Green outlined this amendment.
The amendment was ADOPTED without objection.
DLWD #2: This amendment adds $300,000 general funds to the
Workforce Development BRU, Kotzebue Technical Center Operations
Grant component on page 20, lines 31 and 32. Accompanying
explanatory language reads as follows.
Description: Restores funding to the FY 03 level. Supports
newly established nursing program.
Senator Olson moved for adoption.
Co-Chair Green objected.
Senator Olson spoke to the success of the nursing program to
address the statewide shorting of qualified nurses. He furthered
that the Center is beginning to train workers to construct a
natural gas pipeline in the event such a project is undertaken. He
stated this amendment would provide the same amount of funding
provided two years prior when the nursing program was implemented.
Co-Chair Green asked Senator Bunde's response.
Senator Bunde stated this issue did not arise in meetings of the
budget subcommittee.
Co-Chair Green noted the comparison to FY 03 funding rather than FY
04 funding.
A roll call was taken on the motion.
IN FAVOR: Senator Olson and Senator Hoffman
OPPOSED: Senator B. Stevens, Senator Bunde, Senator Dyson, Co-Chair
Wilken and Co-Chair Green
The motion FAILED (2-5)
The amendment FAILED to be adopted.
Department of Natural Resources
DNR #1: This amendment adds $1,500,000 Agriculture Revolving Loan
Fund (ARLF) to the Resource Development BRU, Agriculture Revolving
Loan Program Administration component, on page 24, lines 27 and 28.
Accompanying explanatory language reads as follows.
The Department of Corrections has operated the Mt. McKinley
Meat Plant for the Agriculture Revolving Loan Fund and
accounted for the buying and selling of the animals through
its Alaska Correctional Industries operation. In December 2003
the ARLF took back the operation of the meat plan with the
understanding that the Department of Corrections continue to
account for the buying and selling of the animals. For the
balance of FY 04 the Department of Corrections will perform
this duty under an RSA agreement with DNR.
In order to gain more control of the overall administrative
process this amendment proposes that the ARLF be given the
authority to receive and expend all of the revenues and
expenditures of the Mt. McKinley Meat Plant through the
Agriculture Revolving Loan Fund.
The projection is that this expenditure will be matched by and
equal or greater amount of revenue into the ARLF.
The long term plan is for the MMMP to be turned over to a Coop
by 2006.
Co-Chair Wilken moved for adoption.
Co-Chair Green called upon the Department of Natural Resources to
speak to this amendment.
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Natural Resources testified these funds
would be utilized to complete the transfer of the meat packing
plant. He stated that the Department of Natural Resources did not
have authority to buy and sell animals so the Department of
Corrections undertook the accounting of those activities; however,
this amendment would allow the Department of Natural Resources to
assume those duties. He relayed that the intent is to transfer
operation of the facility to a cooperative organization.
Co-Chair Green asked if these funds had already been expended or if
the amount reflects the anticipated revenue the facility would
generate.
Mr. Bus replied that the funds would allow the Department to
purchase animals and generate revenue from the meat, once sold.
Senator Hoffman asked why this appropriation was not requested
during the budget subcommittee process.
Mr. Bus responded that the Department of Natural Resources and the
Department of Corrections intended to enter into a memorandum of
agreement, but instead determined that the Department of Natural
Resources should undertake the accounting activities. He informed
that Governor Murkowski transferred three accounting positions from
the Department of Corrections to the Department of Natural
Resources to perform these duties.
Senator Hoffman asked if the transfer of the facility to a
cooperative organization would involve a sale or a trade
arrangement.
Mr. Bus was unsure. He expressed that the intent is that the
cooperative would operate the facility. He stated that the
Department is encouraging the industry to form a cooperative
organization and plans to transfer the assets that that
organization. He remarked that the operation is old and
inefficient.
Senator Dyson shared that ten years prior he performed an
engineering study on the facility. He recalled that the
slaughterhouse was utilized to train inmates housed by the
Department of Corrections, a program that was very successful and
that he hoped would continue.
Mr. Bus stated that the Department of Natural Resources continues
to utilize inmates and pays the Department of Corrections for the
labor performed.
Senator Dyson hoped inmates were receiving vocational training.
Co-Chair Green noted that the Department of Corrections budget has
been reduced to reflect this allocation.
Senator Olson questioned the ability of the facility to generate a
positive cash flow given the difficulties the plant was
experiencing that necessitated the State to assume ownership. He
pointed out that the equipment is older than at the time of the
takeover. He asked if the facility could operate without future
supplements.
Mr. Bus replied that Senator Torgerson has been addressing the
issue and has achieved some success in efforts to reduce expenses
and increase revenues.
Co-Chair Green noted she has been observing the situation and
reported that Senator Torgerson has made major changes in design,
reduced the number of employees, altered fees and reduced the
amounts paid for certain products. She surmised that Senator
Torgerson is "doing everything possible" to reduce expenses.
There was no objection and the amendment was ADOPTED.
DNR #2: This amendment adds $6,200 Receipt Supported Services funds
to the Resource Development BRU, Recorder's Office/Uniform
Commercial Code component on page 24, lines 22 and 23. Accompanying
explanatory language reads as follows.
This amendment will provide office space for the Seward
Recording Office.
Annual Amount Requested: $6,200 in Receipt Supported Services
Currently in the Budget: $1 part-time position for $27,000
Total Amount of Receipts Collected in FY 03: $33,298
Background Information: In the past, all recording was done by
the Alaska Court System. However, over the last several years,
the court system has urged the State to take over that
function. To move in that direction, the State approved
funding in FY 04 for a part-time position, but did not include
funding for office space. Unfortunately, utilizing the space
in the courthouse was not an option.
Due to the fact that no money was included in the budget for
office space, there was talk of moving this function to
Anchorage. This move was adamantly opposed by the community of
Seward and in an effort to keep it there, local businesses
throughout the community banded together to share the cost of
paying for the office space for this fiscal year. The current
lease agreement will expire on June 30, 2004.
Seward has had a recording office for the past 90 years and
would like to continue to provide that service to its
residents. The cost of office space would come from the
receipts that the Seward Recording Office collects.
$6,200 was added in House Finance and is in the House version
of the budget.
Co-Chair Wilken moved for adoption.
SFC 04 # 87, Side B 10:37 AM
Co-Chair Green indicated she offered this amendment at the request
of the Department.
Mr. Bus testified that the transfer of recording functions from the
Alaska Court System to the Department has been discussed for some
time. He reiterated the information in the explanatory language.
Co-Chair Green asked if clients must present original paperwork at
the Recording Office or whether information could be sent via
facsimile to the Anchorage office location.
Mr. Bus replied that facsimile information could not be accepted.
He also stressed that the Seward Office has been in existence for
over 90 years.
Co-Chair Green asked whether the City of Seward would provide
funding for office space should this amendment fail. She clarified
that the State would not likely require this.
Mr. Bus responded that the City of Seward would be unable to
provide funding, reminding that private citizens provided funding
for FY 04. He emphasized that this cost would be funded from fees
colleted by the agency.
Senator Hoffman asked if revenues from fees collected at the Seward
Recording Office exceed $6,000.
Mr. Bus replied that the amount of fees collected has exceeded this
amount in the past and noted that the fees have been increased, so
additional revenue would be generated.
With no objection the amendment was ADOPTED.
Department of Public Safety
DPS #1: This amendment adds $696,600 to the Council on Domestic
Violence and Sexual Assault BRU and component on page 26, line 33
and page 27, lines 7 and 8. Accompanying explanatory language reads
as follows.
Due to reductions in PFD/Felon funds, TANF funds, and VOCA
funds, the grants to shelters and rape crisis centers remains
$696,600 less than in FY 04, after a transfer of $200,000
within this budget from administration to the grants line.
(These funds are anticipated to be made up in administration
through a Denali Commission administrative fee on capital
funds (see letter attached [copy not provided])).
This amendment adds the remaining $696,600 needed to hold
shelters and rape crisis centers harmless in FY 05 to the
Council on Domestic Violence and Sexual Assault budget from
general funds.
Senator Hoffman moved for adoption.
Co-Chair Green and Senator B. Stevens objected.
Senator Hoffman reminded the Committee of extensive testimony in
support of this increment. He stressed that alcohol abuse is a
major problem in the State and the impact is has on domestic
violence and sexual assaults, and he requested that the funding
remain the same as in the previous year.
Co-Chair Green asked the budget subcommittee chair to speak to the
amendment.
Senator B. Stevens informed that the budget subcommittee
recommended an increase of $200,000 general funds to offset a
$900,000 reduction in PFD/Felon funds. He also noted that the
subcommittee recommended the transfer of $200,000 from a contracts
component to grants, and that the subcommittee recommended
allocating $400,000 general funds to offset that reduction. He told
of an investigation of the program to identify efficiencies, in
which it was discovered that several redundant charges were imposed
before the funds reached the shelters. He recommended that further
review should be undertaken during the legislative interim. He then
told of $400,000 federal grants the Counsel held in reserve for the
next fiscal year because future grants would not be received in
time. He pointed out that $503,000 is allocated for personal
services. He remarked that the program administrators had intended
to take reductions to the grants to shelters and none from
administration. He therefore objected to the adoption of this
amendment and expressed intention to identify further efficiencies.
Co-Chair Green announced that the budget subcommittee would
continue to function during the legislation interim to address
concerns about the administration of the programs. She emphasized
the intent is that the largest percentage of funds possible are
allocated to the shelters.
Senator B. Stevens agreed and noted that the budget subcommittee
recommended intent language indicating such.
Senator Hoffman remarked that Senator B. Stevens made a compelling
argument regarding the portion of the funding spend on
administration of the program.
Senator Hoffman moved to amend the amendment to reduce the
appropriation increase to $300,000 from $696,600.
There was no objection and the amendment was AMENDED.
Senator Olson asked the percentage of funds received by the
shelters.
Senator B. Stevens replied that 19.5 percent of funding is utilized
for administration and professional services contracts and 80.5
percent of funding is allocated to shelters.
Senator Olson asked the evaluation of the missions and measures of
this program.
Senator B. Stevens indicating he was researching the matter of
whether the Counsel has a missions and measures procedure. He
emphasized this is one objective of the budget subcommittee's
review. He pointed out the funding limit established by the Senate
Majority for the Department and his efforts to meet this limit. He
stated that the budget subcommittee had been under the assumption
that $900,000 temporary assistance for needy families (TANF) funds
was available for this program, and was only recently informed that
these funds were allocated to other programs. He stated that the
transfers reflected in the committee substitute are a result of
efforts to offset the reduced funding, noting that this is the best
option given the time constraints. He reiterated that he would
address the issue further during the interim and added that the
amount of funding generated from the Permanent Fund dividends
withheld from incarcerated felons could increase.
Co-Chair Green added that during discussions on the FY 04
supplemental appropriation legislation it was learned that a
significant portion of funding is allocated to the grant program,
which provides a "cushion". She stated that additional funding
sources provide adequate funds to offset reductions.
Senator Hoffman countered that the supplemental funds would be
appropriated for FY 04. He referenced a letter from the Department
of Public Safety to Co-Chair Green [copy not provided] indicating
that funds are available within the Department's budget to be
allocated to the Council. He then indicated that a second letter
attested that the $900,000 was obligated elsewhere and therefore
not available. He calculated that the FY 05 budget reduction would
increase the program's deficit to $1 million. He understood Senator
B. Stevens' argument, but asserted that this amount was too high
for the program to absorb given the domestic violence situation in
Alaska. He surmised that the Council would "receive the message"
that the administrative costs must be reduced.
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman and Senator Olson
OPPOSED: Senator Dyson, Senator B. Stevens, Co-Chair Wilken and Co-
Chair Green
ABSENT: Senator Bunde
The motion FAILED (2-4-1)
The amended amendment FAILED to be adopted.
Statewide
Statewide #1: This amendment adds $4,299,300 of various funding
sources to all departments. Accompanying explanatory language reads
as follows.
This amendment provides FY 05 Health Insurance Salary
Adjustments for all Non-Covered Employees as well as funding
to implement terms of bargaining agreements for those
employees covered under the recently approved Labor, Trades
and Crafts Unit and the Correctional Officers and State
Troopers Units of the Public Safety Employee Association
beginning July 1, 2004.
The attached Statewide Totals Report and the Agency Summary
Report provides all department fund source number and name
detail [copies on file].
Co-Chair Wilken moved for adoption.
Co-Chair Green stated the Office of the Governor prepared this
amendment. She noted the funding need reflects a $2 monthly
increase to the negotiated $40 per employee monthly contribution.
AT EASE 10:55 AM / 10:56 AM
The motion to adopt the amendment was WITHDRAWN and the amendment
was HELD.
Statewide #2: This amendment replaces the funding sources with
general funds in the amounts listed to the following components and
departments.
Department of Corrections
BRU: Administration and Operations
Component: Out-of-State Contractual
Page 8, line 16
$200,000 AHFC Dividend
$1,074,400 ASLC Dividend
Department of Natural Resources
BRU: Fire Suppression
Component: Fire Suppression Preparedness
Page 25, lines 12 and 13
$6,684,400 AIDEA Dividend
Department of Natural Resources
BRU: Fire Suppression
Component: Fire Suppression Activity
Page 25, line 14
$4,315,600 AIDEA Dividend
$1,673,500 ASLC Dividend
This amendment also changes the language of subparagraphs (6) and
(7) of subsection (b), of Section 10. Alaska Housing Finance
Corporation., on page 48, lines 19 and 20. Subsection (b) provides
that the Corporation for specific expenditures shall retain a
portion of the funds deemed available by the AHFC board of
directors. The amended language reads as follows.
(6) $2,050,000 to capitalize the SeniorCare Fund;
and
(7) $17,163,400 for capital projects
This amendment also changes the language of subsection (m) and adds
a new subsection (n) to Section 20. Fund Transfers., on page 53,
lines 14 and 15. The amended language reads as follows.
(m) The sum of $22,689,500 is appropriated to the senior
care fund (sec. 2, ch. 3, SLA 2004) from the following
sources:
General Fund $9,729,000
Alaska Housing Finance Corporation Dividend 2,050,000
Alaska Industrial Development and Export
Authority dividend 8,162,600
Alaska Student Loan Corporation dividend 2,747,900
(n) The sum of $2,837,400 is appropriated from the Alaska
Industrial Development and Export Authority dividend to the
Alaska debt retirement fund (AS 37.15.011).
Accompanying explanatory language reads as follows.
This amendment is intended to replace all corporate dividends
used in agency operating appropriations with general funds and
to use the dividend funds instead to capitalize the debt
retirement fund and the senior care fund.
Co-Chair Wilken moved for adoption.
Co-Chair Green stated this amendment consists of funding source
changes.
DEB DAVIDSON, Staff to Co-Chair Green, stated this amendment
changes funding sources, explaining that the budget subcommittees
had recommended State corporation dividends for several operational
expenses. She pointed out this amendment would have a net zero
affect and would utilize the dividends as one-time funding sources
for debt retirement and the SeniorCare program.
Senator Hoffman asked the total amount of general funds.
Ms. Davidson replied that this amendment involves approximately $12
to $13 million, but stressed that it would not increase funding.
She noted that the SeniorCare program had initially been funded
with general funds and that this amendment switches the
appropriations.
Intent
Intent #1: This amendment inserts a new bill section on page 47,
line 1 to read as follows.
Section 4. AS 37.07.050 prescribes a statewide system of
results-based government designed to increase efficiency and
effectiveness of state programs and services. It is the intent
of the legislature that the administration and legislature
review missions and measures currently enacted and propose
changes necessary to bring them into alignment with the
administration's reorganization of departments to promote the
ultimate goals of supporting effective activities and change
and eliminating ineffective programs and activiti4es. Proposed
changes to missions and measures should be prepared for draft
legislation to be introduced at the beginning of the next
legislative session.
Accompanying explanatory language reads as follows.
The current administration is placing great energy into the
concept of Missions and Measures. This intent language
demonstrates the legislature's support of the concept and
willingness to work with the administration to continue
developing a successful means to effectively manage the
State's resources and provide services in the most efficient
manner.
Co-Chair Wilken moved for adoption.
Senator Dyson objected.
Senator Dyson moved to amend the amendment by inserting the
following portion of the language of Intent #2.
ADD the following to each commissioner's office appropriation:
Legislative Intent Regarding Missions & Measures
AS 37.07.050 prescribes a statewide system of results-based
government designed to increase efficiency and effectiveness
of state programs and services. The statute further directs
periodic reporting which describes actions taken and the
results of such actions. The Legislature requests that all
executive branch agencies and instrumentalities report agency-
wide performance data quarterly, including, as a minimum,
written analysis of:
The results and any trends indicated by the reported data;
If improvement, what caused improvement; and
Which actions resulted in no change or a decline in
performance.
When operational experience indicates that legislative
assistance is needed, the Legislature requests that the
departments indicate in their quarterly reports the desired
legislative action(s).
In instances of no change or deteriorated performance, the
respective agency will provide a brief explanation of what the
agency will do differently in subsequent quarters to advance
stated performance targets. For measures lacking data, the
reporting agency shall provide a brief statement of the most
significant impediments to reaching the performance target,
precisely what the agency will change to overcome such
impediments, and the date performance data will be first
reported.
The Legislature also requests quarterly online updates to all
levels of performance measures contained within the Missions
and Measures framework.
Each department shall identify when the desired results
involve more than one agency. Each quarter the agency will
report on the progress of each agency's contribution to
achieving the desired results.
Finally, each agency shall present semi-annual reports of
activities, data, and results to the Legislature in a forum to
be determined by the Legislature. The first semi-annual report
will address the information required on a quarterly basis,
but will comprise the information of the previous two
quarters, and will be presented at a time specified by the
Legislature, generally in late summer or early fall of each
year. The second semi-annual report will be comprehensive
reports of the previous year and will be presented in January
of each year after the Legislature has convened.
Co-Chair Green objected.
Senator Dyson outlined the explanatory statements and relayed that
the Office of Management and Budget approves of this amendment to
the amendment.
Co-Chair Green maintained her objection.
Co-Chair Wilken asked whether this amendment would require
additional reports of the departments. If so, he was concerned
about potential fiscal impacts and suggested the matter should be
addressed as legislation with fiscal notes.
Senator Dyson understood that the departments were in the process
of undertaking these efforts.
JOAN BROWN, Chief Budget Analysis, Office of Management and Budget,
testified that the departments were implementing procedures with
the intent of issuing these reports, but had not begun the process
to date.
Senator Dyson expressed his intention that reports would be
published as they became available and would be accessible for the
legislature and the public.
Co-Chair Wilken appreciated Senator Dyson's efforts although he
preferred that the reporting requirements be addressed through the
legislative process to allow for committee review of the
implications and fiscal impacts.
Senator Dyson remarked that the process of implementing reporting
procedures had been "muddled" with the change to the Murkowski
Administration. He understood that legislation was under
consideration in the House of Representatives, but he did not
expect it would be completed this legislative session.
Co-Chair Green asked if the origin of the language in the first
paragraph of the amendment to the amendment pertaining to the
quarterly reporting requirement is a direct quotation of the
statute.
Senator Dyson answered it is not, but rather reflects the
Administration's efforts and goals for the Missions and Measures
program.
AT EASE 11:06 AM / 11:07 AM
Co-Chair Green surmised that increasing the reporting requirements
from semi-annually to quarterly would require substantive
legislation and could not be accomplished within appropriation
legislation.
Senator Dyson withdrew his amendment to the amendment.
Senator Dyson offered a motion to amend the amendment to insert the
aforementioned language of Intent #2 with the exception that the
reports would be issued semi-annually rather than quarterly. The
second amendment to the amendment reads as follows.
ADD the following to each commissioner's office appropriation:
Legislative Intent Regarding Missions & Measures
AS 37.07.050 prescribes a statewide system of results-based
government designed to increase efficiency and effectiveness
of state programs and services. The statute further directs
periodic reporting which describes actions taken and the
results of such actions. The Legislature requests that all
executive branch agencies and instrumentalities report agency-
wide performance data quarterly, including, as a minimum,
written analysis of:
The results and any trends indicated by the reported data;
If improvement, what caused improvement; and
Which actions resulted in no change or a decline in
performance.
When operational experience indicates that legislative
assistance is needed, the Legislature requests that the
departments indicate in their quarterly reports the desired
legislative action(s).
In instances of no change or deteriorated performance, the
respective agency will provide a brief explanation of what the
agency will do differently in subsequent quarters to advance
stated performance targets. For measures lacking data, the
reporting agency shall provide a brief statement of the most
significant impediments to reaching the performance target,
precisely what the agency will change to overcome such
impediments, and the date performance data will be first
reported.
The Legislature also requests semi-annual online updates to
all levels of performance measures contained within the
Missions and Measures framework.
Each department shall identify when the desired results
involve more than one agency. Semi-annually, the agency will
report on the progress of each agency's contribution to
achieving the desired results.
Finally, each agency shall present semi-annual reports of
activities, data, and results to the Legislature in a forum to
be determined by the Legislature. The first semi-annual report
will address the information required on a quarterly basis,
but will comprise the information of the previous two
quarters, and will be presented at a time specified by the
Legislature, generally in late summer or early fall of each
year. The second semi-annual report will be comprehensive
reports of the previous year and will be presented in January
of each year after the Legislature has convened.
Co-Chair Green announced she would have to review whether this
appropriation legislation could be amended in this manner; however,
she did not want to delay action on the appropriation legislation.
Senator B. Stevens agreed that this amendment is likely not
allowable in this bill; he also agreed with Senator Dyson's intent.
He asked if the matter of whether this language would be allowable
in this appropriation legislation could be determined.
Co-Chair Green replied it could, but would incur a delay in the
process of passing this legislation. She commented that the
missions and measures currently in place pertain to the
departmental organizations of the previous gubernatorial
administration. She stated that the Murkowski Administration
requested an extension of the semi-annual reports to allow the
missions and measures to be adjusted to reflect the
reorganizations.
Senator Dyson offered to withdraw the amendment and submit an
amendment to reflect the semi-annual reporting requirement and also
replace the statutory language with intent language.
Co-Chair Green suggested that the bill could be amended at the
hearing before the full Senate to incorporate acceptable intent
language.
AT EASE 11:12 AM / 11:14 AM
Co-Chair Green proposed the amendment be amended conceptually with
direction to the bill drafters to insert intent language into the
bill to provide "guidance". She specified that the intent language
should not be repetitive or provide stipulations "going over the
edge".
Without objection the amendment was conceptually AMENDED and
ADOPTED.
Intent #2: This amendment reads as follows.
ADD the following to each commissioner's office appropriation:
Legislative Intent Regarding Missions & Measures
AS 37.07.050 prescribes a statewide system of results-based
government designed to increase efficiency and effectiveness
of state programs and services. The statute further directs
periodic reporting which describes actions taken and the
results of such actions. The Legislature requests that all
executive branch agencies and instrumentalities report agency-
wide performance data quarterly, including, as a minimum,
written analysis of:
The results and any trends indicated by the reported data;
If improvement, what caused improvement; and
Which actions resulted in no change or a decline in
performance.
When operational experience indicates that legislative
assistance is needed, the Legislature requests that the
departments indicate in their quarterly reports the desired
legislative action(s).
In instances of no change or deteriorated performance, the
respective agency will provide a brief explanation of what the
agency will do differently in subsequent quarters to advance
stated performance targets. For measures lacking data, the
reporting agency shall provide a brief statement of the most
significant impediments to reaching the performance target,
precisely what the agency will change to overcome such
impediments, and the date performance data will be first
reported.
The Legislature also requests quarterly online updates to all
levels of performance measures contained within the Missions
and Measures framework.
Each department shall identify when the desired results
involve more than one agency. Each quarter the agency will
report on the progress of each agency's contribution to
achieving the desired results.
Finally, each agency shall present semi-annual reports of
activities, data, and results to the Legislature in a forum to
be determined by the Legislature. The first semi-annual report
will address the information required on a quarterly basis,
but will comprise the information of the previous two
quarters, and will be presented at a time specified by the
Legislature, generally in late summer or early fall of each
year. The second semi-annual report will be comprehensive
reports of the previous year and will be presented in January
of each year after the Legislature has convened.
ADD the following to:
Department of Administration
The Department of Administration shall develop strategies,
targets, and actions plans to minimize turnover of state
employees.
ADD the following to:
Department of Administration
The Department of Administration shall develop strategies,
targets, and action plans to fill vacancies with highly
qualified personnel.
ADD the following to:
Department of Administration, Division of Retirement and
Benefits
Department of Revenue, Alaska State Pension Investment Board
The Department of Administration and the Department of Revenue
shall jointly develop End Results, strategies, targets, and
action plans to achieve the following:
1. Long term financial viability without supplements from the
general fund;
2. The fund is fully funded at least 60% of the time;
3. Long term gains are optimized with low risk; and
4. Average annual returns in excess of national standards for
similar pension programs.
ADD the following to:
Department of Corrections
The Department of Corrections shall develop the strategies,
targets, and action plans necessary to provide inmates with
the opportunity to address their deficiencies related to:
education; health; alcohol and substance abuse; emotional and
psychological abuse issues; and vocational skills.
ADD the following to:
Department of Corrections
The Department of Corrections shall develop the strategies,
targets, and action plans necessary to utilize community and
faith based organizations to the maximum extent possible to
meet inmate needs.
ADD the following to:
Department of Education and Early Development
The Department of Education and Early Development shall
develop the strategies, targets, measures, and corresponding
action plans to demonstrate that all schools are in compliance
with AS 14.133.120, School Disciplinary and Safety Program.
The resultant Behavior and Safety Standards shall be posted
prominently in school buildings, on the school's website, and
shall be made readily available to parents, students, and
citizens within adjacent communities with the objective of in-
depth agreement and understanding of the school's standards
for behavior and safety.
ADD the following to:
Department of Education and Early Development
The Department of Education and Early Development shall
develop measures and corresponding action plans to demonstrate
that all school-based programs and all in-class presentations
regarding human sexuality meet guidelines for federal funding
of abstinence education regardless of whether such program
materials and/or presentation are funded by the Federal
Abstinence Fund.
ADD the following to:
Department of Education and Early Development
The Department of Education and Early Development shall
develop measures and corresponding action plans to demonstrate
that all teachers, school staff, and school-based clinic staff
report potential child molestation or rape when the child is
15 years old or younger, and is suspected of being, or known
to be, involved in sexual activity with a partner who is at
least three years older. Further the Department shall
demonstrate that all such reports are forwarded [to] Child
Protective Services and/or proper law enforcement agencies.
ADD the following to:
Department of Education and Early Development
The Department of Education and Early Development shall
develop the strategies, targets, measures, and corresponding
action plans necessary to ensure that school students and
staff are safe from: assault; bullying; and sexual, racial,
ethnic, tribal and religious harassment.
ADD the following to:
Department of Education and Early Development
The Department of Education and Early Development shall
develop the strategies, targets, measures, and corresponding
action plans necessary to encourage, empower, and supervise
alternative education opportunities in the state to meet [the]
school choice requirements of "No Child Left Behind."
ADD the following to:
Department of Education and Early Development
The Department of Education and Early Development shall
develop the strategies, targets, measures, and corresponding
action plans necessary to ensure that all public alternative
education options within the state are on the department
websites, and are maintained current.
ADD the following to:
Department of Health and Social Services
Office of the Commissioner
The Commissioner of the Department of Health and Social
Services shall develop statewide, inter-departmental End
Results, targets, measures, and corresponding action plans to
demonstrate meaningful progress toward eliminating statutory
rape of children through aggressive reporting by state
personnel and contractor personnel of potential child
molestation or rape when the child is 15 years old or younger,
and is suspected of being, or known to be, involved in sexual
activity with a partner who is at least three years older.
ADD the following to:
Department of Health and Social Services
Office of the Commissioner
The Commissioner of the Department of Health and Social
Services shall develop and facilitate the use of health
savings accounts, and empower private Alaskan citizens to
obtain medical and health services at the same payment rates
as enjoyed by state employees.
ADD the following to:
Department of Health and Social Services
Division of Public Assistance
The Division of Public Assistance shall develop the
strategies, targets, measures, and corresponding action plans
necessary to find and prosecute all persons committing fraud.
ADD the following to:
Department of Military and Veterans Affairs
The Department of Military and Veterans Affairs shall develop
new targets related to:
1. Percent of authorized positions filled;
2. Percent of personnel that are qualified and trained to C-3
standards; and
3. Percent of equipment meeting specified military standards
for readiness.
ADD the following to:
Department of Revenue
Child Support Enforcement Division
The Child Support Enforcement Division of the Department of
Revenue shall develop the strategies, targets, and action
plans necessary to process changes to "Court Support Orders"
within 120 days for individuals residing [in] Alaska, and 180
days for out of state court support orders.
This amendment was NOT OFFERED.
Statewide (continued)
Statewide #1: This amendment adds $4,299,300 of various funding
sources to all departments. Accompanying explanatory language reads
as follows.
This amendment provides FY 05 Health Insurance Salary
Adjustments for all Non-Covered Employees as well as funding
to implement terms of bargaining agreements for those
employees covered under the recently approved Labor, Trades
and Crafts Unit and the Correctional Officers and State
Troopers Units of the Public Safety Employee Association
beginning July 1, 2004.
The attached Statewide Totals Report and the Agency Summary
Report provides all department fund source number and name
detail [copies on file].
Co-Chair Wilken moved for adoption.
Co-Chair Green moved to amend the amendment to add the following
language.
Add a new section to read:
Sec. SALARY AND BENEFIT ADJUSTMENTS. (a) The operating
budget appropriations made in sec. 1 of this Act and in sec. 1
of the Act making appropriations for the state's integrated
comprehensive mental health program, include $4,299,300 for
benefit adjustments for public officials, officers, and
employees of the executive branch, Alaska Court System
employees, employees of the legislature and legislators, and
to implement the monetary terms for the fiscal year ending
June 30, 2005, of the following collective bargaining
agreements:
(1) Public Employees Local 71, for the Labor, Trades
and Crafts Unit;
(2) Public Safety Employees Association, for the
Correctional Officers Unit; and
(3) Public Safety Employees Association,
representing state troopers and other commissioned law
enforcement.
(b) If a collective bargaining agreement listed in (a) of
this section is not ratified by the membership of the
respective collective bargaining unit, the appropriates made
by this Act that are applicable to that collective bargaining
unit's agreement are reduced proportionately by the amount for
that collective bargaining agreement, and the corresponding
funding source amounts are reduced accordingly.
Senator Dyson questioned the use of mental health funding for this
purpose.
Co-Chair Green replied that some of the affected positions are
funded with Mental Health Trust Authority (MHTA) funds and the
increased costs for those positions would also be funded utilizing
MHTA funds.
Senator Dyson clarified the funds would be utilized for salaries
and adjustments.
Co-Chair Green affirmed.
Senator Dyson commented that the language of the amendment was
"misleading". He asked about funding for "permissive" abortions.
Co-Chair Green recalled earlier discussions where it was
established that the legislature does not have the ability to make
determinations over insurance coverage of abortions under the
bargaining unit contracts with the insurance carrier.
AT EASE 11:19 AM / 11:22 AM
Co-Chair Green clarified that some portions of this amendment are
to both HB 375 and HB 377.
Co-Chair Green noted that Senator Dyson objected to the motion to
amend the amendment.
Senator Hoffman asked if the amount listed in subsection (b) would
reduce the appropriation specified in subsection (a).
Co-Chair Green did not know the amount ratified. However, she noted
that if any of the collective bargaining agreements were not
ratified by the membership of those units, the appropriation would
be reduced accordingly.
Senator Olson remarked that this amount should be identified, as
this amendment to the amendment gives an ultimatum to the members
of these collective bargaining units.
Ms. Brown replied that to date, the Labors, Trades and Crafts unit
had ratified its contract with the State and that the two units of
the Public Safety Employees Association had not. She stated that if
the Public Safety Employee Association units failed to ratify the
agreements, this amendment would reduce the appropriation for cost
increases associated to those agreements.
Senator Bunde characterized this amendment as a boilerplate, which
would provide the appropriation if needed, but would not
appropriation funds if not needed.
Senator Hoffman asked if the bargaining units have any objection to
level of funding proposed in this amendment.
Ms. Brown surmised there was no objection and that the matter
relates to the timing of the union ratification process.
Senator Hoffman asked whether the bargaining units are requesting
more funds than reflected in this amendment.
Ms. Brown answered, no.
Senator Dyson indicated he objected to this amendment because he
was "disappointed" that the legislature was not included in the
negotiation process. He did not oppose the contracts, or the
efforts of the bargaining units and the Department of
Administration.
A roll call was taken on the motion to amend the amendment.
IN FAVOR: Senator B. Stevens, Senator Bunde, Co-Chair Wilken, and
Co-Chair Green
OPPOSED: Senator Dyson, Senator Olson, and Senator Hoffman
The motion PASSED (4-3)
The amendment was AMENDED.
The amended amendment was ADOPTED without objection.
This concluded the amendments.
Senator Hoffman expressed concern that only one BRU was established
for several programs within the Department of Health and Social
Services, although it would allow flexibility. He remarked that
this committee substitute closely reflects Governor Murkowski's
budget proposals and therefore the Governor could "take credit" and
also "take the blame where that may be".
Co-Chair Green thanked the budget subcommittees and department
staff for their efforts.
Co-Chair Wilken offered a motion to report SCS CS HB 375, 23-
GH2040\C, as amended from Committee with individual
recommendations.
There was no objection and SCS CS HB 375 (FIN) MOVED from
Committee.
Co-Chair Wilken offered a motion to report SCS CS HB 377, 23-
GH2042\S, as amended from Committee with individual recommendation.
Without objection, SCS CS HB 377 (FIN) MOVED from Committee.
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