Legislature(1995 - 1996)

01/25/1995 01:35 AM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
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                     HOUSE FINANCE COMMITTEE                                   
                        JANUARY 25, 1995                                       
                            1:35 P.M.                                          
                                                                               
  TAPE HFC 95 - 5, Side 2, #000 - end.                                         
  TAPE HFC 95 - 6, Side 1, #000 - end.                                         
  TAPE HFC 95 - 6, Side 2, #000 - #213.                                        
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Co-Chair  Mark  Hanley called  the  House Finance  Committee                 
  meeting to order at 1:35 P.M.                                                
                                                                               
  PRESENT                                                                      
                                                                               
  Co-Chair Hanley               Representative Kohring                         
  Co-Chair Foster               Representative Martin                          
  Representative Mulder         Representative Navarre                         
  Representative Brown          Representative Kelly                           
  Representative Grussendorf    Representative Therriault                      
                                                                               
  Representative Parnell was not present for the meeting.                      
                                                                               
  ALSO PRESENT                                                                 
                                                                               
  Karen Perdue, Commissioner, Department of  Health and Social                 
  Services; Janet Clarke,  Director, Administrative  Services,                 
  Department  of  Health  and  Social  Services; Gene  Burden,                 
  Commissioner, Department of Environmental  Conservation; Len                 
  Verrelli, Air  Quality  Management  Section,  Department  of                 
  Environmental   Conservation;   Tom   Cashen,  Commissioner,                 
  Department  of Labor;  Arbe Williams, Director,  Division of                 
  Administrative Services, Department of Labor; Adjutant Major                 
  General Jake Lestenkof, Commissioner, Department of Military                 
  & Veterans  Affairs;  Jeff Morrison,  Director, Division  of                 
  Administrative Services, Department of Military and Veterans                 
  Affairs;   Mike   Greany,   Director,  Legislative   Finance                 
  Division;  Representative  John  Davies; Representative  Tom                 
  Brice;  Representative  Gene  Kubina;  Representative  Irene                 
  Nicholia; Representative Ed Willis.                                          
                                                                               
  SUMMARY                                                                      
                                                                               
       AGENCY OVERVIEWS:                                                       
                                                                               
            Department of Environmental Conservation                           
            Department of Health and Social Services                           
            Department of Labor                                                
            Department of Military and Veterans Affairs                        
                                                                               
                                                                               
                                1                                              
                                                                               
                                                                               
  (*Copies of  log notes,  meeting tapes  and handouts are  on                 
  file with the  Legislative Finance Division.   Contact #465-                 
  3795).                                                                       
                                                                               
  Log            DISCUSSION                                                    
                                                                               
  DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                     
                                                                               
                 Committee meeting to order at 1:35 P.M.                       
                                                                               
                 ENVIRONMENTAL CONSERVATION (DEC),  provided a                 
                 brief overview of the Department.  The intent                 
                 of  DEC is  to  protect  public  health  from                 
                 environmental  threats,   and  to   conserve,                 
                 protect and improve Alaska's  environment for                 
                 present and future generations.                               
                                                                               
                 Commissioner  Burden  provided  the Committee                 
  with a              handout.   [Copies on file  - Attachment                 
                      #1].                                                     
                                                                               
                 has five areas of responsibility.                             
                                                                               
                      assures wholesome fish, meat,  and dairy                 
                      products  for  consumers   and  enforces                 
                      basic standards of sanitation  in public                 
                      facilities.                                              
                                                                               
                      ensures  compliance  with air,  land and                 
                      water pollution laws  to protect  public                 
                      health and the environment.                              
                                                                               
                      Operation   Division    which   provides                 
                      financial  and  technical  assistance to                 
                      local communities  for construction  and                 
                      operation  of  water,  sewer  and  solid                 
                      waste projects.                                          
                                                                               
                      Division  which  improves   the  state's                 
                      capability to prevent,  respond to,  and                 
                      clean   up   pollution   from  oil   and                 
                      hazardous substances.                                    
                                                                               
                      Services Division which provides overall                 
                                                                               
                                2                                              
                                                                               
                                                                               
                      financial,  employee  and  informational                 
                      services to  the public  and within  the                 
                      Department.                                              
                                                                               
                 budget was  adequately funded to  address the                 
                 needs of the small communities.                               
                                                                               
                 DEPARTMENT  OF  ENVIRONMENTAL   CONSERVATION,                 
                 noted  that  the Department  is investigating                 
                 ways to compensate for budget shortfalls.                     
                                                                               
                 Grussendorf  and  Mr. Verrelli  regarding the                 
                 Department's responsibility in the prevention                 
                 of shellfish poison.                                          
                                                                               
                 percent   increase   to   the   Solid   Waste                 
                 Management  component  of  the budget.    Mr.                 
                 Verrelli  explained  that  recent  cuts  have                 
                 stripped the program's ability to operate  in                 
                 compliance with the EPA standards.                            
                                                                               
                 proposed budget has  not been fully evaluated                 
                 and  that  the  Department  would  appreciate                 
                 broader recommendations from  the Legislative                 
                 body.  Mr.  Verrelli explained most increases                 
                 to  the  DEC  budget  resulted  from  federal                 
                 mandates.                                                     
                                                                               
                 addressing the proposed budgetary increase to                 
                 the DEC budget.                                               
                                                                               
                 Department  had  existed  as  an  independent                 
                 entity.    Commissioner Burden  replied since                 
                 1972.  Representative Kelly pointed out  that                 
                 the DEC budget began to  increase in 1990 and                 
                 has not returned to the pre-spill level.                      
                                                                               
                 requires  a  maintenance  effort to  maintain                 
                 spill response.   The bulk of those funds are                 
                 federally received.                                           
                                                                               
                 DEC currently has responsibilities  which are                 
                 not  fully    functioning  because of  budget                 
                                                                               
                                3                                              
                                                                               
                                                                               
                 cuts.    He  recommended  a  policy  call  to                 
                 discontinue those programs.                                   
                                                                               
                 Environmental Conservation was completed.                     
                                                                               
  DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                  
                                                                               
                 COMMISSIONER,   DEPARTMENT   OF   MILITARY  &                 
                 VETERANS   AFFAIRS   (DMVA),   explained  the                 
                 components   of   the   Departments  proposed                 
                 budget.                                                       
                                                                               
                 1.   National Guard -  A large investment for                 
                      the State.                                               
                                                                               
                 2.   Emergency Services                                       
                                                                               
                 3.   Responsibility to Veterans Affairs.   he                 
                      pointed out the total number of veterans                 
                      in Alaska is 68,000.                                     
                                                                               
                 planned to continue  funding the youth  corp.                 
                 Major  General  Lestenkof  noted  it  was   a                 
                 program  which  was  working well  and  which                 
                 received  total  funding through  the federal                 
                 government.                                                   
                                                                               
                 million  dollar  increase  to   the  Disaster                 
                 Relief Fund.                                                  
                                                                               
                 ADMINISTRATIVE   SERVICES,    DEPARTMENT   OF                 
                 MILITARY AND VETERANS  AFFAIRS, advised  that                 
                 the  $12  million  dollars  consisted  of  $3                 
                 million dollars general  funds and $9 million                 
                 dollars  federal  funds.    These  funds  are                 
                 allocated for anticipated disasters.                          
                                                                               
                 regarding forward funding of the DMVA budget.                 
                 Discussion followed  among Committee  members                 
                 and Mr. Morrison addressing that concern.                     
                                                                               
                 National Guard personnel had changed over the                 
                 years.                                                        
                                                                               
                                                                               
                                4                                              
                                                                               
                                                                               
                 continues  to  be  a  slow  drop rate.    The                 
                 manning level  for  Alaska has  not yet  been                 
                 determined  although  he  suggested that  the                 
                 level  should  stabilize  soon.       Federal                 
                 funding  is determined  by  the strength  and                 
                 number of units per state.                                    
                                                                               
                 Military and Veterans Affairs was completed.                  
                                                                               
  DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                     
                                                                               
  HFC 6 - 1      KAREN  PERDUE,  COMMISSIONER,  DEPARTMENT  OF                 
  HEALTH AND #000               SOCIAL     SERVICES    (DHSS),                 
                                acquainted   herself  to   the                 
                                Committee  and  explained  the                 
                                mission of the State of Alaska                 
                                Department   of   Health   and                 
                                Social  Services:  To  promote                 
                                and   protect  the   physical,                 
                                emotional, social and economic                 
                                well-being of Alaskans so that                 
                                each  person  can be  as self-                 
                                sufficient as possible.                        
                                                                               
                 of volunteerism in communities throughout the                 
                 State.  She added that federal funds comprise                 
                 40% of the proposed DHSS budget.                              
                                                                               
                 Representative  Martin's   queries  regarding                 
                 single pay health  insurance explaining  that                 
                 it would provide coverage for every person in                 
                 the  State.    The  plan  will  move  forward                 
                 slowly, she thought taking many years to come                 
                 to full fruition.                                             
                                                                               
                 regarding the excelarated  migration of  low-                 
                 income  persons  to  Alaska.     Commissioner                 
                 Perdue thought that the Alaska Permanent Fund                 
                 and the Longevity  Bonus might encourage  the                 
                 movement North.                                               
                                                                               
                 budgetary status of the proposed alcohol  and                 
                 drug  abuse  component.   Commissioner Perdue                 
                 emphasized that alcohol is the most pervasive                 
                 problem in Alaska and results in continuation                 
                 of rising  costs  to all  departments.    She                 
                 added,  the  proposed  Hickel  Administration                 
                                                                               
                                5                                              
                                                                               
                                                                               
                 budget sustains status  quo funding for  that                 
                 component.                                                    
                                                                               
                 Commissioner  Perdue  and  Committee  members                 
                 regarding    welfare    reform    intentions.                 
                 Commissioner Perdue noted  that this  concern                 
                 was a  high priority for Governor Knowles and                 
                 that he  has  established a  six member  task                 
                 force to identify  agency resources in  order                 
                 to increase self sufficiency in those persons                 
                 receiving  Aid  to  Families   and  Dependant                 
                 Children (AFDC).                                              
                                                                               
                 SERVICES,  DEPARTMENT  OF  HEALTH AND  SOCIAL                 
                 SERVICES,  acknowledged  that there  would be                 
                 large changes to the welfare system, although                 
                 emphasized that 95%  of the Department  rules                 
                 are established by federal mandates.                          
                                                                               
                 with  DHSS  promising  more services  without                 
                 increasing the budget.   Commissioner  Perdue                 
                 reminded  the  Committee  that all  solutions                 
                 will cost the State money.                                    
                                                                               
                 Brice's  question regarding  interdepartments                 
                 working through AFDC,  DHSS and child support                 
                 distribution   and   payment    through   the                 
                 Department of Revenue (DOR).                                  
                                                                               
                 encouraging more volunteer services in agency                 
                 work to help solve budget costs.                              
                                                                               
                 concluded their FY96 agency overview.                         
                                                                               
  DEPARTMENT OF LABOR                                                          
                                                                               
                 LABOR, provided the Committee with a handout.                 
                 [Copies  on  file  -  Attachment  #3].    The                 
                 mission  of  the   Department  of  Labor   as                 
                 established  in Title  23  is  to foster  and                 
                 promote  the welfare  of the wage  earners in                 
                 the State, improve  their working  conditions                 
                 and   advance    their   opportunities    for                 
                 profitable employment.                                        
                                                                               
                                                                               
                                6                                              
                                                                               
                                                                               
                 Knowles  recommended  that  positions not  be                 
                 filled unless they were essential.  He added,                 
                 there would be a  reclassification of certain                 
                 range scale levels.                                           
                                                                               
                 Commissioner's Office and four divisions:                     
                                                                               
                 1.   Administrative Services Division                         
                 2.   Employment Security Division                             
                 3.   Labor Standards & Safety Division                        
                 4.   Worker's Compensation Division                           
                                                                               
                 fund process and receipts.                                    
                                                                               
                 ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR,                 
                 advised  that the majority of those funds are                 
                 reinvested into that program.                                 
                                                                               
                 should be  made across the board  rather than                 
                 to   individual   components.      Discussion                 
                 followed  among  Committee  members regarding                 
                 that concern.                                                 
                                                                               
                 with    inter-department    duplication    of                 
                 occupational safety services.   Ms.  Williams                 
                 stressed that the State OSHA program is not a                 
                 duplication of the federal one.   The Knowles                 
                 Administration  is  looking for  further cost                 
                 reductions to the budget for the Department.                  
                                                                               
                 the workmen's compensation increase for small                 
                 businesses.   Representative Navarre  pointed                 
                 out that the changes made  to that program in                 
                 1988 have been detrimental to the small state                 
                 employees and employers.                                      
                                                                               
  HFC 6 - 2      Representative  Therriault  agreed  that  the                 
  current #000             workmen's compensation  system does                 
                           not appear to be working for either                 
                           the  employee  or  employer.     He                 
                           pointed out the continued  abuse of                 
                           that system.                                        
                                                                               
                 medical costs associated with the problems of                 
                                                                               
                                7                                              
                                                                               
                                                                               
                 the  current  workmen's  compensation system.                 
                 Representative   Mulder  informed   Committee                 
                 members of the Ad Hoc Task Force appointed by                 
                 Governor Knowles to address these concerns.                   
                                                                               
                 agency overview.                                              
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting adjourned at 3:10 P.M.                                           

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