Legislature(1997 - 1998)
01/28/1998 01:40 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
January 28, 1998
1:40 P.M.
TAPE HFC 98 - 9, Side 1.
TAPE HFC 98 - 9, Side 2.
TAPE HFC 98 - 10, Side 1.
TAPE HFC 98 - 10, Side 2.
CALL TO ORDER
Co-Chair Hanley called the House Finance Committee meeting
to order at 1:40 P.M.
PRESENT
Co-Chair Hanley Representative Kelly
Co-Chair Therriault Representative Kohring
Representative J. Davies Representative Martin
Representative Grussendorf Representative Moses
Representative Foster Representative Mulder
Representative G. Davis was not present for the meeting.
ALSO PRESENT
Sister Helen Prejean, Louisiana; Rev. Pat Travers, Diocese
of Juneau; Annalee McConnell, Director, Office of
Management and Budget, Office of the Governor; Tom Lawson,
Director, Division of Administrative Services, Department
of Commerce and Economic Development; Keith Kelton,
Director, Division of Facility Construction & Operation,
Department of Environmental Conservation; Kurt Fredriksson,
Director, Division of Spill Prevention & Response,
Department of Environmental Conservation; Kenneth
Bishchoff, Director, Division of Administrative Services,
Department of Public Safety; Sharon Barton, Director,
Division of Administrative Services, Department of
Administration; Larry Streuber, Facilities/Planning Chief,
Division of Administrative Services, Department of Health &
Social Services; Laurie Perkins, Director, Division of
Administrative Services, Department of Revenue; Nico Bus,
Director, Division of Administrative Services, Department
of Natural Resources & Department of Military & Veterans
Affairs.
SUMMARY
COMMENTS ON THE DEATH PENALTY - SISTER PREJEAN
HB 327 An Act making and amending capital
appropriations and reappropriations and
capitalizing funds; and providing for an
effective date.
HB 327 was HELD in Committee for further
discussion.
COMMENTS ON THE DEATH PENALTY
REV. PAT TRAVERS, DIOCESE OF JUNEAU, introduced Sister
Helen Prejean of Louisiana and provided written testimony
by the Catholic Diocese of Juneau in opposition to
institutionalizing the death penalty in the State of
Alaska.
SISTER HELEN PREJEAN, AUTHOR - DEAD MAN WALKING, LOUISIANA,
provided a brief history of her involvement in working to
abolish the death penalty throughout the United States.
She discouraged the House Finance Committee members from
adopting the proposed legislation making the death penalty
legal in this State. During the past years, Sister Helen
explained that she had accompanied four people to the
electric chair, at the same time working with murder
victim's families in their healing process. The Catholic
nun from Louisiana said race, poverty, and vengeance
unjustly influence how capital punishment is applied.
Sister Prejean noted that she understood the political
pressure regarding this issue. She pointed out that
research indicates that people when initially asked if they
want the death penalty will voice support. After fourteen
years of educating the American people on the death
penalty, once they understand and are shown how it works,
most people reject that choice. When people reflect
"below" the surface of the death, they then reject the
death penalty.
Sister Prejean pointed out that thirty-eight states
currently have the death penalty. She questioned if this
was a road that Alaska needs to walk. No matter how the
bill is designed, including all safeguards, the reality is
that it is only poor people on death row. She believed
that was a direct result of the type of defense that poor
people receive. She asked how would safeguards be built
in, reminding legislators how expensive that would be.
Sister Prejean asked what determines a crime that qualifies
"killing" people. When a life of a human being is taken,
that life is sacred and irreplaceable; it is a personal
universe. When that death occurs, a line has been crossed
and there is no way that adequate restitution can replace
it.
Sister Helen pointed out that what drives the death penalty
in actual practice is who was killed. We say that we value
equally the life of all citizens. She believed that who
was killed determines the amount of outrage. Who the
victim is and what outrage is felt over their death will be
a large determining factor in who receives the death
penalty. Coupled with the discretionary powers of the
district attorney, the truth of "value of life" will become
unbalanced. Then there becomes selectivity involved and
race can not be escaped. Since 1976, each time in the
practice of the death penalty in the United States occurs,
it is when a white person has been killed. According to
the Alaska Native Justice Center, of the eight people
executed in the Territory of Alaska between 1900 and 1957,
when the death penalty was abolished, only two were white.
She continued, one could not make the predisposition that
when someone is killed in a family that everyone in that
family will want the death penalty for the person who did
the killing. Murder victims families are not able to come
to terms with their own grief solely by killing the killer.
Sister Helen reiterated that every time someone dies, a
personal universe has been lost. A death never replaces
another life.
She stressed that there could never be enough justice for
the victims. Sister Helen went on to discuss the financial
costs associated with capital punishment. It is estimated
that the first murder trial will cost $50 million dollars.
She recommended that money be poured into victims of
violent crimes, into juvenile offenders, community policing
and into things that make a difference when crime happens
in a community. She elaborated that the people doing the
thinking and the people doing the murder are not the same
person. Police chiefs and others involved with crime know
that violence is spawned from dead-end lives, alcohol and
drugs, people with no future. Communities need to be
infused with life, hope, jobs and education, which will
make a difference.
Sister Prejean pointed out that by instituting the death
penalty, we imitate the behavior of the criminal, giving
back the violence that person gave to the community. She
pointed out the moral lesson to children by legalizing such
action. When some people do some things, it is okay to
kill them; instead, demonstrating in our State, no one is
allowed to kill anyone. That is only God's power.
The practice of the death penalty is the practice of
societal hate and legalized vengeance. Sister Helen
Prejean concluded by encouraging Committee members to
choose the higher road, the moral road and not put the vote
to the people. She reminded Committee members that "we're
all human and we're all frail" and no one knows it better
than the Legislators who put these laws together and made
them work.
(Tape Change HFC 98- 9, Side 2).
HOUSE BILL NO. 327
"An Act making and amending capital appropriations and
reappropriations and capitalizing funds; and providing
for an effective date."
Co-Chair Hanley informed members that the meeting would
provide a general overview of the Capital Budget Request
(CBR), noting that federal funds are not yet currently
available.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND
BUDGET, OFFICE OF THE GOVERNOR, provided Committee members
with a handout summary sheet, "Governor Knowles' Proposed
FY99 Capital Budget". [Attachment #2 - Copy on File].
Ms. McConnell acknowledged that the overall Governor's
proposed budget of $871 million dollars was larger than
last year's, mostly from increased federal funds. The
Governor's capital plan for FY99 focuses on education,
economic development, transportation, public safety and
health. The $92.3 million dollars in general funds is
approximately the same level as in FY98. However, federal
funds increase by more than $150 million dollars, mostly
for highways and airports. "Gateway Alaska" uses $191
million dollars in federal funds and revenue bonds for a
major terminal expansion at the Anchorage International
Airport.
A little over 50% of the proposed budget will be provided
by federal funds. State general funds will amount to 10%.
The recommended Alaska Housing Finance Corporation (AHFC)
share of the budget is $52 million dollars, which, together
with a $1 million dollar to debt service for the University
of Alaska-Anchorage (UAA) dorms and a $50 million dollar
dividend to the general fund, will hold total contribution
within the plan for maintaining an excellent credit rating.
Alaska Industrial Development Export Authority (AIDEA) FY99
dividend of $16 million dollars, through this proposal
would be appropriated to economic development projects
statewide.
Ms. McConnell noted that the budget bill does not include
the Statewide Transportation Improvement Program (STIP) and
the Airport Improvement Program (AIP) for final stages of
public review and comment. The capital budget bill
appropriates state matching funds for community projects
throughout the State but does not list specific projects.
As soon as the STIP and AIP are final, the lists will be
released and the projects will be incorporated in the
Governor's budget amendments available February 25th.
Co-Chair Hanley clarified that this proposed legislation
requests $100 million dollars in general funds, not $92.3
million dollars. He pointed out that $7 million had also
been included for the Court System. Ms. McConnell agreed
noting that whether the Administration agrees with the
Court System's requests or not, they do not exercise
authority over the Court System. Co-Chair Hanley advised
that last year; the Administration did use the funds
appropriated to the Court System for an item not related to
the Courts.
Ms. McConnell pointed out that there were two major
elements of the overall capital plan not included in the
proposed bill as they have been included in separate
legislation. The School Construction Plan will address all
of the major maintenance projects and new construction
requested by the school districts for the next 10 years.
Total recommended investment in that area is $720 million
dollars. The tobacco tax increase will be recommended to
be used to fund this legislation. That tax is projected to
be approximately $34 million dollars per year. General
fund money will be required in six years. Ms. McConnell
agreed that it was an ambitious proposal.
Representative J. Davies asked if the school construction
plan would extend to university level needs. Ms. McConnell
advised that the proposed bill would address needs only
from K-12. The University has a CBR assessment in the
amount of $7 million dollars for deferred maintenance. The
Governor `s proposed program requires legislation and will
carry a fiscal note.
In response to Co-Chair Hanley, Ms. McConnell advised that
the prison bill would cover expansion in three locations:
Anchorage - 6th Avenue Jail, Bethel and Sutton. The
proposed plan will address overcrowding in the prison
system. The intent is to use lease-purchase financing with
local communities.
Ms. McConnell continued, a smaller portion of the proposal
would convert the Harborview facility to a treatment
facility for adults with disabilities and for adult
offenders with serious alcohol and abuse problems. This
funding request has been incorporated into all the budget
plans.
Co-Chair Therriault questioned the final understanding
reached last year in relationship to the Harborview
facility. Ms. McConnell noted that last year, the
Legislature had included per bed costs, which then was
vetoed by the Administration. The Department of
Corrections has worked with that. She advised that it
would cost three million-dollars in operating expenses to
run the facility for a year. At that magnitude, the
Legislature must be comfortable before the city of Valdez
begins spending city funds. In-mate health care has not
been included in that average.
Co-Chair Hanley asked if the operating costs for Harborview
as a treatment center had been included in the proposed
operating budget. Ms. McConnell acknowledged that they had
been included in that budget as a fiscal note item.
Representative J. Davies asked where deferred maintenance
items, other than those related to schools had been
included in the proposed Capital Budget Request (CBR). Ms.
McConnell replied that each department with maintenance
responsibilities has some funds allocated for critical
deferred maintenance needs. The current proposed budget
does not deal with statewide-deferred maintenance. The
Governor has determined the priority school needs. There
is not enough money in the individual departmental budgets
to keep the State from sliding further into maintenance
problems.
Co-Chair Hanley requested a list of operating needs which
are above the Governor's budget request for each
department. Representative Martin referenced the airport
expansion and asked how that would be financed. Ms.
McConnell stressed that the $3 dollar passenger tax would
not be used for that request. Those funds would be
generated through Airport Revenue Bonds.
Co-Chair Therriault questioned how future costs would be
tracked. Ms. McConnell pointed out that fiscal notes
outline expense and debt service through the next six
years.
(Tape Change HFC 98- 10, Side 1).
Ms. McConnell stated that the complete lists of projects to
be funded for the water/sewer projects and Community
Capital Matching Grants are in the Governor's bill and
accessible on the OMB Web site.
She offered to provide Committee members a copy of the
five-year plan.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative Martin questioned the status of the Four Dam
Pool.
TOM LAWSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, replied
that the Four Dam Pool CBR increment would be used to make
various repairs to the Terror Lake tunnel as well as the
Tyee power transmission line. The money funds for this
increment would come from statutory designated program
receipts, users of the power. Representative Martin asked
if any money was being paid toward debt service. Mr.
Lawson offered to check into that concern for
Representative Martin.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Co-Chair Hanley requested information regarding the
water/sewer-funding summary.
KEITH KELTON, DIRECTOR, DIVISION OF FACILITY CONSTRUCTION &
OPERATION, DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
explained the process used to determine community
water/sewer needs. In terms of dollar amount, the
Municipal Matching Grants program which also serves urban
communities will remain status quo with last years request
of $2 million federal receipt dollars and $14.6 million
State general fund dollars.
To comply with last year's legislative budget request for
the Village Safe Water Program, there will need to be five
separate appropriations. The federal funds available for
match are $25 million dollars; $10 million dollars of that
amount is not required for authority taxation. That money
moves directly through the Rural Development Authority
(RDA) to the communities. Mr. Kelton stated that $14
million dollars would be requested from budget EPA funds,
$22 million GF dollars, $16 AHFC funds, which totals $53
million dollars for both programs.
Co-Chair Hanley asked if the Department administered the
Village Safe Water grants. Mr. Kelton replied that DEC
takes advantage of that opportunity to receive the fees for
the engineering studies, defined up-front, to authorize
those projects. Co-Chair Therriault asked if it would be
determined at that point if a community was capable to
manage the facility. Mr. Kelton explained that DEC works
closely with specialists within the Department of Community
and Regional Affairs during the feasibility study analysis
to define resources available within the communities to
operate and maintain the completed projects.
Representative J. Davies asked if rural development matches
were administered directly from the Rural Development
Authority (RDA). Mr. Kelton stated that those funds were
not received by the Department, although, do receive the
benefit of them. A match does have to be provided. Ms.
McConnell added that the project details outline where RDA
funds become involved.
Co-Chair Therriault asked the source of "other" funds used
to upgrade the state owned storage tanks.
KURT FREDRIKSSON, DIRECTOR, DIVISION OF SPILL PREVENTION &
RESPONSE, DEPARTMENT OF ENVIRONMENTAL CONSERVATION, noted
that the funding source would be the State Response Fund.
He added that there are two different programs within that
account, the Response Account and the Prevention Account.
FRONT SECTION
Co-Chair Hanley questioned the amount requested for finger
printing. Ms. McConnell stated that the amount requested
would fully fund the Sitka Academy expansion for the
women's dorm. Co-Chair Hanley asked how much money was
remaining from last year's capital appropriation for the
replacement system.
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY, stated that the full
amount of the appropriation was available for
reappropriation. Co-Chair Hanley asked if that amount was
increased in the capital budget elsewhere. Mr. Bischoff
replied that the Department would be requesting an
increment to the Criminal Records component to supplement
what was available and budgeted for the membership fee.
That increment will help the State locate finger print
records with six other western states. Ms. McConnell
added, at the time the initial request had been made and
approved, the Administration determined the best option for
the State would be to buy their own finger printing system.
Upon further research, it appeared that a better solution
would be to join the Western State's program. The proposal
now is to join that network. Mr.Bischoff stated that the
increase to the operating budget would be a $116 thousand
dollar on-going expense.
DEPARTMENT OF ADMINISTRATION
Representative Martin questioned the information service
source of funding.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, advised that those
funds would come from the Information Services Fund and
would be used for out dated equipment. Money in that fund
is carried over from year to year.
Co-Chair Hanley requested a summary of the total amount
spent each year in the State for computers as well as
information on the year 2000 changeover. Ms. McConnell
noted that a meeting had been scheduled with the new House
of Representatives Telecommunications Committee to discuss
the year 2000 change.
Co-Chair Therriault asked what the Time and Attendance
program was. Ms. Barton explained that currently, time and
attendance is a manual effort for paychecks. The proposed
increment would create an automated system from the
employee to the paycheck. Proposed is only Phase 1 to
determine what systems fit and could be integrated into
full automation. Ms. McConnell added, the Administration
is trying to adopt many of the best and innovative private
sector business practices.
DEPARTMENT OF COMMUNITY & REGIONAL AFFAIRS
Representative Kohring asked why the State was involved
with the Alaska Native Heritage Center project. Ms.
McConnell replied that there are a lot of projects in the
State, which create partnerships with local governments and
the private sector in developing jobs. The proposed
projects have been well supported because they not only
create jobs but also enhance tourism.
DEPARTMENT OF CORRECTIONS
Representative J. Davies referenced the deferred
maintenance line in the budget. Ms. McConnell noted that
was the first project listed in the detail book. On all
deferred maintenance appropriations, the Administration
does not recommend a specific appropriation for a specified
item. Where that money is ultimately spent should be for
the projects which have a critical need during the fiscal
year. Ms. McConnell noted that the Administration is
anticipating a CBR under $100 million dollars, and that
emergencies can not always be funded as requested by each
department. An attempt was made to include a balance of
projects, coming up with a minimum of $800 thousand
dollars.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Representative Kohring asked clarification on the welfare
reform information system.
LARRY STREUBER, FACILITIES/PLANNING CHIEF, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, stated that there was a need to upgrade the
systems for office automation in Anchorage and other
administrative areas. The need was to provide equipment
to interface with the mainframe in order to make the
changes required with passage of last year's legislation.
Ms. McConnell added that federal law has required the State
to overhaul its computer equipment, also.
DEPARTMENT OF REVENUE
LAURIE PERKINS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, responded to questions by
Representative Kohring regarding the Child Support
Enforcement Division (CSED). This year, the Department is
not requesting further capital funding for that division.
Representative Kohring voiced concern regarding complaints
he received about CSED's aggressive behavior. Ms.
McConnell reminded members that the CSED agency is involved
in highly emotional work, stressing that many people feel
that CSED should be more aggressive. There are tremendous
arrearages from people who have not paid what is due to
their own children. The computer system deals with data
issues necessary to meet federal requirements. Members
discussed constituent's frustrations in dealing with the
CSED agency.
Representative Martin requested updated information
regarding how many people are leaving the welfare roles to
join the work force.
(Tape Change HFC 98- 10, Side 2)
Co-Chair Hanley echoed Representative Martin's concern with
how the collection efforts are working within all the
departments. Ms. Perkins reiterated that most of the money
spent on computer results from increased data requirements
placed by the federal government. Collections are
increasing and the amount of time to implement these
changes is decreasing. She offered to provide specifics on
that information at subcommittee level. CSED computers
will be shut down the last week in February at which time
the new systems will be installed and up and running by
March 1st.
DEPARTMENT OF NATURAL RESOURCES
Representative J. Davies asked if the recorders office
project would allow digitizing documents directly.
NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF NATURAL RESOURCES, replied that the intent of
those projects was not to digitize the documents, but
rather, to replace equipment and film the 1970-1977 record
database. This project had been proposed last year.
Currently, the State is trying to work out a cooperative
partnership with private industry in this matter.
Representative Kohring voiced his support for the coal bed
methane increment. Mr. Bus agreed that this was an
exciting program with great potential.
HB 327 was HELD in Committee for further discussion.
ADJOURNMENT
The meeting adjourned at 3:55 P.M.
H.F.C. 1 1/28/98
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