Legislature(1999 - 2000)
01/25/1999 01:36 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S): OVERVIEW:
Department of Natural Resources
Military and Veterans Affairs
Department of Revenue
The following overview was taken in log note format. Tapes and
handouts will be on file with the House Finance Committee through the
21st Legislative Session, contact 465-2156. After the 21st Legislative
Session they will be available through the Legislative Library at 465-
3808.
Time Meeting Convened: 1:36 p.m.
Tape(s): HFC 99-4, Side 1 & 2
HFC 99-5, Side 1
PRESENT:
X
Representative G. Davis
X
Co-Chair Therriault
X
Representative Foster
X
Co-Chair Mulder
X
Representative Grussendorf
X
Representative Austerman
X
Representative Kohring
X
Representative Bunde
X
Representative Moses
X
Representative J. Davies
X
Representative Williams
ALSO PRESENT:
REPRESENTATIVE SMALLEY; REPRESENTATIVE MURKOWSKI; DAVID TEAL,
DIRECTOR, LEGISLATIVE FINANCE; ADJUTANT GENERAL PHILLIP E. OATES,
COMMISSIONER, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS; COLONEL
GEORGE CANNELOS, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS; NICO
BUS, ADMINSTRATIVE SERVICES MANAGER, DIVISION OF SUPPORT SERVICES,
DEPARTMENT OF NATURAL RESOURCES AND MILITARY AND VETERANS AFFAIRS;
CAROL CARROLL, DIRECTOR, DIVISION OF SUPPORT SERVICES, MILITARY AND
VETERANS AFFAIRS AND DEPARTMENT OF NATURAL RESOURCES; JOHN T.
SHIVELY, COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES; WILSON L.
CONDON, COMMISSIONER, DEPARTMENT OF REVENUE
LOG
SPEAKER
DISCUSSION
000
BEGIN TAPE 4, SIDE 1
38
Co-Chair Mulder
Convened the committee at 1:36 p.m.
MILITARY AND VETERANS AFFAIRS
55
ADJUTANT GENERAL
PHILLIP E. OATES,
COMMISSIONER,
DEPARTMENT OF
MILITARY AND
VETERANS AFFAIRS
Introduced staff of the Department of
Military and Veterans Affairs. Provided
members with an overview of the
Department of Military and Veterans
Affairs FY00 budget (see attached).
198
Commissioner Oates
Jobs and economic development are spread
throughout the state.
225
Commissioner Oates
Reviewed the attachment, page 2.
311
Commissioner Oates
Total impact of department is $245
million dollars each year.
353
Commissioner Oates
Reviewed page 4.
361
Commissioner Oates
Reviewed page 4a, Highlights.
445
Commissioner Oates
Reviewed page 5, which demonstrated the
impact of downsizing the department.
502
Commissioner Oates
Reviewed page 6 of the attachment, Future
Prospects of the Department of Military
and Veterans Affairs.
561
Commissioner Oates
Reviewed page 7, Organization. Noted that
almost every position has a combination
of state and federal funding.
709
Commissioner Oates
Reviewed page 8, Army National Guard.
788
Commissioner Oates
Reviewed page 9, Air National Guard.
809
Commissioner Oates
Reviewed page 10, Emergency Services.
841
Commissioner Oates
Reviewed page 11, Alaska Youth Challenge.
863
Commissioner Oates
Reviewed page 12, Counter Drug Program,
Alaska Naval Militia, and Office of
Veteran Affairs.
880
Commissioner Oates
Reviewed page 13.
949
Representative
Foster
Referred to page 7, asked for names of
directors.
956
Commissioner Oates
Named directors.
1018
Representative J.
Davies
Asked if page 7 contains net positions.
1032
Commissioner Oates
Yes, net positions. Do not see a
downsizing of the active air force.
1081
COLONEL GEORGE
CANNELOS, DEPARTMENT
OF MILITARY AND
VETERANS AFFAIRS
Provided additional information on NORAD,
page 7.
1107
Co-Chair Mulder
Asked a question regarding state/federal
support for the Challenge program.
1123
CAROL CARROLL,
DIRECTOR, DIVISION
OF SUPPORT SERVICES,
MILITARY AND
VETERANS AFFAIRS
Explained that the program is funded 40
percent state and 60 percent federal.
1199
Co-Chair Mulder
Asked status of the Office of Veterans
Affairs.
1253
Commissioner Oates
1 new position funded in the Department
of Military and Veterans Affairs is 100
percent state.
1277
Co-Chair Therriault
Referred to page 14, adjustments.
1286
Ms. Carroll
FY00 is $9,000 dollars above FY99. The
difference is due to oil and hazardous
waste funding that is being passed
through the Department of Military and
Veterans Affairs from the Department of
Environmental Conservation. Further
explained page 14.
1363
Co-Chair Mulder
Noted that there is a fund shift to the
capital budget.
1379
Ms. Carroll
Federal funds are being shifted to the
capital budget.
1403
Co-Chair Mulder
Net result is one less position?
1435
Commissioner Oates
There is a new position to work on Y2K
issues.
1456
NICO BUS,
ADMINSTRATIVE
SERVICES MANAGER,
DIVISION OF SUPPORT
SERVICES, MILITARY
AND VETERANS AFFAIRS
Explained that there is one less position
overall. Y2K will be paid from Governor's
Office. Explained other position shifts.
Commissioner Oates
Explained leave.
DEPARTMENT OF NATURAL RESOURCES
1530
JOHN T. SHIVELY,
COMMISSIONER,
DEPARTMENT OF
NATURAL RESOURCES
Reviewed Department of Natural Resources'
FY00 budget.
Commissioner Shively
Noted that the economy has done
reasonably well. Observed that the
department has set goals and missions.
1620
Commissioner Shively
Discussed Y2K. The department is in good
shape in regards to preparations.
Most of staff is in Anchorage. They will
be moving to the Bank of America building
1670
Commissioner Shively
Discussed electronic commerce. Receives
information from industry.
1712
Commissioner Shively
Discussed land sales.
1729
Commissioner Shively
Discussed Recorder's Office. Workload
has increased dramatically. New system
is being developed.
1769
Commissioner Shively
Discussed oil and gas leasing and sales.
Cook inlet areawide sale is scheduled for
April.
1823
Commissioner Shively
Discussed timber sales. Timber sales
have been small. Can't compete with
federal supplies.
1849
Commissioner Shively
Discussed mining sales.
1872
Commissioner Shively
Discussed pipeline office. The state
will be involved with TAPS negotiations.
1922
Commissioner Shively
Discussed park user fees. They have
increased approximately 5%. Deferred
maintenance the biggest problem.
1934
Commissioner Shively
First 3 agriculture parcels were sold
this year. Other sales are expected. The
state still owns agriculture businesses,
such as the creamery. Need to look at
privatizing.
1979
Commissioner Shively
Asking for 4 major increments. One
position each for Oil and Gas, staff for
electronic commerce, mining and the
Recorder's Office. Staff in the
Recorder's Office would be funded from
fees.
2047
Co-Chair Mulder
Referred to the creamery
Commissioner Shively
No state funds in the creamery.
2088
Commissioner Shively
Location in Anchorage is not good.
2117
Representative Bunde
Expressed concern that the recorder's
Office is having serious problems. Asked
if there have been changes.
2179
Commissioner Shively
Trying to make changes. Believe new
system will be able to have verification
with in 1 to 2 days. Discussed
efficiencies in new system.
2268
Representative Bunde
Questioned if Recorder's Office should be
privatized.
2282
Representative G.
Davis
Referred to problems with new parks being
manned.
2297
Commissioner Shively
Problem that the department cannot manage
them well. Hard time finding
concessionaires.
2369
Co-Chair Mulder
Set priorities for parks.
Co-Chair Mulder
Look at possible reductions for FY99?
Commissioner Shively
Need to keep in mind that the
department's budget has had decreases
while the department has increased.
Recommended that statutes need to be
repealed if reductions are going to
occur.
Commissioner Shively
In response to a question by Co-Chair
Therriault stated that they would have a
list of recommendations for reductions by
next week.
178
Co-Chair Therriault
Noted that the Department of Natural
Resources has been good about making
suggestions for possible reductions.
232
Representative
Williams
Asked if the Administration had looked at
combining agencies?
Commissioner Shively
Pointed out that the Department of
Natural Resources manages, other agencies
do permitting. Noted that it is difficult
for government to give its overseeing
responsibility to private industry.
Private sector has been helpful in
funding studies regarding forestry.
456
Representative
Williams
Emphasized that discussions with private
landowners indicated that they could take
over some of the state's functions.
479
Representative
Williams
Asked information on Totem park in
Ketchikan. Noted that the Totem park is
in competition with the private sector.
Commissioner Shively
Stressed that all parks compete with the
private sector.
630
Representative
Kohring
Suggested that revenue could be generated
through land sales. Noted that the Mat-
Su has 2 percent of its land in the
private sector. Wants to identify lands
that can be offered as land sales.
763
Commissioner Shively
Land has to be appraised because state is
tasked with getting fair market value.
Expensive to the state to provide public
sector with land since they are
accompanied by demands for roads and
other services.
815
Representative Bunde
Have they considered what can be done to
meet the immediate short fall?
873
Commissioner Shively
The Department of Natural Resources is
driven by personnel costs. If personnel
are laid off there will be delays or
things would not be done. Cannot see
substantial reductions without laying off
persons.
917
Co-Chair Therriault
Increase in the Agricultural Development?
Mr. Bus
Increases are in the Land Development
Center.
Representative
Foster
Noted that prices for minerals are down.
995
Commissioner Shively
Trying to help mining through programs.
Pointing out that the state has long term
resources.
1046
Representative
Williams
How far are they with the Spruce Bark
beetle task force recommendations
1075
Commissioner Shively
They are cooperating with industry. The
federal government is not inclined to
assist through harvesting.
1112
Representative
Austerman
Anything being done to stop the spread?
1140
Commissioner Shively
Did not know.
DEPARTMENT OF REVENUE
1214
WILSON L. CONDON,
COMMISSIONER,
DEPARTMENT OF
REVENUE
Introduced the Department of Revenue.
Noted that most Department of Revenue
operations raise more money than they
spend.
Commissioner Condon
Discussed responsibilities. The Child
Support Enforcement Division needs to
modify the funding source for the state
match. Welfare reform has reduced
federal Child Support Enforcement
Division payments.
Commissioner Condon
Need to correct oversight that left the
Treasury Division short funded.
1358
Commissioner Condon
Reviewed requests for FY00. Noted that
the $12.5 million dollar general fund
would pay for a lot of operations.
1433
Commissioner Condon
Discussed the Child Support Enforcement
Division. Most states use federal
incentive money equal to 12.9 percent of
total welfare payments.
1519
Commissioner Condon
State of Alaska uses incentive money and
general fund money to provide state match
for the Child Support Enforcement
Division. Welfare money is used in other
areas.
1556
Commissioner Condon
The welfare reform program has been
successful. The state has recaptured
funding through the Child Support
Enforcement Division. This has reduced
the incentive program, but not reduced
the overall workload. The total amount
of cases has increased. Discussed the
Department of Revenue's proposal to shift
funding to welfare incentive payments.
1660
Commissioner Condon
Discussed the budget of the Division of
Treasury. The division was expected to
receive $500 thousand dollars from the
Constitutional Budget Reserve. The money
was not appropriated. There is a
shortfall of $500 thousand dollars in
FY99.
1729
Commissioner Condon
Required installing new computer system
in the Child Support Enforcement Division
to comply with federal requirements. The
FY00 budget contains a $200 thousand
dollar increment to fund.
1784
Co-Chair Mulder
Result of not funding Treasury Division?
Commissioner Condon
The Treasury Division would have to be
shut down in mid March.
1810
Co-Chair Mulder
Asked for further explanation of funding
proposal for the Child Support
Enforcement Division.
Commissioner Condon
Use money collected back from non-
custodial parents. Money is not being
used for the public assistant program.
1882
Co-Chair Mulder
Is there more than one formula? Can the
formula be changed?
1901
Commissioner Condon
Discussed options for funding match.
1943
Representative Bunde
More information on Treasury funding.
Commissioner Condon
Explained that it was passed by House,
but failed to pass the Senate.
Representative Bunde
Asked if the Administration had
considered attaching a fee for Child
Support Enforcement Division collections.
Commissioner Condon
The administration is looking at that
possibility.
2006
Representative Bunde
Asked if they had tracked compensation
between divisions and corporations.
2020
Commissioner Condon
There is some difference between
compensation in corporations and
divisions.
2040
Representative J.
Davies
Does the department have a preference as
to where funds come from
Commissioner Condon
No.
2087
Commissioner Condon
The state gets about one-quarter of the
funds collected for CSED.
2133
Commissioner Condon
Explained how child support payments are
collected.
2210
Co-Chair Mulder
Asked status of Governor's interactive
program.
Commissioner Condon
Should be available next week.
Co-Chair Mulder
Has he been directed to look at reduction
scenarios.
2254
Commissioner Condon
Discussions have occurred. Emphasized
that program costs most take into account
whether they are bringing in more revenue
than they are costing.
2329
Co-Chair Mulder
Adjourned at 3:06 p.m.
HOUSE FINANCE COMMITTEE
LOG NOTES
1/25/99
HFC 7 1/25/99
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