Legislature(1999 - 2000)

01/29/1999 01:35 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                                                                                
                                                                                                                                
GENERAL SUBJECT(S): FY00 Department Overviews:                                                                                  
 Department of Corrections                                                                                                      
 Department of Administration                                                                                                   
 Department of Fish and Game                                                                                                    
 Department of Transportation and Public Facilities                                                                             
                                                                                                                                
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 at 1:35 P.M.                                                                                              
                                                                                                                                
TAPE HFC 99 - 11, Side 1.                                                                                                       
TAPE HFC 99 - 11, Side 2.                                                                                                       
TAPE HFC 99 - 12, Side 1.                                                                                                       
TAPE HFC 99 - 12, Side 2.                                                                                                       
                                                                                                                                
                                                                                                                                
PRESENT:                                                                                                                        
X                                                                                                                               
Representative G. Davis                                                                                                         
Absent                                                                                                                          
Co-Chair Therriault                                                                                                             
X                                                                                                                               
Representative Foster                                                                                                           
X                                                                                                                               
Co-Chair Mulder                                                                                                                 
X                                                                                                                               
Representative Grussendorf                                                                                                      
Absent                                                                                                                          
Representative Austerman                                                                                                        
X                                                                                                                               
Representative Kohring                                                                                                          
X                                                                                                                               
Representative Bunde                                                                                                            
X                                                                                                                               
Representative  Moses                                                                                                           
Absent                                                                                                                          
Representative J. Davies                                                                                                        
Absent                                                                                                                          
Representative Williams                                                                                                         
                                                                                                                                
ALSO PRESENT:                                                                                                                   
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE; MARGARET PUGH,                                                                       
COMMISSIONER, DEPARTMENT OF CORRECTIONS; DWAYNE PEEPLES, DIRECTOR,                                                              
DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF CORRECTIONS;                                                                 
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,                                                                   
DEPARTMENT OF ADMINISTRATION; FRANK RUE, COMMISSIONER, DEPARTMENT OF                                                            
FISH AND GAME; KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE                                                               
SERVICES, DEPARTMENT OF FISH AND GAME; JOSEPH PERKINS, COMMISSIONER,                                                            
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES; NANCY SLAGLE,                                                               
DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF                                                                    
TRANSPORTATION AND PUBLIC FACILITIES; ROBERT POE, COMMISSIONER,                                                                 
DEPARTMENT OF ADMINISTRATION; ALISON ELGEE, DEPUTY COMMISSIONER,                                                                
DEPARTMENT OF ADMINISTRATION;                                                                                                   
                                                                                                                                
                                                                                                                                
TAPE 99-11, SIDE 1                                                                                                              
                                                                                                                                
000                                                                                                                             
Co-Chair Mulder                                                                                                                 
Convened the House Finance Committee                                                                                            
meeting at 1:30 P.M.                                                                                                            
                                                                                                                                
                                                                                                                                
DEPARTMENT OF CORRECTIONS                                                                                                       
                                                                                                                                
144                                                                                                                             
MARGARET PUGH,                                                                                                                  
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
CORRECTIONS                                                                                                                     
Noted that the Department of Corrections'                                                                                       
primary mission is to provide statewide                                                                                         
prison and jail service and supervision                                                                                         
of parolees.  She provided members with a                                                                                       
handout, FY00 Operating Budget Overview                                                                                         
(copy on file).                                                                                                                 
301                                                                                                                             
Commissioner Pugh                                                                                                               
Reviewed page 2.                                                                                                                
343                                                                                                                             
Commissioner Pugh                                                                                                               
Alaska is 6th in the nation in regards to                                                                                       
inmate growth. Continued growth will                                                                                            
result in future problems with                                                                                                  
overcrowding.                                                                                                                   
491                                                                                                                             
Commissioner Pugh                                                                                                               
Reviewed short-term measures to deal with                                                                                       
overcrowding.                                                                                                                   
531                                                                                                                             
Commissioner Pugh                                                                                                               
A year ago the Department of Corrections                                                                                        
was at 125 percent capacity.  The                                                                                               
department is now below 100 percent.                                                                                            
631                                                                                                                             
Commissioner Pugh                                                                                                               
Discussed measures that were taken.  Out-                                                                                       
of-state contracts were entered.                                                                                                
Successful tent programs were operated                                                                                          
around the state.                                                                                                               
668                                                                                                                             
Commissioner Pugh                                                                                                               
Began in November to use credit cards for                                                                                       
bail in some institutions.  This program                                                                                        
has been successful.                                                                                                            
718                                                                                                                             
Commissioner Pugh                                                                                                               
Expect to open community residential                                                                                            
center (CRC) beds in Nome.                                                                                                      
750                                                                                                                             
Commissioner Pugh                                                                                                               
Noted that the electronic monitoring                                                                                            
program is scheduled to begin soon.                                                                                             
757                                                                                                                             
Commissioner Pugh                                                                                                               
Discussed new facilities.  If everything                                                                                        
continues to go well, Anchorage 400-bed                                                                                         
facility will open around 1/2002.                                                                                               
824                                                                                                                             
Commissioner Pugh                                                                                                               
Discussed Highland Mountain conversion to                                                                                       
an all-female facility.  The mental                                                                                             
health unit and substance abuse centers                                                                                         
are fully functional.                                                                                                           
904                                                                                                                             
Commissioner Pugh                                                                                                               
Discussed victims advisory groups.                                                                                              
941                                                                                                                             
Commissioner Pugh                                                                                                               
Hired 2 new probation officers and                                                                                              
continued work on upgrading information                                                                                         
systems.                                                                                                                        
967                                                                                                                             
Commissioner Pugh                                                                                                               
Budget focuses on providing for annual                                                                                          
growth in offender population.  They are                                                                                        
working on a five-year plan.                                                                                                    
1067                                                                                                                            
Commissioner Pugh                                                                                                               
Requesting part year funding for                                                                                                
temporary housing units in Juneau,                                                                                              
Fairbanks and Bethel.  Will support 54                                                                                          
prisoners each. Costs will be comparable                                                                                        
to sending prisoners to out-of-state                                                                                            
contract facilities.                                                                                                            
1111                                                                                                                            
Commissioner Pugh                                                                                                               
Requesting new 40-bed center at Spring                                                                                          
Creek for youths.                                                                                                               
1128                                                                                                                            
Commissioner Pugh                                                                                                               
Difference in actual cost for out of                                                                                            
state beds will be included.                                                                                                    
1201                                                                                                                            
Commissioner Pugh                                                                                                               
Noted that there are fund source changes.                                                                                       
To jumpstart CRC beds, FY 96 FY 97                                                                                              
federal grants were used.                                                                                                       
1207                                                                                                                            
Commissioner Pugh                                                                                                               
Referred to mental health planner.                                                                                              
1224                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Why is there a 16 percent increase in                                                                                           
parolees?                                                                                                                       
1253                                                                                                                            
Commissioner Pugh                                                                                                               
Explained that it is an increase in                                                                                             
probation and parolees.  Both are growing                                                                                       
populations.  The increase over last year                                                                                       
was in keeping with inmate growth.  There                                                                                       
may be bulges in certain areas due to                                                                                           
individual cases such as drug arrests.                                                                                          
1328                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Questioned the per capita incarcerated                                                                                          
rate in Alaska compared to other states.                                                                                        
1352                                                                                                                            
Commissioner Pugh                                                                                                               
Thought that Alaska is high, would                                                                                              
provide exact numbers.                                                                                                          
1377                                                                                                                            
Representative                                                                                                                  
Kohring                                                                                                                         
Questioned if the state's capacity level                                                                                        
includes new facilities.                                                                                                        
1403                                                                                                                            
Commissioner Pugh                                                                                                               
No, the capacity rate is based on current                                                                                       
facilities only.  Today is the first time                                                                                       
that Cook Inlet is below full capacity.                                                                                         
1425                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Referred to Wildwood.                                                                                                           
1460                                                                                                                            
Commissioner Pugh                                                                                                               
Construction at Wildwood is related to                                                                                          
improvements for administrative area and                                                                                        
increased beds.                                                                                                                 
1483                                                                                                                            
Co-Chair Mulder                                                                                                                 
Discussed contracts for outside beds.                                                                                           
Questioned cost of beds.                                                                                                        
1500                                                                                                                            
Commissioner Pugh                                                                                                               
$53 dollars per bed.  There are 902                                                                                             
inmates that are out-of-state.  There are                                                                                       
some that are out under federal                                                                                                 
supervision. There are 873 in Arizona.                                                                                          
Emphasized that there are not a lot of                                                                                          
additional prisoners that can be                                                                                                
transferred out-of-state.                                                                                                       
1602                                                                                                                            
Co-Chair Mulder                                                                                                                 
Estimated that out-of-state prisoners                                                                                           
would remain between 850-900.                                                                                                   
1622                                                                                                                            
Representative                                                                                                                  
Kohring                                                                                                                         
Questioned activities at Point Mackenzie.                                                                                       
1655                                                                                                                            
Commissioner Pugh                                                                                                               
20 new beds were built. Inmates are                                                                                             
rehabilitating rooms.                                                                                                           
1663                                                                                                                            
Representative                                                                                                                  
Kohring                                                                                                                         
Asked the intent of the Department of                                                                                           
Corrections for the facility.                                                                                                   
1676                                                                                                                            
Commissioner Pugh                                                                                                               
The overall goal is for it to remain a                                                                                          
farm that can raise animals and                                                                                                 
foodstuffs.                                                                                                                     
1721                                                                                                                            
DWAYNE PEEPLES,                                                                                                                 
DIRECTOR, DIVISION                                                                                                              
OF ADMINISTRATIVE                                                                                                               
SERVICES,                                                                                                                       
DEPARTMENT OF                                                                                                                   
CORRECTIONS                                                                                                                     
In response to a question by                                                                                                    
Representative G. Davis, clarified that                                                                                         
the state is spending approximately $21.5                                                                                       
million on out-of-state prisoners.                                                                                              
1769                                                                                                                            
                                                                                                                                
DEPARTMENT OF ADMINISTRATION                                                                                                    
1775                                                                                                                            
ROBERT POE,                                                                                                                     
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
ADMINISTRATION                                                                                                                  
Provided members with handout, FY00                                                                                             
Budget Overview (copy on file).                                                                                                 
1813                                                                                                                            
Commissioner Poe                                                                                                                
Two major areas of concern; Y2K and labor                                                                                       
contracts.                                                                                                                      
1862                                                                                                                            
Commissioner Poe                                                                                                                
Discussed Division of Motor Vehicles                                                                                            
(DMV).  Noted that DMV has an 11 percent                                                                                        
acceptance rate.                                                                                                                
1901                                                                                                                            
Commissioner Poe                                                                                                                
Noted budget issues.  Observed the fiscal                                                                                       
deficit.  Emphasized willingness to look                                                                                        
at ways to reduce costs.                                                                                                        
1956                                                                                                                            
Commissioner Poe                                                                                                                
Stressed the need to find a new funding                                                                                         
mechanism for the Alaska Oil and Gas                                                                                            
Conservation Commission. Discussed $238                                                                                         
thousand dollar increment to bring                                                                                              
inspectors even with number of wells.                                                                                           
Stressed that additional inspectors are                                                                                         
needed to serve industry.                                                                                                       
1991                                                                                                                            
Commissioner Poe                                                                                                                
Discussed pioneer homes.  New rate                                                                                              
increase would result in 63 new                                                                                                 
positions. There would be two new                                                                                               
positions per home.                                                                                                             
                                                                                                                                
Commissioner Poe                                                                                                                
Observed that the children's initiative                                                                                         
would be funded through tobacco                                                                                                 
settlement funding.                                                                                                             
                                                                                                                                
Commissioner Poe                                                                                                                
Discussed leasing.  Noted that it is                                                                                            
traditionally underfunded.                                                                                                      
2031                                                                                                                            
Commissioner Poe                                                                                                                
Observed that the Office of Public                                                                                              
Advocacy and the Alaska Public Defenders                                                                                        
Agency have been underfunded.  There are                                                                                        
increments for both. Office of Public                                                                                           
Advocacy is involved in child in need                                                                                           
cases and public guardian cases.                                                                                                
2084                                                                                                                            
Commissioner Poe                                                                                                                
Noted growth in senior population.                                                                                              
2105                                                                                                                            
Commissioner Poe                                                                                                                
Working with Senator Pearce to change                                                                                           
funding for the Oil Gas Conservation                                                                                            
Commission.                                                                                                                     
                                                                                                                                
Commissioner Poe                                                                                                                
Discussed longevity bonus.                                                                                                      
2143                                                                                                                            
Commissioner Poe                                                                                                                
Discussed Work Place Alaska.  Work Place                                                                                        
Alaska helps managers.  People can apply                                                                                        
via the Internet.   The division's                                                                                              
personnel have decreased by a third since                                                                                       
1991.                                                                                                                           
2199                                                                                                                            
Commissioner Poe                                                                                                                
Discussed the $150 thousand dollar                                                                                              
increment for senior services.  The                                                                                             
increment would fund services that are                                                                                          
required by statute. It would replace                                                                                           
mental health funds that were not                                                                                               
available.                                                                                                                      
2214                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Referred to the Bank of America building.                                                                                       
                                                                                                                                
Commissioner Poe                                                                                                                
Will get back with estimated savings.                                                                                           
2279                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Referred to new positions at the pioneer                                                                                        
homes.  Questioned how positions will                                                                                           
address concerns regarding level of                                                                                             
skill.                                                                                                                          
2309                                                                                                                            
ALISON ELGEE,                                                                                                                   
DEPUTY                                                                                                                          
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
ADMINISTRATION                                                                                                                  
Pointed out that a public forum was                                                                                             
conducted in Anchorage last week. There                                                                                         
are areas that need work. Department of                                                                                         
Administration heard a number of positive                                                                                       
comments. New positions are to keep ahead                                                                                       
of the curve. Current staffing is only                                                                                          
adequate.                                                                                                                       
000                                                                                                                             
TAPE 99-11, SIDE 2                                                                                                              
TAPE CHANGE                                                                                                                     
039                                                                                                                             
SHARON BARTON,                                                                                                                  
DIRECTOR, DIVISION                                                                                                              
OF ADMINISTRATIVE                                                                                                               
SERVICES,                                                                                                                       
DEPARTMENT                                                                                                                      
OFADMINISTRATION                                                                                                                
In response to a comment by                                                                                                     
Representative Bunde, observed that the                                                                                         
department's handout is also used for                                                                                           
training employees.                                                                                                             
214                                                                                                                             
Co-Chair Mulder                                                                                                                 
Questioned the intention of labor                                                                                               
negotiations. Observed that the                                                                                                 
Legislature passed a resolution during                                                                                          
the 1998 session regarding labor                                                                                                
negotiations.                                                                                                                   
243                                                                                                                             
Commissioner Poe                                                                                                                
Stressed that the Department of                                                                                                 
Administration intends to keep the                                                                                              
legislature's position in mind                                                                                                  
309                                                                                                                             
Commissioner Poe                                                                                                                
Discussed new positions; 17 positions are                                                                                       
technical, 10 programmer positions were                                                                                         
previously authorized, 10 are non-general                                                                                       
funds, 63 are for new positions in                                                                                              
pioneer homes, 3 in the Office of Public                                                                                        
Advocacy are related to child protection                                                                                        
funded by tobacco, and 6 positions to                                                                                           
work on Y2K issues will only be during                                                                                          
Y2K project.                                                                                                                    
387                                                                                                                             
Ms. Barton                                                                                                                      
There are only 3 positions that are                                                                                             
funded through the general fund. They are                                                                                       
in the Office of Public Advocacy.                                                                                               
407                                                                                                                             
Representative                                                                                                                  
Kohring                                                                                                                         
Referred to the newly named Public                                                                                              
Communications Services component.                                                                                              
435                                                                                                                             
Ms. Elgee                                                                                                                       
This component was formerly called Alaska                                                                                       
Rural Communications Services. It was                                                                                           
renamed to reflect that it also covers                                                                                          
satellite infrastructure, and public                                                                                            
radio and television broadcasting.                                                                                              
499                                                                                                                             
Representative                                                                                                                  
Kohring                                                                                                                         
Expressed concern that public                                                                                                   
broadcasting should be paid for with                                                                                            
state dollars.                                                                                                                  
544                                                                                                                             
Representative G.                                                                                                               
Davis                                                                                                                           
Observed that the Division of Motor                                                                                             
Vehicles brings in revenues over 30                                                                                             
million and only costs under 8 million.                                                                                         
                                                                                                                                
Representative                                                                                                                  
Kohring                                                                                                                         
Time to consider what is the primary                                                                                            
focus of state government.  Need to                                                                                             
eliminate programs.                                                                                                             
                                                                                                                                
                                                                                                                                
DEPARTMENT OF FISH AND GAME                                                                                                     
697                                                                                                                             
FRANK RUE,                                                                                                                      
COMMISSIONER,                                                                                                                   
DEPARTMENT OF FISH                                                                                                              
AND GAME                                                                                                                        
Provided members with a handout, Mission                                                                                        
Statement, Department of Fish and Game                                                                                          
(copy on file).                                                                                                                 
787                                                                                                                             
COMMISSIONER RUE                                                                                                                
Introduced department directors.                                                                                                
847                                                                                                                             
Commissioner Rue                                                                                                                
Observed that there are six divisions.                                                                                          
There are 820 permanent full-time                                                                                               
employees and approximately 1000 part-                                                                                          
time employees around the state.  Mission                                                                                       
to provide opportunity to use Alaska's                                                                                          
resources on a sustained yield basis.                                                                                           
                                                                                                                                
Commissioner Rue                                                                                                                
Discussed opportunities to use resources.                                                                                       
Noted that the department handles fishing                                                                                       
licenses.                                                                                                                       
                                                                                                                                
Commissioner Rue                                                                                                                
Management costs of commercial fisheries                                                                                        
brings in 2 percent more money than is                                                                                          
spent.                                                                                                                          
1030                                                                                                                            
Commissioner Rue                                                                                                                
Pointed out that users pay for many                                                                                             
programs.                                                                                                                       
1047                                                                                                                            
Commissioner Rue                                                                                                                
Maintained that Alaska has the healthiest                                                                                       
stocks, habitat and the best management                                                                                         
in the nation. Pointed out that Congress                                                                                        
has expended $100 million dollars to fix                                                                                        
salmon habitat in the Northwest United                                                                                          
States. This is several times greater                                                                                           
than the Department of Fish and Game's                                                                                          
annual general funds budget.                                                                                                    
1131                                                                                                                            
Commissioner Rue                                                                                                                
Commercial salmon harvest is 98 percent                                                                                         
of the US commercial salmon harvest and                                                                                         
10 times that of British Columbia,                                                                                              
Canada.                                                                                                                         
1188                                                                                                                            
Commissioner Rue                                                                                                                
Acknowledged that there are problems,                                                                                           
emphasized commitment to sustained yield                                                                                        
and providing opportunities.                                                                                                    
1219                                                                                                                            
Commissioner Rue                                                                                                                
Emphasized that the department needs to                                                                                         
maintain good research and science,                                                                                             
promote good management, protect habitat                                                                                        
and have good public process.                                                                                                   
1237                                                                                                                            
Commissioner Rue                                                                                                                
Pointed out that the Department of Fish                                                                                         
and Game's jurisdiction is greater than                                                                                         
other departments. The Department of Fish                                                                                       
and Game has responsibility offshore and                                                                                        
inland, and for international treaties.                                                                                         
1292                                                                                                                            
Commissioner Rue                                                                                                                
Discussed page 3.  The Department of Fish                                                                                       
and Game receives 1.6 percent of the                                                                                            
state's general funds. The department's                                                                                         
general funds percentage has been going                                                                                         
down as federal funding has increased.                                                                                          
1387                                                                                                                            
Commissioner Rue                                                                                                                
Discussed page 5. Fewer general funds                                                                                           
than 1979.                                                                                                                      
1397                                                                                                                            
Commissioner Rue                                                                                                                
Discussed page 6. Noted breakdown of                                                                                            
departments' budget by division.  76                                                                                            
percent of general funds are in                                                                                                 
commercial fisheries.                                                                                                           
1457                                                                                                                            
Commissioner Rue                                                                                                                
Discussed page 7. Federal funds are                                                                                             
growing. General funds are staying about                                                                                        
the same. Interagency receipts are                                                                                              
growing.                                                                                                                        
1532                                                                                                                            
KEVIN BROOKS,                                                                                                                   
DIRECTOR, DIVISION                                                                                                              
OF ADMINISTRATIVE                                                                                                               
SERVICES,                                                                                                                       
DEPARTMENT OF FISH                                                                                                              
AND GAME                                                                                                                        
Discussed interagency receipts.  He                                                                                             
observed that this is the result of SB
250, which was passed in 1998.  There is                                                                                        
a transfer into the divisions of Sport                                                                                          
Fisheries and Wildlife Conservation due                                                                                         
to SB 250. The transfer funds projects                                                                                          
that were previously paid with Fish and                                                                                         
Game funds.  There is an additional $5                                                                                          
million dollars in interagency receipts.                                                                                        
                                                                                                                                
Mr. Brooks                                                                                                                      
Discussed other legislation passed in                                                                                           
1998.  There has been an $1.9 million                                                                                           
dollar increase in federal receipt                                                                                              
authority from federal aid contracts                                                                                            
1715                                                                                                                            
Mr. Brooks                                                                                                                      
Discussed test fishery receipts in the                                                                                          
Division of Commercial Fisheries. These                                                                                         
are non-general funds positions.                                                                                                
1731                                                                                                                            
Mr. Brooks                                                                                                                      
Noted that Exxon Valdez Oil Spill                                                                                               
Settlement funds are being reduced.                                                                                             
1757                                                                                                                            
Mr. Brooks                                                                                                                      
Fish and Game funds are down.                                                                                                   
1761                                                                                                                            
Mr. Brooks                                                                                                                      
Total funds are similar.                                                                                                        
1783                                                                                                                            
Co-Chair Mulder                                                                                                                 
Referred to interagency receipts.                                                                                               
                                                                                                                                
Mr. Brooks                                                                                                                      
Noted that there are no new items.                                                                                              
                                                                                                                                
Co-Chair Mulder                                                                                                                 
Referred to the $2.5 million increase to                                                                                        
the Western region.                                                                                                             
1823                                                                                                                            
Mr. Brooks                                                                                                                      
Explained that there is an increase in                                                                                          
test fisheries receipts for the observer                                                                                        
program.                                                                                                                        
                                                                                                                                
Co-Chair Mulder                                                                                                                 
Asked if revenues are down for commercial                                                                                       
fisheries.                                                                                                                      
1846                                                                                                                            
Mr. Brooks                                                                                                                      
Stated that they would have the estimated                                                                                       
amount around 2/15/99.  Estimate that                                                                                           
revenues are down.                                                                                                              
1883                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Noted that $700 thousand dollars were                                                                                           
paid to vendors for licensing.  Asked if                                                                                        
it would be possible to recapture costs                                                                                         
by having the department sell licenses.                                                                                         
Suggested that a cap be put on the amount                                                                                       
vendors can sell. Referred to the Duck                                                                                          
Stamp program.  Pointed out that there is                                                                                       
a bargain on harvest tags. Questioned if                                                                                        
seniors should continue to receive                                                                                              
discounts.                                                                                                                      
2008                                                                                                                            
Commissioner Rue                                                                                                                
Trying to make it easier to get licenses                                                                                        
over the Internet.                                                                                                              
2041                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Asked if the decrease in licenses last                                                                                          
season was due to increased charges or to                                                                                       
poor forecasts on fisheries                                                                                                     
                                                                                                                                
Mr. Brooks                                                                                                                      
Responded that per unit sales were within                                                                                       
1 percent of the previous year's.  Noted                                                                                        
that there was a shift from non-resident                                                                                        
licenses.                                                                                                                       
2085                                                                                                                            
Co-Chair Mulder                                                                                                                 
Suggested that they could restructure the                                                                                       
price to gain greater sales.                                                                                                    
2098                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Questioned 45 new positions? Noted that                                                                                         
the purpose of one position is to work                                                                                          
with schools.  Questioned what that                                                                                             
position would accomplish.                                                                                                      
2120                                                                                                                            
Commissioner Rue                                                                                                                
Explained that the overall budget is                                                                                            
going up. General funds are going down.                                                                                         
                                                                                                                                
Mr. Brooks                                                                                                                      
Explained that none of the new positions                                                                                        
are paid by general fund dollars.  The                                                                                          
Division of Sport Fish has 12, nine-month                                                                                       
positions that are going to full-time.                                                                                          
Observed that the number of hunters is                                                                                          
decreasing nationally.                                                                                                          
2272                                                                                                                            
Commissioner Rue                                                                                                                
Want to encourage kids to hunt with their                                                                                       
parents.                                                                                                                        
                                                                                                                                
Representative G.                                                                                                               
Davis                                                                                                                           
Noted that the economy is good.                                                                                                 
Government services are being requested                                                                                         
while dollars are going down.                                                                                                   
2360                                                                                                                            
Representative                                                                                                                  
Moses                                                                                                                           
Pointed out that vendors sell licenses as                                                                                       
a convenience for customers.                                                                                                    
                                                                                                                                
                                                                                                                                
DEPARTMENT OF TRANSPORTATION AND PUBLIC                                                                                         
FACILITIES                                                                                                                      
000                                                                                                                             
TAPE  99-12, SIDE 1                                                                                                             
TAPE CHANGE                                                                                                                     
009                                                                                                                             
JOSEPH PERKINS,                                                                                                                 
COMMISSIONER,                                                                                                                   
DEPARTMENT OF                                                                                                                   
TRANSPORTATION AND                                                                                                              
PUBLIC FACILITIES                                                                                                               
Provided members with handout, FY00                                                                                             
Budget Overview, Department of                                                                                                  
Transportation and Public Facilities                                                                                            
(copy on file).                                                                                                                 
0071                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
Noted that the economy is good and that                                                                                         
transportation is important to                                                                                                  
maintaining a good economy. Maintained                                                                                          
that the state's transportation system                                                                                          
has improved.                                                                                                                   
192                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Observed that the majority of residents                                                                                         
surveyed felt that the Department of                                                                                            
Transportation and Public Facilities is                                                                                         
doing a good job. 52 percent of Alaskans                                                                                        
surveyed are satisfies with roads.                                                                                              
268                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Noted that a lot of gravel roads still                                                                                          
need to be paved.  The federal capital                                                                                          
budget has doubled.                                                                                                             
367                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed the Department of                                                                                                     
Transportation and Public Facilities'                                                                                           
operating budget. Noted that the budget                                                                                         
has gone down over the last 7 years and                                                                                         
has not kept up with inflation.  A large                                                                                        
amount of the department's costs are                                                                                            
fixed.                                                                                                                          
                                                                                                                                
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed page 3. Pointed out that                                                                                              
federal highway funds are being used to                                                                                         
increase maintenance.  The federal                                                                                              
government won't pay for winter                                                                                                 
maintenance. The department is at the                                                                                           
maximum amount that can be spent for                                                                                            
summer maintenance. Anymore and there                                                                                           
will be cuts in winter maintenance.                                                                                             
Without the use of federal funds the                                                                                            
department would have to lay off winter                                                                                         
employees                                                                                                                       
561                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Can go 2 - 3 years before the federal                                                                                           
funds are reduced.                                                                                                              
587                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed efficiency.  Noted that it is                                                                                         
hard to measure.  Compared Alaska to                                                                                            
other western states. Discussed page 2.                                                                                         
Concluded that the Department of                                                                                                
Transportation and Public Facilities is                                                                                         
efficient.                                                                                                                      
625                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Department of Transportation and Public                                                                                         
Facilities has 3,400 employees, 30                                                                                              
percent are federally funded.  There are                                                                                        
178 engineers in the department.  The                                                                                           
program is being doubled.                                                                                                       
767                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed new positions. 82 new                                                                                                 
positions, 56 positions are for use on                                                                                          
the Malaspina.                                                                                                                  
                                                                                                                                
Commissioner                                                                                                                    
Perkins                                                                                                                         
10 positions for TEA-21 implementation of                                                                                       
new federal funding.                                                                                                            
                                                                                                                                
Commissioner                                                                                                                    
Perkins                                                                                                                         
8 new positions in Anchorage                                                                                                    
International airport. Paid for through                                                                                         
landing fees.                                                                                                                   
856                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed positions in the Northern                                                                                             
region.                                                                                                                         
917                                                                                                                             
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed winter maintenance. Established                                                                                       
equipment pools.                                                                                                                
                                                                                                                                
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed page 5, capital budget.                                                                                               
1000                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
Discussed page 6. 88 percent of                                                                                                 
department personnel are work on the                                                                                            
Alaska Marine Highway System or in                                                                                              
maintenance and operations. These are the                                                                                       
folks that are working.                                                                                                         
1071                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked if Kennicott is Y2K compliant.                                                                                            
1197                                                                                                                            
ROBERT DOLL,                                                                                                                    
GENERAL MANAGER,                                                                                                                
FERRY OPERATIONS,                                                                                                               
DEPARTMENT OF                                                                                                                   
TRANSPORTATION AND                                                                                                              
PUBLIC FACILITIES                                                                                                               
Many of the suppliers for components of                                                                                         
the Kennicott were European. No obvious                                                                                         
Y2K problems.  It is technologically                                                                                            
sophisticated.                                                                                                                  
1223                                                                                                                            
Representative G.                                                                                                               
Davis                                                                                                                           
Referred to trip of Kennicott to Seward,                                                                                        
to bring legislators to Juneau.                                                                                                 
1304                                                                                                                            
Mr. Doll                                                                                                                        
Pointed out that alterations in schedule                                                                                        
occur for a variety of reasons.                                                                                                 
Consideration is given to the total                                                                                             
public interest. The advantage out                                                                                              
weighed the disadvantage to others.                                                                                             
1498                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Referred to use of federal funds. Pointed                                                                                       
out federal fund will run out and the                                                                                           
state will be left paying for road                                                                                              
maintenance. Asked plans for the Dalton                                                                                         
highway.                                                                                                                        
1580                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
The Dalton highway will be widen and                                                                                            
paved. Stressed that paving the highway                                                                                         
would save the base of the road in the                                                                                          
future. The base for the Dalton highway                                                                                         
will be replaced and capped.  The state                                                                                         
saves 40 percent on the maintenance of                                                                                          
paved roads.  Pointed out that graters                                                                                          
are one of the most expensive pieces of                                                                                         
equipment.                                                                                                                      
1710                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
Observed that the Denali road has been                                                                                          
scheduled for work via contract. Public                                                                                         
hearings will be held. There is no                                                                                              
schedule for its paving. The road opening                                                                                       
may be delayed.                                                                                                                 
1760                                                                                                                            
Representative                                                                                                                  
Bunde                                                                                                                           
Referred to gas tax.                                                                                                            
1801                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
Expressed support for the gas tax.  The                                                                                         
gas tax will be spent to match federal                                                                                          
funding. It hasn't been raised since                                                                                            
1961.  Alaska would still be the 4th                                                                                            
lowest in nation with a raise in its gas                                                                                        
tax. Currently, Alaska has the lowest gas                                                                                       
tax. It would be a statewide tax at the                                                                                         
pump.                                                                                                                           
1871                                                                                                                            
Co-Chair Mulder                                                                                                                 
Asked total amount needed for the match                                                                                         
and the total amount that the tax will                                                                                          
provide.                                                                                                                        
1901                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
Will be approximately even.                                                                                                     
1914                                                                                                                            
Co-Chair Mulder                                                                                                                 
Tax will result in increased service.                                                                                           
1932                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
Emphasized that the tax will be                                                                                                 
statutorily dedicated to highways.                                                                                              
1977                                                                                                                            
Co-Chair Mulder                                                                                                                 
Questioned status of the federal language                                                                                       
which allows Alaska to use federal funds                                                                                        
on rural roads.                                                                                                                 
2099                                                                                                                            
Commissioner                                                                                                                    
Perkins                                                                                                                         
The language was not contained in the                                                                                           
legislation that was passed by Congress.                                                                                        
Work by Alaska's congressional delegation                                                                                       
succeeded in clarifying that federal                                                                                            
funding can be spent on any public road                                                                                         
in Alaska.                                                                                                                      
2103                                                                                                                            
Representative                                                                                                                  
Moses                                                                                                                           
Pointed out that the highway tax will                                                                                           
capture funding from nonresidents that                                                                                          
travel in Alaska.                                                                                                               
2132                                                                                                                            
Co-Chair Mulder                                                                                                                 
ADJOURNED                                                                                                                       
                                                                                                                                
Senator Mulder adjourned the meeting at                                                                                         
3:58 p.m.                                                                                                                       
                                                                                                                                
                                                                                                                                
HOUSE FINANCE COMMITTEE                                                                                                         
LOG NOTES                                                                                                                       
January 29, 1999                                                                                                                
H,F.C. 3 1/29/99                                                                                                                

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