Legislature(1999 - 2000)
03/07/2000 01:50 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
March 7, 2000
1:50 P.M.
TAPE HFC 00 - 62, Side 1
TAPE HFC 00 - 62, Side 2
TAPE HFC 00 - 63, Side 1
TAPE HFC 00 - 63, Side 2
TAPE HFC 00 - 64, Side 1
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 1:50 p.m.
PRESENT
Co-Chair Mulder
Co-Chair Therriault Representative Foster
Vice Chair Bunde Representative Grussendorf
Representative Austerman Representative Moses
Representative J. Davies Representative Phillips
Representative G. Davis Representative Williams
ALSO PRESENT
David Teal, Director, Legislative Finance Division; Kurt
Parkan, Deputy Commissioner, Department of Transportation
and Public Facilities; Denny DeWitt, Staff, Representative
Mulder; Jeff Bush, Deputy Commissioner, Department of
Community and Economic Development; Tom Lawson, Director,
Administrative Services, Department of Community and
Economic Development.
SUMMARY
HB 312 An Act making and amending appropriations for the
operating and loan program expenses of state
government, for certain programs, and to
capitalize funds; making appropriations under art.
IX, sec. 17©, Constitution of the State of Alaska,
from the constitutional budget reserve fund; and
providing for an effective date.
Amendments were heard for the following
departments:
Department of Transportation and Public Fac.
Department of Environmental Conservation
Department of Natural Resources
Department of Administration
Community and Economic Development
HB 312 was HELD in Committee for further
consideration. Amendments for the following
departments were addressed:
Department of Transportation and Public Facilities
HB 313 An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing
for an effective date.
HB 313 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 312
"An Act making and amending appropriations for the
operating and loan program expenses of state
government, for certain programs, and to capitalize
funds; making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Representative Austerman MOVED to ADOPT DOT-1C:
Delete:
Department of Corrections
Administration and Operations
Inmate programs $600.000 GENERAL FUND
Add:
Department of Corrections
Administration and Operations
Inmate programs $600.000 PFDF
Add:
Department of Transportation and Public Facilities
BRU: Statewide Highways & Aviation
Component: Maintenance Needs $600.000 GENERAL FUND
The intent of the legislature is that the funds be used
to open and maintain the Kalsin Bay Maintenance
Station, maintain the Chitina Maintenance Station, the
Circle Airport, Circle Hot Springs Airport, Wiseman
Airport, the Ruby Poorman Road, and other roads and
maintenance stations as this funding permits.
Co-Chair Mulder explained that the amendment replaces
general funds with Permanent Fund Felon Funds. These are
reallocated back to the Department of Transportation and
Public Facilities.
Representative J. Davies questioned if support services
would be affected. Co-Chair Mulder thought that support
services were addressed. Representative J. Davies expressed
concern that there has not been a general discussion of all
of the maintenance stations to set priorities. There are
other regionally important roads that are not receiving
sufficient support. He felt that the department should be
free to prioritize the statewide needs.
Co-Chair Mulder acknowledged his remarks and noted that the
public wants reductions without jeopardizing maintenance.
Discussion ensued regarding the importance of various roads
in the state.
Representative Phillips spoke in support of the amendment.
She observed that maintenance is easier in areas with paved
roads. Representative G. Davis questioned the ability of
communities to provide private contractors. Co-Chair Mulder
emphasized that the amendment is as flexible as possible. He
explained that there is a new BRU.
Representative Austerman acknowledged that maintenance could
be contracted on many state roads.
There being NO OBJECTION, Amendment DOT-1C was adopted.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION clarified
that a new BRU is being created.
Representative Austerman MOVED to ADOPT Amendment DOT-1D:
Highways and Aviation
Central Region Highways and Aviation $350,000
SDPR
Representative Williams OBJECTED.
Representative Austerman observed that the amendment would
allow the collection of tolls on the Whittier Road. The
collected fees would be used for operations.
KURT PARKAN, DEPUTY COMMISSIONER, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES explained that the
department intends to begin collection on April 1, 2001. The
fees would be sufficient to maintain the staging areas and
the area leading up to the tunnel in the upcoming year. He
provided details regarding the maintenance costs.
Maintenance of the staging area would be similar to a small
rural airport. There are 10 miles that will require a higher
level of maintenance.
In response to a question by Co-Chair Mulder, Mr. Parkan
observed that a private contractor maintains the road out to
the GSI site. No other maintenance is currently occurring.
Once the tunnel is open there will be vehicle traffic.
Representative G. Davis noted that there are 10 existing
miles and 2 new miles of road and questioned who has
maintained these to date. Mr. Parkan explained that the 10
miles on the Girdwood road is not being maintained during
the winter. The department would hire a position and a half
to maintain the area. There are two people working on the
Bear Valley side. The department anticipates that it will
take intense effort to keep the area open. The contractor
who built the tunnel will maintain the tunnel for two years.
There is no one responsible to maintain the staging area.
In response to a question by Representative J. Davies, Mr.
Parkan estimated the maintenance cost at $450 thousand
dollars. Toll collections are estimated at $350 thousand
dollars, which would leave a general fund need of $100
thousand dollars. A portion of the project on the Whittier
side is ineligible for the use of tolls for maintenance.
Co-Chair Mulder explained that the estimated general fund
need is $500 thousand dollars and the amendment is for $600
thousand dollars. The intent is to include the general fund
portion in the maintenance budget.
Representative J. Davies asked if tolls are statutory
designated program receipts. Co-Chair Mulder responded that
"we are pushing the envelope on this one, at this point in
time."
Representative J. Davies asked to be a co-author as his
Amendment DOT-6 was substantially similar. There being NO
OBJECTION, it was so ordered.
In response to a question by Representative Austerman, Mr.
Parkan observed that the cost would be $3 million dollars
for the total project: tunnel, staging area and roads
leading up to the staging area.
Total income projection for the first two years from tolls
is $2.3 million dollars a year based on $15 dollars per
round trip per vehicle. Buses would pay $105 dollars for a
round trip. Funding for tunnel operations will come from
federal dollars and tolls. Tolls and general funds would pay
for the road and staging areas.
Representative Austerman observed that the estimated date
for operation of the toll is April 1, 2001. Mr. Parkan
explained that the department felt that the users needed
sufficient time to notify users.
Co-Chair Mulder questioned if the toll could be collected
earlier. Mr. Parkan clarified that the toll would have to be
implemented through regulation. He added that regulations
are being formulated. It takes at least three months to
formulate the regulations. Revenues collected in FY01 should
be sufficient to maintain the road. Additional tolls would
go toward the full cost once the contract with the
construction contractor is over. Tunnel maintenance costs
were included in the construction contract.
Representative Williams noted that the city of Whittier does
not have the infrastructure in place to support the tunnel.
He compared the cost of rail travel to the cost of the
tunnel.
Mr. Parkans pointed out that there was discussion with the
tourist industry.
Co-Chair Mulder questioned if the toll would be comparable
to the cost of rail. Mr. Parkan responded that it would be
cheaper to drive.
Co-Chair Mulder stressed that statutory designated program
receipts could help offset other maintenance cost. Mr.
Parkan stressed that tolls from the Whittier tunnel could
only be used for the tunnel. He did not believe that tolls
could be diverted as a federal match.
Representative Williams maintained that according to the
toll agreement toll revenues could be used for federal
matching funds. Mr. Parkan observed that there would not be
excess funds to cover the cost. Maintenance costs for the
first two years are part of the construction costs. The
total cost is $3 million dollars. The estimated toll
collection is $2 million dollars. He did not anticipate
excess tolls. Representative Williams questioned why the
toll could not be collected earlier, so that excess could be
collected for maintenance use.
Co-Chair Mulder asked Mr. Parkan to find out if an immediate
toll collection could be used for other purposes.
Vice Chair Bunde questioned who would benefit from
supplementing the toll.
Mr. Parkan clarified that the department will assume
complete responsibility for the tunnel. The railroad does
not follow the tunnel.
Vice Chair Bunde observed that non-Alaskan companies would
benefit by the state supplement to the toll.
There being NO OBJECTION, Amendment DOT-1D was adopted.
Representative Austerman WITHDREW Amendment DOT-1.
Representative J. Davies MOVED to ADOPT Amendment DOT-4:
Delete:
Administration and Support
Central Region Support Services $726,100 GF
Add:
Administration and Support
Northern Region Support Services $778,100 GF
Representative Williams OBJECTED.
Representative J. Davies spoke in support of the amendment.
He acknowledged additional funds approved by the Committee,
but expressed concern that funds could not be used for
administration and support.
Co-Chair Mulder noted that Amendment DOT-1C would cover
administration and support.
Ms. Slagle responded that the Department of Transportation
and Public Facilities would have flexibility to use the
funds on administrative support if there were funds
remaining.
Representative J. Davies WITHDREW Amendment DOT-4.
Representative Grussendorf WITHDREW Amendment DOT-5.
Representative J. Davies WITHDREW Amendment DOT-6.
(TAPE CHANGE, HFC 00 - 62, SIDE 2)
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Representative J. Davies MOVED to ADOPT DEC-1:
Delete
Food Safety and Sanitation $3,142,200 total
Add
Food Safety and Sanitation $3,501,000 total
Environmental Health Officer II
Environmental Health Technician II Anchorage
Environmental Health Technician II Juneau
Environmental Health Officer III Bethel
Environmental Health Officer III Dutch Harbor
Travel/Contractual/Equipment and Supplies
Adds $358.8 GENERAL FUND
Representative Williams OBJECTED.
Representative J. Davies observed that the amendment would
add $358 thousand dollars in general funds. The addition
would allow the Food Safety and Sanitation program to
conduct inspections of food and daycare establishments once
a year. Inspections are currently conducted less than once a
year. Fees have gone up while inspection frequency has gone
down.
Representative J. Davies referred to HB 304. This
legislation would create a clean water administrative fund
from revenue bonds to provide the match for clean water
projects. Approximately $600,00 thousand dollars in general
funds would be freed for other use.
Representative Williams spoke against the amendment. He
acknowledged that the state is not inspecting as frequently
as it should. He maintained that the program is broken. He
observed that the department worked on the problem, but did
not report back to the subcommittee. He maintained that it
is a management, not a money, problem. He asserted that time
is being spent on writing reports not on conducting
inspections.
Co-Chair Mulder observed that a shift is occurring. He
maintained that time is needed to allow the program to
settle. He stated that he is reluctant to add more people to
the program at this time.
Representative J. Davies questioned the new direction. He
observed that general funds were replaced with program
receipts. The mission or direction has not changed. The
funding was shifted to restaurant operators.
Co-Chair Mulder argued that people are paying for services
that they did not previously pay for. He maintained that the
public needs time to be accustomed to paying a fee.
Representative J. Davies maintained that closing the fiscal
gap by reducing services and requiring the people to pay
more is the wrong direction.
Representative Williams reiterated that the program is
broken and that nothing has been done to improve it. He did
not think that additional inspectors would help.
Representative J. Davies recalled discussions with the
department regarding inspections. He noted that the
department requested an increment for more inspectors. The
net result was that $300 thousand dollars more a year would
be needed to maintain yearly inspections. The subcommittee
rejected the request. Discussions occurred during FY00
regarding transference of the program to municipalities.
Municipalities rejected the proposal and the subcommittee
concluded that the program should remain with the state. The
House Finance Committee did not accept program receipts and
the program received further cuts in the other body. He
maintained that the program is not broken: it is inadequate.
Representative Williams disagreed with Representative J.
Davies' comments.
Representative J. Davies noted that the Subcommittee adopted
a letter of intent:
It is the intent of the legislature that a portion of
the general funds savings which result form the passage
of HB 304 be appropriated to the Department of
Environmental Conservation, Division of Environmental
Health, Food Safety and Sanitation Component to fund
increased frequency of inspections at regulated
facilities throughout the state.
Representative J. Davies MOVED to AMEND Amendment DEC-1 to
conceptually state that appropriation is dependent on
passage of HB 304 or the passage of the senate companion.
There being NO OBJECTION, it was so ordered.
Representative Moses stressed that an inspector was removed
from Dutch Harbor, the biggest fishing port in the nation.
He maintained that Dutch Harbor product became tainted in
the minds of the Japanese when the inspector was removed.
A roll call vote was taken on the motion.
IN FAVOR: Austerman, Davies, Grussendorf, Moses
OPPOSED: Bunde, Davis, Foster, Williams, Therriault, Mulder
Representative Phillips was absent from the vote.
The MOTION FAILED (4-6).
DEPARTMENT OF NATURAL RESOURCES
Representative J. Davies MOVED to ADOPT Amendment DNR-1
Add:
Parks and Recreation Management $230 general fund
Parks Management $50 GFPR
Vice Chair Bunde OBJECTED.
Representative J. Davies maintained that reductions were
driven by the majority allocation. The reduction in Parks
and Recreation Management will result in the closure of 15
percent of the state parks. He observed that 80 percent of
park use is by Alaskans.
Vice Chair Bunde disagreed that the reduction would prevent
public access to recreational lands. He reiterated that
every department must take reductions. Representative J.
Davies responded that people want this type of management.
People want to be able to get into these areas to recreate.
He disagreed with the notion that the state cannot afford
the service.
Representative Moses commented that parks are an essential
part of our economy. He suggested that tourists notice how
our park stations look.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses, Davis
OPPOSED: Austerman, Bunde, Foster, Williams, Therriault,
Mulder
Representative Phillips was not present for the vote.
The MOTION FAILED (4-6).
DEPARTMENT OF ADMINISTRATION
Co-Chair Mulder noted that Amendment DOA-15, which passed on
3/6/00, should have been in the Group Health component.
Representative J. Davies MOVED to Rescind the adoption of
DOA-15. There being NO OBJECTION, it was so ordered.
Representative J. Davies MOVED to AMEND Amendment DOA-15 to
add the component Group Health, funded by Benefit Systems
receipts. There being NO OBJECTION, it was so ordered.
There being NO OBJECTION, amended Amendment DOA-15 was
adopted as amended.
Co-Chair Mulder MOVED to ADOPT Amendment DOA-16:
Page 2, following line 31
Insert: This appropriation to the Information Services
Fund capitalizes a fund and does not lapse.
DENNY DEWITT, STAFF, REPRESENTATIVE MULDER explained that
the Information Services Fund appropriation has been in the
language section. The fund was moved to the number section,
but needs to be retained without a one-year lapse. The
amendment conforms the appropriation to its current use.
There being NO OBJECTION, it was so ordered.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative Austerman MOVED to ADOPT Amendment CED-1.
Delete:
Department of Community and Economic Development
Community Assistance and Economic Development
Community and Business Development
Delete $219.9 in general fund program receipts
Add:
Department of Community and Economic Development
Community Assistance and Economic Development
Community and Business Development (Tourism Development
program)
Add $50.0 in general funds
Add $20.0 in general fund program receipt authority
(from MIA certificate program)
This amendment directs the Department of Community and
Economic Development to recommit to the Made in Alaska
contract and program receipt authority. The department chose
to allocate recommended reductions to the tourism program
within this component to this contractual line item. The
program receipt authority was basically an empty fund source
due to the transfer of functions - which formerly garnered
contributions - to the QTA. There was no discussion at the
subcommittee level of the MIA program. This fund source
change recommendation would leave the following budget from
all fund sources:
Add $149.9 GF
Representative Austerman explained that the amendment would
clarify funding for the Made in Alaska program.
Co-Chair Therriault explained that the subcommittee relied
on an empty appropriation.
Tourism Business Development MRAD
Personal Services $ 415.3 Personal Services $371.8
Personal Svcs. $3,410.1
Contractual 42.9 Travel 42.3 Travel
284.0
Commodities 12.0 Contractual 105.6
Contractual 594.1
Grants 60.0 Commodities 14.0 Commodities 50.6
QTA (new component) 4,877.2
Equipment 7.5
Total $5,407.4 Total $533.7 Grants $6,520.9
Add:
Department of Community and Economic Development
Community Assistance and Economic Development
Community and Business Development
(TAPE CHANGE, HFC 00 - 63, SIDE 1)
Co-Chair Therriault continued to explain Amendment CED-1. He
noted that the Made in Alaska program brings in $20 thousand
dollars in program receipts. The amendment is a net zero.
JEFF BUSH, DEPUTY COMMISSIONER, DEPARTMENT OF COMMUNITY AND
ECONOMIC DEVELOPMENT explained that reductions in program
receipts correlate to the transfer of functions to the new
marketing contract.
There being NO OBJECTION, Amendment CED-1 was adopted.
Co-Chair Therriault MOVED to ADOPT Replacement Amendment
CED-1A:
Delete
Department of Community and Economic Development
Executive Administration and Development
Administrative Services 45.7 General Funds
Department of Community and Economic Development
Alaska Seafood Marketing Institute (ASMI) $104.3 GFPR
Add:
Community and Economic Development
Community Assistance And Economic Development
Community And Business Development $150.0 GF
Co-Chair Therriault explained that the general funds were
taken from two positions that did not have a general fund
component. The mineral specialists were the only area the
department could take the general fund reduction, which was
not the Subcommittee's intent. The amendment would use
unutilized program receipt authority from the Alaska Seafood
Marketing Institute and general funds from Administrative
Services to reinstate the positions. He emphasized that ASMI
would not utilize the receipt authority.
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMUNITY AND ECONOMIC DEVELOPMENT discussed the impact of
Amendment Replacement CED-1A, which would be an unallocated
reduction. He agreed that there is $104.3 thousand dollars
in over authorization for ASMI. Total general funds for the
department are $2.3 million dollars.
There being NO OBJECTION, Replacement Amendment CED-1A was
adopted.
Co-Chair Therriault explained Amendment CED-1B:
Delete
Department of Community and Economic Development
Executive Administration and Development
Administrative Services 50. I/A
Department of Community and Economic Development
Community Assistance & Economic Development
QTA Contract 50. I/A
Co-Chair Therriault explained that the Subcommittee failed
to track money from the Alaska Marine Highway System Fund
for placement of the ferry schedule in the state tourism
planner.
Co-Chair Therriault MOVED to ADOPT Amendment CED-1B. There
being NO OBJECTION, it was so ordered.
Representative J. Davies MOVED to ADOPT Amendment CED-2:
Department of Community & Economic Development
Executive Administration & Development
Commissioner's Office $111.7 GF
Representative Austerman OBJECTED.
Representative J. Davies explained that the amendment would
restore the deputy commissioner position.
Mr. Bush stated that the Anchorage deputy commissioner
position would be deleted without the amendment. The
department supports the amendment. He emphasized the
importance of the deputy commissioner position to address
rural and Native Alaskan issues.
Representative J. Davies maintained that the position was
authorized by HB 40 and felt that its elimination would go
against the agreements made in passage of HB 40.
Co-Chair Therriault recalled that the specialist position
created in HB 40 was in the Governor's Office.
Representative Grussendorf stressed concern by rural areas
in regards to the merger of the Department of Community and
Regional Affairs and the Department of Commerce and Economic
Development.
Discussion ensured regarding the position of Rural Advocate
in the Office of the Governor. Representative J. Davies
recalled that a commitment was made to retain a deputy
commissioner position to continue the focus on rural issues.
In response to a question by Co-Chair Therriault, Mr. Bush
observed that there are two deputy commissioners. The other
deputy commissioner oversees regulatory agencies, commerce
agencies, legislative and budgetary issues and sits on 6
boards and commissioners.
After a brief at ease, Representative J. Davies MOVED to
Table Amendment CED-2. There being NO OBJECTION, it was so
ordered.
Representative J. Davies MOVED to ADOPT Amendment CED-3:
Add:
Department of Community & Economic Development
Community Assistance & Economic Development
QTA Contract $441.0 GF
Delete:
Department of Community & Economic Development
Tourism
Tourism Development $441.0 GF
Representative J. Davies spoke in support of Amendment CED-
3. The amendment would restore funding for the Tourism
Planning and Development program at the current level. He
observed that the Division of Tourism is in limbo. He
pointed out that there are services that need to be done on
a statewide level with a state focus, which would not fit
within the transfer to a private contractor. He questioned
the effect of not funding the amendment on the Division of
Tourism.
Mr. Bush noted that the Division's activities would be
reduced by $441 thousand dollars. Planning and development
functions would be greatly reduced or eliminated. A planner
position that focuses on transportation and land use, a
development specialist that focuses on rural tourism
development and an administrative clerk, which responds to
requests would be eliminated. There would be two positions
remaining. One would oversee the marketing contract and work
with the qualified trade association. The other position
would be responsible for the remaining development and
planning functions.
Mr. Bush explained that the deletion was partially due to
the fiscal note associated with HB 40. The fiscal note
assumed an increment in the tourism budget of over $400
thousand dollars. The increment was not added into the
department's budget. The amendment would restore the status
quo. The Subcommittee's recommendation would take money from
the state's planning and development functions and use it to
increase the tourism-marketing contract.
Representative J. Davies summarized that the amendment would
retain the status quo. Mr. Bush agreed that it would be
close to the status quo. He noted that the Qualified Trade
Association does not have professional staff to do planning.
Co-Chair Therriault observed that there are other positions
that can help run these activities.
Mr. Bush acknowledged that Amendment CED-1 would add back
some of the positions. He emphasized that the budget would
still be $441 thousand dollars short.
A roll call vote was taken on the motion.
IN FAVOR: A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses, Phillips, Williams
OPPOSED: Davis, Foster, Austerman, Therriault, Mulder
Vice Chair Bunde was absent from the vote.
Representative J. Davies WITHDREW Amendment CED-4.
Representative J. Davies MOVED to ADOPT Amendment CED-5:
Delete:
Department of Community & Economic Development
Community Assistance & Economic Development
QTA Contract $916.7GF
Add:
Department of Community & Economic Development
Community Assistance & Economic Development
International Trade & Market Development $916.7GF
Representative Austerman OBJECTED.
Representative J. Davies explained that the amendment would
restore money that was taken out of the International Trade
Division. This amendment would maintain an Alaskan presence
in Japan and Korea and retain nine positions that were
eliminated. He stressed the importance of these positions.
He felt that business development would be lost without the
amendment.
Mr. Bush stated that the reduction would eliminate the state
of Alaska's ability to do any trade in these markets. Nine
of the 12 people that do international trade would be
eliminated, leaving only 3 positions. He emphasized the
importance of having state positions to support these
markets. The offices in Japan and Korea would be closed. He
pointed out that over 70 percent of the state's total export
or over $2 billion dollars annually go to these markets. A
trade coordinator would remain. It would be difficult to
reestablish confidence in the foreign markets if these
positions are eliminated.
Representative Grussendorf observed that there is no
distinction between business and government in these
markets. Private businessmen are not received without state
support. These countries do not have a private sector.
Vice Chair Bunde stressed that the program is a public
subsidy of private business. He pointed out that reductions
are being made in important health and social programs.
Co-Chair Mulder acknowledged that in many Fareast countries
the private and public sectors are intertwined, but pointed
out that Korea closed its Anchorage office. He emphasized
that discussions with business groups doing business in the
markets did not indicate that they would be adversely
affected.
Representative Grussendorf stressed that Alaska exports to
the markets. He reiterated the importance of state
participation. Co-Chair Mulder stated that the groups that
are the most impacted by international trade should be the
rallying point for this component. He noted that these have
not indicated that the function is important. Representative
Grussendorf commented that perhaps they were not aware of
the reduction.
Representative Moses reminded the Committee that a major
specialty processing plant is going into Anchorage and it is
going to need help to be successful. He voiced frustration
with the proposed cuts. He expressed concern that cuts are
"putting a strangle hold on our economy." He emphasized that
reductions could be taken from the legislative budget.
Representative Phillips tabulated that the cost to keep the
Korean and Japanese office open would be $365 thousand
dollars. She suggested that the question could be divided.
She asked what other trade offices would be kept open.
Mr. Bush responded that Taiwan was kept open and a small
contract with Sakhalin Island was retained. Representative
Phillips noted that 75% of the trade staff would be cut.
Representative J. Davies indicated that he had received a
number of faxes from companies that would be affected by the
reduction.
(TAPE CHANGE HFC 00 - 63, SIDE 2).
Representative J. Davies pointed out that the state collects
a business tax and emphasized that it is important for
government to provide infrastructure.
Representative Williams maintained that large companies
doing business in Japan do not take advantage of the service
that the office provides. He estimated that large companies
would take their own experts with them to navigate foreign
markets. He spoke against the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Davis, Grussendorf, Moses, Phillips, Davies
OPPOSED: Foster, Williams, Austerman, Bunde, Mulder,
Therriault
The MOTION FAILED (5-6).
Representative Grussendorf MOVED to ADOPT Amendment CED-6.
Vice Chair Bunde OBJECTED.
Add:
Development
Executive Administration & Development
Administrative Services $125.0 GF
Representative Grussendorf stated that the amendment would
restore funding for the Alaska Legal Services. He stressed
the important of the component to Alaska's poor. He noted
that 40 percent of the clientele are rural and Native.
Eligible individuals cannot make more than $12 thousand
dollars to be for the service. Lawyers work for only $70
dollars an hour. There are over 900 outstanding cases.
Representative J. Davies added that the Alaska Legal
Services operates in eight areas of the state. They operate
very efficiently and provide cost effective service. It
provides help to those who cannot get help through the
justice system. These people are dedicated and talented.
They won 89 of the 112 cases taken to the Supreme Court.
Representative Grussendorf added that it assists the court
system by aiding those that would not otherwise know their
rights.
Co-Chair Therriault clarified that a portion of their
funding comes outside of the state's grant. Representative
Grussendorf acknowledged that there are federal funds. He
observed that the reduction would cut three attorneys. A
person must be at the poverty level to receive services.
Representative Phillips questioned why it was under the
Department of Community and Economic Development. Mr. Bush
explained that there are occasions when the agency ends up
in disputes against the Department of Law.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses, Bunde
OPPOSED: Austerman, Davis, Foster, Phillips, Williams,
Therriault, Mulder
The MOTION FAILED (4-7).
Representative J. Davies MOVED to ADOPT Amendment CED-7:
Add:
Department of Community & Economic Development
Occupational Licensing
Occupational Licensing
$896.0 GF/PR
Representative J. Davies spoke in support of the amendment.
This will give the Occupational Licensing Division
additional expenditure authority for the following: 1)
$200,000 for legal services, 2) $50,000 for board travel, 3)
$140,000 for the "Colleagues in Caring Project", 4) $106,000
for Architects, Engineers, and Land Surveyors Licensing.
Last year, the finance committee put a cap on the
expenditure level in the front section of the budget, which
resulted in a $400,000 cut. The amendment would restore that
amount. He observed that architects, engineers, and land
surveyors are willing to pay for the service.
Co-Chair Therriault observed that the department's FY00
request was $5,458,000 million dollars. The subcommittee
authorized $5,519,000 million dollars. He noted that the
department was fully funded. The amendment would give excess
authorization and would fund increments. He disagreed with
statements that there was a cut in FY00.
Co-Chair Mulder observed that the Division of Occupational
Licenses has received authority to set and increase fees.
The legislature is held accountable for raises in fees. In
FY00, a limit was placed on fees. He maintained that a cap
is appropriate for legislative oversight.
Representative J. Davies acknowledged that the
Administration has set limits on travel, which restricts
board activities. He questioned why groups that want to have
their fees increased should be denied.
In response to a question by Co-Chair Mulder, Mr. Bush
explained that the Colleagues in Caring Project is a
national program. The Board requested funding.
Co-Chair Mulder questioned why all nurses would be required
to participate. He asked why board members do not pay for
their own travel.
Mr. Bush responded that board members serve as volunteers
and give up their professional time. The boards are
requesting the authorization.
Co-Chair Mulder questioned if the members or the boards are
requesting the activities. Mr. Bush felt that the membership
is in sync with the boards on a number of the issues.
Representative J. Davies argued in support of the amendment.
He observed that he has received requests from participants
in support of the amendment.
After a brief recess Representative J. Davies observed that
there had been discussions about addressing the problems in
other legislation.
Representative J. Davies WITHDREW Amendment CED-7.
Representative J. Davies MOVED to ADOPT Amendment CED-8:
Page 4, add new BRU after line 26:
Renters' Equivalency Rebate $300,000 GF
Representative J. Davies spoke in support of the amendment.
Seniors receive an exemption on their property tax. The
Renters' Equivalency Rebate program extends a similar
exemption to seniors and disabled veterans that rent their
homes. In 1998, there were 976 rebates sent to senior
citizens and 105 to disabled veterans. The average payment
was $277 dollars. The state has not reimbursed
municipalities for the rebate in recent years.
Co-Chair Mulder OBJECTED. He noted that the program was not
funded in FY00. He conceded that there is merit to the
program but stressed that it would be a mistake to add the
program back at this point.
Representative Grussendorf spoke in support. He stressed
that the renter pays the cost of the property tax in their
rent.
Vice Chair Bunde noted that Alaska has the highest
percentage growth of citizens over 85 years of age. He
questioned how many would be on the program. Mr. Bush stated
that there were 11,011 recipients in 1999. The rebate is pro
rated based on the number of applicants.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses, Williams
OPPOSED: Austerman, Bunde, Davis, Foster, Phillips,
Mulder
Co-Chair Therriault was absent from the vote.
The MOTION FAILED (4-6).
Representative Moses MOVED to ADOPT Amendment CED-9:
Add:
Power Cost Equalization $9,500,000 AIDEA Dividend
Co-Chair Mulder OBJECTED.
Representative Moses spoke in support of the amendment. He
stressed that the savings of inexpensive power should be
shared throughout the state.
Co-Chair Mulder pointed out that the AIDEA dividend is
obligated for debt payment. He expressed support for funding
of PCE, but emphasized that there needs to be a long-term
solution. He observed that there was an attempt to use
National Petroleum Reserve-Account (NPR-A) funds for PCE in
FY00. He felt that PCE should have a greater priority for
NPR-A funds than a bowling alley or a teen center. He
emphasized plans for a long-term solution, which would work
with the housing authorities to piece together an endowment.
He emphasized that sharing of the resource is appropriate.
Long-term economic development in rural areas depends on
transportation and affordable energy.
Representative Grussendorf recalled that the decision was
made to provide power cost equalization in perpetuity to
areas that could not fit under the statewide energy plan.
(TAPE CHANGE, HFC 00 - 64, SIDE 1)
Representative Grussendorf observed that those that were not
policy makers at the time have lost track of the original
commitment. He noted that the commitment was made that hydro
projects would pay 5% and the money would be put in a
revolving fund. Commitments were made to rural areas that
could not access hydropower or natural gas. He stressed the
need for a long-range solution.
Representative Austerman spoke in support of a long-term
solution and stated that he would not support use of AIDEA
funds until a long-term solution is resolved.
Representative Moses maintained that it is time to "walk the
walk".
Co-Chair Mulder observed that unless the issue is forced it
never happens. He maintained that the time has come and that
there is an available pool of money to set an endowment.
Representative Williams stated that he would vote against
the amendment because a plan is being developed (to provide
an endowment).
Co-Chair Mulder noted that there is $15.7 million dollars in
other funds in the language section.
Representative Moses observed that the PCE appropriation in
the supplemental was cut in half. Co-Chair Mulder noted that
the reduction was taken in the other body.
A roll call vote was taken on the motion.
IN FAVOR: Davies, Grussendorf, Moses, Foster
OPPOSED: Austerman, Bunde, Davis, Phillips,
Williams, Mulder
Co-Chair Therriault was absent from the vote.
The MOTION FAILED (4-6).
HB 312 and HB 313 were HELD in Committee for further
consideration.
Adjournment
The meeting adjourned at 6:15 p.m.
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