Legislature(1999 - 2000)
03/07/2000 07:30 PM House FIN
| Audio | Topic |
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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
7:30 P.M.
TAPE HFC 00 - 65, Side 1.
TAPE HFC 00 - 65, Side 2.
TAPE HFC 00 - 66, Side 1.
TAPE HFC 00 - 66, Side 2.
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 7:30 P.M.
PRESENT
Co-Chair Mulder Representative Foster
Co-Chair Therriault Representative Grussendorf
Representative Austerman Representative Moses
Representative Bunde Representative Phillips
Representative J. Davies Representative Williams
Representative G. Davis
ALSO PRESENT
Representative Tom Brice; David Teal, Director, Division of
Legislative Finance; Janet Clarke, Director, Division of
Administrative Services, Department of Health and Social
Services; Jeff Jesse, Executive Director, Alaska Mental
Health Trust Authority, Juneau; Christi Tillard, Advisory
Board, Alcohol and Drug Abuse, Dillingham; Lisa Kirsch,
Assistant Attorney, Department of Law; Denny DeWitt, Staff,
Representative Eldon Mulder; Larry LaBolle, Staff,
Representative Richard Foster.
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.
HB 312 was HEARD and HELD in Committee for further
consideration.
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.
AMENDMENTS HEARD:
Department of Commerce and Economic Development
Department of Education and Early Development
Office of the Governor
Department of Health and Social Services
Intent Language
Language
Legislature
Department of Public Safety
Department of Transportation and Public Facilities
University of Alaska
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©,
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date.
HOUSE BILL NO. 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.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative Phillips referenced C&ED-10. [Copy on File].
She noted a technical change and that the $70 thousand
dollars general funds should be taken from the International
Trade and Marketing component.
DELETE:
Department of Corrections
Administration and Operations
Inmate programs
$181,700 General Funds
ADD:
Department of Corrections
Administration and Operations
Inmate programs
$181,700 PFD Funds
ADD:
Department of Community & Economic Development
Executive Administration and Development
Commissioner's Office
$111,700 General Funds
ADD:
Department of Community & Economic Development
Community Assistance & Economic Development
International Trade & Marketing
$70,000 General Funds
Representative Phillips MOVED to ADOPT Amendment C&ED-10, as
amended. Co-Chair Mulder OBJECTED for further
clarification.
Representative Phillips explained that the amendment would
add a Deputy Commissioner for rural affairs and a general
trade specialist to the Department. Co-Chair Mulder
WITHDREW the OBJECTION.
In response to a query by Representative Bunde, Co-Chair
Mulder noted that the money would come from prisoner
Permanent Fund Dividend's through the Department of
Corrections.
There being NO further OBJECTION, the amendment was adopted.
DEPARTMENT OF PUBLIC SAFETY
Representative J. Davies MOVED to ADOPT PS-6 (replacement).
[Copy on File]. Co-Chair Mulder OBJECTED for the purpose of
discussion.
ADD:
Department of Public Safety
Fire Prevention
Fire Service Training
$80,000 SDPR
Representative J. Davies explained that the amendment would
allow for the City of Fairbanks to contract with the State
for a fire service-training officer.
Co-Chair Mulder WITHDREW his OBJECTION. There being NO
further OBJECTION, the amendment was adopted.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
Representative J. Davies WITHDREW CED-2. [Copy on File}.
There being NO OBJECTION, it was withdrawn.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Co-Chair Therriault WITHDREW HSS-1. [Copy on File].
Co-Chair Therriault MOVED to ADOPT Amendment HSS-1A. [Copy
on File]. Representative Grussendorf OBJECTED.
ADD:
Department of Health and Social Services
Community Mental Health Grants BRU
Services to the Chronically Mentally Ill component
$203.0 General Funds
ADD:
Department of Health and Social Services
Community DD Grants BRU
Community DD Grants component
$120.0 General Funds
Co-Chair Therriault explained the intent of the amendment.
He understood that the Department agreed with the switch.
Representative J. Davies asked which programs these funds
would support.
JEFF JESSEE, EXECUTIVE DIRECTOR, ALASKA MENTAL HEALTH TRUST
AUTHORITY (AMHTA), JUNEAU, explained that the problems
solved were three fold.
· $1 million of the $1.5 million dollar reduction in
alcohol grants was of concern to the trustees as the
reduction was exasterbated by a similar reduction that
will occur in the next three years to the federal block
grant funds. It will be a $2 million dollar reduction
to services that the trustees believe are effective in
addressing the number one public health problem in the
State of Alaska, alcohol and drug abuse.
· The second situation is that a $203 thousand dollar
reduction in community mental health grants and
services to the chronically mentally ill are of concern
to the trustees. At this time, they are in the midst
in developing a strategy that will support both smaller
psychiatric institutes.
· The reduction of $120 thousand dollars in community
grants for institutional prevention. Last year the
Legislature was unable to fully fund that increment, so
the trustees agreed to fund $360 thousand of that.
The Trustees planned to back out of it. The proposed
move would assist the Legislature in receiving $120
thousand dollars in general funds to keep the component
whole. To accomplish that, the Trustees had to
prioritize the items to be funded.
Mr. Jesse noted that they are trying to work with Alaska
Housing Finance Corporation (AHFC).
Co-Chair Therriault clarified that the backing out of
general funds from the Medicaid component was a general fund
match.
Representative Bunde advised that there was testimony
pending regarding Fetal Alcohol Syndrome (FAS).
CHRISTI WILLARD TILDEN, ADVISORY BOARD, ALCOHOL AND DRUG
ABUSE, DILLINGHAM, commented that there is concern that
there is $500 thousand dollars assumed to be coming from a
federal grant but it is understood that federal money can
not be used as proposed. She reiterated that those grants
are restricted and asked that it be taken into
consideration. Co-Chair Therriault interjected that the
Department identified that money to be used for FAS program.
There being NO further OBJECTION, the amendment was adopted.
Co-Chair Therriault MOVED to ADOPT Amendment HSS-1B. [Copy
on File]. Co-Chair Mulder OBJECTED for the purpose of
discussion.
Department of Health and Social Services
State Health Services BRU
Nursing component
DELETE:
$250.0 1002 Fed. Receipts
ADD:
$250.0 1108 SDPR
Co-Chair Therriault explained that the amendment would
provide a change regarding an increment for the Alaska
Federal Health Care Access Network. In the Governor's
original budget, it had been requested through federal
funds. There has since been a Governor's budget amendment
to correctly change it from Federal Receipts to Statutory
Designated Program Receipts. The amendment would indicate
that change.
Representative J. Davies questioned where the receipts would
come from.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HELATH AND SOCIAL SERVICES, replied that
originally, the grant came directly from the federal
government. They chose to contract with a non-profit entity
and came through the State not as federal funds. She
pointed out that the Department had requested the amendment.
There being NO further OBJECTION, HSS-1B was adopted.
Representative Grussendorf MOVED to ADOPT Amendment HSS-2.
[Copy on File]. Co-Chair Therriault OBJECTED.
ADD
BRU: Public Assistance
Component: General Relief Assistance
$212,600 GENERAL FUND
Representative Grussendorf explained that the amendment
would pay for burials and shelter for the poorest of poor.
He asked where else would this burden fall and pointed out
that this was a safety net for those on the welfare system.
Co-Chair Therriault pointed out that the proposal would fund
the FY99 actual level. He stated that the category had been
over-authorized for a number of years. Representative
Grussendorf responded that there exist situations not being
addressed.
Ms. Clarke advised that this is a formula program that does
fluctuate. Most of the money does go for indigent burials.
The program has been around since statehood. She stressed
that if there was not enough funding for the component, the
Department would come for supplemental funding.
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Grussendorf
OPPOSED: Phillips, Williams, Austerman, Bunde, G.
Davis, Foster, Mulder, Therriault
Representative Moses was not present for the vote.
The MOTION FAILED (2-8).
Representative J. Davies noted that HSS-1A had addressed
concerns indicated in Amendment H&SS-3 and that he would
WITHDRAW the Amendment. [Copy on File]. There being NO
OBJECTION, it was withdrawn.
Representative J. Davies MOVED to ADOPT Amendment HSS-4.
[Copy on File]. Co-Chair Therriault OBJECTED.
DELETE:
State Health Services
Infant Learning Grants
$1199.3 GF
ADD:
State Health Services
Infant Learning Grants
$1899.3.0 GF
Representative J. Davies stated that the Amendment would add
$700.0 GF to Infant learning grants to help reduce the
waitlist.
REPRESENTATIVE TOM BRICE spoke to the amendment which would
provide physical therapy to children with developmental
disabilities. He explained that the program was broken into
two parts and addresses varying degrees of disabilities.
The amendment would provide services to the children that do
not meet the federal threshold. The program has been around
since the late 1960's.
Representative Phillips asked how much money had been
approved for the program. Co-Chair Therriault noted that it
had been flat funded at $5 million dollars. Ms. Clarke
pointed out that the Governor's budget recommended $5.7
million dollars.
Representative J. Davies mentioned that if the increment is
not funded, there would be another 250 children that do not
receive services.
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Grussendorf
OPPOSED: Williams, Austerman, Bunde, G. Davis, Foster,
Phillips, Therriault, Mulder
Representative Moses was not present for the vote.
The MOTION FAILED (2-8).
Representative J. Davies MOVED to ADOPT Amendment HSS-5.
[Copy on File]. Co-Chair Therriault OBJECTED.
Page 3, line 8:
Purchased Services
Appropriate Total
$6,294,600
$5,704,200 general funds
$590,400 Other Funds
Page 3, line 15
Residential Child Care Appropriate
$4,156,300
Ms. Clarke advised that the amendment would restore $100,000
GF/MH. She noted that the Subcommittee had not included
funds for training for residential care providers. The
funding would help the providers to develop the skills in
order to better deal with children with difficult behaviors.
Co-Chair Therriault countered that there was not general
fund money to "back fill". There had been an increment to
the caseload growth and new care center beds. He stressed
that there was extra funding placed into the BRU.
Representative J. Davies emphasized that this training is
required by State regulations. Co-Chair Therriault
explained that there had been an over all increase in the
Department's budget. The Department has the authority to
move the monies into areas as they need.
Representative Phillips asked if there was an assessment fee
charged to the parents of these children. Ms. Clarke
replied that many of the children are in State custody.
There is no fee charged
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Grussendorf
OPPOSED: Austerman, Bunde, G. Davis, Foster, Phillips,
Williams, Therriault, Mulder
Representative Moses was not present for the vote.
The MOTION FAILED (2-8).
Representative Grussendorf MOVED to ADOPT Amendment HSS-6.
[Copy on File]. Co-Chair Therriault OBJECTED.
ADD:
BRU: Administrative Services
Component: COMP ASS Community grants
$25.0 GENERAL FUND
Representative Grussendorf explained the amendment would
provide "seed" money for building skills for high school
students in creating businesses.
Representative Phillips mentioned that the program sounded
similar to a current program in the schools. She noted
there already exists distributive education courses (DECA)
through the school system.
(TAPE CHANGE HFC 00 - 65, Side 2)
Representative J. Davies explained that the proposed
approach helps to bring the Department of Health and Social
Services and the Department of Education and Early
Development together to address youth problems. Kids have
benefited from bringing these resources together.
Co-Chair Therriault interjected that was one of the areas
which the Subcommittee believed there were other funding
needs with higher priority.
Representative Brice stated that the proposed amendment was
an attempt to get bureaucracy to think differently in terms
of establishing new programs for youth. He added that the
program would serve mostly Anchorage and Southeast Alaskan
students.
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Grussendorf
OPPOSED: Bunde, G. Davis, Foster, Phillips, Williams,
Austerman, Mulder, Therriault
Representative Moses was not present for the vote.
The MOTION FAILED (2-8).
Representative Grussendorf MOVED to WITHDRAW Amendment HSS-
7. [Copy on File]. He noted that the concern had been
addressed in HSS-1A. There being NO OBJECTION, it was
withdrawn.
Representative J. Davies MOVED to WITHDRAW Amendment HSS-8.
[Copy on File]. He noted that the concern had been
addressed in HSS-1A. There being NO OBJECTION, it was
withdrawn.
Representative J. Davies MOVED to ADOPT Amendment HSS-9.
[Copy on File]. Co-Chair Therriault OBJECTED.
ADD:
Dept of Health and Social Services
BRU: Juvenile Justice
Component: McLaughlin Youth Center
$1,302.0 General Fund dollars
Ms. Clarke emphasized that the McLaughlin Youth Center is
very overcrowded, and it is 149% over-capacity. Beds are
needed. The overcrowding is unsafe and that area has to be
doubled staffed.
Ms. Clarke agreed that the master plan is good. If
McLaughlin is overcrowded, then the rest of the facilities
become overcrowded. She stressed that this funding is one
of the Department's top priorities.
Co-Chair Therriault advised that there are beds that could
come on line, but that they were being delayed. Ms. Clarke
noted that the grand opening was scheduled for the Mat-Su
facility in May.
Representative Phillips asked the status of the Kenai
project. Ms. Clarke replied that there are planning funds,
with no construction dollars; the funds will be used to
determine which site is appropriate.
A roll call vote was taken on the motion.
IN FAVOR: J. Davies, Grussendorf, Austerman
OPPOSED: G. Davis, Foster, Phillips, Williams, Bunde,
Therriault, Mulder
Representative Moses was not present for the vote.
The MOTION FAILED (3-7).
Representative J. Davies MOVED to ADOPT Amendment HSS-10.
[Copy on File]. Co-Chair Therriault OBJECTED.
ADD:
Dept of Health and Social Services
BRU: Purchased Services
Component: Foster Care Special Needs
$29.8 Federal funds
$1,103.3 General funds
Representative J. Davies explained that if this component
was not funded, there will need to be supplemental funding.
Co-Chair Therriault pointed out that a 7% above and beyond
increase had been granted. Representative J. Davies advised
that the target was a 12% increase.
Co-Chair Mulder questioned if all states participated in
foster care special needs. Ms. Clarke explained it is
basically part of the foster care budget. Representative
Hanley had broken the budget into four areas. Special needs
are those one-time payments for items likes coats and
personal care supplementals that occur. The federal
government also participates through the Title 4(e) Program,
which is 20% of the budget.
A roll call vote was taken on the motion.
IN FAVOR: Grussendorf, J. Davies
OPPOSED: G. Davis, Foster, Phillips, Williams,
Austerman, Bunde, Mulder, Therriault
Representative Moses was not present for the vote.
The MOTION FAILED (2-8).
Representative J. Davies MOVED to WITHDRAW Amendment HSS-11.
[Copy on File].
Representative J. Davies MOVED to WITHDRAW Amendment HSS-12.
[Copy on File].
Representative J. Davies MOVED to ADOPT Amendment HSS-13.
[Copy on File]. Co-Chair Therriault OBJECTED.
Department of Health and Social Services
BRU: Purchased Services
Component: Foster Care Base Rate $1,144.2
($510.8 federal & $633.4 GF)
Ms. Clarke explained that this is a formula program. In
regulation, there exists a schedule of what the parents will
be paid. She noted that the Department's best projection is
that foster care will grow by 12% in FY2001. The
Subcommittee allocated a little more than half of the
requested amount.
Co-Chair Therriault agreed that supplemental funding was
possible if needed. He noted that his staff would follow up
throughout the fiscal year tracking the concern and pointed
out that there had been a 27% increase over the current year
budget. Representative J. Davies reiterated the expected
growth rate. Ms. Clarke explained that there is a
significant supplemental mode.
Representative J. Davies WITHDREW the MOTION to adopt HSS-
13.
Representative J. Davies MOVED to ADOPT Amendment HSS-14.
[Copy on File]. Co-Chair Therriault OBJECTED.
DELETE:
Department of Health and Social Services
State Health Services
Tobacco Control and Prevention
$1211.4 General Fund
ADD:
Department of Health and Social Service
State Health Services
Tobacco Control and Prevention
$2.8million General Fund
Representative J. Davies stated that the amendment would add
$1,588.6 general fund dollars to the tobacco prevention
programs. He believed that program is important to keep
young people from starting to smoke.
Vice Chair Bunde agreed that the tobacco money should be
more focused on tobacco problems throughout the State.
Representative Grussendorf noted that the money has become a
funding source for other things than prevention. He
suggested that the State would be "money ahead" to address
the prevention aspect.
Representative Phillips understood that the objective of the
tobacco tax was to place a mechanism, which would stop young
people from smoking. She asked if there were statistics
indicating the effectiveness to date of that program. Ms.
Clarke did not have that information available. She added
that there is an evaluation component available at the
Department.
Co-Chair Mulder interjected that the money from that fund
was allocated for Medicaid programs. He saw the settlement
funds as an opportunity to mitigate some costs that the
State has experienced in going to court to claim medical
related services provided to Alaskan citizens.
Co-Chair Therriault added that those funds are used as a
revenue stream to help with Medicaid concerns treating the
problems associated with smoking. He noted that he agrees
with the prevention programs, however, the amendment
proposes to double the Governor's request.
A roll call vote was taken on the motion.
IN FAVOR: Grussendorf, Moses, Austerman, Bunde, J.
Davies
OPPOSED: Foster, Phillips, G. Davis, Therriault,
Mulder
Representative Williams was not present for the vote.
The MOTION FAILED (5-5).
Representative Grussendorf MOVED to ADOPT Amendment HSS-15.
[Copy on File]. Co-Chair Therriault OBJECTED.
Department of Health and Social Services
New Appropriation
Abortion Services for Medicaid Eligible Women
$506.6 GENERAL FUNDS
Representative Grussendorf pointed out that Planned
Parenthood Incorporated has taken the State Legislature's
decision to not fund therapeutic abortions to the Supreme
Court. The Court ruled that the decision was not legal.
The State has appealed that case. Representative
Grussendorf stated that the Legislature should provide
assurance to stand by the Department of Health and Social
Services Commissioner in case of an "attempt of court"
determination is made.
LISA KIRSCH, ASSISTANT ATTORNEY GENERAL, HUMAN SERVICES
SECTION, DEPARTMENT OF LAW, noted that she has been
representing the State in the Planned Parenthood versus
Perdue Case. She explained that the State stands with a
contempt motion pending and that it has not yet been decided
in the Superior Court. The briefing is yet to be completed
before the Supreme Court. That action should be done by
early April 2000. The "motion for stay" was also renewed at
the Supreme Court level and denied.
Ms. Clarke explained what the provision had been intended to
cover. She noted that the request would provide a new
appropriation in the Department for abortion services for
Medicaid eligible women in FY01, for expenses related to the
service.
Vice Chair Bunde mentioned that the State should not let the
public think that the Commissioner would be personally
liable. Ms. Kirsch agreed that sanctions would not be
against Commissioner Perdue personally. The primary
concerns are for fines that will be levied against the State
for other sanctions, and that the Court might choose to
enforce it.
Representative Grussendorf questioned if federal funding
could be jeopardized if the State refused to undertake this.
Ms. Kirsch replied that there are very complex issues
involved in dealing with Medicaid and federally matched
funds. She indicated that in the simplified version, the
Legislature can fund nothing, however, they can not take a
stand on how specific services stay in compliance with
federal law.
A roll call vote was taken on the motion.
IN FAVOR: Grussendorf, Moses, J. Davies
OPPOSED: Phillips, Austerman, Bunde, G. Davis, Foster,
Therriault, Mulder
Representative Williams was not present for the vote.
The MOTION FAILED (3-7).
Representative J. Davies made a change to Amendment HSS-16.
[Copy on File]. He noted the change to the Medicaid
Services Component, inserting "-$5,736.1" and deleting
"5,924.6".
Representative J. Davies MOVED to ADOPT the amended
Amendment HSS-16.
DELETE:
Department of Administration
Legal and Advocacy Services BRU
Office of Public Advocacy Component
-135.8 Tobacco Settlement
Public Defender Agency Component
-225.0 Tobacco Settle.
Department of Law
Civil Division
BRU Human Services Section Component
-134.0 Tobacco Settlement
Department of Health and Social Services
Medical Assistance BRU
Medicaid Services Component
-5,736.1 Tobacco Settlement
Catastrophic & Chronic Assistance BRU
Catastrophic & Chronic Assistance Component
-1,145.0 Tobacco Settlement
Purchased Services BRU
Foster Care Special Need Component
-216.3 Tobacco Settlement
Residential Child Care Component
-497.0 Tobacco Settlement
Front Line Social Workers BRU
Front Line Social Workers Component
-631.5 Tobacco Settlement
ADD:
Department of Administration
Legal and Advocacy Services BRU
Office of Public Advocacy Component
135.8 GF
Public Defender Agency Component
225.0 GF
Department of Law
Civil Division BRU
Human Services Section Component
134.0 GF
Department of Health and Social Services Medical
Assistance BRU
Medicaid Services Component
5,924.6 GF/Match
Catastrophic & Chronic Assistance BRU
Catastrophic & Chronic Assistance Component
1,145.0 GF
Purchased Services BRU
Foster Care Special Need Component
216.3 GF
Residential Child Care Component
497.0 GF
Front Line Social Workers BRU
Front Line Social Workers Component
631.5 GF
Representative J. Davies stated that these changes reflect
the reduction due to volume adjustments in the amount of the
Tobacco Settlement fund expected to be received in FY2001.
There being NO OBJECTION, the amendment was adopted.
Co-Chair Therriault MOVED to adopt HSS-17. [Copy on File].
ADD:
Department of Health and Social Services
Public Assistance BRU
Alaska Temporary Assistance Program (ATAP) component
$630.0 Federal Funds
Co-Chair Therriault stated that the amendment would add $630
thousand dollars in Federal Receipts in the ATAP program to
allow additional funds to be spent in the Council of
Domestic Violence and Sexual Assault to the Department of
Public Safety, and in Head Start Grants to the Department of
Education and Early Development through Interagency
receipts. There are available TANF funds through the
component for these purposes.
Ms. Clarke recommended that it be placed into the work
services component.
Co-Chair Mulder MOVED to make the recommended change. There
being NO OBJECTION, the amendment was amended to indicate
the Work Services Component. There being NO OBJECTION, HSS-
17 was adopted.
(TAPE CHANGE HFC 00 - 66, Side 1)
UNIVERSITY OF ALASKA
Representative J. Davies MOVED to ADOPT UA-1. [Copy on
File]. Co-Chair Mulder OBJECTED.
DELETE:
University of Alaska
$172,143,300 General Funds
ADD:
University of Alaska
$189,244,100 General Funds
Representative J. Davies stated that the amendment would add
money as requested by the University Board of Regents. The
University has identified areas where they could be a "key
player" in preparing opportunities for new enterprises and
preparation of the participating work force. He stated that
it would be a worthwhile investment.
Co-Chair Mulder commented that the amendment was beyond the
State's means. At this point in time, the State should not
make this commitment, however, noted that the Legislature
should continue to help find ways to help the University.
Representative J. Davies WITHDREW the MOTION. There being
NO further OBJECTION, it was withdrawn.
LEGISLATURE
Representative Moses MOVED TO ADOPT LEG-1. [Copy on File].
Co-Chair Mulder OBJECTED.
DELETE:
Legislative Affairs Agency
Legislative Council
Legislators' Salaries & Allowances
$225.0 General Funds
ADD:
Department of Fish and Game
Commercial Fisheries
Fisheries Development
$225.0 General Funds
Representative Moses stated that the amendment will provide
for the renewal resource in the State. He supported
increasing commercial fisheries development and cutting the
legislative long term per diem.
Co-Chair Mulder pointed out that the Legislative budget had
been reduced this year. He encouraged a "no" vote.
Vice Chair Bunde noted that he chaired the Department of
Fish and Game budget and thought that the amendment may be
construed as an anti Mat-Su valley move.
Representative Grussendorf voiced support for the amendment.
Representative Moses acknowledged that these are the types
of cuts which the Legislature should make. He warned members
about the "choking off" the State's economy. Representative
Moses emphasized that legislators need to either start
raising revenues or get serious about where to cut.
Co-Chair Mulder pointed out that Y2K funding had been backed
out from last year. Representative Moses asked if that had
been a carry forward. Co-Chair Mulder replied not what he
had spoken to directly, however, there had been some carry
forward. Representative Moses noted that was not a "real"
cut. Co-Chair Therriault clarified that it had been
adjusted from the base up and the Y2K money was backed out.
Co-Chair Mulder interjected that only $.5 million dollars
less had been authorized from last year. This year's
numbers are below what was authorized last year.
Representative Moses asked what was actually cut. Co-Chair
Mulder replied that it had been an unallocated reduction.
A roll call vote was taken on the motion.
IN FAVOR: Moses, Grussendorf
OPPOSED: Phillips, Williams, Austerman, Bunde, J.
Davies, G. Davis, Foster, Therriault, Mulder
The MOTION FAILED (2-9).
OFFICE OF THE GOVERNOR
Co-Chair Mulder advised that GOV-1 would correct a
typographical error. The balance of $1,629,000 was
appropriated in Section 28. [Copy on File].
DELETE:
Office of the Governor
Elections
$3,668,000 General Funds
ADD:
Office of the Governor
Elections
$2,039,600 General Funds
Co-Chair Mulder MOVED to ADOPT GOV-1. There being NO
OBJECTION, it was adopted.
Co-Chair Mulder requested to change GOV-2, deleting
"$53,000" and inserting "53,800". [Copy on File].
ADD:
Office of the Governor
Human Rights Commission
$53,800 Federal Funds
Co-Chair Mulder MOVED to ADOPT the amended GOV-2. There
being NO OBJECTION, it was adopted.
LANGUAGE
Representative Williams MOVED to ADOPT LANG-1, which would
address a drafting error. [Copy on File].
Page 43, Line 7:
DELETE:
Calendar year 1999
INSERT:
fiscal year 2000
There being NO OBJECTION, it was adopted.
Representative Austerman MOVED TO ADOPT LANG-2. [Copy on
File].
Page 42, following line 6:
Insert a new bill section to read:
*Sec 5. ALASKA AEROSPACE DEVELOPMENT CORPORATION. That
portion of the corporate receipts of the Alaska
Aerospace Development Corporation received during the
fiscal year ending June 30, 2001, that is in excess of
the amount appropriated in sec. 1 of this Act, is
appropriated to the Alaska Aerospace Development
Corporation for operations during the fiscal year
ending June 30, 2001.
Renumber the following bill sections accordingly:
Page 49, Lines 1 - 2:
DELETE:
3, 9, 12(a), 13, 14, 17, 20, 21, 26(c), 26(h),
26(I), and 31(a)
INSERT:
3, 10, 13(a), 14, 15, 18, 21, 22, 27(c), 27(h),
27(i), and 32(a)
There being NO OBJECTION, it was adopted.
Co-Chair Mulder MOVED to ADOPT LANG-3. [Copy on File].
Page 48, following line 26:
Insert a new subsection to read:
(c) The sum of $100,000 is appropriated as a return
of capital from corporate receipts of the student loan
fund (AS 14.42.210) to the Alaska Commission on
Postsecondary Education for payment in fiscal year
2001 to the Alaska National Guard to pay the
University of Alaska for course credits for continuing
educational benefits to members of the Alaska National
Guard.
Co-Chair Mulder explained that the amendment would increase
the education benefit for members of the Alaska National
Guard by providing educational credits through the
University of Alaska. It would improve Alaska National
Guard recruiting and retention and provide better
opportunity for advancement.
Vice Chair Bunde OBJECTED for the purpose of a comment. He
advised that any profit that Alaska Postsecondary makes are
profits received from the students. He suggested that the
amendment would allow for students to fund the tuition for
other students. He voiced concern with that measure.
Vice Chair Bunde WITHDREW his OBJECTION. There being NO
further OBJECTION, LANG-3 was adopted.
Co-Chair Mulder MOVED to adopt LANG-3A. [Copy on File].
Page 48, Line 23
DELETE:
$1,445,200
INSERT:
$1,444,200
Following "appropriated":
Insert:
as return of capital
He explained that the amendment would correct wording to
accommodate a request by the Postsecondary Commission and
would add "return of capital".
DENNY DEWITT, STAFF, REPRESENTATIVE ELDON MULDER, explained
that the amendment provided the term requested by the
Postsecondary Commission. It would function similar to a
bill introduced by the Governor, and would be taken out of
net profits.
Vice Chair Bunde reiterated his objection as a policy call.
He stated that the Student Loan program should break even
and carry their own weight. The students should not be to
only ones paying taxes. He added that it would be an
indirect tax. Representative Bunde suggested that the money
should be used to reduce the loan rates for the State loans.
Vice Chair Bunde OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Phillips, Williams, Austerman, G. Davis,
Foster, Mulder, Therriault
OPPOSED: Bunde, J. Davies, Grussendorf, Moses
The MOTION PASSED (7-4).
Co-Chair Mulder MOVED to ADOPT LANG-4. [Copy on File].
Page 48, Line 14
Language - Section 30
DELETE:
$1,090,612
ADD:
$1,020,612
He explained that the amendment resulted from information
received by Barbara Frank, Department of Environmental
Conservation. There being NO OBJECTION, the amendment was
adopted.
Co-Chair Therriault MOVED to adopt LANG-5. [Copy on File].
*Sec___. Medicare Pharmacy Receipts. If the
reimbursement under the Medicare program (42 USC Tile
XVIII) for pharmacy coverage is not in effect during
Federal Fiscal Year 2001, the amount of the shortfall
in recovery to the Medicaid program, not to exceed
$3,000,000, is appropriated from the general fund.
He explained that the amendment would provide money to
Department of Health and Social Services to cover a possible
shortfall. There being NO OBJECTION, the amendment was
adopted.
Representative J. Davies MOVED to ADOPT LANG-6. [Copy on
File]. Co-Chair Mulder OBJECTED.
Salary and Benefit Adjustments:
(a) Subject to (f) of this section, an amount not to
exceed $22,947,300 is appropriated to the Office of the
Governor, office of management and budget, for the
fiscal year ending June 30, 2001, from the funding
sources and in the amounts listed in (d) of this
section to implement the monetary terms of the
collective bargaining agreements in the amounts listed
in (b) of this section and for salary and benefit
adjustments for executive branch employees who are not
members of a collective bargaining unit.
(b) Subject to (0 of this section, funding for each of
the following collective bargaining agreements, in the
amount shown, is included in the appropriation made in
(a) of this section:
COLLECTIVE BARGAINING AGREEMENT
Alaska Public Employees Association for the
Supervisory Unit; $2,616,200
Alaska State Employees Association for the General
Government Unit; $11,936,800
Alaska Vocational Technical Center Teachers
Association, representing teachers at the Alaska
Vocational Technical Center; $ 66,200
Alyeska Correspondence School Education Association,
representing teachers at the Alyeska Central
School; $ 56,000
Confidential Employees Association; $ 344,200
Inlandboatmen's Union of the Pacific, representing the
unlicensed marine unit; $1,127,500
International Organization of Masters, Mates, and
Pilots, Pacific Maritime Region for the Master,
Mates, and Pilots Unit; $ 145,800
Marine Engineers Beneficial Association, representing
licensed engineers employed by the Alaska marine
highway system; $ 175,000
Public Employees Local 71 for the Labor, Trades, and
Crafts Unit; $2,092,600
Public Safety Employees Association, Correctional
Officers Unit; $1,139,000
Public Safety Employees Association, representing
state troopers and other commissioned law
enforcement personnel; and $ 607,100
Teachers' Education Association of Mt. Edgecumbe,
representing teachers of the Mt. Edgecumbe
High School. $ 29,300
(c) The sum of $980,200 is appropriated from the
general fund to the Alaska marine highway system fund
(AS 19.65.060(a)).
(d) The appropriation made in (a) of this section is
from the following funding sources in the amounts
listed:
AGENCY
Administration $2,158,000
Community & Economic Development $ 726,500
Corrections $2,060,000
Education and Early Development $ 754,400
Environmental Conservation $ 749,100
Fish and Game $1,847,100
Office of the Governor $ 295,000
Health and Social Services $3,457,100
Labor and Workforce Development $1,331,300
Law $ 706,300
Military and Veterans' Affairs $ 350,400
Natural Resources $1,021,000
Public Safety $1,125,000
Revenue $5,076,200
Transportation and Public Facilities $5,076,200
FUNDING SOURCE
Federal receipts $3,536,100
General fund match $ 681,800
General fund receipts $6,817,000
General fund program receipts $1,013,000
Inter-agency receipts $1,725,700
Donated commodity handling fee account $ 2,500
Federal incentive payments $ 52,700
Benefit system receipts $ 46,300
Exxon Valdez oil spill settlement $ 42,500
Agricultural loan fund $ 27,500
FICA administration fund account $ 2,800
Fish and game fund $ 388,100
Science and technology endowment income $ 18,500
Highway working capital fund $ 275,000
International airports revenue fund $ 629,900
Public employees retirement fund $ 75,400
Second injury fund reserve account $ 4,700
Disabled fisherman's reserve account $ 5,600
Surplus property revolving fund $ 6,200
Teachers' retirement system fund $ 31,600
Veterans' revolving loan fund $ 2,900
Commercial fishing loan fund $ 52,100
General fund/mental health $ 593,200
Real estate surety fund $ 2,900
National guard retirement system $ 1,500
Training and building fund $ 9,100
Permanent fund dividend fund $ 90,900
Rural development initiative fund $ 1,800
Oil/hazardous prevention/response $ 178,200
Investment loss trust fund $1,960,400
Interagcy recpts/oil and hazardous was. $ 18,500
Capital improvement project receipts $1,626,000
Public school fund $ 400
Fisheries enhancement revolving loan fd.$ 7,500
Alternative energy revolving loan fund $ 3,000
Alaska clean water loan fund $ 6,100
Marine highway system fund $1,633,600
Storage tank assistance fund $ 14,800
Information services fund $ 196,700
Mtl hlth trt.authority authorized rcpts $ 61,800
Clean air protection fund $ 43,000
Mental health trust administration $ 11,200
Children's trust fund earnings $ 300
Alaska drinking water fund $ 7,000
AIDEA receipts $ 52,200
AHFC receipts $ 222,000
Alaska Municipal Bond Bank receipts $ 1,300
APFC receipts $ 78,500
Post-secondary Ed Com receipts $ 158,800
Designated program receipts $ 295,700
Test fisheries receipts $ 67,800
Intrl trade and business endowment inc $ 4,300
Pioneers homes receipts $ 55,900
Indirect cost reimbursement $ 20,200
Regulatory Commission of Alaska rcpts $ 81,300
Public building fund $ 3,500
(e) The following amounts are appropriated to the
Alaska Court System and the Legislature for the
fiscal year ending June 30, 2001, from the
following funding sources in the amounts listed,
for salary and benefit adjustments for employees
of those agencies who are not members of a
collective bargaining unit:
AGENCY:
Alaska Court System $1,417,300
Legislature $ 634,000
FUNDING SOURCE:
General federal receipts $1,417,300
Investment loss trust fund $ 371,200
(f) If a collective bargaining agreement listed in
(b) of this section is not ratified by the
membership of the respective collective bargaining
unit, the appropriation made by (a) of this
section is reduced by the amount listed for that
collective bargaining agreement in (b) of this
section, and the corresponding agency allocations
made by, and funding source amounts listed in (d)
of this section are reduced accordingly.
Amend Section 37, page 11, lines 13 - 15 to read:
Sec. 37. NONLAPSE OF APPROPRIATIONS. The
appropriations made by secs. 1, 2(b), (c), and
(d), 7, 10(a), 11, 12, 13, 16, 20, 21, 25(t),
29(c), (h), and (i), and 34 of this Act are for
the capitalization of funds and do not lapse.
Representative J. Davies explained that the language would
fund all the collective bargaining agreements that have been
approved by the Governor.
Co-Chair Mulder advised that the position of the Majority
has been to determine the combined costs of all the
agreements. He inquired if there were any other costs not
listed in the amendment. Representative J. Davies
understood that the amendment provided the "bulk" of the
agreements with the exception of the University ones.
Representative J. Davies stressed that the issue must be a
priority to this Legislature. He advised that the amount
totalled just over $23 million dollars. The analysis that
the Department of Administration provided was rigorous and
the State is in danger if the Legislature does not allow for
these inflationary increases. The value of State services
will not be competitive. He noted that the State is
beginning to loose workers because of the lack of movement
regarding these concerns.
Co-Chair Mulder commented that the Majority does understand
the importance and realizes that the issues are serious.
Representative J. Davies WITHDREW the Amendment.
Representative G. Davis MOVED to ADOPT LANG-7. [Copy on
File].
Insert the following section:
*Sec.___. ALASKA OIL AND GAS CONSERVATION COMMISSION.
The unexpended and unobligated balance on June 30,
2000, of the Alaska Oil and Gas Conservation Commission
receipts account for regulatory cost charges under AS
31.05.093 and AS 31.05.090 for fiscal year 2000 is
appropriated to the Alaska Oil and Gas Conservation
Commission for fiscal year 2001 operations.
Representative G. Davis stated that the amendment would roll
forward the unexpected balances. There being NO OBJECTION,
LANG-7 was adopted.
Representative G. Davis MOVED to ADOPT LANG-8. [Copy on
File].
Department of Public Safety
(b) Appropriations totaling the estimated amount of the
deposits described in (a) of this section and remaining
unappropriated balances from prior-year transfers for
these purposes are made in sec. 1 of this act to the
Department of Public Safety and the Department of Law
for increased enforcement, investigation, and
prosecution of state fish and game laws. If the
receipts appropriated to the fish and game fund (AS
16.05.100) from the sources described in (a) of this
section during fiscal year 2001 and remaining
unappropriated balances from prior-year transfers for
these purposes fall short of the estimates appropriated
by this Act, each department's appropriation set out in
sec. 1 of this Act is reduced proportionately.
Co-Chair Mulder OBJECTED for the purpose of discussion.
Representative G. Davis explained that the amendment was
intended for rolling forward unappropriated balances from
the prior year for the Department of Public Safety.
Co-Chair Mulder indicated that had been done in the past.
He WITHDREW the OBJECTION. There being NO further
OBJECTION, the amendment was adopted.
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
Co-Chair Mulder explained CED-11. [Copy on File]. He noted
that the STEP Funds were one-time funds and are no longer
available. He MOVED to ADOPT CED-11.
DELETE:
Department of Community & Economic Development
Revenue Sharing
$1,524,000 STEP Funds
DELETE:
Department of Community & Economic Development
Municipal Revenue Sharing
Municipal Assistance
$1,866,000 STEP Funds
There being NO OBEJCTION, CED-11 was adopted.
Representative J. Davies MOVED to ADOPT CED-12 which would
replace the Step Funds with general funds. [Copy on File].
Department of Community & Economic Development
Municipal Revenue Sharing Appropriation
Page 4, Line 22
DELETE:
$46,893,400 Approp. Items
$28,493,400 General Funds
$18,400,000 Other Funds
ADD:
$46,893,400 Approp Items
$31,893,400 General Funds
$15,000,000 Other Funds
Representative J. Davies explained that there are no more
STEP funds. The amendment would replace $3,400,000 of STEP
funds with general funds to maintain the same level of
funding.
Co-Chair Mulder OBJECTED. Co-Chair Mulder mentioned that
the Subcommittee had tried to prioritize to meet budgetary
goals for municipal assistance and revenue sharing. That
move came at the expense to trying to maintain the level
that the State had funded in the past.
Representative J. Davies WITHDREW the MOTION.
Department of Education and Early Development
Representative Grussendorf MOVED to ADOPT ED-9. [Copy on
File].
DELETE:
Page 9, Line 8
Department of Education and Early Development
Early Development
Head Start Grants
$20,000 General Funds
ADD:
Page 9, Line 8
Department of Education and Early Development
Early Development
Head Start Grants
$20,000 I/A
(TANF funds from H&SS)
ADD:
Page 9, Line 20
Department of Education and Early Development
Museum Operations
Alaska Library and Museums
$20,000 General Funds
He explained that federal funds could be used for Head Start
Grants. The amendment would allow movement of general funds
to restore $20,000 to the Shelton Jackson Museum. Combined
with the new program receipts, it would approximate the FY00
funding.
There being NO OBJECTION, the amendment was adopted.
(TAPE CHANGE HFC 00 - 66, Side 2.)
INTENT LANGUAGE
Co-Chair Therriault MOVED to ADOPT INTENT-1. [Copy on
File].
Department of Health and Social Services
Medicaid Services BRU
Medicaid Services component
It is the intent of the legislature that the Division
of Medical Assistance will develop a program of
intergovernmental transfers, at 90% return, with public
hospitals or nursing homes, which will allow the
Medicaid program to capture statutory designated
program receipts of $10,000,000 to offset general fund
expenditures for fiscal year 2001.
Co-Chair Therriault explained that the amendment would
establish the Medicaid pro share program with governmental
owned hospitals. There being NO OBJECTION, the amendment
was adopted.
Co-Chair Mulder MOVED to ADOPT INTENT-2. [Copy on File].
Alaska Court System
It is the intent of the legislature that the Alaska
Court System examine the feasibility of moving its
information technology network operations from the
Department of Administration's Wide Area Network (WAN)
to a network provided by commercial carriers. The
Alaska Court System shall use money appropriated to pay
network charges to obtain services from the most cost
beneficial network service provider.
Co-Chair Mulder explained that the amendment would provide a
cost-savings for the Court System. He stated that the
Subcommittee did adopt the Letter of Intent. Representative
J. Davies disagreed that there would be cost savings. He
noted that the Department of Administration was in
negotiation giving consideration to privatizing all the
State's telephone systems. He did not believe that it
should be separated out.
Co-Chair Mulder MOVED to TABLE INTENT-2.
Representative J. Davies MOVED to ADOPT INTENT-3. [Copy on
File].
Department of Environmental Conservation
It is the intent of the legislature that a portion of
the general fund savings which result from 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.
Co-Chair Therriault questioned how the amendment would work.
Representative J. Davies explained that the mechanism would
free up approximately $600 thousand general fund dollars, as
a contingent consideration.
Co-Chair Therriault inquired if there would be a general
fund savings in the Department if HB 304 passes. Co-Chair
Mulder replied that he planned to help that reach the budget
goals. Representative J. Davies pointed out that this
motion was only intent language.
There being NO OBJECTION, the amendment was adopted.
Co-Chair Mulder MOVED to ADOPT LANG-4. [Copy on File].
Department of Transportation and Public Facilities
Letter of Intent
In order to help ensure safe roadways, adequate
brushing must be performed on Alaska's highways. There
is a backlog, or "deferred" maintenance problem, on the
shoulders of our highways. Alders along our roads not
only reduce visibility and are a safety problem, but
alder and other brush growth accelerates the
destruction of our roadbeds and increases the overall
cost of operating, maintaining and replacing roads.
It is the intent of the legislature that the Department
of Transportation and Public Facilities start the
permitting process to use Rodeo or other safe
herbicides to control the growth of alders and brush on
the shoulders of the roads and highways in Alaska.
Co-Chair Mulder acknowledged that the Department must try to
save money while controlling the growth along the shoulders
of the roads.
Representative Grussendorf stressed that the communities of
Petersburg, Sitka and Wrangell had passed resolutions that
they did not want Rodeo used for that purpose with regards
for health and safety concerns. Representative Grussendorf
OBJECTED to the language.
Representative J. Davies reiterated that in certain areas of
the State, there is concern with using herbicides. He noted
that there are areas that would prefer to use mechanical
methods instead of herbicides.
Co-Chair Mulder noted that "mechanical" options cost more to
provide. Representative Grussendorf emphasized that these
are real concerns.
Co-Chair Mulder asked if it would satisfy member's concerns
by adding the language "where appropriate" at the end of the
Intent Language. Representative J. Davies and
Representative Grussendorf replied that would be acceptable.
Co-Chair Mulder MOVED to add "where appropriate" at the end
of INTENT-4. There being NO OBJECTION, it was added. There
being NO OBJECTION, INTENT-4 was adopted.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Representative Foster introduced DOT/PF-1B. [Copy on File].
AMEND:
Letter of Intent
Department of Transportation & Public Facilities
Line 1 change ($264.2) to $257.6
Change designated roads and amounts to
Taylor Highway $132.0
Boundary Spur 10.5
McCarthy Road 8.7
Nome/Teller Road 35.7
Nome/Council Road 34.7
Kugarok Road 36.0
LARRY LA BOLLE explained that DOT/PF-1B would correct the
Letter of Intent forwarded by the Subcommittee. [Copy on
File]. It is aligned with DOT/PF-1A, adopted earlier. He
pointed out that it would reduce the overall amount because
snow clearance would not be done on the Dexter By-Pass. The
language would correct that Letter of Intent so that it
would be parallel to the previous action taken. There being
NO OBJECTION, DOT/PF-1B was adopted.
LANGUAGE
DAVID TEAL, DIRECTOR, DIVISION OF LEGISLATION FINANCE, spoke
to LANG-9. He stated that these are not "technical
amendments", as they do change the numbers in the bill. He
reiterated, the changes do affect what is in the bill. He
noted that about $50 million dollars of duplicated
expenditures had been backed out. As money flows from the
general fund into some of the other funds, it is counted as
a general fund expenditure. Some of the funds blend. It is
difficult to determine when funds are duplicated.
Mr. Teal listed the various components of LANG-9.
* Centralized Administrative Services
Retirement and Benefits
Group Health
* Leases
* Criminal Division
Co-Chair Mulder noted that he was "okay" with having a
placeholder for the "duplicated funds".
Co-Chair Mulder MOVED to ADOPT LANG-9. There being NO
OBJECTION, the amendment was adopted.
Co-Chair Therriault MOVED that the Legislative Finance
Division make all necessary technical adjustments to HB 312
and HB 313.
There being NO OBJECTION, the authority was given.
HB 312 and HB 313 were HELD in Committee for further
consideration.
Adjournment
The meeting adjourned at 10:06 p.m.
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