Legislature(2001 - 2002)
03/26/2001 01:52 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 26, 2001
1:52 PM
TAPE HFC 01 - 62, Side A
TAPE HFC 01 - 62, Side B
TAPE HFC 01 - 63, Side A
CALL TO ORDER
Co-Chair Mulder called the House Finance Committee meeting
to order at 1:52 PM.
MEMBERS PRESENT
Representative Eldon Mulder, Co-Chair
Representative Bill Williams, Co-Chair
Representative Con Bunde, Vice-Chair
Representative Eric Croft
Representative John Davies
Representative Richard Foster
Representative John Harris
Representative Bill Hudson
Representative Ken Lancaster
Representative Jim Whitaker
MEMBERS ABSENT
Representative Carl Moses
ALSO PRESENT
Nancy Slagle, Director, Division of Administrative Services,
Department of Transportation and Public Facilities; Barbara
Ritchie, Deputy Attorney General, Department of Law; Dean
Guaneli, Chief Assistant Attorney General, Department of
Law; Chuck Hosack, Deputy Director, Division of Motor
Vehicles, Department of Administration; Dan Spencer,
Director, Division of Administrative Services, Department of
Administration; Alison Elgee, Deputy Commissioner,
Department of Administration; Kathryn Daughhetee, Director,
Administrative Services Division, Department of Law; Tom
Lawson, Director, Administrative Services, Department of
Community and Economic Development; Nico Bus, Administrative
Services Manager, Division of Support Services, Department
of Natural Resources; Dwayne Peeples, Director,
Administrative Services, Department of Corrections; Annalee
McConnell, Director, Office of Management and Budget, Office
of the Governor; Karen Rehfeld, Director, Division of
Education Support Services, Department of Education and
Early Development; Eddy Jeans, Manger, School Finance and
Facilities Section, Department of Education and Early
Development; Kenneth Bischoff, Director, Division of
Administrative Services, Department of Public Safety; Larry
Dietrick, Program Manager, Prevention and Emergency Response
Program, Department of Environmental Conservation;
Commissioner Will Evan, Regulatory Commission of Alaska,
Department of Community and Economic Development.
PRESENT VIA TELECONFERENCE
Yvonne Chase, Deputy Commissioner, Early Education,
Department of Education and Early Development.
SUMMARY
HB 116 An Act making supplemental appropriations and
making and amending other appropriations; and
providing for an effective date.
HB 116 was heard and HELD in Committee for further
consideration.
HOUSE BILL NO. 116
An Act making supplemental appropriations and making
and amending other appropriations; and providing for an
effective date.
DEPARTMENT OF LAW
Section 10
JUDGMENTS AND CLAIMS. The sum of $478,700 is
appropriated from the general fund to the Department of
Law to pay judgments and claims against the state for
the fiscal year ending June 30, 2001.
BARBARA RITCHIE, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW
spoke to the department's FY01 supplemental request for
Judgments and Claims. They are all general fund obligations
of the state of Alaska. The judgments and claims come from
both the criminal and civil divisions.
Ms. Ritchie noted that the amended request is $674,144.30
thousand dollars, which funds 19 cases. Co-Chair Mulder
asked for additional information on item #18, Dillon and
Findley, P.C itf Hawken Northwest Inc, and the ADEC, J.V. v.
State. Ms. Ritchie explained that the case is an award on
damages by an administrative hearing officer. The Department
of Environmental Conservation has paid a portion of the
award. The remaining amount is $142,912.00 thousand dollars.
The case is the result of a lease to acquire laboratory
space for the Department of Environmental Conservation's
Juneau laboratory. The case claimed that the state
interfered with the selection of the lending mechanism and
delayed approval of the financing package. The original
recover sought was $13 million dollars. The case went to a
hearing. The hearing officer conducted a 15-day hearing and
the officer awarded $194 thousand dollars against the state
of Alaska. The Commissioner of Administration took the
recommendation of the hearing officer. The amount is a
finding that the state has the obligation to pay rent and
for some special windows.
In response to a question by Representative Croft, Ms.
Ritchie clarified that some of the award was paid by the
Department of Administration from funds held back from the
contract amount.
Ms. Ritchie discussed section 4 in HB 117.
The sum of $240,000 is appropriated from the general
fund to the Department of Law, civil division, for
investigation and prosecution of the claims of state
and municipal agencies against the Bank of America and
certain other affiliated banks, and for litigation
related to the allocation of public safety resources
for the fiscal years ending June 30, 2001 and June 30,
2002.
She explained that the department would need a supplemental
appropriation of up to $175 thousand dollars with an
extended lapse date to FY02. She gave further back ground
information. The issue began in California. California found
mismanagement by the Bank of America and failure to default
or return to the state unclaimed properties where
bondholders failed to show up. The state is also seeking
penalty and interests for breech of contract. The state has
claims exceeding $100 million dollars. The state
participated in a three-day mediation meeting in Juneau,
which did not resolve the issue. The state intends to file
litigation by the April 20, 2001 deadline. The department
has in-state counsel and counsel in the state of California.
There are a number of municipalities involved. The Alaska
Industrial Development and Export Authority (AIDEA) and
Alaska Housing Finance Corporation (AHFC) are also involved.
The legislature has also provided statutory designated
program receipts to allow reimbursements by municipalities.
The cost of litigation is high but the stake is high. The
state of California received $188 million dollars in their
case. The complaint needs to be filed in Alaskan courts by
April. Ms. Ritchie reiterated that the supplemental amount
needed could be as high as $175 thousand dollars. She stated
that it would not exceed the original request for $240
thousand dollars.
Section 19
AR13907-00 AHFC Outside Counsel 340.83
KATHRYN DAUGHHETEE, DIRECTOR, ADMINISTRATIVE SERVICES
DIVISION, DEPARTMENT OF LAW noted that the department has a
ratification of $340.83 dollars in section 19.
DEPARTMENT OF ADMINISTRATION
Section 1
(a) The sum of $1,678,700 is appropriated from the
general fund to the Department of Administration
for the leasing program for the fiscal year
ending June 30, 2001.
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION discussed section 1(a). He
noted that the practice over the past 11 years has been to
short fund the leasing budget in the hopes that the
department could reduce spending. The FY01 reduction was
$1.9 million dollars.
Representative Croft questioned if the practice of under
funding leasing should continue. Mr. Spencer responded that
leases are built on a forecast that cannot be absolutely
predicted in advance. The Department succeeded in reducing
the total cost of leases by $250 thousand dollars. He noted
that the total budget is $43 million dollars. In response to
a question by Representative Croft, Mr. Spencer discussed
items that affect the department's ability to anticipate
lease costs. He concluded that the department would prefer
to have the full lease cost funded, but that it is difficult
to identify the true cost.
(b) The sum of $1,791,000 is appropriated from the
general fund to the Department of Administration,
office of public advocacy, for operating costs
for the fiscal year ending June 30, 2001.
Mr. Spencer observed that the request is higher than the
FY01 amount that was under-funded: $600 thousand dollars.
Child in need of aid cases are taking longer to litigate.
The department anticipates another projection in April. The
charges reimburse private attorneys for contract services.
Representative Hudson questioned if there is a standard
charge for private services. Mr. Spencer explained that
there is a three-year contract with 45 vendors around the
state. Attorneys are paid between $60 - $80 dollars an hour.
The amount of hours per case is the unknown issue.
(c) The sum of $77,401.93 is appropriated from the
general fund to the Department of Administration,
office of public advocacy, for the fiscal year
ending June 30, 2001, for payment of unpaid bills
for services received in fiscal year 2000.
Mr. Spencer noted that the FY00 supplemental for the Office
of Public Advocacy did not fully cover the costs of the
program; they were short by $7.4 thousand dollars. These
bills are eight months overdue. He stressed that they have
underestimated the appropriation necessary in the last two
years.
(d) The sum of $380,300 is appropriated from the
general fund to the Department of Administration,
public defender agency, for operating costs for
the fiscal year ending June 30, 2001.
Mr. Spencer pointed out that the Alaska Public Defenders
Agency's budget has been reduced over time, while they have
had the same or a growing caseload.
(e) The amount necessary to fully fund the longevity
bonus grant program for the fiscal year ending
June 30, 2001, estimated to be $1,100,000, is
appropriated from the general fund to the
Department of Administration.
Mr. Spencer noted that the latest estimate amount needed in
the supplemental is $1.3 million dollars. The department
looks at the forecast every month.
(f) Section 1, ch. 135, SLA 2000, page 2, line 9, is
amended to read:
Anchorage Pioneers' Home 1,535,000
Ventilation and Humidification ]
System Emergency Repair and
Upgrade (ED 10-25)
Mr. Spencer observed that there was a capital project
request for Ventilation and Humidification System Emergency
Repair at the Anchorage Pioneers' Home of approximately
$1.5 million dollars in the FY01 budget. An appropriation
of $250 thousand dollars from AHFC dividends and $880
thousand dollars in pioneer home receipts were included in
the FY01 budget. The pioneer home receipts were based on a
forecast that the department would collect $440 thousand
dollars in receipts beyond their authorization. The
department committed to starting the project. The
department estimates that it will be $200 thousand dollars
short in FY01 pioneer receipts. The department did not have
$440 thousand dollars extra pioneer home receipts; the
department had $285 thousand dollars in excess receipts. An
engineer provided a true estimate. It would cost $1.5
million dollars to do the first phase of the project. He
stressed the difficulty of forecasting the residents'
ability to pay.
(g) Section 2, ch. 135, SLA 2000, page 60, lines 18
and 21, is amended to read:
General Fund Receipts 1,995,000
Receipt Supported Services 285,000
Mr. Spencer explained that section (g) would allow any
excess pioneer home receipts collected in the current fiscal
year to lapse into the general fund. The project would be
fully funded. Any extra pioneer receipts would go back into
the general fund. The first phase cost is $1.5 million
dollars.
(h) The sum of $87,000 is appropriated from benefit
systems receipts to the Department of
Administration, division of retirement and
benefits, group health, for additional
litigation costs for the fiscal year ending
June 30, 2001.
ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION discussed section (h). She noted that the
request would cover the preparation of a lawsuit that has
been scheduled for September. The request would be supported
by retirement funds. The suit has been brought against the
state by three organizations representing retirement groups
over the constitutionality of changes that were made to the
retirement health benefit program. In response to a question
by Representative John Davies, Ms. Elgee explained that the
Retirement Board underwent an extensive review of the
retiree medical health program. The Board recommended
changes that were adopted including increasing the lifetime
maximum allowable for a retiree, payment of round trip
airfare, and increased out patient reimbursement for mental
health services. These were offset by a $50 dollar increase
in the deductible and increased co-pays on prescription
drugs. The organizations behind the suit claim that the
changes represent a diminishment of benefits.
(i) The sum of $150,000 is appropriated from the
general fund to the Department of
Administration, division of senior services, for
costs of protective services for vulnerable
adults for the fiscal year ending June 30, 2001.
Ms. Elgee noted that the request reflects caseload growth in
the general relief program.
(j) The sum of $614,000 is appropriated to the
Department of Administration, division of senior
services, for family caregivers grants and for
developing assisted living programs in rural
Alaska for the fiscal year ending June 30, 2001,
from the following sources:
Federal receipts $564,000
Statutory designated program receipts
50,000
Ms. Elgee explained that section (j) is made up of two
different grant increases for the Alaska Commission on Aging
under the Division of Senior Citizens. Congress adopted a
new provision called the Family Caregivers Act. The request
authorizes new federal funds of $564 thousand dollars. The
state will receive the funds in subsequent years through the
nutrition, transportation and support services programs to
give additional support for caregivers. The grants would go
to non-profits throughout the state and can be used for a
variety of services. The second piece is for $50 thousand
dollars in statutory designated program receipts through the
Robert Wood Johnson Foundation. It is a three-year grant.
The grant would be used to expand assisted living in rural
Alaska. Both of the grants are included in the FY02 budget.
(k) The sum of $287,200 is appropriated from the
general fund to the Department of
Administration, division of motor vehicles, for
the boating safety program and increased
operating costs for the fiscal year ending
June 30, 2001.
Mr. Spencer discussed section 1(k). The request has two
elements. The first is $68 thousand dollars for contracts
with Polaroid to produce driver's licenses and ID cards. The
second portion is $219.2 thousand dollars for the Boat
Registration program. The Boat Registration program went
into effect January 1, 2001. The department has incurred
$219 thousand dollars in startup costs and more is expected.
The cost for the state of Alaska takeover of data from the
Coast Guard for registration was more expensive than
anticipated. The program also affects non-powered boats. The
fiscal note forecasted an increase in revenues of $933
thousand dollars once the program was fully in place for a
full fiscal year. The estimate was based on assumptions of
unregistered boats brought into the program. Representative
Hudson recalled that the fiscal note anticipated 300,000
boat registrations. The half-year estimate was $433 thousand
dollars for FY01. The fiscal note was developed on general
fund program receipts. The Division of Motor Vehicles
generates approximately $37 - $40 million dollars in
receipts. Boating registration receipts were reclassified
from general fund program receipts to statutory designated
program receipts.
TAPE HFC 01 - 62, Side B
Mr. Spencer stressed that the change to statutory designated
program receipts has created difficulty in cost accounting.
He acknowledged that the $219 thousand dollar figure is an
estimate. The Coast Guard database is a known factor.
Projections will be updated at the end of the month. Every
boat dealer that sells more than three boats a year is
required to collect the registration fee.
Co-Chair Mulder maintained that a shortfall in the
Division's budget is being credited back to the boat
registration program. He asked what costs were incurred that
should be considered.
Ms. Elgee noted that the fiscal note anticipated $471
thousand dollars in startup costs. The initial costs
included reprogramming for the Coast Guard database,
additional nonpermanent employees for the seasonal
fluctuation, and equipment. The Coast Guard database took
more effort than anticipated. At the time of the fiscal note
the Coast Guard database contained 33,000 boats. There was
an expansion of powerboats to a total of 50,000 to 100,000
boats. The fiscal note used an estimate of 75,000
powerboats. An additional 100,000 non-powered boats were
included. The entire registration period is three years.
Revenue was based on 58,300 annual boat registrations.
CHUCK HOSACK, DEPUTY DIRECTOR, DIVISION OF MOTOR VEHICLES,
DEPARTMENT OF ADMINISTRATION testified via teleconference.
He explained that the contract cost to reprogram the
computers was $148 thousand dollars. The division projects
$192 thousand dollars in revenues. Additional costs deal
with bringing boat dealers on line. Employees have contacted
boat dealers and provided training and materials. Boat
registration forms and decals added to costs. Additional
employees were also hired to handle the increase. He
emphasized that employees must be hired and trained in
advanced. The department's cost for outreach is $21 thousand
dollars. There were six positions added between October and
December of 2000. He did not have the exact personnel costs,
but estimated them at $144 thousand dollars. The personnel
costs would be for approximately 9 months. Owners can also
register at the regular Division of Motor Vehicles counters.
Co-Chair Mulder questioned how many registrations have come
through mail v. over the counter. Mr. Hosack pointed out
that only those currently registered with the Coast Guard
would come over the mail. The majority of registrations are
from new registrations, such as non-powered boats.
Co-Chair Mulder clarified that revenues have not gone to
education programs to date. The department anticipates
taking in more revenues than needed to fund the program. Mr.
Hosack agreed and pointed out that reprogramming costs are
one time.
Ms. Elgee noted that due to the legislation funding is
coming to the Department of Natural Resources, Division of
Parks. The Division of Parks would be used for the education
effort. Mr. Spencer thought that the department had received
some funding from the Department of Natural Resources to
offset initial costs. Mr. Hosack clarified that the
Department of Administration cannot receive further federal
funds from the Department of Natural Resources to close the
gap.
Representative Hudson noted that the startup costs were
estimated. He thought that boat registration fees would
cover the costs. He anticipated that there would be a
surplus of funds in the coming year. He noted that 30 new
life jacket sites are coming on, many in rural Alaska. He
stressed that the whole picture will look better in the
future due.
Co-Chair Mulder questioned what the division would do if the
funds were not received. Mr. Hosack responded that the
division would have to cut back on the personnel they have
for the program. Some vacant positions have been held open.
If these positions remain vacant there would be longer lines
at the Division of Motor Vehicle offices.
Co-Chair Mulder noted that the fiscal note showed some
temporary positions. He questioned if they would go away.
Mr. Hosack clarified that there were two nonpermanent
positions that would go away after 12 months. The six
additional permanent full time positions would remain unless
reductions are needed due to non-receipt of funds.
Section 9(A)
(1) the sum of $75,000 to the Department of
Administration, pioneers homes;
Mr. Spencer noted that the department is requesting $75
thousand dollars to fund fuel costs at pioneer homes. The
request would fund additional fuel for the Juneau, Sitka,
Ketchikan and Fairbanks homes.
Section 18(a)
Administration $ 14,157.61
The Department of Administration has miscellaneous claims
from the prior fiscal year. The department also has stale
dated warrants. If a program receives a bill after their
funds have lapsed of if the bill is more than a year old it
must be paid in this way. Warrants that are more than two
years old must also be paid under this section.
Co-Chair Mulder noted that there are claims from as far back
as 1982. He questioned if the department tries to balance
the books and find claims. Mr. Spencer noted that the
claimant must come forward with the claim.
Section 19(1)
AR3530-90 Older Alaskan Commission $693.00
Mr. Spencer noted that the Older Alaskan Commission provided
services based on federal funds that were not received.
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
Section 2
(a) The sum of $16,000 is appropriated from federal
receipts to the Department of Community and
Economic Development, Division of International
Trade and Marketing development, for an Alaska
seed potato storage facility feasibility study for
the fiscal years ending June 30, 2001 and June 30,
2002.
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMUNITY AND ECONOMIC DEVELOPMENT discussed section 2(a).
The request would analyze market demand in Taiwan and look
at the state of Alaska's production capability and storage
needs. The request would evaluate whether further state
funds should be invested.
(b) The sum of $144,800 is appropriated from
Regulatory Commission of Alaska receipts to the
Department of Community and Economic Development,
Regulatory Commission of Alaska, for additional
operating costs for the fiscal year ending
June 30, 2001.
Mr. Lawson observed that the receipts would cover
unanticipated costs tied to relocation of the agency. Costs
are associated with increased building lease costs, pipeline
case workload, information management system and moving
expenses for staff.
Representative John Davies asked if the receipts already
exist. Mr. Lawson replied that the request would not result
in a rate increase.
COMMISSIONER WILL EVAN, REGULATORY COMMISSION OF ALASKA,
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT testified
via teleconference. He clarified that the money is already
being collected.
Section 9(a)(12) and 9(d)
Mr. Lawson spoke to a proposed amendment to section 9(a)(12)
to add $1,546,319 million dollars to the Power Cost
Equalization Fund. Section 9(d) would also be a new section
to appropriate this funding. As a result of increased fuel
costs the program is expected to cost $1,546,319 million
dollars more in FY01. This would maintain funding at the
same reimbursement level.
Representative Lancaster stated that he would get additional
information on the request.
Section 12
(a) Subject to (b) of this section, the amount
received by the National Petroleum Reserve - Alaska
special revenue fund (AS 37.05.530) under 42 U.S.C.
6508 during the fiscal year ending June 30, 2000, is
appropriated to the Department of Community and
Economic Development [COMMUNITY AND REGIONAL AFFAIRS]
for the fiscal years [YEAR] ending June 30, 2000,
June 30, 2001, June 30, 2002, June 30, 2003, and
June 30, 2004, for grants under the National Petroleum
Reserve - Alaska impact program.
Mr. Lawson observed that the funding was passed in the
operating budget but that it is associated with capital
projects. Section (a) would amend the appropriation to CIP
funding. This would extend the lapsed date to June 30, 2004.
(b) The amount received by the National Petroleum
Reserve - Alaska special revenue fund (AS 37.05.530)
under 42 U.S.C. 6508 during the fiscal year ending
June 30, 2001, estimated to be $1,728,015, is
appropriated from federal receipts to the Department of
Community and Economic Development for capital project
grants under the National Petroleum Reserve - Alaska
impact program.
Mr. Lawson discussed section (b). Section (b) represents
funds that the department has received for FY01. Ten
projects have been approved. The total amount remaining that
has not been appropriated from the National Petroleum
Reserve - Alaska account is less than $1,728,015 million
dollars. The department has not received its second payment.
The second payment should bring the amount to $1,728,015
million dollars. The state anticipates receiving the same
amount in FY02. He acknowledged the Legislature's previous
request for a list of projects and explained that the
request was made in the supplemental to allow the proposed
projects to be listed.
DEPARTMENT OF CORRECTIONS
Section 3
The sum of $650,000 is appropriated from the
correctional industries fund (AS 33.32.020(a)) to the
Department of Corrections for costs associated with the
correctional industries program for the fiscal year
ending June 30, 2001.
DWAYNE PEEPLES, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF CORRECTIONS discussed section 3. The request
would fund supplies for use by inmates to produce products
for sale. The majority would be used in the Mt. McKinley
meat plant. The request is also reflected in the FY02
budget.
Section 18
Corrections $5,836.84
Mr. Peeples spoke to Section 18, stale dated warrants and
miscellaneous claims. He noted that the majority are for
medical bills.
Section 19 (a)(3)
AR50979-00 RSAT Prog Female Offenders $24,276.30
Mr. Peeples spoke to Section 19 (a)(3), a ratification
request for the Inmate Programs. The request is the result
of a coding error. In FY00 a Reimbursable Services Agreement
(RSA) was executed between the Department of Corrections and
the Department of Public Safety. The invoices were charged
to the wrong program.
ALASKA COURT SYSTEM
Section 4
The sum of $41,900 is appropriated from the general
fund to the Alaska Court System, Alaska Commission on
Judicial Conduct, for attorney fees for the fiscal year
ending June 30, 2001.
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR noted the request is the
result of a disciplinary hearing against a judge. The matter
is still pending.
Co-Chair Mulder asked if there was a way to make the
activity self-sustaining. Ms. McConnell did not know of a
way to make the activity self-sustaining, but offered to
provide research. If the request was not funded, the $18
thousand dollars would remain unpaid. She noted the that it
would be difficult for the Alaska Commission on Judicial
Conduct to absorb the reduction due to the small size of its
budget. Co-Chair Mulder suggested that lapse balances in the
Alaska Court System might be used to pay the amount.
MILITARY AND VETERANS AFFAIRS
Section 5
The sum of $680,000 is appropriated from the general
fund to the disaster relief fund (AS 26.23.300(a)) for
core emergency preparedness and operations costs.
NICO BUS, ADMINISTRATIVE SERVICES MANAGER, DIVISION OF
SUPPORT SERVICES, DEPARTMENT OF NATURAL RESOURCES discussed
section 5. The request would capitalize the Disaster Relief
Fund; $630 thousand dollars would fund core services in the
Division of Emergency Services. This is a recurring amount.
He observed that $50 thousand dollars would be used for
satellite imaging, as needed.
Co-Chair Mulder asked if it was reflected in the operating
budget. Mr. Bus responded that it is a one-time request.
The satellite imaging funds would only be spent in the event
of an incident. Satellite imaging costs could range between
$2 - $4 thousand dollars and would be used for search and
rescue. The federal government would cover costs under FEMA.
Representative Hudson questioned if the Disaster Relief Fund
is depleted. Mr. Bus responded that there is very little
state money remaining. There are some federal funds but they
must be used for federal disasters. The department used to
request $1 million dollars a year. Discussion ensued
regarding the Miller's Reach Fire. There was approximately
$20 million dollars in federal reimbursement.
DEPARTMENT OF NATURAL RESOURCES
Section 7
FIRE SUPPRESSION. The sum of $10,750,100 is
appropriated to the Department of Natural Resources for
fixed costs and incurred fire suppression expenditures
for the fiscal year ending June 30, 2001, from the
following sources:
General fund $4,768,400
Federal receipts $5,981,700
Mr. Bus noted that the state's average fire suppression
costs is approximately $11 million dollars. The department's
operating budget contains $3.2 million dollars for fire
suppression. The department requests a supplemental for the
previous fire activity. No funding is requested for May and
June.
Section 19 (b)
(b) The expenditures by the Department of Natural
Resources for fire suppression for the fiscal year
ending June 30, 2000, (AR37313-00 Fire Suppression) are
ratified in the amount of $4,299,492.91.
Mr. Bus noted that this request provides ratification for
fire suppression costs for May and June of FY00. In response
to a question by Co-Chair Mulder he noted that some fix
costs for aviation contracts are included in the amount.
TAPE HFC 01 - 63, Side A
MILITARY AND VETERANS AFFAIRS
Section 9(a)
(2) the sum of $109,400 to the Department of Military
and Veterans' Affairs, Army guard facilities
maintenance;
Mr. Bus noted that the Military and Veterans Affairs has
additional fuel costs in Section 9(a). Mr. Bus noted that
the request would cover the state portion of the heating
cost for the various armories.
DEPARTMENT OF NATURAL RESOURCES
Section 9(a)
(3) the sum of $54,000 to the Department of Natural
Resources, division of parks and outdoor recreation;
Mr. Bus noted that the Department of Natural Resources also
has additional fuel costs for the Division of Parks.
Co-Chair Mulder noted that the cost of heating fuel has come
down from the peak level anticipated.
In response to a question by Representative Lancaster, Mr.
Bus noted that the supplemental period goes through July
1999 - June 2000.
Section 13
The sum of $100,000 is appropriated from the general
fund to the Department of Natural Resources, recorder's
office, for operating costs for the fiscal year ending
June 30, 2001.
Mr. Bus noted that the cost is associated with relocation in
Palmer. The office will move in with the Division of
Agriculture in Palmer. This is a one-time expense that is
not covered by the Department of Administration because it
is a negotiated lease contract.
Co-Chair Mulder questioned what would happen if the request
were not funded. Mr. Bus noted that the department would
have to make it up out of their recorder's office expenses.
Mr. Bus clarified that ratifications are adjusted amounts
based on actual costs. Discussion ensued on the ratification
process. The legislature is notified every 30 days on cost
of fire suppressions.
Co-Chair Mulder observed that the Committee would look at
appropriating more money in the supplemental to avoid the
need for ratifications for fire suppression.
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
Section 6
(a) Section 1, ch. 133, SLA 2000, page 8, lines 12 and
13, is amended to read:
K-12 Support 675,748,900646,542,300
Foundation Program 667,422,700
KAREN REHFELD, DIRECTOR, DIVISION OF EDUCATION SUPPORT
SERVICES, DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
discussed section 6(a). She noted that the request reflects
the actual current year foundation entitlement based on the
October student count. There is only one student count,
however, the department refines and updates the number based
on federal impact aid payments up to March 1.
(b) The sum of $2,111,400 is appropriated from the
general fund to the Department of Education and
Early Development for pupil transportation for the
fiscal year ending June 30, 2001.
Ms. Rehfeld noted that the balance of Section 6(a) would be
made available for the pupil transportation shortfall in
item 6(b).
(c) The sum of $5,500,000 is appropriated from federal
receipts to the Department of Education and Early
Development for the childcare assistance and
licensing program for the fiscal year ending
June 30, 2001.
Ms. Rehfeld observed that the department did not request
sufficient federal authorization. The department did not
anticipate the increase in the current Childcare Development
Funds.
Co-Chair Mulder pointed out that they are additional federal
funds that are not Temporary Assistance to Needy Families
(TANF) funds.
YVONNE CHASE, DEPUTY COMMISSIONER, EARLY EDUCATION,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT testified via
teleconference. She noted that the state received notice
from Congress that the funds were available as Congress
completed its budget. Written notification did not occur
until the first of the calendar year.
(d) The sum of $4,700,000 is appropriated from federal
receipts to the Department of Education and Early
Development for the special and supplemental
services program for the fiscal year ending
June 30, 2001.
Ms. Rehfeld that the request provides federal authorization
for Title 1 funds for special education. In response to a
question by Representative Hudson, Ms. Rehfeld noted that
there is sufficient general funds in the budget to cover the
state match for the childcare development funds.
Ms. Chase clarified that there is no state match requirement
for the new funds. There is maintenance of effort and state
match requirement for the overall program. The total is
approximately $6,436 million dollars.
EDDY JEANS, MANGER, SCHOOL FINANCE AND FACILITIES SECTION,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT noted that the
impact aid count is in the process of its finale
reconciliation and would be ready the end of the week.
DEPARTMENT OF PUBLIC SAFETY
Section 9
(4) the sum of $102,000 to the Department of
Public Safety, fish and wildlife protection;
(5) the sum of $71,400 to the Department of
Public Safety, Alaska state troopers;
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF PUBLIC SAFETY noted that the
department has two requests for addition fuel funding.
Section 14
(a) The change in funding source made through the
amendment in (b) of this section is for the fire
service-training program.
(b) Section 3, ch. 133, SLA 2000, page 47, line 5, is
amended to read:
Statutory Designated Program Receipts 949,500
Receipt Supported Services 23,900
Mr. Bischoff noted that the request would provide a fire
service training position in Fairbanks.
(c) Section 1, ch. 135, SLA 2000, page 18, lines 19 -
20, is amended to read:
Crime Lab 207,100 207,100
Equipment Replacement and Remodel (ED 99)
Mr. Bischoff noted that the crime lab has received a federal
grant of $1.250 million dollars that requires a $460
thousand dollars state match. The request would re-title an
existing crime laboratory equipment appropriation to qualify
for the match.
Section 18
Public Safety 1,095.56
Mr. Bischoff noted that the department has miscellaneous
claims of 1,095.56 thousand dollars.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Section 17
LARRY DIETRICK, PROGRAM MANAGER, PREVENTION AND EMERGENCY
RESPONSE PROGRAM, DEPARTMENT OF ENVIRONMENTAL CONSERVATION
discussed proposed amendments for sections 17(a) and (b) to
take care of day tank problems in the Northern and Central
regions. Two Department of Transportation and Public
Facilities CIP projects for underground storage tanks with
balances would be used to reappropriate the balances. The
reappropriation would be for $270 thousand dollars from the
Oil and Hazardous Substance Release Prevention and Response
Fund.
ADJOURNMENT
The meeting was adjourned at 3:43 p.m.
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