Legislature(2003 - 2004)
02/12/2003 02:36 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 12, 2003
2:36 PM
TAPE HFC 03 - 18, Side A
TAPE HFC 03 - 18, Side B
CALL TO ORDER
Co-Chair Harris called the House Finance Committee meeting
to order at 2:36 PM.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Eric Croft
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Gary Stevens
Representative Bill Stoltze
Representative Jim Whitaker
MEMBERS ABSENT
None
ALSO PRESENT
Tom Irwin, Commissioner, Department of Natural Resources;
Kevin Jardell, Assistant Commissioner, Department of
Administration; Dan Spencer, Director, Division of
Administrative Services, Department of Administration;
GENERAL SUBJECT(S):
The following overview was taken in log note format. Tapes
and handouts will be on file with the House Finance
Committee through the 23rd Legislative Session, contact 465-
2156. After the 23rd Legislative Session they will be
available through the Legislative Library at 465-3808.
LOG SPEAKER DISCUSSION
DEPARTMENT OF NATURAL RESOURCES
000 TOM IRWIN, Introduced staff.
COMMISSIONER,
DEPARTMENT OF
NATURAL RESOURCES
051 Commissioner Irwin Expressed support for the Governor's
policies. Emphasized the need for a vital
healthy resource economy to generate new
wealth.
249 Commissioner Irwin The mission is to develop, conserve, and
maximize the use of Alaska's natural
resources consistent with the public
interest.
330 Commissioner Irwin Noted that there are seven divisions in
the Department of Natural Resources.
422 Commissioner Irwin Discussed the issue of investment vs.
spending. Net present value will be
considered in order to set priorities.
513 Commissioner Irwin Stressed the obligation to do the correct
thing for the State. If we are not
spending money, we must be sure that we
are investing in the State.
613 Commissioner Irwin Maintained that the Department would be
run with integrity and honesty. He
stressed that they will operated
professionally with teamwork.
819 Commissioner Irwin Complimented the legislature for it's
work on missions and measures and
emphasized that priorities with sound
business judgment allows a mark to be
set.
935 Commissioner Irwin Acknowledged the fiscal climate but
emphasized the need to "do it right".
1028 Co-Chair Harris Observed that part of the political
debate revolved around park closures. He
questioned if the intent is to manage the
budget in order to keep all parks open.
1116 Commissioner Irwin Responded that the parks have been
prioritized. They are also looking at the
use of volunteers. He acknowledged that
80 percent of the visitors are Alaskans.
He explained that savings do not occur
from closing random unconnected parks
because regional rangers cannot be
deleted. The Department is looking into
the issue.
1325 Co-Chair Harris Stated his support for keeping all parks
open regardless of what means are used.
1400 Co-Chair Harris Referred to the Division of Agriculture
and expressed concern that the Division
would become irrelevant if combined with
another division.
1507 Commissioner Irwin Clarified that he had reviewed the audit
and has received opposing opinions. He
noted that he would be in Anchorage to
meet on the issue February 14.
1616 Representative Commended the Department's missions and
Stevens measures. He referred to the transfer of
other divisions to the Department.
1720 Commissioner Irwin He stressed that the best of the best
from fish and game, habitat, law and
other areas in DNR have meet on the issue
of making permitting more efficient. He
qualified his remarks with the fact that
he cares about the environment. The goal
is for consistency and efficiency.
1910 Commissioner Irwin Observed that research is coming in with
the Division of Habitat. Referred to the
Division of Governmental Coordination and
emphasized that it is the start of a lot
intensive hard work with a lot of good
people.
2030 Commissioner Irwin The intent is to make the system work for
the people of Alaska.
2048 Representative Questioned asked if the executive branch
Stoltze is committed to RS 2477.
2122 Commissioner Irwin Stressed that the State has the right to
lands and will work to ensure it.
2203 Representative Expressed support for the commissioner.
Whitaker
2336 Representative Joule Questioned if the voice of the rural
community would be diminished by the
changes incorporated in the Governor's
Executive Order.
2442 Commissioner Irwin Assured him that the voices would be
heard. The Governor has had
representatives in the northern region.
The EO transferring the Coastal Zone
Management Program was critical for
efficiency. He maintained that the
transfer brings efficiencies.
2546 Representative Joule Referred to the Economic summit in the
North Slope Borough and Northwest Arctic
Borough. He emphasized that economic
development would play a large role.
2647 Commissioner Irwin Related that it is important that he be
part of the communication.
2733 Commissioner Irwin Spoke in support of pursuing mining
projects.
2807 Co-Chair Harris Emphasized the importance of projects
that put rural Alaskans to work. He
referred to the Division of Forestry, any
idea what the Division would do to
enhance forest products.
2843 Commissioner Irwin Acknowledged that jobs have been lost in
the forest industry. He stated that he
would focus on longer contracts (10
years) to allow return on capital
investments. Spoke to the Tongass
National Forest.
DEPARTMENT OF ADMINISTRATION
3126 KEVIN JARDELL, Introduced Department staff. He observed
ASSISTANT that the Department of Administration is
COMMISSIONER, a collection point for agencies that have
DEPARTMENT OF no other place.
ADMINISTRATION
3306 Mr. Jardell Noted that the Department provides
services to other state agencies and the
public and serves as the administrative
arm for a number of different commissions
and offices.
3407 Mr. Jardell Noted that there are 1,400 full-time
employees and the FY 03 budget was over
$300 million, with 20 separate funding
sources, have of which is general fund.
He discussed the eclectic role of the
Department.
3439 DAN SPENCER, Reviewed functions of the Department. He
DIRECTOR, DIVISION observed that the majority of non-
OF ADMINISTRATIVE permanent staff is in the pioneer homes.
SERVICES, DEPARTMENT He added that the Division of Motor
OF ADMINISTRATION Vehicles has offices all over the State.
3705 Mr. Spencer Observed that there are a number of
entities under the Department, which
provide direct public services. There are
also services that apply to state
agencies, but also provided public
services such as the Information
Technology group and the Division of
Retirement and Benefits.
3833 Mr. Spencer Observed that the Department also runs
the state of Alaska's finances and labor
relations and provides centralized
recruitment.
3904 Mr. Spencer Discussed the Division of Risk
Management.
3941 Co-Chair Williams Asked what has occurred on the wide area
network and the increase in charges to
state agencies.
4039 Mr. Spencer Explained that the issue involves a
partnership with ACS. Alaska is the first
state to take all of its
telecommunication needs to a private
vendor. There is a one-year
implementation period. It is a
complicated operation, which involves
bringing multiple vendor billings under
one roof.
4154 Co-Chair Harris Referred to the information technology
system. He questioned if a lease would be
offered for a new proposal.
4348 Mr. Spencer Explained that $600 thousand was
appropriated in the previous year for an
evaluation and needs assessment for
replacement options for payroll system.
The Department expects an evaluation of
the various options and policy choices by
July 1, 2003.
4439 Representative Referred to rising health care costs.
Stoltze
4520 Mr. Spencer Noted that health care costs are part of
the contract negotiations.
4621 Representative Referred to the privatization of the
Stoltze Division of Motor Vehicles (DMV) and
questioned if more would be done.
4648 Mr. Jardell Noted that the Commissioner has directed
staff to identify efficiencies.
TAPE HFC 03 - 18,
Side B
4652 Mr. Jardell Continued discussions on efficiency in
the DMV.
4633 Representative Noted that the State owns a number of
Stoltze buildings and questioned if there were
sufficient space to relocate the
legislature
4620 Mr. Jardell Could not answer the question.
4607 Representative Joule Observed that there is a DMV office in
Kotzebue and questioned if there are
contract offices in other rural areas.
4537 Mr. Spencer Responded that there are other
organizations that contract with the
State, but could not answer with
specifics.
4527 Representative Joule Observed that cuts are being proposed and
questioned if they have discussed
reductions to public broadcasting.
4404 Mr. Jardell Responded that the instructions are to
evaluate programs. Everything is being
looked at. The importance of broadcasting
to rural Alaska will be considered.
Nothing is completely off the table.
4318 Representative Joule Pointed out that cuts have already
occurred. Stressed that Alaskans pay a
large portion of their way in regards to
public broadcasting.
4231 Representative Referred to the health of the retirement
Stevens system.
4121 Mr. Spencer Acknowledged that employer contributions
have increased. There is a normal
adjustment based on the actuarial. The
goal is to have the programs funded 100
percent.
4029 Representative Noted that the situation is partially out
Stevens of the state of Alaska's control due to
the health of the stock market.
ADJOURNMENT The meeting was adjourned at 3:35 PM
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