Legislature(1993 - 1994)
03/19/1993 01:40 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 19, 1993
1:40 p.m.
TAPE HFC 93-51, Side 1, #000 - end.
TAPE HFC 93-51, Side 2, #000 - end.
TAPE HFC 93-52, Side 1, #000 - end.
CALL TO ORDER
Co-Chair Larson called the House Finance Committee to order
at 1:40 p.m.
PRESENT
Co-Chair Larson Representative Martin
Vice-Chair Hanley Representative Navarre
Representative Brown Representative Parnell
Representative Foster Representative Therriault
Representative Grussendorf
Representative Hoffman
Co-Chair MacLean was absent from the meeting.
ALSO PRESENT
Mike Greany, Director, Legislative Finance Division; Janet
Clarke, Director, Division of Administrative Services,
Department of Health and Social Services; Jan Hansen,
Director, Division of Public Assistance, Department of
Health and Social Services; Richard Pegues, Director,
Division of Administrative Services, Department of Law;
Tracy McGill, Director, Division of Administrative Services,
Department of Revenue; Arthur H. Snowden, II, Administrative
Director, Alaska Court System; Sharon Barton, Director,
Division of Administrative Services, Department of
Administration; Frank Spargo, Director, Division of Pioneer
Benefits, Diane Barran's,Program Coordinator, Postsecondary
Education; Jeff Morrison, Director, Division of
Administrative Services, Department of Military and Veterans
Affairs, Nico Bus, Chief Financial Officer, Department of
Natural Resources; Bill Bradley, Anchorage; Paul Woerner,
Retired Officers Association; Gene Dowe, Legislative
Officer, Veterans of Foreign Wars, Laura Kelly, First Vice-
President, Community College Teachers Union.
SUMMARY INFORMATION
HB 66 "An Act relating to municipal property tax
exemptions for certain residences and to property
tax equivalency payments for certain residents;
and providing for an effective date."
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HB 66 was HELD in Committee.
HB 135 "An Act making supplemental and special
appropriations for the expenses of state
government; making, amending, and repealing
capital and operating appropriations; and
providing for an effective date."
HB 135 was HELD in Committee.
HOUSE BILL NO. 66
"An Act relating to municipal property tax exemptions
for certain residences and to property tax equivalency
payments for certain residents; and providing for an
effective date."
Co-Chair Larson announced that HB 66 would be HELD in
Committee following public testimony.
Representative Brown presented members with Amendment 1,
creating a mandatory deferral for low income persons
(Attachment 1). She noted that a memorandum from
Legislative Counsel is attached to Amendment 1. Legal
Counsel advises that it is necessary to include language to
base the optional exemption on "hardship".
In response to a question by Representative Parnell,
Representative Brown explained that $36,000 for individuals
filling jointly has been added to subsection (b). The
intent of the amendment would be to mandate that communities
allow low income citizens to defer tax payments until death.
BRAD BRADLEY, spoke in support of continued funding for the
Senior Citizen Tax Exemption. He pointed out that many
seniors could not afford to stay in the state without the
aid of support programs. He urged the Committee to maintain
current programs. He felt that rural seniors would be most
adversely affected. He suggested that the cap be lowered or
the age raised rather than to discontinue the senior citizen
property tax exemption.
PAUL WOERNER, RETIRED OFFICERS ASSOCIATION spoke in support
of continued funding for the Disabled Veterans Property Tax
Exemption. He pointed out that the Veterans Home is not
being funded. He added that the veteran's burial allowance
is also being discontinued. He stressed that eligible
veterans are 50 percent disabled. He emphasized the
difficulty that disabled veterans encounter in reaching
their full earning potential. He suggested that, "surely in
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a state that can offer upwards of a $1,000 dollars for each
resident, each year for no other criteria than that person
is a resident in the State for twelve months, surely we
don't have to offer up our disabled American veterans to get
government spending under control."
Representative Grussendorf expressed his concern that
disabled veterans are likely to be renters and would
therefore be affected by the deletion of the Renters Rebate
Program. Mr. Woerner agreed that perhaps half of the
disabled veterans live in rental property.
Representative Grussendorf stated that in making things
easier for the State and municipalities that some times "we
forget who the people were that we originally set the
program up, and the service that it provides."
Representative Martin asserted that the State has an influx
of seniors because the State's senior programs are generous.
He felt that controls must be put on the State's generosity.
Co-Chair Larson clarified that the legislation passed in FY
93 to create a Veterans Home stated that the Home would be
funded with private donations.
Representative Therriault asked if most disabled veterans
would fit under the caps provided for in Amendment 1. Mr.
Woerner thought that most disabled veterans would have
incomes under the cap.
GENE DOWE, LEGISLATIVE OFFICE, VETERANS OF FOREIGN WARS
(VFW) spoke in support of continued funding for the Disabled
Veterans Property Tax Exemption.
HB 66 was HELD in Committee.
COMMUNITY COLLEGES
LAURA KELLY, FIRST VICE-PRESIDENT, COMMUNITY COLLEGE
TEACHERS UNION expressed concern that the mission, identity,
and programs of community colleges are being systematically
destroyed within the university system. She asserted that
the University is withdrawing monetary, administrative and
programmatic support from programs that have been
traditionally associated with community colleges. She
observed that during the 1987 merger, the University
promised to protect, preserve and defend the community
college mission and programs. She alleged that the
community college program will not exist at the University
of Alaska within two years. She emphasized the importance
of two year job training programs. She urged members to
remind the University of their promise to protect the
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community college mission.
Co-Chair Larson observed that Valdez is the only remaining
community college. He asked if efforts are being made to
encourage local support of community colleges. Ms. Kelly
stated that the mission of the Community College Teachers
Union is to teach the courses. She stressed that the
University asked for the responsibility of teaching courses
that had been provided through local communities. She
asserted that the problem is not that local communities are
refusing to participate but that the University has not
lived up to the responsibility they took on.
Representative Martin noted that Valdez has dropped their
local support. He added that Bristol Bay and Ketchikan are
supporting local training programs. He felt that local
communities had "dropped the Ball" in helping the community
colleges. He felt that the Board of Regents had not
welcomed legislative participation.
HOUSE BILL NO. 135
"An Act making supplemental and special appropriations
for the expenses of state government; making, amending,
and repealing capital and operating appropriations; and
providing for an effective date."
Members were presented with an analysis of HB 135, dated
3/16/93 (copy on file).
* Sec. 1 Longevity Bonus - $1,980.7 million
dollars
This request represents the cost of increased
applicants.
Representative Hoffman noted that the amount had increased
from the original supplemental request.
SHARON BARTON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES,DEPARTMENT OF ADMINISTRATION clarified that the
actual participation level is higher than Department of
Labor statistics used for the original request.
Representative Grussendorf asked if the Department will be
requesting a supplement for FY 94. Ms. Barton stressed that
the FY 94 Operating Budget is based on the best statistical
information the Department has available.
Representative Martin asked if a monthly growth rate can be
anticipated. Ms. Barton could not answer. Representative
Parnell asked how many individuals participate in the
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program. He expressed concern that the estimated
participation level was approximately 700 applicants below
the actual level.
FRANK SPARGO, ADMINISTRATOR, LONGEVITY BONUS PROGRAM,
DEPARTMENT OF ADMINISTRATION explained that the growth of
the program has been slightly lower than the annual growth
of individuals over 65 years of age as compiled by the
Department of Labor. The Longevity Bonus Program estimated
growth was for a 5.7 percent increase based on the
Department of Labor's projections. There has been a 6.3
percent growth in the program. He clarified that there has
been an average of 223 new applications per month since
September. The program has averaged 160 -180 new
applications per month in previous years.
Representative Grussendorf asked the percentage of
applicants that have only been a resident for one year. Mr.
Spargo stated that 13 percent of the new applicants have
been in the State for less than a year and a half.
Representative Martin asked the monthly participation. Mr.
Spargo stated that there are approximately 2,300 monthly
participants.
Mr. Spargo clarified, in response to a question by
Representative Parnell, that the entire request will be
dedicated to grants.
(Tape Change, HFC 93-52, Side 2)
Co-Chair Larson noted that Longevity Bonus payments cannot
be pro-rated.
Co-Chair Larson MOVED to INCORPORATE Sec. 1 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 2 Public Defender - $383.0 thousand
dollars
This represents operating costs unfunded in the
current budget. Sec. 2 has been adjusted for in
the FY 94 Operating Budget.
Ms. Barton noted that the Office of Public Defender was
unable to meet their caseload within the appropriated
amount. Co-Chair Larson noted that the FY 94 Operating
Budget includes the FY 93 Authorized level plus FY 93
supplementals.
Co-Chair Larson MOVED to INCORPORATE Sec. 2 into HB 135.
There being NO OBJECTION it was so ordered.
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* Sec. 3 RATNET - $200.0 thousand dollars
Anticipated savings were not realized in the FY 93
Operating Budget. Competitive bids for uplink
services were delayed. Savings are anticipated in
FY 94. If the appropriation is not approved
service could be discontinued for the final two
months of fiscal year FY 93 or daily service could
be drastically curtailed.
Co-Chair Larson noted that RATNET is funded at $1.200
million dollars in FY 94 Operating Budget. If the
supplemental appropriation is approved the FY 94 funding
level will be $1,400 million dollars. Funding for FY 95 is
anticipated at $1,200 million dollars. He referred to the
proposed Bethel station. He noted that operations of the
Bethel station would not begin until FY 95.
Ms. Barton stated that the request will allow RATNET to be
fully functional through the end of FY 93.
Representative Martin asked if RATNET receives private
funds. Ms. Barton replied that RATNET does not receive
private funds. Legislation would be needed in order for
RATNET to accept private donations through fund raisers or
other methods. The Subcommittee discussed possible
legislation. No legislation has been drafted.
Ms. Barton clarified that the request would be used for
maintenance and operational costs. She clarified that
RATNET received $1,400 million dollars in FY 92, in response
to a question by Representative Hanley.
Representative Hanley expressed concern that the FY 93 level
was not achieved. He suggested that continued support
through supplementals defeat the appropriation process.
Representative Navarre suggested that supplementals should
be addressed at the beginning of the legislative year.
Ms. Barton explained that the overrun by RATNET occurred
because transponder maintenance bids were not accomplished
in order to realized the anticipated savings.
Representative Brown pointed out that the actual
appropriation for FY 92 was $1,700 million dollars.
Representative Brown stressed that $1.2 million dollar
appropriation level assumes that no repairs are needed. She
emphasized that the supplemental request will bring back the
six stations that are down.
Representative Hoffman added that there is a potential
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savings in the use of compressed channels. Representative
Brown agreed that compressed video channels represent
potential savings. She did not think that the savings could
be realized in the FY 94 Operating Budget. She added that
the State could utilize eight channels where there is
currently one channel. She noted that other public service
such as education and the university could also benefit from
compressed video channels.
Representative Hanley MOVED to REDUCE section 3 to $100.0
thousand dollar. Representative Hoffman OBJECTED. He asked
for a breakdown of costs according to operation and
maintenance.
Representative Martin felt that the stations are obligating
the State.
Representatives Grussendorf and Hoffman requested that Sec.
3 be HELD OPEN. Section 3 was HELD OPEN.
* Sec. 4 Personnel Board - $64.0 thousand dollars
Increased hearings have resulted in a shortfall.
This appropriation will pay for special counsel
and a hearing officer.
Ms. Barton explained that the request is the result of a
Executive Branch Ethics Act complaint and other hearings
before the Personnel Board. Funds are also included for the
Division of Personnel, EEO. Statewide and division
consolidations have added to the shortfall.
Co-Chair Larson MOVED to INCORPORATE Sec. 4 into HB 135.
There being NO OBJECTION it was so ordered.
Co-Chair Larson added that the FY 94 Operating Budget
contains the FY 93 level with an additional $400.0 thousand
dollars.
* Sec. 5 Office of Public Advocacy - $616.4
thousand dollars
The Office of Public Advocacy caseload has
increased by 19 percent in FY 93. Sec. 5 has been
adjusted for in the FY 94 Operating Budget.
Co-Chair Larson asked the result of reducing the
supplemental by $216.4 thousand dollars. Ms. Barton
emphasized that the Office of Public Advocacy is caseload
driven. She stated that the State of Alaska would risk
contempt of court if sufficient funding is not available.
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Representative Brown emphasized that the State has a
constitutional obligation to provide access to the criminal
justice system for people who are accused and cannot be
represented by the Public Defender. She felt that a
reduction would result in a large FY 94 supplemental.
ARTHUR H. SNOWDEN, II, ADMINISTRATIVE DIRECTOR, ALASKA COURT
SYSTEM clarified that under Administrative Rule 12, the
Public Defender and the Office of Public Advocacy are
mandated to return to the Court any cases where the
defendant is found to not be indigent. He noted that
legislation is pending in Committee to allow the court to
charge for indigent coverage.
Co-Chair Larson MOVED to INCORPORATE Sec. 5 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 6 Elected Officials Retirement - $30.4
thousand dollars
There has been an increase in former elected
officials who have elected to collect retirement.
Increased health costs are also included.
Co-Chair Larson MOVED to INCORPORATE Sec. 6 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 7 Leasing of State facilities - $642.9
thousand dollars
Ms. Barton noted that the request will pay for the lease
obligations though FY 93. Representative Martin asked why
the Department cannot more accurately anticipate lease
costs. Ms. Barton emphasized that "dozens" of leases are
rebid every year. She noted that the component is
chronically under-funded. Representative Parnell asked the
affect of not funding the component. Ms. Barton stated that
it would be difficult and chaotic. Spaces would have to be
vacated.
Co-Chair Larson MOVED to INCORPORATE Sec. 8 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 8 Prosecution - $400.0 thousand dollars
Reductions resulted in the elimination of three
prosecutors and three support staff positions.
The Governor felt that prosection activities would
be adversely affected and elected to seek
supplemental funding. Sec. 8 has been adjusted
for in the FY 94 Operating Budget.
8
RICHARD PEGUES, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION clarified, in
response to a question by Representative Brown, that the
discretionary expenditure cannot be reduced. He explained
that the Office of the Governor and Attorney General
identified that further cuts would cause the State to refuse
criminal cases that should not be declined.
Representative Brown asked if funding was removed from
Prosecution to cover other shortfalls. Mr. Pegues assured
her that funding was not transferred to other components.
Co-Chair Larson observed that Prosecution was reduced by
$47.0 thousand dollars in the FY 94 Operating Budget, from
the Governor's requested amount.
Representative Navarre asked if court dismissals are going
up as a result of under-funding or a lack of incarceration
space. Mr. Pegues could not answer the question.
Co-Chair Larson MOVED to INCORPORATE Sec. 8 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 9 Oil and Gas Litigation - $6.6 million
dollars
Co-Chair Larson asked if the Department of Law feels that
the 25/75 Permanent, Fund/General Fund split is the most
appropriate separation. Mr. Pegues stated that there was an
under allocation of cost to the Permanent Fund. Co-Chair
Larson suggested that up to $26 million dollars could have
been identified to the Fund. Only $16 million has been
appropriated. Representative Navarre felt that the
remaining amount should be deposited in the General Fund.
Co-Chair Larson requested that Sec. 9 be HELD OPEN. Section
9 was HELD OPEN. Representative Martin suggested that the
Department of Law has "milked" the State. He asked what
portion of the settlements are rebated for the State's court
costs. Mr. Pegues stated that money goes to the General
Fund or the Budget Reserve Account.
Representative Martin suggested that the Department of Law
only has four cases remaining and should need less funding.
Mr. Pegues emphasized that there are more pending tax cases.
He emphasized that the Department must determine the
disposition and value of every barrel of North Slope Oil
since the beginning of the pipeline. Members discussed
pending settlements.
Co-Chair Larson MOVED to INCORPORATE Sec. 10 into HB 135.
There being NO OBJECTION it was so ordered.
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* Sec. 10 FCC Telephone Proceeding - $280.0
thousand dollars
The request will pay legal counsel in
telecommunications proceedings. Proceedings will
decide how long distance rates will be apportioned
between outside carriers.
Mr. Pegues discussed the request.
(Tape Change, HFC 93-52, Side 1)
Co-Chair Larson MOVED to INCORPORATE Sec. 10 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 11 Subsistence Legislation - $35.0 thousand
dollars
This will pay for the enactment of subsistence
legislation which was paid for during the Second
Special Session of the Seventeenth Legislative
Session. Regulations will be drafted and
implemented to reflect the subsistence
legislation.
Co-Chair Larson MOVED to INCORPORATE Sec. 11 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 12 Judgement and Claims - $1,133.6 million
dollars
The Southeast Conference judgement award is
included in this request. Six additional
judgments were added to the original amount.
Mr. Pegues noted that two more judgments have been awarded.
He asked that Section Sec. 12 be HELD OPEN until the actual
award amount is calculated. Section 12 was HELD OPEN.
* Sec. 12.1 Regulations Attorney - $28.1 thousand
dollar
Mr. Pegues explained that the Attorney General and the Chief
of Staff agreed that a regulations attorney position be
hired as soon as possible. The position is included in the
FY 94 Operating Budget. He stressed that delays in
regulations have resulted in the usurping of state programs
by the federal government. There is currently one attorney
responsible for all of the State's legislation and
regulations.
Representative Hoffman felt that the position could wait
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until FY 94 funding was available.
Co-Chair Larson MOVED to INCORPORATE Sec. 12.1 into HB 135.
There being NO OBJECTION it was so ordered.
DEPARTMENT OF REVENUE
* Sec. 13 Income & Excise - $325.0 thousand
dollars
Unallocated reductions resulted in a backlog of
cases. Sec. 13 has been adjusted for in the FY 94
Operating Budget.
Representative Martin expressed concern with the addition of
positions.
TRACY MCGILL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES
explained that $275.0 thousand dollars of the request is for
contractual and travel of existing staff. There will be an
additional $50.0 thousand dollars for personal services
funding. No additional positions would be added. The
request would allow positions that have been held open to be
hired prior to FY 94.
Representative Martin clarified that funding for some of the
positions are not included in the FY 94 Operating Budget.
Ms. McGill explained that funding of the positions in
question are included in the Governor's amendments to the
Department of Revenue. Other positions are included in the
front section.
Representative Hanley requested that Sec. 13 be HELD OPEN.
Section 13 was HELD OPEN.
Representative Brown stressed that the request is important
to assure that potential cases are not jeopardized by the
statute of limitation. Co-Chair Larson agreed that the
Department of Revenue needs the resources to assure that the
State receives "every cent that is coming to it in a timely
manner."
Members discussed the positions as included in the FY 93
Operating Budget. Representative Brown maintained that
approval of section 13 would preserve the status quo.
DEPARTMENT OF EDUCATION
* Sec. 14 Foundation Program - $4,101.7 million
dollars
This represents an increase in enrollment in
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grades K - 12.
Co-Chair Larson MOVED to INCORPORATE Sec. 14 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 15 Postsecondary Commission - $98.5
thousand dollars
DIANE BARRAN, PROGRAM COORDINATOR, POSTSECONDARY EDUCATION
explained that the WAMI Program was short funded due to an
accounting error. A FY 92 billing was paid out of FY 93
accounts. The amount was lapsed from FY 92.
Co-Chair Larson MOVED to INCORPORATE Sec. 15 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 16 Ratification and amendment of prior year
expenditures - $0
Errors resulting from conversions in the state
accounting system in 1985 will be cleared.
Co-Chair Larson MOVED to INCORPORATE Sec. 16 into HB 135.
There being NO OBJECTION it was so ordered.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
* Sec. 17 Aid to Families with Dependent Children
(AFDC) - $3,203.5 million dollars
This request will cover shortfalls due to caseload
increases and the Cost of Living Allowance (COLA).
Legislation to suspend the COLA failed to pass the
Second Session of the Seventeenth Legislature.
Representative Hanley explained that sections 17 and 18
resulted when legislation to discontinue the COLA failed to
pass. The FY 94 budget does not include a COLA.
Legislation will be needed in order to suspend the FY 94
COLA.
Co-Chair Larson MOVED to INCORPORATE Sec. 17 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 18 Adult Public Assistance (APA) - $1,671.1
million dollars
This request will cover shortfalls due to caseload
increases and the Cost of Living Allowance (COLA).
Legislation to suspend the COLA failed to pass the
Second Session of the Seventeenth Legislature.
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Co-Chair Larson MOVED to INCORPORATE Sec. 18 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 19 Medicaid Facilities - <3,808.9 million
dollars>
This amount will return to the General Fund due to
a caseload decrease.
Representative Hanley clarified that this component has been
reduced in the FY 94 Operating Budget.
Co-Chair Larson MOVED to INCORPORATE Sec. 19 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 20 Public Assistance eligibility
Determination- $77.9 thousand dollars
There has been an increase in caseload.
Representative Hanley observed that this increase has been
added to the FY 94 Operating Budget.
Co-Chair Larson MOVED to INCORPORATE Sec. 20 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 21 JOBS Program - $195.0 thousand dollars
This request will pay for child-care costs while
Public Assistance clients are engaged in
education, training and employment related
activities.
Co-Chair Larson MOVED to INCORPORATE Sec. 21 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 22 Public Assistance Data Processing -
$174.0
This is the result of increased use of the State's
mainframe computer system as a result of increased
caseloads.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES explained that the
request will cover additional charge-back costs from the
Department of Administration due to the an increased
caseload.
Co-Chair Larson MOVED to INCORPORATE Sec. 21 into HB 135.
There being NO OBJECTION it was so ordered.
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* Sec. 23 Medical Assistance Administration -
$187.5 thousand dollars
The State has reduced medicare dollars through
increased screening. There has been an increase
in administrative costs associated with the
screening process.
Co-Chair Larson MOVED to INCORPORATE Sec. 23 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 24 Foster Care - $1,100.0 million dollars
Four hundred thousand dollars are the result of an
increased number of placements. In addition,
there has been a delay in the start of anticipated
federal programs that will subsidize state costs.
Savings will be realized in FY 94.
Representative Hanley clarified that anticipated federal
funds were not captured. He stressed that children will be
put into residential care if funds are not appropriated. He
noted that residential care is more expensive.
Ms. Clarke explained that $700.0 thousand dollar of the $1.1
million request were for anticipated social security federal
funds. The contract was delayed. The funds will be
received in FY 94.
Co-Chair Larson MOVED to INCORPORATE Sec. 24 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 25 McLaughlin Youth Center - $110.0
thousand dollars
This request is the result of an increase of
contractual costs due to the expansion of
facilities.
Co-Chair Larson MOVED to INCORPORATE Sec. 25 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 26 Post Mortem Exams - $229.6 thousand
dollars
This is the result of an increased number of court
ordered autopsies.
Co-Chair Larson MOVED to INCORPORATE Sec. 27 into HB 135.
There being NO OBJECTION it was so ordered.
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* Sec. 27 Bloodborne Pathogens - $155.9 thousand
dollars
This is the result of the implementation of
federal requirements.
Representative Hanley noted that a position included in the
supplemental request was not carried forward to FY 94.
Representative Hanley provided members with Amendment 1, to
delete "$155.900 thousand dollars" and insert "$145,300
thousand dollars", (Attachment 2). There being NO
OBJECTION, it was so ordered. Co-Chair Larson MOVED to
INCORPORATE Sec. 28 as AMENDED into HB 135. There being NO
OBJECTION it was so ordered.
Ms. Clarke explained that the Department of Health and
Social Services was cited for a situation at the Johnson
Youth Center were an employee was concerned with the
Department's inaction in implementing blood borne pathogens
regulations. The Department the citation cost is $31.5
thousand dollar.
* Sec. 26 Post Mortem Exams - $229.6 thousand
dollars
Ms. Clarke observed that the Department has calculated that
this request could be reduced to $200.0 thousand dollars.
Co-Chair Larson MOVED that Sec. 26 be reopened. There being
NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to
AMEND and INCORPORATE Sec. 26 at the amount of $220.0
thousand dollars into HB 135. There being NO OBJECTION it
was so ordered.
Co-Chair Larson MOVED to INCORPORATE Sec. 27 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 27.1 Fairbanks Youth Facility - $60.0
thousand dollar
This request is for increased operating costs.
Co-Chair Larson MOVED to INCORPORATE Sec. 27.1 into HB 135.
Representative Martin OBJECTED.
Ms. Clarke explained that the need was identified last fall.
She observed that two units were consolidated into a coed
unit in the FY 93 Operating Budget. A court case was
initiated objecting to the coed unit.
Representative Martin requested that Sec. 27.1 be HELD OPEN.
Section 27.1 was HELD OPEN.
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DEPARTMENT OF EDUCATION
Representative Brown referred to Sec. 16. She asked for
further clarification of Sec. 16. Co-Chair Larson requested
that the Committee RESCIND its action in INCORPORATING Sec.
16 into HB 135. There being NO OBJECTION, it was so
ordered. Section 16 was HELD OPEN.
Representative Brown provided members with Amendment 2,
"making a special appropriation for additional district
support for kindergarten, primary, and secondary education
programs" (Attachment 3). Amendment 2 was HELD in
Committee.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
* Sec. 28 ASMI - $196.3 thousand dollars
This request would provide a general fund match to
federal dollars for the overseas marketing
program.
Co-Chair Larson requested that Sec. 28 be HELD OPEN.
Section 28 was HELD OPEN.
* Sec. 29 ASMI - $60.0 thousand dollars FY 92
extension
This request would extend the lapse date of the FY
92 balance to be used as general fund (GF) match
for the federal grant contained in section 28.
Co-Chair Larson MOVED to INCORPORATE Sec. 29 into HB 135.
There being NO OBJECTION it was so ordered.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
* Sec. 30 Veterans Death Gratuity - $90.0 thousand
dollars
This request would respond to increased claims.
JEFF MORRISON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
clarified, for Representative Parnell, that the request
would only be used to pay the $750 dollar death gratuity.
The Department will pay the gratuity until funding is
exhausted. The Department expects that funds will be
depleted by the end of March, 1993. Grants cannot be pro
rated.
Co-Chair Larson MOVED to INCORPORATE Sec. 31 into HB 135.
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There being NO OBJECTION it was so ordered.
DEPARTMENT OF NATURAL RESOURCES
* Sec. 31 Fire Suppression - $6.0 million dollars
Three million dollars would provide funding in the
case of a fire prior to fiscal year FY 94. The
Department incurs $3.6 million dollars in fixed
costs. Unused funds would lapse into the General
Fund.
Co-Chair Larson requested that Sec. 31 be HELD OPEN.
Section 31 was HELD OPEN.
Representative Therriault provided members with an
explanation of projected FY 93 costs (Attachment 4). He
explained that the Committee has the choice of funding $2
million dollars in anticipation of a fire before the end of
the fiscal year or $1 million dollars for the initial fire
attack.
* Sec. 32 Land Selection Program - $641.0 thousand
dollars
This request is the result of the expedition of
land selection in order to meet federal deadlines.
Co-Chair Larson MOVED to INCORPORATE Sec. 32 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 33 Challenge Alaska Grants -
This request would change the scope of a 1989
capital project grant.
NICO BUS, CHIEF FINANCIAL OFFICER, DEPARTMENT OF NATURAL
RESOURCES explained that the request would change intent to
allow a project to be built rather than remodeled.
Representative Brown asked if funding for section 32 has
been spent. Mr. Bus stated that the money has been spent
from the Divisions of Land, Water and Information Resource
Management
Co-Chair Larson MOVED to INCORPORATE Sec. 33 into HB 135.
There being NO OBJECTION it was so ordered.
DEPARTMENT OF FISH AND GAME
* Sec. 34 Division of Boards - $492.0 thousand
dollars
17
This request is the result of legislation enacted
during the Special Session of the Seventeenth
Alaska Legislature. (The original fiscal note
associated with legislation passed was for $365.0
thousand dollars. There was no vehicle for
passage of fiscal notes associated with
legislation.) The Division of Boards has had an
increase in board meetings.
Representative Hanley requested that Sec. 34 be HELD OPEN.
Section 34 was HELD OPEN.
* Sec. 35 Division of Subsistence - $8.0 thousand
dollars
This request is the result of legislation enacted
during the Special Session of the Seventeenth
Alaska Legislature. The original request by the
Division of Subsistence was $55.0 thousand
dollars.
Representative Hanley requested that Sec. 35 be HELD OPEN.
Section 35 was HELD OPEN.
* Sec. 36 King Salmon Tags - $84.3 thousand
dollars
This request would make vendor payments for King
Salmon tags. The request is the result of new
legislation. The associated fiscal note failed to
be included in the FY 93 Operating Budget.
Funding will be from the General Fund.
Representative Hanley explained that a portion of the sale
of tags go to the vendor. This portion has been paid for
out of the General Fund. The receipts from the sale of the
tags go into the Fish and Game Fund. There is legislation
pending to transfer the vendor costs to program receipts.
Co-Chair Larson MOVED to INCORPORATE Sec. 36 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 37 Ratify and Amend Prior Year Expenditures
-
Old appropriations that have not been corrected in
the accounting system will be cleared.
Representative Brown requested that Sec. 37 be HELD OPEN.
Section 37 was HELD OPEN.
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* Sec. 38 Fund Shift -
This will replace unrealized federal receipts from
a 1987 CIP appropriation for Sport Fisheries,
Public Access Acquisition. Unrealized federal
receipts will be replaced by an appropriation from
the Fish and Game Fund of $134.7 thousand dollars.
The Department of Fish and Game incorrectly
identified state matching contributions.
Co-Chair Larson MOVED to INCORPORATE Sec. 38 into HB 135.
There being NO OBJECTION it was so ordered.
DEPARTMENT OF PUBLIC SAFETY
* Sec. 39 Contract Jails - $690.4 thousand dollars
This request would meet increased operating costs.
The FY 94 Operating Budget has been adjusted to
include FY 93 supplemental costs.
Representative Parnell requested that Sec. 39 be HELD OPEN.
Section 39 was HELD OPEN.
* Sec. 40 Criminal Records and Id. - $90.6
thousand dollars
This request represents an increase in system use.
New legislation has been approved requiring
applicants for teacher certification and other
activities to supply fingerprint background
checks.
Representative Brown asked why this request is included in
the supplemental and not addressed through the FY 94
Operating Budget. Section 40 was HELD OPEN.
* Sec. 41 Bloodborne Pathogens - $126.7 thousand
dollars
This request would allow the Department to comply
with requirements regarding bloodborne pathogens.
The Department will purchase disposable gear and
vaccines.
Representative Parnell requested that Sec. 41 be HELD OPEN.
Section 41 was HELD OPEN.
* Sec. 42 Prisoner Transportation - $125.0
thousand dollars
19
This request would pay for the cost of increased
prisoner transportation. Costs are primarily for
air transportation.
Representative Parnell requested that Sec. 42 be HELD OPEN.
Section 42 was HELD OPEN.
* Sec. 43 Arbitration Settlement - $101.4 thousand
dollars
This request would pay settlement costs for
arbitration involving an employee and a controlled
substance.
Co-Chair Larson MOVED to INCORPORATE Sec. 43 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 44 Civil Air Patrol - $125.0 thousand
dollars
This request is for aircraft maintenance and
operation costs.
Co-Chair Larson MOVED to INCORPORATE Sec. 44 into HB 135.
There being NO OBJECTION it was so ordered.
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
* Sec. 45 Arbitrator's Award - $539.6 thousand
dollars other funds.
This request would pay for overtime of on-site
construction engineers. The overtime dates back
to 1991 and is the result of arbitration.
Representative Navarre noted that employees must work
overtime during the summer season. He emphasized that the
request is the result of an arbitrator's award and must be
funded.
Representative Hanley asked why salaried employees must be
paid overtime. He questioned the arbitrators ruling.
Section 45 was HELD OPEN.
* Sec. 46 Dalton Highway - $1,222.9 million
dollars
This request would pay for snow removal, ice
control and maintenance related activities.
Representative Brown requested that Sec. 46 be HELD OPEN.
Section 46 was HELD OPEN.
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* Sec. 47 Ratification of Prior Year Supply and
Inventory Asset Account Expenditures
Spoilage and breakage were not accounted for in
assessing supply and inventory assets.
Representative Navarre clarified that the request is an
inventory adjustment.
Co-Chair Larson MOVED to INCORPORATE Sec. 47 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 48 Extend FY 93 Operating Lapse Date -
This request would extend the FY 93 Operating
Budget lapse date for maintenance and operations.
Co-Chair Larson MOVED to INCORPORATE Sec. 48 into HB 135.
There being NO OBJECTION it was so ordered.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
* Sec. 49 Seafood and Sanitation Activities -
$351.2 thousand dollars
This request would replace unrealized program
receipts. The Department did not receive approval
to implement regulations assessing fees until
February 19, 1993.
Representative Martin questioned section 49. Representative
Therriault reiterated that the request is the result of
unrealized program receipts. Representative Brown noted
that regulations for program receipts were difficult to
adopt. She stressed that new costs resulted from paralytic
shelfish poisoning.
Section 49 was HELD OPEN.
* Sec. 50 Paralytic Shellfish Poison Inspections -
$109.9 thousand dollars
This request is the result of PSP infected crabs.
Co-Chair Larson MOVED to INCORPORATE Sec. 50 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 51 Water Quality Standards Advisory Group -
$41.4 thousand dollars
21
This request would pay for meeting costs.
Representative Therriault requested that Sec. 51 be HELD
OPEN. Section 51 was HELD OPEN.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
* Sec. 52 Organizational Grant - $300.0 thousand
dollars
This request would pay the first year
organizational grant for the Yakutat Borough.
Representative Martin questioned section 52.
Co-Chair Larson MOVED to INCORPORATE Sec. 52 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 53 Revenue Sharing - $25.6 thousand dollars
The Department of Community and Regional Affairs
used incorrect population figures to calculate
revenue sharing for the Central Mat-Su and Greater
Palmer fire service areas.
Co-Chair Larson MOVED to INCORPORATE Sec. 53 into HB 135.
There being NO OBJECTION it was so ordered.
* Sec. 53.1 Federal Grant Repayment - $48.5 thousand
dollars
Co-Chair Larson requested that Sec. 53.1 be HELD OPEN.
Section 53.1 was HELD OPEN.
DEPARTMENT OF CORRECTIONS
* Sec. 54 Operations - $6,879.4 million dollars
Co-Chair Larson requested that Sec. 54 be HELD OPEN.
Section 54 was HELD OPEN.
UNIVERSITY OF ALASKA
* Sec. 55 UAF Snow Removal - $375.0 thousand
dollars
Co-Chair Larson MOVED to INCORPORATE Sec. 55 into HB 135.
There being NO OBJECTION it was so ordered.
ALASKA COURT SYSTEM
22
* Sec. 56 Mental Health Trust Case Law Clerk -
$19.9 thousand dollars Mental Health
Trust
This request would add a law clerk to assist Judge
Green with the backlog involved in the Mental
Health Trust Case.
Mr. Snowden pointed out that Judge Greene has been withdrawn
from all other cases.
Co-Chair Larson MOVED to INCORPORATE Sec. 56 into HB 135.
There being NO OBJECTION it was so ordered.
MULTIPLE DEPARTMENTS
* Sec. 57 Miscellaneous Claims and Stale-Dated
Warrants - $159.6 thousand dollars
This request would settle claims and billings that
are more than two years old for the Department of
Administration, Department of Health and Social
Services, Department of Labor, Department of
Public Safety, Department of Transportation and
Public Facilities, Department of Corrections and
Department of Military and Veterans Affairs.
Co-Chair Larson MOVED to INCORPORATE Sec. 57 into HB 135.
There being NO OBJECTION it was so ordered.
HB 135 was HELD in Committee.
ADJOURNMENT
The meeting adjourned at 4:00 p.m.
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