Legislature(1995 - 1996)
01/25/1995 01:35 AM 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
JANUARY 25, 1995
1:35 P.M.
TAPE HFC 95 - 5, Side 2, #000 - end.
TAPE HFC 95 - 6, Side 1, #000 - end.
TAPE HFC 95 - 6, Side 2, #000 - #213.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:35 P.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Kelly
Representative Grussendorf Representative Therriault
Representative Parnell was not present for the meeting.
ALSO PRESENT
Karen Perdue, Commissioner, Department of Health and Social
Services; Janet Clarke, Director, Administrative Services,
Department of Health and Social Services; Gene Burden,
Commissioner, Department of Environmental Conservation; Len
Verrelli, Air Quality Management Section, Department of
Environmental Conservation; Tom Cashen, Commissioner,
Department of Labor; Arbe Williams, Director, Division of
Administrative Services, Department of Labor; Adjutant Major
General Jake Lestenkof, Commissioner, Department of Military
& Veterans Affairs; Jeff Morrison, Director, Division of
Administrative Services, Department of Military and Veterans
Affairs; Mike Greany, Director, Legislative Finance
Division; Representative John Davies; Representative Tom
Brice; Representative Gene Kubina; Representative Irene
Nicholia; Representative Ed Willis.
SUMMARY
AGENCY OVERVIEWS:
Department of Environmental Conservation
Department of Health and Social Services
Department of Labor
Department of Military and Veterans Affairs
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(*Copies of log notes, meeting tapes and handouts are on
file with the Legislative Finance Division. Contact #465-
3795).
Log DISCUSSION
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Committee meeting to order at 1:35 P.M.
ENVIRONMENTAL CONSERVATION (DEC), provided a
brief overview of the Department. The intent
of DEC is to protect public health from
environmental threats, and to conserve,
protect and improve Alaska's environment for
present and future generations.
Commissioner Burden provided the Committee
with a handout. [Copies on file - Attachment
#1].
has five areas of responsibility.
assures wholesome fish, meat, and dairy
products for consumers and enforces
basic standards of sanitation in public
facilities.
ensures compliance with air, land and
water pollution laws to protect public
health and the environment.
Operation Division which provides
financial and technical assistance to
local communities for construction and
operation of water, sewer and solid
waste projects.
Division which improves the state's
capability to prevent, respond to, and
clean up pollution from oil and
hazardous substances.
Services Division which provides overall
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financial, employee and informational
services to the public and within the
Department.
budget was adequately funded to address the
needs of the small communities.
DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
noted that the Department is investigating
ways to compensate for budget shortfalls.
Grussendorf and Mr. Verrelli regarding the
Department's responsibility in the prevention
of shellfish poison.
percent increase to the Solid Waste
Management component of the budget. Mr.
Verrelli explained that recent cuts have
stripped the program's ability to operate in
compliance with the EPA standards.
proposed budget has not been fully evaluated
and that the Department would appreciate
broader recommendations from the Legislative
body. Mr. Verrelli explained most increases
to the DEC budget resulted from federal
mandates.
addressing the proposed budgetary increase to
the DEC budget.
Department had existed as an independent
entity. Commissioner Burden replied since
1972. Representative Kelly pointed out that
the DEC budget began to increase in 1990 and
has not returned to the pre-spill level.
requires a maintenance effort to maintain
spill response. The bulk of those funds are
federally received.
DEC currently has responsibilities which are
not fully functioning because of budget
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cuts. He recommended a policy call to
discontinue those programs.
Environmental Conservation was completed.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
COMMISSIONER, DEPARTMENT OF MILITARY &
VETERANS AFFAIRS (DMVA), explained the
components of the Departments proposed
budget.
1. National Guard - A large investment for
the State.
2. Emergency Services
3. Responsibility to Veterans Affairs. he
pointed out the total number of veterans
in Alaska is 68,000.
planned to continue funding the youth corp.
Major General Lestenkof noted it was a
program which was working well and which
received total funding through the federal
government.
million dollar increase to the Disaster
Relief Fund.
ADMINISTRATIVE SERVICES, DEPARTMENT OF
MILITARY AND VETERANS AFFAIRS, advised that
the $12 million dollars consisted of $3
million dollars general funds and $9 million
dollars federal funds. These funds are
allocated for anticipated disasters.
regarding forward funding of the DMVA budget.
Discussion followed among Committee members
and Mr. Morrison addressing that concern.
National Guard personnel had changed over the
years.
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continues to be a slow drop rate. The
manning level for Alaska has not yet been
determined although he suggested that the
level should stabilize soon. Federal
funding is determined by the strength and
number of units per state.
Military and Veterans Affairs was completed.
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
HFC 6 - 1 KAREN PERDUE, COMMISSIONER, DEPARTMENT OF
HEALTH AND #000 SOCIAL SERVICES (DHSS),
acquainted herself to the
Committee and explained the
mission of the State of Alaska
Department of Health and
Social Services: To promote
and protect the physical,
emotional, social and economic
well-being of Alaskans so that
each person can be as self-
sufficient as possible.
of volunteerism in communities throughout the
State. She added that federal funds comprise
40% of the proposed DHSS budget.
Representative Martin's queries regarding
single pay health insurance explaining that
it would provide coverage for every person in
the State. The plan will move forward
slowly, she thought taking many years to come
to full fruition.
regarding the excelarated migration of low-
income persons to Alaska. Commissioner
Perdue thought that the Alaska Permanent Fund
and the Longevity Bonus might encourage the
movement North.
budgetary status of the proposed alcohol and
drug abuse component. Commissioner Perdue
emphasized that alcohol is the most pervasive
problem in Alaska and results in continuation
of rising costs to all departments. She
added, the proposed Hickel Administration
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budget sustains status quo funding for that
component.
Commissioner Perdue and Committee members
regarding welfare reform intentions.
Commissioner Perdue noted that this concern
was a high priority for Governor Knowles and
that he has established a six member task
force to identify agency resources in order
to increase self sufficiency in those persons
receiving Aid to Families and Dependant
Children (AFDC).
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, acknowledged that there would be
large changes to the welfare system, although
emphasized that 95% of the Department rules
are established by federal mandates.
with DHSS promising more services without
increasing the budget. Commissioner Perdue
reminded the Committee that all solutions
will cost the State money.
Brice's question regarding interdepartments
working through AFDC, DHSS and child support
distribution and payment through the
Department of Revenue (DOR).
encouraging more volunteer services in agency
work to help solve budget costs.
concluded their FY96 agency overview.
DEPARTMENT OF LABOR
LABOR, provided the Committee with a handout.
[Copies on file - Attachment #3]. The
mission of the Department of Labor as
established in Title 23 is to foster and
promote the welfare of the wage earners in
the State, improve their working conditions
and advance their opportunities for
profitable employment.
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Knowles recommended that positions not be
filled unless they were essential. He added,
there would be a reclassification of certain
range scale levels.
Commissioner's Office and four divisions:
1. Administrative Services Division
2. Employment Security Division
3. Labor Standards & Safety Division
4. Worker's Compensation Division
fund process and receipts.
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR,
advised that the majority of those funds are
reinvested into that program.
should be made across the board rather than
to individual components. Discussion
followed among Committee members regarding
that concern.
with inter-department duplication of
occupational safety services. Ms. Williams
stressed that the State OSHA program is not a
duplication of the federal one. The Knowles
Administration is looking for further cost
reductions to the budget for the Department.
the workmen's compensation increase for small
businesses. Representative Navarre pointed
out that the changes made to that program in
1988 have been detrimental to the small state
employees and employers.
HFC 6 - 2 Representative Therriault agreed that the
current #000 workmen's compensation system does
not appear to be working for either
the employee or employer. He
pointed out the continued abuse of
that system.
medical costs associated with the problems of
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the current workmen's compensation system.
Representative Mulder informed Committee
members of the Ad Hoc Task Force appointed by
Governor Knowles to address these concerns.
agency overview.
ADJOURNMENT
The meeting adjourned at 3:10 P.M.
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