Legislature(1995 - 1996)
03/01/1995 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 1, 1995
1:40 P.M.
TAPE HFC 95 - 34, Side 2, #000 - end.
TAPE HFC 95 - 35, Side 1, #000 - end.
TAPE HFC 95 - 35, Side 2, #000 - end.
TAPE HFC 95 - 36, Side 1, #000 - end.
TAPE HFC 95 - 36, Side 2, #000 - #432.
CALL TO ORDER
Co-Chair Mark Hanley called the House Finance Committee
meeting to order at 1:40 P.M.
PRESENT
Co-Chair Hanley Representative Kohring
Co-Chair Foster Representative Martin
Representative Mulder Representative Navarre
Representative Brown Representative Parnell
Representative Grussendorf Representative Therriault
Representative Kelly
ALSO PRESENT
Nancy Slagle, Director, Division of Budget Review, Office of
Management and Budget; Mike Greany, Director, Legislative
Finance Division; Janet Clarke, Director, Division of
Administrative Services, Department of Health and Social
Services; Arbe Williams, Director, Division of
Administrative Services, Department of Labor; Guy Bell,
Director, Division of Administrative Services, Department of
Commerce and Economic Development; Nico Bus, Director,
Division of Administrative Services, Department of Natural
Resources; Ken Bischoff, Director, Division of
Administrative Services, Department of Public Safety; Ron
Lind, Director, Division of Administrative Services,
Department of Transportation and Public Facilities; Gary
Hayden, System Director, Marine Highway System, Department
of Transportation and Public Facilities; Karl Ohls,
Executive Director, Western Alaska Fisheries Development
Association, Anchorage; Nels Anderson Jr., Executive
Director, Bristol Bay Economic Development Corporation;
Eugene Asicksik, Acting Executive Director, Norton Sound
Economic Development Corporation; Ragnar Alstrom, Board
Member, Yukon Delta Fisheries Development Association; Fred
Phillip, Board Member, Coastal Villages Fishing Cooperative;
Agafon Krukoff Jr., Executive Director, Central Bering Sea
Fishermen's Association; Justine Gunderson, Secretary
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Treasurer, Pribilof Island Fishermen; Michael Irwin,
Commissioner, Department of Community and Regional Affairs;
Representative John Davies; Senator Lyda Green; Karen
Perdue, Commissioner, Department of Health and Social
Services; Del Smith, Deputy Commissioner, Department of
Public Safety; Joe Perkins, Commissioner, Department of
Transportation and Public Facilities; Wendy Redman, Vice
President for University Relations, University of Alaska;
Brian Saylor, Director, Alaska Psychiatric Institute (API),
Anchorage; Bob Baratko, Director, Division of Administrative
Services, Department of Revenue; Jerry Shriner, Special
Assistant, Office of the Commissioner, Department of
Corrections.
SUMMARY
PRESENTATION BY THE WESTERN ALASKA COMMUNITY
DEVELOPMENT
QUOTA PROGRAM
HB 137 An Act making supplemental appropriations for
operating expenses of state government for fiscal
year 1995; and providing for an effective date.
HB 137 was HELD in Committee for further
consideration.
HB 178 An Act making supplemental and special
appropriations for the expenses of state
government; making and amending capital and
operating appropriations; and providing for an
effective date.
HB 178 was HELD in Committee for further
consideration.
PRESENTATION BY THE WESTERN ALASKA COMMUNITY DEVELOPMENT
QUOTA PROGRAM
MICHAEL IRWIN, COMMISSIONER, DEPARTMENT OF COMMUNITY AND
REGIONAL AFFAIRS, explained the Community Development Quota
(CDQ) program. He remarked that the CDQ pollack program was
instituted in December, 1992. The North Pacific Fisheries
Management Council approved the CDQ program as part of the
federal government's inshore/offshore allocation of pollack.
He noted that by the time the CDQ pollack program sunsets
later this year, it will have generated more than $80
million dollars revenue for those regions and will have
created more than 800 jobs. In 1994, the Council approved a
halibut/sablefish CDQ program which will be worth $3 million
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dollars annually.
Mr. Irwin stated that the CDQ pollack program is scheduled
to sunset in December 1995 unless extended by the Council.
The Knowles Administration strongly supports continuation of
the program.
The CDQ pollack program is a federal program overseen by
three state agencies: the Department of Community & Regional
Affairs, the Department of Fish and Game and the Department
of Commerce and Economic Development. The National Marine
Fisheries Service will provide the federal oversight.
KARL OHLS, EXECUTIVE DIRECTOR, WESTERN ALASKA FISHERIES
DEVELOPMENT ASSOCIATION (WAFDA), ANCHORAGE, introduced the
directors of the CDQ programs throughout the State. He
reiterated the number of jobs which have been created
through the CDQ program for Western Alaska. The program has
generated over $40 million dollars for those regions during
the past 2.5 years. He provided the Committee with a packet
of information regarding the program. [Attachment #1].
NELS ANDERSON JR, EXECUTIVE DIRECTOR, BRISTOL BAY ECONOMIC
DEVELOPMENT CORPORATION (BBEDC), spoke to the success of the
CDQ program in his area which began in May, 1993. He
pointed out that the program has employed 194 people during
the winter, which is unprecedented, as most employment
occurs only in the summertime during the herring fishery.
He added that Oceantrawl, Inc. is the partner of BBEDC. The
corporation is currently diversifying the fishing industry
for all the communities involved. Mr. Anderson spoke to the
academic scholarships provided to local students through the
program.
JUSTINE GUNDERSON, SECRETARY TREASURER, ALEUTIAN PRIBILOF
ISLAND DEVELOPMENT ASSOCIATION (APICDA), informed the
Committee of the communities which comprise APICDA; Nelson
Lagoon, St. George Island, Atka, Nikolski, and False Pass.
The mission of APICDA is to develop stable local economies
in the communities, and to foster education, training, and
employment for local residents.
She added, APICDA's private sector harvesting partners are
Trident Seafoods Corporation, one of Alaska's largest
shoreside processing companies and Starbound Partnership.
The pollack CDQ fishing activities have resulted in little
by-catch of salmon, crab, halibut, or herring.
AGAFON KRUKOFF JR, EXECUTIVE DIRECTOR, CENTRAL BERING SEA
FISHERMEN'S ASSOCIATION (CBSFA), stated that the program
provided St. Paul $750 thousand dollars for work on the new
boat harbor. The village also generated enough money to
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become partners on a crab vessel. He added, this summer the
village anticipates beginning construction on a marine
service center. Mr. Krukoff concluded that the CDQ program
has enabled the six groups in coastal Alaska to work as
"key" participants in the fishing industry.
FRED PHILLIP, BOARD MEMBER, COASTAL VILLAGES FISHING
COOPERATIVE (CVFC), testified that CVFC's program consists
of creating employment opportunities, developing local
fisheries infrastructure and participation in the fisheries.
The recruitment program covers all seventeen villages. He
added, there are only minimal opportunities to base a
fisheries economy on. The CDQ program provides a resource
directly available to the CVFC region's villages. There are
also opportunities available in the salmon, herring and
halibut fisheries. Mr. Phillips explained that his
cooperative believes that ownership and participation as a
full-fledged company is necessary to meet the CDQ goal.
EUGENE ASICKSIK, ACTING PRESIDENT, NORTON SOUND ECONOMIC
DEVELOPMENT CORPORATION (NSEDC), said that NSEDC consisted
of fifteen communities. NSEDC's partner is Glacier Fish
Company, Inc. out of Seattle. The corporation is actively
involved in purchasing herring jointly with their partner.
The area has initiated the Norton Sound Crab Company. He
concluded that NSEDC has an education and scholarship
program and has sent and trained 138 villagers to Seward,
Alaska, and also has provided over $100 thousand dollars in
scholarships to local residents.
RAGNAR ALSTROM, BOARD MEMBER, YUKON DELTA FISHERIES
DEVELOPMENT ASSOCIATION (YDFDA), pointed out that the four
villages which make up YDFDA have an extremely high
unemployment rate. The villages consist of a young and
exploding population. There are no jobs available in that
area. The basic goal of YDFDA is to provide training and
then find work. At this time, some village people work on
factory trawlers. YDFDA has invested in building a small
boat fleet which hopes to provide the heart of the program.
YDFDA's goal is to work with a processor in the village of
Emmonak. The small boat program was begun in May, 1994 with
five boats; it is the intent that ten boats will be in line
for summer, 1995.
Mr. Ohls concluded that by the end 1993, the CDQ program
accounted for eight percent of the economy in the regions of
western Alaska. The goal of the program is to involve
western Alaskans in all aspects of the CDQ fishing industry.
Mr. Ohls acknowledged the support of the State offering his
appreciation.
Thus concluded the presentation by the Western Alaska
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Community Development Quota program.
(Tape Change, HFC 95-35, Side 1).
HOUSE BILL 137
"An Act making supplemental appropriations for
operating expenses of state government for fiscal year
1995; and providing for an effective date."
HOUSE BILL 178
"An Act making supplemental and special appropriations
for the expenses of state government; making and
amending capital and operating appropriations; and
providing for an effective date."
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF
MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, pointed out
that Section #22 request for medical assistance of
pharmaceutical for the Department's operating budget short
fall. The Governor's request amount of $871.7 thousand
dollars was zeroed out by the proposed House supplemental
appropriation.
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stressed that
$871.7 thousand dollars would be an expenditure shortfall
this year. The Medicaid system works in such a way, if the
claims are not paid this year, those claims will roll into
the next budget. It will become an automatic shortfall next
year. She added, the reduction would result in a like
amount of federal receipts creating a $1.7 million dollar
liability in FY96.
Co-Chair Hanley noted that the House proposed supplemental
appropriation funded Section #23 which would increase Indian
Health Service Medicaid in the amount of $4 million dollars
as recommended by the Governor.
KAREN PERDUE, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, responded to Section #24, Governor's amended
request in the amount of $483 thousand dollars which was
zeroed out by the House supplemental request. The requested
amount would cover the optional Medicaid services such as
emergency adult dental, eye glasses, and chiropractic
services. She suggested creating an alternative system such
as the Oregon Plan as a way to manage costs for the Medicaid
program.
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Ms. Clarke addressed Section #25, Family and Youth Services,
recommended funding by the Governor's amended request in the
amount of $310.6 thousand dollars, whereas, the House
recommended a funding level of $80 thousand dollars. Ms.
Clarke stated that the Department had anticipated requesting
additional authority for that spending through the Budget
and Audit Committee.
Ms. Clarke advised that the Department would propose a
substantial increase in the FY96 budget to include four new
probation officers.
Ms. Clarke referenced Section #26, staffing increase for the
client load at McLaughlin Youth Services, Governor's amended
request in the amount of $580.5 thousand dollars, whereas,
House recommended funding level of $460 thousand dollars.
Co-Chair Hanley pointed out that the House had agreed to the
amount requested by the Department to control the
Tuberculosis outbreak and conduct epidemiological
investigations in the amount of $342 thousand dollars as
requested by the Governor in Section #27.
Ms. Slagle pointed out Section #28 for additional funding
for API in Anchorage; although the Governor's amended
request was zeroed out by the House proposed supplemental
request. Without the appropriate match, the Alaska
Psychiatric Hospital will receive a $1.6 million dollar
reduction. The federal match would have been a 50/50
percent.
BRIAN SAYLOR, DIRECTOR, ALASKA PSYCHIATRIC HOSPITAL,
ANCHORAGE, provided the Committee with a letter from the
Alaska Mental Health Board. [Attachment #3]. He advised
the prognosis without the fund source shift would be severe.
The hospital requires $45 thousand dollars per day to
operate. The alternatives would be to reduce the scope of
the operations in order to accommodate the shortfall. The
most dramatic scenario would be to lay off 240 employees at
the hospital and curtail operations. New patients would not
be admitted after April 25th. The second option would
require all but court required treatment units to be closed.
Commissioner Perdue remarked that the course outlined by Dr.
Saylor was dramatic. She understood that the staff felt
that they had guidance from the Governor's Office to proceed
with a plan of action. The savings could not be made up in
a month. She added that with further research, the
Department could refine the approach. Representative Brown
asked who would be impacted by not funding the request. Dr.
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Saylor reported that there will be extensive planning for
those discharged, although community services have been
saturated. Without additional funds, the community can not
accept more patients. The remaining patients at the
hospital are at an intensity that exceeds the community
resource possibilities.
Commissioner Perdue expounded that every state has
responsibility to create some type of facility to house
psychiatric patients. She agreed that the role and size of
API are important questions. Representative Brown
questioned if providing such a hospital was a constitutional
obligation of the State. Commissioner Perdue stressed that
the hospital was a core function of the State.
Co-Chair Hanley remarked that the State does have a
responsibility to provide a service, although the manner in
which that service is provided could be contracted out.
Representative Brown asked if the Department had considered
placing the requested funds into community services.
Commissioner Perdue noted that possibility had not been
considered in time for the supplemental funding.
Ms. Clarke referenced Section #28, the Governor's amended
request in the amount of $331 thousand dollars, in which the
House recommended zero funding to cover the shortfall
interagency receipts for Harborview Development Center. She
remarked that this request unfunded would be more manageable
than the API request in Section #27.
Co-Chair Hanley pointed out that Section #29, judgments and
claims was funded at the same level as requested by the
Governor and the House in the amount of $410.2 thousand
dollars.
DEPARTMENT OF LABOR
Co-Chair Hanley noted that the House supplemental request
did not fund the $55.6 thousand dollar proposal from the
Department for the statewide demographic information and
analysis, Section #30.
ARBE WILLIAMS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF LABOR, informed the Committee that
without funding the proposed supplemental, an accurate
census could not occur nor would there be a base for clear
information for calculating reapportionment. There
currently exists a six month window of opportunity provided
by the federal government. The census bureau has been
informed of the possible legislative attempt to reinstate
the funding. She emphasized, with a July, 1995 funding, the
window of opportunity would be closed and that there is not
7
extra money in the Department's budget to cover the
necessary costs of the request.
Ms. Williams pointed out that the Department does not
anticipate further incremental funding requests for this
component.
(Tape Change HFC 95-35, Side 2).
Representative Martin agreed that digitizing maps would save
the State a lot of money. He emphasized how important it
was to keep update census information considering the amount
of time needed to generate the appropriate information. Co-
Chair Hanley stated that there needs to be a commitment from
the Legislature to provide the additional funding necessary
in the FY96 budget if the supplemental is funded.
Representative Martin noted that the Lt. Governor's Office
supports the funding and would participate through the
Division of Elections.
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
GUY BELL, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, stated that
Section #31 as provided by the Governor's amended request
would allocate $2.5 million dollars in order to restore
television and newspaper advertising, although, the House
zeroed out the funding request. He commented that the
request would restore the Alaska Tourism Marketing Council
budget to the FY94 funding level. He thought that the issue
would effect long term tourism for Alaskans. Co-Chair
Hanley disagreed stating that the decision had been a policy
call of the current Governor.
DEPARTMENT OF MILITARY AND VETERANS' AFFAIRS
Co-Chair Hanley referenced Section #32 noting that the House
zeroed out the Governor's amended request of $900 thousand
dollars, indicating that when the costs are known, they will
be paid.
Representative Therriault noted that the requested costs are
tied into fire suppression activity. He asked if the
request was a reendowment of the disaster fund. Ms. Slagle
explained that all but $100 thousand of that fund had been
expended. If there are any disasters resulting from spring
flooding between now and the end of the fiscal year, the
money will not be available in the Disaster Relief Fund to
handle the situation. She added, in the past, when there is
no money available to cover disasters, a lapse fund was used
to take care of the costs until the supplemental became
available. This year the problem has resulted from the
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balances of those funds being placed into the Constitutional
Budget Reserve Fund.
DEPARTMENT OF NATURAL RESOURCES
NICO BUS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF NATURAL RESOURCES, pointed out that Section
suppression activities in the fiscal year ending June 30,
1994.
Mr. Bus commented that when the budget for the fire
suppression runs out, the option exists to declare a
disaster. The first option would be to go to the Disaster
Relief Fund. In 1994, DNR received $1 million dollars from
that fund. In 1995, there were no longer funds available in
that fund.
DEPARTMENT OF PUBLIC SAFETY
DEL SMITH, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY,
spoke to Section #36, community jails, Governor's amended
request in the amount of $682.4 thousand dollars, although,
the House zeroed out the request. He commented that the
task force made recommendations addressing major concerns on
current funding of jails. The communities involved
participated with the understanding that funding would
improve once the standards had been established by the task
force. Many of the community jails have threatened that if
funding is not granted, they will close now or at the end of
the fiscal year. Mr. Smith emphasized that prisoner housing
is a State responsibility.
Representative Brown inquired if an analysis had been
performed of the cost effectiveness of maintaining those
facilities. Mr. Smith replied that the State is liable to
provide sufficient space. Currently, the prisoners are
moved at the convenience of the Department rather than
because of a necessary demand. Mr. Smith stated it was
beneficial to the State to continue funding the facilities
to house the prisoners. Without the facilities, more
prisoners would be transferred. He added, to date there has
not been a comprehensive study provided.
Representative Grussendorf reiterated that legislation has
been passed requiring jail time, at the same time contract
funding is not being adequately provided to the
municipalities. Representative Parnell reminded Committee
members that last year the Legislature funded the required
amount. He pointed out that each facility is now requesting
more funding as a result of recommendations of the task
force. He suggested addressing that concern in the FY96
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operating budget. Representative Grussendorf pointed out
that most of the communities were eased into the FY95
operating budget with the promise of supplemental funding
made by the task force. Mr. Smith agreed with
Representative Grussendorf.
Co-Chair Hanley referenced Section #37, an arbitrator's
award for the Alaska State Troopers, Governor's amended
request in the amount of $200 thousand dollars, with the
House requested amount of $191 thousand dollars.
Representative Parnell stated that the $191 thousand dollar
amount would be closer to the real cost due.
Co-Chair Hanley addressed Section #38 for support and rescue
operations for the civil air patrol, Governor's request
amount of $156 thousand dollars, whereas, the House
recommended amount was $23 thousand dollars. He noted the
amount of proposed funding by the House would cover the
insurance costs for the civil air patrol.
Co-Chair Hanley pointed out that the House recommended
providing the concealed weapons fiscal note in the amount of
half that requested by the Governor. Representative Parnell
stated that the number of positions hired has been less than
anticipated.
KEN BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, stated that the supplemental
request was based on receipt of forty applications per day.
During the past few months, the Department has received less
than thirty applications per day.
Co-Chair Hanley noted that the House proposed supplemental
request had fully funded the Narco Task Force switch in
funds in order to offset the shortfall of seized assets in
the amount of $115 thousand dollars.
Co-Chair Hanley referenced Section #66 and #67 stating that
the House zeroed out the supplemental funding request. He
stated that those requests could be addressed in the FY96
operating budget. Mr. Smith pointed out that the upgrade
would provide better fire and building codes for the Homer
and North Slope Borough jail. Co-Chair Hanley interjected
that those codes have not been met for many years and that
the increment could wait until the new fiscal year.
Representative Brown clarified that both facilities were
owned by the local municipalities.
(Tape Change, HFC 95-36, Side 1).
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
10
Ms. Slagle pointed out Section #41, Governor's amended
request in the amount of $2.17 million dollars had been
reduced by the House proposed supplemental request to $2
million dollars for snow removal for highways and aviation.
Co-Chair Hanley noted suggestions made by the subcommittee
to incorporate Sections #43 and #48, spring maintenance
program.
RON LIND, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
commented that it would help to have a guarantee that funds
not used for snow removal could then be used for spring
maintenance.
Co-Chair Hanley remarked that Sections #28 - #33 were funded
at the Governor's recommended level and carry over funds
could be used in Section #34. He added, Section #49 and #50
were zeroed out by the House supplemental request for
litigation costs. Mr. Lind stated that there currently is a
bill which will provide "ratification" for these type costs,
rather than an appropriation. Ms. Slagle advised that the
expenditures have been made by the Department of Law and
that the Legislature's approval will be required to release
funds.
Representative Grussendorf spoke to Section #52, Governor's
amended request in the amount of $739.8 thousand dollars,
whereas, the House proposed funding was zeroed out. He
emphasized that the Alaska Marine Highway is a "road" for
all Southeastern communities.
GARY HAYDEN, SYSTEM DIRECTOR, MARINE HIGHWAY SYSTEM,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, reported
that the supplemental request would cover costs related to
the first eight months of the fiscal year. Revenues
collected last year were down $500 thousand dollars from
sales. Ridership has been down this winter. Additional
service on the La Conte was provided in December and
February. He stressed that the result of not providing the
supplemental funding request will be less weeks of service
during May and June. Representative Grussendorf pointed out
that revenue would be lost by not having all vessels running
during the tourist season.
Co-Chair Foster understood that the $700 thousand dollars
was expended and removed from a reserve account. Mr. Hayden
explained at the end of the fiscal year, there will be no
balance in the reserve account. The Department will be in
deficit spending without the supplemental. Discussion
followed between Representative Foster and Mr. Hayden
regarding the reserve account.
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Co-Chair Hanley asked how the service for FY96 would be
affected without the allocation of the supplemental. Mr.
Hayden replied that service will be reduced in Southeast
Alaska to 290 days of service for the entire year.
Representative Navarre pointed out that this would be the
worst time of year to delay ferry scheduling.
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS
Co-Chair Hanley explained that Sections #53 and #54 were
zeroed out by the House supplemental funding. Section #53
would have extended the set-aside for rural development mini
grant program; Section #54 would have provided an
organizational grant for the City of Egegik.
Ms. Slagle stated that in the past, the organizational
grants were switched from the operating budget to the
capital budget. The Department of Law noted that Section
not receive the needed funding last year and recipients can
not wait for the FY96 operating budget.
DEPARTMENT OF CORRECTIONS
Representative Mulder, Chair of the Corrections
Subcommittee, referenced Section #55. The switch in funds
would reflect program receipt shortfall-prisoner phones at
the Cook Inlet Pre Trial. The Governor's amended request in
the amount of $200 thousand dollars was zeroed out by the
House proposed supplemental budget.
Representative Brown discussed that the back-up for the
request had resulted from a federal court decision. She
stated that it was not the fault of the Department, but
resulted from the Alaska Public Utilities Commission (APUC)
decision occurring at the federal court level. Ms. Slagle
agreed that the Department has been actively pursuing the
request. Due to APUC and ramifications encountered in that
situation, it was not implemented.
JERRY SHRINER, SPECIAL ASSISTANT, OFFICE OF THE
COMMISSIONER, DEPARTMENT OF CORRECTIONS, repeated that
negotiations had been in process for many years. He noted,
they currently are complete.
Representative Mulder referenced Section #56, Governor's
amended request to facilitate a transfer component from
Public Safety for Community Jails in the amount of $39.3
thousand dollars which was zeroed out by the House proposed
supplemental request.
Section #57, a proposed amount to cover the Cleary contempt
of court fines in the amount of $750 thousand dollars was
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fully funded by the House proposed supplemental funding.
Representative Martin stated that the Legislature had not
been in contempt of court. He recommended that the fee not
be paid. Representative Navarre stated that the Department
was held in contempt of court because the Legislature had
not adequately funded the needs of the Department.
Representative Mulder stated that Section #58, Governor's
amended request amount of $457 thousand dollars for
personnel legal actions was zeroed out by the House proposed
supplemental funding. He added, once the final award had
been made, the funding would be provided.
UNIVERSITY OF ALASKA
Representative Martin, Subcommittee Chair, stated that
Section #59, Governor's amended request in the amount of
$130 thousand dollars for snow and ice removal was zeroed
out by the House proposed supplemental.
WENDY REDMAN, VICE PRESIDENT FOR UNIVERSITY RELATIONS,
UNIVERSITY OF ALASKA, pointed out that the University rarely
requests supplemental funding except for snow removal. She
voiced her surprise and confusion in the declined funding.
Ms. Redman addressed Sections #68 & #69 for the Butrovich
Building panel removal and replacement. She noted that the
Governor's requested amounts had been zeroed out by the
House proposed supplemental funding. She asserted that the
building is not finished and now it is on the deferred
maintenance list. The money must be "in hand" before
ordering the panels in a timely fashion so they could be
placed this building season. To arrive on time, they must
be ordered by the middle of March.
Representative Brown questioned how much additional funding
would be needed to make the building usable. Representative
Therriault interjected that the paneling should be replaced
this year before that damage causes additional
deterioration.
(Tape HFC 95-36, Side 2).
Following discussion of Committee members regarding the snow
removal concern, Representative Kohring asked if the
individual sections of panel could create a safety concern.
Ms. Redman replied that the panels are a major concern as
they are falling off the sides of the building. The panels
were made defectively, and have since been corroding out of
the nuts keeping them in tact.
REPRESENTATIVE JOHN DAVIES commented that one of the panels
13
had fallen which caused injury to a maintenance worker. He
added that in order to avoid rainfall from coming into the
building, the top row of panels were left on the building
creating continual hazards.
DEPARTMENT OF REVENUE
Co-Chair Hanley referenced Section #64, Governor's amended
request for senior housing to match an Housing and Urban
Development (HUD) allocation level for the Alaska Housing
Finance Corporation (AHFC) in the amount of $1.8 million
dollars. This amount was zeroed out by the House proposed
supplemental funding. Ms. Slagle explained that there is a
timing constraint for AHFC on the availability of those
funds. That match money is required for an ongoing project
in Barrow and Saxman. The federal money will not be
available for one year. Co-Chair Hanley stated that $8
million dollars had been funded for the project last year.
BOB BARATKO, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE, explained that AHFC had based that
request on an estimate provided by HUD. HUD did not have
it's final numbers for the State until after the budget was
approved for AHFC. After the $8.2 million dollar budget was
approved, HUD refined the numbers and came up with an
additional funding that the State would need to provide the
match.
Representative Martin recommended the request be a part of
the FY96 Capital Budget. Mr. Baratko advised that the funds
were needed now in order to match funding time, stating that
it would take time to allow for the construction.
Representative Brown advised that AHFC was under the
Executive Budget Act and that they should receive approval
to access federal dollars. She urged that the request be
considered. Representative Kohring supported the intent of
AHFC and funding that section.
DEPARTMENT OF PUBLIC SAFETY
Ms. Slagle referenced Section #65, Governor's amended
request in the amount of $41.6 thousand dollars to replace
the roof at Civil Air Patrol (CAP) Merril Field hangar.
Funding had been zeroed out by the House proposed
supplemental request. Representative Brown asked if the
State owned the space or if CAP leased the facility. Ms.
Slagle replied that CAP owned the facility, and pointed out
that there were safety hazards by not providing the work.
ADJOURNMENT
The meeting adjourned at 5:05 P.M.
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