Legislature(1999 - 2000)
01/26/1999 01:35 PM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S):
Time Meeting Convened: 1:35 P.M.
Tape HFC 99 - 5, Side 1.
Tape HFC 99 - 5, Side 2.
Tape HFC 99 - 6, Side 1.
PRESENT:
x
Representative G. Davis
x
Co-Chair Therriault
x
Representative Foster
x
Co-Chair Mulder
x
Representative Grussendorf
x
Representative Austerman
x
Representative Kohring
x
Representative Bunde
x
Representative Moses
x
Representative J. Davies
x
Representative Williams
ALSO PRESENT:
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE; DAN SPENCER, CHIEF FISCAL
ANALYST, OFFICE OF MANAGEMENT AND BUDGET; JEFFREY BUSH, DEPUTY
COMMISSIONER, DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT; MIKE
IRWIN, COMMISSIONER, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS;
REMOND HENDERSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS; TOM LAWSON, DIRECTOR,
DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF COMMERCE AND
ECONOMIC DEVELOPMENT.
LOG
SPEAKER
DISCUSSION
000
Tape 5, Side 1
Co-Chair Mulder
Co-Chair Mulder convened the HFC
meeting at 1:35 p.m. He stated
that the budget for Department of
Community and Regional Affairs
would be chaired by Representative
Austerman
COMMISSIONER IRWIN
COMMISSIONER,
DEPARTMENT OF
COMMUNITY AND
REGIONAL AFFAIRS
DEPARTMENT OF COMMUNITY AND
REGIONAL AFFAIRS
Provided Committee members with a
copy of the handout #1. He spoke
to the job training program also
called the STEP program and other
programs administered by the
federal government. With Welfare
Reform, Department of Community
and Regional Affairs has assumed
many new responsibilities.
Commissioner Irwin
Continued speaking to the Division
of Energy specifically for rural
Alaska and other coastal zone
management programs.
Commissioner Irwin
Spoke to the trend in reduction of
General Fund dollars and the
departments looking to new federal
funding sources.
Commissioner Irwin
Department has cut General Fund
dollars by +.The GF dollars for
personal service costs has been
decreased more than 30%; although
the total budget has grown.
Commissioner Irwin
Highlighted the change inFY2000
budget and the ChildCare Grants
increase. (referenced pg. 3 of
handout #1.) Proposing increase to
tobacco tax to help fund this
grant program. Also, proposing,
due to increased demand add
2.7dollars to childcare budget
through the federal receipts.
Commissioner Irwin
In addition, $3.million expansion
to the Head Start Program
REMOND HENDERSON,
DIRECTOR, DIVISION
OF ADMINISTRATIVE
SERVICES,
DEPARTMENT OF
COMMUNITY AND
REGIONAL AFFAIRS
Reiterated the increase to the
Child care programs.
Co-Chair Mulder
Questioned the status of power
fund equalization
Mr. Henderson
Stated that there is taskforce
looking at that funding issue. He
noted that there is a $17 million
dollar request.
Co-Chair Mulder
Asked how much money in the PCU at
present time
Mr. Henderson
Stated that there is a projection
of $3.5 million $
Co-Chair Mulder
Asked how this worked in the
Governors Plan
DAN SPENCER, CHIEF
BUDGET ANALYST,
OFFICE OF
MANAGEMENT AND
BUDGET
Explained that there would be a
meeting with the Governor and that
there have been no recommendations
at this time.
Co-Chair Mulder
Thought this would count as less
than a budget reduction if the PCE
fund was gf
Commissioner Irwin
Noted that the recommendations
would be done by Feb 8th.
Several options before the
Governor consider straight gf
options
1019
Representative
Bunde
Asked why short falls are being
covered by empty balances
1049
Mr. Spencer
Explained that there are statutory
provisions
1072
Co-Chair Mulder
Asked how to follow that in the
book of the PCE situation.
1095
Remond Henderson
Explained how it was calculated
for the determination. There is
not complete funding for the
determination.
1133
Dan Spencer
Explained how the sources of
recurring revenue occurred.
1158
Co-Chair Therriault
Referenced the Head Start
operations and the mix indicated
1177
Com Irwin
Replied that it was the increase
would come from a federal source.
1201
Mr. Henderson
Stated that the federal funds for
the program do not come through
their department.
1226
Dan Spencer
Explained the detailed budget
books and based on the commission,
there is not a $9 million dollar
request at this time. The intent
is that the Commission will make
the recommendation.
1291
Representative G.
Davis
Pointed out theFY99 level and
those in previous years the Office
of the Governor had recommended
reductions in those areas.
1326
Representative
Austerman
Employee positions
1340
Commissioner Irwin
Explained the department's
responsibilities for the North
Star Borough that are now being
assigned as new state employees.
There are several new positions
connected with the Welfare to Work
efforts-three new positions and
support staff.
1423
Remond Henderson
Added three in the Energy Section
1440
Co-Chair Therriault
Are they all federal funds
1450
Remond Henderson
Understood that program was
entirely federal funds
1473
Co-Chair Therriault
Why returned to the department
1488
Commissioner Irwin
Explained why program came back to
the department
1510
He did not know the details of the
program
1534
Representative
Bunde
Referenced the handout and asked
about the total referenced GF
funds
1560
Commissioner Irwin
Explained revenue sharing grants
and administration of the
programs.
They are totaled together which is
helpful for the subcommittee
1604
Co-Chair Therriault
Marine Safety funding
1616
Representative
Foster
Thought that the blue ribbon
committee was not okay. He asked
why support to that committee was
so in adequate
1672
Commissioner Irwin
The Department is working on this
concern and is looking for a
solution that will also be
supported by the Governor and will
not entail General Funding.
1711
Representative
Foster
Reiterated that the department
does not have the needed sense of
urgency.
1730
Co-Chair Therriault
Pointed out that it only has 50%
of the money needed to fund it.
He did not know how to fund it
from other than a gf source.
1765
Representative
Austerman
Asked if there would be a meeting
before the subcommittee PCE meets.
1782
Commissioner Irwin
Stated that PCE would meet before.
1800
Representative G.
Davis
Day Care Assistant would be the
only place using those dollars
1818
Commissioner Irwin
From the settlement. He did not
know the total amount and how it
would be spread throughout the
entire administration budget.
1849
Co-Chair Therriault
Requested a list of that spread
HFC 99-5 Side 2
TAPE CHANGE
JEFF BUSH, DEPUTY
COMMISSIONER,
DEPARTMENT OF
COMMERCE AND
ECONOMIC
DEVELOPMENT
DEPARTMENT OF COMMERCE AND
ECONOMIC DEVELOPMENT
Spoke to attachment #3. Page two
provides a quick overview of the
budget. The request is for $54
million from all funding sources.
He pointed out the amount from the
general fund.
Mr. Bush
$30.8 million is funded from non-
gf sources.
124
Mr. Bush
Page 16 - annual pie chart and the
departments slice of the ttl
general fund budget. .39%
Mr. Bush
Approximately 2/3 of the budget
goes to the tourism budget. Trade
and Development is another piece
of the budget. Of the $7.8gf
dollars only 2.6% goes to
administrative services.
Generally, endowment earnings are
used.
267
Mr. Bush
Historical trend for the
department - Page 18. In1990, the
Department was a bread even
agency. At the time, the
department is a revenue-generating
agency. Increasing reliance from
other funding sources.
330
Co-Chair Therriault
Example of other gf funding
sources
344
Jeff Bush
Insurance premium tax; licensees
Mr. Bush
Changes to budget by reducing
costs to the Commissioner office.
Relying more on fees paid to
agency. The Commissioner is paid
for out of the general fund.
Mr. Bush
The second change is a transfer of
the Intl Trade program and still
operating in the Department of
Commerce and Economic Development
and the funds are RSA'd back.
480
Mr. Bush
Increase to the data processing
staff - change #3
Mr. Bush
Converted from the Wang to the
Oracle. The Department has many
activities that require the
requested positions. Those
positions will need a manager and
are proposing a DP manager funded
through inter agency receipts.
571
Co-Chair Therriault
Is this a new effort
578
Jeff Bush
Program receipts would have to
increase fees to cover increased
costs. It is not a direct link.
The cost of something this small
would be quite small.
625
Co-Chair Therriault
Asked the level of discussion with
the user groups
644
Jeff Bush
Replied that there are more
complaints for lack of service
that there is for a raise of fees.
License fees have been reduced
over the current year. Better
accounting system. 75%of
complaints are due to reductions;
lack of service.
745
Representative G.
Davis
Thought that the language shows
that the current computer system
will cost a lot more to operate.
790
Jeff Bush
Replied that the department is not
doing a good job in data base
management. Need resources to
reconvert the current system.
828
Mr. Bush
Banking securities adding an
examiner. The department is
experiencing a tremendous growth.
Alaska Native Corporation proxy
authority. No new staff since the
1980's and are requesting 1 staff
member to help with the growth.
Mr. Bush
The Department of Law services and
Department of Commerce and
Economic Development have to hire
one another. Department of
Commerce and Economic Development
now must hire the Department of
Law to represent that Department.
The estimate is $45 thousand
dollars would cover that cost. A
hearing officer can not represent
the Department.
1014
Mr. Bush
$40 thousand dollar increment for
a hearing officer support.
Historically, Occupational license
fees paid that position. The
auditor, the department is
requesting that banking pay its
fair share of those expenses.
1065
Mr. Bush
APUC is requesting 9 new
positions. To handle the growth
in that caseload which is 81%
above the four-year average.
1100
Co-Chair Therriault
Pointed out automatically charged
back
1113
Representative
Bunde
Charging back for services?
1140
Jeff Bush
Pointed out that the agency
collects much more than those
costs. Their receipts have
doubled in the past ten years.
Those filings have increased
dramatically. Are currently overly
collecting
1186
Representative
Williams
Commented on the fiscal gap and
the requested increases. He asked
for the Department to provide a
spending plan and possible
transfer of services to Department
of Natural Resources .
1261
Jeff Bush
Referenced the handout; Page 17
which show all the saving money
options. Reductions below those
considered would be detrimental to
the Department
1303
Representative
Williams
Data processing additions - are
they necessary
1319
Jeff Bush
1345
TOM LAWSON,
DIRECTOR, DIVISION
OF ADMINISTRATIVE
SERVICES,
DEPARTMENT OF
COMMERCE AND
ECONOMIC
DEVELOPMENT
Pointed out that there currently 5
staff serving the entire
department. The Wang system was
not Y2K compliant. The bottom
line is that the needs of the
banking, insurance people need
more info on line. Things have
changed and there are now internet
demands. Would like to have the
increments without using general
funds.
1413
Representative G.
Davis
New program is costing more to
operate. He pointed out that the
licensing and fees and the
increase and how it affects the
public. He questioned the
problem.
1465
Representative
Kohring
Questioned the comments of Rep
Williams. He asked about the
Division of Tourism.
HFC 99-6, Side 1
TAPE CHANGE
000
Mr. Bush
Replied that the Department is
expending a lot of time and energy
addressing the concern with
tourism and industry. Department
of Commerce and Economic
Development supports last years
legislation and are trying to
determine a direction to take with
the Industry.
154
Representative
Kohring
Asked if there was statutory
authority and past legislation
182
Jeff Bush
There are aspects that of that
area.
315
Mr. Bush
Continued
330
Co-Chair Therriault
Asked where the generic marketing
of the State could be cut down
370
Mr. Bush
Pointed out that the agency was
cut seven years ago eliminating
much marketing. That total budget
was $5.2 million dollars
404
Co-Chair Therriault
Noted that Princess and Holland
America market mystic of state
consolidated efforts
442
Representative
Foster
Stated that in Bush Alaska do not
have any Department of Commerce
and Economic Development
employees. He spoke against fees
for Bush Area as they put business
out of business. Do not adjust the
user fees.
600
Representative
Austerman
Added that one quarter of the
state employees have been pulled
out of rural Alaska.
650
Co-Chair Therriault
Stated that Co-Chair Mulder had
asked that he chair the Department
of Commerce and Economic
Development Subcommittee.
671
Co-Chair Therriault
Adjourned the meeting at 2:55 P.M.
HOUSE FINANCE COMMITTEE
LOG NOTES
January 26, 1999
H.F.C. 8 1/26/99
| Document Name | Date/Time | Subjects |
|---|