Legislature(2003 - 2004)
02/23/2004 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
February 23, 2004
1:40 P.M.
TAPE HFC 04 - 27, Side A
TAPE HFC 04 - 27, Side B
TAPE HFC 04 - 28, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 1:40 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Mike Chenault
Representative Eric Croft
Representative Hugh Fate
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
MEMBERS ABSENT
None
ALSO PRESENT
Jim Pound, Staff to Representative Hugh Fate; Marie Darlin,
Coordinator Of Capital City Task Force, AARP; Eric Swanson,
Director, Division of Administrative Services, Department of
Administration; Tom Lawson, Director, Administrative
Services, Department of Community and Economic Development;
Jerry Burnett, Director, Division of Administrative
Services, Department of Corrections; Karen Rehfeld,
Director, Division of Education Support Services, Department
of Education and Early Development; Eddie Jeans, Manager,
School Finance and Facilities Section, Department of
Education and Early Development; Kevin Brooks, Director,
Division of Administrative Services, Department of Fish and
Game; Laura Glaiser, Director, Division of Elections, Office
of the Lieutenant Governor; Janet Clarke, Director, Division
of Administrative Services, Department of Health and Social
Services; Kathryn Daughhetee, Director, Administrative
Services Division, Department of Law; John Cramer, Director,
Admin Services Division, Department of Military & Veterans
Affairs; Nico Bus, Acting Director, Division of
Administrative Services, Department of Natural Resources;
Dan Spencer, Director, Division of Administrative Services,
Department of Public Safety; Susan Taylor, Director,
Division of Administrative Services, Department of Revenue;
Bob Bartholomew, Chief Operating Officer, Alaska Permanent
Fund Corporation, Department of Revenue Nancy Slagle,
Director, Division of Administrative Services, Department of
Transportation and Public Facilities.
PRESENT VIA TELECONFERENCE
Cynthia Drinkwater, Assistant Attorney General,
Commercial/Fair Business Section, Department of Law,
Anchorage; MARK JOHNSON, CHAIR, REGULATORY COMMISSION of
ALASKA, VIA TELECONFERENCE, ANCHORAGE; Barbara Brink,
Director, Public Defender Agency; Vicky Backus, State
Recorder, Division of Support Service, Department of Natural
Resources; Dick Mylius, Deputy Director, Division of Mining,
Land and Water, Department of Natural Resources; Jeff
Jahnke, State Forester, Division of Forestry, Department of
Natural Resources; Gary Morrison, Director, Division of
Parks & Outdoor Recreation, Department of Natural Resources;
Peter Panarese, Acting Director, Division of Parks,
Department of Natural Resources; Josh Fink, Public Advocate,
Office of Public Advocacy.
SUMMARY
HB 15 An Act relating to establishing the Alaska No-Call
List, a data base of residential telephone
customers who do not wish to receive telephonic
solicitations; providing that the data base be
compiled at no cost to the customers; requiring
paid telephonic sellers to purchase the data base;
requiring telephonic sellers to identify
themselves; requiring telephonic solicitors who
are otherwise exempt from registration as
telephonic solicitors to file with the Department
of Law and purchase the data base; and providing
for an effective date.
HB 15 was REPORTED out of Committee a "do pass"
recommendation and with two new fiscal notes.
HB 456 An Act making supplemental and other
appropriations; amending and repealing
appropriations; making appropriations to
capitalize funds; and providing for an effective
date.
HB 456 was heard and HELD in Committee for further
consideration.
HOUSE BILL NO. 15
An Act relating to establishing the Alaska No-Call
List, a data base of residential telephone customers
who do not wish to receive telephonic solicitations;
providing that the data base be compiled at no cost to
the customers; requiring paid telephonic sellers to
purchase the data base; requiring telephonic sellers to
identify themselves; requiring telephonic solicitors
who are otherwise exempt from registration as
telephonic solicitors to file with the Department of
Law and purchase the data base; and providing for an
effective date.
REPRESENTATIVE HUGH FATE advised that Co-Chair Harris had
requested more information on the new fiscal note
accompanying Work Draft 23-LS0058\S and stated that it has a
positive impact.
Co-Chair Williams commented that the new Department of Law
fiscal note dated 2-23-04 shows an increase of $7.6 in
revenues but no expenditures.
Representative Fate moved Amendment 1. Co-Chair Harris
OBJECTED for purposes of discussion.
Amendment 1 reads:
Page 1, lines 13-14:
Delete "at least 90 days"
Insert "the minimum amount of time required by the
national do not call registry"
Page 2, lines 20-21:
Delete "in good faith"
Insert "as a result of a good faith error"
Page 7, line 14:
Delete "This chapter does"
Insert "AS 43.63.010, 45.63.015, 45.63.020, and
AS 45.63.030(c) and (d) do [THIS CHAPTER DOES]"
JIM POUND, STAFF to REPRESENTATIVE HUGH FATE, stated that he
and Representative Fate had worked closely with Cynthia
Drinkwater, Department of Law, Anchorage, on the amendments.
MARIE DARLIN, COORDINATOR OF CAPITAL CITY TASK FORCE, Alaska
Association of Retired Persons (AARP), spoke in support of
the bill. She expressed concern that the provisions in the
national do not call list would still apply, and would
extend to intrastate telemarketers. The AARP is not
concerned if the state doesn't require registration or
payment of a fee, but would prefer the telemarketers use the
national list. The AARP supports people having their right
to privacy restored and it does not oppose the amendments.
She noted that thousands of Alaskans signed up for the
national do not call list.
Mr. Pound explained Amendment 1, stating that the first of
the three changes would bring Alaska law into conformity
with federal law and regulation. The federal law had
shorter language. The second change is a technical
correction to the language to make the error in good faith,
instead of the call. The third and largest change addresses
the businesses listed in AS 45.63.80 who would be exempt
from registration requirements and fees, but would still be
required to meet the requirements of the no call list at
both the state and federal levels and be subject to the
penalties that will be established in regulation by the
Department of Law.
Co-Chair Harris removed his objection to Amendment 1.
Representative Croft asked for clarification of the third
part of the amendment, questioning if the businesses would
still be under the substantive provisions of the no call
list. Mr. Pound replied the businesses would not be
required to register or pay a fee, but could not call the no
call list.
Representative Croft asked if the businesses are mainly
charities. Mr. Pound explained that these are businesses
falling under other areas of Alaska and federal statute,
including realtors and insurance companies. The change also
corrects a technical error.
Representative Croft noted that it is a long list, and
questioned the exemption of funeral homes and insurance
agents from paying fees. Mr. Pound replied that they were
exempted in the past and it was easier to retain their
exemption.
Representative Croft referred to page 9, line 4,
subparagraph 17, asking if it refers to generic
solicitation. Mr. Pound clarified that it refers to a
company calling to set up an appointment for a
demonstration, not to sell a product.
In response to a question by Representative Croft, Mr. Pound
explained that the bill would remove the prior exemption of
the businesses from the enforceable do not call list, but
would not require fees.
CYNTHIA DRINKWATER, ASSISTANT ATTORNEY GENERAL,
COMMERICAL/FAIR BUSINESS SECTION, DEPARTMENT of LAW,
ANCHORAGE VIA TELECONFERENCE, clarified that the list of
seventeen current exemptions is in the registration portion
of the law, the Telephonics Solicitations Act, and is
separate from the do not call provision. The list is not
exempted from the do not call provision, only the
registration requirement.
In response to a question by Representative Croft, Ms.
Drinkwater stated the businesses would still purchase the
federal registry for Alaska, and a violation would be
subject to federal law and, with the passage of HB 15, state
law as well.
There being NO OBJECTION, Amendment 1 was adopted.
Representative Fate MOVED to report CS HB 15 out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
HOUSE BILL NO. 456
An Act making supplemental and other
appropriations; amending and repealing
appropriations; making appropriations to capitalize
funds; and providing for an effective date."
DEPARTMENT OF ADMINISTRATION
Section 1(a) and (b)
OPA FY 04 projected caseload and case cost growth.
Statutory Des Prgm Rcpts
$1,100.0
Section 1(c) Public Defender
FY 04 projected caseload and case cost growth.
$ 650.0
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION, explained three factors
contributing to the need for the Office of Public
Advocacy(OPA) supplemental of $$1.1 million in Section 1(a)
and (b). Last year the department received two
supplementals. The second, totaling about $357 thousand, was
not included in the base funding for the current year and as
a result, the department started out FY 04 short of funding
compared to what was needed in FY 03. In prior years, the
department received interagency receipt funding for cases of
children in the state's foster care system for an extended
period of time. That funding, totaling $300 thousand for
OPA, is not forthcoming this year, while the caseload
continues at the same level. Mr. Swanson noted that the
caseload is up this year at OPA, and felony cases, which are
typically the most expensive, have increased by 8% this
year.
Co-Chair Harris noted that supplemental requests have been
submitted for OPA and the Public Defenders' Office during 18
or last 19 years. Mr. Swanson acknowledged that the
information was correct and observed the difficulty of
projecting the need.
In response to a question by Co-Chair Harris, Mr. Swanson
noted that the $300 thousand in SDPR receipts are the result
of guardian fees charged for services. The Agency was not
aggressive in collecting these fees in past years. The
amount includes backlog fees, which were collected.
In response to a question by Representative Croft, Mr.
Swanson noted that they are requesting an additional $1.4
million. The total FY 04 management plan is $13,289,000,
which includes interagency receipts that are not funded. He
felt that $13 million would be accurate.
Representative Croft asked the proposed FY 05 level. Mr.
Swanson observed that it would be about the same as for FY
04: $13 million. Representative Croft suggested that OPA has
been purposely under-funded in past years. He maintained
that there is no reason to think the workload is going down,
and pointed out that the FY 05 level does not include the
supplemental amount.
Representative Chenault felt that further savings could be
realized and acknowledged that a supplemental may be needed.
Co-Chair Harris observed that $3 million was added in the FY
04 budget.
Mr. Swanson discussed Section 1(c), which is a $600 thousand
request for the Public Defenders Agency. He observed that
caseload is up and interagency receipts are down.
DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT
Section 2(a) Regulatory Commission of Alaska Audits
& Investigations
Additional funds for expert witness costs are required
for a) completion of Alaska Communications Systems
cases ($20.0), b) Enstar case participation ($15.0), c)
assistance on the telecom regulations proceeding
responsive to HB 111 ($20.0), d) participation in other
cases ($60.0). RCA Rcpts
$115.0
Section 2(b) Regulatory Commission of Alaska
Due to major developments in Cook Inlet and the Trans
Alaska Pipeline System, the Regulatory Commission of
Alaska's effort in regulating pipelines has
significantly increased. To provide the necessary
expertise two new positions, a range 21 Research
Analyst IV and a range 19 Utility Financial Analyst are
requested. Funds for additional office space, furniture
and equipment are also requested.
RCA Rcpts $114.6
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
COMMUNITY and ECONOMIC DEVELOPMENT, discussed Section 2(a),
which seeks $115 thousand in Regulatory Commission of Alaska
receipts to cover increased costs in the expert witnesses
program.
Co-Chair Harris noted that Sections 2(a) and 2(b) would both
use Regulatory Commission of Alaska receipts and asked if
the Commission is involved in the natural gas pipeline
proposals.
MARK JOHNSON, CHAIR, REGULATORY COMMISSION of ALASKA, VIA
TELECONFERENCE, ANCHORAGE, testified via teleconference. He
observed that the Regulatory Commission of Alaska is an
independent agency and that it would be inappropriate for
them to be engaged in negotiations.
Section 2(c) Capital
Repeal of funds to Saxman for Public Safety Bldg sec.
87, ch. 1, SSSLA 2002, pg. 138, ln. 9. Actual grant
amount is $1,074,341.
Mr. Lawson explained that the Public Safety building in
Saxman would not be built. There funds would be repealed.
Section 2(d) Power Cost Equalization
PCE Endowment fund appropriation to PCE fund to replace
the general funds requested in FY 05 budget. This is
the balance of the statutory 7% limit of the PCE
Endowment monthly average market value available for
appropriation in FY 04. An FY 05 budget amendment will
also be submitted.
PCE Endowment Fund $4,581.0
Mr. Lawson explained that the request would appropriate PCE
Endowment Funds to the PCE fund. This would deal with an FY
05 shortfall. The FY 05 governor's operating budget would
remove a $3.7 million general fund appropriation. In FY 04
budget, authorized PCE up to $12.6 million, the draw was
only $7.9 of the $12.6 million. The balance was transferred
into the Fund. The rest of the amount needed to reach $15.7
million came from one-time NPR-A grants. There is about $4.6
million left in FY 04 to be transferred from the endowment
into PCE Fund. Through the supplemental the funds would be
available in FY 05, which would provide full funding.
In response to a question by Co-Chair Harris, Mr. Swanson
clarified that the $7 million form the NPR-A grant is being
used in the PCE Fund for the current year.
Representative Croft summarized that the remaining funds
from FY 04 being transferred to FY 05 would result in
available $3.7 million in general funds, which could be used
elsewhere.
Mr. Lawson observed that no general funds are needed for FY
05.
DEPARTMENT OF CORRECTIONS
Section 3(a) Inmate Health Care
The cost of drug and scientific supplies continue to
rise annually and contractual costs have increased due
to eight catastrophic cases, each costing in excess of
$100.0. $1,100.0
Section 3(b) Out of State Contracts
Due to increases in population and subsequent
management of placement of prisoners, the out of state
contracts and related travel costs are increasing from
the budgeted 650 prisoners to in excess of 775 by the
end of FY 04. $920.0
JERRY BURNETT, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF CORRECTIONS three items including a $63 dollar
ratification for a miscoded invoice. He discussed Section
3(a), which is would fund $1.1 million for drug and
scientific supplies. He noted that costs are running higher
than projected.
Representative Stoltze asked for a summary of impacts from
the early medical parole statute. Mr. Burnett noted that
there was an estimation of three cases a year of
discretionary parole. There has been one person paroled in
the current year. The savings to department are significant.
Representative Hawker asked if the $1.1 million is the
identical amount transferred through the budget process.
Mr. Burnett said the amount is totally coincidental.
Representative Hawker discussed out-of-state contracts. Mr.
Burnett noted that the Arizona numbers increased in fall at
a rate higher than anticipated and the transfer of
additional inmates to AZ resulted in higher costs. The
department budgeted on 650 inmates; there are 702 there
today, but they don't expect to go beyond 706.
In response to a question by Representative Hawker, Mr.
Burnett observed that 21 employees were reconciled and were
placed into the budget. Twelve of these were in health care.
Co-Chair Harris asked how many inmates incarcerated out of
state. Mr. Burnett observed that there are 702 inmates in
Arizona; there are approximately 21 other placements out-of-
state.
Co-Chair Harris asked status of contract for out of state
bids. Mr. Burnett noted that an RFP was put out in
December. The proposals are being evaluated. There are
enough beds to deal with state's needs. He couldn't speak to
the price.
Co-Chair Harris expressed concern that the legislature have
an idea of the cost for out-of-state beds.
DEPARTMENT OF EDUCATION
KAREN REHFELD, DEPUTY COMMISSIONER, DEPARTMENT OF EDUCATION
AND EARLY DEVELOPMENT, provided information on the
department's requests.
Section 16(a) School Debt Reimbursement
FY 04 entitlement adjustment based on actual, down
from $37,424.1 to $32,052.0.
FY 04 Cigarette Tax revenue increased adjustment
from $28,600.0 to $30,572.2
Mr. Jeans explained that there was a reduced need, and
school debt retirement fund revenue would be replaced with
increased tobacco tax receipts.
EDDIE JEANS, MANAGER, SCHOOL FINANCE and FACILITIES SECTION,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, explained
that some municipalities did not sell bonds, which were
anticipated. There was also an increase in tobacco tax
collected.
Mr. Jeans clarified that he was speaking of the School Debt
Reimbursement Program. The program is reconciled each year.
Representative Croft observed that the funds are lapsed
general funds. Mr. Jeans agreed, but pointed out that the
actual appropriation is out of the Fund and is identified as
other funds.
Co-Chair Harris asked if schools are funded at 100% Mr.
Jeans explained that the request is at 100 percent of the
projected entitlement, which is $79 million. Mr. Jeans noted
that the majority of school debt is at 70 percent
reimbursement.
Section 4(a) Foundation
FY 04 foundation program entitlement adjustment based
on actual student count. (3,654.0)
Section 4(b) Pupil Transportation
Pupil transportation program adjustment based on actual
student count. (788.4)
Ms. Rehfeld discussed Sections 4(a) and 4(b). She noted that
these are formula driven programs.
Mr. Jeans explained that the major decrease to the
foundation program is due to fewer students. The request is
$3.6 million less than what was actually appropriated in FY
04. The Pupil Transportation Grant Program was switched from
reimburse to grants and is based on enrollement.
TAPE HFC 04 - 27, Side B
DEPARTMENT OF FISH & GAME
Section 6 Capital
Language change to FY 02 appropriation relating to
use of the proceeds from sale of vessels to also
include repair and maintenance of vessels 0.0
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF FISH AND GAME, discussed section 6. He noted
that the language change would allow the department to use
the proceeds from the sale of an older research vessel for a
replacement.
OFFICE OF THE GOVERNOR
Section 16(e) Fund Transfer
Have received additional federal grant
funds for deposit into the Election Fund. $100.0
Section 7 Elections
Additional Election Funds for improving
accessiblity to voting locations.
Election Fund $100.0
LAURA GLAISER, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF
THE LIEUTENANT GOVERNOR, reviewed Section 16(e), which would
place $100.0 in federal receipts for accessibility in the
Election Fund. Section 7 provides the authorization
Representative Stoltze asked if they would try to encourage
more parking availability. Ms. Glaiser stated that she
would check on the issue.
DEPARTMENT OF HEALTH & SOCIAL SERVICES
Section 8(a) Pioneer Homes
Transfer within H&SS to cover projected funding
shortfall as part of net-zero general fund
supplemental. $711.9
JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF HEALTH & SOCIAL SERVICES, spoke to Sections
8(a) through 8(r). She observed that the department is
proposing a delete/add supplemental based on an anticipated
$29 million shortfall. The shortfall would primarily
pertain to the Medicare program, pioneer homes and
catastrophic and chronic illness assistance. The department
would internally transfer the majority of the amount. The
request is to transfer between appropriations. Part of the
shortfall is caused by a $20 million gap in fair share
receipts. The intent is to take care of the gap so don't
have ratification in the future. There is a one time
opportunity to generate $14 million, which is outlined in
backup. The Commissioner has provided a memo, stressing
belt-tightening measures and not a desire to come to
legislature for general fund increase.
Co-Chair Harris asked if the department had implemented an
Options List on Medicaid Services. Ms. Clarke stated that
the department is looking at an options list for the FY 06
budget.
Co-Chair Harris observed that the Fair Share program has
been under litigation and questioned if the department is
supposed to implement the Options List if there is
insufficient funds. Ms. Clarke explained that the
requirement to use the Options List was repealed last year.
Representative Hawker explained that the statuted pertaining
to the Options List was repealed in SB 105. He discussed SB
105, which allows the department to look at all services
supplied.
Ms. Clarks clarified that the department's policy is to look
at other measures before eliminating services, or
eligibility groups. The department has looked at cost
containment and ways to reduce the program.
Representative Hawker stated that he shared the concerns
regarding the program costs. The department was able to
secure unanticipated federal money, which supplanted $14
million of general funds in the previous budget. The
Legislative Budget and Audit Committee asked the department
not to account for the $14 million. He stressed the need to
address and identify long-term growth containment in
Medicaid
Ms. Clarke observed that the department is committed to a
number of cost containment measures that haven't yet been
achieved. She pointed out that the department's backup
accounts for the $14 million.
Section 18(a)(3)
18(a)(3) AR22520-02,
Medicaid Services, General Funds:
$22,069,794.69; Total Funds: $22,069,794.69
Ms. Clarke noted that this section would provide
ratification for FY 02. This was the first year that the
Fair Share program was implemented.
Co-Chair Harris asked if the department was coming back for
authorization for money already spent and questioned what
would happen if the authorization was not approved. Ms.
Clarke stated that the department would have go to the
director of Office of Management and Budget.
Representative Croft questioned the current status of the
Fair Share litigation. Ms. Clarke noted that it is in the
first appeal stage. One proposal in FY 05 is almost $8
million in general fund in an effort to close the gap. The
intent is not to incur any forward debt.
Representative Joule asked if there are more pending audits.
Ms. Clarke acknowledged that the federal government has been
more aggressive in its interpretation.
Representative Joule asked the state would have to pay back
previous payments. Ms. Clarke agreed that the state could
be asked to pay amounts that were disallowed. It is an issue
that many states are concerned about.
Representative Croft asked why it would not make sense to
continue to use as much as possible while maintaining a
reserve balance.
DEPARTMENT OF LAW
Section 9 Civil Division, Deputy Attorney General
Judgments and Claims as of February 5, 2004 -
$2,825,490.66 $2,825.5
KATHRYN DAUGHHETEE, DIRECTOR, ADMINISTRATIVE SERVICES
DIVISION, DEPARTMENT OF LAW reviewed Section 9. There are 14
items. She noted that one item would be withdrawn for $15
thousand. She noted that the largest settlement was just
under $176 thousand for the destruction of a home due to the
state's involvement in the over compaction of an embankment,
which collapsed. Further discussion occurred on specific
cases.
In response to a question by Representative Stoltze, Ms.
Daughhetee discussed the marijuana initiative. She
explained that the dispute was the result of regulations
that require certain record keeping, which the
Administration did not believe the sponsors had met.
Section 10 Civil Division & Criminal Division
Technical change to sec. 60, ch. 82,
SLA 03 which appropriated $175.0 to
Department of Law, Civil Division for
outside counsel costs. The appropriation
should have been to the Criminal Division. 0.0
Ms. Daughhetee explained that Section 10 is ratification for
$375 thousand, which was incorrectly appropriated to the
Civil Division. The money should have gone to the Criminal
Division.
DEPARTMENT OF MILITARY & VETERANS AFFAIRS
Section 11(a) Homeland Security and
Emergency Services
Transfer of federal authorization from
Army Guard to Homeland Security for
increased FEMA grants $767.0
Section 11(b) Army Guard Facilities Maintenance
Transfer of federal authorization from
Army Guard to Homeland Security for
increased FEMA grants (767.0)
JOHN CRAMER, DIRECTOR OF ADMINISTRATIVE SERVICES, DEPARTMENT
OF MILITARY & VETERANS AFFAIRS explained that federal funds
were being shifted.
DEPARTMENT OF NATURAL RESOURCES
Section 12(a) Capital
FESCO Settlement for Contaminated Site
Cleanup $118,638.12
Statutory Des Prgm Rcpts $118.6
NICO BUS, ACTING DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF NATURAL RESOURCES, discussed item
12(a), which is for cleanup on the North Slope lease. The
lease holder inherited the problem as a preexisting
condition and does not want to be liable.
Section 12(b) Capital
BLM 2009 Accelerated Land Transfer -
Year 1 of a 5-year project to
significantly increase the rate of
federal land transfers to individual
Native Allottees, the ANCSA Corporations,
and the state. $1,268.0
Mr. Bus observed that Section 12(b) would accelerate the
land transfer.
Section 12(c) Capital
Denali Park Visitor Destination Access -
U.S. Park Service grant for planning
and design of new visitor facilities $600.0
Mr. Bus explained that Section 12(c) is part of the grant
for the National Park Service for planning and design of
facilities.
Co-Chair Harris observed that no state money is required for
planning, but questioned if state money is required for
building.
Gary Morse, Director of State Parks, testified via
teleconference. He clarified that full funding would come
from the federal government through the Parks Service and
the Federal Highway Administration.
Co-Chair Harris asked who would provide maintenance. Mr.
Morse observed that they are under discussions with the
MatSu Borough and the Parks Service. The Parks Service is to
receive funding for the operation of the facility, which the
state interprets to included road maintenance.
Sections 12(d) - (e) Capital
Afognak Coastal Wetlands grant for purchase of
waterfall parcel within the Perenosa Bay area of
Afognak Island
Statutory Des Prgm Rcpts $2,650.0
Mr. Bus discussed Section 12(d). The Governor vetoed an
expanded version. The request is the modified version
requested by the Governor.
Representative Croft observed that the project had been
vetoed and questioned the difference. Mr. Bus observed that
the Exxon Valdez Trustee funds were removed.
GARY MORRISON, DIRECTOR, DIVISION OF STATE PARKS, explained
that there is no Exxon Valdez Oil Spill Settlement funding
in the current request. The previous proposal had different
phases with substantial EVOS funds. He explained that $12
million was pared down to a number of phases.
Mr. Bus observed that the Governor, who vetoed the previous
legislation, supports the request.
In response to a question by Representative Hawker, Mr.
Morrison explained that phase one is non-controversial. The
request funds a stand-alone project that would not lead into
further controversy.
Section 12(f) Office of Alaska Coastal Zone Mgt.
Increased Department of Law costs for Coastal Zone
regulations $95.0
Mr. Bus explained that Section 12(f) would implement HB 91/
TAPE HFC 04 - 28, Side A
Section 18 (b)
Mr. Bus observed that the request is a ratification for fire
suppression.
DEPARTMENT OF PUBLIC SAFETY
Section 13(a) ABC Board
Enabling language to allow the department to pay a
prior year bill using the FY 04 appropriation
0.0
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, observed that FY 04 funding
would be used to pay a claim from the Anchorage Police
Department contract with the Alcohol Beverage Control Board
that was underestimated. The request would allow the entire
claim to be paid.
Section 13(b) Capital
Denali Commission grant to the Council on Domestic
Violence and Sexual Assault for domestic violence
and sexual assault shelter facility funding
$4,750.0
Mr. Spencer observed that the request would authorize pass
through funding from the Denali Commission for shelter
repair. The Denali Commission has asked the Council on
Domestic Violence and Sexual Assault to have all of the
funding allocated by July 1, 2004.
DEPARTMENT OF REVENUE
Section 14(a) Municipal Bond Bank
Increased management fees due to
increased activity.
Muni Bond Bank Rcpts $150.0
SUSAN TAYLOR, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE, explained that the request is the
result of increased activity of the Municipal Bond Bank and
would authorize additional management fees of $150 thousand.
In response to a question by Representative Hawker, Ms.
Taylor observed that the statutory limit is $500 million and
they are up to $300 million.
Co-Chair Harris questioned information on requirements by
the Bond Bank to go to Seattle for closings. Ms. Taylor
noted that some closings had occurred in Juneau and did not
know of a requirement to go to Seattle.
Section 14(b) Alaska Permanent Fund Corp.
Language clarifying that the appropriation made by
sec. 67(2), ch. 82, SLA 2003 was for inflation
proofing Perm Fund Rcpts 0.0
Section 14(c) Alaska Permanent Fund Corp.
Balance needed to inflation proof the
fund in FY 04.
Perm Fund Earnings Reserve $177,000.0
BOB BARTHOLOMEW, CHIEF OPERATING OFFICER, ALASKA PERMANENT
FUND CORPORATION, DEPARTMENT OF REVENUE, discussed Sections
14 (b) and (c). He explained that the transfer was intended
to be a prepayment of inflation proofing of the Permanent
Fund for FY 04. The Alaska Permanent Fund Corporation needs
legal clarification for the appropriation. The appropriation
needed to fully inflation proof the fund is given in Section
14 (c). The actual amount would not be available until June
1, 2004.
In response to a question by Co-Chair Harris, Mr.
Bartholomew noted that the Corporation expects a 2.6 percent
inflation rate for FY05 and a transfer of just over $600
million.
TRANSPORTATION
Section 17(a) Capital
Proceeds from the 2003 sale of the MV Barlett will
be spent on the new Prince William Sound marine
highway maintenance facility in Cordova. This and
the $900,000 authorization requested in the FY 05
capital budget will complete the project.
Marine Highway System Fund $389.5
NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC
FACILITIES, explained that the funds would accommodate a
fast ferry in Cordova. Title 23 federal funds must go back
to another Title 23 project.
Representative Croft questioned the sale amount of the
Bartlett. Ms. Slagle observed that the state received $389.5
thousand.
Ms. Slagle explained that the maintenance facility in
Cordova is $1.5 million. The capital portion was allocated
in FY04. The design is almost complete and would be
advertised in the beginning of March 2004. The rest of the
funding is federal receipts in the FY 04 budget.
Representative Hawker questioned why the request was in the
FY 04 supplemental. Ms. Slagle noted that the intent is to
begin the project in the spring. Representative Hawker
questioned why Cordova was chosen as the maintenance
facility as opposed to a community connected to the road.
Ms. Slagle did not know, but observed that believe the ferry
would not travel beyond Cordova.
Co-Chair Harris explained that Cordova would need a new
system to accommodate the fast ferry. The ferry would
terminate in Cordova on a daily basis. The department felt
that Cordova needed the economic assistance.
Section 17(b) NR Leasing and Property Management
Funds needed due to legal challenges to recent
changes in airport leasing rates in AS 17.
Receipt Supported Services $50.0
Ms. Slagle discussed section 17(b) and explained that the
request deals with legal issues stemming from implementation
of regulations relating to rural airport land leasing.
Section 17(c) CR Hwys & Aviation
Snow hauling in Anchorage. Funds budgeted in FY 04
have been exhausted due to the heavy snowfall so
far this winter. Additional costs of removing snow
from Anchorage sidewalks are included in this
request. $200.0
Ms. Slagle observed that the request would fund snow removal
in Anchorage, which received 76 inches of snow as opposed to
an average of 42.
Section 17(d) SE Hwys & Aviation
Funds needed due to legal challenges to recent
changes in airport leasing rates in AS 17.
Receipt Supported Services $50.0
Ms. Slagle observed that the request would fund $50 in
receipt support services pertaining to the best interest
findings in the airport leasing issue at the Yakatat
airport.
Section 17(e) Marine Vessel Operations
Masters, Mates and Pilots union has ratified its
contract as of January 1, 2004. In the FY 04
budget, the Legislature appropriated $60.5 to cover
a full year's monetary term cost, but six months of
the appropriation is not needed.
Marine Highway System Fund (30.2)
Ms. Slagle observed that Section 17(e) would reduce the
amount of Marine Highway authorization to reflect the
ratification of the Masters, Mates and Pilots, which was
ratified in January. This is an extension; negotiations are
still on-going.
Sections 16(b) - (d) Debt
Extend lapse to June 30, 2005 for Lake and
Peninsula Borough Chignik dock and Aleutians East
Borough False Pass harbor in sec. 32(o), ch. 83,
SLA 03, pg 71, lines 24, 25. Also reduce amounts
from 130,000 and 310,000 respectively to 118,553
and 68,176 (reduction of 253,271).
(253.3)
Ms. Slagle noted that a lapse date is being extended and the
appropriation would be reduced to the actual amount needed.
Legislation passed, which required the state to reimburse
debt service for harbor projects in certain communities. The
law requires that the communities be reimbursed in the
fiscal year following their debt service payments. Debt
service will be made later in the year, which would allow
the department to make the reimbursement in FY 05.
ADJOURNMENT
The meeting was adjourned at 3:44 P.M.
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