Legislature(1999 - 2000)
03/04/1999 09:45 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S): SB 83 Supplemental/Capital Appropriations
The following overview was taken in log note format. Tapes and
handouts will be on file with the Senate Finance Committee through the
21st Legislative Session, contact 465-2618. After the 21st
Legislative session they will be available through the Legislative
Library at 465-3808.
Time Meeting Convened: 9:45 a.m.
Tape(s): SFC-99 #45, Side A and B
PRESENT:
X
Senator Parnell
X
Senator Adams
X
Senator Torgerson
X
Senator P. Kelly
X
Senator Donley
X
Senator Green
X
Senator Leman
X
Senator Phillips
X
Senator Wilken
ALSO PRESENT: DAN SPENCER, Chief Budget Analyst, Office of
Management and Budget; KEN BISCHOFF, Director, Division of
Administrative Services, Department of Public Safety; NICO BUS,
Administrative Services Manager, Division of Support Services,
Department of Natural Resources, KATHRYN DAUGHHETEE, Director,
Division of Administrative Services, Department of Law; NANCY
SLAGLE, Director, Division of Administrative Services, Department
of Transportation and Public Safety; MARY MARSHBURN, Acting
Director, Division of Administrative Services, Department of
Revenue; BARBARA MIKLOS, Director, Child Support Enforcement
Division, Department of Revenue; WENDY REDMAN, Vice-President for
University Relations, University of Alaska; aides to committee
members and other members of the Legislature.
LOG
SPEAKER
DISCUSSION
000
Co-chair Parnell
Convened the meeting at approximately 9:45 a.m.
starting with Section 12, insurance and bond
claims.
Nico Bus
Administrative Services Manager, Division of
Support Services, Department of Natural
Resources was invited to join the committee.
Co-chair Parnell
Section 13.
Kathryn Daughhetee
Director, Division of Administrative Services,
Department of Law was invited to join the
committee.
Some monies going to pay outside counsel. It
varies with the firms.
Co-chair Parnell
What percentage has been expended to date?
Ms. Daughhetee
Will have to get back to the committee. Has
not looked at the up-to-date specifics.
Perhaps sixty to seventy percent.
Nico Bus
Section 14, Department of Natural Resources
Explained an unseasonably high work load.
Recording office could not keep up and get
documents recorded within 24 hours and returned
to the client.
Senator Wilken
Fairbanks Recorder's Office had no backlog for
the first 100 years.
Mr. Bus
Responded briefly. January 4 started new
computer system which allowed them to catch up.
Fairbanks Recorder's Office was for the first
time caught up temporarily. Palmer is
approximately six weeks behind and Anchorage is
approximately two weeks behind.
Senator Leman
Increase charge back by Department of
Administration in memo dated 12 February 1999.
Mr. Bus
Two types of charge backs. He explained how
this worked.
Co-chair Parnell
Section 15
Ken Bischoff
Director, Division of Administrative Services,
Department of Public Safety. This section
deals with Alaska State Troopers.
Section (a) decreases.
Section (b) increases
Senator Adams
Asked Mr. Bischoff for clarification of these.
Mr. Bischoff
Responded.
Senator Torgerson
Making any effort to sell?
Mr. Bischoff
Trying to make arrangements to sell. Cannot
consummate the sale in one year
Senator Torgerson
Do you have another request in?
Mr. Bischoff
Another request to replace a 50 foot vessel.
Senator Donley
Clarification of item (c).
Mr. Bischoff
Academy costs. He explained this was to train
twenty recruits.
Senator Donley
Asked what the communication costs were?
Mr. Bischoff
Briefly explained.
Senator Donley
"What happens if we don't pay this?"
Mr. Bischoff
Department of Military and Veterans Affairs
would have to absorb this or they would have to
come in for a supplemental.
Senator Donley
Referred to purchase of helicopter. What was
the plan if they did not get supplemental for
$112,000?
Mr. Bischoff
Explained this was charge for the Anchorage
helicopter. Suffered damage and needed to be
repaired.
Senator Donley
Did you get an increase in FY99 from FY 98?
Also FY 98 from FY97?
Mr. Bischoff
Does not have the information here but can
supply for the committee.
Senator Donley
The department has not received any cuts.
Mr. Bischoff
Continued to Section 20, miscellaneous claims.
$93.00 for bills they have no authorization for
prior years.
Senator Torgerson
Collections are down?
Mary Marshburn
Acting Director, Division of Administrative
Services, Department of Revenue was invited to
join the committee. She introduced Barbara
Miklos from Child Support Enforcement Division.
Senator Torgerson
How much needed for their budget and how much
passed to other Department of Health and Social
Services programs?
Ms. Marshburn
None of those dollars will be passed to any
other agencies.
Senator Torgerson
Explained that monies were being passed on to
other agencies and then themselves are coming
in for supplemental monies. CSED may have to
be dealt with in another supplemental.
Ms. Marshburn
Explained that the shortfall was unexpected.
CSED monies they collect next year will go
directly to their own budget.
Senator Green
Changes to the Federal law?
Co-chair Parnell
Called the Department of Transportation and
Public Facilities, Section 18.
Nancy Slagle
Director, Division of Administrative Services,
Department of Transportation and Public
Facilities was invited to join the committee.
Monies for Anchorage International Airport.
Potential for additional Federal dollars
associated with this project.
Subsection C title change for Anchorage
Airport.
Senator Torgerson
What is the source of funding?
Ms. Slagle
International Airport funds. Can provide
further information.
Subsection D, fiber optic cable increase. Have
dealt with this in the past by a shift in
program receipt authority within the
department. Budget structure this year does
not allow these transfers. Will take care of
it for year 2000 budget so this request will
not be seen again.
No money to cover maintenance on facility in
Valdez. Administration reached agreement with
the City of Valdez. They will take facility
over at the end of the year. Money covers
maintenance, snow removal to keep facility from
degrading. Department of Transportation has
never maintained this facility before. Was
handed this project the first of July. No
money in the 2000 budget for maintaining the
facility. This is a one-time effort.
Administration is continuing to talk to the
City of Valdez to take this over.
Senator Torgerson
Asked who made the agreement?
Ms. Slagle
Department of Administration, City of Valdez
and the Department of Transportation.
Senator Torgerson
No one had money to handle this in their
budget?
Ms. Slagle
Facility is still the property of the State.
Agreement calls for continued negotiation for
the transfer.
Senator Torgerson
"What would you do if we did not fund this?"
Ms. Slagle
The department has already expended money for
maintenance. Would have to find the money
somewhere in our budget. Otherwise would have
to board it up and close it down. It contains
the City's hospital.
Senator Torgerson
The State pays $235,000 and the City figures
this is a good deal?
Ms. Slagle
She said she was not part of the negotiations.
Senator Torgerson
Would feel more comfortable if the City of
Valdez took this facility over. Would fund
this request under those conditions.
Ms. Slagle
Subsection (g) reduction, increase in out of
state commercial vehicle permits. Fiscal note
allowed them to collect up to $525,000. Amount
received is substantially less. Truckers now
getting instate registration. Department gets
less money. Maintaining the Tok facility on 24
hour basis.
Section (h) and (I) not realizing revenues nor
expending the monies. Total impact of section
18 is reduction of $72,600 in Federal funds.
Co-chair Parnell
The Department of Transportation is slated to
take a reduction and where will they take it
from?
Ms. Slagle
Cuts would come from various parts of the
department. Tried to distribute it evenly
throughout the department, such as: there will
be less paint being purchased to stripe the
road; less salt for the roads purchased, vacant
positions left open for several months, some
roads throughout the northern region area will
not be plowed open, looking at adjusting
schedule so Columbia will stay in lay-up for
additional two weeks, administrative cuts
mostly in the area of not filling positions in
order to make it through this year.
Senator Torgerson
Re $100,000 increase for design and
construction. No corresponding decrease.
Ms. Slagle
Indicated that sections (g), (h) and (i) were
all decreases.
Senator Torgerson
Asked if these sections should not be listed in
the bill?
Ms. Slagle
Explained as best she could, however, she did
not fully understand the question.
Co-chair Parnell
Advised that Senator Torgerson and Ms. Slagle
discuss this further.
Dan Spencer
Chief Budget Analyst, Office of Management and
Budget was invited to join the committee.
(Tape #45 switched to side B at log number 590
at approximately 10:37 a.m.)
Travel and equipment reductions. Same formula
used for all departments including Department
of Transportation.
Senator Phillips
Did you use any priority?
Mr. Spencer
Used belt-tightening system. Prison system,
for instance, if guard resigns, that position
must be filled. Not just talking about
maintenance and operations.
Mr. Spencer
No belt-tightening to Department of Health and
Social Services.
Co-chair Parnell
Would like listing from departments of where
their savings are coming from.
Mr. Spencer
They do not know. He explained that the
instructions given by the Governor was that the
departments would find the way to save the
money. Some departments individually know
where the savings will come. However, other
departments will not know what positions will
become vacant or if they become vacant or will
the cuts have to come from somewhere else
within the department. There is also a hiring
freeze and individual departments must decide
whether positions can be frozen or not.
Governor has made it clear that there is a
travel cut, and hiring freeze.
Co-chair Parnell
Do the departments have this built into their
plans?
Mr. Spencer
Does not know. Most of the departments
probably do know where the cuts will come from
but no formal procedure has been set up for the
departments to follow.
Co-chair Parnell
Have tried to make plan to make real
reductions. Need more guidance from the
departments as to where they are going.
Mr. Spencer
Explained that they were talking about a budget
that is already underway and departments do not
have the lead way to make appropriate
reductions. For instance, bulk of seasonal
work has been done in some departments. Not
much time left in the fiscal year. Much
different prospect due to the lateness of the
project.
Co-chair Parnell
Requested they get plans from the departments
so they will have some idea of what the cuts
are.
Mr. Spencer
With the understanding that these are not
locked in they will be able to provide some
basic information.
Senator Phillips
Cuts seem disproportionate. Would like to see
criteria of setting up priority of cuts.
Mr. Spencer
Before numbers can be run, the fact of the
matter is that they looked at priorities, for
instance State Troopers and institutions.
Co-chair Parnell
Excused Ms. Slagle and Mr. Spencer.
Wendy Redman
Invited to join the committee. Explained
section 19.
Senator Phillips
What percentage of money spent on research
projects.
Ms. Redmond
Negotiated amount by the Federal Government.
Varies by different research institutes.
Research overhead runs approximately fifty to
sixty percent. Department of Navy does this
program. They do try to keep the rate lower
for when they try to acquire grants.
Co-chair Parnell
Asked if there was anyone left from Corrections
and Fish and Game, Law; Court System.
Senator Donley
Where is the Court system in the bill?
Co-chair Parnell
Section 20. (brief discussion as to where the
items for the Court system are listed.) Will
take this section up this evening.
Outlined the schedule for this evening. Will
try to get through Judgment and Claims.
Senator Adams
What about caucus?
Co-chair Parnell
Have changed caucus time and will be
reconvening this evening at 6:00 p.m.
Will finish overviews tonight and come back to
Disaster Relief.
ADJOURNMENT
Co-chair Parnell recessed the committee until
6:00 p.m. this evening.
SENATE FINANCE COMMITTEE
LOG NOTES
03/04/99
SFC-99 -1- 03/04/99 an
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