Legislature(1999 - 2000)
04/20/1999 10:10 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
MINUTES SENATE FINANCE COMMITTEE April 20, 1999 10:10 A.M. TAPES SFC-99 #99, Side A & Side B SFC-99 #100, Side A & Side B SFC-99 #101, Side A CALL TO ORDER Co-Chair Parnell reconvened the meeting at approximately 10:10 a.m. PRESENT Co-Chair Sean Parnell, Co-Chair John Torgerson, Senators Al Adams, Dave Donley, Lyda Green, Pete Kelly, Loren Leman, Randy Phillips, Gary Wilken. Also Attending: DAVID TEAL, Director, Division of Legislative Finance; JANET CLARKE, Director, Division of Administrative Services, Department of Health and Social Services. SUMMARY INFORMATION SB 83 & HB 50 & HB 51 SB 83-SUPPLEMENTAL/CAPITAL APPROPS HB 50-OPERATING BUDGET APPROPRIATIONS HB 51-MENTAL HEALTH APPROPRIATIONS DEPARTMENT OF ADMINISTRATION ADMIN #11. Senator Phillips MOVED to adopt DOA #11. He commented that the amendment would add $296,800 dollars to the Citizen Foster Care Review Panel and would delete that amount from the Public Defender's Office. Senator Adams OBJECTED. Senator Adams MOVED an amendment to the amendment which would remove funding from the Leasing BRU within the Department of Administration reducing the number of State employees. Senator Wilken commented that the Foster Care Review panel needs to be expanded and better funded. Co- Chair Torgerson OBJECTED. A roll call vote was taken on the motion to amend the amendment. IN FAVOR: Adams, Leman OPPOSED: Donley, Green, Kelly, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (2-7). A roll call vote was taken on the original amendment. IN FAVOR: Donley, Green, Kelly, Leman, Phillips OPPOSED: Wilken, Parnell, Torgerson, Adams The MOTION PASSED (5-4). DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT DCED #5. Co-Chair Torgerson MOVED to adopt DCED #5. He explained that the amendment would replace Front Section #1 which did not include all the funds including the program receipts coming into the Division of Occupational Licensing. There being NO OBJECTION, DCED #5 was adopted. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS DCRA #2. Co-Chair Torgerson noted that he would WITHDRAW DCRA #2. DCRA #3. Senator P. Kelly MOVED to adopt DCRA #3. He explained that the amendment would provide a $200 thousand general fund dollars net to the Division of Municipal and Regional Assistant so that the Rural Energy (RUBA) program could continue. The amendment would delete $200 thousand general fund dollars from the Rural Energy program and would then insert $400 thousand general match fund dollars to the Local Government Management component. That amount would continue to qualify the State for a federal fund match. Senator Donley OBJECTED. Senator P. Kelly reminded the Committee that the number was still under the cap. Senator Donley understood that amount to be a mandatory match. He inquired if there was an additional source of funds for the match. Senator Donley REMOVED his OBJECTION. There being NO further OBJECTION, DCRA #3 was adopted. DCRA #4. Senator P. Kelly WITHDREW DCRA #4 which had been replaced by DCRA #8. DCRA #8. Senator P. Kelly MOVED to adopt DCRA #8. He explained that the amendment would affect the Child Assistance component by inserting $79 thousand I/A Receipts, inserting $1,714,200 I/A receipts from the Head Start component and deleting that amount of general fund dollars from that component. Senator Kelly pointed out that the Department of Health and Social Services received additional funds from the Child Care Development Fund to be spent on childcare. The federal receipts are being transferred to the Department of Community and Regional Affairs to replace general funds in the Head Start Program, Day Care Assistance program and for the Child Care Development Fund to provide resource, referral and quality improvement activities for childcare providers. Additionally, there would be an increase to the University of Alaska's budget in the amount of $2,867,700 general fund dollars. Senator Phillips questioned the relativity of the University portion of the addition to the amendment. Senator P. Kelly advised that general funds had been freed up through proposed changes to the other programs. Senator Adams pointed out that removing inner agency receipts would maximize the federal dollar amount for the two proposed programs. Senator P. Kelly agreed. There being NO OBJECTION, DCRA #8 was adopted. DCRA #5. Senator Adams noted that he would WITHDRAW DCRA DCRA #6. Senator Adams MOVED to adopt DCRA #6 which would restore funding to the FY99 level by adding $26,256.3 general fund dollars to the Municipal Assistance component. Co-Chair Parnell OBJECTED. Senator Adams MOVED to change that amount to $23.6 million dollars, which would be a 10% reduction to all municipalities across the State. He pointed out that DCRA OBJECTED. A roll call vote was taken on the motion to amend the original amendment. IN FAVOR: Torgerson, Adams OPPOSED: Donley, Green P. Kelly, Leman, Parnell, Phillips, Wilken The MOTION FAILED (2-7). Senator Adams speaking to the failure of the amendment to the amendment, WITHDREW his original amendment, DCRA #6 in anticipation of DCRA #9. DCRA #7. Senator Adams WITHDREW amendment DCRA #7. DCRA #8. Co-Chair Parnell stated that DCRA #8 had previously passed. DCRA #9. Senator Donley MOVED to adopt DCRA #9. He explained that the amendment would provide for a one third reduction to statewide municipal revenue sharing. The amendment would insert the Department of Community and Regional Affairs to Page 18, Line 13, and would add $14,389,200 dollars to State Revenue Sharing and $17,504,200 dollars to Municipal Assistance. Senator Adams reluctantly voiced support of the amendment, as it was a cut to municipal assistance and revenue sharing. He urged Committee members to listen to all public comment from the various constituent and interest groups. Senator Donley interjected that the number was an increase over the House proposed budget number. Co-Chair Torgerson OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Green, Phillips, Donley, Leman, Wilken, Adams OPPOSED: Kelly, Torgerson, Parnell The MOTION PASSED (6-3). Senator Adams MOVED to change his vote from a "yes" to a "no". That MOTION changed the support number of passage of the amendment from (6-3) to (5-4). DEPARTMENT OF CORRECTIONS COR #2. Senator Adams MOVED to adopt COR #2. Co-Chair Parnell OBJECTED. Senator Adams explained that the amendment would add $415.1 thousand general fund dollars to the Southcentral Region Probation operations within the Department. The funding would replace six probation officers in the Anchorage, Palmer and Kenai areas. He stressed the increased caseload for sex offenders and mental illness cases. A roll call vote was taken on the motion. IN FAVOR: Adams, Toregerson OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Wilken, Phillips The MOTION FAILED (2-7). COR #7. Senator Adams MOVED to adopt CORRECTIONS #7. Co- Chair Parnell OBJECTED. Senator Adams explained that the amendment would add $155.0 thousand general fund dollars to the Southcentral Region Probation administration and operations unit. A roll call vote was taken on the motion. IN FAVOR: Adams, Torgerson OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Wilken The MOTION FAILED (2-7). COR #10. Senator Phillips MOVED to adopt COR #10. Co-Chair Parnell explained that the amendment was a technical amendment to COR #9 and would place additional federal receipts into the Data Word Processing component rather than the Administrative Services component in the amount of $80 thousand federal receipt dollars. DEPARTMENT OF HEALTH AND SOCIAL SERVICES HESS #1. Senator Kelly MOVED to adopt HESS #1. He explained that the amendment would insert $492,500 general fund dollars to the Chronic Acute Medical Assistance (CAMA) component for that Department. There being NO OBJECTION, the amendment was adopted. HESS #2. Co-Chair Torgerson MOVED to adopt HESS #2. Co- Chair Parnell explained that the amendment would add $21,310.3 tobacco settlement dollars to Medicaid Services and delete $21,310.3 general fund dollars to that same component. Co-Chair Parnell stated it was his intent that all that money be used to offset the cost of smoking and Medicaid services. He noted that the State would be receiving roughly $30 million dollars. Senator Green questioned if it was the intent that all tobacco settlement monies be placed into the HESS budget during the duration of Co-Chair Parnell's chairmanship. Co- Chair Parnell responded that he intended those settlement monies be used to offset complications associated with smoking. Discussion followed between Senators Green, Phillips and Co- Chair Parnell regarding the use of settlement monies. Senator Adams asked how the fund would be labeled. Co-Chair Parnell replied "general funds". Senator Adams suggested the "moral obligation" to use at least one third of the funds for tobacco education programs. Senator Adams MOVED an amendment to HESS #2, changing the amount of the amendment to $14,310.3 dollars. Co-Chair Parnell OBJECTED. He stated that change was addressed in HESS #18. Senator Adams argued that at least one third of the money should be spent on prevention and education. He observed that HESS #18 would only grant $1.4 million dollars for that purpose. Senator Kelly questioned the specifics of the settlement agreement. Senator Phillips requested that the Department testify regarding the concern and the amount the Governor intended to spend on a Tobacco Cessation Program. JANET CLARKE, Department of Health and Social Services, responded that the Governor intended to spend $3 million dollars on tobacco prevention. The remaining funds would be spent through a variety of areas including Medicaid, Denali Kid Care, Foster Care and Child Protection Programs. A roll call vote was taken on the motion to adopt the amendment to the amendment. IN FAVOR: Adams OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (1-8). Senator Adams reiterated his concern that a portion of these funds be used for education. A roll call vote was taken on the motion to adopt HESS #2. IN FAVOR: Green, Phillips, Donley, Wilken, Parnell, Torgerson, P. Kelly OPPOSED: Adams, Leman The MOTION PASSED (7-2). HESS #3. Co-Chair Parnell advised HESS #3 would not be offered. HESS #4. Senator Green requested HESS #4 be HELD. HESS #5. Senator Green MOVED to adopt HESS #5. She explained that the amendment would add $44.8 thousand general fund dollars to the Family Preservation component and $35 thousand general fund dollars to the Mat-Su Youth Facility. She explained that the funding existed as a result of the subcommittee for the Department of Commerce and Economic Development accepting a $78.3 thousand dollar increment which had been incorporated into the FY99 adjusted base. The Subcommittee was then below the cap by an additional $78.3, thus creating a total of $79.8 thousand dollars. Senator Adams OBJECTED. Senator Adams questioned why this amount of funding would be spent on a facility that is not yet opened in Mat-Su Borough. Senator Green replied that these funds would provide time for staff recruitment and maintenance. Senator Donley offered a technical amendment to HESS #5 noting that these two items were separate issues. TAPE SFC-99 #99, SIDE B A roll call vote was taken on the motion. IN FAVOR: Phillips, P. Kelly, Green, Torgerson OPPOSED: Donley, Leman, Wilken, Adams, Parnell The MOTION FAILED (4-5). HESS #6. Senator Adams WITHDREW HESS #6. HESS #7. Senator Adams WITHDREW HESS #7. HESS #8. Senator Adams MOVED to adopt HESS #8. He explained that the amendment would add $4 thousand general fund dollars and $8.491 thousand federal dollars to the FY00 Medicaid Base Program Entitlement to the Medicaid Services BRU. Co-Chair Parnell and Senator Donley OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Adams OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (1-8). HESS #9. Senator Adams MOVED to adopt HESS #9. He explained that the amendment would add $1,366.5 general fund dollars to the Healthy Families component in the State Health Services BRU. Senator Kelly OBJECTED. Senator P. Kelly believed that this was a questionable program in the Department's budget and that it should be shrunk to a more manageable level. He suggested that in five years, the legislature could reevaluate the outcome of the study and then make adjustments. Senator Adams argued that both could be accomplished through this action. He stressed that that the program should be funded and the study should be continued. A roll call vote was taken on the motion. IN FAVOR: Adams, Torgerson OPPOSED: Green, P. Kelly, Leman, Parnell, Phillips, Donley, Wilken The MOTION FAILED (2-7). HESS #10. Senator Adams WITHDREW HESS #10. HESS #11. Senator Adams MOVED to adopt HESS #11. Senator Kelly OBJECTED. Senator Adams explained that the amendment would add $868.9 thousand general fund dollars to the Foster Care Basics Rate Caseload Growth component in the Purchased Services BRU. Co-Chair Torgerson requested that he not vote because he operates a foster care facility. Senator Phillips OBJECTED. Co-Chair Parnell noted that Senator Torgerson would be required to vote. Senator Kelly commented that federal money had increased over the last year. Co-Chair asked if it was the intention of the Subcommittee that the rate be reduced. Senator P. Kelly replied that it was not intended to reduce rates paid to foster parents. A roll call vote was taken on the motion. IN FAVOR: Torgerson, Adams OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Wilken The MOTION FAILED (2-7). HESS #12. Senator Adams requested that HESS #12 be moved to the bottom of the packet. Co-Chair Parnell OBJECTED. Senator Adams MOVED to adopt HESS #12. Senator Kelly OBJECTED. Senator Adams explained that the amendment would add $1,769.8 general fund dollars and $387.1 federal fund dollars to the Front Line Social Workers component in that same BRU. Senator Kelly countered that funding for extra social workers had been already addressed. A roll call vote was taken on the motion. IN FAVOR: Adams, Green OPPOSED: Donley, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (2-7). HESS #13. Senator Donley MOVED to adopt HESS #13. Senator Green OBJECTED. Senator Donley explained that the amendment would add intent language that the Legislature and the Municipality of Anchorage evaluate the fairness of the current system for allocation of state social service block grant funds and provide a written report to the Senate Finance Co-Chairs by October 1, 1999. Co-Chair Torgerson suggested that any discussion of this amendment belonged in the Anchorage caucus resolution and not in the budget bill. Senator Donley replied that this is a State program using State dollars. Co-Chair Torgerson MOVED an amendment to HESS #13 striking Anchorage Legislative caucus and inserting Senate and House Finance Co-Chairs. Senator Green questioned how many municipalities had incorporated that function. Senator Donley replied only Anchorage and Fairbanks. Senator Leman MOVED to include Fairbanks. Senator Wilken OBJECTED. Senator Adams inquired if any left over monies would be returned to the State in order to be contributed to other "less fortunate" communities. Senator Donley did not know. Co-Chair Parnell voiced expectation that remaining allocations would be reported back. A roll call vote was taken on the motion to amend HESS #13. There being NO OBJECTION, the amendment was adopted. Co-Chair Parnell asked if there was objection to the amended HESS #13. Senator Green OBJECTED. IN FAVOR: Adams, Donley, P. Kelly, Leman, Parnell, Phillips, Wilken OPPOSED: Green, Torgerson The MOTION PASSED (7-2). HESS #14. Senator Adams MOVED to adopt HESS #14. Co-Chair Parnell OBJECTED. Senator Adams explained that the language would clarify that it was the Legislative intent that if funding for the Medicaid program was not sufficient to meet demand, optional services and eligible groups would not be reduced or eliminated and that the Department could still request supplemental funding. Co-Chair Parnell commented that this would create an "open invitation" to supplemental funding requests. A roll call vote was taken on the motion. IN FAVOR: Adams OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (1-8). HESS #15. Senator Adams MOVED to adopt HESS #15. He explained that the language would clarify that it was the Legislative intent that if funding for the Foster Care program was not sufficient to meet demand, the Department would not reduce payments or limit eligibility and that the Department could continue to request supplemental funding. Also, additional language would clarify that the same would apply to the Subsidized Adoption and Guardianship program. Senator P. Kelly OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Adams OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (1-8). HESS #16. Co-Chair Parnell stated that HESS #16 would not be offered at this time. HESS #17. Co-Chair Torgerson MOVED to adopt HESS #17. Co- Chair Parnell pointed out a technical change adjusting "$3,045,000" to "$3,537.5" dollars, in both columns of the Catastrophic and Chronic Illness Assistance component. The amendment would return figures to the current year numbers. Senator Adams MOVED an amendment to the Medicaid Services line deleting in the appropriation line "$385,552,100" dollars, inserting "$389,991.0" dollars, and additionally to the general fund line changing the amount from "$104,323,000" to "$107,860,000". He recommended that both programs be addressed with one funding source. Senator P. Kelly stated that the initial number covered what the Department had originally requested. Senator P. Kelly OBJECTED to the amendment. A roll call vote was taken on the motion. IN FAVOR: Adams OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (1-8). There being NO OBJECTION to the change proposed by Co-Chair Parnell, the technical change was made. Senator P. Kelly explained a HESS spread sheet which he had distributed to Committee members indicating the Department's inter agency receipts. [Copy on File]. HESS #18. Co-Chair Torgerson MOVED to adopt HESS #18. Co- Chair Parnell noted that the amendment would be HELD. DEPARTMENT OF LABOR LABOR #3. Senator Adams MOVED to adopt LABOR #3. Co-Chair Parnell OBJECTED. Senator Adams explained that the amendment would restore funding for a labor economist position in the amount of $55 thousand general fund dollars to the Labor Market Information Component. Senator Green countered that the Department had recommended the decrement rather than other proposed cuts. A roll call vote was taken on the motion. IN FAVOR: Adams, Torgerson OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Wilken The MOTION FAILED (2-7). DEPARTMENT OF REVENUE REV #1. Senator Leman advised that the amendment would not be offered. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES DOT #4. Co-Chair Torgerson commented that he would not offer DOT #4. He stated that he had a technical amendment to Front Section #7 which would accomplish the intent of DOT FRONT SECTION FRONT #7. Co-Chair Torgerson MOVED to adopt FRONT #7. Senator Green noted that FRONT #7 had previously been adopted. Co-Chair WITHDREW his MOTION on FRONT #7. Co- Chair Parnell stated that during the break, he would get clarification if additional information was needed for FRONT UNIVERSITY OF ALASKA UNIV #1. Senator Kelly WITHDREW UNIV #1. UNIV #2. Senator Wilken MOVED to adopt UNIV #2. Senator Phillips OBJECTED. Senator Wilken explained that the amendment would insert new language clarifying that unobligated general funds be reappropriated to the University of Alaska for the fiscal year ending June 30, 2000, in order to offset unallocated budget reductions. Co-Chair Parnell MOVED language added to Lines #3 and #4 stating that it was "Not to exceed $1 million dollars". There being NO OBJECTION, the language was added. Co-Chair Parnell commented that the necessary technical revisions would be made by the Legislative Legal Division. A roll call vote was taken on the motion. IN FAVOR: Adams, Donley, Green, P. Kelly, Leman, Parnell, Torgerson, Wilken OPPOSED: Phillips The MOTION PASSED (8-1). UNIV #3. Senator Wilken noted that he would not offer UNIV UNIV #4. Senator Adams noted that he would not offer UNIV UNIV #5. Senator Wilken MOVED to adopt UNIV #5. Senator Phillips OBJECTED. Senator Wilken explained that the amendment would add $3.4 million dollars to the Statewide Services component for Programs and Services. Senator Green questioned that impact on next year. Co-Chair Parnell responded that the appropriation would be allocated to the various campuses to conduct vocational/technical/job-training programs. He did not understand why these funds had not been used previously. A roll call vote was taken on the motion. IN FAVOR: Adams, Donley, Green, P. Kelly, Leman, Parnell, Torgerson, Wilken OPPOSED: Phillips The MOTION PASSED (8-1). FRONT SECTION FRONT #1. Co-Chair Torgerson MOVED to adopt FRONT #2. He explained that the amendment would add language addressing the unexpended and unobligated balance for the Department of Commerce and Economic Development, Occupational Licensing Division. There being NO OBJECTION, it was adopted. FRONT #8. Co-Chair Torgerson MOVED to adopt FRONT #8. Co- Chair Torgerson explained this was a technical amendment to the Marine Highway System deleting "$27,329,500" dollars and inserting "$27,129,500" dollars. There being NO OBJECTION, the amendment was adopted. UNIVERSITY OF ALASKA UNIV #1. Senator Kelly MOVED to adopt UNIV #1. The amendment would add $475,000 general fund dollars to the Unallocated Reductions/Additions to the University of Alaska. The increase is available due to general fund savings in the Department of Community and Regional Affairs. Senator Phillips OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Green, P. Kelly, Parnell, Torgerson, Wilken OPPOSED: Phillips, Leman, Donley, Adams The MOTION PASSED (5-4). Co-Chair Parnell recessed the Senate Finance Committee at 12:30 p.m. for lunch. TAPE SFC-99 #100, SIDE A Co-Chair Parnell reconvened the full Senate Finance Committee at approximately 3:00 p.m. DEPARTMENT OF EDUCATION EDU #1. Senator Kelly MOVED to adopt EDU #1. Senator Donley OBJECTED. Senator Wilken stated that he would support the amendment. Senator Kelly explained that the amendment would insert $50 thousand general fund dollars for the Alaska Mineral Resource Education Fund (AMEREF). A roll call vote was taken on the motion. IN FAVOR: Adams, Green, P. Kelly, Leman, Phillips, Wilken OPPOSED: Donley, Torgerson, Parnell The MOTION PASSED (6-3). EDU #2. Co-Chair Torgerson MOVED to adopt EDU #2. Senator Adams OBJECTED. Co-Chair Parnell explained the amendment would add intent language clarifying that the University of Alaska and Chukshi Community College work together with the Northwest Arctic Borough School District and Alaska Technical Center to consolidate and merge those two programs into one by July 1, 2001. Senator Adams commented that if there was money in budget to provide assistance for the Kotzebue Technical Center, he would support the amendment. Co-Chair Torgerson inquired if that language could be added in Conference Committee. Co- Chair Parnell replied that it could be. A roll call vote was taken on the motion. IN FAVOR: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken OPPOSED: Adams The MOTION PASSED (8-1). EDU #3. Senator Wilken MOVED to adopt EDU #3. He explained that the amendment would add intent language specifying that statewide responsibilities of the Americans with Disabilities Act be recognized through a transfer to a central service agency such as the Office of the Governor or the Department of Administration. In response to Senator Leman's concern, Senator Wilken commented that this action would have a more far-reaching capacity and that there would be cost savings. Senator Green questioned if the concept originated from Vocational Rehabilitation. Senator Wilken emphasized that this action stood on its own merit. There being NO OBJECTION, EDU #3 was adopted. EDU #4. Senator Adams MOVED to adopt EDU #4. Co-Chair Parnell OBJECTED. Senator Adams explained that the amendment would add $34 thousand dollars to the Kotzebue Tech Operations with the amount of $634 thousand general fund dollars. That amount would be deleted from the Pupil Transportation component in the K-12 Support BRU. Senator Wilken advised that the Subcommittee indicated that there were three other alternative funding sources: 1. Industry; 2. The Borough of Kotzebue; and 3. The University of Alaska. Senator Adams argued that the Borough and other organizations were already providing the other $650 thousand dollars. Senator Adams urged that the State protect, "one of the best programs" in the State of Alaska. He emphasized that the State's three best vocational programs included this program. Senator Phillips MOVED to return to UNIV #5 in order to put funding back into Kotzebue Tech Center. Co-Chair Torgerson stated that was "out of order" with the current amendment before Committee members. There was a brief discussion between Senator Phillips and Co-Chair Parnell. Senator Phillips offered a conceptual amendment which would delete the "deletion" K-12 Student Transportation and insert $634 thousand dollars coming out of the Employment Training Program. Senator Adams said $3.65 million could be taken from Employment Training Program. Senator Wilken noted that the Department of Labor would like to have some money left in that component. Senator Phillips MOVED an amendment to EDU #4 which would delete the deletion of $634 thousand dollars from Pupil Transportation and instead insert $634 thousand dollars from the Employment Training Program. Senator Wilken OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Leman, Adams, Phillips OPPOSED: Donley, Green, P. Kelly, Parnell, Torgerson, Wilken The MOTION FAILED (3-5). Co-Chair Parnell reiterated his objection to the original EDU #4 because he believed that campus should be consolidated. A roll call vote was taken on the motion. IN FAVOR: Adams, Torgerson OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Wilken The MOTION FAILED (2-7). EDU #5. Co-Chair Parnell noted that EDU #5 would not be offered. EDU #6. Co-Chair Torgerson MOVED to adopt EDU #6. Senator Adams OBJECTED. Co-Chair Torgerson explained that the amendment would provide for a reduction to the foundation formula in the amount of $3,935,699 dollars because of the high numbers submitted by the individual school district superintendents and financial officers. He pointed out that EDU #7 would add intent language which clarifies that it is not the intent of the Committee for the formula to be prorated. A supplemental would be considered for further funding of the foundation formula. Senator Adams commented that the amendment would effect four of his schools districts. He requested that the October projection be the one used. He pointed out that most schools in rural Alaska have a stable enrollment. Senator Adams maintained his objection and questioned the enrollment of the urban districts. Co-Chair Torgerson explained that the names of districts used were chosen for an explanation on the back up. He reiterated that these numbers were randomly picked and not intended to hurt any particular district. A roll call vote was taken on the motion. IN FAVOR: Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken OPPOSED: Adams, Donley The MOTION PASSED (7-2). Discussion followed on the amendment. Senator Phillips requested that all school districts be investigated in order that the count be fair. Co-Chair Parnell commented that the Department of Education should be the final maker of the decision. Co-Chair Torgerson added that the amendment would reduce the entire foundation formula. He interjected that he had spoken with seventeen of the school districts. EDU #7. Co-Chair Torgerson MOVED to adopt EDU #7. There being NO OBJECTION, the amendment was adopted. Co-Chair Parnell stressed there is equity in the funding system used in Alaska. Senator Phillips questioned if the numbers reflected accurate enrollment. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS DCRA #5. Senator Adams WITHDREW DCRA #5. DCRA #7. Senator Adams WITHDREW DCRA #7. DCRA #10. Senator Kelly MOVED to adopt DCRA #10. He explained that the amendment would delete $950 thousand inter agency receipts from the Day Care Assistance component and insert that amount into the Child Care component the Child Care Assistance BRU. He emphasized that it would have no impact on general funds. Senator Donley OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Adams, Green, P. Kelly, Parnell, Phillips, Torgerson, Wilken OPPOSED: Donley, Leman The MOTION PASSED (7-2). DEPARTMENT OF HEALTH AND SOCIAL SERVICES HESS #4. Senator Green WITHDREW HESS #4. HESS #18. Co-Chair Torgerson MOVED to adopt HESS #18. Co- Chair Parnell explained that the amendment would appropriate $1.4 million dollars from the tobacco settlement funds to the Department of Health and Social Services for payment to the Alaska Tobacco Control Alliance for a tobacco cessation program. Co-Chair Torgerson MOVED the amendment to HESS #18. [Copy on File]. Co-Chair Parnell explained his intention. He noted that it was not his intent to "build up" the Department but rather place that program into a non-profit sector called the Alaska Tobacco Control Alliance. Senator Leman questioned the name of the recipient of the funds. He noted that a lot of money in the past had been unwisely spent. Senator Adams agreed. Co-Chair Parnell commented that the purpose of placing the funds into the Alaska Tobacco Control Alliance was because it is an Alliance with many different extensions and focuses, which have agreed to work together with, like minded agencies in disbursing these funds. It is their intent to create a coordinated effort to disburse funding. Senator Leman noted that his office was preparing a Letter of Intent regarding this concern, to be offered either during the Senate Finance Committee meeting or to the full Senate Floor. There being NO OBJECTION, the amendment to HESS #18 was adopted. Senator Adams OBJECTED to the amended HESS #18. He offered an amendment to HESS #18 which would change the amount listed on Line #3 to $7 million dollars. Co-Chair Parnell and Senator Green OBJECTED. A roll call vote was taken on the motion to amend. IN FAVOR: Adams OPPOSED: Parnell, Green, P. Kelly, Leman, Donley, Phillips, Torgerson, Wilken The MOTION FAILED (1-8). HESS #18 was before the Committee. Senator Green noted that she OBJECTED to having the name of the grantee listed in the amendment. A roll call vote was taken on the motion to adopt HESS #18. IN FAVOR: Adams, Donley, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken OPPOSED: Green The MOTION FAILED (8-1). TAPE SFE-99 #100, SIDE B HESS #19. Co-Chair Parnell explained that HESS #19 was a technical adjustment to a motion previously made. Co-Chair Torgerson MOVED to adopt HESS #19. There being NO OBJECTION, HESS #19 was adopted. FRONT SECTION FRONT #9. Co-Chair Torgerson MOVED to adopt FRONT #9. The amendment would add language needed by the Legislative Finance Division. There being NO OBJECTION, the amendment was adopted. FRONT #10. Co-Chair Torgerson MOVED to adopt FRONT #10. Senator Adams OBJECTED and asked the purpose of the proposed amendment. Co-Chair Parnell explained that the amendment would insure that the appropriation to the Department by the Committee would be in alignment with the intent of the Legislation Budget and Audit Committee. DAVID TEAL, Director, Legislative Finance Division, explained that the amendment was standard clarification language which would clarify conditions in which agencies go before the Legislative Budget and Audit Committee (LBA) to make RPL requests. Senator Adams WITHDREW his OBJECTION. There being NO further OBJECTION, FRONT #10 was adopted. DEPARTMENT OF ADMINISTRATION ADMIN #12. Senator Donley MOVED to adopt ADMIN #12. Senator Donley explained that the amendment would insert new language relative to the Division of Motor Vehicles and status quo funding. Senator Wilken OBJECTED. Senator Donley pointed out that the amendment requests only status quo funding, no increase to that Division. A roll call vote was taken on the motion. IN FAVOR: Adams, Green, P. Kelly, Leman, Parnell, Phillips, Donley OPPOSED: Wilken, Torgerson The MOTION PASSED (7-2). STATEWIDE STATEWIDE #1. Co-Chair Torgerson MOVED to adopt STATEWIDE insert language to be used in the Constitutional Budget Reserve (CBR) Fund draw, limiting that amount to $1,010,000 dollars. Senator Phillips questioned the amount of available funds in the CBR after the draw. Co-Chair Parnell offered to provide that information. Senator Green advised that last year, a $700 million ceiling had been placed on that fund. She asked how the proposed number would equate with the proposed amendment. Co-Chair Parnell responded that it would be the same amount in the sense that spending is down as are oil prices. He concluded that without as much oil income, the draw on the CBR is higher. Senator Adams OBJECTED to STATEWIDE #1. He noted that he and his colleagues would want to scrutinize the budget carefully before voting to withdraw from the CBR. In response to Senator Phillip's earlier question, Co-Chair Parnell stated that after the year 2000, the amount of money left in the CBR, if the proposed withdrawal is accurate, would be $2,029,600 dollars. A roll call vote was taken on the motion. IN FAVOR: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken OPPOSED: Adams The MOTION PASSED (8-1). STATEWIDE #2. Co-Chair Parnell requested that STATEWIDE #2 reflect his name as co-sponsor with Co-Chair Torgerson. Co- Chair Parnell noted that the amendment would be HELD. STATEWIDE #3. Co-Chair Torgerson MOVED to adopt STATEWIDE insert language indicating the Department of Public Safety for housing, Department of Fish and Game for special projects, and the Department of Transportation and Public Facilities contracts for rural trooper housing. They would be classified as statutory designated program receipts and that the amendment would make that change. There being NO OBJECTION, it was adopted. STATEWIDE #2. Co-Chair Torgerson MOVED to adopt STATEWIDE Senator Adams OBJECTED to STATEWIDE #2. Co-Chair Torgerson offered an amendment to STATEWIDE #2. The amendment would delete all current language and insert: "Departmentwide unallocated reduction of the percent of general funds available in the Personal Services line". Co-Chair Torgerson commented that the new amendment would allow departments to take an unallocated travel reduction in nine different components. The amendment was recommended by the Division of Legislative Finance. The amendment would provide a 10% travel reduction in all but three sections except for those that are of 5%. The total estimated savings would be $1.835 million dollars. Senator Adams OBJECTED. Co-Chair Torgerson explained that the technical change would be reflected in HB 50 and HB 51. Senator Adams asked if these would be general funds or other funds. Co-Chair Parnell replied that they were travel reductions. Senator Adams stated that this would be a "blind fold" amendment, as this Body does not understand how it would affect other reductions. He reiterated that this amendment would hit the departments twice. There being NO OBJECTION to the amendment to the amendment, it was changed. Senator Wilken MOVED to amend the amendment, by deleting the Department of Education. He explained the Subcommittee's work and that the Department had been requested to incorporate travel statewide reduction in the amount of 15%. Co-Chair Torgerson interjected that Department's have the latitude to move money. Reductions have been made before to travel components. He pointed out that the Department of Education is projected to receive $145 million dollars, and that this amendment would request that they take an additional $33 thousand dollar reduction. He stated that this is targeted more than general fund travel. A roll call vote was taken on the motion to delete Department of Education. IN FAVOR: Wilken, Adams, OPPOSED: Green, Phillips, Donley, Parnell, Donley, Torgerson, Leman The MOTION FAILED (2-7). A roll call vote was taken on the motion to adopt STATEWIDE IN FAVOR: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken OPPOSED: Adams The MOTION PASSED (8-1). STATEWIDE #4. Co-Chair Torgerson MOVED to adopt STATEWIDE 1.5% personal service lines across all appropriations. Senator Adams OBJECTED. Co-Chair Parnell MOVED an amendment to STATEWIDE #4, which would provide language similar to STATEWIDE #2. He noted that the effect of the amendment would create approximately $8.4 million dollars in savings. There being NO OBJECTION to the amendment to the amendment, it was adopted. Senator Adams MOVED an amendment to the amended STATEWIDE "to bring the level of State employees assigned to communities according to Department of Labor and the Department of Administration statistics of 1991". Senator Green OBJECTED. Senator Adams explained his amendment. He suggested that it would be most fair to reduce personal services in areas that have the most growth of state employees. A roll call vote was taken on the motion. IN FAVOR: Adams OPPOSED: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (1-8). A roll call vote was taken on the motion to adopt the amended STATEWIDE #4. IN FAVOR: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken OPPOSED: Adams The MOTION PASSED (8-1). DEPARTMENT OF EDUCATION EDU #8. Co-Chair Parnell pointed out a technical change to Line #2, deleting "excess" and inserting "exceed". Senator Adams MOVED to adopt EDU #8. Co-Chair Parnell OBJECTED. Senator Adams explained that the amendment would address the closure of the Alaska Technical Center in Kotzebue. He stressed that this was one of the best vocational technical training programs in the State of Alaska and urged that it continue to be funded. A roll call vote was taken on the motion. IN FAVOR: Leman, Adams, P. Kelly OPPOSED: Donley, Green, Parnell, Phillips, Torgerson, Wilken The MOTION FAILED (3-6). DEPARTMENT OF HEALTH AND SOCIAL SERVICES HESS #5. Senator Green MOVED to RESCIND action in failing to adopt HESS #5. There being NO OBJECTION, action was RESCINDED. HESS #5 was before the Committee members. Senator Green requested that the add section be deleted in the amount of $44.8 general fund dollars and that the addition be only to the Mat-Su Youth facility in the amount of $35 thousand dollars. Senator Adams OBJECTED. A roll call vote was taken on the motion to amend the amendment. IN FAVOR: Wilken, P. Kelly, Green, Phillips, Donley, Torgerson, Parnell OPPOSED: Leman, Adams The MOTION PASSED (7-2). A roll call vote was taken on the motion to adopt the amended HESS #5. IN FAVOR: Donley, Wilken, P. Kelly, Green, Phillips, Parnell OPPOSED: Leman, Adams, Torgerson The MOTION PASSED (6-3). DEPARTMENT OF MILITARY AND VETERANS AFFAIRS DMVA #2. Senator Phillips MOVED to RESCIND action taken in adopting DMVA #2. There being NO OBJECTION, the amendment was before the Committee for discussion. Senator Phillips explained that the amendment would provide the Department $116 thousand general funds dollars to the unallocated reduction component. Senator Adams questioned what those funds would be used for. Senator Phillips explained that the Department would not be able to manage properties with the proposed budget cut of $301 thousand dollars. He concluded that with these funds reinstated, the Commissioner could better able maintain services. Senator Adams commented that it is difficult to support a Division which does not recruit statewide. The Department would be able to get an additional $16 dollars federal funds for each $1 spent by the State if they were efficiently doing their job. He commented that this Division does not function well and that the Generals are hired out-of-state and have not done a good job for the past twelve years. A roll call vote was taken on the motion. IN FAVOR: Donley, Green, P. Kelly, Leman, Phillips, Wilken OPPOSED: Adams, Parnell, Torgerson The MOTION PASSED (6-3). MENTAL HEALTH MENTAL HEALTH #1. Co-Chair Parnell requested that his name be added as a co-sponsor of MENTAL HEALTH #1. Senator Adams requested that a policy be provided on the Mental Health issues. Co-Chair Parnell noted that this amendment is separate legislation from HB 51. Co-Chair Torgerson MOVED Mental Health #1, which would remove capital projects and move them to the Department of Natural Resources for land management and enhancement. There being NO OBJECTION, MENTAL HEALTH #1 was adopted. MENTAL HEALTH #2. Co-Chair Torgerson MOVED to adopt MENTAL HEALTH #2. Co-Chair Torgerson MOVED the amendment to MENTAL HEALTH #2. Co-Chair Parnell explained the amendment to MENTAL HEALTH #2 which would take funds in the amount of $390.4 dollars from general funds and mental health funds from HB 50 (operating budget) and put them in HB 51 (Mental Health bill). He acknowledged that the Mental Health Trust Authority (MHTA) had approved such action. Co-Chair Parnell believed that the action would better help to track funds spent. There being NO OBJECTION, the amendment was adopted. TAPE CHANGE SFC-99 #101, SIDE A Co-Chair Torgerson MOVED to report SCS CSHB 50(FIN) out of Committee with individual recommendations. Senator Adams OBJECTED. Senator Adams spoke to the hardships that "double-cutting" will cause within all the departments. He recommended that more dollars should be spent within the Department of Corrections and Department of Education with a portion of those funds received from the tobacco settlement. Senator Adams noted that he would save his remaining comments for the Senate Floor. Co-Chair Parnell stated that the Committee has stayed "on track", making $40 million dollars sustainable reductions. He pointed out that number is $73 million below the Governor's proposed budget. He added that other statutory changes would need to be made to further reductions to the budget. Co-Chair Parnell suggested that until further reductions are made to statewide spending, the public will not be satisfied. He complimented the Committee on cutting spending while maintaining priorities such as funding education, restoring funding to municipal assistance and revenue sharing and taking care of the statewide road system. A roll call vote was taken on the motion to move the bill from Committee. IN FAVOR: Donley, Green, P. Kelly, Leman, Parnell, Phillips, Torgerson, Wilken OPPOSED: Adams The MOTION PASSED (8-1). SCS HB 50 (FIN) was reported out of Committee with a "do pass" recommendation. Co-Chair Torgerson MOVED to report SCS CSHB 51(FIN) out of Committee with individual recommendations. There being NO OBJECTION, the bill was report out of Committee. SCS HB 51 (FIN) was reported out of Committee with a "do pass" recommendation. ADJOURNMENT The meeting adjourned at 7:15 P.M. SFC-99 25 04/20/99 a.m.
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