Legislature(1999 - 2000)
03/31/2000 09:36 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
March 31, 2000
9:19 AM
TAPES
SFC-00 # 72, Side A
CALL TO ORDER
Co-Chair Sean Parnell convened the meeting at approximately
9:19 AM.
PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell,
Senator Al Adams, Senator Pete Kelly, Senator Loren Leman,
Senator Green, Senator Phillips and Senator Gary Wilken.
Also Attending:
SUMMARY INFORMATION
HB 312-APPROPRIATIONS: OPERATING BUDGET
Committee members made comments on the committee substitute
as amended and the bill was reported from Committee.
HB 313-APPROPRIATIONS: MENTAL HEALTH
Co-Chair Parnell announced the Committee would be taking up
this bill early in the following week.
CS FOR HOUSE BILL NO. 312(FIN) am(brf sup maj fld)(efd
fld)
"An Act making and amending appropriations for the
operating and loan program expenses of state
government, for certain programs, and to capitalize
funds."
Co-Chair Parnell explained to members of the public the
process of setting a budget each year, describing the
operating budget, the capital budget and the supplemental
budget.
Co-Chair Parnell noted the operating budget the Committee
would report out at this meeting contains approximately
$105 million less in agency general fund spending than the
budget proposed by the governor. He added that the general
fund agency reduction under the budget was approximately
$35 million. He qualified that these figures did not
include state payment for debt service, which would add
approximately $11 million.
Co-Chair Parnell expressed that when all the budget bills
passed, he believed the legislature would be on-track for
spending at least $30 million less in general fund spending
than in the current year.
Co-Chair Parnell pointed out increases in the FY 01 budget
emphasizing education and the protection and development of
children as well as public safety and transportation. He
stated that many of the increases were "pass-through" to
the citizens of Alaska and to local governments rather than
state agencies. As an example, he said the permanent fund
dividends would increase by $237 million.
Co-Chair Parnell next talked about education funding
stressing that the committee substitute fully funds the
Kindergarten through 12th grade funding formula and also
provides additional funds for learning opportunity grants.
He declared the Committee's intent that the grant funds go
directly into the classroom. He continued that the budget
increases university funding to the classroom.
The next area of budget increases that Co-Chair Parnell
addressed were the direct payments to families for foster
care and subsidized adoptions. He stated these increases
were to insure that children move off of foster care more
quickly and into permanent homes.
Co-Chair Parnell continued by noting the new funding for
additional state troopers and for fish and wildlife
protection officers. Many of these positions serve the
rural areas of the state, he indicated, as the urban areas
have their own local police department.
Co-Chair Parnell added that the budget provides more
funding for Department of Transportation and Public
Facilities' maintenance stations so that more roads are
plowed and repaired.
He summarized that these increases reflected the identified
priorities as established by the Committee and realized
through the efforts in the budget subcommittees to work
with the state agencies.
Co-Chair Parnell referenced a spreadsheet prepared by the
Division of Legislative Finance showing the general fund
appropriation. [Copy on file.] He pointed out the $35.7
million reduction.
Co-Chair Parnell explained the FY 01 budget funds the
additional debt service payment using general fund dollars
as it always has. He noted the House of Representatives
version of the budget transferred Alaska Industrial
Development and Export Authority (AIDEA) funds to pay the
debt service. He shared that the Senate intended to utilize
the AIDEA funds in the capital budget, as was the
tradition.
Co-Chair Parnell commended the Committee members and staff
for their efforts.
Co-Chair Parnell asserted that the budget process was an
"on-going conversation".
Senator Adams appreciated the work of the Committee. He
noted that the public would look at the total spending
package. Even though a $35 million reduction was made, he
remarked that there was also a shifting of funds, which was
important to note because some might say the budget was not
cut enough.
Senator Adams commented that there were still some areas of
concern with regards to the committee substitute. He listed
the Public Defenders Agency and the Office of Public
Advocacy as examples. He declared that someone has to look
out for the needs of the disadvantaged and the poor and
that these Alaskans also need equal representation and
access to justice.
Senator Adams appreciated the additional funds for the
Headstart program but said there should have been more
funds. He expressed that early education can make Alaskans
better citizens.
Senator Adams next addressed the Village Public Officers
Program and his attempts to garner compatible salaries for
these positions. He also argued in favor of working
salaries for school bus drivers, support for municipal
assistance and revenue sharing and the Department of
Corrections.
Senator Adams then began speaking to the children and
families' area of the budget where he thought the Committee
did an excellent job. He said foster care, the Balloon
Project, childcare and infant learning all benefit from
this budget.
Senator Adams declared, "There is nothing wrong with being
a liberal at heart."
Senator Adams also applauded the Committee for fully
funding education.
Regarding funding for the University of Alaska, Senator
Adams asserted that the cup was half full and that at least
some of the needed funds were provided, which he
appreciated.
Senator Adams referred to an amendment he had offered that
would cut many positions located in Anchorage. He said that
many people wondered how the state could have such a large
number of employees earning a total of $1.2 billion in
Anchorage. He surmised that government needed to be
reduced.
Senator Adams remarked that he budget process this year
reflected good cooperation between the budget subcommittees
and the Minority. He expressed the staff had done an
excellent job relaying information.
Senator Adams stated that he would vote in favor of moving
the bill from Committee although he still had some concerns
that Minority would bring before the full Senate.
Senator Leman also appreciated the efforts that went into
the bill. He stated that the thought the total package
spent more money than he would have preferred but that no
budget is ever perfect and that this bill accommodates many
needs. He noted that many of Senator Adams's amendments
were adopted and thus added funding.
Senator Leman said he would support the motion to report
the budget from Committee and he looked forward to
continued work in the Conference Committee.
Senator P. Kelly commented on the budget process saying
that many people do not understand the tremendous amount of
work done by legislative staff. He thanked his aide, Laura
Glaiser personally. He talked about the long hours and the
mistakes avoided through the hard work of staff members.
Senator Wilken associated himself with the previous
remarks.
Co-Chair Torgerson offered a motion to report from
Committee, SCS CS HB 312, 1-LS1304/I, as amended by the
Senate Finance Committee. There was no objection and the
bill was REPORTED OUT.
ADJOURNED
Co-Chair Parnell recessed the meeting at 9:30 AM.
[Note: The Committee reconvened to consider other bills.
Minutes for that portion of the meeting are separate.]
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