Legislature(1993 - 1994)

04/03/1993 12:55 PM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
                                                                               
                             MINUTES                                           
                    SENATE FINANCE COMMITTEE                                   
                          April 3, 1993                                        
                           12:55 p.m.                                          
                                                                               
  TAPES                                                                        
                                                                               
  SFC-93, #46, Side 2 (255-000)                                                
  SFC-93, #48, Side 1 (000-end)                                                
  SFC-93, #50, Side 1 (000-end)                                                
                                                                               
  CALL TO ORDER                                                                
                                                                               
  Senator  Steve  Frank,  Co-chair,  convened  the   afternoon                 
  meeting at approximately 12:55 a.m.                                          
                                                                               
  PRESENT                                                                      
                                                                               
  In addition to  Co-chairs Frank and Pearce,  Senators Jacko,                 
  Kelly, Kerttula, Rieger, and Sharp were present.                             
                                                                               
  ALSO ATTENDING:   Senator Jim Duncan, Senator  Rick Halford,                 
  Senator Randy  Phillips, Commissioner  Darrel J.  Rexwinkel,                 
  Department  of Revenue;  Brian  Rogers,  Vice President  for                 
  Finance, University of Alaska; Commissioner John A.  Sandor,                 
  Department  of  Environmental Conservation;  Bruce Geraghty,                 
  Deputy  Commissioner,  Department  of Community  &  Regional                 
  Affairs;  Mike  Greany,  Director,  and Nancy  Slagle,  Jeff                 
  Hoover,  Joan   Kasson,  Karen  Rehfeld,   Fiscal  Analysts,                 
  Legislative  Finance   Division;  and  aides   to  committee                 
  members.                                                                     
                                                                               
  SUMMARY INFORMATION                                                          
                                                                               
  SB 175 -  An Act making appropriations for the operating and                 
            loan program expenses of  state government and  to                 
            capitalize funds; and  providing for an  effective                 
            date.                                                              
                                                                               
            Subcommittee  budgets  were   presented  for   the                 
            following departments:                                             
                                                                               
                 Department of Community of Regional Affairs                   
                 Department of Environmental Conservation                      
                 Department of Fish & Game                                     
                 Department of Commerce & Economic Development                 
                 Department of Natural Resources                               
                 Alaska Court System                                           
                 Legislature                                                   
                 Governor                                                      
                                                                               
       The committee returned to add  amendments or letters of                 
       intent to  the subcommittee budgets  for the  following                 
       departments:                                                            
                                                                               
                                                                               
                 University of Alaska                                          
                                                                               
                 Department of Education                                       
                 Department of Military & Veterans Affairs                     
                 Department of Labor                                           
                                                                               
                 Mike   Greany   and   Nancy  Slagle,   Fiscal                 
                 Analysts,   Legislative   Finance   Division,                 
                 presented  the  front  section   of  SB  175.                 
                 Amendments and  changes were made.  Note: All                 
                 minutes are under the  respective departments                 
                 not  necessarily  when  the   department  was                 
                 originally heard.                                             
                                                                               
                                                                               
  SENATE BILL NO. 175:                                                         
                                                                               
       An Act making appropriations for the operating and loan                 
       program expenses of state government  and to capitalize                 
       funds; and providing for an effective date.                             
                                                                               
  Department of Community & Regional Affairs                                   
                                                                               
  SENATOR GEORGE  JACKO outlined  subcommittee increments  and                 
  decrements to the  corrections of the FY94  operating budget                 
  for the Department  of Community & Regional Affairs (copy of                 
  handout  on file  titled "Department  of  Community Regional                 
  Affairs-Agency Alternative" dated 4/1/93).  He also outlined                 
  designated grants for DC&RA (copy on file titled "Department                 
  of Community & Regional Affairs, Designated Grants - FY88 to                 
  FY94 Proposed").                                                             
                                                                               
  SENATOR  JAY  KERTTULA  said  that  he understood  that  the                 
  deadline  was  past in  the  municipalities to  disallow the                 
  seniors' homeowners property tax exemption.  BRUCE GERAGHTY,                 
  Deputy Commissioner,  Department  of  Community  &  Regional                 
  Affairs,  affirmed  that  the deadline  was  past  for 1993.                 
  Senator Kerttula said  that local governments would  have to                 
  provide funding for the exemption.  Mr. Geraghty agreed that                 
  it would increase  the local  government contribution by  20                 
  percent.  CO-CHAIR  STEVE FRANK said  he had just been  made                 
  aware of the situation and had  not had time to consider it.                 
  Mr. Geraghty informed  the committee  that the Governor  has                 
  proposed and  the  House  has passed  a  bill  for  optional                 
  exemptions for municipalities.                                               
                                                                               
  Senator  Kerttula  MOVED  for adoption  of  amendment  #1 in                 
  regard  to  Perseverance  Theatre in  the  Designated Grants                 
  component (copy on file).  Senator Jacko OBJECTED.  Co-chair                 
  Frank asked for  a show of  hands.  The  motion FAILED on  a                 
  vote of  6 to  1.   (Senators Frank,  Jacko, Kelly,  Pearce,                 
  Rieger, and  Sharp were  opposed.  Senator  Kerttula was  in                 
                                                                               
                                                                               
  support.)                                                                    
                                                                               
  Senator  Kerttula  MOVED  for adoption  of  amendment  #2 in                 
  regard to "People Count" for adult education in Kenai  (copy                 
  on file).  Senator Jacko OBJECTED.  Co-chair Frank asked for                 
  a show of  hands.  The  motion FAILED on a  vote of 6  to 1.                 
  (Senators  Frank,  Jacko, Kelly,  Pearce, Rieger,  and Sharp                 
  were opposed.  Senator Kerttula was in support.)                             
                                                                               
  Senator  Jacko MOVED for ADOPTION  of amendment #3 in regard                 
  to municipal revenue sharing  for DC&RA (copy on file).   No                 
  objections being raised, it was ADOPTED.                                     
                                                                               
  SENATOR TIM KELLY MOVED for ADOPTION of the letter of intent                 
  for DC&RA (copy  on file).   No objections being raised,  it                 
  was ADOPTED.                                                                 
                                                                               
  Senator   Kelly   MOVED   for   ADOPTION   of   subcommittee                 
  recommendations for  the Department of Community  & Regional                 
  Affairs budget into SB 175.   No objections being raised, it                 
  was ADOPTED.                                                                 
                                                                               
  University of Alaska                                                         
                                                                               
  NANCY SLAGLE, Fiscal Analyst,  Legislative Finance Division,                 
  spoke to an earlier proposal to return the  budget structure                 
  for the University of Alaska to the format of two years ago.                 
  The budget sheets  would separate out program  service areas                 
  by campus.  She provided a marked up version of a Department                 
  of Fish  & Game detail page for  an example (copy of handout                 
  on file).   Senator  Kerttula asked  if the  same amount  of                 
  detail  would be  provided to  the legislature.   Ms. Slagle                 
  answered affirmatively, and added  that the University would                 
  have to explain  changes, transfers, deletions,  and provide                 
  comparisons from the past year.                                              
                                                                               
  SENATOR  STEVE  RIEGER MOVED  that  each campus  use project                 
  budgeting within the  allocation for their campus,  and that                 
  would be the  format for the  budget reporting for the  next                 
  year.  No objections being raised, it was ADOPTED.                           
                                                                               
  Department of Environmental Conservation                                     
                                                                               
  Co-chair   Frank   outlined   subcommittee  increments   and                 
  decrements to the  corrections of the FY94  operating budget                 
  for the  Department of Environmental  Conservation (copy  of                 
  handout on file titled "DEC FY94 Budget).                                    
                                                                               
  End SFC-93 #46, Side 2                                                       
  Begin SFC-93 #48, Side 1                                                     
                                                                               
  Co-chair  Frank  submitted  letters  of  intent  numbered  1                 
  through 5 (copies on file).   In answer to Senator Kerttula,                 
  JOHN  A.  SANDOR, Commissioner,  DEC,  said that  Alaska and                 
                                                                               
                                                                               
  Hawaii have authority to  apply for an exemption to  the low                 
  sulfur diesel  fuel requirements  that are  imposed for  the                 
  lower 48.  Mr. Sandor said  that the state exemption request                 
  had been submitted,  and that it  would not be feasible  for                 
  Alaska to be in compliance with this requirement.                            
                                                                               
  In  answer  to  Senator  Rieger,  Co-chair Frank  said  that                 
  because  of  reductions, DEC  would  have problems  in three                 
  areas  --  seafood  inspections, sanitation,  and  bacterial                 
  testing at the  Palmer Laboratory.  Co-chair Frank said that                 
  the first letter of intent  addressed seafood inspection and                 
  bacterial testing  as priorities.   Senator  Kerttula agreed                 
  that seafood testing was needed.                                             
                                                                               
  Senator  Kelly MOVED  for ADOPTION  of the  five letters  of                 
  intent  for  DEC.   No  objections being  raised,  they were                 
  ADOPTED.                                                                     
                                                                               
  Senator   Kelly   MOVED   for   ADOPTION   of   subcommittee                 
  recommendations   for   the   Department  of   Environmental                 
  Conservation  budget  into  SB  175.   No  objections  being                 
  raised, it was ADOPTED.                                                      
                                                                               
  Senator Kelly MOVED for  ADOPTION of a letter of  intent for                 
  DEC and  amended it  to say that  "at least"  $600.0 of  the                 
  $800.0 allocated to  the Department  of Military &  Veterans                 
  Affairs, Division of Emergency Services, from the Department                 
  of  Environmental  Conservation  for  depots  and  corps  be                 
  allocated to support the  incident command center  emergency                 
  preparation and planning support to state, federal and local                 
  governments (copy on file).  No objections being raised,  it                 
  was ADOPTED as amended.                                                      
                                                                               
  Announcement                                                                 
                                                                               
  CO-CHAIR DRUE PEARCE  announced an 8:00 a.m., April  5, 1993                 
  meeting  of  the Senate  Finance  Committee with  Jim Ayers,                 
  Alaska  Marine  Highway System,  speaking  to the  new state                 
  ferry.                                                                       
                                                                               
  Department of Fish & Game                                                    
                                                                               
  Co-Chair   Pearce   outlined  subcommittee   increments  and                 
  decrements to the  corrections of the FY94  operating budget                 
  for the Department of  Fish & Game (copy of handout  on file                 
  titled "Senate  Finance committee, Proposed  Budget Cuts for                 
  the Department of Fish & Game, 4/3/93").                                     
                                                                               
  In answer to Senator Kerttula, Co-chair Pearce said that the                 
  Moose Research Center  has had 30  years to produce a  moose                 
  pellet food, and that  DF&G should go on to  other projects.                 
  She said there is  a chance that the federal  government may                 
  continue this project.  Discussion followed between Co-chair                 
  Pearce and Senator  Kerttula regarding  the location of  the                 
                                                                               
                                                                               
  Moose Research Center and federal funding attached to it.                    
                                                                               
  Senator  Kerttula  MOVED  for ADOPTION  of  amendment  #1 in                 
  regard to  Fred Division  adding  $170.0 for  Kitoi Bay  and                 
  Pillar Creek Hatcheries (copy on file).  Commissioner Sandor                 
  spoke in support  of the amendment and  confirmed that there                 
  was no program receipt authority to receive funds from KRAA.                 
  Senator Jacko OBJECTED.  Co-chair Frank  asked for a show of                 
  hands.  The  motion FAILED on a  vote of 6 to 1.   (Senators                 
  Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed.                 
  Senator Kerttula was in support.)                                            
                                                                               
  Senator  Kerttula  MOVED  for ADOPTION  of  amendment  #2 to                 
  restore funding for the Snettisham  Hatchery (copy on file).                 
  Commissioner  Sandor  again  supported  this  amendment  and                 
  pointed out the  importance of  Snettisham Hatchery for  all                 
  fisheries.  Co-chair  Frank asked for a show of  hands.  The                 
  motion FAILED on a vote of 6 to 1.  (Senators  Frank, Jacko,                 
  Kelly,  Pearce,  Rieger, and  Sharp  were opposed.   Senator                 
  Kerttula was in support.)                                                    
                                                                               
                         At Ease 1:52pm                                        
                        Reconvene 1:53pm                                       
                                                                               
  Co-chair Pearce MOVED for ADOPTION of amendment #3 restoring                 
  the reduction  of $36.6 general  funds from the  Division of                 
  Habitat and a $36.6  decrement made to the travel  line item                 
  in the Division of Wildlife Conservation (copy of file).  No                 
  objections being raised, it was ADOPTED.                                     
                                                                               
  Co-chair Pearce  MOVED for ADOPTION of the  three letters of                 
  intent for DF&G (copy on file).  No objections being raised,                 
  they were ADOPTED.                                                           
                                                                               
  Co-chair   Pearce  MOVED   for   ADOPTION  of   subcommittee                 
  recommendations for  the Department  of Fish  & Game  budget                 
  into SB  175.   Senator Kerttula  OBJECTED.  Co-chair  Frank                 
  asked for a show of  hands.  The motion CARRIED on a vote of                 
  6 to 1.  (Senators Frank,  Jacko, Kelly, Pearce, Rieger, and                 
  Sharp were in support.  Senator Kerttula was opposed.)                       
                                                                               
  Department of Commerce & Economic Development                                
                                                                               
  Co-chair   Pearce   outlined  subcommittee   increments  and                 
  decrements to the  corrections of the FY94  operating budget                 
  for the Department of Commerce  & Economic Development (copy                 
  of  handout  on  file  titled  "Department of  Commerce  and                 
  Economic Development" dated 4/3/93).                                         
                                                                               
  Senator  Kerttula  asked  if detail  grants  funds  would be                 
  available to  the  committee, and  specifically  for  Alaska                 
  Tourism  Marketing Council  (ATMC).   Co-chair Pearce  noted                 
  that the ATMC would receive an industry match  increase over                 
  the Governor's recommendations.                                              
                                                                               
                                                                               
  Co-chair   Pearce  MOVED   for   ADOPTION  of   subcommittee                 
  recommendations for  the Department  of Commerce  & Economic                 
  Development budget into SB 175.  No objections being raised,                 
  it was ADOPTED.                                                              
                                                                               
                         At ease 2:30pm                                        
                        Reconvene 4:20pm                                       
                                                                               
  Department of Natural Resources                                              
                                                                               
  Co-chair   Pearce   outlined  subcommittee   increments  and                 
  decrements to the  corrections of the FY94  operating budget                 
  for the  Department of Community & Regional Affairs (copy of                 
  handout on file titled "Department of Natural Resources").                   
                                                                               
  End SFC-93 #48, Side 1                                                       
  Begin SFC-93 #50, Side 1                                                     
                                                                               
  Senator   Kelly   MOVED   for   ADOPTION   of   subcommittee                 
  recommendations for the  Department of  Commerce &  Economic                 
  Development budget into  SB 175 as  amended.  No  objections                 
  being raised, it was ADOPTED.                                                
                                                                               
  Senator  Kelly  MOVED for  ADOPTION of  the four  letters of                 
  intent                                                                       
  for DNR (copy  on file).   No objections being raised,  they                 
  were ADOPTED.                                                                
                                                                               
  Senator Kelly MOVED for ADOPTION of  amendments #1 and #2 by                 
  in regard to DNR budget changes to the Recorder's Office and                 
  Statewide Fire Suppression (copies on  file).  No objections                 
  being raised, they were ADOPTED.                                             
                                                                               
  Alaska Court System                                                          
                                                                               
  SENATOR  BERT  SHARP  outlined  subcommittee increments  and                 
  decrements to the  corrections of the FY94  operating budget                 
  for the Alaska Court System (copy  of handout on file titled                 
  "Alaska Courts System,  FY 94 Budget  - Senate Finance  Sub-                 
  committee Work Draft, 4/3/93").                                              
                                                                               
  Senator Sharp MOVED for adoption of  amendment #1 to restore                 
  $600.0 GF to a miscellaneous reduction in trial courts (copy                 
  on file).  No objections being raised, it was ADOPTED.                       
                                                                               
  Senator  Kerttula  MOVED  for ADOPTION  of  amendment  #2 to                 
  restore  a reduction of  $1,540.1 to  trial courts  (copy on                 
  file).  Senator Sharp OBJECTED.   Co-chair Frank asked for a                 
  show  of hands.   The  motion FAILED on  a vote  of 6  to 1.                 
  (Senators Frank,  Jacko,  Kelly, Pearce,  Rieger, and  Sharp                 
  were opposed.  Senator Kerttula was in support.)                             
                                                                               
  Senator   Sharp   MOVED   for   ADOPTION   of   subcommittee                 
                                                                               
                                                                               
  recommendations for the  Alaska Court System budget  into SB
  175 as amended.  No objections being raised, it was ADOPTED.                 
                                                                               
  Governor                                                                     
                                                                               
  Co-chair  Frank  outlined  subcommittee  decrements  to  the                 
  corrections of the  FY94 operating  budget for the  Governor                 
  (copy of  handout on file  titled "Governor  - FY94  Budget,                 
  General  Funds Only").   He said that  the Governor's office                 
  had been asked to take a 5 percent budget cut.                               
                                                                               
  Senator   Kelly   MOVED   for   ADOPTION   of   subcommittee                 
  recommendations for the Office of  Governor's budget into SB
  175.  No objections being raised, it was ADOPTED.                            
                                                                               
                         At Ease 4:05pm                                        
                        Reconvene 4:30pm                                       
                                                                               
  Legislature                                                                  
                                                                               
  Co-chair  Frank  outlined  subcommittee  decrements  to  the                 
  corrections of the FY94 operating budget for the Legislature                 
  (copy  of  handout  on  file   titled  "Legislature  -  FY94                 
  Operating Budget").                                                          
                                                                               
  Senator   Kelly   MOVED   for   ADOPTION   of   subcommittee                 
  recommendations  for the  Legislature's budget into  SB 175.                 
  Senator Kerttula OBJECTED.   Co-chair Frank asked for a show                 
  of hands.    The  motion  CARRIED  on a  vote  of  6  to  1.                 
  (Senators Frank,  Jacko,  Kelly, Pearce,  Rieger, and  Sharp                 
  were in support.  Senator Kerttula was opposed.)                             
                                                                               
                         At Ease 6:05pm                                        
                        Reconvene 6:06pm                                       
                                                                               
  Front Section to SB 175                                                      
                                                                               
  Co-chair Frank invited Mike Greany  and Nancy Slagle, Fiscal                 
  Analysts,   Legislative  Finance   Division,  to   join  the                 
  committee at the table and speak to the  front section of SB
  175.                                                                         
                                                                               
  Senator Kerttula MOVED to adopt the  front section of SB 175                 
  for a working document.  No  objections being raised, it was                 
  ADOPTED.                                                                     
                                                                               
  MIKE GREANY said that Sec. 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10                 
  are sections that appear from year  to year in the operating                 
  budget and no changes were required.                                         
                                                                               
  NANCY SLAGLE spoke  to Sec. 11  and said that legal  counsel                 
  had suggested that after (AS 37.15.430),  on page 3, line 2,                 
  the words "to the  state bond committee for payment  of debt                 
  service"  be added.  Co-chair Frank MOVED for ADOPTION of an                 
                                                                               
                                                                               
  amendment to Sec.  11 to  reflect legal counsel's  suggested                 
  language.  No objections being raised, it was ADOPTED.                       
                                                                               
  Mr. Greany  explained that  Sec. 12  appropriated funds  for                 
  debt  payment for  the  City  of  Seward  -  a  recreational                 
  facility, City of Kenai - court house facility, etc.                         
                                                                               
  Mr. Greany said that Sec. 13 appropriated funds  for payment                 
  of debt service and trustee fees on state general obligation                 
  bonds.                                                                       
                                                                               
  Ms. Slagle outlined the following sections:                                  
                                                                               
  Sec. 14 (a) and (b) was recommended by Legislative Fiance to                 
  be deleted since it is in HB 45.  Co-chair Pearce  MOVED for                 
  the deletion of  Sec. 14 (a) and  (b) from page 3,  lines 14                 
  through  18.    No  objections  being  raised,  Sec. 14  was                 
  DELETED.                                                                     
                                                                               
  Sec.  15  would  allocate  funding  for the  permanent  fund                 
  dividend.                                                                    
                                                                               
  Sec. 16  appropriates funds to  offset the inflation  on the                 
  principle  of the  permanent  fund.   Ms.  Slagle said  that                 
  recommended language  has been suggested  by legal  counsel.                 
  Senator Kerttula MOVED for ADOPTION of an amendment  to Sec.                 
  16,  page 3, line  23, to reflect  legal counsel's suggested                 
  language.  No objections being raised, it was ADOPTED.                       
                                                                               
  Sec. 17 spoke to the interest  earned during FY94 on revenue                 
  before it was deposited to the permanent fund.                               
                                                                               
  Sec. 18 spoke to the amount  required to be deposited in the                 
  permanent fund.                                                              
                                                                               
  Sec. 19 appropriates  the lapsing balance of  the employment                 
  assistance and training program account to  the unemployment                 
  compensation fund.                                                           
                                                                               
  End SFC-93 #50, Side 1                                                       
  Begin SFC-93 #52, Side 1                                                     
                                                                               
  Sec. 20  appropriates the Alaska Housing Finance Corporation                 
  and  the  earnings  related  to  the  various  payments  and                 
  receipts  to the Alaska Housing finance revolving fund.  Mr.                 
  Greany pointed out  that the  actual budgetary authority  is                 
  within the  appropriate place  in the  budget in  the Alaska                 
  Housing finance component under the Department of Revenue.                   
                                                                               
  Sec. 21, page 4,  line 28, appropriates to the  general fund                 
  from the commercial fishing revolving loan fund.  Ms. Slagle                 
  said that Legislative  Finance recommends  it be reduced  by                 
  $200.0.  The new number would be $4,802,800.  This amount of                 
  $200.0 was  used  as  an  additional  fund  source  for  the                 
                                                                               
                                                                               
  Department of Commerce operating  budget proposal which  has                 
  been adopted by the subcommittee.                                            
                                                                               
  Senator Kerttula MOVED to amend Sec. 21, page 4, line 29, by                 
  reducing the amount to "$4,802,800," and also to change line                 
  27 to read "$4,802,800."  No objections being raised, it was                 
  ADOPTED.                                                                     
                                                                               
  Senator Kerttula  MOVED amendment  #1 for Sec.  21, page  4,                 
  line  30, to delete the  agricultural revolving loan fund in                 
  the amount of $1,500.0 (copy on  file).  No objections being                 
  raised,  it was DELETED.   (Discussion  and motion  to amend                 
  Sec. 21 was held later in the meeting.)                                      
                                                                               
  Sec. 22 appropriates the 5 cents per barrel surcharge to the                 
  oil  and  hazardous substance  release  response fund.   Ms.                 
  Slagle said  that Legislative  Finance recommended  that the                 
  number be reduced from $26,800.0 to $26,700.0 to reflect the                 
  forecast  by the Department of  Revenue.  Mr. Greany pointed                 
  out that the House  already had taken this action.   Senator                 
  Kerttula MOVED  that page  4, line  31, be  amended to  read                 
  "$26,700,000."  No objections being raised, it was ADOPTED.                  
                                                                               
  Sec. 23  appropriates the balance  of the oil  and hazardous                 
  substance  release   mitigation  account  to   the  oil  and                 
  hazardous substance release response fund.  In answer to Co-                 
  chair Pearce, Ms. Slagle said the balance in the account was                 
  approximately  $12.7.   She  explained  the funds  come from                 
  penalties and fines  levied related to oil  spills, and said                 
  that there was not a statutory amount that needed to left in                 
  the  account.  Ms. Slagle said that this section has been in                 
  the bill  the past several years.  Co-chair Pearce confirmed                 
  that there would be about $6M going into the '470' fund.                     
                                                                               
  Sec.  24 appropriates the unexpended balance  of the oil and                 
  hazardous substance release response fund for spill reserve.                 
  In  answer  to Co-chair  Pearce,  Ms. Slagle  said  that the                 
  balance in the spill reserve account was approximately $23M.                 
  Discussion followed between Co-chair Pearce, Ms. Slagle, Mr.                 
  Greany, and  Ms. Stonkus  regarding the  oil spill  response                 
  fund, reserve fund, and the '470 fund.  Mr. Greany explained                 
  that Sec. 24 moved money that was in the '470' fund into the                 
  spill reserve,  which more  specifically outlines where  the                 
  money can be used.  In answer to Co-chair Pearce, Mr. Greany                 
  said the 5 cents  a barrel was connected to the  '470' fund.                 
  Co-chair Frank announced  that Sec. 24  would be held  until                 
  later in the meeting.                                                        
                                                                               
  Later in the  meeting, Co-chair Pearce  MOVED that Sec.  24,                 
  page 5, lines  5 through 8 be deleted.   No objections being                 
  raised, it was DELETED.                                                      
                                                                               
  Sec. 25 would  reflect appropriations  to the Department  of                 
  Law and Revenue for legal and audit activities involving oil                 
                                                                               
                                                                               
  and gas revenue.   In previous  years this  has been in  the                 
  back section  of the  budget, but  this year  the Governor's                 
  office placed it in the front section.                                       
                                                                               
  Sec.  26  appropriates funds  to  the Department  of Natural                 
  Resources for costs  associated with fire suppression.   Ms.                 
  Slagle said that Legislative Finance recommends that Sec. 26                 
  be deleted since  this has been  put in the back  section of                 
  the  budget.  Senator Kelly MOVED to delete Sec. 26, page 5,                 
  lines 18 through  20.  No  objections being raised, Sec.  26                 
  was DELETED.                                                                 
                                                                               
  Sec. 27  appropriates the disaster relief fund  and has been                 
  in the back section in past years.  This year the Governor's                 
  office placed it in the front section.                                       
                                                                               
  Sec. 28 appropriates funds to  the information services fund                 
  for  the Department of Administration.  Ms. Slagle said that                 
  Legislative Finance recommends that page  5, line 28, should                 
  read "General fund - $2,311,600",  line 29 should remain the                 
  same,  and  line  30 should  read  "Inter-agency  receipts -                 
  $20,265,100,"  which would  change the total  on line  25 to                 
  "$22,631,700."   Senator Kerttula  MOVED to  amend Sec.  28,                 
  lines  25  through  30,  to  reflect the  recommendation  by                 
  Legislative Finance.   No  objections being  raised, it  was                 
  ADOPTED.                                                                     
                                                                               
  Sec.  29 appropriates  money from  the general  fund  to the                 
  Alaska Marine  Highway System  fund.   Ms. Slagle  said that                 
  Legislative  Finance  recommends  the  sum  be   reduced  to                 
  "$28,329,200" to reflect the action  taken by the Department                 
  of  Transportation &  Public  Facilities subcommittee.   Co-                 
  chair Frank MOVED that Sec. 29,  page 5, line 31, be amended                 
  to read "$28,329,200."   No objections being raised,  it was                 
  ADOPTED.                                                                     
                                                                               
  Sec. 30  appropriates  money to  the  fisheries  enhancement                 
  revolving fund.                                                              
                                                                               
  Sec.  31  appropriates money  from  the mental  health trust                 
  income account to  the general  fund for statewide  indirect                 
  cost recovery related to mental health programs.  Ms. Slagle                 
  said that Legislative Finance recommends  the sum be reduced                 
  to $871,400 to reflect the action taken by the Department of                 
  Health  & Social  Services subcommittee.   Senator  Kerttula                 
  questioned this reduction.   Co-chair Frank said  that there                 
  was an increase  in DD grants in the  DH&SS budget.  Senator                 
  Kelly MOVED that Sec. 31, page 6, line 5, be amended to read                 
  "$871,400" (copy  on file).  No objections  being raised, it                 
  was ADOPTED.                                                                 
                                                                               
  Sec.  32  appropriates  money  from  the oil  and  hazardous                 
  substance  release mitigation  account  to the  storage tank                 
  assistance fund.   Ms. Slagle said that  Legislative Finance                 
                                                                               
                                                                               
  recommends a reduction  to $5,691,500.  Senator  Kelly asked                 
  for  clarification   of  this  appropriation.     Discussion                 
  followed  between  Ms.  Slagle,  Mr.  Greany,  Ms.  Stonkus,                 
  Senator Kelly, Co-chairs Frank and Pearce, in regard to  the                 
  '470' fund, spill  reserve, and  mitigation fund.   Co-chair                 
  Frank MOVED that Sec. 32, page 6, line 8, be changed to read                 
  "$5,691,500."  No objections being raised, it was ADOPTED.                   
                                                                               
  Sec. 33 appropriates any  funds not expended in FY93  by the                 
  Safety  Advisory Council to be  used for the Governor's 1994                 
  safety conference.                                                           
                                                                               
  Sec. 34  refunds local governments their share  of taxes and                 
  fees collected under various programs.  Mr. Greany said that                 
  this section has been used for several years.                                
                                                                               
  Sec.  35  appropriates  the salmon  enhancement  tax  to the                 
  Department of Commerce and Economic Development.                             
                                                                               
  Sec. 36  allows the  use of  funds in  the statutory  budget                 
  reserve fund in case revenues are short.                                     
                                                                               
  Sec. 37 provides for the lapse date.                                         
                                                                               
                         At Ease 6:45pm                                        
                        Reconvene 6:55pm                                       
                                                                               
  Sec. 21 discussion  was held at this time.   Amendment #1 by                 
  Senator  Kerttula  was ADOPTED.    (See  detail in  Sec.  21                 
  above.)                                                                      
                                                                               
  Sec. 24 was  deleted at this time.   (See detail in  Sec. 24                 
  above.)                                                                      
                                                                               
  Co-chair Pearce MOVED to adopt the amended front  section of                 
  SB 175.  No objections being raised, it was ADOPTED.                         
                                                                               
  Co-chair  Pearce  MOVED for  passage  of CSSB  175(FIN) with                 
  individual  recommendations.   No  objections being  raised,                 
  CSSB 175(FIN) was REPORTED OUT of committee as amended.                      
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The afternoon  meeting  was recessed  at approximately  7:00                 
  p.m.                                                                         
                                                                               

Document Name Date/Time Subjects