Legislature(1995 - 1996)
04/11/1995 06:20 PM Senate FIN
| Audio | Topic |
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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 11, 1995
6:20 p.m.
TAPES
SFC-95, #27, Side 1 (000-end)
SFC-95, #27, Side 2 (575-end)
SFC-95, #29, Side 1 (000-end)
SFC-95, #29, Side 2 (575-532)
CALL TO ORDER
Senator Steve Frank, Co-chair, convened the meeting at
approximately 6:20 p.m.
PRESENT
In addition to Co-chairmen Frank and Halford, Senators
Donley, Phillips, and Sharp were present. Senator Rieger
arrived soon after the meeting began. Senator Zharoff did
not attend.
ALSO ATTENDING: Annalee McConnell, Director, Office of
Management and Budget; Nancy Slagle, Director, Division of
Budget Review, Office of Management and Budget; Nico Bus,
Acting Director, Support Services, Dept. of Natural
Resources; LaMar Cotton, Dept. of Community and Regional
Affairs; Douglas Samimi-Moore, Executive Director, Public
Broadcasting Commission, Dept. of Administration; Mark
Badger, Director, Division of Information Services, Dept. of
Administration; Mike Greany, Director, Legislative Finance
Division; Susan Taylor, Jetta Whittaker, Dana LaTour,
Kathryn Daughhtee, Virginia Stonkus, and Fred Fisher, fiscal
analysts, Division of Legislative Finance; Jerry Burnette,
aide to Senator Phillips; budget analysts from the Office of
Management and Budget; aides to committee members and other
members of the legislature; and representatives of the press
and television media.
SUMMARY INFORMATION
HB 100 - APPROP: FY 96 OPERATING & LOAN BUDGET
Subcommittee presentations were made for the
following department budgets:
Education
Corrections
Labor
Military & Veterans Affairs
University
Community & Regional Affairs
Commerce & Economic Development
Revenue
Environmental Conservation
Natural Resources
Administration
Public Safety
Law
Legislature
CS FOR HOUSE BILL NO. 100(FIN)
An Act making appropriations for the operating and loan
program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date.
Upon convening the meeting, Co-chairman Frank announced that
the committee would commence review and adoption of
subcommittee budgets at this time and continue subcommittee
presentations the following evening. He further advised
that the subcommittee for the Dept. of Transportation and
Public Facilities had not yet concluded its work and that
the budget for the Dept. of Fish and Game would not be
presented at this time.
DEPT. OF EDUCATION
Co-chairman Frank directed attention to a handout (copy
appended to these minutes as Attachment A. Additional
information on all subcommittee presentations is included in
the Senate Finance Committee master file for HB 100,
available through the Legislative Finance Division.). He
explained that the handout contains the subcommittee report
and noted that the cover sheet evidences the following
changes from the Governor's budget:
School Finance Division - Reduced the school bus safety
program but maintained the inspection program. Reduced the
division director to range 24, and reduced excess
contractual funding.
Education Support Program - Made a general reduction of
$10.0 for personal services, eliminated close-up, future
problem solving, student leadership, and the rural school
voc. ed. program.
Executive Administration - Reduced a special assistant to
range 21, eliminated an education associate III position,
reduced general funds and suggested that the division
collect interagency receipts for services from other
divisions.
Commissions and Boards - Eliminated excess general funds,
denied increments for contractual and personal services, but
maintained ability to capture federal funds. The Co-
chairman referenced need for a technical amendment included
within Amendment No. 1. Co-chairman Halford MOVED for
adoption of Amendment No. 1. DANA LaTOUR, fiscal analyst,
Legislative Finance Division, explained that the amendment
merely corrects the funding. The net effect is zero. No
objection having been raised, Amendment No. 1 was ADOPTED.
Kotzebue Technical Center - A general reduction of 8%,
($65.1) was taken.
Mt. Edgecumbe Boarding School - An increment to be achieved
through transfer from boarding home grants was denied based
on the expectation that the school could continue to be
operated in the residential program with the current level
of funding.
Alaska Vocational Technical Center - A general reduction of
$100.0 was made with intent language saying that the center
should aggressively develop additional program receipts and
seek authority to receive and expend them through the
Legislative Budget and Audit Committee. A corresponding
personal services reduction of $8.8 was also made for a
division director.
Vocational Rehabilitation - The small business enterprise
increment was reduced based upon an expectation that the
project may not receive that much in program receipts. If
the total of anticipated receipts is forthcoming, the
division may come to the Legislative Budget and Audit
Committee to receive and expend them. A reduction was also
made to division directors in line with the recommendation
from the administration. Excess program receipt authority
was also eliminated in the Americans With Disabilities
section.
Alaska State Library - An administrative assistant and
librarian were eliminated, and travel, supplies, and grants
were reduced as was the range for a division director. An
additional library assistant in archives was also
eliminated.
Alaska State Museums - The museum security coordinator was
eliminated, and travel, contractual, and supplies were
reduced.
Alaska Postsecondary Education Commission - Co-chairman
Frank referenced last year's policy of allowing no new
students in the WICHE program. Funding for FY 96 follows
through on that policy by denial of the $144.9 increment.
That maintains the commitment to students already in the
program but allows no new students. The subcommittee denied
the transfer from WICHE to WAMI. A bill is presently before
Senate Finance Committee with an amendment to increase fees
collected from students to maintain the WAMI program. The
budget denies the increase in federal student aid grants as
a transfer from WICHE.
Senator Rieger raised a question regarding a $105.0 transfer
from WICHE and the $39.3 labeled "correct transfer from
WICHE." Co-chairman Frank advised that the department said
it had excess funds in WICHE that it wished to transfer to
WAMI and federal student aid. The department wanted to
increase federal student aid grants. The subcommittee did
not see fit to do that. The plan is to statutorily change
ability to collect fees from WAMI students.
Co-chairman Halford raised a question concerning federal
loans and forgiveness available to doctors willing to
practice in rural areas. Co-chairman Frank explained that
the subcommittee did not "get into that specifically." He
noted that both Senator Salo and Senator Green are
"interested in looking at this area over the interim."
Responding to a comment by Co-chairman Halford that $150.0
was passed off to the capital budget, Co-chairman Frank
noted that library acquisition moneys are traditionally
funded in the capital budget. While those moneys are not in
the Governor's capital budget this year, the subcommittee
recognized need for ongoing subscriptions and acquisition of
periodicals and books. It is appropriate that this effort
have some level of funding. Intent language was thus
provided.
Co-chairman Frank next directed attention to the following
intent:
Alaska Council on the Arts - Requests that the council
maximize grants and minimize overhead.
Library Operations - Requests consideration of $150.0
for acquisitions within the capital budget.
Vocational Rehabilitation - Directs that the division
request receipt and expenditure authority from the
Legislative Budget and Audit Committee if additional
federal receipts are forthcoming.
Alaska Vocational Technical Center - Speaks to program
receipt authority per the preceding paragraph.
Co-chairman Halford MOVED for adoption of intent language.
No objection having been raised, the INTENT was ADOPTED.
Co-chairman Halford then MOVED for adoption of the
subcommittee recommendation for the Dept. of Education,
excluding formula funding. Co-chairman Frank acknowledged
that funding of the formula would be dealt with at another
time. No objection having been raised, the subcommittee
budget for the Dept. of Education was ADOPTED for
incorporation within HB 100.
DEPT. OF CORRECTIONS
Co-chairman Frank directed attention to a handout
(Attachment B) and explained that working from FY 95
authorized, the subcommittee made the following changes:
Administration and Support - Effected a transfer of $387.7
to the Dept. of Administration for a building lease in
Anchorage, fully implemented telecommunications chargebacks,
allowed an increment for transportation unit overtime and
allowed a partial increment for the correctional academy to
train new staff and recruits.
Statewide Operations - Included an increment of $1.5 million
in inmate health care, allowed partial increments for inmate
programs and correctional industries, included an increment
of $4,798.7 in out-of-state contractual for 200 beds in
Arizona, included an increment of $725.9 for an anticipated
inmate population increase, allowed an increment of $1.3
million to reduce vacancy from an average of 5.5% to 3.3%,
and included an increment on the telecommunications
chargeback.
Co-chairman Frank referenced a general fund offset of $2.7
million from SB 135.
Addition changes include annualization of funding for 50 new
beds at the Spring Creek Correctional Center, 59 new beds at
Wildwood, and funding for new CRC beds in community
corrections. A corresponding offset was made through upper
level management salary reductions.
Community Jails - Co-chairman Frank referenced transfer of
the component from the Dept. of Public Safety to the Dept.
of Corrections. The subcommittee authorized one additional
person to administer contracts and provided a partial one-
half increment in negotiated contracts. Co-chairman Frank
called for questions or comments on the budget proposal.
Senator Donley referenced a request from Senator Lincoln for
a proposed amendment relating to community jails, to
partially approved renegotiated contracts. Co-chairman
Frank asked that amendments be held for consideration
following presentation of all subcommittee budgets.
Senator Randy Phillips MOVED for adoption of the
subcommittee report on the Dept. of Corrections budget. No
objection having been raised, the subcommittee report was
ADOPTED for incorporation within HB 100.
Senator Phillips next MOVED for adoption of the following
intent:
Inclusion of $155.8 in fire and safety equipment for
community jails within the capital budget.
Review of travel, per diem, and pay for new recruits at
the correctional academy in an attempt to reduce
expenditures.
Acknowledgment that funding of $2,703,700 from denied
dividends from the permanent fund (SB 135) would be
one-time funding and thereafter leave a gap in FY 97
funding for statewide operations that would have to be
filled in that budget.
Senator Donley raised questions regarding the last item of
intent, noting that SB 135 has not yet passed. Co-chairman
Halford advised that the intent provides justification to
the Office of Management and Budget for inclusion of the
funding in the base for the FY 97 budget.
No objection having been raised, the foregoing intent for
the Dept. of Corrections budget was ADOPTED for
incorporation within HB 100.
DEPT. OF LABOR
Subcommittee Chairman, Senator Phillips, advised that the
Senate general fund allocation for the budget totaled
$9,133.5. The subcommittee recommendation is slightly lower
at $9,097.2. That represents a reduction of five positions.
He next spoke to the following general fund reductions:
Data Processing $ 89.2
State Data Center (one-half of increment) 80.0
OSHA, GF non-match 276.4
OSHA, federal program resale 182.3
OSHA, publication technician 26.4
OSHA, sale of federal publications 5.8
Total reduction from the Governor's Budget $660.1
Senator Phillips advised that the foregoing represents a
$280.5 reduction from FY 95.
Senator Donley inquired concerning the impact of cuts upon
OSHA. JERRY BURNETTE, aide to Senator Phillips, advised
that "It reduces the state's match to OSHA." Only federal
moneys remain. Senator Donley voiced concern that the
federal government would take over if the state does not do
an adequate job. Senator Phillips advised that with existing
caps, there was no other way to proceed. Senator Donley
attested to concern regarding worker safety on the job and
asked that someone from the department speak to the issue.
No one came forward. The Senator again cautioned that
funding below a certain threshold would result in federal
take over and stressed need to hear from the department.
Co-chairman Frank suggested that the subcommittee
recommendation be adopted with the understanding that
consideration would revert to it with an opportunity for
amendment if necessary. Co-chairman Halford MOVED for
adoption of the subcommittee recommendation for the Dept. of
Labor budget. Senator Donley OBJECTED, noting that a
minority member of the subcommittee, Senator Zharoff, was
not present to articulate concerns. Co-chairman Frank
directed that the budget be held for consideration at the
next meeting. Co-chairman Halford withdrew his motion for
adoption.
DEPT. OF MILITARY AND VETERANS AFFAIRS
Senator Phillips distributed a handout (Attachement D) and
advised that the Senate general funding allocation was
$6,785.8. The subcommittee budget represents an $88.5
reduction from FY 95 and a reduction of one position.
Reductions consist of:
Delete funding for disaster relief
$6,000.0
(Funding is considered formula and will
be dealt with later.)
Delete veterans increment in Commissioner's Office
45.0
(Leaves funding for new spec.assist. for veterans
affairs.)
Delete increment for rural veteran outreach
30.0
(This was a new program requested by the Governor.)
Delete grant for American Red Cross
75.0
(One-time grant, FY 95.)
Reduced general fund in ADES
30.0
(Reduced travel and staff development.)
Reduce general fund in Commissioner's Office
30.0
(Replace with $30 federal authorization.)
Reduce general fund in Army Guard
83.7
(Close Mountain View Armory, maintenance shortfall)
Reduce veterans service officer grant program
25.0
Total reductions
$6,318.7
Co-chairman Halford voiced his understanding that the budget
increased federal receipts while reducing general funds.
Senator Phillips concurred. Jerry Burnette advised that the
department testified that it thought it would be able to
capture the federal funds. Senator Phillips further advised
that he sought to include the new position for veterans
affairs as a range 21 special assistant rather than a range
26 director.
Senator Phillips MOVED for adoption of the subcommittee
recommendation for the budget for the Dept. of Military &
Veterans Affairs. No objection having been raised, the
budget was ADOPTED for incorporation within HB 100.
UNIVERSITY OF ALASKA
Senator Rieger explained that in keeping with Senate
practice over the last few years, the regents and the
university administration would prefer to work with an
unallocated reduction. That reduction has been administered
fairly in the past. The subcommittee recommendation is thus
to take the assigned cap as an unallocated reduction from
the Governor's recommendation. The statewide FY 96 number
would thus be $167,412.2.
Senator Rieger next directed attention to intent relating to
development of the health sciences curriculum at the UAA
campus. Co-chairman Halford asked if intent containing
reference to WAMI was consistent with the Dept. of Education
budget. Co-chairman Frank voiced his understanding that it
is not inconsistent. He stressed need to get WAMI on a
paying basis by increasing fees from students. That does
not impact intent within the University of Alaska budget.
Senator Rieger noted that the health sciences curriculum
goes beyond WAMI. He advised that it also provides one of
the opportunities for research, an important component for
all campuses. Intent would encourage development of
research at the UAA campus.
Senator Rieger MOVED for incorporation of the subcommittee
recommendation for the University of Alaska budget within HB
100. No objection having been raised, IT WAS SO ORDERED.
Dept. of Community and Regional Affairs
Senator Phillips advised that the Senate general fund
allocation was $30,456.0. The subcommittee is lower at
$30,425.4. The reduction from FY 95 is $2,678.2 and five
positions. Reductions consist of:
Alaska Legal Services (eliminate grant) $
421.0
Admin. Services (personal services reduction)
77.0
Commissioner's Office (eliminate designated grants)
576.9
Local Gov. Assistance (personal services reduction)
126.9
Local Gov. Assistance (travel reduction)
25.0
Local Gov. Assistance (eliminate AFN grant)
145.0
Child Care (pers.serv.reduction two grant administrators)
125.0
Child Care (grantee training)
20.0
Day Care Assistance (deny increment)
400.0
Rural Development Mini Grants (grant reduction)
150.0
Rural Development Assist.Grants (grant reduction)
251.3
Community Development (personal services)
86.3
Community Development Circumpolar (eliminate grant)
75.0
Community Development CDQ (eliminate grant)
25.0
Community Development, DC&ED, CDQ (deny increment)
32.6
Community Development, BSFA/CDQ (deny increment)
100.0
Community Development,contractual (line item reduction)
7.0
Energy Operations (personal services reduction)
238.1
Energy Operations (reduction of contractual line)
30.0
Total reductions from Governor's Amended
$2,909.5
Senator Phillips advised that senior citizen tax relief,
municipal assistance, and revenue sharing would be dealt
with differently. Co-chairman Frank concurred that those
items would be handled in full committee at a later time.
Co-chairman Halford voiced his understanding that CDQ
funding was reduced but not eliminated. LaMAR COTTON, Dept.
of Community and Regional Affairs, advised of $281.0 for
needed positions. The $30.0 which was eliminated was a
special grant increment requested by the Dept. of Commerce
and Economic Development. The $25.0 was an unspecified
grant. Funding allowing continuation of the program remains
in the budget.
Senator Donley registered concern on behalf of Senator Adams
regarding deletion of funding for Alaska Legal Services. He
then referenced a possible amendment to restore funding and
asked that that item of the budget be held open. Co-
chairman Frank voiced a preference for adoption of the
subcommittee report with opportunity to offer amendments at
a subsequent meeting.
Senator Phillips MOVED for incorporation of subcommittee
recommendations for the budget for the Dept. of Community
and Regional Affairs within HB 100. No objection having
been raised, IT WAS DO ORDERED.
End: SFC-95, #27, Side 1
Begin: SFC-95, #27, Side 2
DEPT. OF COMMERCE AND ECONOMIC DEVELOPMENT
Senator Sharp advised that the subcommittee met the general
fund spending cap of $37,448.7. Changes include:
Insurance - Approved $164.6 GF/PR increment and denied
increment of $356.6 GF/PR.
Alaska Public Utilities Commission - Deleted two analysts,
$119.9, and denied increment of $93.2.
Commissioner's Office - Deleted special assistant I, $69.1.
Economic Development - Reduced ARDORs $400.0, reduced
"Marketing Alaska" $50.0, and denied $74.2 increment.
International Trade - Reduced a director from range 26 to
range 24, $15.0, and reduced funding for the Northern Forum
by $35.0.
Fish Enhancement Tax - Reduced to equal receipts and moved
from the department budget to the front section.
Tourism Development- Deleted $200.0 for visitor statistics
(end of a three-year program) and denied transfers.
Alaska Tourism Marketing Council - Increased marketing by $1
million and reduced $277.6 in excess general fund program
receipts.
Alaska Seafood Marketing Institute - $200.0 reduction in
general fund match from $1 million to $800.0 to match $6
million in federal funding down from $7 million. The
subcommittee also effected a $1.2 million reduction in
general fund program receipt authority and a reduction of
$860.0 in general fund program receipts for the Off-shore
Processor Tax, since funding is not likely to be forthcoming
in FY 96 due to ongoing litigation. An additional $200.0
reduction was made in Seattle personal services. The
subcommittee took exception to the fact that over half the
staff is located in Washington State. Intent requests that
ASMI consider moving those people back to Alaska. The total
general fund reduction is $2,462.0. Total general fund is
$37,086.1.
Senator Rieger asked if general funds remain in the ASMI
budget, aside from voluntary assessments. Senator Sharp
responded, "$800.0." Senator Rieger asked if voluntary
assessments could be used for match moneys. Senator Sharp
said he was unsure. He subsequently advised that fish tax
moneys are "passed through by statute."
Co-chairman Halford voiced concern over the increase in the
tourism budget, noting that general funds were increased
here while the budget for ASMI was decreased. He voiced his
belief that both are nonresident-owned, "outside-based
industries that we get a piece of." However, the state
never "seems to get enough of either one of them." He
suggested it was inconsistent to cut one and increase the
other. Senator Phillips suggested that the department
budget be closed with the exception of both the Alaska
Tourism Marketing Council and Alaska Seafood Marketing. Co-
chairman Frank called for objections to adoption of the
subcommittee report for the Dept. of Commerce and Economic
Development while holding ATMC and ASMI open. No objection
having been raised, the Dept. of Commerce and Economic
Development budget with the exception of ATMC and ASMI was
ADOPTED for incorporation within HB 100.
DEPT. OF REVENUE
Senator Sharp distributed a handout (Attachement H). He
then advised of the following changes from FY 95:
Child Support Enforcement - Increased general funds by
$164.7 to match $1,159.5 in federal funds.
Income and Excise Audit - Effected an $87.6 miscellaneous
reduction because the department wished to increase funds to
child support enforcement and treasury.
Oil and Gas Audit - Deletion of $155.3 in miscellaneous and
contractual to increase funds for child support enforcement
and treasury.
Oil and Gas Litigation Audit - Reduction of $265.0. FY 95
funds were transferred to income and excise audit and oil
and gas.
Treasury Management - Received an increment of $278.4
because of the increased cost of custodial fees. The
subcommittee denied the $94.1 for the bond advisor
increment.
Charitable Gaming - Effected a reduction of $8.2 by reducing
the director position from range 26 to 24.
Commissioner's Office - Provided a $90.3 increase to allow
deletion of oil and gas tax review case funding.
Oil and Gas Tax Case Review - The subcommittee worked with
the Commissioner and staff to delete the $292.8.
The Senate cap was met with a reduction of $275.0.
Directing attention to the second page of the handout,
Senator Sharp noted that substantial increments are all non-
general fund. He then highlighted the following changes:
Child Support Enforcement - Increase of federal funds of
$2.6 million.
Alaska Permanent Fund Corporation - Increase of $6.4 million
for portfolio management. Greater investment in equities
requires more active management.
Alaska Housing Finance - Reduction of $2.5 million in
corporate receipts and a reduction of twenty-nine positions.
Alaska Mental Health Authority - Increase of $952.8 to fully
fund the new board's request.
Alaska State Pension Investment Board - Increase of $2.5
million for fund handling.
Additional funding totals $9.3 million.
Senator Rieger asked what the House did in terms of treasury
management to produce "such a low number." Senator Sharp
advised that the House proposes "taking several hundred
thousand dollars out of the CBR."
Senator Sharp MOVED for adoption of subcommittee
recommendations on the Dept. of Revenue budget for
incorporation within HB 100. No objection having been
raised, IT WAS SO ORDERED.
DEPT. OF ENVIRONMENTAL CONSERVATION
Co-chairman Frank directed attention to pages 2 and 3 of the
subcommittee report (Attachment I) and advised of the
following changes:
Office of the Commissioner - Effected a general fund
reduction of $140.0.
Information and Administrative Services - Reduction of
$100.0.
Public Services - This component was combined with a new
component. Regional management was eliminated but response
funds remain in tact.
Response Fund Administration - Reduced funds for DMVA by
$100.0 to the level the department said it could live with,
$500.0. Eliminated funds for the hazardous substance spill
technology review council since it is sunsetting.
Regional Management - Reduced funding by $262.3 and added
$45.5 and $90.0 to public services (above).
Environmental Quality - Eliminated $69.8 in general funds
and $25.0 in general fund program receipts for a total of
$94.8.
Monitoring and Lab Support - Effected a reduction of $187.7
in general funds and provided intent relating to use of
interagency receipts of $211.0.
Drinking Water - Effected a general reduction of $30.9.
Wastewater & Water Treatment - Effected a general reduction
of $56.8.
Solid and Hazardous Waste Management - Made a general
reduction of $85.4 plus denial of the increment for solid
waste.
Air Quality Management - Made a general reduction of $66.7
and denied the increment of $1.1 million.
Water Quality Management - Made a general reduction of
$34.1.
Environmental Health BRU - Effected an unallocated reduction
of $111.0.
Facilities & Construction - Made a general reduction of
$75.0 and a shift of $93.7 to CIP funds.
Co-chairman Frank advised that many of the subcommittee
changes are consistent with those made by the House.
Senator Donley attested to concern regarding air quality
mandates and suggested that an amendment might be
forthcoming. He expressed further concern regarding funding
in the underground storage tank program, saying that while
it is authorized to come from response funds and the spill
settlement, it is instead funded from the 3-cent surcharge
(general funds). That also may be the subject of an
amendment.
Co-chairman Halford MOVED for adoption of subcommittee
recommendations for the Dept. of Environmental Conservation
budget for incorporation within HB 100. No objection having
been raised, IT WAS SO ORDERED.
Senator Phillips inquired concerning intent language. Co-
chairman Frank directed attention to the following items:
Environmental Quality, Laboratory Support Component
Intent requests that staff finish projects currently
under way and replace matching funds with interagency
receipts.
Environmental Quality, Air Quality & Solid Waste
Intent requests that the department reassess requested
positions to reduce them to the absolute minimum and
then seek authority from Legislative Budget and Audit.
Environmental Quality, Water Quality
Intent requests that the department make certification
of wetland permits a priority.
The Co-chairman explained that in including intent regarding
air quality he sought to give the new commissioner adequate
time to reassess staffing. He questioned need for ten new
positions in addition to the present forty-three and
suggested that the job could be done with existing staff.
Co-chairman Frank stressed need to retain primacy. That
should be done with the greatest efficiency, the least
amount of people, and the smallest fees on the private
sector.
Senator Phillips MOVED for adoption of the foregoing intent
for incorporation within HB 100. No objection having been
raised, IT WAS SO ORDERED.
Co-chairman Halford restated his motion for adoption of the
subcommittee report on the budget for the Dept. of
Environmental Conservation, including intent. No objection
having been raised, IT WAS SO ORDERED.
DEPT. OF NATURAL RESOURCES
Co-chairman Frank directed attention to page 2 of a handout
(Attachment J) and advised of the following changes:
Administrative Services - Deleted two accountants and an
assistant director.
Recorder's Office - Deleted a range 18 assistant state
recorder.
Information Resources Management - Effected a reduction
requested by the Governor, after submission of his budget,
reducing program receipts by $300.0. Made a reduction in
general funds and a corresponding increase to interagency
receipts.
Resource Development, Land - Made a miscellaneous general
fund reduction and a corresponding CIP reduction of $407.0
requested by the administration.
Forest Management - Effected a general reduction of $100.0.
Oil and Gas Development - Made a general reduction of $100.0
for presale analysis. The Co-chairman said he would
subsequently offer an amendment to change the reduction from
presale analysis to a general reduction to maximize
flexibility.
Geological Development - Effected a general reduction of
general funds in the director's office and a reduction in
general fund program receipts due to an unrealized level of
receipts.
Water Development - Made a general reduction and eliminated
the navigability project that should be handled by the
division of lands.
Pipeline Coordinator - Funding for Badami was changed from
general fund program receipts to other funds.
Information Resource Management - Funding was transferred to
the management and administration BRU.
Agricultural Development - Made a general reduction in
program receipts and effected an $80.0 increase from the
agricultural revolving loan fund. Effected a straight
general fund reduction of $80.0 from the director's office,
shifted $48.9 to the agricultural revolving loan fund, and
reduced the appropriation authorization for collateral
protection from the agricultural revolving loan fund by
$239.0. An additional $100.0 for the Northern Latitude
Plant Center was shifted from general funds to the
agricultural revolving loan fund, and permitting funds for
the Fort Knox Gold Mine and Valdez Creek were shifted to
other funds. Funding for the inter-departmental data
processing chargeback and the Fairbanks Office Building
chargeback were transferred to the management and
administration BRU.
Parks and Recreation - Effected an overall reduction of
$104.1 in the director's office and authorized program
receipt authority and "then we took half of it back in
general funds . . . ."
Agricultural Development BRU - Transferred funding to the
development BRU along with forest, oil and gas, mining,
geological and water development.
Fire Suppression - Funded an amount of fixed cost,
recognizing that a supplemental would accommodate funding
needs for actual fires once that need is known. The Co-
chairman advised that he would later offer an amendment to
change the format to one preferred by the department, to
provide greater flexibility.
Co-chairman Frank next directed attention to the following
intent:
Parks and Recreation Management - Requires that if
parks are closed, closure occur in a fair, statewide
manner rather than concentrated in a particular area of
the state.
Statewide Fire Suppression - Relates to expectation of
a supplemental appropriation for actual fire
suppression costs.
Senator Rieger inquired concerning procurement of water
rights. Co-chairman Frank referenced water development.
Senator Rieger voiced concern regarding park fees and
withdrawal of commensurate general funds. Co-chairman Frank
concurred in the concern, acknowledging that the division
should be able to keep part of what it raises. The proposed
budget would allow parks to keep 50 cents of every dollar.
The subcommittee approved the Governor's program receipt
increment of $600.0 but deleted half of it back in the
$319.0 deletion of general funds. Senator Phillips also
concurred in comments by Senator Rieger. Co-chairman Frank
reiterated that the budget allows parks to increase fees and
keep half of what they make. He acknowledged that the
division was not held harmless from general fund reductions.
Co-chairman Halford MOVED for adoption of the subcommittee
report and letters of intent for the Dept. of Natural
Resources budget for incorporation within HB 100. No
objection having been raised, IT WAS SO ORDERED.
DEPT. OF ADMINISTRATION
Senator Randy Phillips distributed a handout (Attachment K)
and advised that the goal was $169,601.6. The subcommittee
met the goal and effected a total reduction of $6,854.5 from
FY 95 funding. A total of seventeen positions were also
reduced. The subcommittee budget consists of the following
general fund reductions:
Longevity Bonus (revised estimates) $
450.0
Senior Services Admin. (pers.ser., travel, contractual)
60.3
Senior Services Senior Residential Grant (Kotzebue
Senior Center, Medicaid eligibility)
120.0
Senior Services funding change (204 GF to 204 GF/PR
increase rates effective February, 1996)
0.0
Public Defender Agency (consistent with supp.funding)
73.1
Office of Public Advocacy (216.6 above FY 95 with supp.)
125.0
Office of the Commissioner (personal services)
100.0
Permanency Planning (funding in fiscal note, HB 66)
170.6
Personnel (deny increment)
404.0
Retirement & Benefits, EPORS (denied portion of
increment, retirements uncertain)
25.0
Oil and Gas Conservation Commission (denied increment)
9.0
Alaska Public Offices Commission (denied increment
reduce to FY 94 level, nonelection year)
14.4 RATNET (transferred to new component)
$1,129.7
Public Broadcasting (25% reduction, first year
of three-year phaseout, see intent)
$1,467.9
Leasing (5% reduction)
$1,219.5
Co-chairman Frank inquired concerning the $120.0 reduction
for Kotzebue. Jerry Burnette advised of department
testimony that Medicaid would cover the cost. The Co-
chairman further inquired regarding funding for both the
Public Defender and Office of Public Advocacy, asking if the
agencies were funded at the FY 95 level plus supplemental
funding. Senator Phillips concurred in that understanding.
Senator Donley advised of contact from Senator Duncan's
office and interest in restoring funding for RATNET and
public broadcasting. Co-chairman Frank advised that it
would be helpful to hear comments from the agencies relating
to reductions. He suggested that discussion occur at the
next meeting. Senator Phillips said he worked closely with
the department in preparation of the subcommittee budget.
The other body reduced public broadcasting by 100%. The
Senate subcommittee recommends a 25% reduction and a three-
year phase out. The hope is that both the public and
private sector will respond in providing dollars for public
broadcasting. He acknowledged that the situation would be
difficult but not unmanageable.
MARK BADGER, Director of Information Services, Dept. of
Administration, and DOUGLAS SAMIMI-MOORE, Executive
Director, Public Broadcasting Commission, Dept. of
Administration, came before committee. Mr. Badger explained
that distinctions between RATNET and public broadcasting are
somewhat misleading. He referenced the phaseout approach
for public broadcasting and advised that funding continues
to be needed for public television, public radio, and the
rural Alaska television network. Mr. Moore acknowledged
that the Senate budget restores "some funding to public
television," when compared to the House number. At the same
time, funding and expenses associated with RATNET
transmission and services have been moved to statewide
communication services. RATNET, public television, and
public radio are to be operated from this new appropriation.
Transponder costs associated with RATNET are "more than
$800.0 a year." It is unlikely, if not impossible, that
both RATNET and public television services could be
delivered without some appropriation for RATNET
transmissions over the transponder.
Mr. Moore acknowledged that technological fixes could result
in significantly less operating costs. However, with no
capital to make those changes in previous years, the system
"is not there yet." Given the high cost of transmission of
RATNET and public television, the proposed budget will not
allow the department to "do both."
Senator Rieger referenced diagrams accompanying subcommittee
budget materials and requested an explanation. Mr. Badger
said they evidence "a potential way to create some economies
while maintaining services." A plan was endorsed by the
telecommunications information council that strongly
endorses RATNET service. It should be understood that the
rural Alaska television network, as it has existed over the
past few years, must evolve and change. People accept that.
The information highway has a place in Alaska. The thin
infrastructure now in place is reliant on public
broadcasting and the rural Alaska television network as well
as commercial telephone providers. Mr. Badger suggested
that dismantling the system with nothing in its place would
increase the task of "keeping Alaskans connected." He urged
that the evolving system be given an opportunity to fulfill
its full potential.
Co-chairman Halford referenced a proposal to create a
private endowment and channel funding through that entity
rather than public broadcasting. He then asked if
subcommittee changes are intended to make that possible.
Senator Phillips suggested that use of a private endowment
reflects a policy decision to be made by committee. At this
point, subcommittee funding is "with the commission." Co-
chairman Halford voiced his understanding that the
appropriation is "to the public broadcasting commission for
radio and t.v. services." Senator Phillips concurred.
Discussion followed between Co-chairman Frank and Mr. Badger
regarding a department proposal submitted to subcommittee.
Mr. Badger advised that the department approach was
contingent upon "some funding for the RATNET transponder."
The $800.0 number is unyielding. Transmission requires the
skylink. The Senate budget does not contain that funding.
Co-chairman Halford suggested that the public broadcasting
commission take the $800.0 from the $1.4 million. Mr.
Badger explained that funding for public television is
necessary to be able to provide service to the rural Alaska
television network. Mr. Moore clarified that the $800.0
relates to lease of the transponder without any expenditures
for the tape delay center which takes programs from stations
in Anchorage and retransmits them "out of the RATNET
system." The $800.0 merely relates to space on the
transponder. It does not include programming. The $1.4
million set aside for public television is a reduction from
$2.1 that presently flows to four public television
grantees. The commission will have to come up with some
form of grant allocation to maintain some type of public
television service in Alaska. It is difficult to determine
how the commission will provide both RATNET and public
television, given lack of the $800.0 needed for RATNET and
the above-noted reduction of public television to $1.4
million. Mr. Badger added, "It will not work. One is
contingent on the other."
Mr. Badger explained that the $309.0 reduction in House
numbers for RATNET eliminates the tape delay center in
Anchorage which combines all the Anchorage signals and
retransmits them. It removes a big portion of the rural
Alaska television network. To supplant that service, one
must have a service that provides a programming line. That
is what public television would do. But public television
must be funded in order to be able to "pull that off." The
two are interlinked.
Senator Donley asked if the problem would be solved if
Senate numbers were added to the $978.0 provided by the
House for RATNET. Mr. Badger and Mr. Moore both responded
affirmatively.
Co-chairman Frank expressed a preference for adoption of the
subcommittee report with the understanding that attention
could revert to RATNET and public television after further
clarification. Senator Phillips MOVED for adoption of the
subcommittee report for the Dept. of Administration budget
for incorporation within HB 100. No objection having been
raised, IT WAS SO ORDERED.
Senator Phillips next referenced the following items of
intent:
Public Broadcasting - Requested to seek new sources of
support as state support is phased out over the next
three years by a 25% reduction in FY 96, a 35%
reduction in FY 97, and a 40% reduction in FY 98.
Requested to allocate funds to assure survival of
stations which provide the sole broadcast service to
one or more communities.
Requested to coordinate and maximize cost savings and
efficiencies for public television and that public
broadcasting deliver essential communications to
underserviced regions of Alaska.
Co-chairman Halford voiced his understanding that all rural
radio stations that are the only station in an area will
"stay on the air." Senator Phillips concurred, advising of
a priority for radio over television. Referencing the
second item of intent, Senator Rieger asked if it was in
keeping with systems involving a shared programming station
which relays electronically to other broadcast stations in
other communities. Mr. Moore acknowledged that it is
consistent in the sense that the mission of the public
broadcasting commission is to fund and develop a system of
public broadcasting that serves the educational,
informational, entertainment, and cultural needs and to
provide public broadcasting services to people in Alaska.
He added that virtually every public radio station provides
some level of sole service. As an example, he noted that
Sitka provides service to Kake, Yakutat, and other
locations.
Through strategic planning over the last three years, the
system is moving toward a regional grouping of stations such
that they can consolidate efforts, realize economies through
closer coordination, and free up resources at the local
level for local news and information services. Intent
language in paragraph two is not in conflict with that. Co-
chairman Halford voiced his understanding that FY 95 funding
was approximately $7 million. The House funded $4 million
and the Senate $4.4. Department representatives concurred.
Senator Phillips MOVED for adoption of the foregoing intent
items, for incorporation within HB 100. No objection having
been raised, IT WAS SO ORDERED.
DEPT. OF PUBLIC SAFETY
Senator Rieger distributed a handout (Attachement L) and
explained that attaining the budget cap involved "a lot of
little decrements." He then commenced the following review:
Fish and Wildlife Protection
Enforcement - Reduced an increment of $150.0 in personal
services, $15.0 in travel, $10.0 in contractual, and $4.0 in
commodities. There was also a switch of $1 million from
general funds to the fish and game fund. Senator Rieger
said he would subsequently offer an amendment to change the
latter amount, based on the actual balance in the fish and
game fund.
Director's Office - Reduced personal services $14.0 and
travel $1.0.
Aircraft Section - Misc. operational reduction of $30.0 plus
$42.0 in personal services.
Marine Enforcement - Reduced personal services $25.0 and
$10.0 in misc. operations.
Fire Prevention
Operations - Denied a $184.6 increment, $90.0 in personal
services, and $73.8 in general funds to be offset with
program receipts through institution of fees.
Fire Service Training - Denied the $204.1 increment.
Highway Safety Planning
Operations- Effected a $5.0 reduction in personal services.
Motor Vehicles
Field Services - Reduced $300.0 in general funds and
replaced them with $300.0 in program receipts.
Administration - Reduced personal services by $50.0.
Alaska State Troopers
Detachments - Denied a $700.0 increment. Reduced travel
$30.0, contractual $87.0, commodities $5.0, equipment $9.3
and overall personal services reduction of $1,845.9. Both
the House and the Senate subcommittees reduced program
receipts for the concealed weapons program by $228.5.
Special Projects - This new component was funded $1,600.0
from interagency receipts from the highway safety planning
agency (helmet bill money). There is intent language that
funds the school bus safety program referred to as
interagency receipts in the Dept. of Education budget.
Criminal Investigation Bureau - Reduced personal services
$84.0, contractual $32.4, and commodities $6.0.
Director's Office - Reduced personal services $45.0,
contractual $1.0, and commodities $1.0.
Judicial Services - Reduced personal services $35.0 and
contractual $5.0.
Prisoner Transportation - Reduced travel $50.0.
Search & Rescue - Miscellaneous reduction of $8.0.
Rural Trooper Housing - Miscellaneous reduction of $38.0,
plus intent language directing the department to increase
program receipts in FY 97 and move the program toward full
self-support via program receipts.
Narcotics Task Force - Miscellaneous reduction of $100.0.
Commercial Vehicle Enforcement - Miscellaneous reduction of
$30.0.
V.P.S.O.
Contracts - Denied the $219.2 increment and transferred
$35.0 from VPSO support to contracts.
Alaska Police Standards Council
Took a miscellaneous reduction of $259.1.
Violent Crimes Compensation Board
Reduced $100.0 from day fines but added front section
language that extends the lapse for day fines moneys from FY
95.
Domestic Violence and Sexual Assault
Replaced $325.0 in general funds with permanent fund
dividends. Deleted day fines of $100.0, and the $87.9
increment for shelter grants.
Statewide Support
Training Academy- Took a miscellaneous reduction of $10.0.
Administrative Services - Reduced personal services $40.0.
Public Safety Information Network - Denied a $267.8
increment.
Alaska Criminal Records and Identification - Denied a $36.6
increment and reduced $100.0 in general funds program
receipts from the concealed weapons permit program.
The subcommittee budget totals $81,447.5 in general funds.
That is sufficiently under the cap to allow the funding
source correction to the fish and game fund. Senator Rieger
advised that he would suggest a $1 million funding switch to
$445.5 in general funds and $555.5 from the fish and game
fund. In response to a question from Co-chairman Halford,
Senator Rieger explained that the fund is derived from
forfeitures and penalties. The balance rolls forward, and
some of it is used in the department budget. Pending
legislation which would double fines could have a dramatic
impact on the forfeiture and penalties component.
Senator Rieger next directed attention to intent items:
Highway Safety Planning - Expresses legislative intent
that grants include $50.8 for the school bus inspection
program in the Dept. of Education.
Expresses legislative intent that grants include $1.6
million for safety programs administered by the special
projects component of the Alaska State Troopers.
Motor Vehicles - Requests that the division assess
methods of increasing availability of commercial motor
vehicle license testing around the state.
Alaska State Troopers, Rural Trooper Housing - Requests
that the program eventually be totally supported by
rent receipts. For FY 97, rental receipts are to
increase by at least an additional $63,100 over the FY
96 figure.
Senator Donley voiced his understanding that rural trooper
housing was part of the collective bargaining contract.
Senator Rieger concurred. He then explained that intent has
been placed in the budget in advance so that it will become
part of the next bargaining package. Discussion followed
regarding the impact of intent upon future negotiations.
Discussion followed between Senator Sharp and Senator Rieger
regarding aircraft operations within trooper detachments.
Senator Rieger noted that funding is shown in contractual
lines. The program is much smaller than that of fish and
wildlife protection. It consists of two helicopters (one in
Anchorage and one in Fairbanks) used for search and rescue.
Senator Rieger advised that the aircraft is owned rather
than leased. Considerable subcommittee discussion focused
on the issue.
Senator Donley voiced concern regarding enforcement of
mandatory auto insurance and financial responsibility acts.
He noted that when the laws were enacted, the legislature
provided additional fees to pay for them. The department
asserts that over the years those fees have been bled off to
other parts of the general fund. He then inquired regarding
the impact of cuts in program receipts in the field services
section of the division of motor vehicles. Senator Rieger
advised that the subcommittee budget provides a $38.0
program receipt increment for field services. The Senator
acknowledged that had the cap not been so difficult, he
would have provided a further increase. He further
acknowledged complaints about lines at field offices. Over
the past several years, the Legislative Budget and Audit
Committee has allowed a "small number of extra positions in
DMV field services, funded by program receipts . . . ."
Senator Rieger next referenced a proposed amendment
containing a change of funding of $444.5 for fish and
wildlife protection, enforcement and investigative services,
from the fish and game fund to general funding. He
explained that he learned of need for the change after
subcommittee closeouts. As a further explanation he
referenced a subcommittee switch of $1 million in funding
from general fund to the fish and game fund. The amendment
would be a reduction of $555.5 from the fish and game fund
and an increase of $444.5 in general funds. Senator Rieger
then MOVED for adoption of the proposed amendment to the
subcommittee recommendation. No objection having been
raised, the AMENDMENT was ADOPTED.
Co-chairman Frank advised that front section items would not
be dealt with at this time.
Senator Rieger MOVED for adoption of the amended
subcommittee budget, including intent, for the Dept. of
Public Safety for incorporation within HB 100. Senator
Sharp warned of the possibility of comment from commercial
fishing interests that have traditionally utilized the fish
and game fund. Co-chairman Halford referenced funding for
fish and wildlife protection and troopers when he commented
that funding for the department appears to be about the same
as last year. The budget appears to contain an increase in
federal funds to match a decrease in general funds. Senator
Rieger noted real reductions in almost every component with
the exception of enforcement where the subcommittee sought
to ensure that the number of blue and brown shirts in the
field would not be decreased. To a further comment by the
Co-chairman, noting that federal moneys increased from $6 to
$9 million, Senator Rieger explained that not all federal
receipts accrue to public safety. Aside from an increase in
federal dollars for the narcotics task force, the bulk of
the increase is helmet money which is subsequently granted
to municipalities or other state agencies for safety
programs. No objection to the motion for adoption and
incorporation having been raised, IT WAS SO ORDERED.
DEPT. OF LAW
Co-chairman Halford advised that the subcommittee budget
meets the $19,556.8 general fund cap. He explained that
funding holds prosecution harmless, thus providing the same
funding as the House and the Governor's amended budget. Cuts
were allocated through other areas of the department. The
Co-chairman noted the following changes:
Fair Business Practice - Eliminated $150.0 and personnel
engaged solely in antitrust activities. Seed money was left
to maintain some antitrust activity through private counsel.
Operations - Components were reduced 1% below the FY 95
authorized level.
Mental Health Lands - The Senate recommendation is the same
as that of the House.
Operations/Time Keeping - The subcommittee concurred in the
Governor's decision to move time keeping out of the
operations BRU. That reduced the operations base to $919.1.
The subcommittee then applied an additional 15% reduction to
$769.8.
Oil and Gas Litigation - The subcommittee reduced funding
from $24 million to $20 million. That amount is more
current in terms of ongoing litigation.
Environmental Compliance - The subcommittee agreed with the
administration's request to remove the $655.2 to be
appropriated from the 470 fund. That funding will remain
available through the Dept. of Environmental Conservation.
Much of the legal services provided by the department can be
charged to other departments and paid by interagency
receipts. The bulk of funding for this component should be
derived by that means.
Exxon Valdez Litigation - The subcommittee took the same
approach as the House and agreed with the administration's
request to remove $100.0 to be appropriated from the 470
fund. That funding will be available through the Dept. of
Environmental Conservation.
The subcommittee budget also minimized allocations to
provide maximum flexibility within the department.
Co-chairman Halford MOVED for adoption of the subcommittee
budget for the Dept. of Law for incorporation within HB 100.
No objection having been raised, IT WAS SO ORDERED.
LEGISLATURE
Co-chairman Frank explained that the budget meets the cap of
$29,045.6. He then conducted the following review:
Budget & Audit Committee
Legislature Audit - Funded at the FY 94 actual level.
Legislative Finance - Funded at $2.7 million.
Committee Expenses - Funded at $175.0.
Legislative Council
Salaries & Allowances - Funded at last year's authorization,
$3.7 million.
Administrative Services - Slight reduction to $7.0 million.
End: SFC-95, #29, Side 1
Begin: SFC-95, #29, Side 2
Session Expenses - Funded at $5.5 million.
Legislative Council - Funded at $434.0, a decrease from the
FY 94
actual.
Legal & Research - Combined the agencies and funded them at
$2.0 million, a decrease from FY 94
actual.
Leadership - Funding is reduced to $4,056.9 from the FY 94
actual
of $4.5 million.
Ombudsman - Funded at $700.0. That is a decrease from last
year's
conference committee funding of $975.0 and FY 95
authorization of $1,041.4.
In response to a question from Senator Donley, Co-chairman
Frank explained that FY 94 actual numbers represent the best
comparison for FY 96 funding. Areas where reductions in FY
94 actual funding were taken include Legislative Finance, a
reduction from $3 million to $2.7. The Ombudsman sustained
a significant reduction from both FY 94 and FY 95 funding.
Legislative Leadership accounts are "down by $500.0."
Combination of legal and research services results in a
reduction of approximately $250.0. Senator Donley inquired
concerning legal and research capabilities at the reduced
level. Co-chairman Frank acknowledged a reduction in
personnel due to the consolidation. He stressed, however,
that it was logical to combine the two and reduce both
personnel and overhead.
Senator Randy Phillips MOVED for adoption of the
subcommittee recommendation for the budget for the
Legislature for incorporation within HB 100. No objection
having been raised, IT WAS SO ORDERED.
ADJOURNMENT
The meeting was adjourned at approximately 8:55 p.m.
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