Legislature(1997 - 1998)
04/08/1997 09:12 AM Senate FIN
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* first hearing in first committee of referral
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+ teleconferenced
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MINUTES
SENATE FINANCE COMMITTEE
8 April 1997
9:12 a.m.
TAPES
SFC-97, #85, Side 1 (000 - 590)
Side 2 (590 - 000)
Side 2 (589 - 506)
CALL TO ORDER
Senator Drue Pearce, Co-chair, convened the meeting at
approximately 9:12 a.m.
PRESENT
In addition to Co-chair Pearce, Senators Sharp, Phillips,
Donley, Torgerson, Parnell and Adams were present when the
meeting convened.
ALSO ATTENDING: Senators Gary Wilken and Lyda Green; Dr.
Jerome Komisar, University of Alaska; Nico Bus, Department
of Natural Resources; Richard Vitale, staff to Senator
Parnell; Margaret Pugh, Commissioner, Department of
Corrections; Janet Clarke, Director, Division of
Administrative Services, Health and Social Services; Jim
Nordlund, Director, Division of Public Assistance,
Department of Health and Social Services; Karen Perdue,
Commissioner, Department of Health and Social Services;
Mike Greany, Director, Division of Legislative Finance; Dave
Tonkovich, Gretchen Mannix, Jim Hauck, Susan Taylor, Fiscal
Analysts, Division of Legislative Finance; and aides to
committee members and other members of the legislature.
SUMMARY INFORMATION
CS FOR HOUSE BILL NO. 75(FIN) am(brf sup maj pfld)
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making an
appropriation under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
CS FOR HOUSE BILL NO. 76(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated comprehensive
mental health program; and providing for an effective
date."
Co-chair Pearce convened the session and reviewed
subcommittee report summaries. She further noted that
Saturday the committee would review amendments.
University of Alaska was reviewed by Senator Adams and he
noted in particular items of intent discussed in the
subcommittee. They were: 1. implement budget reduction
(passed unanimous); 2. freeze or lower tuition (failed);
and 3. review expenditures for state appropriated research
(passed unanimous). He then moved to incorporate the
University budget into HB 75 and HB 76. There followed a
short discussion with Senator Lyda Green regarding her memo
to SFC members on ASTF and that they need to work with the
University regarding this matter. Dr. Jerome Komisar was
also invited to join the committee and he felt the research
station and protection of the agricultural program was a
priority. He said the role of education was very important
in this state and it was our duty to educate our own people
rather than offering the best jobs to those out of state.
Co-chair Pearce hearing no objection adopted the University
budget summary into HB 75 and HB 76.
Alaska Court Systems was reviewed by Senator Parnell. He
moved to incorporate the Court budget into HB 75 and HB 76.
Co-chair Pearce hearing no objection adopted the Court
budget summary into HB 75 and HB 76.
Department of Natural Resources budget was introduced by
Senator Parnell. He said the three most difficult areas to
reduce were mining, geology and water. During the interim
they will work on a long-term plan for agriculture. He
moved for incorporation of the DNR budget into HB 75 and HB
76. Mr. Nico Bus was invited to join the committee to
answer questions by Senators Adams and Sharp. Co-chair
Pearce hearing no objection adopted the Department of
Natural Resources budget summary into HB 75 and HB 76.
Department of Corrections budget summary was introduced by
Senator Jerry Ward. He said four new BRU's were created:
1. existing community residential centers; 2. use of soft
beds; 3. new community residential centers; and 4. Pt.
MacKenzie prison farm. The department was advised how to
make cuts, but he noted that they would have to have some
flexibility. Senator Donley requested a more specific list
involving the cuts. Senator Sharp moved the Department of
Corrections budget summary be incorporated into HB 75 and HB
76. There followed a brief discussion with Commissioner
Margaret Pugh and Director Bob Cole. Co-chair Pearce
hearing no objection adopted the Department of Corrections
budget summary into HB 75 and HB 76.
Department of Health and Social Services budget summary was
introduced by Senator Parnell. He explained the three
priorities: 1. access to basic health for the poor and
elderly (medicaid); 2. better protection and care for
children; and 3. increase funding for criminal justice for
juveniles. Senator Phillips then explained welfare reform.
He noted recommendations on funding three budget components:
1. ATAP benefits reduced $3.7 million; 2. Alaska Work
Programs reduced $1 million; and 3. child care. Senator
Adams noted the problems with the overall HSS budget. He
said the decrease in Alaska work programs and child care
would cause hardships in rural Alaska. Public assistance
reduction, general relief assistance and 48-hour maternity
care were also cause for concern. Senator Sharp asked about
federal regulations and mandates and if they were in place
now. Commissioner Karen Perdue said they should know on
those by 15 April. Director Janet Clark and Jim Nordlund
were also invited to join the committee and answered
questions from the committee. Another concern of Senator
Adams was to keep the Juneau lab functional until a new lab
could be completed. Commissioner Perdue said there were no
present plans but that it would be very difficult to close
the Juneau lab. Senator Phillips referred to a letter of
intent which would allow the department to come back and ask
for extra funding. Since this was all new and uncharted
territory he wanted the department to have the necessary
tools to do their job. Senator Parnell moved the Welfare
Reform and Health and Social Services budget summary with
all intent language be incorporated into HB 75 and HB 76.
Co-chair Pearce hearing no objection adopted Welfare Reform
and Health and Social Services budget summary with all
intent language into HB 75 and HB 76.
Formal minutes of the meeting were not prepared as pertinent
financial information is available in Conference Committee
Reports on the FY 98 operating budget. The meeting was
recorded and handwitten log notes were taken. A copy of the
tapes and log notes may be obtained by contacting either the
Division of Legislative Finance, P.O. Box 113200, Juneau,
Alaska 99811-3200 (Phone: 907/465-3795) or the office of the
Senate Finance Committee Secretary (Phone: 907/465-2618).
ADJOURNMENT
Co-chair Pearce reviewed the evening schedule and then
adjourned the committee until 6:00 p.m.
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