Legislature(1997 - 1998)
04/21/1998 04:45 PM 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 21 April, 1998 4:45 p.m. TAPES SFC 98 # 134, Side A (000-212) CALL TO ORDER Senator Drue Pearce, Co-Chair, re-convened the meeting at approximately 4:45 p.m. PRESENT In addition to Co-Chair Pearce, Senators Sharp, Torgerson, Adams and Parnell were present when the meeting was convened. Senator Donley arrived shortly thereafter. Also Attending: NANCY SLAGLE, Director, Division of Administrative Services; MIKE GREANY, Director, Division of Legislative Finance; JIM HAUCK, Fiscal Analyst, DLF; DAVE TONKOVICH, Fiscal Analyst, DLF; and aides to committee members and other members of the Legislature. SUMMARY INFORMATION SENATE BILL NO. 229 "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." SENATE BILL NO. 230 "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." Senator Torgerson, chair of the Department of Transportation and Public Facilities Senate Finance Subcommittee gave a final report to the full Senate Finance Committee. The subcommittee membership was made up of Senators Torgerson, Taylor and Hoffman. In their report, the subcommittee proposed incorporating in the budget, a reduction in lapse extension funds that DOT&PF had continued to show in their budget. According to Senator Torgerson, instead of subtracting the funds out, the funds would carry over from FY97 that were used last year. He explained that the department dropped the federal authority but kept the general fund portion. Therefore, the budget would reduce individual components by $828.7 general fund, $83.8 general fund program receipts, $50.0 federal expenditure authority and $320.3 capital expenditure authority. This totaled a capital reduction of $1,282,800 as shown in provided backup. Senator Torgerson noted another reduction to the statewide Division of Information Services network by $54.6. The agency allocated $37,300 in general funds as part of the Statewide DIS Network Reallocation. The department then increased that to $91.9 general funds and was in fact, an in-house DIS adjustment, he explained. The subcommittee was therefore reducing the amount back to the original DIS request. He continued his report, telling the full committee that the Office of Management and Budget came to the subcommittee with a technical amendment to correct an error in the northern region. That change had been incorporated into this report. The subcommittee then denied Item #4, the increment in the Central Region classified as National Pollutant Discharge Elimination System. Senator Torgerson reminded the committee of an overview by the department where they talked about the $500,000 general funds to be used to monitor the street drains and runoffs in certain locations in the Anchorage area. The subcommittee felt that because this was a federal mandate, it should be paid for with federal funds. The subcommittee therefore requested the half million dollars, plus the appropriate state match, be included in the capital budget. The last subcommittee recommendation was to adopt a reconfiguration with the components broken down as listed by the subcommittee so all administration and support services, regardless of the region, would be shown under Administration. The same breakdown would be shown for planning, design and engineering. The intent was that the budget could be looked at and the total component would be easily discerned. Senator Torgerson had a copy of how the layout would look. He stressed that it wouldn't reduce any funding, it was just a different way of showing the components in the budget document. Senator Torgerson offered a motion for the Senate Finance Committee to adopt the DOT&PF subcommittee report into the working document of SB 229 and SB 320. Senator Adams objected. Senator Adams spoke to his objections saying his first concern was that committee members just received the paperwork and he did not have an opportunity to review the changes. He wasn't yet able to determine the impact to the department. His strongest concern was for item five. He felt it was fine to show the components and functions of each area, however, the Northern region might lose money. He wanted assurance that his region would still get the same amount of money arguing that it worked out of the Fairbanks area. Would the Northern region lose any money on functions such as administration, or was the format just to show the full amount of expenditures, he asked. Senator Torgerson responded to Senator Adam's concerns, saying the subcommittee took the same dollar amount as requested in the budget. The only way the region might lose money would be that under this system, the department was limited on its ability to shift money from component to component. If the department wanted to take money from administration and spend it on aviation costs, they wouldn't be able to do that, he gave as an example. Under the existing system, the department could make those shifts because projects were reported in big blocks and they had the opportunity to move money within the blocks. He stressed that the subcommittee was not reducing any funds to DOT&PF except for the lapse funds and the DIS funds. Senator Sharp guessed that Senator Adam's concern was, for example, under Item #5 under Administrative Support, a total amount would be listed, but would there also be a breakdown for each region. He shared that concern. Senator Torgerson replied that each total would have a series of breakdowns listing regions. He qualified that while this information wouldn't be detailed in the actual bill, the budget document would contain the breakdowns. Senator Sharp noted that in the bill the figures were listed by region. He agreed with the subcommittee that it was difficult to figure where all the funds were allocated. Senator Torgerson requested JIM HAUCK, Fiscal Analyst from the Division of Legislative Finance, speak to the issue. The senator began the explanation showing a sample provided by the DLF and talking about how the funds would be allocated to a specific region, but could be shifted within that region. He stressed his belief that this method was a good way to look at the components and determine total amounts spent with the breakdown of the specific area. While he was speaking, a member of his staff handed out copies of the aforementioned sample. Senator Adams referred to the handout and expressed inability to find appropriations for Northern Administrative Services. He felt it was confusing. Mr. Hauck joined the discussion explaining that the agency, in the Governor's amended budget, had zeroed out that component in their reorganization of Southeast Region and the Marine Highway System. He continued saying that the division had to show those components as part of the original budget package but that they were zeroed out in the Governor's amended version. There was no further discussion, Senator Adams maintained his objection and Co-Chair Pearce requested a roll call. The DOT&PF portion of the budget was adopted into the working document by a vote of 5-1-1. Senator Adams cast the nay vote and Senator Phillips was absent. Senator Torgerson shared with the committee that the subcommittee held a meeting earlier in the day on the components that remained open. He emphasized that it was probably the best meeting he ever had with DOT&PF. The meeting would continue the next morning and he hoped to have an implementable plan for the Southeast region. He envisioned the full committee would be able to close the budget out in the afternoon. Co-Chair Pearce announced bills that had been noticed would be held until the next morning. At that meeting, the committee would begin with the budget closeout for the Department of Administration and then work on the bills. SENATE BILL NO. 344 "An Act relating to the development of telecommunications systems by state agencies." Senator Sharp announced that he received a subcommittee report for SB 344 with a recommendation that no further action be taken on the bill. Senator Adams asked if there would be a committee substitute. Senator Sharp said there would not. ADJOURNMENT Co-Chair Pearce adjourned the meeting at approximately 5:00 p.m. SFC-98 (5) 4/21/98 p.m.
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