HOUSE BILL NO. 100 "An Act making and amending capital, supplemental, and other appropriations, and appropriations to capitalize funds; ratifying certain expenditures; and providing for an effective date." Co-Chair Mulder MOVED to adopt Amendment #16 which would restore the funding for remodeling newly acquired space in the same building now occupied by the Public Defender, thereby, saving additional costs of establishing a full support system for offices separate from the current space. [Copy on File]. There being NO OBJECTION, Amendment #16 was adopted. Representative Williams MOVED to adopt Amendment #17 which would add $70 thousand general fund program receipt dollars to the Department of Transportation and Public Facilities, Division of Design and Engineering Services for utility permit issuance. [Copy on File]. Co-Chair Therriault asked where the program receipts would be generated from. DAN SPENCER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND BUDGET, stated that they would come from utilities. He noted that the Department of Transportation and Public Facilities does support the amendment. There being NO OBJECTION, Amendment #17 was adopted. Representative Bunde WITHDREW Amendment #18. [Copy on File]. Representative Bunde MOVED to adopt Amendment #19, which would reappropriate $430,300 in federal indirect receipts which would be used as State funds for the Child Support Enforcement Division (CSED) shortfall. [Copy on File]. GINGER BLAISDELL, FISCAL ANALYST, LEGISLATIVE FINANCE DIVISION, pointed out that there is a new Amendment #19 which would replace the original Amendment #19. [Copy on File]. The original Amendment #19 does not show the federal receipt portion. The new Amendment #19 includes federal receipt dollars. The total supplemental request for CSED would be $852,189 dollars. Representative Bunde WITHDREW the MOTION to MOVE the original Amendment #19. There being NO OBJECTION, it was withdrawn. Representative Bunde MOVED to adopt the NEW Amendment #19. There being NO OBJECTION, it was adopted. Mr. Spencer asked to speak on the record regarding timing of program receipts. He stressed that the Department of Revenue will not know for certain the full amount of program receipts until after June 30, 1999. He reiterated that the number before the Committee was a projection. If the funds do not come in at this level, an over expenditure will be shown for CSED. Co-Chair Therriault questioned the charge-back recalculation for the Department of Administration. Mr. Spencer explained that the Department establishes the rates approximately 16 months in advance. They implemented a new version of the CICS, mainframe computer system software. A rate adjustment has been made based on which costs actually need recovering. Representative Grussendorf MOVED to RESCIND action taken on Amendment #5. Representative Bunde OBJECTED. Representative Grussendorf voiced concern with the Committee not funding power cost equalization (PCE) in the rural areas. Representative Bunde replied that he supported research on whether power cost equalization should be continued and if it was continued, how it would be financed. Representative J. Davies stated that for several years, the Legislature has funded PCE at the 85% level and that there has been a reasonable expectation in rural Alaska that it would continue to be funded at that level. He added that the Blue Ribbon Commission has indicated that there is enough money in that program to cover the request at that level. He stated that to force a change before there has been discussion would be premature. Representative Austerman voiced concern that the Department had not prorated PCE costs, which might suggest that it would be the responsibility of the Department. Representative J. Davies pointed out that the Department was addressing it in the same manner they have in the past two years. Representative Moses pointed out that there has been a lot of money spent on hydroelectric power and various types of power in urban areas. Many taxpayer dollars have been spent on getting inexpensive power to those areas. He exclaimed that there must be a program established to get inexpensive power to the rural area, whether it be thermal, hydro or wind turban. Representative Moses emphasized that until inexpensive power is achieved in the rural areas, it is paramount that the State continues to fund PCE. Representative Kohring noted that by continuing to fund PCE, the State would not be accomplishing any sustainable plan of development. Representative J. Davies agreed that there does need to be a plan, however, what is being requested at this time is supplemental money to help the rural area get through until the end of the fiscal year. He emphasized that money exists in the power cost equalization fund to cover the expense and that it should be used for that purpose. A roll call vote was taken on the motion. IN FAVOR: J. Davies, Foster, Grussendorf, Moses, Williams OPPOSED: Bunde, G. Davis, Kohring, Austerman, Therriault, Mulder The MOTION FAILED (5-6). Representative Moses MOVED to RESCIND action taken on Amendment #8. Co-Chair Therriault OBJECTED. Representative Moses affirmed that this area has received a triple hardship, including an economic and natural disaster. These areas are hurting and their local government revenues are down. That money is needed now! In the more removed areas, supplies often take up to 6 weeks in shipment. Representative Moses pointed out that this disaster would eventually affect the entire State. Co-Chair Mulder suggested that the request would be better placed in the capital match grant program. He believed that, as a supplemental for emergency disaster would be stretching the concept of supplemental funding. Co-Chair Mulder stated that the money would not provide direct relief for these people as much as it would be providing community improvement projects. Representative G. Davis advised that capital projects would require dollars to sustain the maintenance and upkeep. He pointed out that such projects would require additional local dollars in the future. Representative Grussendorf compared this disaster to the Millers Reach fire disaster, pointing out how the State came forward to address that concern. He commented that now there is an opportunity for the State to address the disaster in the fishing areas, however, the Legislature is not coming forward to take care of village economy. Representative Kohring suggested that much of the monies in the Millers Reach fire came through private funding such as the Red Cross and United Way. Representative J. Davies stated that the nature of this request would not necessarily be a "capital project". The funding would be used to provide wages and help to those families so that they could make it through this time when fish are not available. The primary purpose of this funding would act as an alternate source of income to help these people "survive". Representative Grussendorf added that with passage of the supplemental, these people would then have the supplies necessary for the upcoming fishing season. Co-Chair Mulder suggested that if funding was provided now, the request would probably come back again in May in the capital matching grants. Co-Chair Mulder voiced concern regarding how the State should deal with economic disasters. He foresaw that the commercial fishing industry is in for some difficult years. He believes that there will be expectation the State, and that by funding the supplemental would not be a prudent way to address the magnitude of the concern. Representative Williams suggested that it could be better for the fishing villages to receive funding at the end of the summer season. Representative Moses stressed that this funding was needed months ago. These areas sometimes go 1.5 months without a barge. He reiterated that the concern needs to be addressed and coordinated soon. A roll call vote was taken on the motion. IN FAVOR: J. Davies, Foster, Grussendorf, Moses OPPOSED: G. Davis, Kohring, Williams, Austerman, Mulder, Therriault Representative Bunde was not present for the vote. The MOTION FAILED (4-6). (Tape Change HFC 99 - 43, Side 2). Co-Chair Therriault MOVED to report CS HB 100 (FIN) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. CS HB 100 (FIN) was reported out of Committee with "no recommendations".