HOUSE BILL NO. 135 "An Act making supplemental and special appropriations for the expenses of state government; making, amending, and repealing capital and operating appropriations; and providing for an effective date." CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR reviewed HB 135 by section. She began on section 28. (See House Finance Committee minutes 2/18/93) DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT * Sec. 28 ASMI - $196.3 thousand dollars This request would provide a general fund match to federal dollars for the overseas marketing program. * Sec. 29 ASMI - $60.0 thousand dollars FY 92 extension This request would extend the lapse date of the FY 92 balance to be used as general fund (GF) match for the federal grant contained in section 28. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS * Sec. 30 Veterans Death Gratuity - $90.0 thousand dollars This request would respond to increased claims. DEPARTMENT OF NATURAL RESOURCES * Sec. 31 Fire Suppression - $6.0 million dollars Three million dollars would provide funding in the case of a fire prior to fiscal year FY 94. The Department incurs $3.6 million dollars in fixed costs. Unused funds would lapse into the General Fund. 8 Representative Grussendorf referred to a letter submitted by the Governor to the Legislative Budget and Audit Committee requesting emergency funding for fire suppression. He noted that no emergency existed. He recalled that the Legislative Budget and Audit Committee decided not to appropriate emergency funding for possible future fire suppression needs. * Sec. 32 Land Selection Program - $641.0 thousand dollars This request is the result of the expedition of land selection in order to meet federal deadlines. * Sec. 33 Challenge Alaska Grants - This request would change the scope of a 1989 capital project grant. DEPARTMENT OF FISH AND GAME * Sec. 34 Division of Boards - $492.0 thousand dollars This request is the result of legislation enacted during the Special Session of the Seventeenth Alaska Legislature. (The original fiscal note associated with legislation passed was for $365.0 thousand dollars. There was no vehicle for passage of fiscal notes associated with legislation.) The Division of Boards has had an increase in board meetings. * Sec. 35 Division of Subsistence - $8.0 thousand dollars This request is the result of legislation enacted during the Special Session of the Seventeenth Alaska Legislature. The original request by the Division of Subsistence was $55.0 thousand dollars. * Sec. 36 King Salmon Tags - $84.3 thousand dollars This request would make vendor payments for King Salmon tags. The request is the result of new legislation. The associated fiscal note failed to be included in the FY 93 Operating Budget. Funding will be from the General Fund. * Sec. 37 Ratify and Amend Prior Year Expenditures 9 - Old appropriations that have not been corrected in the accounting system will be cleared. * Sec. 38 Fund Shift - This will replace unrealized federal receipts from a 1987 CIP appropriation for Sport Fisheries, Public Access Acquisition. Unrealized federal receipts will be replaced by an appropriation from the Fish and Game Fund of $134.7 thousand dollars. The Department of Fish and Game incorrectly identified state matching contributions. MARY LOU BURTON, FISCAL OFFICER, DEPARTMENT OF FISH AND GAME explained that state CIP funds were insufficient to match federal funds. She added that the Department failed to properly account for the state match. Section 38 will replace monies that were spent out of the General Fund with Fish and Game funds. DEPARTMENT OF PUBLIC SAFETY * Sec. 39 Contract Jails - $690.4 thousand dollars This request would meet increased operating costs. The FY 94 Operating Budget has been adjusted to include FY 93 supplemental costs. Co-Chair Larson asked for information concerning state jail contracts. C. E. SWACKHAMMER, DEPUTY COMMISSIONER, DEPARTMENT OF PUBLIC SAFETY explained that contract jails are negotiated on an annual basis. He noted that there is a state mandated responsibility for prisoners. Disputes have occurred between the State and municipality's concerning fair cost. Representative Parnell asked if costs are based on prisoner days. Mr. Swackhammer stated that there are fixed costs for each municipalities that provides the service. In addition, variables exist. KEN BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF PUBLIC SAFETY noted that contracts are not negotiated for prior to appropriation requests. Mr. Swackhammer stressed that prisoner location and prisoner days are included in cost assessments. * Sec. 40 Criminal Records and Id. - $90.6 10 thousand dollars This request represents an increase in system use. New legislation has been approved requiring applicants for teacher certification and other activities to supply fingerprint background checks. * Sec. 41 Bloodborne Pathogens - $126.7 thousand dollars This request would allow the Department to comply with requirements regarding bloodborne pathogens. The Department will purchase disposable gear and vaccines. * Sec. 42 Prisoner Transportation - $125.0 thousand dollars This request would pay for the cost of increased prisoner transportation. Costs are primarily for air transportation. * Sec. 43 Arbitration Settlement - $101.4 thousand dollars This request would pay settlement costs for arbitration involving an employee and a controlled substance. (Tape Change, HFC 93-29, Side 2) * Sec. 44 Civil Air Patrol - $125.0 thousand dollars This request is for aircraft maintenance and operation costs. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES * Sec. 45 Arbitrator's Award - $539.6 thousand dollars other funds. This request would pay for overtime of on-site construction engineers. The overtime dates back to 1991 and is the result of arbitration. BOB BARTHOLOMEW, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES clarified that engineers are not eligible for overtime under 11 federal law. During summer construction seasons engineers work from 60 - 80 hours a week. Administrative policy provided for straight time overtime for hours in excess of 37.5. In 1981, the Department implemented overtime policy which provided that employees receive: * 37.5 - 50.0 hours - no compensation, * 50.0 - 72.0 hours - compensation. Arbitrators ruled on behalf of the union that the overtime policy could not be changed without union negotiation. Mr. Bartholomew explained that the settlement has been paid to employees. The FY 93 CIP projects will be short funded if section 45 is not appropriated. Employees are classified, range 16 and 18, field engineers. * Sec. 46 Dalton Highway - $1,222.9 million dollars This request would pay for snow removal, ice control and maintenance related activities. * Sec. 47 Ratification of Prior Year Supply and Inventory Asset Account Expenditures Spoilage and breakage were not accounted for in assessing supply and inventory assets. * Sec. 48 Extend FY 93 Operating Lapse Date - This request would extend the FY 93 Operating Budget lapse date for maintenance and operations. DEPARTMENT OF ENVIRONMENTAL CONSERVATION * Sec. 49 Seafood and Sanitation Activities - $351.2 thousand dollars This request would replace unrealized program receipts. The Department did not receive approval to implement regulations assessing fees until February 19, 1993. * Sec. 50 Paralytic Shellfish Poison Inspections - $109.9 thousand dollars This request is the result of PSP infected crabs. * Sec. 51 Water Quality Standards Advisory Group - $41.4 thousand dollars This request would pay for meeting costs. 12 DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS * Sec. 52 Organizational Grant - $300.0 thousand dollars This request would pay the first year organizational grant for the Yakutat Borough. * Sec. 53 Revenue Sharing - $25.6 thousand dollars The Department of Community and Regional Affairs used incorrect population figures to calculate revenue sharing for the Central Mat-Su and Greater Palmer fire service areas. DEPARTMENT OF CORRECTIONS * Sec. 54 Operations - $6,879.4 million dollars UNIVERSITY OF ALASKA * Sec. 55 UAF Snow Removal - $375.0 thousand dollars ALASKA COURT SYSTEM * Sec. 56 Mental Health Trust Case Law Clerk - $19.9 thousand dollars Mental Health Trust This request would add a law clerk to assist Judge Green with the backlog involved in the Mental Health Trust Case. MULTIPLE DEPARTMENTS * Sec. 57 Miscellaneous Claims and Stale-Dated Warrants - $159.6 thousand dollars This request would settle claims and billings that are more than two years old for the Department of Administration, Department of Health and Social Services, Department of Labor, Department of Public Safety, Department of Transportation and Public Facilities, Department of Corrections and Department of Military and Veterans Affairs. HB 135 was HELD in Committee.