HOUSE BILL NO. 55 "An Act making appropriations for the operating and loan program expenses of state government and to 1 capitalize funds; and providing for an effective date." Co-Chair Larson reviewed the full committee close out and amendment process. Representative Brown stressed the need for a statewide teleconference on HB 55. She stated that public comment was not taken during some department subcommittee meetings she attended. Representative Parnell and Representative Martin asserted that public testimony was taken at the meetings they chaired. Representative Navarre emphasized that not all House Finance Committee members were able to hear the public testimony provided during subcommittee meetings. Members discussed the need for public hearings and comment. Members considered means of distributing budget information to the public. Representative Navarre noted that the format of HB 55 is difficult to understand. He emphasized the need to summarize subcommittee changes. Co-Chair Larson decided to hold a meeting on March, 20, 1993, to allow public testimony on HB 55 and proposed amendments to HB 55. DEPARTMENT OF ENVIRONMENTAL CONSERVATION The Department of Environmental Conservation budget subcommittee consisted of Chair Therriault with members Representatives Brown, Davis, Finkelstein and Parnell. Fourteen meetings were held in February and March, and the budget was closed on March 15th. Representative Therriault provided members with a Transaction Summary for Governor to House (Attachment 1). Representative Therriault explained that the target General Fund reduction was $1,185 million dollars. The DEC agency summary shows a reduction of $1,040 million general fund dollars, a $165.2 thousand dollar reduction in general fund match, and an increase in program receipt authority of $444.4 thousand dollars. This is a reduction of $760.8 thousand dollars, or 4 percent, in total general fund expenditures. The subcommittee recommended reductions in Response Fund expenditures and Storage Tank Assistance Fund expenditures. Representative Therriault observed that the transaction summary shows the subcommittee's recommendations and the transactions that were required to return DEC's budget to a project budget. DEC originally submitted their budget in a regional format, the budget was returned to the FY 93 format. The subcommittee felt that a regional format created an accountability problem for the Legislature. 2 Representative Therriault observed that there are adjustments to be made regarding the position count on the transaction summaries. There are still some positions to be reconciled with the Department. Representative Therriault reviewed the transaction summaries: 1. Commissioner's Office: There was a $20.0 thousand dollar reduction in contractual for the John Freshman lobbyist contract. This contract was previously split between the Governor's office and DEC. The Subcommittee felt that as a matter of policy, the contract should be handled through the Governor's office. There was a $7.5 thousand dollar reduction in travel. 2. Administrative Services: There was a $7.5 thousand dollar reduction in travel. There was a $13.3 thousand dollar reduction in library services. This eliminates subscription contents service and a part-time college intern position. There was a $60.0 thousand dollar reduction in accounts payable. This eliminates an accounting technician I. Slowdowns in payments to vendors may result. There was a $34.4 thousand dollar reduction. This changes an administrative personnel position from PFT to PPT. Environmental Quality Representative Therriault noted that the rest of the transactions on page 1 (lines 3 and 5) are the result of reformatting the Department of Environmental Conservation, budget back to a program format. He observed that SERO is the Southeast Regional Office, SCRO is the Southcentral Regional Office, NRO in the Northern Regional Office, PCRO is the Pipeline Corridor Regional Office. 6. Environmental Quality Director: There is an unidentified general fund reduction of $400,000 thousand dollars to the Environmental Quality Director component. The Governor has submitted an amendment to reduce this to $200,000 thousand dollars. 3 There is a $30.0 thousand dollar reduction in the Director's Office, for the Freshman contract. This is the only transaction under the Environmental Quality Director's component that was a recommendation of the subcommittee. 7. Monitoring and Lab Support This component was restructured by the Subcommittee. 9. Drinking water: There is a $ $7.1 thousand dollar reduction in the Drinking Water Program. This was offered as part of the 1 percent reduction scenario, reductions will be in travel and equipment. 4 10. Waste Water and Water treatment: There is a $158.0 thousand dollar general fund reduction in Domestic Waste Water with a $144.4 thousand dollar increase in program receipt authority. The Department will maintain its certified installer program, the program receipts will be realized by raising fees from $250 dollars to $320 dollars for septic system certification. The Department will continue to work with lending institutions and private engineers to privatize this program. The Subcommittee Chair recommends that this program be turned over to the private sector in FY 95. There is a $300.8 thousand dollar general fund reduction in Industrial Waste Water, with an increase of $300.0 thousand dollars in program receipt authority. The Department feels their program receipt authority was underestimated for FY 94. 11. Solid and Hazardous Waste Management: There is a $10.1 thousand dollar reduction in the Solid and Hazardous Waste component to be taken in travel and equipment. This was offered in the 1 percent reduction scenario from the Department. The $80.0 thousand dollar reduction in Solid Waste is for "Dump Day". This $80.0 thousand dollars was allocated to Solid Waste from the Hazardous Waste program, but was the lowest priority for the reallocation of Hazardous Waste funds. 12. Air Quality Management: This component was part of the budget structure change. 13. Water Quality Management: The $22.4 thousand dollar reduction in Water Quality Management, was proposed in the Department's 1 percent reduction scenario and will be taken in travel and equipment. Lines 15-19: These components are budget structure transactions. Spill Prevention and Response 5 20. Director's office: There is a $8.6 thousand dollar reduction in Response Funds for travel. There is a $189.3 thousand dollar reduction in the Response Fund for Geographic Information System (GIS). The GIS program will be implemented in phases. 23. Contaminated Sites: There is a $285.0 thousand dollar Response Fund reduction for contaminated site work. The Director of SPAR indicated this reduction could be managed in the Contaminated Sites Section. There is a $3.6 thousand dollar Response Fund reduction in Legal Services. New procedures have been instituted to reduce Legal Services costs. A full-time position was approved to assist the Department's paralegal. There is a $1.0 thousand dollar Response Fund reduction for Environmental Crimes. The Department believes small reductions in Environmental Crimes are manageable. There is a $2.2 thousand dollar Response Fund reduction in State and Regional Planning and Training. Training may be delayed for future fiscal years. There is a $22.0 thousand dollar Response Fund reduction in lab sampling and analysis. Preliminary investigation and assessment costs may be charged to projects or the Spill Reserve. This may cause delays in sampling through the Department of Environmental Conservation's lab. There is a $834.6 Response Fund reduction in state lead site cleanup. This leaves $800.0 thousand dollars. There is a $3.9 reduction in travel. There is a $32.0 thousand dollar reduction in general fund match for Contaminated Sites. The match can be made with Response Fund expenditures without an increase to the Governor's request. 24. Storage Tank Assistance Program: There is a $133.2 reduction in general fund match for the Storage Tank Assistance Fund. The match can be 6 made with proposed Storage Tank Assistance Fund expenditures. There is a $200 hundred dollar Response Fund reduction in the Environmental Crimes component. There is a $5.0 thousand dollar Response Fund reduction for lab sampling and analysis. There is a $21.0 thousand dollar reduction to Claims Processing. The Department hopes to develop internal efficiencies. The $16.0 thousand dollar reduction is from the Storage Tank Assistance Fund (STAF), $5.0 thousand dollars is from the Response Fund. The $42.0 thousand dollar reduction eliminates the toll-free hotline. There is a $24.2 thousand dollar reduction in STAF, and a $17.8 thousand dollar reduction in the Response Fund. There is a $4.1 thousand dollar Response Fund reduction in Impact Analysis. The Department of Environmental Conservation is looking into the impact of receiving state delegation (primacy) of the Underground Storage Tank program. This reduction leaves $20.9 thousand dollars of federal funds for the project. There is a $110.8 thousand dollar reduction in STAF. This eliminates funding for the Board. The Legislative Budget and Audit Committee has proposed legislation that would sunset the Board in 1994. House Bill 110 could be amended to sunset the Board immediately, and allow LUST appeals to be handled by the Commissioner's office. The Department does not object to this proposal. There is a $2,000.0 million dollar reduction in STAF for Grants. This will leave $4,000.0 million dollars for grants. Since the federal deadline for compliance has been pushed back to 1998, there is not the immediate need to continue funding at the $6,000.0 million dollar level. Administratively, the Department cannot process any more than $6,000.0 million dollars in grants per year. Industry Preparedness There is a $7.8 thousand dollar Response Fund reduction in Legal Services. Internal efficiencies are reducing legal costs. There is a $6.5 thousand dollar Response Fund reduction 7 in Environmental Crimes. The Department believes small reductions in Environmental Crimes are manageable. There is a $5.0 thousand dollar Response Fund reduction in State and Regional Planning and Training. There is a $1.0 thousand dollar Response Fund reduction in Laboratory, Sampling and Analysis. Preliminary investigation and assessment costs may be charged to projects or the Spill Reserve. Delays in sampling through the Department of Environmental Conservation lab may occur. There is a $186.0 thousand dollar Response Fund reduction in structural integrity. The Subcommittee recommended owners and operators fund regular inspections by contractors. The Subcommittee proposes that the Department of Natural Resources be required to include inspections in their leases. The Subcommittee requests that the Department of Natural Resources notify the Department of Environmental Conservation of potential problem areas. Normal inspections under the Industry Preparedness Program should reduce any safety threat. There is a $11.6 thousand dollar Response Fund reduction in travel. The Department believes the reductions in travel are manageable. Government Preparedness There is a $5.9 thousand dollar Response Fund reduction in Legal Services. There is a $3.8 thousand dollar Response Fund reduction in Environmental Crimes. There is a $5.5 thousand dollar Response Fund reduction in State and Regional Planning and Training. There is a $51.0 thousand dollar Response Fund reduction in Hazards Analysis. This leaves $41.5 for identifying hazards in areas without Local Environmental Planning Commissions (LEPC). Information regarding hazards identified by LEPC's would not be able to be consolidated by the Department of Environmental Conservation. There is a $7.0 thousand dollar Response Fund reduction for Lab Sampling and Analysis. There is a $13.5 thousand dollar Response Fund 8 reduction in the Remote Sensing Workshop. Technical review and evaluation could be continued through the University of Alaska. There is a $500.0 thousand dollar Response Fund reduction in the Near Shore Demonstration Project. There is a $800.0 thousand dollar proposal in the Department of Military and Veterans Affairs' budget to provide Depots and Corps. There is a $60.3 thousand dollar Response Fund reduction for the Spill Technology Review Council. This eliminates staff support and associated costs for the Review Council. This will eliminate maintenance of technology databases and consistent representation on the American Society for Testing and Materials coordination. There is a $1,200.0 million dollar reduction in Response funds. This eliminates all funding for the LEPCs. The State is not under legal requirement to fund the LEPCs. Representative Therriault asserted that LEPCs have not coordinated their efforts with local governments. He pointed out that the Department recommended appropriations be reduced to $600.0 thousand dollars. He stated that he received information that the LEPCs could sustain a fifty percent reduction. (Tape Change, HFC 93-48, Side 2) There is a $36.6 thousand dollar reduction in travel. International Spill Prevention and Response There is a $117.0 thousand dollar reduction in International Spill Prevention and Response. The appropriation was to provide funding for the Department's participation in fostering cooperative international efforts addressing spill prevention and response. There may be a federal grant to fund this component. Environmental Health 28. Environmental Health Director: There is a $5.0 thousand dollar general fund reduction for the Freshman contract (DC Lobbyist). There is a $2.1 thousand dollar general fund reduction 9 to Library Services. This is a department wide library. 29. Animal Health and Dairy Industry: There is a $1.6 thousand dollar general fund reduction for Library Support Services. 10 31. Seafood Industry There is a $16.0 thousand dollar general fund reduction. This necessitates a lower level of technical assistance to industry. This reduction leaves $1,702.7 million dollars in the Seafood component. This is still an increase over FY 93 authorized, which was $1,681.2 million dollars. There is a supplemental request of $351.2 thousand dollars.) 32. Sanitation There is a $15.7 thousand dollar general fund reduction. This reduces technical assistance and inspections. The $53.9 thousand dollar reduction eliminates the general fund increment, from Hazardous Waste to Alaska Food Product Inspections. The total reduction to Sanitation is $69.6 thousand dollars. This leaves $1,502.5 million dollars in the Sanitation component. This represents a reduction of $260.6 thousand dollars from FY 93 Authorized. There was a $244.9 thousand dollar reduction of excess program receipt authority. This is an increase over FY 92 Actual of $62.3 thousand dollars. 33. Palmer Lab There is a $8.0 thousand dollar general fund reduction for lab supplies. There is a $100.0 thousand dollar increment reduction from Hazardous Waste for paralytic shellfish poison (PSP) and domoic acid testing. The Subcommittee believed that a $200.0 thousand dollar increment was sufficient. Reductions leave $1,043.9 million dollars for the Palmer Lab. The FY 93 authorized was $909.2 thousand dollars, with a supplemental request of $109.9 thousand dollars. The proposed reductions would still leave the lab with an increase of $24.8 over FY 93 with the supplemental amount. Governor request for FY 94 was $1,151.9 million dollars. Facilities Construction and Operations There is a $26.0 thousand dollar reduction in contractual audits. This contract was not issued in FY 11 93. The Department offered this reduction in their 5 percent scenario. There is a $10.0 thousand dollar reduction in Research and Development Seminar. The University of Alaska will have to pick up entire cost of the seminar. There is a $15.0 thousand dollar misc. contractual reduction. (5.0 thousand dollar reduced for DC lobbyist contract) There is a $35.9 thousand dollar reduction which deletes the graduate intern position. This is a seasonal position. Representative Martin expressed concern that the Legislature has an obligation to capitalize the 470 Fund at $50 million dollars. He asked if the Fund will be capitalized or if it will be continue to be spent on questionable projects. Representative Therriault replied that it will be difficult to stop expenditures from the 470 Fund without a change in statutes. He observed that industry understood that there would be a portion of the 470 Fund spent yearly on the Department of Environmental Conservation's operational budget. Representative Martin asked the status of the interest generated by the 470 Fund. JOHN A. SANDOR, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION clarified that the interest is deposited in the General Fund. Co-Chair MacLean asked for a list of contaminated sites in Alaska and applications for Storage Tank Assistance Grants. Representative Grussendorf expressed concern with reductions to rural maintenance workers. He felt that emergency situations would result if rural maintenance workers are not sufficiently funded. Representative Therriault clarified that the Department recommended a $13.9 thousand dollar reduction under the Subcommittee's 1 - 5 percent reduction scenario. He explained that the Subcommittee wanted to know if areas of the State could be removed from the program. The Subcommittee did not reduce this component. Representative Brown observed that the Department of Environmental Conservation's budget is being reduced by 7 percent. She noted that in some cases program receipts which will be used to offset reductions are dependent on adoption of regulations. She emphasized that the Subcommittee further reduced funding for the Department 12 through reductions in the Response Fund and the Storage Tank Fund. She asserted that over all reductions will have a "very detrimental effect" on the Department. She referred to the Seafood Inspection Program which will be reduced by $153.9 thousand dollars. She maintained that the whole live crab industry is being jeopardized. She noted that the Environmental Protection Agency (EPA) has indicated that there will be problems with the reductions. STEVEN A. TOROK, CHIEF, STATE OPERATIONS SECTION, UNITED STATES ENVIRONMENTAL PROTECTION AGENCY provided members with written testimony (Attachment 2). He stressed that reductions to the Storage Tank program "will severely reduce Department of Environmental Conservation's ability to obtain EPA delegation of the Underground Storage Tank (UST) program." He added that the Department of Environmental Conservation's ability to maintain state control of Public Drinking Water and Solid Waste programs will be indirectly affected. He emphasized that reductions in the Hazardous Waste program will "leave Alaska one of only four states nationally not to have state authorization for the management of hazardous waste." He observed that, "reductions in the Industrial Waste Water program will severely inhibit any meaningful consideration on the part of the state for assuming the BPDES program in addition to delaying federal action on individual permits." JOHN Sandor, COMMISSIONER, DEPARTMENT OF ENVIRONMENTAL CONSERVATION reviewed the subcommittee process and expressed appreciation for the work of the Subcommittee (Attachment 3). He emphasized that the Department of Environmental Conservation receives less than one percent of general fund appropriations. He stressed that the State's primacy in Drinking Water and Solid Waste will be jeopardized by the Subcommittee's reduction. He observed that the EPA is not able to manage problems on a state by state basis. He referred to the Healy project. He stressed that the EPA model would not have allowed the permit for the project to be issued. Commissioner Sandor noted that the public has expressed dissatisfaction with user fees. He maintained that the Department supports the user fees initiated in FY 93. He asked the Committee to include intent language to emphasize the purpose of the user fees and encourage local governments to administer programs whenever possible. He assured members that the Department of Environmental Conservation is "implementing a partnership with federal government agencies to bring safe water, sanitation and solid waste facilities to all Alaskans." He pointed out that the United States Coast Guard has issued notice to 75 -100 communities that the discharge of fuels into substandard tanks will not be 13 permitted. He added that there are approximately 400 tanks that need to be addressed at a cost of $150 - $200 million dollars. This does not include clean up of sites. Commissioner Sandor informed members that the Department is asking the federal government to match state funding for water/sanitation. He addressed the Remote Maintenance program. He clarified that the Department did not recommend a reduction to the program. He stated that the Department has requested an additional position. He noted that the Department indicated that the federal government should provide the position and 4 to 5 more positions to aid the Remote Maintenance program. Commissioner Sandor provided members with back-up information regarding the impact of the House proposed FY 94 budget reductions for the Department of Environmental Conservation (Attachment 4). Representative Navarre asked the State's liability in not cleaning contaminated sites. He expressed concern with reductions for contaminated site cleanup. He emphasized that the issue is basic public protection. He did not feel that funding from the 470 Fund should be limited. He argued that the intent was not to build a Fund of $50 million dollars. He stressed that there was an intent to capitalize the Oil and Hazardous Response Fund. He maintained that a reduction of the Contaminated Site program does an injustice to residents of the State of Alaska. Commissioner Sandor added that the ultimate liability is the damage to the environment and spread of the contamination. He noted that the balance in the 470 Fund was: 1991 - $6 million dollars 1992 - $12 million dollars 1993 - $24 million dollars Representative Hoffman spoke in support of an increase in the Remote Maintenance Workers program. He observed that there is $1.2 -$1.4 billion dollars of work to be performed in rural Alaska to bring water and sewer facilities up to date. He asked how the Department will address the fuel storage tank problem. Commissioner Sandor stressed that the Alaska Energy Authority, the Department of Environmental Conservation and the Department of Community and Regional Affairs will work with the Coast Guard for short and long term solutions. He noted that bladders may be used in existing tanks. He relayed that the one year moratorium will be extended. 14 Representative Hoffman noted that the Legislature approved $5 million dollars for below ground storage tanks in urban areas and $2 million dollars for above ground storage tanks in rural areas. He emphasized the need to address the problems of fuel storage tanks. He observed that additional spillage will be more costly. Representative Martin asked if there is a procedure that state agencies must follow to determine if purchased land is contaminated. Commissioner Sandor observed that finanacial institutions require that property be inspected prior to conveyance. Hidden contamination remains the responsibility of the seller. He noted that the Department has agreements with other agencies to inspect possible land conveyances for contaminated sites. Representative Grussendorf referred to the reductions for PSP/domoic acid testing in the crab industry. Commissioner Sandor clarified that the Department did not recommend a reduction in this component. Representative Grussendorf felt that the crab industry would be in jeopardy by the reduction. Representative Therriault clarified that the Department did propose a small reduction in the Remote Worker component as part of the 1 - 5 percent reduction scenario. He added that the Subcommittee deleted the general fund match from the Storage Tank Assistance component. The Department was given the discretion to offset additional program receipts in Industrial Waste Water or in the Solid Waste component. The Department elected to put the funds into Solid Waste. The only reduction to the Solid Waste component is $80.0 for dump days and $10.1 for travel and equipment. He noted that the Subcommittee approved $200.0 of a $300.0 request for PSP. (Tape Change, HFC 93-49, Side 1) Representative Therriault MOVED to INCORPORATE the House Finance Subcommittee's recommendations for the Department of Environmental Conservation. Representative Brown OBJECTED. Representative Brown stressed that reductions to the Department of Environmental Conservation's budget will dramatically impact industry, economic development, rural health and sanitation. She emphasized that the State's ability to control regulatory programs and resources are in question. She suggested that the Subcommittee reprioritize reductions with a reasonable cap in line with reductions made to other departments. Co-Chair Larson stated that deliberations by the full 15 committee will not be restricted to caps. He noted that, "you don't know if its fat or bone until you try to seek it out." He stressed that, "if we have dug too deep into the bone, I'm sure we can correct it." A roll call vote was taken on the motion. IN FAVOR: Foster, Grussendorf, Hanley, Hoffman, Parnell, Therriault, Larson, MacLean. OPPOSED: Brown, Navarre The MOTION PASSED (9-2). DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES The House Transportation Budget Subcommittee was composed of Chair Foster with members Representatives Sanders, Williams, Phillips, Mulder, Menard, Mackie and Navarre. Representative Foster observed that the target amount given to the subcommittee was $1.921 million dollars below the governor's proposed FY 94 Budget. He stressed that committee members were concerned that maintenance on roads and airports not be reduced. He pointed out that since 1986 the Department of Transportation and Public Facilities has been reduced by 501 persons. The administrative components have been reduced by 278 persons. Of those 118 were range 18 or above, Managerial, and 160 were blue collar positions. There has been a reduction of 142 construction administration positions, 5 A/P safety officers, 5 miscellaneous positions and 71 maintenance positions. Of the maintenance positions lost, 24 reflect the cuts that were made in the FY 93 Budget. Representative Foster stressed that the Department has been reduced 24 percent in the Highways and Aviation Component during the last ten years after adjustments have been made for inflation and funding changes. During that time, the scope of its responsibility has increased because of increased facilities, improved roadways, and improved airports all of which take more maintenance. Representative Foster noted that this year, for the first time in at least five years, the increased cost of new facilities was not considered before the governor's proposed budget was developed. Those new facilities represent an added cost to the Department's maintenance and operations budget which is general fund monies. The estimated cost of maintaining those facilities is $1,179,600. This is in fact an additional 1.1 million reduction to the Department's budget that has not been recognized elsewhere. 16 Representative Foster stressed that the Alaska Marine Highway has developed a financial plan that is working. Over the past three years revenues have increased from $36 million to $43 million per year. The General Fund contribution in 1990 was $32 million; $30.8 million dollars in 1992, $30.0 million dollars in 1993 and the Governor proposes $29 million dollars in FY 94. The system could operate the their proposed schedule with $29 million dollars in general funds and $43 million dollars in revenues. He stated that there may be service reductions to Southeast and Southwest Alaska. Representative Foster pointed out that over the past two years the Alaska Marine Highway System has absorbed pay increases and fuel increases as well as other inflation costs. Representative Foster referred to page 5 of the Component Summary - Operating Budget. He noted that general fund reductions total $1,922.8 million dollars; plus a $1,275 million dollar reduction from other funding sources. He added that of the $1,275 million dollars, $1,100 million dollars in funds can be recaptured from federal highway and airport funds by the Indirect Cost Allocation Plan (ICAP). He observed that if these funds are not recaptured $1,100 million dollars or some portion of it will become an unallocated cut to the portions of the budget affected. He asserted that while these fund transfers will reduce the amount of money available for capital construction, it will better reflect the true cost of construction by moving those costs to the capital budget where they properly belong. Representative Foster stressed that the remaining $175 thousand dollars are a fund transfer from the Marine Highway Fund to cover the cost of Administrative Services provided to the Marine Highway System. This transfer is in keeping with the fund transfer that is currently made from the international Airports to Administrative Services. Representative Foster noted that the subcommittee unanimously approved the recommendations. Representative Foster MOVED to INCORPORATE the House Finance Subcommittee's recommendations for the Department of Transportation and Public Facilities into HB 55. Representative Brown stated that the real savings in the Department of Transportation and Public Facilities' budget is approximately $500.0 thousand dollars. She asserted that the majority of savings are transferred to the capital budget. She noted that other subcommittees were instructed not to make such transfers. She reiterated that the 17 Department of Environmental Conservation's budget was not treated as other departments. Co-Chair Larson reiterated the motion to INCORPORATE the House Finance Subcommittee's recommendation for the Department of Transportation and Public Facilities into HB 55. There being NO OBJECTION, it was so ordered. Representative Foster noted that the committee as a whole has no recommended legislation to offer. He suggested that limited gaming, similar to that which occurs on the British Columbia Ferry System, again be considered. This was introduced in the Sixteenth Legislature as SB 146. Revenue from gaming could become part of the Marine Highway Fund and be used to supplement revenue in the fund. FRANK TURPIN, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES added that the indirect cost allocation is common to departments that have a cross over between capital and operating budget. He observed that $200.0 thousand dollars additional revenues will be cut from the Marine Highway budget. He pointed out that some ships may be laid up a week or two longer before they are returned from winter service. Representative Martin asked if "ghost" positions exist in the Department of Transportation and Public Facilities's budget. Commissioner Turpin assured him that there are no "ghost positions" in the department's operating budget. Representative Grussendorf noted that the Governor reduced the Alaska Marine Highway's budget by $1,000 million dollars prior to the additional $200.0 thousand dollar reduction. He expressed his concern that program receipts will not be sufficient to counter reductions. Commissioner Turpin stated that the Department can handle the reductions without a loss in program receipts. Representative Hoffman asked the anticipated program receipts for FY 94. Commissioner Turpin stated that program receipts are estimated at $43 million dollars.