HOUSE BILL NO. 325 "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." HOUSE BILL NO. 326 "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." DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Representative Foster MOVED to adopt DOT #3. [Copy on File]. He explained that it would provide a technical correction. There being NO OBJECTION, it was adopted. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Representative Kohring noted that as Chair of the DCRA Subcommittee, the Committee recommended no spending beyond the cap and that the entire Subcommittee supported the final version as proposed. Representative Kohring MOVED to adopt CRA #1. [Copy on File]. He stated that the amendment would delete federal funding from the Rural Cap program and employment training for rural development. He believed that the program was deviating from its mission regarding expenditures. These funds are a grant program, although, he remarked that the money was being spent in a political way. This amendment would delete all money from that program. Representative Grussendorf OBJECTED. He pointed out that the Subcommittee had agreed that the Community and Development Assistance program should be held harmless. A roll call vote was taken on the motion. IN FAVOR: Kelly, Kohring, Martin, Mulder, Therriault OPPOSED: Grussendorf, Moses, J. Davies, G. Davis, Foster, Therriault The MOTION FAILED (5-6). Representative Grussendorf MOVED to adopt CRA #2. [Copy on File]. Representative Mulder OBJECTED. Representative Grussendorf noted that the amendment would restore $2.5 million dollars in funding for the State's revenue sharing program to the level proposed in the Governor's FY 99 budget. Last year the programs were reduced by 6% and this year it is proposed that they be reduced an additional 5%. A roll call vote was taken on the motion. IN FAVOR: Moses, J. Davies, Grussendorf OPPOSED: Kelly, Kohring, Martin, Mulder, G. Davis, Foster, Hanley, Therriault The MOTION FAILED (3-8). Representative Grussendorf MOVED to adopt CRA #3. [Copy on File]. Representative Kohring OBJECTED. Representative Grussendorf explained that the amendment would restore the increment for the program as proposed in the Governor's FY99 budget. Right now the State only provides for 22% of the eligible children. The proposed increase would raise that amount to 25%; 12% of those children have some type of disability. Representative J. Davies spoke to the long success track record of that program. He stressed that this was an important piece of the long-range prevention goal. A roll call vote was taken on the motion. IN FAVOR: Moses, J. Davies, Grussendorf OPPOSED: Kohring, Martin, Mulder, G. Davis, Foster, Kelly, Therriault, Hanley The MOTION FAILED (3-8). Representative Grussendorf MOVED to adopt CRA #4. [Copy on File]. He explained that this amendment would address local government assistance. It would restore the funding level for that component to the Governor's proposed FY99 level. Representative Grussendorf pointed out that the Subcommittee had specifically intended to hold the program harmless from any reduction. Co-Chair Hanley noted that last year when the revision was passed to the municipal assistance and revenue sharing bill, the smallest communities received an increase. Representative Kohring OBJECTED, noting that originally the Subcommittee wanted to cut $300 thousand dollars from that program and that the $50 thousand dollar reduction was small. He pointed out that Division was heavily staffed. Representative Kohring believed that twenty staff people is more than adequate to perform the required functions. Representative Grussendorf disagreed with Representative Kohring that the Subcommittee had recommended a $300 thousand dollar cut, advising that the Minority members had disagreed with all the proposed cuts in that Subcommittee. A roll call vote was taken on the motion. IN FAVOR: Moses, J. Davies, Grussendorf OPPOSED: Martin, Mulder, G. Davis, Foster, Kelly, Kohring, Hanley, Therriault The MOTION FAILED (3-8). Representative Grussendorf MOVED to adopt CRA #5. [Copy on File]. Representative Kohring OBJECTED. Representative Grussendorf stated that the amendment would restore the funding for the Special Assistant position to the Commissioner. The Department deals with many small communities throughout the State and must participate in many different organizations and boards. He commented that the above mentioned position could serve as the Commissioner's designee. Representative J. Davies pointed out that there is an increasing need for interfacing Title 29 into rural Alaska. A roll call vote was taken on the motion. IN FAVOR: Moses, J. Davies, Grussendorf, Kelly OPPOSED: Mulder, G. Davis, Foster, Kohring, Martin, Therriault, Hanley The MOTION FAILED (4-7). Representative Grussendorf MOVED to adopt CRA #6. [Copy on File]. Representative Kohring OBJECTED. Representative Grussendorf explained that the amendment would restore the funding level for the program to the Governor's proposed FY 99 level. He stated that the program is responsible for $19 million dollars worth of childcare programs administered throughout the State. Representative Kohring noted that the requested position is for a grant administrator, and that that there currently are 10 grant administrator positions held in DCRA. Representative Kohring believed that the program could be run efficiently with that number of staff. A roll call vote was taken on the motion. IN FAVOR: J. Davies, Grussendorf, Moses OPPOSED: Mulder, G. Davis, Foster, Kelly, Kohring, Martin, Hanley, Therriault The MOTION FAILED (3-8). DEPARTMENT OF HEALTH AND SOCIAL SERVICES Representative J. Davies MOVED to adopt HESS #1. [Copy on File]. Representative Martin OBJECTED. Representative J. Davies explained that the amendment would restore the general relief medical (GRM) funding designated for low income Alaskans to provide specific types of medical services including terminal illness, chemotherapy, diabetes, seizure disorders, mental illness, and hypertension. The GRM program has over 1600 persons currently utilizing that service. Representative Martin spoke to the number of situations in which GRM supported funding for abortions. He added that the "safety net" referenced by Representative J. Davies could be covered by Medicare and Medicaid. Representative Martin suggested that GRM was "hiding" under illegal medical guises. Representative J. Davies noted that in 1997, there were 857 people who received GRM for emergency and/or chronic health care needs. Typically, 89% of these services are for prescriptions and drugs. Representative J. Davies stressed that often times GRM services are a bridge to the federal programs referenced by Representative Martin, and that those programs have to be applied for, in which many times there is a several month delay. A roll call vote was taken on the motion to adopt HESS #1. IN FAVOR: J. Davies, G. Davis, Grussendorf, Moses OPPOSED: Foster, Kelly, Kohring, Martin, Mulder, Therriault, Hanley The MOTION FAILED (4-7). Representative Martin MOVED to adopt HESS Intent Language. Representative Grussendorf stated that the philosophy proposed in the Letter of Intent was unacceptable by denying those people in dire need of medical attention. He OBJECTED to the Letter of the Intent. Representative Kelly pointed out that over the past years, the Legislature has encouraged the Administration to separate the abortion dollars from GRM, which has put the Legislature in an awkward position. He stated that the Administration has flatly refused. Representative Grussendorf explained that the Administration could not make that separation as a result of a Supreme Court ruling. (Tape Change HFC 98- 108, Side 2). Representative J. Davies cited that language written in the intent language was not true. Representative Martin offered to provide Committee members significant back up for every statement made in the attachment. JANET CLARKE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, advised that she was not aware of any available factual statements regarding the referenced material. Representative Martin reiterated that there had been extensive claims which came from the Department. Representative Grussendorf commented that there was more information than necessary contained in the Letter of Intent. Representative J. Davies noted that the language contained in the Letter of Intent was insulting. He quoted the letter: "The State has a policy of terminating children of those on welfare with the expressed purpose of keeping down the purpose of social funded programs". He stressed that there is no evidence that is the State's policy. Representative Martin pointed out that the Department has clearly referenced the economic value of spending money on abortion. Representative J. Davies claimed that Representative Martin had taken information out of context and misinterpreted it. Representative J. Davies continued, the Letter of Intent states that in a 1974 settlement agreement that DHSS agreed to ignore its own abortion regulations. He asked if Ms. Weller was familiar with that settlement agreement. NANCY WELLER, DIVISION OF MEDICAL ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVCIES, replied that the agreement had been based on not requiring a position statement be submitted with the abortion claims. Representative Martin temporarily WITHDREW the MOTION to adopt the Letter of Intent. There being NO OBJECTION, it was withdrawn. DEPARTMENT OF LAW Representative Grussendorf MOVED to adopt LAW #1. [Copy on File]. Representative Mulder OBJECTED. Representative Grussendorf commented that the amendment would fund a part- time prosecutor to handle the Bristol Bay fishery cases and assist public safety by prosecuting cases in other fisheries. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Moses, J. Davies, Hanley OPPOSED: G. Davis, Foster, Kelly, Kohring, Martin, Mulder, Therriault The MOTION FAILED (4-7). DEPARTMENT OF ADMINISTRATION Representative G. Davis MOVED to adopt ADMIN #1. [Copy on File]. Co-Chair Hanley OBJECTED for the purpose of discussion. He asked if the leases would be short funded. Representative G. Davis noted that the leases had been renegotiated, providing a FY98 savings. He stated that the amendment would bring the Division of Motor Vehicles (DMV) $50 thousand dollars short of their initial request. Co-Chair Hanley accounted a speech made by Governor Knowles which suggested that by making drivers license renewal user friendly, would eliminate approximately 220 thousand transactions, saving the State money. He requested a schedule of the length of time referenced by the Governor indicating that information. ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF ADMINISTRATION, replied that one of the problems with the quoted calculation was that a most expensive transaction was being compared to the least expensive transaction change to the web environment. A number of people use the mailing system which continues to be more expensive than the web technology. Co-Chair Hanley suggested the Governor's speech was misleading the public. Ms. Elgee acknowledged that the representation of that many people coming into the DMV office is inaccurate, however, those offices are extremely crowded. Co-Chair Hanley noted his frustration with the Governor's speech and requested information be provided indicating the estimated savings. Ms. Elgee responded that an individual breakdown could be provided, however, it will be more difficult to predict timing, as the Division is attempting to change people's behavior by using the web based environment. JUANITA HENSLEY, DIVISION OF MOTOR VEHICLES, DEPARTMENT OF ADMINISTRATION, noted that the population of people in Alaska purchasing cars has risen and unfortunately, those individuals do not have any other option but to come into the DMV office. She pointed out that the Division has not requested any increase for a number of years. ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGMENT AND BUDGET, OFFICE OF THE GOVERNOR, advised that current service at the DMV offices has been unacceptable to the public. The Governor did say that we could improve service while achieving savings. Co-Chair Hanley WITHDREW his OBJECTION, and ADMIN #1 was adopted. Representative Kohring MOVED to adopt ADMIN #2. [Copy on File]. Representative G. Davis OBJECTED. Representative Kohring explained that the amendment would delete a portion of public broadcasting. He emphasized that government should not be funding public television because in doing so, it is competing with the private sector and that it is not an essential service. Representative G. Davis pointed out that the Subcommittee did not support this amendment. (Tape Change HFC 98- 109, Side 1). Representative G. Davis explained that the cut would wipe out services to Juneau, Fairbanks and Bethel; Anchorage would be seriously impacted, where corporate donations are located. Representative G. Davis reiterated that this was too drastic of a cut and that as Chair of the Subcommittee he did not support the amendment. Representative J. Davies pointed out that public television offers the advantages of distant learning for children. It is an appropriate public expense and is supported by the general public. Representative Moses recommended doubling the amount currently given to public television. He stated that it is a very good educational tool and should be utilized more. A roll call vote was taken on the motion. IN FAVOR: Kohring, Martin, Mulder OPPOSED: Foster, Grussendorf, Kelly, Moses, J. Davies, G. Davis, Hanley, Therriault The MOTION FAILED (3-8). Representative Grussendorf WITHDREW ADMIN #3. [Copy on File]. There being NO OBJECTION, it was withdrawn. HB 325 and HB 326 were HELD in Committee for further consideration.