SENATE BILL NO. 49 "An Act relating to missions and measures to be applied to certain expenditures by the executive branch of state government and the University of Alaska from the state operating budget for the fiscal year ending June 30, 1999; and providing for an effective date." SENATOR SEAN PARNELL commented that when the Legislature passed last year's operating budget (Sec. 31, Ch.137, SLA 1998), it passed missions and measures as intent language. That was the Legislature's effort to comply with its obligations related to results based budgeting as expressed in the Executive Budget Act. The Governor vetoed the missions and measures from the FY 99 operating budget bill. Senator Parnell pointed out that SB 49 would enact missions and measures into substantive law rather than through an appropriation bill. SB 49 would specifically apply only to the FY 1999 appropriations contained in the operating budget bill passed last year, Sec. 21, Ch. 137, SLA 1998. No new missions or measures have been implemented or drafted as part of the bill. He continued that minor changes had been made to last year's missions and measures and that all those changes were technical in nature. In the Senate Finance Committee, a new immunity section was added to Page 24, Section #2, at the request of Senator Adams. Senator Parnell concluded that it was time to provide the subcommittees a tool to implement Results Based Budgeting and hold departments accountable for spending. Co-Chair Therriault requested Senator Parnell to highlight the areas of change from last year's legislation. Senator Parnell noted that there are six areas of change. On Page 2, Lines 10-12, the information services date was changed. Page 5, Line 11 contains new language. The third change was to the section that referenced a community mental health program, which was deleted; Page 12, Lines 6-22, initially indicated only services available at McLaughlin not at the other youth correction facilities, and that language was changed. On Page 13, Line 6, a typo correction was made; Page 15, Line 8, a hyphen draft change, and lastly, the addition of the immunity section. Representative Grussendorf pointed out that the legislation was aimed at the current fiscal year, although, in the supplemental, many of these areas are not being funded. Senator Parnell noted that concern should be addressed in budget subcommittees. SB 49 would be applicable to the operating budget passed last year. The numbers are valid as they were passed, and will be adjusted in the appropriation bill. A companion bill in the future will pass with the operating budget and each subcommittee would then consider if a supplemental would be needed. Representative Grussendorf inquired if an allocation amount would need to be present because it would be a companion bill. Senator Parnell replied that it would, although, numbers should not be replaced from the original ones. Representative Grussendorf asked what would occur if there was a disagreement between the Legislature and the Governor regarding a goal or mission. Senator Parnell proposed that the Governor could always veto the bill. Representative G. Davis pointed out that the same detailed process of missions and measures which the Department of Public Safety went through last year, was not attempted this year. He noted the proposal does not fit with the current process that the subcommittee undertook and that the changes recommended are lengthy and would be not in amendment form at this time. He suggested that adequate verbiage would be necessary. Co-Chair Therriault asked Senator Parnell if he intended for the language to reflect changes and modifications that were in the mission statement from last year. Senator Parnell understood that each of the mission and measures came through the subcommittee process last year. The ones in the bill do need refinement, as they are a statement of what was passed last year. The intent this year is to produce new missions within the departments for each division and to refine existing measures. Representative Bunde asked if the FY 2000 budget would be accompanied with another bill such as SB 49. Senator Parnell stated that it would include the refinement plus the new missions as agreed to with the Administration. Representative G. Davis noted that Major Randy Crawford from the Department of Public Safety was online to clarify any questions regarding the Department of Public Safety's intent. MAJOR RANDY CRAWFORD, (TESTIFIED VIA TELECONFERANCE), DEPARTMENT OF PUBLIC SAFETY, ANCHORAGE, noted that Department of Public Safety was working on refinement information which would accompany the mission and measure statement for FY 2000 budget. ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, pointed out that the legislation would be applicable to FY99. She explained that the Administration was comfortable having a separate budget bill which accompanies the operating budget. She pointed out that there could be an issue during the last days of the session, when budget amount change substantially in Conference Committee if the correlating performance measures had not been changed. She suggested to notice the changes on Internet, which could indicate where the State was on performance issues and budget amounts. Representative Grussendorf asked the Conference Committee procedure for the year 2000. Co-Chair Therriault replied that last year, a cooperative system was used. Senator Parnell emphasized that SB 49 was a substantive bill, not an appropriation bill. If there are differences between the House and Senate, they would be worked out in the Conference Committee. Representative Foster MOVED to report CSSB 49 (FIN) out of Committee with individual recommendations and with the accompanying zero fiscal note. There being NO OBJECTION, it was so ordered. CSSB 49(FIN) was reported out of Committee with "individual recommendations" and with the accompanying zero fiscal note by the Office of the Governor dated 2/18/99.