HOUSE BILL NO. 412 An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; and providing for an effective date. INTENT Chairman Frank directed attention to a handout (copy on file in the conference committee minute book) containing intent set forth in House and Senate versions of the budget. Committee members conducted the following review: Dept. of Administration Representative Grussendorf expressed dislike of House language relating to Centralized Administrative Services, due to dependence upon HB 513 which is unlikely to pass. There was no motion for adoption of the intent. Representative Hanley MOVED for adoption of Senate intent for Information Services. No objection having been raised, the intent was ADOPTED. Representative Hanley MOVED for adoption of identical House and Senate intent relating to Alaska Housing Finance Corporation. No objection having been raised, the intent was ADOPTED. Dept. of Education Representative Hanley MOVED for adoption of Teaching and Learning intent. No objection having been raised, the intent was ADOPTED. Representative MOVED for adoption of House intent for Executive Administration. House intent no. 1 was shortened to read: It is the intent of the legislature that the Foundation Formula be re-written to eliminate the inequity of the current formula. No objection having been raised, the intent was ADOPTED. Chairman Frank called for objections to adoption of intent for the Alyeska Central School. No objection having been raised, the intent was ADOPTED. Both Senator Zharoff and Representative Grussendorf expressed a preference for exclusion of intent relating to the Kotzebue Technical Center. Representative Hanley concurred and no motion for inclusion was made. Representative Hanley initially MOVED for inclusion of intent relating to WAMI Medical Education, but Chairman Frank advised of need to remove the last sentence. The Chairman subsequently suggested that the intent be eliminated, noting that it could later be included in the capital budget if it was determined to be necessary. Dept. of Labor House intent for Labor Market Information was ADOPTED. Dept. of Commerce and Economic Development Senate intent for Measurement Standards and Insurance was ADOPTED. Senator Zharoff and Representative Grussendorf raised questions regarding federal funds associated with Tourism Development intent, and the language was eliminated. Representative Grussendorf referenced Senate intent for Alaska Seafood Marketing and stressed the importance of Seattle's West Coast location in terms of marketing. He further questioned whether an Alaska bidder's preference would apply to most international market "media buys" out of California or New York. The first two items of Senate intent were subsequently eliminated. The third item was ADOPTED, reworded as follows: It is the intent of the legislature that, upon passage of HB 397, $327.7 is appropriated as a new legislation/fiscal note to the Alaska Seafood Marketing Institute for the purpose of serving as matching funds for the international salmon marketing program. Dept. of Military and Veterans Affairs Senate intent was ADOPTED as was the following additional intent by Senator Halford: It is the intent of the legislature that the department, division of emergency services, include emergency response as an integral part of the duties of its employees. Dept. of Natural Resources Representative Grussendorf asked if efforts relating to shore fishery leases and aquatic farming permits were funded. Chairman Frank voiced intent to fund the program, saying that the Senate was still working on HB 191. It would do no damage to include the intent. No objection having been raised, Senate intent for Resource Development was ADOPTED as was Senate intent for Fire Suppression. The following additional intent, offered by Senator Halford, was also ADOPTED: It is the intent of the legislature that the Division of Lands discontinue all efforts to implement the recreational rivers management plan (commonly known as the "six rivers" plan) throughout the Mat-Su area. Dept. of Fish and Game Referencing Senate intent relating to the king salmon tag, Representative Grussendorf voiced concern that it would not set an appropriate precedent. Senator Halford advised that the percentage set forth reflects a federal requirement. Representative Grussendorf withdrew his objection. All intent for the Dept. of Fish and Game budget was subsequently ADOPTED. Dept. of Transportation and Public Facilities No objection to Senate intent for the commissioner's office and central, northern, and southeast highways and aviation, having been raised, it was ADOPTED. Dept. of Environmental Conservation House intent for air quality was not offered. No objection to Senate intent for air and water quality having been raised, it was ADOPTED. Dept. of Corrections Chairman Frank advised of replacement language for Senate intent originally set forth in the budget. University of Alaska No objection to Senate intent relating to maintenance of funding for the school of fisheries having been raised, it was ADOPTED. Supplemental Packet of Intent Chairman Frank next directed attention to a packet of supplemental intent and referenced language relating to long-range planning to be applied to all departments and the University. Representative Hanley MOVED for adoption, saying that language is similar to what departments did this year in offering initial budgets. No objection having been raised, the intent was ADOPTED. Representative Hanley next MOVED for adoption of the following intent to appear in the BRU for the commissioner's office in each department: It is the intent of the legislature that the Governor prepare and implement a plan and submit necessary legislation to combine and consolidate at least two departments over the next two years. No objection having been raised, the intent was ADOPTED. The following intent for public communications within the Dept. of Administration was offered by Representative Foster and ADOPTED: It is the intent of the legislature that the public broadcasting entities within the state continue to work toward self-sufficiency through the creation and utilization of [a] private sector endowed trust. The legislature intends that the transponder be fully funded so that service to the public will not be interrupted. Chairman Frank referenced the following substitute intent for the Dept. of Corrections: Administration and Support - Data and Word Processing It is the intent of the legislature that $248.4 in federal receipts be included in the FY 97 capital budget for the Department of Corrections, Management Information System Project. Institutions - Anvil Mountain Correctional Center It is a condition of this appropriation that the funds herein will not be used to operate, lease or construct any other correctional facility in Alaska. Community Corrections - Community Corrections Director It is a condition of this appropriation that the funds herein will not be used to operate, lease, or construct any other correctional facility except for expansion of Point MacKenzie Rehabilitation Program or expanded usage of new or existing community residential centers, including those currently under contract. No objection having been raised, the foregoing intent was ADOPTED. Chairman Frank referenced the following new intent for the Dept. of Natural Resources: It is the intent of the legislature that the Dept. of Natural Resources pursue an aggressive navigability assertion and management effort as well as an aggressive RS 2477 assertion and management program with funds appropriated in HB 468 or similar legislation enacted. No objection having been raised, the intent was ADOPTED. Chairman Frank further pointed to new intent within the division of forestry: It is the intent of the legislature that the division of forestry pursue changes in regulation to allow certified consultants to do forest practices fieldwork on private land. No objection having been raised, the intent was ADOPTED. Representative Grussendorf questioned whether the following intent for the Dept. of Revenue was a "good idea" given the number of transactions involved: It is the intent of the legislature that if HB 341 or substantially similar legislation is enacted into law, the department will either eliminate or transfer back to Alaska the revenue hearing examiner position currently stationed in Seattle, Washington, and any similar positions maintained outside of Alaska. Chairman Frank voiced his understanding that the position (which works only on oil and gas issues) was to return to Alaska if the office of tax appeals is established within the Dept. of Administration. No objection having been raised, the intent was ADOPTED. The following intent for the Dept. of Transportation and Public Facilities was ADOPTED: It is the intent of the legislature that the department maintain a plowed road during the winter on the existing Isabel Camp road access, at approximately milepost 198, near Summit Lake on the Richardson Highway. It is the intent of the legislature that the department not reallocate maintenance and operations funds between regions except in the case of an emergency. University of Alaska Chairman Frank referenced an appropriation in the front section of the budget and noted need for the following intent which was ADOPTED without objection: It is the intent of the legislature that the appropriations made in Section 20 of this Act be in addition to current expenditures by the University of Alaska on behalf of the alumni associations. OFFICE OF THE GOVERNOR Representative Hanley moved for adoption of Senate funding for the Governor's Office with the exception of the following new numbers: Executive Office, miscellaneous -437.7 Contingency Fund, miscellaneous -250.0 Lieutenant Governor, miscellaneous - 80.4 Governmental Coord., miscellaneous - 15.0 Representative Grussendorf inquired regarding the difference between the Governor's request and proposed conference committee funding. Representative Hanley advised that conference numbers are approximately $430.0 less. The 437.7 reduction in the executive office is the largest reduction. It was made in response to information indicating a $1.4 million carryforward. While some of that amount was reappropriated, a carryforward of $1 million remains in place. FY 95 actual funding was $6.2 million. Estimated FY 96 actuals total $6.3 million. With the carryforward, the Governor's Office will be authorized $7.2 million. The request was for authorization of $6.7. No objection having been raised, funding for the Governor's Office was ADOPTED, and the budget was closed. DEPT. OF EDUCATION Representative Hanley directed attention to a May 5, 1996, memorandum (copy on file) and referenced a $3.6 million lapse to be rolled forward from last year into this year. Chairman Frank noted that the funding was included in the supplemental. Representative Hanley MOVED to reopen the budget for the Dept. of Education for the purpose of reducing the $617,192.9 in general funds for the foundation program by $3,678.8 to produce a new total of $613,514.1. No objection having been raised, the budget for the Dept. of Education was opened. Representative Hanley then MOVED for adoption of $613,514.1 in general funds for the foundation formula. No objection having been raised, the reduced number was ADOPTED. DEPT. OF CORRECTIONS Representative Hanley MOVED to open the budget for the Dept. of Corrections. No objection having been raised, IT WAS SO ORDERED. Representative then MOVED to change the specific reduction in House funding for Hiland Mountain Correctional Center to an unallocated reduction. No objection having been raised, the change was ADOPTED. FRONT SECTIONS Working from a side-by-side comparison (copy on file) of House and Senate front sections, Representative Hanley MOVED to reduce the Alaska Housing Finance Corporation transfer from $70 million to $50 million. No objection having been raised, the reduced amount was ADOPTED. Chairman Frank acknowledged need to reduce the amount transferred from the Alaska Industrial Development and Export Authority as well. He advised that the high side would be 40 percent. That percentage of the estimated unrestricted cash balance totals $16,700.0. Representative Hanley MOVED to transfer $16,700.0 rather than $21,000.0 from AIDEA. No objection having been raised, the reduced amount was ADOPTED. Representative Hanley next MOVED for Senate numbers for Constitutional Budget Reserve funding. No objection having been raised, the Senate numbers were ADOPTED. Chairman Frank referenced Senate intent relating to the disaster relief fund, saying that it would be consistent with already adopted intent. Representative Hanley MOVED for adoption of the Senate numbers. No objection having been raised, IT WAS SO ORDERED. Representative Hanley moved for adoption of Senate intent under federal and other program receipts to include the Fish and Game Fund and restrict agencies from obtaining Legislative Budget and Audit approval for Fish and Game Funds. In response to a question from Senator Zharoff, Nancy Slagle advised that, per the proposed language, additional Fish and Game Fund receipt authority may not be obtained through LB&A. Additional authority would be requested in supplemental funding as was done in the present year. No objection having been raised, the intent was ADOPTED. The conference committee ADOPTED Senate funding for information services funding within Sec. 13. Senate language and funding for the marine highway system fund was ADOPTED within Sec. 15. Directing attention to Sec. 18(b), Chairman Frank advised that the Senate number was based on new information from the spring revenue forecast. Mr. Greany concurred that Senate number are more current. No objection having been raised, the Senate numbers were ADOPTED. Chairman Frank noted that Senate funding for the student loan program within Sec. 27 was consisted with SB 123, Ch 5, SLA 1996. Representative Hanley MOVED for adoption of the Senate numbers. No objection having been raised, IT WAS SO ORDERED. Representative Hanley MOVED for adoption of Senate funding relating to University of Alaska license plates. No objection having been raised, IT WAS SO ORDERED. Representative Hanley MOVED for adoption of limitations on appropriations language contained within Sec. 30 of the Senate budget. Senator Zharoff objected. Chairman Frank called for a show of hands. The motion failed on a vote of 3 to 3. Representative Hanley next referenced new language to be inserted in Sec. 9 at page 4, line 16, so that the last sentence of subsection (a) would read: Money appropriated in this Act may not be used to implement the monetary terms of any of the collective bargaining agreements listed in (b) of this section unless separate legislation is enacted which contains explicit language approving the monetary terms of the collective bargaining agreement. NANCY SLAGLE, Director of Budget Review, Office of Management and Budget, subsequently sought clarification of the amendment. She voiced her understanding that original language said that money appropriated in the operating budget could not be used for payment of monetary terms unless an appropriation was specific to that purpose. The foregoing new language says that moneys within the appropriation act cannot be spent for monetary terms unless a separate piece of legislation approves the terms. Both Chairman Frank and Representative Hanley concurred in Mrs. Slagle's interpretation of the new language. Representative Hanley later MOVED as a conceptual amendment, that the drafter apply the new language where necessary within Sec. 9 of the budget. Senator Zharoff initially objected to the language, voicing his belief that the legislature is obligated to fund contracts put forth in good faith. He then withdrew his objection. No further objection having been raised, both the foregoing language and latitude for the drafter were ADOPTED. FISCAL NOTES Representative Hanley directed attention to a four-page tabulation (copy on file) of fiscal note information, further directed specific attention to the last item for SB 216 (page 3, $30.0 for Dept. of Education, PSEC funding), and noted that funding is revenue rather than a general fund expenditure. He thus recommended that it be removed from the list. END: CC-96, #5, Side 1 BEGIN: CC-96, #5, Side 2 Representative Hanley next directed attention to page 4 of the handout and MOVED to fund $180.0 rather than $162.9 for the new superior court judge at Dillingham (SB 320). No objection having been raised, the change was ADOPTED. He advised that, given the above changes, fiscal note funding totals $6,873.0 in general funds and $4,508.7 in other moneys. Representative Hanley MOVED for adoption of fiscal note funding. No objection having been raised, the funding was ADOPTED. CONFORMING MOTION MIKE GREANY, Director, Legislative Finance Division, sought leave to conform back pages of the budget with front section items. Representative Hanley MOVED to provide Legislative Finance with authorization to conform back pages to the front section of the budget. No objection having been raised, IT WAS SO ORDERED.