SENATE BILL NO. 175: An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date. (Note: The beginning of the meeting was not taped due to a malfunction.) Department of Education SENATOR TIM KELLY outlined subcommittee decrements to the corrections of the FY94 operating budget for the Department of Education (copy of handout on file titled "Department of Education-Senate Reductions). SENATOR JAY KERTTULA MOVED for ADOPTION of a letter of intent that said funds allocated in the client services component be used for project "walkback," and that the Division of Vocational Rehabilitation disburse and monitor the funds for this purpose. No objections being raised, it was ADOPTED. Senator Kelly MOVED for ADOPTION of letter of intent #1 which spoke to the Museum Operations reduction (copy on file). No objections being raised, it was ADOPTED. Begin SFC-93 #46, Side 1 SENATOR GEORGE JACKO MOVED for ADOPTION of subcommittee recommendations for the Department of Education budget into SB 175. Senator Kerttula OBJECTED. Co-chair Frank asked for a show of hands. The motion CARRIED on a vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were in support. Senator Kerttula was opposed.) Later in the meeting, Senator Kelly MOVED amendment #2 that would add $34.0 in general funds and reduce $34.0 in program receipts to the Teacher Certification Program for the Department of Education (copy on file). No objections being raised, it was ADOPTED. Senator Kelly MOVED an amendment in the form of a memo dated April 3, 1993, subject: Amendment/Museum Operations be added to the Department of Education budget (copy on file). This memo amends letter of intent #1. No objections being raised, it was ADOPTED. Senator Kerttula MOVED letter of intent #5 by Senator Kelly and co-sponsored by Senators Jacko and Kerttula, that speaks to educational program appropriation (copy on file). No objections being raised, it was ADOPTED. Department of Revenue Senator Jacko outlined subcommittee decrements to the corrections of the FY94 operating budget for the Department of Revenue (copy of handout on file titled "Department of Revenue-Senate Reductions"). Co-chair Frank asked if the two positions in the Child Support Enforcement field offices would be eliminated rather than transferred to Fairbanks. COMMISSIONER DARREL J. REXWINKEL, Department of Revenue, answered, because the funding would be eliminated, the offices in Juneau and Fairbanks would be closed, and the positions would be eliminated. In answer to Senator Kerttula, Senator Jacko affirmed that oil and gas auditors were included in the Department of Revenue budget. Senator Kerttula asked if all the investigators were eliminated, would the state rely on state police to investigate internal infractions of regulations over DEC. Senator Kerttula also asked if the Director had been retained. Commissioner Rexwinkel stated that the two remaining investigator positions would be eliminated leaving an executive director and a few clerical staff that would report to the Alcohol Beverage Control Board, leaving only a licensing function. He said the investigation function could be contracted out. Senator Kerttula said that he would have an amendment on the Child Support Enforcement component at a later time. Senator Kelly MOVED for ADOPTION of subcommittee recommendations for the Department of Revenue budget into SB 175. No objections being raised, it was ADOPTED. Department of Administration CO-CHAIR STEVE FRANK outlined subcommittee increments and decrements to the corrections of the FY94 operating budget for the Department of Administration (copy of handout on file titled "Department of Administration - FY 94"). At Ease 10:47am Reconvene 10:50am Senator Kerttula MOVED for adoption of amendment #1 in regard to the Pioneers Homes (copy on file). Senator Jacko OBJECTED. Co-chair Frank asked for a show of hands. The motion FAILED on a vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed. Senator Kerttula was in support.) Senator Kerttula MOVED for adoption of amendment #2 in regard to nutrition and transportation services grants for the Older Alaskans Commission (copy on file). Co-chair Frank OBJECTED. Co-chair Frank asked for a show of hands. The motion FAILED on a vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed. Senator Kerttula was in support.) CO-CHAIR DRUE PEARCE MOVED for ADOPTION of subcommittee recommendations for the Department of Administration budget into SB 175. Senator Kerttula OBJECTED. Co-chair Frank asked for a show of hands. The motion CARRIED on a vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were in support. Senator Kerttula was opposed.) At Ease 11:05am Reconvene 10:10am University of Alaska SENATOR STEVE RIEGER outlined subcommittee increments and decrements to the corrections of the FY94 operating budget for the University of Alaska (copy of handout on file titled "FY94 Senate Finance University of Alaska Budget Subcommittee Recommendations" and "Summary Sheet"). Senator Rieger stated that the subcommittee submitted three letters of intent. He explained that the first letter titled "University of Alaska, Anchorage" spoke to the instructional funds added in this budget and that these funds should be used for the best mix in delivering instruction (copy on file). Senator Kerttula asked if "instructional funding" is understood to be regional wide. Senator Rieger confirmed that UAA was meant to include all the campuses in the UAA system. Senator Rieger spoke to the second letter of intent titled "Statewide Programs and Services" (copy on file). He said the intent of the legislature is that workloads of the faculty reflect teaching as the primary responsibility. It also requests that all faculty on all campuses provide a report of their 1993 workloads. The third letter of intent titled "University of Alaska, Anchorage", asks that each main campus pursue opportunities to receive grants and other sources to help support University operations (copy on file). Senator Kerttula said he was in support of out-reach to receive other funding for the University. However, he warned that often research grants require peer research and little instruction is associated with them. Senator Rieger argued that research grants could allow a portion of the grant to be allocated against the administration. He said it was a way to relieve other dollars from the administration, and those funds could then go toward teaching. He also said they could help provide a stipend for graduate students which would be useful in the university system. He said his concerns were the same as Senator Kerttula's, and reiterated that the primary role of teachers is to teach. Senator Jacko asked how many new employees would be added because of the addition of instructional funds. Senator Rieger said that he did not know, however, because of the 36 percent reduction in fixed costs that would have to be absorbed, administrative positions would be eliminated. Recess 11:15am Reconvene 11:17am Senator Rieger MOVED for ADOPTION of the three letters of intent for the University of Alaska. No objections being raised, it was ADOPTED. Senator Rieger MOVED for ADOPTION of subcommittee recommendations for the University of Alaska budget into SB 175 and asked the committee to consider a request by the University to change the format of the number of sheets of detail from 113 to 39. Senator Kerttula asked if that would mean less detail would be available for the legislature. BRIAN ROGERS, Vice President for Finance, University of Alaska, said the change proposed that instead of separate allocations for each campus, one allocation per campus would be shown with project budget forms for each function within the campus. This format was used from 1982 until 1992 and was changed to a long form last year. NANCY SLAGLE, Fiscal Analyst, Legislative Finance Division, supported this proposal, and even though it would contain less pages, she felt it would provide adequate detail. She said that if the legislature agreed with the new proposal, a decision made today would enable Legislative Finance Division to take the steps to automate the process. Senator Jacko asked if this proposal would change the way the money was expended, and give the University more flexibility. Mr. Rogers said that it would not. In the event of a transfer, less paperwork would be needed, but the University would still have to report the transfer. Mr. Rogers said the major difference was the preparation of the detail for next year's budget cycle. Co-chair Frank said he would like to hold this proposal until later in the meeting. (See April 3, 1993 afternoon minutes.) Senator Rieger again MOVED for ADOPTION of subcommittee recommendations for the University of Alaska budget into SB 175. No objections being raised, it was ADOPTED. Department of Public Safety Senator Rieger outlined subcommittee increments and decrements to the corrections of the FY94 operating budget for the Department of Public Safety (copy of handout on file titled "FY94 Senate Finance Public Safety Budget Subcommittee Recommendations"). Senator Rieger presented three letters of intent from the subcommittee. The first spoke to the Highway Safety Planning Agency to provide a grant to the EMS system in DH&SS (copy on file). This would not supplant general funds but be an increase. The next two letters provided intent language for Fish and Wildlife, and Detachments to increase sources from other than general fund receipts, and bring revised program receipt requests to LB&A for enhanced protection (copies on file). Senator Kerttula asked how both would get program receipts. Senator Rieger said he was not clear if that was possible but that fines and forfeitures could be an avenue. Senator Rieger explained that the subcommittee felt in a time of declining revenue, an increase in the budget was not feasible but did allow for personal service funding to avoid a decrease in personnel. Senator Kerttula voiced his concern about the department taking such action as speed traps in order to provide funds. Co-chair Frank asked for confirmation that the intent of the subcommittee was that the department would come before LB&A to explain the potential sources and have them approved before any money is expended. Senator Rieger answered affirmatively, and explained that the original plan would have put program receipts into the budget. Senator Kerttula cautioned that this process should be monitored closely. Senator Rieger MOVED for ADOPTION of the three letters of intent for the Department of Public Safety. No objections being raised, they were ADOPTED. Senator Kerttula MOVED for ADOPTION of amendment #1 in regard to the Department of Public Safety restoring the Governor's increment for the Troopers (copy on file). Senator Frank OBJECTED. Co-chair Frank asked for a show of hands. The motion FAILED on a vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed. Senator Kerttula was in support.) Senator Rieger MOVED for ADOPTION of subcommittee recommendations for the Department of Public Safety budget into SB 175. No objections being raised, it was ADOPTED. Department of Health & Social Services Senator Rieger presented two letters of intent for the Department of Health & Social Services. The first letter said that it was the intent of the legislature that the statewide EMS system apply to the Department of Public Safety for a $50.0 Highway Safety Planning Agency federal grant (copy on file). The second letter said that it was the intent of the legislature that DH&SS aggressively work toward increasing self sufficiency efforts in order to transition as many clients as possible into the workforce (copy on file). Discussion followed between Senators Kerttula and Rieger regarding department staff working with welfare applicants. Senator Rieger MOVED for ADOPTION of the two letters of intent for the Department of Health & Social Services. No objections being raised, it was ADOPTED. Department of Transportation & Public Facilities SENATOR BERT SHARP outlined subcommittee increments and decrements to the corrections of the FY94 operating budget for the Department of Transportation & Public Facilities (copy of handout on file titled "Department of Transportation and Public Facilities, FY 94 Budget Senate Finance Subcommittee Work Draft, 4/2/93 Revised #4"). End SFC-93 #46, Side 1 Begin SFC-93 #46, Side 2 Senator Sharp said the recommended budget was a reduction of 2.6 percent from the Governor's budget, and a reallocation of $1.2M. He presented letters of intent #3, #4, and #5 for DOT/PF (copies on file). Co-chair Frank asked the letters of intent be held until later in the meeting. Senator Kerttula submitted amendment #1 for DOT/PF to add $180.0 for maintenance of the Anchorage station, to add $539.0 for maintenance for the central region, and to add $40.0 to restore the cut to the contract with the Municipality of Anchorage (copy on file). He said that last year DOT/PF had been reduced by $2.5M and that reduction came out of maintenance. He voiced his concern that lack highway maintenance funds would eventually cause a disaster especially on the main highways. Co-chair Frank OBJECTED. Co-chair Frank asked for a show of hands. The motion FAILED on a vote of 5 to 1. (Senators Frank, Jacko, Pearce, Rieger, and Sharp were opposed. Senator Kerttula was in support. Senator Kelly was absent from the meeting when the vote was taken.) Co-chair Sharp said that each region received the same percentage reduction as any other region. He said the northern region chose to be more specific when targeting their reductions, and southeast and central region elected to take more reductions in unallocated highway maintenance and operations. Senator Kerttula reiterated that a large cut of $700-800.0 was being made to an area that has most of the population of the state and tremendous road problems. He cited the Brad-Phillips law case and felt the state could end up in court due to disasters on the road. Senator Kerttula submitted amendment #2 for DOT/PF for maintenance and facilities (copy on file). Co-chair Frank OBJECTED. Co-chair Frank asked for a show of hands. The motion FAILED on a vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were opposed. Senator Kerttula was in support.) Senator Sharp MOVED for ADOPTION of the three letters of intent for the Department of Transportation & Public Facilities. No objections being raised, they were ADOPTED. Senator Sharp MOVED for ADOPTION of subcommittee recommendations for the Department of Transportation & Public Facilities budget into SB 175. Senator Kerttula OBJECTED. Co-chair Frank asked for a show of hands. The motion CARRIED on a vote of 6 to 1. (Senators Frank, Jacko, Kelly, Pearce, Rieger, and Sharp were in support. Senator Kerttula was opposed.) ADJOURNMENT The morning meeting was recessed at approximately 12:00 p.m.