SENATE BILL NO. 83 "An Act making an appropriation for management fees for the constitutional budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska); and providing for an effective date." Co-chair Pearce convened the meeting. She noted that first on the agenda supplemental and RPL's would be taken up. Any new items would also be taken up. OMB was also present and would be going through some priorities of theirs' and three specific requests from Legislators. Karen Rehfeld, Director, Education Support Services, Department of Education was invited to join the committee. She reviewed Department of Education RPL's and noted the requests have been included in the FY '98 budget. In FY '96 the concern was with the federal shut down. The division was very conservative with it's use of federal dollars. It involved not only cuts to the U.S. Department of Education but also Rehabilitation Services. It was also noted that the Mt. Edgecombe boarding school would like to host summer activities. Program receipts would come from Alaska Arts Southeast and the Sitka Skipper's Organization. The final request for general fund program receipts for the State museum. The entrance fee to the museums was increased last year from $2 to $3/person. This generated approximately $80,000. Senator Donley referred to a particular line item and wanted to know where the computers were physically located for the museums. Ms. Rehfeld said it was her understanding that the intention was to connect the Sheldon Jackson museum with the State museum in Juneau. They were also intending to complete a project automating the collections on the internet. In response to a question from Senator Donley she said this did not relate to library services. Co-chair Pearce referred to a 20 March letter from Dan Spencer with the Department of Law involving two additional items; Cook vs. Bothelo which was discussed Thursday. Annalee McConnell, Director, Office of Management and Budget was invited to join the committee. She felt that perhaps updated spread sheets would be more informative than each time submitting a letter. Judgments and claims were brought forward individually so that the Department did not incur late payments. Senator Phillips felt there should be a cut off date and whatever remained be dealt with next year. Senator Adams suggested the easiest way might be to get the house bill and then have one big spread sheet. Ms. McConnell continued regarding contractual obligations with property owners. There was concern because this item had not been fully funded. A list of leases was provided to House Finance with options of prorating payments for the last couple months of the year, not paying anything on some leases and etc. She suggested an update of the projections of the longevity bonus; estimating that there would probably be a $1.5 million not necessary to fund the longevity bonus program in FY '97 and it could be done as a delete/add. That could be done to cover the lease obligation. The second item was disaster relief. She wanted noted that if the $585,000 was not part of the FY '97 supplemental it will need to be added to the budget in FY '98 creating more pressure there. The third item was increased fuel costs for the Marine Highway. Nancy Slagle explained the average price would have to drop to $0.65/gallon if the House recommendation were to be followed. The average price was $0.82/gallon and if that trend continued Marine Highway would still have to absorb because that would result in a $471,000 increase for the full year in fuel. Marine Highway was not asking to increase their supplemental; they will absorb it. However, they have already absorbed $1.7 million throughout FY '97 and it was getting to a real pressure point. In talking to Nancy Slagle the recommendation, about fuel provided the house committee suggesting it could be reduced to $130,000, was done on a straight-lined projection. DOT has a much more precise, sophisticated projection process including actual weeks of service, mileage and so forth. The next item referred to was the McLaughlin and Fairbanks Youth Facilities security fences. She referred to a conversation with Senator Sharp for a less expensive way to do the Fairbanks security. She will discuss the matter further with H&SS and advise Senator Sharp whether a gate instead of a full perimeter fence would be an acceptable alternative. She did, however, encourage the committee to include these items due to the pressure on the '98 budget (where it will have to be moved if it is not done in the supplemental) and further because they would like to commence the procurement process as soon as possible. In response to a comment from Senator Phillips she said Co-chair Hanley felt this could be funded with a portion of the '97 AHFC monies that were not already appropriated. There were $53 million that could have been appropriated in '97; the Legislature did not fully utilize that amount and co-chair Hanley left that open as a possible source. She advised that they had suggested the police training academy be funded with that source of money. Senator Donley asked if this was an electronic fence or some special surveillance system. Ms. McConnell said neither of the facilities had full fences around them. As Janet Clarke indicated the facilities were built as an open campus. Now we are seeing violent offenders put there. Senator Donley still felt the cost for the fence system was too expensive at $1.2 million. Senator Torgerson said one would have to figure out what kind of fence was needed. Ms. McConnell said she would ask H&SS to provide further information regarding the cost break down. She continued on to Alaska Psychiatric Institute RPL. They would be receiving more in third party payments than expected and it was necessary to make a funding source change. The last item was the training academy at Sitka. They needed a new shooting range and women's dorm. Senator Phillips asked if other communities used the Academy. Ms. McConnell indicated that the northern folks were trained in Anchorage and folks from Southeast and other areas were trained in Sitka. He further asked if Anchorage Police Department used the Sitka facility. Ms. McConnell indicated they did not. Ken Bischoff, Director, Administrative Services, Department of Public Safety was invited to join the committee. He said the Sitka academy trained statewide except Anchorage. The communities did pay travel and expenses of officers as they could. Funds also came from the Police Standards Training fund. However, some municipalities do not have the resources to meet necessary standards of the Alaska Police Standards Council. Traditionally there had been some level of state subsidy to other municipalities. Senator Sharp asked the percentage of the total operating cost of the facility that is program receipts from the users. Mr. Bischoff said he believed the percentage is approximately one-third. Senator Donley asked if there was State subsidy for room and board and Mr. Bischoff acknowledged to some degree they did. The Senator further inquired if there had ever been any women recruits turned away from the academy. Mr. Bischoff indicated there had been. He said there were not enough spaces to accommodate female recruits. Senator Phillips asked about training in other States. Mr. Bischoff said a 12-week training in Alaska cost $5,600, whereas the same session in the State of Utah cost $2,000. There was a set of fixed and variable costs. The full variable cost for instructors to be brought in, turning on the lights, providing room and board, were typically paid for through the Police Standards Council or the municipality. Senator Torgerson asked of the one-third in program receipts how much was a $10 surcharge. Mr. Bischoff said the surcharge came from the Police Standards Training fund. Senator Donley asked what percentage of all traffic tickets in alaska come from the Anchorage area. Mr. Bischoff said approximately 45%. Senator Donley noted all that money went for subsidizing the academy however Anchorage did not use the academy. Co-chair Pearce advised that any further supplemental requests from committee members or other members it must be in her office by Monday along with any back-up material. It would then be made available to all committee members and she would continue this hearing until next Wednesday, 26 March. (There was a brief recess to change co-chair.)