HB 75 APPROPRIATIONS: OPERATING BUDGET HB 76 APPROPRIATION: MENTAL HEALTH PROGRAM COCHAIR SHARP MOVED to adopt CSHB 75(FIN) am(brf sup maj pfld) and CSHB 76(FIN) for the purpose of amendments. Without objection, the bills were ADOPTED. Finance Subcommittee close-outs were taken up for the Department of Revenue and the Department of Law. COCHAIR SHARP MOVED for incorporation of the Department of Revenue Subcommittee recommendations into HB 75 and HB 76. SENATOR ADAMS objected, then withdrew his objection. Without further objection, the Department of Revenue Subcommittee recommendations were ADOPTED and incorporated into CSHB 75(FIN) am(brf sup maj pfld) and CSHB 76(FIN). COCHAIR SHARP MOVED for incorporation of the Department of Law Subcommittee recommendations into HB 75 and HB 76. Without objection, the Department of Law Subcommittee recommendations were ADOPTED and incorporated into CSHB 75(FIN) am(brf sup maj pfld) and CSHB 76(FIN). CS FOR HOUSE BILL NO. 75(FIN) am(brf sup maj pfld) "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making an appropriation under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." CS FOR HOUSE BILL NO. 76(FIN) "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." COCHAIR SHARP MOVED to adopt CSHB 75(FIN) am(brf sup maj pfld) and CSHB 76(FIN) for the purpose of amendments. Without objection, the bills were ADOPTED. Finance Subcommittee close-outs were taken up for the Department of Revenue and the Department of Law. COCHAIR SHARP discussed the Department of Revenue subcommittee recommendations and referred to his April 9 memo which outlined them, a copy of which is on file. There were two structural changes to the department's budget. One was to the Child Support Enforcement Division (CSED) to encourage more cost-effective ways of performing services by using about 25 percent of CSED funds for a six-month private sector contract to provide full service child support enforcement services for performance comparison. The subcommittee also adopted intent language related to those contractual services. The other change eliminated the Gaming Division component and returned charitable gaming responsibility to the Income and Excise Audit Division. He summarized by noting the total general fund reduction from FY 97 authorized was $433.3 thousand. COCHAIR SHARP MOVED for incorporation of the Department of Revenue Subcommittee recommendations into HB 75 and HB 76. SENATOR ADAMS objected for the purpose of discussion. End of log notes; the tape (SFC-97, # 95, Side 1) continues at this point. There was lengthy discussion between SENATOR PHILLIPS and COCHAIR SHARP about privatization of CSED and the timing. SENATOR PHILLIPS urged caution regarding privatization. COCHAIR SHARP addressed some of the concerns, noting there were ongoing discussions with the commissioner. SENATOR ADAMS withdrew his objection. There being no further objection, the Department of Revenue Subcommittee recommendations were ADOPTED and incorporated into CSHB 75(FIN) am(brf sup maj pfld) and CSHB 76(FIN). COCHAIR SHARP brought up the Department of Law budget subcommittee close-outs next. He referred to his April 8 memo of recommendations, a copy of which was before the committee and is on file. There were several structural changes to the department's budget to allow identification of where the state was directing its legal efforts and to align the budget more closely with the department's organizational structure. The changes included: 1) returning the Criminal Division to its FY96 component structure; 2) moving to the Criminal Division two criminal investigation and prosecution units currently included in the Civil Division budget; 3) creating new components in the Civil Division; 4) creating a separate Administration and Support BRU for the AG's office and the Administrative Support Division; and 5) retaining the Statehood Defense budget in a distinct BRU. The subcommittee also adopted legislative intent related to allocations made in the Civil Division. End SFC-97 # 95, Side 1, Begin Side 2 COCHAIR SHARP further explained the intent language. He summarized by listing their budget targets for a total general fund reduction from FY97 authorized of $3.7 million. He read the intent language. COCHAIR SHARP MOVED for incorporation of the Department of Law Subcommittee recommendations into HB 75 and HB 76. Without objection, the Department of Law Subcommittee recommendations were ADOPTED and incorporated into CSHB 75(FIN) am(brf sup maj pfld) and CSHB 76(FIN). COCHAIR PEARCE announced the conclusion of budget close-outs for the evening in addition to an agenda for the morning meeting on close-outs. Recess 8:06 P.M. Reconvene 8:20 P.M. COCHAIR SHARP chaired the remainder of the meeting. COCHAIR PEARCE discussed her plan for operating budget amendments, noting a deadline of 3:00 P.M. tomorrow. COCHAIR SHARP brought up SB 150 next.