SB 83 SUPPLEMENTAL/CAPITAL APPROPRIATIONS SB 72 CONSTITUTIONAL BUDGET RESERVE FUND APPROPRIATION The following overview was taken in extended log note format. Tapes and handouts will be on file with the Senate Finance Committee through the 21st Legislative Session, contact 465-2618. After the 21st Legislative session they will be available through the Legislative Library at 465-3808. Time Meeting Convened: 9:25 a.m. Tape(s): SFC-99 #51, Side A (000 - 305) PRESENT: X Senator Parnell X Senator Adams X Senator Torgerson X Senator P. Kelly Senator Donley X Senator Green X Senator Leman X Senator Phillips X Senator Wilken ALSO PRESENT: ANNALEE MCCONNELL, Director, Office of Management and Budget; DAN SPENCER, Chief Budget Analyst, Office of Budget and Budget; SHARON BARTON, Director, Division of Administrative Services, Department of Administration; ALISON ELGEE, Deputy Commissioner, Department of Administration; BARBARA BRINK, Director, Public Defender Agency; JIM HAUCK, Fiscal Analyst, Division of Legislative Finance; aides to members and other members of the Legislature. VIA TELECONFERENCE: PAT POLAND, Director, Division of Municipal and Regional Assistance, Department of Commerce and Regional Affairs from Anchorage. LOG SPEAKER DISCUSSION 000 Co-chair Parnell Convened the meeting at approximately 9:25 a.m. Said the committee would discuss CSSB 83(FIN), work draft "D" There was no response to public testimony. Annalee McConnell Director, Office of Management and Budget was invited to join the committee. She was asked by Co-chair Parnell to explain any comments to the work draft. She said the biggest concern was for the Western Alaska Fisheries Disaster. The $7 million Federal funds available would help provide jobs in Western Alaska. This would alleviate some of the problems for the past two years' disasters. Some technical corrections need to be worked out with staff. Another concern was the Department of Corrections, probation officers and prison beds in Arizona. Cook Inlet Pretrial Facility staffing was also a concern. She indicated that this matter could be adjusted throughout the year. It would not help with the probation officer status but would help with the beds in Arizona. With reference to the Southeast Disaster they are working to get more Federal funds. If this does not work out they will be back before the Legislature for funding. Co-chair Parnell It was his understanding that if the Federal funds were not available the matter could be revisited with the Legislature, however, he would make no commitment. Senator Adams Asked if this included all projects for the Southeast Disaster for Federal funds? Co-chair Parnell Said it did not include trails. Senator Leman With reference to the Southeast projects some were not funded by the Federal funds. Was this true? Annalee McConnell Would need the Department of Transportation to respond. There were some funds the Federal government would respond to, but only if the Federal funds were available. At present, that pot is empty. There are certain costs, in addition, that the Federal funding will not cover. This is based on some Federal policy, wherein they choose not to fund some projects. However, if they do not get the required funds from the Federal government then they will be back before the Legislature. With reference to the Public Defender Agency she felt that the money was necessary to meet their demands and is a concern to them that their funding would be cut. She is satisfied with the work that has been done between her and the committee. Co-chair Parnell Advised the committee that Pat Poland, Director, Division of Municipal and Regional Assistance, Department of Commerce and Regional Affairs was on line via teleconference from Anchorage to answer any questions. Also, if there were any questions for Barbara Brink, PDA, she was present. There being no questions for Mr. Poland and Ms. Brink, Co-chair Parnell asked if there were any questions for any other members of the Administration that were present. There were no further questions from any committee members. Next, for planning purposes, he said they would wait for the House Bill to be reported out and then reach this committee by Friday. He announced they would take up amendments at that time. The work draft version "D" to SB 83 now before the committee was the one they would address with reference to any amendments. Senator Leman With regards to the Office of Management and Budget's comment to the Public Defender Agency, he asked if the increase in caseload was due to child protection caseload. He said he would be receptive to see if it could be narrowed to only the child protection caseload. He stated that this was the first time he had heard that this was the reason for the increase in their caseload. Annalee McConnell Said there were a host of other reasons that the caseload had increased in the Public Defender's office. A supplemental has always been needed to help them get through the year. This was a choice made by the Legislature. Barbara Brink Director, Public Defender Agency said she had a few statistics. In FY97, they had eight hundred ninety-two child protection cases; in FY98 over thirteen hundred child protection cases. In FY 99, so far, they have had approximately twelve hundred child protection cases. She will provide further data to the committee regarding their caseload. Senator Adams Asked if packet of amendments would be distributed to the committee members. Some of the amendments have been submitted for areas outside of his district. He referred, for example, to the Harborview facility in Kasilof. He hoped this project and others would be considered. Co-chair Parnell All amendments will be up for consideration; the committee was just waiting for the House to pass out their version of the supplemental request. Annalee McConnell Referred to the cash flow situation and possible projections. They are finding that the pattern of deposits in and out of the State treasury is tracking with the spreadsheet. There is an approximate three-day lag in terms of when payments are coming into the State. The Administration has defined what would happen if the supplemental bill were not to pass. They have identified which accounts would be swept first. With reference to the oil industry and production drops, there will be approximately a $60 million deficit. April first will see the official spring forecast. It was necessary for the Legislature to stick with their schedule to assure the public there was no lack of funds. This would preclude taking any dramatic action for this fiscal year. Senator Adams "When will we run out of cash?" Annalee McConnell Said it would be approximately be the first of May. Will need to revisit this matter before the Legislature adjourns. Senator Adams $425 million dollars needed for this fiscal year? Annalee McConnell $485 million needed. Will provide update for the committee. Co-chair Parnell Asked the committee members to arrange their schedules so that they could meet Friday afternoon in order to prevent meeting Friday evening with regards to the supplemental. At this time they will try to complete dealing with amendments. Senator Adams Asked what were the plans if the bill took three days in the House? Co-chair Parnell Has scheduled Saturday for a meeting if necessary. Asked members to set aside time after floor session on Friday at approximately noon to deal with amendments. He noted that this meeting would be after a lunch break. 305 ADJOURNMENT: Co-chair Parnell adjourned the meeting at approximately 9:47 a.m., tape number 51, Side A, log #305.