HOUSE FINANCE COMMITTEE January 29, 1993 1:30 p.m. TAPE HFC 93-15, Side 1, #000 - 684. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:30. PRESENT Co-Chair Larson Representative Hoffman Co-Chair MacLean Representative Martin Vice-Chair Hanley Representative Navarre Representative Brown Representative Parnell Representative Foster Representative Therriault Representative Grussendorf ALSO PRESENT Charlot Thickstun, Director, Division of Elections, Office of Lieutenant Governor; SUMMARY INFORMATION HB 68 An Act making a supplemental appropriation for certain elections for regional educational attendance area school boards and coastal resource service area boards; and providing for an effective date. CSHB 68 (Fin) was reported out of Committee with a "do pass" recommendation. CHARLOT THICKSTUN, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE GOVERNOR provided members with back-up material pertaining to HB 68 (Attachment 1). She noted that costs, mandates and descriptions of regional educational attendance area (REAA) and coastal resource service area board elections (CRSA) are contained in Attachment 1. She emphasized that she had expressed concern that the Division would not have sufficient funds to cover reapportionment costs and perform the March 2, 1993 elections. Attachment 1 contains a letter to Shelby Stastny, Director, Office of Budget and Management, dated June, 1992, in which Ms. Thickstun summarized discussions pertaining to these issues. She observed that the Division's request for additional funding to cover reapportionment costs were not included in 1 the agenda for the 2nd Special Session of the Seventeenth Alaska Legislature. The Division's failure to receive reapportionment funding caused other items in its budget to be shifted. She stressed that Judge Weeks moved, on June 3, 1992, that the Division of Elections seek funding from the State of Alaska for the REAA and CRSA elections. Representative Navarre asked why the Division of Elections has divided its supplemental requests into two vehicles, HB 68 and HB 94. Ms. Thickstun state that the Attorney General suggested that the requests be divided in order to expedite the election. Representative Navarre asked if the Division had acquired Legislative Budget and Audit Committee approval before diverting funds allocated for REAA and CRSA elections. Ms. Thickstun answered that she had addressed the situation in a memorandum to Shelby Stastny, Director, Office of Budget and Management. Representative Navarre reminded Ms. Thickstun that the Legislature, not the Office of Budget and Management, is the agent of appropriation. He added that the Legislative Budget and Audit Committee is the interim finance committee for the Legislature. Ms. Thickstun recalled that the matter was not brought before the Legislative Budget and Audit Committee. Representative Navarre expressed support for REAA and CRSA elections but relayed concerns that the Division of Election had misappropriated funds. He interjected that the Legislature should have an understanding of how money appropriated for REAA and CRSA elections were spent, including money spent on reapportionment, legal fees and Reimbursable Service Agreements to the Department of Law. He reiterated that notification to the Legislature after the fact constitutes a misappropriation of funds. He emphasized that the Legislature's power of appropriation is a constitutional power and responsibility. Co-Chair Larson commented that the Legislative Budget and Audit Committee is completing an audit of the Division of Elections. He anticipated that the audit will be finished in two weeks. He echoed Representative Navarre's concerns regarding the Division of Election's over-spending for reapportionment. Representative Navarre emphasized that the Legislature did fund the FY 93 REAA and CRSA elections. Representative Martin noted his objection to general fund appropriations by the Legislative Budget and Audit 2 Committee. He asked if the State of Alaska would incur additional costs by postponing the elections. He cited litigation by citizens regarding reapportionment. Representative Grussendorf noted that he supported FY 93 appropriations for REAA and CRSA elections. He observed that the $90.0 thousand dollars appropriated for the elections were diverted by the Division. He asked how the Legislature can assure that supplemental appropriations, contained in HB 68, will be used for the REAA and CRSA elections. He repeated questions regarding how the first appropriation was spent. Ms. Thickstun assured him that the appropriation, contained in HB 68, will go to fund REAA and CRSA elections. She observed that FY 93 allocations are not budgeted by election function. She stressed that the Department of Law confirmed that the Division's FY 93 appropriation represents a total allocation of all election related functions directed or supervised by the Division of Elections. Representative Brown referred to a letter from Ms. Thickstun to Shelby Stastny, Director, Office of Budget and Management (contained in Attachment 1). "We agreed the FY 92/FY 93 appropriation of $3.7 million dollars to the Division of Elections was not intended to include the costs incurred to accomplish and fully implement the effects of the reapportionment." Representative Brown was under the impression that funds were appropriated for reapportionment. She noted that the Division's FY 93 budget was higher than FY 92. She asked how such a substantial item as reapportionment was not included. She continued to cite the letter to Shelby Stastny, Director, Office of Budget and Management, "our estimate of additional financial need for FY 92/ FY 93 is $1.6 million." She asked why these known costs were not included in the budget. Ms. Thickstun reviewed the reapportionment process. She noted that the Division was granted a supplemental for mapping. Mapping began in October of 1992. She emphasized that litigation required the Division to repeat its mapping process. She stressed that the litigation resulted in an increase in costs associated with delays, deadlines and overtime requirements. Representative Brown requested a breakdown of the Division's expenditures. She asked if shortfalls were caused by increases in salaries within the Division. Ms. Thickstun felt that upgrades within the Division did not add to the Division's shortfall. Representative Brown asked for a breakdown of employee upgrades and hires. The Division did not have a Reimbursable Service Agreement (RSA) with the 3 Department of Law. Representative Navarre reiterated that appropriation of funds is the responsibility of the Legislature. He suggested that HB 68 should be amended to establish that the FY 93 REAA and CRSA elections were funded by the Legislature. Representative Martin noted that Judge Larry R. Weeks ruled that, "In light of the circumstances, the court is concerned about the Division of Elections' ability to provide for elections in a timely, orderly manner with its current funding. The state is ordered to request supplemental funding to ensure that elections are properly prepared and held on time" (contained in Attachment 1). Ms. Thickstun clarified that only the regularly elected regional educational attendance area school boards would be funded. Ms. Thickstun described coastal resource service area boards. Co-Chair Larson concluded that they are elected service areas. Representative Brown reiterated that Judge Weeks ordered the State of Alaska, on June 2, 1992, to request funding for REAA and CRSA elections. She asked why the request was not included in the second special session. Ms. Thickstun replied that the Division of Election prepared a request for funding. The Governor chose not to include this item on the agenda of the second special session. Co-Chair Larson asked if the Division's budget contained contingency money. Ms. Thickstun pointed out that the Office of the Governor provided $25.0 thousand dollars as a RSA. Representative Hoffman referred to a letter by Ms. Thickstun, to Attorney General Charles Cole (contained in Attachment 1). She stated, "When there is no money to do what we are statutorily mandated to do, where do the funds come from to hold the REAA/CRSA elections in order not to disenfranchise the voters in these jurisdictions...the Department of Justice would censure the State of Alaska for disenfranchising". Representative Hoffman asked Ms. Thickstun what censuring would take place. Ms. Thickstun replied that the Department of Justice could initiate litigation against the State of Alaska or appoint a panel to perform the elections. Representative Hoffman asked if Ms. Thickstun had considered the Division's options should the Legislature refuse funding of the supplemental request. He also asked if Ms. Thickstun 4 worked with the Department of Law to provide supporting materials for their request. Ms. Thickstun replied that the Division did work with the Department of Law to provide documentation for the request of additional funding. She discussed the need for funding with the Lieutenant Governor and Department of Law staff. Representative Hoffman asserted that the Administration spent the funds for reapportionment knowing that the Legislature would reappropriate funds for the elections. Co-Chair Larson noted that the existing bill title will assure that the appropriation will be spent for regional educational attendance area school boards and coastal resource service area boards elections. Representative Martin agreed. Representative Martin noted the possibility of litigation resulting from the failure to fund elections. He asserted that such litigation could be costly. Representative Grussendorf agreed that appropriations to a Budget Request Unit (BRU) was shuffled by the Administration to force the Legislature to supply additional funds. Representative Navarre suggested that the title be changed to delete "regional educational attendance area school boards and coastal resource service area boards" and add, "to the Division of Elections." He further suggested HB 68 be amended to read, "The sum of $90,000 is appropriated from the general fund to the Office of the Governor, division of elections, to replace funds appropriated in FY 93, diverted for other purposes. This appropriation is to be used to pay for the costs of the March, 2, 1993 regional educational attendance area school boards and coastal resource service area boards for the fiscal year ending June 30, 1993. An effective date clause was included. Members discussed the need for a title change. Representative Navarre concluded that a title change was not necessary. Representative Navarre MOVED to adopt AMENDMENT NO. 1, add on line 6, "replace funds appropriated in FY 93, diverted for other purposes. This appropriation is to be used to". Representative Martin OBJECTED. Representative Martin supported the underlying message of the amendment but not its inclusion in HB 68. Members discussed the March 2, 1993 election date. A roll call vote was taken on the motion to adopt AMENDMENT NO.1. 5 IN FAVOR: Brown, Foster, Grussendorf, Hanley, Hoffman, Navarre, Parnell, Therriault, Larson, MacLean OPPOSED: Martin The MOTION PASSED (10-1). Representative Navarre MOVED to report CSHB 68 (FIN) out of Committee with individual recommendations. There being NO OBJECTION, it was so ordered. CSHB 68 (Fin) was reported out of Committee with a "do pass" recommendation. ADJOURNMENT The meeting adjourned at 2:30 p.m. 6