HOUSE FINANCE COMMITTEE February 3, 1993 1:35 P.M. TAPE HFC 93 - 15, Side 2, #000 - end. TAPE HFC 93 - 16, Side 1, #000 - end. TAPE HFC 93 - 16, Side 2, #000 - #153. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 1:35 P.M. PRESENT Co-Chair Larson Representative Brown Vice-Chair Hanley Representative Foster Representative Therriault Representative Grussendorf Representative Hoffman Representative Martin Representative Navarre Representative Parnell Co-Chair MacLean was not present for the meeting. ALSO PRESENT Don Harris, Chief of Staff, Office of the Lieutenant Governor; Representative Ulmer; Dan Spencer, Office of Management and Budget, Office of the Governor; Michael Nizich, Director, Division of Administrative Services, Office of the Governor; Charlot Thickstun, Director, Division of Elections, Office of the Lieutenant Governor; Louise Howerter, Elections Supervisor, Southeast Region (District 1), Office of the Lieutenant Governor; Shelly Growden, Elections Supervisor, Central Region (District 17- 21, 24 & 27), Office of the Lieutenant Governor; Claudia Doyle, Elections Supervisor, Northwest Region (District 22, 23, 25, 26), Office of the Lieutenant Governor; Carol Thompson, Elections Supervisor, Southcentral Region (District 7 - 16), Office of the Lieutenant Governor. SUMMARY INFORMATION HB 94 An Act making a supplemental appropriation for costs of elections operations; and providing for an effective date. HB 94 was HELD in Committee for further discussion. 1 HOUSE BILL 94 "An Act making a supplemental appropriation for costs of elections operations; and providing for an effective date." DON HARRIS, CHIEF OF STAFF, OFFICE OF THE LIEUTENANT GOVERNOR, stated that the Division of Elections has requested a supplemental in order to be able to continue operations for the remainder of the fiscal year. Mr. Harris provided the Committee with Attachment #1, a memorandum from Cynthia Halterman, Budget Analyst, Office of Management and Budget (OMB) to Shelby Stastny, Director, OMB, providing background information and a financial analysis of the requested supplemental funding. The request resulted from recent reapportionment decisions and recommendations for cooperation between various State agencies to perform tasks necessary to successfully conducting primary and general elections. Representative Hoffman asked if there was a comparison of expenditures from the FY 92 reapportionment versus the 1980 election. Mr. Harris offered to provide that information. Representative Hoffman questioned if the hiring of temporary personnel had been authorized. Representative Hanley referenced Attachment #2 which provides factual information on reapportionment. Representative Grussendorf pointed out that the costs of the current reapportionment were ten times higher than the last one. Representative Hoffman asked for a breakdown of the amount spent on hiring of temporary personnel. Mr. Harris explained that the authorized number of employees was fifty- two although the actual number hired was seventy-five. There was also $285 thousand dollars of overtime expenses. CAROL THOMPSON, ELECTIONS SUPERVISOR, SOUTHCENTRAL REGION (DISTRICT 7 - 16), OFFICE OF THE LIEUTENANT GOVERNOR, testified via teleconference. She stated that reapportionment had a major effect on the Anchorage office causing a backlog by increasing the number of polling places. There were hundreds of phone calls each day because of voter confusion. She added precincts must be clearly established in order for the Division to go forward with elections. Currently, there are twenty-six thousand applications from the 1993 PFD which need to be entered into the voter registration system by 4/01/93 for upcoming municipal elections. Representative Navarre pointed out that the Division of Elections will run out of funds 2/15/93. He recommended 2 providing a small supplemental which will allow them to function until the end of the fiscal year. Co-Chair Larson added additional alternatives: 1. Provide adequate funding in order to carry the Division over for a temporary period of time. 2. Clearly define the obligations of the Division of Elections with regard to costs associated with functions and personnel. Separate that funding. 3. Provide a fully funded supplemental. Representative Martin understood that special funds had been appropriated to the Division of Elections from the Permanent Fund Dividend (PFD). Representative Navarre replied that funds had not been appropriated from the PFD to the Division of Elections. SHELLY GROWDEN, ELECTIONS SUPERVISOR, CENTRAL REGION (DISTRICT 17-21, 24 & 27), OFFICE OF THE LIEUTENANT GOVERNOR, testified via teleconference. Ms. Growden reiterated the concerns of Carol Thompson. A large part of her area is rural. By the time the reapportionment plan was adopted, the Division of Elections had to adjust precinct boundaries to fit within district boundaries and to reassign all registered voters. She pointed out that all employees had been reduced to a thirty hour work week. With the reduced staffing and the effects of the reapportionment, keeping current is difficult. Representative Therriault asked if Ms. Growden and staff were currently working on the unprocessed registration applications. Ms. Growden noted at this time their office each day receives hundreds of PFD applications. The Central Region consists of forty-eight precincts. The priority of that area is to prepare precinct election materials for the 3/02/93 elections. Representative Navarre corrected an earlier statement and noted there was a fiscal note submitted with the bill passed last year which allowed for Permanent Fund Dividend to provide funds to cover voters registration transfer fees. This fiscal note amounted to $16 thousand General Fund dollars to handle incoming registrations. Co-Chair Larson stated that following the audit of the Division, then the Budget and Audit Committee would schedule a meeting. Moving from a preliminary audit to a final audit includes a thirty day period in which the agency can respond to the audit and any additional information requests. Mr. Harris pointed out that payroll would end for the Division 3 of Elections in the third week of February. REPRESENTATIVE ULMER requested that the committee substitute include funding to cover the Southeast Conference, et. al., attorney's fees. There are a number of communities which funded the lawsuit and the State owes them these funds plus a 10.5% interest charge from the 25th of June 1992 until the amount is paid in full. Representative Therriault understood that some of the attorney fees were being disputed and recommended the disputes be individually investigated. Co-Chair Larson thought reconciliation of attorney fees should be handled by the Department of Law. Representative Martin suggested the charges for the reapportionment legal fees be kept separate from the Election Division supplemental. Representative Navarre explained that the lawsuits resulted from the reapportionment process and the way in which it was executed. There were a number of violations which occurred during that process. Co-Chair Larson asked if a lack of funding had caused the Division of Elections to RSA money to the Department of Law for defense of any reapportionment suits. Mr. Harris stated that $125 thousand dollars was contracted from the Division of Elections budget in order to hire an attorney. Also, there is an obligation to the Department of Administration for $230 thousand dollars for computer services plus an additional billing of $82 thousand dollars from DOA for election purposes. Representative Hanley interjected that the action of the Committee would determine if municipal elections would occur this spring. He emphasized, that the most critical issue before the Committee is to guarantee that elections can be held. Co-Chair Larson asked if amounts due to the Department of Administration and those for legal services had been paid. Mr. Harris replied they have not. (Tape Change, HFC 93-16, Side 1). Representative Parnell asked if the award of the attorney fees had been reduced to a judgement. Representative Ulmer stated she understood they were and that all attorneys fees were awarded with the exception of "expert witness" fees. Representative Parnell asked if the intent would include the attorneys fees reduced to judgement. Representative Ulmer stated that was her intent. Co-Chair Larson asked if the supplemental included a request to pay the municipalities. 4 DAN SPENCER, OFFICE OF MANAGEMENT AND BUDGET (OMB), OFFICE OF THE GOVERNOR, offered to provide that information to the Committee. Representative Grussendorf asked if the Reapportionment Board had a separate budget from the Division of Elections. Mr. Harris stated they did. Representative Brown referenced Attachment #1. She asked how much of the reflected expenditures represent media costs. Mr. Harris asked that someone from the Division of Elections provide that information to the Committee. Representative Brown questioned the increased salary for election workers and asked how much of the budget resulted from that increase. Mr. Harris stated that information was not available. Representative Brown asked if the charge-back from the Department of Administration had included time required for the remainder of the fiscal year. Mr. Harris explained that the Division had incumbered $210 thousand dollars for charge-backs although following the elections, OMB made an additional reallocation in order to continue service until 2/15/93. Representative Brown inquired if the entire amount had been for services already incurred. Mr. Harris noted that there have been no funds requested for work between now and the end of the fiscal year. MICHAEL NIZICH, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, OFFICE OF THE GOVERNOR, responded there are three separate RSA's for various types of work totaling $284 thousand dollars. At this time, unpaid bills total $214 thousand dollars. The additional request includes estimates for the remaining portion of the fiscal year including billings not yet received. Representative Brown asked the reason for increased use of temporary hires during the past election. CHARLOT THICKSTUN, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF THE LIEUTENANT GOVERNOR, explained this resulted from the condensation of six months of work into a two month time period, creating a need for more employees. Waiting for the reapportionment and the primary elections impacted the situation. Representative Brown repeated her question regarding media expenditures. Ms. Thickstun stated that Lt. Governor Coghill had provided television information to the public. 5 Representative Hanley asked if the $356.2 thousand dollars supplemental requested would cover Spring elections throughout the State. SHELLY GROWDEN, ELECTIONS SUPERVISOR, CENTRAL REGION (DISTRICT 17-21, 24 & 27), OFFICE OF THE LIEUTENANT GOVERNOR, testified via teleconference. She pointed out that the Mantanuska Office would be having a special election 4/93. Representative Hanley asked if $356 thousand dollars would be the needed amount to input the fourteen thousand names in the Fairbanks area and the twenty-five thousand names in the Anchorage area in time for the upcoming elections. Ms. Thickstun stated that appropriation could not cover those costs. The supplemental covers costs for only permanent employees to return to a 37.5 hour work week plus the addition of two temporary employees. There is no way the work can be finished on schedule with only two temporary employees. Mr. Nizich noted that the $356.2 thousand dollar allocation would restore the eighteen permanent full time staff to a 37.5 hour work week effective 3/01/93. Those funds would also restore two permanent part-time positions and two temporary positions to assist with the REAA's process. The figures represent what the Division should need to continue operations from 3/01/93 to 6/30/93. Representative Hanley questioned if the appropriation of the funds would allow the April elections to continue as scheduled. Ms. Thickstun stated the registers will not be up to date which will impact the elections. There are not funds available to up date all registers. It would be necessary to have an additional ten temporary employees immediately in the Anchorage region alone. Representative Brown asked the cost to hire ten temporaries for six weeks in order to bring voter registration current before the April elections. Mr. Nizich offered to provide the Committee that information. Representative Brown questioned the repercussions to those voters not included on registers. Ms. Thickstun replied their only alternative, if they were not listed on the register, would be to vote an absentee ballot. LOUISE HOWERTER, ELECTIONS SUPERVISOR SOUTHEAST REGION (DISTRICT 1-6), OFFICE OF THE LIEUTENANT GOVERNOR, spoke to the elections impact in the Southeast area. She stated that work on reapportionment began in this area in October, and consumed most of each day from that time forward. The Region I office tried to cut cost by taking advantage of 6 airline specials for travel and utilized the prisoner work team to set up polling places. Representative Brown asked if it was the responsibility of the Division of Elections to provide maps of voting districts. Ms. Thickstun stated it is and added that maps were placed into the election pamphlets for the candidates. Representative Brown felt those maps were unreadable. She asked if it was a statutory requirement that a readable map be provided. Ms. Thickstun did not know the source of the map requirement. She added that maps are provided by the Division of Elections Office, however, because this was an interim plan the Division opted not to spend money on interim maps. Representative Brown inquired what has become of the new geographic information system purchased for the purpose of reapportionment and making the maps. Ms. Thickstun stated that it is in the Office of Elections waiting to be used as soon as there is a plan. Representative Brown asked if census data was contained in that program at this time. Ms. Thickstun replied it was. Representative Brown asked if there was someone capable of running the program. Ms. Thickstun stated, that currently the necessary personnel are not available nor is the licensing fee paid. Representative Brown asked if the capabilities of the system were available to the Reapportionment Board. Ms. Thickstun stated that Board is currently using the resources of the Department of Labor. Representative Brown was surprised to hear that both the Department of Labor and the Department of Natural Resources have separate data systems. Representative Hoffman asked how many fiscal officers have been employed by the Division of Elections over the past two years. Ms. Thickstun replied there have been four in that time period. Representative Hoffman thought that was a lot of employees for such a short period of time and the amount of work needed to be completed. Co-Chair Larson stated that HB 94 would remain in Committee for further discussion and be rescheduled for 2/05/93. Representative Therriault thought that legal fees should not be included as part of the supplemental because it will complicate the issue. (Tape Change, HFC 93-16, Side 2). HOUSE BILL 55 "An Act making appropriations for the operating and 7 loan program expenses of state government and to capitalize funds; and providing for an effective date." HOUSE BILL 56 "An Act making appropriations for operating expenses for certain programs for which the costs are derived from mandated formulas or criteria, and for expenses for certain leases and contracts for state services and operations; and providing for an effective date." Representative Brown asked for information regarding the budget plan and pointed out her concern that the Committee has not addressed the long range problem. Co-Chair Larson responded that through the subcommittee hearings, the House Finance Committee will determine what is practical for the State. Representative Brown questioned if these concerns would be determined before the subcommittee closeouts. Co- Chair Larson stated the subcommittee closeout process would begin 3/01/93 through 3/15/93. Representative Brown asked if there would be caps assigned to the subcommittees. Co-Chair Larson replied a process to do so is currently under discussion. Representative Navarre asked that all handouts be made available to the minority caucus. Co-Chair Larson agreed to provide that information. Representative Brown suggested that school construction issues be included in consideration of the overall budget. There was discussion concerning any proposed underfunding by the Governor. ADJOURNMENT The meeting adjourned at 3:05 P.M. 8