HOUSE FINANCE COMMITTEE March 27, 1993 1:00 p.m. TAPE HFC 93-71, Side 2, #000 - end. TAPE HFC 93-72, Side 1, #000 - end. TAPE HFC 93-72, Side 2, #000 - end. TAPE HFC 93-73, Side 1, #000 - end. TAPE HFC 93-74, Side 1, #000 - end. TAPE HFC 93-74, Side 2, #000 - 240. CALL TO ORDER Co-Chair Larson called the House Finance Committee to order at 1:00 p.m. 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 Representative G. Phillips; Representative Brice; Representative Nicholia; Representative Mackie; Representative Finklestein; Representative Davis; Mike Greany, Director, Legislative Finance Division; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget; Mike Maher, Deputy Commissioner, Department of Education; Stan Ridgeway, Deputy Director, Vocational Rehabilitation, Department of Education; Gary Bader, Director, Administrative Services, Department of Education; Duane Guiley, Finance Director Department of Education; Allan Barnes, Executive Director, Postsecondary Education Commission; Ron Lind, Director, Plans, Programs and Budget, Headquarters, Department of Transportation and Public Facilities; W. Keith Gerken, Deputy Commissioner, Operations, Department of Transportation and Public Facilities; Janice Adair, Assistant Commissioner, Department of Environmental Conservation; SUMMARY INFORMATION HB 55 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." 1 HB 55 was HELD in Committee. DEPARTMENT OF EDUCATION - AMENDMENTS Co-Chair Larson MOVED to ADOPT the Governor's amendment for the Department of Education, COMPONENT 1627, eliminate Aleutian Region as single site school (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's amendment for the Department of Education, component 157, fully fund PCN 7717 for 12 months (copy on file). GARY BADER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF EDUCATION explained that the PCN was shown at less than 12 months due to an error. There being NO OBJECTION, the Governor's amendment for the Department of Education, component 157 was adopted. Co-Chair Larson MOVED to ADOPT the Governor's amendment for the Department of Education, component 210, technical; correction on expenditure line (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT AMENDMENT DOE-1, $32.5 thousand general fund dollars for interpreter referral services for deaf clients (copy on file). He explained that the Department of Education had proposed this amount for reduction in the hopes that a fee-for-service arrangement could be developed. Fees cannot be established and collected by the local service agencies in the upcoming fiscal year. STAN RIDGEWAY, DEPUTY DIRECTOR, VOCATIONAL EDUCATION, DEPARTMENT OF EDUCATION explained that services fees will come from agencies and organizations that are responsible for hiring the interpreter. It is a statewide service provided by a private organization. Interpreters are paid between $35 and $15 dollars an hour. There being NO OBJECTION, AMENDMENT DOE-1 was adopted. Co-Chair MacLean MOVED to ADOPT AMENDMENT DOE-2 (copy on file). Representative Navarre OBJECTED. Co-Chair MacLean explained that the amendment would increase funding for the Rural School Vocational Education Program, Alaska State Library, Alaska State Museums and Kotzebue Technical Center. Funding for the Alaska State Council on the Arts and the Alaska Vocational Technical Center would be reduced. Representative Martin MOVED to AMEND the amendment to delete 2 the $6.3 thousand dollar increased funding for the Alaska State Museum and add $6.3 thousand dollars to the Alaska Vocational Technical Center. A roll call vote was taken on the motion to amend. IN FAVOR: Brown, Hanley, Martin, Parnell, Therriault OPPOSED: Foster, Grussendorf, Hoffman, Navarre, Larson, MacLean The MOTION FAILED (5-6). Co-Chair MacLean MOVED to ADOPT AMENDMENT DOE-2. A roll call vote was taken on the motion. IN FAVOR: Foster, Grussendorf, Hoffman, MacLean, Larson OPPOSED: Martin, Navarre, Parnell, Therriault, Brown, Hanley The MOTION FAILED (5-6). Amendment DOE-3 was WITHDRAWN. Representative Brown provided members with AMENDMENT DOE-4 issued at the request of Representatives Williams, Nicholia, Mackie and Hudson, Additional District Support K-12, $1,066,280 million dollars (copy on file). REPRESENTATIVE JERRY MACKIE stressed that the amendment would restore funding taken out of CSHB 45 (FIN). Co-Chair Larson stressed that all of the fifty five school districts need more funding. He felt that all single site school districts should be treated equally. Members discussed options to assure that the remaining single site school districts are funded. There being NO OBJECTION, Amendment DOE-4 was adopted. Representative Navarre MOVED to ADOPT AMENDMENT DOE-5, to delete $250.0 thousand dollars in general funds and insert $275.0 thousand dollars in interagency receipts for American with Disabilities, Department of Education (copy on file). He explained that the amendment would return the budget to the current year appropriation. Mr. Bader noted that the component had been reduced from $225.0 thousand dollars to $200.0 thousand dollars. He stated that the amendment would result in a $50.0 thousand dollar reduction to the Division of Vocational Rehabilitation. The Department currently receives $25.0 thousand dollars in program receipts from training seminars held by the Department. 3 CHERYL FRASCA, DIVISION DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR stressed that the Governor chose to put the component in the budget and not use interagency receipts. Representative Navarre WITHDREW AMENDMENT DOE-5. Representative Grussendorf MOVED to ADOPT AMENDMENT DOE-6, $224.0 thousand dollars for preventative maintenance at the Mt. Edgecumbe High School (copy on file). Mr. Bader stated that the school did not submit a request for additional maintenance funding. Co-Chair Larson gave a brief overview of the Mt. Edgecumbe High School budget. Representative Martin stressed that all schools should be treated equally. Co-Chair Larson pointed out that Mt. Edgecumbe has residential care. A roll call vote was taken on the motion to adopt AMENDMENT DOE-6. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, MacLean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). Representative Brown MOVED to ADOPT AMENDMENT DOE-7, restore $28.0 thousand dollars for the Alaska State Council on the Arts (copy on file). She spoke in support of Amendment DOE- 7. (Tape Change, HFC 93-72, Side 1) A roll call vote was taken on the motion to adopt DOE-7. IN FAVOR: Brown, Grussendorf, Hoffman, Therriault OPPOSED: Foster, Hanley, Martin, Parnell, Navarre, MacLean, Larson The MOTION FAILED (4-7). Representative Brown provided members with AMENDMENT DOE-8, restore $12.0 thousand dollars to Professional Teaching Practice Commission (copy on file). The amendment was by request of Representative Brice. REPRESENTATIVE TOM BRICE stressed that the Commission would be hampered if the reduction were not restored. Co-Chair Larson noted that the funding was originally in the Commission's budget for use as a RSA to the Department of Law. He stated that if legal services are needed the Commission could present a request for program receipts to 4 the Legislative Budget and Audit Committee. Mr. Bader suggested the amendment should be general fund, not general fund program receipts. He noted that the Governor's budget included more program receipt authority than what was realized in FY 93. A roll call vote was taken on the motion to adopt DOE-8. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Foster WITHDREW AMENDMENT DOE-9 (copy on file). Representative Brown MOVED to ADOPT AMENDMENT DOE-10, restore $37.5 thousand dollars for Library Operations component. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Brown MOVED to ADOPT AMENDMENT DOE-11 (copy on file). She explained that Amendment DOE-11 would result in a net zero. Amendment DOE-11 was submitted at the request of Representative Bettye Davis. Representative Brown noted that $100.0 thousand dollars would be shifted from the administration (as an unallocated reduction) to the Basic Education and Instructional Improvement component. REPRESENTATIVE BETTYE DAVIS observed that the Comprehensive School Counseling Program had been previously supported by Carl Perkins Federal Vocational Eduction funds. She noted that the program is not currently being funded. Carl Perkins funding now goes to the school districts to use at their discretion. She maintained that the program helps to raise private funding. Co-Chair Larson noted that legislation sponsored by Representative Collins was passed in 1991. He gave a brief history of the programs funding. MIKE MAHER, DEPUTY COMMISSIONER, DEPARTMENT OF EDUCATION stated that the Department would transfer funding through RSA's to provide funding if the amendment is passed. A roll call vote was taken on the motion to adopt Amendment DOE-11. 5 IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Therriault OPPOSED: Foster, Hanley, Martin, Parnell, MacLean, Larson The MOTION FAILED (5-6). Representative Brown MOVED to ADOPT AMENDMENT DOE-12, restore $17.4 thousand dollars, Adult Basic Education grants (copy on file). She maintained that the reduction would have a greater impact on rural areas. She asserted that the reduction could affect federal funds. The program serves 6,046 full time students at $353 dollars per student. Mr. Bader stressed that there are $558.0 thousand dollars in federal funds at risk if the program is not maintained at the prior year's funding level or the per student support sustained. A roll call vote was taken on the motion to adopt AMENDMENT DOE-12. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Foster, Hanley, Parnell, Therriault, MacLean, Larson OPPOSED: Martin The MOTION PASSED (10-1). Co-Chair MacLean MOVED to ADOPT AMENDMENT DOE-13, to delete $355.2 thousand dollars in corporate receipts, Alaska Postsecondary Education (copy on file). She explained that the amendment would deny the addition of 7 new full time positions. She discussed prior expenditures for data conversion problems and backlog. ALLAN BARNES, EXECUTIVE DIRECTOR, POSTSECONDARY EDUCATION COMMISSION explained that there was a net increase of 7,000 loans in repayment during 1992. There have been 8,000 new loans in repayment added in 1993. He observed that an additional 8,000 - 9,000 loans are expected for repayment each year over the next three years. He asserted that the annual default rate has been reduced from 25 to 7 percent. He discussed conversion problems. Co-Chair MacLean WITHDREW AMENDMENTS DOE-13 and DOE-14 (copy on file). Co-Chair MacLean MOVED to ADOPT INTENT LANGUAGE DOE-D: "It is the intent of the Legislature that the Commission on Postsecondary Education prepare a plan to privatize student loan operations and report back to the Legislature by February 15, 1994." Co-Chair Larson MOVED to AMEND the intent language, to add "and recommend to the assembly private institutions to take over operations." There being NO OBJECTION, intent language DOE-D was amended. There 6 being NO OBJECTION, intent language DOE-D was adopted. Co-Chair Larson MOVED to ADOPT INTENT LANGUAGE DOE-A (copy on file). A vote was not taken due to the lack of a quorum. Representative Brown MOVED to ADOPT INTENT LANGUAGE DOE-B (copy on file). Intent language DOE-B was submitted at the request of Representative Brice. Representative Brice explained that the intent language would direct Vocational Rehabilitation to use $100.0 thousand dollars to fund project walkback. STAN RIDGEWAY, DEPUTY DIRECTOR, VOCATIONAL REHABILITATION, DEPARTMENT OF EDUCATION stressed that the intent language would direct state match money to individuals not currently eligible for vocational rehabilitation support. A roll call vote was taken on the motion to adopt Intent Language DOE-B. IN FAVOR: Brown, Grussendorf, Navarre, Therriault OPPOSED: Foster, Hanley, Martin, MacLean, Larson Representatives Hoffman and Parnell were not present for the vote. The MOTION FAILED (4-5). Co-Chair Larson noted that Intent Language DOE-C was submitted at the request of Representative Bunde (copy on file). (Tape Change, HFC 93-772, Side 2) The intent language prioritizes funding reductions in the Postsecondary Education Commission, WICHE program. A roll call vote was taken on the motion to adopt Intent Language DOE-C. IN FAVOR: Martin, Larson OPPOSED: Brown, Grussendorf, Hoffman, Navarre, Foster, Hanley, Parnell, Therriault, MacLean The MOTION FAILED (2-9). Co-Chair Larson restated his motion to ADOPT INTENT LANGUAGE DOE-A. Representative Navarre explained that the intent language would direct the Division of Vocational Rehabilitation to review alternatives for shifting services currently provided by its employees to the private sector. He observed that the private sector may be able to provide the service in a more cost effective manner. Representative 7 Martin suggested that it would be better if the review was conducted outside of the Division. There being NO OBJECTION, Intent Language DOE-A was adopted. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES - AMENDMENTS Representative Therriault note his intention to address at a later date, the Governor's Amendment for the Department of Transportation and Public Facilities, component #547, participation in the State Emergency Response Commission (copy on file). The Governor's amendment for component #547 was HELD open. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Transportation and Public Facilities, component #561, consolidation of facilities leasing and management functions (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Transportation and Public Facilities, component 563, consolidation of facilities leasing and management functions (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Transportation and Public Facilities, component 833, $1.8 million dollars for Dalton Highway maintenance (copy on file). KEITH GERKEN, DEPUTY COMMISSIONER, OPERATIONS, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES explained that the Department is unable to conduct maintenance of the Dalton Highway without additional funding. Representative Parnell OBJECTED to the motion to adopt the Governor's Amendment for the Department of Transportation and Public Facilities, component 833, $1,8 million dollars for Dalton Highway maintenance. Representatives Navarre and Therriault spoke in support of the amendment. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Foster, Parnell, Therriault, MacLean OPPOSED: Martin, Larson Representative Hanley was not present for the vote. The MOTION PASSED (2-8). Co-Chair Larson MOVED to ADOPT the Governor's Amendment for 8 the Department of Transportation and Public Facilities, component #591, technical position realignment (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Transportation and Public Facilities, component #1879, facilities leasing and management consolidation (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Transportation and Public Facilities, component #1880, facilities leasing and management consolidation (copy on file). There being NO OBJECTION, it was so ordered. Representative Foster MOVED to ADOPT AMENDMENT DOT-1 (copy on file). Mr. Gerkin explained that Amendment DOT-1 would add back $95.4 thousand dollars to Southeast Administration Services. He added that the reduction was the result of an error. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED to ADOPT AMENDMENT DOT-2 (copy on file). He explained that the amendment would add maintenance funding for new roads. Mr. Gerkin gave examples of how the funds would be spent. Representative Navarre maintained that the deferred backlog will be increased if funding for new road maintenance is not adopted. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Navarre WITHDREW AMENDMENTS DOT-3 and DOT-4 (copy on file). Representative Hanley MOVED to ADOPT AMENDMENT DOT-5 (copy on file). Amendment DOT-5 was submitted at the request of Representative Phillips. REPRESENTATIVE GAIL PHILLIPS explained that Amendment DOT-5 would make a general reduction by component and line item, including restoration of six reductions proposed by the Subcommittee, to hold operations and maintenance harmless. The total reduction would be $298.8 thousand dollars. Representative Foster OBJECTED to Amendment DOT-5. Members discussed reductions contained in Amendment DOT-5. 9 Mr. Gerkin observed that the amendment would result in less general funds for administrative activities. He pointed out that the Department's administrative budget has been cut by 48 percent over the past 10 years. He emphasized that efficient management of the department would be difficult without sufficient support. Representative Navarre spoke in support of the Department. Co-Chair Larson MOVED that AMENDMENTS DOT-5 to DOT-10 be HELD in Committee. There being NO OBJECTION, it was so ordered. Representative Foster MOVED to ADOPT AMENDMENT DOT-11 (copy on file). The amendment would remove the transfer of $175.0 thousand dollars for the Alaska Marine Highway System to Headquarters. (Tape Change, HFC 93-73, Side 1) Representative Grussendorf spoke in support of Amendment DOT-11. Members discussed whether the intent is to withdraw $175.0 thousand dollars from Headquarters or to add new general fund dollars. Mr. Gerkin stressed that a further reduction from Headquarters would result in RSAs from maintenance. MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION explained that the amendment would add $175.0 thousand general fund dollars to the Alaska Marine Highway System. Co-Chair Larson reiterated that the amendment would add $175.0 thousand general fund dollars to the Alaska Marine Highway System without a decrease in Headquarters. A roll call vote was taken on the motion to adopt AMENDMENT DOT-11. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (5-6). Representative Navarre MOVED to ADOPT INTENT LANGUAGE DOT-A (copy on file). Intent Language DOT-A was submitted at the request of Representative Brice. The intent language instructs the Department to have two maintenance workers at maintenance camps on the Dalton Highway. There being NO OBJECTION, it was so ordered. DEPARTMENT OF ENVIRONMENTAL CONSERVATION-AMENDMENTS Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component 10 specialist (copy on file). There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component section (copy on file). JANICE ADAIR, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION clarified that the project was in the Department's operating budget. She noted that the funding source is 470 funds. There being NO OBJECTION, component #1814, transfer response vessel capitalization to the front section was adopted. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component Water and Water Programs (copy on file). Ms. Adair explained that there was a miscellaneous $400.0 thousand dollar reduction in the Governor's proposed budget for the Department of Environmental Conservation. The Governor's amended budget reinstated $200.0 thousand dollars of the reduction. There being NO OBJECTION, component #1818, off-set miscellaneous through reductions in Waste Water and Water Programs was approved. Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component miscellaneous reduction (copy on file). Representative Martin OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Therriault OPPOSED: Hanley, Martin, Parnell, Larson The MOTION PASSED (5-4). Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component miscellaneous reduction. There being NO OBJECTION, it was so ordered. (copy on file). 11 Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component Administration and Pipeline Regional (copy on file). Representative Martin OBJECTED. The amendment was HELD open. Representative Grussendorf MOVED to ADOPT AMENDMENT DEC-1, $1.2 million dollars for Local Emergency Response Committees (LEPC) (copy on file). Representative Therriault OBJECTED. Representative Therriault MOVED to AMEND the amendment, to delete $1.2 million dollars and insert $200.0 thousand dollars. Representative Grussendorf spoke in opposition to the motion to amend Amendment DEC-1. He maintained that $200.0 would not be enough for the 26 communities trying to develop and analyses plans for emergency response. Representative Therriault stated that the Department indicated that $100.0 thousand dollars would cover travel costs and minimum costs. He felt that state and municipal efforts are being duplicated. A roll call vote was taken on the motion to amend Amendment DEC-1. IN FAVOR: Hanley, Martin, Parnell, Therriault, Larson OPPOSED: Brown, Grussendorf, Hoffman, Navarre Co-Chair MacLean and Representative Foster were not present for the vote. The MOTION PASSED (5-4). A roll call vote was taken on the motion to adopt Amendment DEC-1 as amended. IN FAVOR: Brown, Grussendorf, Hanley, Hoffman, Navarre, Parnell, Therriault, Larson OPPOSED: Martin The MOTION PASSED (8-1). Co-Chair MacLean and Representative Foster were not present for the vote. Representative Therriault WITHDREW AMENDMENT DEC-2 (copy on file). Representative Navarre MOVED to ADOPT AMENDMENT DEC-3, restore $1,140.0 million dollars for Local Emergency Planning Committees. Amendment DEC-3 was submitted at the request of Representative Davies. Representative Navarre 12 MOVED to AMEND the amendment to delete $1.14 million dollars and insert $600.0 thousand dollars. There being NO OBJECTION, it was so ordered. Representative Brown pointed out that the 470 Fund is the funding source. She discussed how the 470 Fund operates. She provided members with back-up material regarding capitalization of the 470 Fund (Attachment 1). (Tape Change, HFC 93-73, Side 1) Co-Chair Larson noted that AMENDMENTS DEC-4 and DEC-5 are identical (copy on file). AMENDMENTS DEC-4 and DEC-5 were WITHDRAWN. REPRESENTATIVE JOHN DAVIES spoke in support of the amendment. He stressed the need to continue the planning process. Representative Therriault spoke against the amendment. Representative Grussendorf noted that the $200.0 thousand dollars adopted in Amendment DEC-2 will only pay for the travel of state personnel. Representative Therriault stated the Department indicated that $100.0 would cover the current 20 LEPC basic operations; including travel to two meeting annually and office supplies. A roll call vote was taken on the motion to adopt Amendment DEC-3 as amended. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, MacLean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). Representative Brown MOVED to ADOPT AMENDMENT DEC-6, restore contaminated site funding (copy on file). Ms. Adair explained how the Department evaluates contaminated sites. She observed that the Department maintains a list of contaminated sites which need to be addressed. She stated that without additional funding several sites on the list would not be addressed. Representative Brown suggested that the Committee authorize funding for 3.5 PFT and roll forward funding to cover grants. There is approximately $1.0 million dollars in roll forward. Co-Chair Larson stressed that a roll forward should be included as a reappropriation. Ms. Adair clarified that the 3.5 positions are currently funded. The House Finance Subcommittee for the Department of Environmental Conservation proposed elimination of the 13 positions. She added that the positions also oversee responsible party cleanup. She maintained that without the positions responsible party site cleanup will be reduced. Representative Therriault suggested that up to $1.0 million dollars of the roll forward be accepted. Representative Navarre spoke in support of the amendment. He maintained that any one of the projects on the Department's list could cost $800.0 thousand dollars. Representative Martin spoke against using the roll forward. Ms. Adair noted that the Department used approximately $2.0 million dollars in FY 93. She anticipates that $2.0 million dollars will be needed in FY 94. Representative Therriault suggested that the amendment be amended to reduce contractual services to $200.0 thousand dollars and allow the roll forward to lapse into the Fund. Representative Therriault MOVED to AMEND the amendment to reduce contractual to $200.0 thousand dollars. Representative Navarre OBJECTED. He asserted that the failure to address contaminated site cleanup will result in greater ground water contamination problems. He pointed out that contaminated ground water remediation will have a much greater cost. He maintained that contaminated site cleanup is one of the most important functions of the state. He stressed the need to clean up sites before an emergency exists. A roll call vote was taken on the motion to amend Amendment DEC-6. IN FAVOR: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson OPPOSED: Brown, Grussendorf, Hoffman, Navarre The MOTION PASSED (7-4). Representative MartIn spoke against spending 470 funds. A roll call vote was taken on the motion to adopt Amendment DEC-6 as amended. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell, Therriault, Hanley, Larson OPPOSED: Foster, Martin, MacLean The MOTION PASSED (8-3). Representative Grussendorf MOVED to ADOPT AMENDMENT DEC-7, add $100.0 thousand dollars, Palmer laboratory (copy on file). He explained that the amendment would allow bi- weekly PSP monitoring of Alaskan crab. Representative 14 Therriault noted that the Subcommittee approved $200.0 thousand dollars. Ms. Adair stressed that $300.0 is needed to adequately monitor PSP levels in crab. A roll call vote was taken on the motion to adopt Amendment DEC-7. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Brown MOVED to ADOPT AMENDMENT DEC-8, restore $81.6 thousand dollars for Facilities Construction and Operations from the Storage Tank Assistance Fund (copy on file). Representative Therriault OBJECTED. She explained that the amendment would support the implementation of Village Safe Water projects. She discussed other funding sources. Representative Therriault stressed that the Facilities Construction and Operations component did not have a large reduction by the Subcommittee. A roll call vote was taken on the motion to adopt Amendment DEC-8. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, MacLean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). Representative Brown MOVED to AMEND AMENDMENT DEC-8 to change the funding source from the Storage Tank Assistance Fund to the General Fund. She explained that the amendment would fund the Community Dump Day at $97.2 thousand dollars. The program allows homeowners to dispose of their household waste. Co-Chair MacLean OBJECTED to the funding source change. Representative Brown suggested that the amendment be changed to the Mitigation Account. Representative Therriault noted that the Mitigation Account appropriates money to the Storage Tank Assistance Fund. He maintained that Mitigation Account funds are general funds. REPRESENTATIVE JOHN DAVIES spoke in support of funding the Community Dump Day. He stressed the importance of diverting hazardous materials from general dump sites. Representative Therriault asserted that the Community Dump 15 Day is a low priority of the Department of Environmental Conservation. (Tape Change, HFC 93-74, Side 1) Ms. Adair maintained that the program is not the Department's lowest priority. A roll call vote was taken on the motion to amend Amendment DEC-9. IN FAVOR: Brown, Grussendorf, Navarre OPPOSED: Foster, Hoffman, Martin, Parnell, Therriault, MacLean, Larson Representative Hanley was not present for the vote. The MOTION FAILED (3-7). A roll call vote was taken on the motion to adopt Amendment DEC-9. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, MacLean OPPOSED: Foster, Martin, Parnell, Therriault, Larson Representative Hanley was not present for the vote. The MOTION FAILED (5-5). Representative Brown MOVED to ADOPT AMENDMENT DEC-10, to change the funding source of the Industrial Waste Water Program from general fund program receipts to the Storage Tank Assistance Fund (copy on file). Ms. Adair discussed the regulatory activities covered by the Industrial Waste Water Program. She maintained that if the Department cannot certify federal permits EPA may deny the issuance of permits. Representative Therriault MOVED to AMEND the amendment to add $100.0 thousand dollars in general funds and delete $100.0 thousand dollars in program receipts. Co-Chair MacLean OBJECTED. A roll call vote was taken on the motion to amend Amendment DEC-10. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Hanley, Martin, Parnell, Therriault OPPOSED: Foster, MacLean, Larson The MOTION PASSED (8-3). A roll call vote was taken on the motion to adopt Amendment DEC-10 as amended. 16 IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Parnell, Therriault OPPOSED: Hanley, Martin, Foster, MacLean, Larson The MOTION PASSED (6-5). Representative Brown WITHDREW AMENDMENTS DEC-11, DEC-12 and DEC-13 (copies on file). Representative Foster MOVED to ADOPT AMENDMENT DEC-14, restore $110.8 thousand dollars to the Spill Prevention Response BRU from the Storage Tank Assistance Fund. Representative Therriault spoke in support of the amendment. Representative Brown OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Grussendorf, Hoffman, Navarre, Foster, Parnell, Therriault, MacLean, Larson OPPOSED: Hanley, Brown, Martin The MOTION PASSED (8-3). Representative Brown MOVED to ADOPT AMENDMENT DEC-15, add $186.0 thousand dollars for the Structural Integrity Project from the Oil and Hazardous Substance Spill Response Fund (copy on file). She stressed the need to ensure that above ground tanks are monitored. A roll call vote was taken on the motion. IN FAVOR: Brown, Hoffman, Grussendorf, Navarre, MacLean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). Representative Brown WITHDREW AMENDMENTS DEC-16 and DEC-17 (copies on file). Representative Brown MOVED to ADOPT AMENDMENT DEC-18, shift $500.0 thousand dollars from the Department of Military and Veterans Affairs, Emergency Services to the Department of Environmental Conservation, Nearshore Project. Representative Therriault spoke in support of the amendment. Co-Chair MacLean OBJECTED. A roll call vote was taken on the motion to adopt Amendment DEC-18. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre, Foster, Hanley, Martin, Parnell, Therriault, Larson OPPOSED: MacLean 17 The MOTION PASSED (10-1). Representative Brown MOVED to ADOPT AMENDMENT DEC-19, $80.0 thousand dollars for Community Dump Day. Amendment DEC-19 was submitted at the request of Representative Davies. Representative Therriault OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Navarre OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (5-6). Representative Hoffman MOVED to ADOPT AMENDMENT DEC-20, (copy on file). Representative Hoffman MOVED to AMEND Amendment DEC-20, to delete $15.0 thousand dollars for DC lobbyist. There being NO OBJECTION, it was so ordered. The amendment would fund the Facility Construction and Operations component at contractual audits - $26.0 thousand dollars, seminars - $10.0 thousand dollars and an engineering intern - $35.6 thousand dollars. Representative Therriault spoke in opposition to the amendment. A roll call vote was taken on the motion. IN FAVOR: Brown, Hoffman, Grussendorf, Navarre, MacLean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). Representative Grussendorf MOVED to ADOPT AMENDMENT DEC-21, add $115.0 to the State Emergency Response Commission. Representative Therriault OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Representative Hoffman MOVED to ADOPT section 31 of AMENDMENT DEC-22 (copy on file). He explained that the amendment would provide $440.0 thousand dollars for contaminated site cleanup in the Koyukuk School District. Representative Navarre asked the total cleanup cost. Representative Hoffman could not answer. Representative Hoffman WITHDREW AMENDMENT DEC-22. Representative Hoffman MOVED to ADOPT AMENDMENT DEC-23, 18 $34.5 thousand dollars, Administration (copy on file). Ms. Adair explained that the amendment would restore to a full time position the Department's human resource (personnel) manager. Representative Therriault OBJECTED. A roll call vote was taken on the motion. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson The MOTION FAILED (4-7). Ms. Frasca further explained the Governor's Amendment for the Department of Environmental Conservation, component Administration and Pipeline Regional. She provide a chart detailing funding transfers (Attachment 2). Co-Chair Larson MOVED to ADOPT the Governor's Amendment for the Department of Environmental Conservation, component #1820, off-set miscellaneous through reductions in Administration and Pipeline Regional. A roll call vote was taken on the motion. IN FAVOR: Brown, Hoffman, Grussendorf, Navarre, MacLean OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson The MOTION FAILED (5-6). Representative Therriault MOVED to ADOPT AMENDMENT DEC-24 (copy on file). The amendment shows reductions of 470 funds to the departments. Representative Therriault reviewed Amendment DEC-24. There would be a net reduction of $309.8 thousand dollars. Representative Navarre MOVED to AMEND Amendment DEC-24, to add $237.3 thousand dollars for LEPC's. Representative Therriault OBJECTED. Representative Parnell observed that the spreadsheet should reflect previous committee action on passing Amendment DEC- 18. Representative Therriault agreed that $500.0 thousand dollars should be transferred from the Department of Military and Veterans Affairs to the Department of Environmental Conservation on the spreadsheet. (Tape Change, HFC 93-74, Side 2) Members discussed oil spill contingency planning in the Department of Natural Resources. Representative Therriault noted that the amendment appropriates $1,005.2 million dollars to the Department of 19 Law for ongoing litigation regarding the Exxon Valdez spill. He suggested that the Legislative Finance Division insert in the proper places where the Committee held open 470 funds being transferred into departments from the 470 Fund. Amendment DEC-24 was HELD open. Representative Therriault MOVED to ADOPT INTENT LANGUAGE DEC-A: "It is the intent of the Legislature that the Oil and Hazardous Substance Release Response Fund not be used for travel outside the state of Alaska." Ms. Adair noted the necessity to provide employee training that cannot be obtained in the state of Alaska. Representative Therriault MOVED to AMEND the intent language to delete the state of Alaska and insert "the United States and Canada". Representatives Brown and Davies spoke in support of travel to Russia. HB 55 was HELD in Committee. ADJOURNMENT The meeting adjourned at 6:55 p.m. 20