HOUSE FINANCE COMMITTEE MARCH 29, 1993 1:45 P.M. TAPE HFC 93 - 79, Side 1, #000 - end. TAPE HFC 93 - 79, Side 2, #000 - end. TAPE HFC 93 - 80, Side 1, #000 - end. TAPE HFC 93 - 80, Side 2, #000 - end. TAPE HFC 93 - 81, Side 1, #000 - end. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 1:45 P.M. PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Grussendorf Representative Hoffman Representative Martin Representative Navarre Representative Parnell Representative Therriault ALSO PRESENT Representative Irene Nicholia; Representative Carl Moses; Representative Fran Ulmer; Representative John Davies; Representative Bill Hudson; Representative Ramona Barnes; Representative Jerry Mackie; Representative Tom Brice; Jeff Morrison, Director, Administrative Service Support Systems, Department of Military and Veterans Affairs; Mike Greany, Director, Legislative Finance Division; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget, Office of the Governor; Mike Cushing, Research Analyst, Fish Tax Program, Department of Community and Regional Affairs; Nico Bus, Chief, Financial Services, Department of Natural Resources; Raga Elim, Special Assistant, Department of Natural Resources. 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. HB 55 was held in Committee for further discussion. The following departments were closed: 1 Department of Administration Department of Military and Veterans Affairs Department of Revenue Department of Corrections Department of Labor Department of Fish and Game Department of Commerce and Economic Development Department of Natural Resources Department of Public Safety Department of Community and Regional Affairs University of Alaska HOUSE BILL 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." DEPARTMENT OF ADMINISTRATION Co-Chair Larson MOVED DOA #2 (new amendment) which would restore funds for nutrition, transportation and support services to the Older Alaskans Commission. There being NO OBJECTION, it was so ordered. Co-Chair Larson stated that DOA #3 would be WITHDRAWN with the same concept addressed in the reappropriation or supplemental budget. There being NO OBJECTION, it was withdrawn. Representative Brown MOVED Intent Language for DOA-A which would direct the telecommunications council to continue their work in coordinating the delivery of broadcast services. Co-Chair MacLean indicated her support of the intent. There being NO OBJECTION, it was so ordered. Representative Navarre MOVED DOA #13 which would provide a funding shift for equal employment opportunities. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf, Hoffman. OPPOSED: Parnell, Therriault, Foster, Hanley, Martin, Larson, MacLean. The MOTION FAILED, (4-7). DEPARTMENT OF MILITARY AND VETERANS AFFAIRS JEFF MORRISON, DIRECTOR, ADMINISTRATIVE SERVICES SUPPORT 2 SYSTEM, DEPARTMENT OF MILITARY AND VETERANS AFFAIRS, spoke to the transfer of 470 funds from the Department of Military and Veterans Affairs (DMVA) to the Department of Environmental Conservation (DEC) near-shore project. He pointed out that DMVA does not have the extra $500 thousand dollars within the current Governor's amended budget for the depot project. The original departmental request was $1.3 million dollars which included a separate $100 thousand dollars for the oil and hazardous substance depot project. Representative Therriault elaborated, the DMVA budget includes $800 thousand dollars yet the Department has broken that amount down differently. He emphasized the block of money. Co-Chair MacLean MOVED to RESCIND action taken on DEC #18. Representative Therriault OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Parnell, Foster, Grussendorf, Hanley, Hoffman, Martin, MacLean, Larson. OPPOSED: Therriault, Brown, Navarre. The MOTION PASSED, (8-3). Representative Therriault MOVED TO AMEND DEC #18 changing the amount to $400 thousand dollars split between DEC and DMVA. Mr. Morrison pointed out the shift would require DMVA to reduce the Response Preparedness and Planning component from $600 thousand dollars to $200 thousand dollars which would be harmful to the program. Representative Hoffman OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Therriault, Brown, Grussendorf, Navarre, Parnell. OPPOSED: Foster, Hanley, Hoffman, Martin, Larson, MacLean. The MOTION FAILED, (5-6). Representative Hanley MOVED TO AMEND DEC #18 changing the amount to $200 thousand dollars. He stated it would not affect the Department's response ability. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hanley, Hoffman, Navarre, Parnell, Therriault. 3 OPPOSED: Foster, Martin, Larson, MacLean. The MOTION PASSED, (7-4). DEPARTMENT OF REVENUE Representative Navarre WITHDREW REV #8. There being NO OBJECTION, it was withdrawn. Representative Martin MOVED Intent Language REV-B which would delete all unfunded PCN's within the Department. Representative Brown asked if the elimination of the position could affect a vacancy calculation. MIKE GREANY, DIRECTOR, LEGISLATIVE FINANCE DIVISION, explained the vacancy factor calculation used by each individual department. Representative Martin pointed out the intent would affect only unfunded positions within the Commissioner's Office. CHERYL FRASCA, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, advised that unfunded PCN's have currently been deleted. There being NO OBJECTION to the Intent Language, it was adopted. (Tape Change, HFC 93-79, Side 2). DEPARTMENT OF CORRECTIONS Representative Navarre MOVED TO RESCIND action taken on CORR Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION to RESCIND. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, MacLean, Larson. The MOTION FAILED, (4-7). Representative Navarre MOVED TO RESCIND action taken on CORR A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Hanley, Martin, Parnell, Therriault, Foster, Larson, MacLean. 4 The MOTION FAILED, (4-7). DEPARTMENT OF LAW Representative Hanley MOVED Governor's amendment Section DEPARTMENT OF FISH AND GAME Co-Chair MacLean MOVED TO RESCIND action of failure to adopt F&G #1. There being NO OBJECTION, it was rescinded. Co-Chair MacLean MOVED F&G #1 which would reinstate three regional coordinators in Kotzebue, Dillingham and Southeast. Representative Grussendorf OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hanley, Martin, Parnell, Therriault, Foster, MacLean, Larson. OPPOSED: Hoffman, Navarre, Brown, Grussendorf. The MOTION PASSED, (7-4). Representative Hoffman MOVED F&G #12 which would increase the Kotzebue Board of Fisheries and Game's regional council. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Foster, Grussendorf. OPPOSED: Martin, Parnell, Therriault, Hanley, Larson, MacLean. The MOTION FAILED, (5-6). Co-Chair MacLean MOVED TO RESCIND action taken on F&G #2. There being NO OBJECTION, it was rescinded. Co-Chair MacLean MOVED amendment F&G #2. Representative Navarre OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Martin, Parnell, Therriault, Foster, Grussendorf, Hanley, Hoffman, MacLean, Larson. OPPOSED: Navarre, Brown. 5 The MOTION PASSED, (9-2). Representative Navarre MOVED F&G #9. REPRESENTATIVE JERRY MACKIE explained the amendment would reinstate $388 thousand dollars to the Klawock Hatchery. Co-Chair MacLean recommended raw fish tax as a funding source. Representative Mackie replied that if the House Finance Committee recommended using that tax, the community would not object. He reiterated that the money for the Klawock Hatchery is a priority for the community. (Tape Change, HFC 93-80, Side 1). Representative Hanley noted all hatcheries should be treated equally and added he would not support the amendment. Representative Hanley OBJECTED to F&G #9. Representative Grussendorf pointed out that the Raw Fish Tax would be an inappropriate funding source. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Foster, Grussendorf, Hoffman. OPPOSED: Parnell, Therriault, Hanley, Martin, Larson, MacLean. The MOTION FAILED, (5-6). DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Co-Chair MacLean MOVED Governor's amendment #672. Representative Brown pointed out Section (3) of #672 was held open in order to transfer that section to DEC. Co-Chair MacLean MOVED adoption of Governor's amendment A roll call was taken on the MOTION. IN FAVOR: Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Hoffman, Navarre, MacLean, Larson, Martin. OPPOSED: 0 The MOTION PASSED, (11-0). Co-Chair Larson MOVED TO RESCIND the previous action taken on CRA #2. 6 MICHAEL CUSHING, RESEARCH ANALYST, FISH TAX PROGRAM, DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS, explained the impact of the deletion of program receipts. He provided the Committee with handouts. [Attachment #2, #3, #4]. Mr. Cushing added it was estimated that $3 million dollars would be accumulated of which DCRA would receive $1.5 million dollars. The cost of collection and disbursement will come from the Department of Revenue. Representative Navarre emphasized that the shared fishing tax program would not be a good distribution for funds. He OBJECTED to rescinding action on CRA #2. A roll call was taken on the MOTION. IN FAVOR: Therriault, Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. OPPOSED: Brown, Navarre. Representative Martin was not present for the vote. The MOTION PASSED, (8-2). Representative Navarre MOVED CRA #2. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Navarre, Therriault. OPPOSED: Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. Representative Martin was not present for the vote. The MOTION FAILED, (3-7). Representative Brown MOVED CRA #7 which would restore funding for the Fairbanks Native Association employment program. Representative Hanley OBJECTED. REPRESENTATIVE JOHN DAVIES explained the need for funding the restoration. He asked that funding originate from the general fund rather than the STEP Program. Representative Therriault advised that the STEP Program funding would be more appropriate. (Tape Change, HFC 93-80, Side 2). A roll call was taken on the MOTION. 7 IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Foster, Martin, Parnell, Therriault, MacLean, Larson. Representative Hanley was not present for the vote. The MOTION FAILED, (4-6). Representative Brown MOVED TO RESCIND action on failure to adopt CRA #6. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, MacLean. Representative Hanley was not present for the vote. The MOTION FAILED, (5-5). DEPARTMENT OF NATURAL RESOURCES Representative Therriault MOVED TO RESCIND action on failure to adopt the Governor's amendment #452. Co-Chair MacLean OBJECTED. Representative Therriault stated the money could originate from federal funds. Co-Chair MacLean WITHDREW THE OBJECTION. There being NO FURTHER OBJECTION, the amendment was before the Committee. Representative Therriault MOVED Governor's amendment #452. There being NO OBJECTION, it was adopted. Co-Chair Larson MOVED DNR #1 which would increase nursery operations. The remaining sections of the amendment were withdrawn. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hanley, Hoffman, Parnell, Brown, Foster, Grussendorf, MacLean, Larson. OPPOSED: Martin, Therriault. Representative Navarre was not present for the vote. The MOTION PASSED, (8-2). Representative Brown MOVED DNR #4 which would restore the 8 Governor's FY 94 request for the Oil and Gas Conservation Commission. Co-Chair MacLean OBJECTED. Representative Therriault said that the Department had offered that position in the 1% scenario proposal. NICO BUS, CHIEF, FINANCIAL SERVICE, DEPARTMENT OF NATURAL RESOURCES, stated the loss of the position would jeopardize the loss of federal revenue. RAGE ELIM, SPECIAL ASSISTANT TO THE COMMISSIONER, DEPARTMENT OF NATURAL RESOURCES, added the requested amount would make the position whole not needing additional positions. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Grussendorf, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean. The MOTION FAILED, (5-6). Representative Therriault MOVED DNR #8 which would pro-rate the $75 thousand dollars for State Fairs. Co-Chair MacLean pointed out that the pro-rating of state fair moneys was done disproportionately. She encouraged that the funds be allocated based on an equal percentage reduction (36.55%) applied to each grant from their current grant amount. There being NO OBJECTION, DNR #8 was adopted. Co-Chair MacLean MOVED TO AMEND DNR #8 as recommended in the Committee allocation amount. Representative Therriault stressed he did not want to place general fund dollars back into the budget. Co-Chair MacLean WITHDREW the motion and asked to keep DNR #8 open for further consideration. There being NO OBJECTION, it was held open. Representative Brown MOVED DNR #11 which would restore funding for oil and gas lease programs. Representative Therriault OBJECTED. Mr. Bus noted the reduction would eliminate one lease sale in FY 94. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, MacLean. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, Larson. Representative Navarre was not present for the vote. 9 The MOTION FAILED, (4-6). Representative Brown MOVED DNR #5 which would restore the component to the Governor's FY 94 request, at the same time would maintain personal service funding for twenty-two positions as authorized in FY 93. Mr. Elim pointed out that information resulting from the position would insure proper decision making in land management. Representative Therriault OBJECTED to DNR #5. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Navarre, Brown, Grussendorf, Larson. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean. The MOTION FAILED, (5-6). Representative Navarre MOVED TO RESCIND action taken on DNR level. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre, Larson. OPPOSED: Parnell, Therriault, Foster, Hanley, Hoffman, Martin. Representative MacLean was not present for the vote. The MOTION FAILED, (4-6). Representative Navarre MOVED DNR #13 which provide funds to start a program for developing and marketing virus-free seed potatoes. (Tape Change, HFC 93-81, Side 1). Representative Hanley recommended using program receipts to pay for the program. Representative Davies pointed out currently there is not a program existing. Representative Therriault emphasized that the $50 thousand dollar request would not be sufficient to start a program and recommended placing the program into the Division of Agriculture. Representative Brown requested $240 thousand dollars of ARLF funds be added in order to start the program. Co-Chair Larson replied that ARLF would not be an appropriate source. Representative Davies interjected that $50 thousand dollars 10 could establish the beginning of the program. Representative Therriault OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre. OPPOSED: Therriault, Hanley, Hoffman, Martin, Parnell, Larson, MacLean. Representative Foster was not present for the vote. The MOTION FAILED, (3-7). DEPARTMENT OF PUBLIC SAFETY Representative Therriault MOVED Governor's amendment #799. There being NO OBJECTION, it was adopted. Representative Parnell MOVED DPS #2 which would increase wildlife protection in Bristol Bay, Alaska Peninsula/Eastern Aleutians and Western Aleutians/Bering Sea. REPRESENTATIVE CARL MOSES spoke in support of the amendment. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Foster, Grussendorf, Hanley, Hoffman, Parnell, Larson, MacLean. OPPOSED: Brown, Martin, Navarre. Representative Therriault was not present for the vote. The MOTION PASSED, (7-3). Representative Hanley MOVED Intent Language DPS-A which would keep the canine scent detection unit in the Fairbanks area narcotics task force. There being NO OBJECTION, it was adopted. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Representative Therriault MOVED TO RESCIND CED #5. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hanley, Navarre, Parnell, Therriault, Brown, Larson. 11 OPPOSED: Foster, Hoffman, MacLean. Representative Martin was not present for the vote. The MOTION PASSED, (7-3). Representative Therriault MOVED TO AMEND CED #5 by deleting the $80 thousand dollar general fund contractual from the Commissioner's Office. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hanley, Navarre, Parnell, Therriault, Brown, Larson. OPPOSED: Foster, Hoffman, MacLean. Representative Martin was not present for the vote. The MOTION PASSED, (7-3). Representative Therriault MOVED CED #9 which would provide funding for PSP/Domoic Acid sampling program. Representative Hanley declared a conflict of interest as he serves on a marketing board. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Larson. OPPOSED: Hoffman, Martin, MacLean. The MOTION PASSED, (8-3). UNIVERSITY OF ALASKA Representative Navarre MOVED UOA #1 which would add $115 thousand dollars to the University of Alaska for the rural college/Tanana Valley Campus. Representative Davies provided the Committee with information. [Attachment #5]. Representative Navarre added that $125 thousand dollars could originate from a decrement to the Alaska Geography Textbook. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Therriault, Brown, Foster, Grussendorf, Hoffman. OPPOSED: Martin, Parnell, Hanley, MacLean, Larson. 12 The MOTION PASSED, (6-5). ADJOURNMENT The meeting adjourned at 6:00 P.M. HOUSE FINANCE COMMITTEE MARCH 28, 1993 1:12 P.M. TAPE HFC 93 - 75, Side 1, #000 - end. TAPE HFC 93 - 75, Side 2, #000 - end. TAPE HFC 93 - 76, Side 1, #000 - end. TAPE HFC 93 - 76, Side 2, #000 - end. TAPE HFC 93 - 77, Side 1, #000 - end. TAPE HFC 93 - 77, Side 2, #000 - #155. CALL TO ORDER Co-Chair Ron Larson called the meeting of the House Finance Committee to order at 1:12 P.M. PRESENT Co-Chair Larson Representative Brown Co-Chair MacLean Representative Foster Vice-Chair Hanley Representative Grussendorf Representative Hoffman Representative Martin Representative Navarre Representative Parnell Representative Therriault ALSO PRESENT Janet Clarke, Director, Division of Administrative Services, Department of Health and Social Services; Cheryl Frasca, Director, Division of Budget Review, Office of Management and Budget, Office of the Governor; Michael Nizich, Director, Division of Administrative Services, Office of the Governor; Deborah Wing, Director, Division of Family and Youth Services, Department of Health and Social Services; Margaret Lowe, M.Ed., Ed., S, Director, Division of Mental Health and Development Disabilities, Department of Health and Social Services; Jan Hansen, Director, Division of Public Assistance, Department of Health and Social Services; John Abshire, Deputy Commissioner, Department of Labor; Representative Jerry Mackie; Representative Jim Nordlund; Representative Tom Brice; Representative John Davies; Representative Fran Ulmer; Representative Joe Sitton; Mary Pat Murphy, Director, Media Support Center, Office of the Governor; Mike Greany, Director, Legislative Finance 13 Division; Mel Krosang, Aid to Representative Barnes. 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. HB 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. Amendments were considered for the Department of Health and Social Services, the Office of the Governor, the Legislature and the Department of Labor. DEPARTMENT OF HEALTH AND SOCIAL SERVICES - AMENDMENTS Representative Hanley provided the Committee with a handout [Attachment #1], consisting of the sub-committee's Mental Health Trust Income Account recommendations. The handout out provides a summary of all action taken by the Mental Health Trust Board. A non-mental health portions had been previously closed. [Attachment #2]. Co-Chair MacLean questioned what the impact of the Sourdough expansion delay would be. Representative Hanley noted the facility would be closed and that intent language would address the concern. He pointed out there will be no changes to next year's programing. Co-Chair MacLean asked the decrement impacts to the alcohol and drug abuse programs. Representative Hanley noted 900 less people would be served. JANET CLARKE, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, explained that the Mental Health Board did not prioritize their $17 million dollars list of increments. Representative Brown questioned if needs would be met with individual decrements specified by the subcommittee. Representative Hanley explained there is a spending level of $150 million dollars including the 6% percent. Representative Brown recommended that API be funded from the 6% percent saved funds providing an additional $4 million dollars. Representative Hanley MOVED to accept the Department of Health and Social Services subcommittee recommendations on 14 the Mental Health Trust recommendations. There being NO OBJECTIONS, it was adopted. Representative Hanley provided the Committee a list of the amendments proposed by the Governor which the subcommittee did address and rolled into a portion of the budget adopted by the Committee. He pointed out the Summary of FY 94 G o v e r n o r A m e n d e d B u d g e t Veto\Transfer\Increment\Decrement\Adjustment Records by Agency (3/16/93). Representative Hanley MOVED Section #1013, the proposed Governor's amendment for Women, Infant and Children. There being NO OBJECTION, it was adopted. Representative Hanley MOVED Section #1239, Alcohol/Drug Abuse Grants to offset federal formula decreases. Following discussion in the Committee, the amount was amended to $332 thousand dollars. Co-Chair MacLean MOVED the changed amount of $332 million dollars. Ms. Clarke pointed out that the Governor's suggested amendment originated from all Mental Health Trust to help off set the loss of federal funds which the Division had received. Representative Hanley pointed out the Mental Health Board does not approve of alcohol and drug abuse funds coming from mental health money. Representative Brown OBJECTED to reducing the recommended dollars by the Governor to $332 thousand dollars. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Martin, Navarre, Brown, Foster, Grussendorf, MacLean. OPPOSED: Parnell, Therriault, Hanley, Larson. The MOTION PASSED, (7-4). The amendment stayed at $460 thousand dollars. Representative Hanley explained that Section #1827 would be HELD open for Home and Community based waivers in the amount of $2.966 million dollars which would be addressed in the formula section of the budget. (Tape Change, HFC 93-75, Side 2). Co-Chair Larson pointed out HESS #1, personal services for the institutions and administration, $724 thousand dollars was WITHDRAWN and a revised HESS #1 was distributed to the Committee. Co-Chair Larson MOVED the amendment. Representative Hanley OBJECTED. A roll call was taken on the MOTION. 15 IN FAVOR: 0 OPPOSED: Martin, Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, Hoffman, MacLean, Larson. The MOTION FAILED, (0-11). Representative Martin MOVED HESS #2 which would bring the PFD Hold Harmless component to zero. Representative Brown OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Therriault, Martin, Larson. OPPOSED: Navarre, Parnell, Brown, Foster, Grussendorf, Hoffman, MacLean. Representative Hanley was not present for the vote. The MOTION PASSED, (3-7). Representative Navarre MOVED HESS #3 which would provide $1,590,303 million dollars for early intervention services for the treatment and prevention of child abuse/neglect and/or delinquency. The goals for early intervention services include treatment, home based services and crisis intervention. [Attachment #1]. REPRESENTATIVE FRAN ULMER spoke in support of the amendment. She emphasized the price society pays for allowing people to become totally desperate. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre. OPPOSED: Parnell, Therriault, Foster, Hanley, Martin, MacLean, Larson. The MOTION FAILED, (4-7). Representative Grussendorf MOVED HESS #4 which would provide funds to be used for financial support to Emergency Medical Services and that involvement in activities of the State Emergency Response Commission (SERC). Representative Therriault OBJECTED. A roll call was taken on the MOTION. 16 IN FAVOR: Brown, Grussendorf, Hoffman, Navarre. OPPOSED: Therriault, Foster, Hanley, Martin, Parnell, Larson, MacLean. The MOTION FAILED, (4-7). Co-Chair Larson MOVED HESS #5 which would delete $492.6 thousand dollars for the chronically mentally ill. MEL KROSANG, AIDE, REPRESENTATIVE RAMONA BARNES, stated the amendment was the corresponding amendment made to the Department of Corrections (DOC) budget changing the funding source. Previously, those funds were taken from the HESS budget and then RSA'd to DOC. The transferring of funds would be eliminated. There being NO OBJECTION, it was adopted. Representative Navarre MOVED HESS #6. He pointed out the amount would need to be transferred to DOC providing a decrement of $200 hundred thousand dollars for chronically mentally ill services. Representative Brown MOVED TO AMEND by adding an offsetting increment to the Office of Public Advocacy to reduce the case loads recommended by the Mental Health Board. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Navarre. OPPOSED: Foster, Grussendorf, Hanley, Hoffman, Martin, Parnell, Therriault, Larson, MacLean. The MOTION FAILED, (2-9). Representative Hanley OBJECTED to HESS #6. Ms. Krosang explained use of the program has not housed many inmates although support services and clinicians are available to provide necessary services. (Tape Change HFC 93-76, Side 1). A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Martin, Navarre, Parnell, Therriault. OPPOSED: Foster, Hanley, Brown, MacLean, Larson. The MOTION PASSED, (6-5). 17 Representative Hoffman MOVED HESS #7 which would provide funds for the Bethel Youth Facility which received a five percent reduction. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Hanley, Martin, Parnell, Therriault, Foster, Larson, MacLean. The MOTION FAILED, (4-7). Representative Hoffman MOVED HESS #8 which would add funding for Public Health Services and Community and Health Grants for health aide training. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Brown, Grussendorf, MacLean. OPPOSED: Hanley, Martin, Navarre, Parnell, Therriault, Foster, Larson. The MOTION FAILED, (4-7). Representative Brown MOVED TO AMEND Amendment HESS #9 deleting a portion of the money that is being transferred to the Commissioner's Office from various divisions of the Department and changing the amount to $52.6 thousand dollars. It would restore $52.6 thousand dollars grant line to the Council on Domestic Violence and Sexual Assault. There being NO OBJECTION, it was changed. Representative Brown MOVED HESS #9. Ms. Clarke explained that the Commissioner agreed that if the budget level was approved, there would be no additional RSA's to the Division. She added, DHSS is a large complicated agency requiring appropriate management to administer the $250 million dollars federal funds annually placed into the budget. The Department would oppose any efforts to reduce the level of the Commissioner's Office beyond what the subcommittee recommended. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Parnell, Brown, Grussendorf. OPPOSED: Martin, Navarre, Therriault, Foster, Hanley, Larson. Representative MacLean was not present for the vote. 18 The MOTION FAILED, (4-6). Representative Brown WITHDREW HESS #10, HESS #11, HESS #12 and HESS #13. There being NO OBJECTION, it was so ordered. Representative Brown MOVED HESS #14 which would add $800 thousand general fund dollars and delete $800 thousand dollars Mental Health Trust money. She provided the Committee with back-up information. [Attachment #3 & #4]. Representative Hanley OBJECTED. Ms. Clarke replied that the costs above the basic room and board identified by the Department as residential child care could be attributed to the Mental Health Trust budget. DEBORAH WING, DIRECTOR, FAMILY AND YOUTH SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICE, pointed out that residential care is a facility which handles children who have behavioral problems above the need of a regular foster care program and need additional services above the care they need. REPRESENTATIVE JOHN DAVIES pointed out the Mental Health Trust Board has stated that they oppose the use of funds for the increment. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Hoffman. OPPOSED: Martin, Parnell, Therriault, Foster, Grussendorf, Hanley, Larson. Representative MacLean was not present for the vote. The MOTION FAILED, (3-7). Representative Brown MOVED HESS #15. Representative Davies commented the amendment would restore under-funding for existing field workers. The worker's are employed to determine eligibility for clients. JAN HANSEN, DIRECTOR, DIVISION OF ADULT PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, stated the amendment would provide the necessary match in order to qualify the to federal money. Representative Hanley OBJECTED. [Attachment #5]. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman. 19 OPPOSED: Navarre, Parnell, Therriault, Foster, Hanley, Martin, Larson. Representative MacLean was not present for the vote. The MOTION FAILED, (3-7). Representative Brown MOVED HESS #16. REPRESENTATIVE JIM NORDLUND stated the amendment would restore a decrement to public health nursing in Anchorage. The cut would create an elimination of one public health nurse in Anchorage a severe cutback in clinic hours. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre. OPPOSED: Parnell, Therriault, Foster, Hanley, Martin, MacLean, Larson. The MOTION FAILED, (4-7). Representative Navarre MOVED HESS #17. Representative Nordlund explained that the amendment would provide an additional travel reduction to the Office of the Commissioner. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Foster, Grussendorf, Hoffman, Martin, Navarre, Parnell, Larson, MacLean. OPPOSED: Therriault, Hanley. The MOTION PASSED, (9-2). Co-Chair MacLean WITHDREW HESS #18. There being NO OBJECTION, it was so ordered. Representative Navarre WITHDREW HESS #19 & #20. There being NO OBJECTION, it was so ordered. Representative Martin MOVED HESS #21 reducing general relief medicine for medical assistance. (Tape Change, HFC 93-76, Side 2). Representative Hanley pointed out that since HESS #21 refereed to a formula program, the amendment should be HELD 20 and amended in subcommittee from available General Relief formula funds. Representative Martin advised the federal government would not allow federal Medicaid money used for abortions. Representative Brown MOVED HESS #22 which would retain funding in the amount of $39.5 thousand dollars in mental health trust income with the Mental Health and Development Disabilities Administration. She emphasized that statewide needs for mental health and developmental disability services and programs are extensive. Ms. Clarke added, the transfer would come from the Mental Health Disabilities Administration component. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Martin, Navarre, Parnell, Therriault, Brown, Grussendorf. OPPOSED: Hoffman, Foster, Hanley, Larson, MacLean. The MOTION PASSED, (6-5). Representative Hanley MOVED HESS #23 which would create a $200 thousand dollar fund partial implementation for an external permanency planning review of DFYS clients as directed in AS 47.10.400 - 490. There being NO OBJECTION, it was so ordered. Representative Hanley MOVED HESS #24 which would request funding a pilot project in Fairbanks providing care coordination and brokered mental health/supportive services for elderly clients with ADRD. There being NO OBJECTIONS, it was adopted. Representative Brown MOVED the Intent Language HESS-A noting that it was the intent of the Legislature that DHSS not transfer funding either through an unbudgeted Reimbursable Services Agreement or through an increase to a budgeted Reimbursable Services Agreement to the Administrative Services BRU from other divisions within the Department. There being NO OBJECTION, it was adopted. Representative Hanley MOVED Intent Language HESS-B and HESS- C. There being NO OBJECTION, they were adopted. Representative Hanley MOVED Intent Language HESS-D. Representative Martin OBJECTED. 21 A roll call was taken on the MOTION. IN FAVOR: Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hanley, MacLean, Larson. OPPOSED: Martin. Representative Hoffman was not present for the vote. The MOTION PASSED, (9-1). Representative Hanley MOVED Intent Language HESS-E, HESS-F, HESS-G and HESS-H. There being NO OBJECTION, they were adopted. Representative Hanley WITHDREW Intent Language HESS-I. There being NO OBJECTION, it was so ordered. Co-Chair MacLean MOVED Intent Language HESS-J for the Older Alaskans Commission. There being NO OBJECTION, it was adopted. OFFICE OF THE GOVERNOR MICHAEL NIZICH, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, OFFICE OF THE GOVERNOR, provided the Committee with a handout. [Attachment #6]. He noted that the Division of Elections has submitted a budget amendment in the amount of $580.6 thousand dollars for reapportionment implementation work required for the new year. Representative Brown asked how much of the request resulted from the Board's insistence to rewrite the plan. Co-Chair MacLean noted her opposition to the request. Co-Chair Larson MOVED the Governor's request. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Parnell, Therriault, Brown, Foster, Grussendorf, Hoffman, Martin, Larson, MacLean. OPPOSED: 0 Representative Hanley was not present for the vote. The MOTION PASSED, (9-1). Representative Brown MOVED GOV #1 which would transfer the Department of Environmental Conservation lobbyist contract 22 to the Governor's Office. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Therriault, Brown, Grussendorf, Hoffman, Navarre, Larson. OPPOSED: Parnell, Foster, Martin, MacLean. Representative Hanley was not present for the vote. The MOTION PASSED, (6-4). Representative Navarre WITHDREW GOV #2 & #3. There being NO OBJECTION, it was so ordered. Representative Brown MOVED to amend GOV #4 with a deletion of $19.6 thousand dollars leaving $371.7 thousand dollars for the Media Center and deleting the remainder of the proposed amendment. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Therriault, Brown, Grussendorf, Hoffman, Navarre, Larson. OPPOSED: Foster, Martin, Parnell, MacLean. Representative Hanley was not present for the vote. The MOTION PASSED, (6-4). Representative Brown MOVED GOV #5. (Tape Change, HFC 93-77, Side 1). REPRESENTATIVE TOM BRICE explained the amendment and urged that the Committee adopt it as it would benefit those people in the State with the greatest need. Grants would be distributed to non profit groups for Human Services Community Matching Grants. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Therriault. OPPOSED: Foster, Hoffman, Martin, Parnell, Larson, MacLean. Representatives Hanley and Navarre were not present for the vote. 23 The MOTION FAILED, (3-6). Representative Brown MOVED Intent Language GOV-A. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Foster, Grussendorf, Hoffman, Navarre, Brown, MacLean, Larson. OPPOSED: Martin, Parnell, Therriault. Representative Hanley was not present for the vote. The MOTION PASSED, (7-3). LEGISLATURE Co-Chair MacLean MOVED LEG #1. Representative Navarre requested LEG #1 be HELD. There being NO OBJECTION, it was so ordered. Co-Chair MacLean WITHDREW LEG #2. There being NO OBJECTION, it was so ordered. Co-Chair Larson MOVED LEG #3. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Grussendorf, Hoffman, Navarre, Parnell, Therriault, Brown, Foster, Larson, MacLean. OPPOSED: Martin. Representative Hanley was not present for the vote. The MOTION PASSED, (9-1). Representative Martin MOVED LEG #4 which would eliminate the Senate Page position; a move which would follow the deletion of the House Page position. Representative Grussendorf OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Hoffman, Martin, Parnell, Therriault, Brown. OPPOSED: Navarre, Foster, Grussendorf, MacLean, Larson. 24 Representative Hanley was not present for the vote. The MOTION FAILED, (5-5). Representative Martin MOVED LEG #5. Representative Grussendorf OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Martin, Navarre, Parnell, Therriault, Brown. OPPOSED: Hoffman, Foster, Grussendorf, Larson, MacLean. Representative Hanley was not present for the vote. The MOTION FAILED, (5-5). DEPARTMENT OF LABOR Representative Grussendorf MOVED LABOR #1. Representative Davies commented the amendment would deny FY 94 Governor's reduction to Title 36 payroll audits, enforcement and administration. Representative Martin OBJECTED. JOHN ABSHIRE, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR, commented the amendment would reduce the payroll audits for public works projects by 20%. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf, Hoffman. OPPOSED: Martin, Parnell, Therriault, Foster, Hanley, MacLean, Larson. The MOTION FAILED, (4-7). Representative Grussendorf MOVED LABOR #2. Representative Davies provided the Committee with an amended version of LABOR #2. Representative Grussendorf MOVED THE AMENDED LABOR #2 which would deny FY 94 Governor's reduction to contractor licensing investigators. Representative Hanley OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Navarre, Brown, Grussendorf, Hoffman, Larson, MacLean. 25 OPPOSED: Parnell, Therriault, Foster, Hanley, Martin. The MOTION PASSED, (6-5). Representative Navarre MOVED LABOR #3 which would add $147.0 thousand dollars for Occupational Safety and Health. Representative Navarre MOVED TO AMEND LABOR #3 by deleting the portion which would add $238.0 thousand dollars to the Wage and Hour administration. There being NO OBJECTION TO AMEND, it was so ordered. Co-Chair MacLean OBJECTED to the amended LABOR #3. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre. OPPOSED: Parnell, Therriault, Foster, Hanley, Martin, MacLean, Larson. The MOTION FAILED, (4-7). Representative Navarre MOVED LABOR #4 which would deny FY 94 Governor's reduction to OSH worker certification programs. Representative Davies explained the amendment. Co-Chair MacLean OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Navarre. OPPOSED: Therriault, Foster, Hanley, Hoffman, Martin, Parnell, Larson, MacLean. The MOTION FAILED, (3-8). Representative Navarre MOVED LABOR #5 which would deny the FY 94 Governor's reduction to the Alaska Health Project. (Tape Change, HFC 93-77, Side 2). A roll call was taken on the MOTION. IN FAVOR: Brown, Grussendorf, Hoffman, Navarre. OPPOSED: Foster, Hanley, Martin, Parnell, Therriault, Larson, MacLean. The MOTION FAILED, (4-7). Representative Grussendorf MOVED LABOR #6. 26 REPRESENTATIVE JOE SITTON noted that LABOR #6 would restore $85 thousand dollars in general funds to fund a Worker's Compensation Hearing Officer. Representative Martin OBJECTED. A roll call was taken on the MOTION. IN FAVOR: Foster, Grussendorf, Hoffman, Navarre, Brown. OPPOSED: Hanley, Martin, Parnell, Therriault, MacLean, Larson. The MOTION FAILED, (5-6). Representative Navarre WITHDREW LABOR #7. There being NO OBJECTION, it was so ordered. Co-Chair Larson WITHDREW LABOR #8. There being NO OBJECTION, it was so ordered. No Intent Language was provided for the Department of Labor. ADJOURNMENT The meeting adjourned at 5:15 P.M. 27