HOUSE FINANCE COMMITTEE JANUARY 26, 1995 1:35 P.M. TAPE HFC 95 - 7, Side 2, #000 - end. TAPE HFC 95 - 8, Side 1, #000 - end. TAPE HFC 95 - 8, Side 2, #000 - #250. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 1:35 P.M. PRESENT Co-Chair Hanley Representative Kohring Co-Chair Foster Representative Martin Representative Mulder Representative Therriault Representative Brown Representative Parnell Representative Kelly Representative Grussendorf and Representative Navarre were not present for the meeting. ALSO PRESENT Bruce Botelho, Attorney General, Department of Law; Richard Pegues, Director, Division of Administrative Services, Department of Law; Joe Perkins, Commissioner, Department of Transportation & Public Facilities; Ron Lind, Director, Division of Administrative Services, Department of Transportation and Public Facilities; Ron Otte, Commissioner, Department of Public Safety; Ken Bischoff, Director, Division of Administrative Services, Department of Public Safety; Mike Greany, Director, Legislative Finance Division; Dr. Jerome Komisar, President, University of Alaska; Wendy Redman, Vice President for University Relations, University of Alaska; Alison Elgee, Budget Director, University of Alaska; Representative Con Bunde; Representative Eileen MacLean; Representative Scott Ogan; Representative John Davies; Representative Caren Robinson; Barbara Ritchie, Assistant Attorney General, Department of Law; Laurie Otto, Assistant Attorney General, Department of Law. SUMMARY AGENCY OVERVIEWS: Department of Law 1 Department of Transportation & Public Facilities Department of Public Safety University of Alaska (*Copies of log notes, meeting tapes and handouts are on file with the Legislative Finance Division. Contact #465- 3795). Log DISCUSSION DEPARTMENT OF LAW OF LAW, provided an overview of the responsibilities of the Department of Law. He used graphic charts to emphasize important areas within that department. The Department is divided into two sections, criminal and civil. prosecution of crimes in the State and to provide the legal counsel for the Department of Corrections (DOC), Department of Public Safety (DPS) and the Office of Special Prosecution Appeals (OSPA). offices throughout the State. Attorney General Botelho emphasized that policy problems in the Department originate from the 30% growth rate in misdemeanor prosecution case loads. The Department's use of word processing has enabled them to accommodate some of that increase, although that equipment is now antiquated and much of it is no longer working. legal service to the Legislative, Executive and Judicial Branches of the government. headquarters for the civil division is housed in Juneau with attorneys throughout the State. That division provides legal service to all departments. division responsibilities for the Department of Law. 2 Natural Resources; Governmental Affairs Section; Legislative & Regulations; Oil & Gas & Mining; Commercial; Human Services; Special Litigation (Torts); Transportation; Collections & Support; Environmental; Fair Business Practices; Medicaid Provider Fraud; Welfare Fraud; and Administrative Services Division. in the civil division have changed with the drastic increase in juvenile delinquents. The Department is currently contemplating how to handle the increase. 1992 323 felonies 1994 702 felonies protection for child services. oil and gas cases have been solved, although there continues to be on-going smaller disputes and royalty negotiations. Fiscal policy will not be enhanced by any major settlement windfalls. question regarding the number of royalty cases still in negotiation by the State. These are: Amerada Hess Pt. McIntyre recommended funding level. Commissioner Botelho advised that receiving the amount requested for the first six months is crucial. He asked consideration of full year funding, whereas, with the resolution of that case, there will be a large reduction to the oil and gas section expenditures. to juvenile delinquents resulted from last year's legislation to treat these offenders as adults. Commissioner Botelho indicated 3 that historically, all juvenile cases were treated as felonies. DEPARTMENT OF LAW, added that juvenile delinquent cases are handled by Division of Family and Youth Services (DFYS). She added that the felony case increase in Anchorage was 42% since 1992. She added that, one attorney in Anchorage is handling all those cases. agency overview. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES TRANSPORTATION AND PUBLIC FACILITIES, provided the Committee with a handout. [Copy on file - Attachment #1]. and Public Facilities (DOTPF) basic responsibilities and services: 1. Maintain and operate the State highway system. 2. Maintain and operate the Alaska Marine Highway System. 3. Maintain and operate public facilities occupied by the department and multiple State agencies. 4. Maintain and operate Anchorage and Fairbanks International Airports. 5. Maintain and operate other airports statewide (except Ketchikan, Juneau, Soldotna, Merrill Field, Kenai and a few others). 6. Design and Construct capital projects: Federal Highway program Federal Aviation program Buildings and Harbors 7. Current employment is approximately 2750 people (about 2965 in summer). 4 Surface Transportation Efficiency Act (ISTEA) money and asked how those funds would be distributed among the western states. Commissioner Perkins noted that this is a high priority of the Administration, in order to guarantee that Alaska receive a fair ratio of those funds. HFC 8 - 1 RON LIND, DIRECTOR, DIVISION OF ADMINISTRATIVE #000 SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, pointed out there is an established formula used to determine the distribution of the ISTEA funds. He offered to provide that information to the Committee. Representative Don Young is the second ranking member on the U.S. Transportation Committee and he should be able to guarantee Alaska appropriate funding. prior funding to DOTPF; some funds remaining from completed projects and funds authorized and not yet used. Commissioner Perkins agreed that the Department should be scrutinized in order to determine which sections and projects are sustainable and which should be contracted out. supplemental would increase due to the expanded ferry schedule. Representative Kohring observed that more emphasis should be placed on receipt of federal monies. Facilities completed their FY96 budget overview. DEPARTMENT OF PUBLIC SAFETY SAFETY (DPS), introduced himself to the Committee. He commented on the common misconception that the Department of Public Safety's budget has increased. Non-Core pass 5 through now compose approximately 27% of the budget. Two hundred employees and $42 million dollars would be required in the core mission and support programs to provide the level of service provided in FY83. their responsibilities for the Department: 1. Fire Prevention - Fire education programs discontinued, inspecting approximately 18% of 10,000 state jurisdictional structures. Fire Service training continues at a reduced level. Life and property losses are increasing. Fire education programs influence these trends. 2. Motor Vehicles - DMV services 1500 citizens daily and collects more than $30 million dollars annually. Impact of the loss of 9 seasonal with higher forced vacancy will be felt this spring with peak wait times of 2-3 hours in a major field office. Commercial fisheries are attributed with providing approximately 35,000 jobs. FWP has already been reduced from 118 commissioned in FY84 to 86 in the Hickel budget. 4. Troopers - The troopers are underfunded by approximately $1 million more than would be experienced by normal attrition and refilling with academy graduates. Network/Criminal Records and Identification -reorganization of the essential role of criminal justice information management plays throughout the criminal justice system and in the improvement of the public safety delivery for line programs. contract jails. Commissioner Otte replied that the Department would support the recommendation of the task force. 6 violence and sexual assault would be included in the non-core reduction. Commissioner Otte agreed that domestic violence programs are crucial programs. are transferred from the Federal Highway funds, who is responsible for deciding how those funds are allocated. Commissioner Otte reported that the Department has no control what those funds are used for. That information is predetermined on the federal level. FY96 agency overview. UNIVERSITY OF ALASKA ALASKA, provided Committee members with a brief history of the University. The University of Alaska has been in existence for 3/4 of a century. He added that the University has: * Introduced thousands of Alaskans to a great range of human inquiry; * Prepared Alaskan teachers and nurses, engineers and political leaders; * Served the states cultural and economic interests; * Discovered scientific and technological knowledge that enriches Alaska's industry. * Administrative efficiencies/savings * Lower per student costs - especially in rural areas * Higher faculty/staff productivity * Identification of campus and system priorities 7 * Greater intercampus collaboration * Campus differentiation * Higher proportion of non-general fund support * Innovative funding alternatives * Enhanced collaboration with schools, business, other state agencies * Enhanced distance delivery opportunities priorities for the University: * Deferred maintenance * UAF Code compliance * Finish buildings - Natural Science & Mat-Su classrooms * UAA Communications * Student housing * Upgrade management systems HFC 8 - II Representative Martin voiced his appreciation of the #000 program assessments made by the University. President Komisar acknowledged the decisions were difficult to make as each program was supported by specific interests. tuition per credit hour. Administration budget would differ from that proposed by Governor Knowles for the University. President Komisar stated it was too early to detect. new facilities being proposed when the State does not have the funds to maintain those already existent. 8 that building additional student housing would enhance the opportunities and income from generated University receipts. Komisar to address the status of the student population in the State. President Komisar pointed out that the trend is more full time students than in previous years. He added, the vocational education programs have weakened with less services being funded for this group. National trends are not being followed in Alaska. agency overview. ADJOURNMENT The meeting adjourned at 3:15 P.M.