HOUSE FINANCE COMMITTEE MARCH 18, 1997 2:20 P.M. TAPE HFC 97 - 62, Side 1, #000 - #470. CALL TO ORDER Co-Chair Mark Hanley called the House Finance Committee meeting to order at 2:20 P.M. PRESENT Co-Chair Hanley Representative Kelly Co-Chair Therriault Representative Kohring Representative Davies Representative Martin Representative Davis Representative Moses Representative Foster Representative Mulder Representative Grussendorf SUMMARY HB 113 An Act extending lapse dates for certain prior year appropriations; making supplemental, capital, and special appropriations; and providing for an effective date. HB 113 was HELD for further discussion. HOUSE BILL 113 "An Act extending lapse dates for certain prior year appropriations; making supplemental, capital, and special appropriations; and providing for an effective date." Co-Chair Hanley briefed the Committee on the work draft for HB 113. [Copy on file]. Representative Mulder MOVED that work draft #0-GH0053\E, Cramer, 3/17/97, be the version before the Committee. There being NO OBJECTION, it was adopted. Co-Chair Hanley provided an overview of SB 83/HB 113, FY97 Supplemental Appropriation spread sheet. [Copy on file]. DEPARTMENT OF ADMINISTRATION Section 1(a) The proposed leasing and facilities cost appropriation would be the same amount proposed in the Governor's FY98 budget 1 request and would bring the supplemental to the FY98 requested. Section 1(b) The Office of Public Advocacy operating costs request for $210.5 thousand dollars was funded at the number recommended by the House Subcommittee which included partial funding to the FY98 budget. Section 1(c) Funds to cover the Public Defender's request for operating costs would be brought up to the FY98 House Subcommittee amended recommendation and would be fully funded at the Governor's requested amount. Section 1(d) The EPORS new retirees funding request in the amount of $65.6 thousand dollars was funded at the Governor's requested level. Section 1(e) The leasing for ABBA, Inc. versus the State (Vintage Park settled payment) request in the amount of $243.3 thousand dollars and would be funded at the Governor's request. Section 1(f) The House Subcommittee accepted the Department of Environmental Conservation (DEC) laboratory request for leasing of claims in the amount of $104.0 thousand dollars, the same requested by the Governor. DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT Sections 2 (a)(b) These sections address the Alaska Science and Technology Foundation request for transfer funding from the Alaska endowment earnings reserve to the AST Fund for the Kodiak launch complex under AS 37.17.090(k)(l) and the Alaska Aerospace Development Corporation capital project to the Alaska Aerospace Development Corporation for the Kodiak launch complex. Co-Chair Hanley noted that funding would include a $5 million dollar transfer in (a) as recommended by the Governor. Section 3 2 The Executive Administration and Development for the Commissioner's Office in order to implement a coordinated response to the Southeast Alaska pulp mill closure requested $60 thousand dollars, which would be funded at the Governor's recommended level. DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS Section 4(a) The proposed legislation recommends that the Rural Energy Program-Energy Operations/PCE for power cost equalization and rural electric capitalization be funded at the Governor's recommended level of $1.5 million dollars. Section 4(b) The Rural Energy Program-Energy Operations/PCE for power cost equalization amendment, stipulates that once General Fund money is placed in the PCE fund, the above allocation would then be removed. Section 4(c) The amended HB 113 recommends that the Child Assistance/Head Start, RPL 21-7--165, one time federal receipts of partners for quality care and education project, requested amount of $50 thousand dollars be funded as proposed by the Governor. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Section 5 He continued, the Disaster Relief Fund requests for General Fund appropriations in the amount of $415.0 thousand dollars to capitalize the fund. Co-Chair Hanley pointed out that the House Subcommittee had not accepted the Governor's recommendation, because $185 thousand dollars had been an incumbrance from FY98. DEPARTMENT OF EDUCATION Sections 6 (a)(b)(c)(d) The allocation recommended for Teaching and Learning Support/Special and Supplemental Services request for RPL 05-7-0626 would address the new and carry forward funds for Title I and Migrant Education programs with recommended funding in the amount of $3.75 million dollars. The legislation would allocate funding for the Vocational 3 Rehabilitation/Client Services RPL 05-7-0680, which addresses new and carry forward funding for client service programs in the amount of $600 thousand dollars and would be the same as recommended by the Governor. The Vocational Rehabilitation/Administration RPL 05-7-0681 funding would address the new and carry forward funding for administration and oversight of direct services in the amount of $150 thousand dollars as requested by the Governor. The House Subcommittee recommended funding for the Teaching & Learning Support RPL 05-7-0700 which would address carry forward spending for the School to Work Program in the amount of $1.80 million dollars; the same as that requested by the Governor. Sections 6 (d)((e) Co-Chair Hanley continued, these sections address the Alaska State Library/Library Operating and the Mt. Edgecumbe Boarding School request and would provide funds at the Governor's recommended level. DEPARTMENT OF CORRECTIONS Section 7(a) This section speaks to the Fairbanks Correctional Center request for the boiler replacement system in the amount of $632 thousand dollars and would be the same as that proposed by the Governor. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS Section 7(b) This request would address the Disaster Planning and Control, Capital project request for radio equipment in the amount of $100 thousand dollars; the same as that requested by the Governor. DEPARTMENT OF NATURAL RESOURCES Section 7(c) The Parks Management request for capital project emergency repairs to Perseverance Trail proposed funding has been reduced from the requested $200 thousand dollars to $120 thousand dollars. He stated that allocation should cover the costs for blasting. 4 DEPARTMENT OF FISH AND GAME Section 8 The Wildlife Conservation, RPL 11-700234, request would address the new and carry forward federal funding for projects proposed in the amount of $430 thousand dollars, as proposed by the Governor. DEPARTMENT OF HEALTH AND SOCIAL SERVICES Sections 9 (a)(b)(c)(d)(e) The Adult Public Assistance, Medical Assistance/Indian Health Services, Family and Youth Services/Foster Care, Family and Youth Services/McLaughlin Youth Center and the State Health Services will all receive requested funding at the Governor's proposed level. DEPARTMENT OF LAW Sections 10 (a)(b) Co-Chair Hanley commented that these sections had been included in the bill and addressed ratification of past practices where there was dispute over illegal encumbrances. He added, legal service operations would also be included in that section. DEPARTMENT OF MILITARY & VETERANS AFFAIRS Section 11(a) Co-Chair Hanley addressed disaster planning and control for the emergency alert system extending the lapse date to June 30, 1998. The request would not include funding for travel or personal services. Sections 11 (b)(c) These two sections would provide the Governor's level of proposed funding for Disaster Planning and Control payment of insurance premiums. DEPARTMENT OF ADMINISTRATION DEPARTMENT OF CORRECTIONS DEPARTMENT OF FISH AND GAME DEPARTMENT OF HEALTH AND SOCIAL SERVICES DEPARTMENT OF LAW DEPARTMENT OF PUBLIC SAFETY DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES 5 Sections 12 Co-Chair Hanley pointed out that Section #12 addressed concerns associated with miscellaneous claims for stale date warrants and had been included at the Governor's request level. DEPARTMENT OF NATURAL RESOURCES Section 13(a) The legislation recommends fire suppression funding associated with fixed costs and fire suppression activities from January-June, 1997, with proposed funding in the amount of $3.78 million dollars, the Governor's requested amount. DEPARTMENT OF NATURAL RESOURCES Sections 13 (b)(c) The requested funding would be for the Resource Development/Land Development for refunds owed by the veterans' land discount program and proposed in the amount of $280 thousand dollars. He added that the amount necessary had been split from that requested for research and would be in the amount of $20 thousand dollars. DEPARTMENT OF PUBLIC SAFETY Section 14(a) Co-Chair Hanley explained that the requested amount had been included to cover costs associated with the Village Public Safety Officer contracts and was the same as recommended by the Governor. Section 14(b) He commented that the Council on Domestic Violence and Sexual Assault request was funded at the Governor's recommended level. DEPARTMENT OF ADMINISTRATION DEPARTMENT OF LAW DEPARTMENT OF HEALTH AND SOCIAL SERVICES DEPARTMENT OF NATURAL RESOURCES DEPARTMENT OF MILITARY VETERANS AFFAIRS Section 15 Co-Chair Hanley commented that Section #15 would cover expenditures, the same as the Governor's requested. 6 DEPARTMENT OF REVENUE Section 16(a) The Treasury Management component requested investment management fees for the CBRF in the amount of $25 thousand dollars, which would be $6 thousand dollars less than that proposed by the Governor. Section 16(b) The request would cover cost associated with the Permanent Fund Dividend (PFD) payment for dividends in the amount of $3.35 million dollars. Co-Chair Hanley added that the House recommendation would extended the lapse date to June 30, 1998. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Section 17(a) This component would address the Alaska Marine Highway stabilization fund and would cover the increased fuel costs request, although, the Department's request had been reduced to $130 thousand dollars. Section 17(b) This section would apply to the request from the Office of the Commissioner for a Copper River consent decree, funded at the $444.5 thousand dollar recommendation of the Governor. ALASKA COURT SYSTEM Sections 18 (a)(b) Section 18(a) was funded at the amount requested by the Trial Courts for $32.2 thousand dollars. Section 18(b) was funded to the Commission on Judicial Conduct for increased operating costs and mandatory salary increases. That funding was allocated at a greater amount then requested. Co-Chair Hanley explained that when the salary increases were funded in last year's Special Session, money had not been included for the judicial conduct group's request of $7.4 thousand dollars. DEPARTMENTS AND SECTIONS NOT FUNDED: DEPARTMENT OF CORRECTIONS (58) 7 No House Subcommittee proposed funding allocation to the Office of the Commissioner, Capital project, to provide for an additional women's correctional facilities to satisfy fines from the FY95 to FY97 levied by the Superior Court in the Cleary case. DEPARTMENT OF HEALTH AND SOCIAL SERVICES (59)(60) No House Subcommittee proposed funding allocation for Family and Youth Services/Central capital project for improved security at McLaughlin Youth Center, Fairbanks Youth Facility and Community Health/EMS Services capital projects for emergency communications equipment. DEPARTMENT OF LAW (61)(62)(63) No additional House Subcommittee funding allocation proposed for the Department's Civil Section costs associated with advocating the State's legal position on the sovereign powers for Native tribal governments in the State. Also, no funding guaranteed for the Civil Division/Medicaid Provider Fraud which would add GF/Match, deleting GF/Program receipts for the Medicaid Provider Fraud. DEPARTMENT OF REVENUE (64) Funding deleted to the treasury management component for the purpose of Section (a), to pay management fees, the intent being for FY98 to appropriate General Funds for new asset allocation. DEPARTMENT OF FISH AND GAME (65) No House Subcommittee funding granted to the Commercial Fish Management and Development/Fisheries Management which would extend the lapse date to June 30, 1997. DEPARTMENT OF HEALTH AND SOCIAL SERVICES (66) The House Subcommittee declined funding for the institution and administration of the Alaska Psychiatric Institute (PSI). DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT (67) The House Subcommittee declined requested funding for Measurement Standards to allow the Chief of Weights and Measures to attend the National Conference of Weights and Measurements meeting. DEPARTMENT OF PUBLIC SAFETY (68) 8 The House Subcommittee declined requested funding for the Training Academy, capital project request for construction of a women's area and shooting range. CONCLUSION: Co-Chair Hanley affirmed that the total proposed general fund spending for the supplemental budget request would be $12.46 million dollars which includes the $1 million dollar appropriation previously approved for the Venetie case. Co-Chair Therriault asked the total amount of RPL's passed by the Legislative Budget and Audit Committee (LBA) which will be added to the proposed amount. Co-Chair Hanley recommended that information be submitted. In last year's spending plan, the total amount was $17 million dollars. There had been an estimated RPL amount of $2.3 million dollars. He determined that the Committee had allocated approximately $1 million over last year's proposed spending plan. Representative J. Davies referenced Section 63, questioning the fund switch to that area. Co-Chair Hanley offered to provide that information to Committee members at a later date. HB 113 was HELD in Committee for further discussion. ADJOURNMENT The meeting adjourned at 2:45 P.M. 9