HOUSE FINANCE COMMITTEE April 8, 1999 8:45 A.M. TAPE HFC 99 - 68, Side 1. TAPE HFC 99 - 68, Side 2. CALL TO ORDER Co-Chair Mulder called the House Finance Committee meeting to order at 8:45 A.M. PRESENT Co-Chair Mulder Representative Foster Co-Chair Therriault Representative Grussendorf Vice Chair Bunde Representative Kohring Representative Austerman Representative Moses Representative J. Davies Representative Williams Representative G. Davis ALSO PRESENT Kenneth Bischoff, Director, Division of Administrative Services, Department of Public Safety; Beth Hagevig, Staff, Senator Gary Wilken; Nancy Slagle, Director, Division of Administrative Services, Department of Transportation and Public Facilities. SUMMARY HB 50 An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17c, Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date. HB 50 was heard and HELD in Committee for further consideration. Amendments for the following budgets were discussed: Department of Public Safety Department of Transportation and Public Facilities HB 51 An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date. HB 51 was heard and HELD in Committee for further consideration. HOUSE BILL NO. 50 "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; making appropriations under art. IX, sec. 17c, Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." HOUSE BILL NO. 51 "An Act making appropriations for the operating and capital expenses of the state's integrated comprehensive mental health program; and providing for an effective date." DEPARTMENT OF PUBLIC SAFETY Representative G. Davis MOVED to adopt amendment PS#1. [Copy on File]. Representative J. Davies OBJECTED for the purpose of discussion. BETH HAGEVIG, STAFF, SENATOR GARY WILKEN, explained that the amendment would replace $15 thousand general fund dollars with $15 thousand PFD Fund dollars to the component for Council on Domestic Violence and Sexual Assault. Additionally, it add $15 thousand general fund grant dollars to the Alaska Fish and Wildlife Safeguard component. The new component would provide for a grant to Alaska Fish and Wildlife Safeguard to be used reward payments for information leading to the investigation and prosecution of violations of State fish and game laws. Co-Chair Mulder commented that the Committee had over- expended Alaska Permanent Fund Dividend funds at this time, however, the intent is to reduce the overall obligation with taking dividends for incarcerated individuals. In response to Representative J. Davies, Co-Chair Mulder explained that the Department calculates how many permanent funds would be received from those incarcerated, and with the number of people in prison, there should be more money than anticipated. Representative Austerman questioned if the Department was still implementing poster program. Ms. Hagevig replied that they no longer did because of an audit performed a few years ago. Representative Bunde commented that from legislation which he had sponsored, would allow "Safeguard" to receive the proceeds from the bison auction. Representative G. Davis pointed out that as the Department is alerted of violations, prosecution and fines should be collected. In response to Representative Bunde, Ms. Hagevig explained that Safeguard is addressing that and that last year was the first year for the bison raffle. The raffle raised less than $10 thousand dollars. Representative Bunde reiterated that over 10 thousand people a year apply for a drawing permit for bison. Representative Grussendorf agreed those funds could help the State protect our natural resources. Representative J. Davies WITHDREW his OBJECTION. There being NO further OBJECTION, PS #1 was adopted. Representative Grussendorf MOVED to adopt amendment PS #2. [Copy on File]. Representative G. Davis OBJECTED. Representative Grussendorf explained that the amendment would add $90.6 thousand general fund dollars to the Alaska Public Safety Information network component. That position would coordinate and consolidate accumulative information regarding this concern. Representative G. Davis responded that a $1 million dollar increment had been authorized for that Department and that the component received $76 thousand dollars additional federal funds this year. KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF PUBLIC SAFETY, noted that service would be provided at a much reduced level. The Subcommittee discussed if the federal increment could help address the general fund increment. The federal increment comes from the Federal Crime Identification Technology Act, which has primarily been focused on programs across the nation for development of a DNA data basis. Additionally, those funds were to be used to capture fingerprints. The $76 thousand dollars has been expended on fingerprint capturing equipment. The State of Alaska has not had a dedicated planning function since the 1970's during the law enforcement assistance administration days. Mr. Bischoff concluded that at present time, there is no individual responsible for coordination of the system information. Representative J. Davies questioned if some of the federal money would be shifted to help fund that position. Mr. Bischoff replied that if the position was not approved, the Department would continue to implement those portions of identification with that federal money. Co-Chair Mulder pointed out that any addition would relate to the Department of Corrections for integration of information. He encouraged the Department to work with the Administration. The more information available, the better the safety concerns will be addressed. Representative G. Davis added that the Council on Domestic Violence has received over $5 thousand additional dollars for tracking predators. A roll call vote was taken on the motion. IN FAVOR: J. Davies, Grussendorf, Moses OPPOSED: Austerman, Bunde, G. Davis, Foster, Kohring, Williams, Mulder, Therriault The MOTION FAILED (3-8). Representative Grussendorf MOVED to adopt amendment PS #3. [Copy on File]. Representative G. Davis OBJECTED. Representative Grussendorf explained that the amendment would restore $242.5 thousand general fund dollars to provide for a 5% pay increase for Village Public Safety Officers (VPSO) as proposed in the Governor's FY00 operating budget. Following an explanation provided by Co-Chair Mulder regarding pending legislation, Representative Grussendorf WITHDREW the MOTION to adopt the amendment. DEPARTMENT OF LAW There were no amendments for the Department of Law. DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES Representative J. Davies MOVED to adopt amendment DOT #1. [Copy on File]. Representative Williams OBJECTED. Representative J. Davies explained that the amendment would decrease $220 thousand general fund dollars from the Northern Region facilities component and add $150 thousand general fund dollars to the Central Region highways and aviation component and $70 thousand general fund dollars to the Northern Region highways and aviation component. Co-Chair Mulder reminded Committee members that the issue had been addressed during the supplemental budget with an appropriation of $235 thousand dollars for the contract with Valdez. A long-term solution is being attempted. Representative Williams pointed out that the Subcommittee did talk with the Department and understood that they were trying to negotiate the agreement with the City of Valdez. The Department of Administration is participating in the negotiations also. NANCY SLAGLE, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES, advised that the Department would like to come to an agreement for dividing the costs to maintain the facility. This was not a facility which the Department had wanted to maintain. Given the responsibility, the Department still has not been part of the continuing negotiations with the City of Valdez. Co-Chair Mulder stated that the City of Valdez is pursuing funding options to more adequately address the concern. Representative J. Davies emphasized that the issue has been before the City of Valdez for many years. He questioned how many years would it take. A roll call vote was taken on the motion. IN FAVOR: Bunde, J. Davies, Grussendorf, Moses OPPOSED: G. Davis, Foster, Kohring, Williams, Austerman, Therriault, Mulder The MOTION FAILED (3-8). Representative Williams MOVED to adopt amendment DOT #2. [Copy on File]. He explained that the Department had requested the amendment which would allow for them to delete $2.1 thousand general fund dollars from Statewide Planning, delete $9.6 general fund dollars from the component Statewide design and engineering services, delete $4.8 general fund dollars from Central Region construction and CIP support, delete $11.1 general fund dollars from measurement standards and commercial vehicle enforcement and add $27.6 thousand general fund dollars to the Commissioner's Office. The amendment would transfer an unallocated reduction within the Department to all appropriations not otherwise affected by specific general fund reductions. There being NO OBJECTION, it was adopted. Representative Grussendorf MOVED to adopt amendment DOT #3. [Copy on File]. Representative Williams OBJECTED. Representative Grussendorf explained that the amendment would provide a position and $100 thousand dollars Capital Improvement Project (CIP) receipt authority (personal services) within the Department for a coordinator to oversee the implementation of the Southeast Alaska Transportation Plan. The position would work with Southeast communities, regional transportation authorities such as the Inter-island Ferry Authority (IFA) and transportation staff, to facilitate development of separate projects required to implement the plan. Funding will be provided from SE Plan projects appropriated within the capital budget. Ms. Slagle noted that the Department has been criticized in the past by the Legislature for not moving quickly enough in dealing with the Southeast Transportation Plan. The Department needs to have someone to oversee the large program. Co-Chair Mulder inquired if it would be possible for the Department to assume coordination for the plan internally. Ms. Slagle responded that could not be addressed adequately from within the Department. In response to Co-Chair Mulder, Ms. Slagle explained that the project could take up to ten years to implement. Co-Chair Mulder questioned how federal funds would be used if the position was not funded. Ms. Slagle replied that funding for the position would be taken from a portion of the projects which the Department is supporting in Southeast. It would not impact other regions. Co-Chair Mulder voiced concern that more personal service employees would mean less funding to implement the plan. Representative Williams commented that the Department had requested the position, however, the Subcommittee did not fund it. He asked if the position would be funded federally. Ms. Slagle replied it would. Representative Austerman voiced concern with the task of road grating. He pointed out that there are 86 new hires in that Department. (Tape Change HFC 99 - 68, Side 2). Representative J. Davies emphasized that this request is for federal receipt authority. With a project this size, there should be a manager. The State is required to provide for the maintenance of road care. The Department has not been provided with adequate funding to address statewide concerns. The Governor has provided a plan which would shift the funding source through increased fuel tax and dedication of registration money. Representative G. Davis noted that the Department of Transportation and Public Facilities federal dollars provide two options to the State: * Hire engineers to manage projects; or * Contract out the work. Co-Chair Mulder reiterated that this would not be a new position. Representative Williams WITHDREW his OBJECTION. Representative Bunde OBJECTED. Representative G. Davis spoke in support of the amendment which would provide major savings to the State in the long run". A roll call vote was taken on the motion. IN FAVOR: J. Davies, G. Davis, Grussendorf, Moses, Williams, Mulder OPPOSED: Foster, Kohring, Austerman, Bunde, Therriault The MOTION PASSED (6-5). HB 50 and HB 51 were HELD in Committee for further consideration. ADJOURNMENT The meeting adjourned at 9:40 A.M. H.F.C. 7 4/08/99 a.m.