MINUTES SENATE FINANCE COMMITTEE 20 April 1998 9:10 a.m. TAPES SFC-98, #130, Side A CALL TO ORDER Senator Drue Pearce, Co-chair, convened the meeting at approximately 9:10 a.m. PRESENT In addition to Co-chair Pearce, Senators Sharp, Phillips, Donley, Torgerson, Parnell and Adams were present when the meeting was convened. Also Attending: DWIGHT PERKINS, Legislative Liaison, Office of the Commissioner, Department of Labor; REBECCA GAMEZ, Director, Division of Employment Security, Department of Labor; REMOND HENDERSON, Director, Division of Administrative Services, Department of Community and Regional Affairs; JANET CLARKE, Director, Division of Administrative Services, Department of Health and Social Services; KAREN REHFELD, Director, Education Support Services, Department of Education; CHRIS CHRISTENSEN, Staff Counsel, Alaska Court System; MIKE GREANY, Director, Division of Legislative Finance; Susan Taylor, fiscal analyst, Division of Legislative Finance; Ginger Patton, fiscal analyst, Division of Legislative Finance; aides to committee members and other members of the Legislature. Via Teleconference: WILLIAM MAILER, Program Coordinator, Child Care Program, Division of Community and Rural Development, Department of Community and Regional Affairs, Anchorage. SUMMARY INFORMATION SENATE BILL NO. 229 "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." SENATE BILL NO. 230 "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." Co-chair Pearce convened the meeting noting they would begin full committee closeouts on the operating budget for both mental health programs and departmental closeouts for FY '99. She said all information regarding missions and measures had been loaded on the WEB. The numbers from today will also be loaded in that go along with each of the measures. She said it was her intent to get through four subcommittees; Child Care, Welfare Reform, Economic Development and Human Resources. Senator Adams asked about amendments and Co-chair Pearce advised committee members that all amendments must be in her office by noon on Thursday of this week. The committee will commence work on amendments Friday morning. She further noted there would be Statewide teleconference available Thursday on the budget and the capital projects. The morning will be reserved for those wishing to testify in Juneau and in the afternoon for teleconference around the State. Senator Adams asked what the public should look at as far as the capital budget? Co-chair Pearce announced they would take up the entire list the Governor has submitted, including the capital projects included in the reappropriations bill. Senator Phillips requested that the Co-chair take up Welfare Reform first. He noted they accepted the Governor's proposed numbers, minus Child Care. Senator Adams MOVED Welfare Reform subcommittee report be adopted by the committee. WITHOUT OBJECTION it was ADOPTED into SB 229 and SB 230. Co-chair Pearce explained she chaired the Child Care subcommittee. By a vote of 2 yeas (Pearce, Leman) and 1 nay (Ellis) the attached budget proposal was adopted. They recommended in child care benefits, except internal transfers within the child care development fund and $6.9 million in total fund increases. In Department of Community and Regional Affairs, Child Assistance/ Child Care they adopted technical adjustments and an $85,100 agency transfer. In Daycare Assistance they accepted the technical adjustments and also the $4 million plus interagency transfer from DHSS. They also replaced $4 million in general funds with $4 million Federal funds. They further accepted a grant for Head Start in the amount of $50,000. Senator Phillips MOVED Child Care subcommittee report be adopted by the committee. Senator Adams OBJECTED. He said the minority had concerns regarding the numbers in the Daycare Assistance Program and probably they would submit an amendment on Thursday. He noted a request by Head Start for $1 million and asked if there was someone present from the department who could respond to his question. REMOND HENDERSON, Director, Division of Administrative Services, Department of Community and Regional Affairs was invited to join the committee. He advised WILLIAM MAILER, Program Coordinator, Child Care Program, Division of Community and Rural Development, Department of Community and Regional Affairs was available via teleconference from Anchorage. Mr. Mailer explained that the $1 million request for Head Start was to help increase the program to twenty-five percent. They are currently serving approximately twenty-two percent of the individuals that need Head Start. They had also asked for funding to help expand the Daycare Assistance Program as part of the Governor's Smart Start package. It would address the individuals that are on waiting lists as well as those not signed up but are known to exist. Most individuals do not sign up because they know funds are not available. Senator Adams WITHDREW his objection. Co-chair Pearce said she understood Senator Adams' concern and advised him that in this budget they were spending more money on Daycare than they did last year. They were also capturing an additional $6 million in Federal funds with the transfer of ATAP general funds match over to Child Care. She noted for the record that she was very sensitive to the need for child care. The total being spent Statewide at this time was $39 million. She further explained that there is a bill in the House sponsored by Representative Mark Hanley that would combine the Child Care programs that are now in HESS and C&RA. If the bill passes they will leave them as they are in the budget. Senator Phillips said that if the bill came to the Senate he would recommend that CR&A be the lead agency for this, move one person from HESS to CR&A and he felt then the customer base would be happier having it that way. Therefore, Co-chair Pearce said WITHOUT OBJECTION the Child Care subcommittee report was ADOPTED. Senator Donley MOVED the Economic Development subcommittee report. Senator Adams OBJECTED. Senator Donley explained briefly that the most controversial change was in the Division of Trade and Tourism. That regarded the Juneau mine, which was not opened. He further advised they took the Governor's proposed numbers. Senator Adams WITHDREW his objection. WITHOUT OBJECTION the Economic Development subcommittee report was ADOPTED. Senator Torgerson MOVED the Human Resources subcommittee report. He explained the funding source change and also some changes in the cut sheets. The changes in the cut sheets would be amended at this time. He said they were denying the increment for pre-school certification, denying the increment for Statewide reading initiative, denying an increment for sports in school and denying an increment for comprehensive assessment program. Senator Adams OBJECTED. He said the objection was to the denial of the access increment to the education special projects. Senator Torgerson said he would take another look at the matter. Senator Adams said he appreciated that and WITHDREW his objection. WITHOUT OBJECTION the Human Resources subcommittee report was ADOPTED. Co-chair Pearce called a short at ease at 9:40 a.m. She reconvened the committee at 9:50 a.m. Co-chair Pearce advised the schedule for the afternoon at 4:30 p.m. She noted the afternoon bill hearing schedule would commence at 5:30 p.m. ADJOURNMENT Co-chair Pearce recessed the meeting at approximately 9:52 a.m. SFC-98 -1- 4/20/98