GENERAL SUBJECT(S): #SB 83 SB 83 SUPPLEMENTAL/CAPITAL APPROPRIATIONS SB 72 CONSTITUTIONAL BUDGET RESERVE FUND APPROPRIATION The following overview was taken in log note format. Tapes and handouts will be on file with the Senate Finance Committee through the 21st Legislative Session, contact 465-2618. After the 21st Legislative session they will be available through the Legislative Library at 465-3808. Time Meeting Convened: 9:07 A.M. Tape(s): SFC-99 #48, Side A (000 - 585) PRESENT: X Senator Parnell X Senator Adams X Senator Torgerson X Senator P. Kelly Senator Donley X Senator Green Senator Leman Senator Phillips X Senator Wilken ALSO PRESENT: DAN SPENCER, Chief Budget Analyst, Office of Management and Budget; SHARON BARTON, Director, Division of Administrative Services, Department of Administration; NANCY SLAGLE, Director, Division of Administrative Services, Department of Transportation and Public Facilities; KATHRYN DAUGHHETEE, Director, Division of Administrative Services, Department of Law; BARBARA BRINK, Director, Public Defender Agency, Department of Administration; David Blaisdell, Staff to Senator Parnell; aides to committee members and other members of the Legislature. VIA TELECONFERENCE: Andree McCleod, George Hieruntmus, Kadeen Jackson, Michelle Cassano, Melba Cooke and Joan Fisher from Anchorage; David Leone from Fairbanks LOG SPEAKER DISCUSSION 000 Co-chair Parnell Called the meeting to order at approximately 9:07 a.m. He said the committee would hear any public testimony regarding SB 83 at this time. Testimony was limited to three minutes. He identified Anchorage and Fairbanks as being on line via teleconference. 040 Andree McLeod via teleconference from Anchorage Explained the "Grants Management Information" spreadsheet as faxed this date by the Anchorage LIO. With reference to page three of the faxed documents she felt the money for the Department of Health and Social Services was too much and not being properly accounted for. Co-chair Parnell Monies not being tracked by Department of Health and Social Services Andree McLeod Referred to monies CSED sent, but what about the portion not accounted for? George Hieruntmus via teleconference from Anchorage Asked catastrophic monies be fully funded. This supplemental request is very important. Co-chair Parnell Advised that CAMA has been fully funded at the request of Administration. House Finance work draft version is also fully funded. Kadeen Jackson via teleconference from Anchorage Happy also to hear that CAMA is fully funded. Supported the comments made by the prior testifier, Mr. Hieruntmus. Asked committee to give full support. Co-chair Parnell Happy to announce that subsidized adoption has also been funded. Michelle Cassano via teleconference from Anchorage American Diabetes Association. People with diabetes are in life-threatening situation. They not only need their medication supplied, but also medical services to monitor their situation. David Leone via teleconference from Fairbanks Director, Resource Center, Fairbanks, supported subsidized adoption, healthy families and community health grants and asked full supplementation of these programs. Barbara Bennett via teleconference from Anchorage State Soup Kitchen in Anchorage. Supported healthy families. Melba Cooke via teleconference from Anchorage Supported funding for medication and HIV. Joan Fisher via teleconference from Anchorage Supported funding for medication and health services. Co-chair Parnell Closed the public testimony for SB 83. He noted a CS work draft and spreadsheet should be before all committee members for their perusal. (brief at ease at 9:23 a.m.) Co-chair Parnell Called the committee back to order David Blaisdell Finance staff to Co-chair Parnell was invited to join the committee. He briefly compared the new CS to the original bill. Section 2: transfer from GF to Federal Funds. Senator Adams With reference to the disaster declared in Southeast Alaska, he asked if the money has been spent, how do we recover it? Co-chair Parnell Asked if his question was in reference to the Southeast Alaska disaster of October? Senator Adams Yes. Co-chair Parnell Explained there were potential Federal funds available along with other sources to cover work already done. David Blaisdell Continued explanation. Money for trails was not funded. Co-chair Parnell Department of Natural Resources suggested that trails not be funded at this time. Senator Kelly (Inaudible apparent temporary disconnection at the table.) Senator Torgerson Explained David Blaisdell Section 5: Department of Corrections, possible transportation savings. Section 22: Public Defender not funded. Senator Adams No balance if Office of the Public Advocate is funded and not Public Defender. Co-chair Parnell This was at the recommendation of Senator Wilken as the subcommittee co-chair. Senator Wilken Looked at the budget. Agency must prioritize their caseload in order to get through this year and then take up matter next year. Senator Adams David Blaisdell Continued. Pioneer Homes, Fairbanks boiler replacement. Funding for this was transferred to AHFC. Increased funding for certified nursing aides. Decrement will come from last year's general fund monies. Senator Adams New boiler needed for Fairbanks. Asked explanation of $500,000. David Blaisdell Section 9: Debt Service Senator Green Returned to Pioneer Homes. How will money be classified for nursing aides? Co-chair Parnell Explained that the funds would be subject to Legislative appropriation. David Blaisdell Debt Service, deleted proposal by the Executive Branch. Concerned about presentation and requested Co-chair Parnell provide explanation of this section. Co-chair Parnell Explained that in last year's bill the general fund monies were going into debt service. However, the debt has not gone down. Wanted to be consistent with the way Legislative Finance viewed this matter. David Blaisdell Section 10 (e) (m) (n): Department of Health and Social Services. CAMA had requested an increase. Subsidized adoption would also be funded. This process transferred funds from the Federal government, which in turn would be turned over to the Department of Community and Regional Affairs, zeroing out the increase. Co-chair Parnell Further explained the transfer of Federal monies to the Department of Community and Regional Affairs. The department would then transfer these funds back to help fund these programs. David Blaisdell Section 12: increased reduction Section 14 (d) transfer of equal amounts from the Alaska State Troopers to Detach. The Department of Transportation and Public Facilities funding of the Harborview facility maintenance was deleted. Senator Adams What will happen to this facility? Senator Torgerson Requested this be removed from the Department of Transportation and Public Facility's budget until Harborview can be taken over by the City of Valdez. Co-Chair Sean Parnell Requested Dan Spencer join the committee and provide comment on any of preceeding matters. Dan Spencer Chief Budget Analyst, Office of Management and Budget was invited to join the committee. As discussed with staff to Co- chair Parnell's office earlier, he did not bring many here to comment. He thanked the Co-chair for the opportunity to review and comment on the proposed CS. He said there were some concerns. Asked for more time to review the CS. Believed attorney general has alleviated most of their concerns. He advised they would have more comment prepared for tomorrow's meeting. It was further advised the committee that there was someone available from the Office of the Public Defender to testify. Barbara Brink Director, Public Defender's Office, Department of Administration was invited to join the committee. Concerned that the Public Defender Agency would not be funded this year. Pointed out why the program that should have been stabilized was not. "Every year we try to estimate the case load. This year we had a five-percent increase. Our numbers indicate that will continue to rise." She specified that they did not get funding for rural positions last year. Due to case-loads, she explained they could not leave the vacant positions open. Referred to comments of the Chief Justice on Friday that the most expensive cases were those involving felonies and child protection. The Court system appointed the Public Defender to the cases they handle. They have no control over their workload or priorities. A case has motions that must be filed. They have investigation that must be done. DNA, blood, and fingerprints testing must be done. Unfortunately, the numbers keep going up. Must have enough attorneys to go to Court to make all appearances. Invited all legislators to visit their local Public Defender office in their district to see how difficult things really were. They get furniture donated from the Court System and Alaska State Troopers. Must continue to respond to the appointments as made by the Court. Dan Spencer Advised he would testify tomorrow on any further matter. Co-chair Parnell Requested written response to the spread- sheet attached to the proposed CS. Dan Spencer Confirmed. Co-chair Parnell Amendments clarified. Must be sponsored by a member of the Senate Finance Committee. However, he left the matter up to the individual member whether he or she wished to sponsor an amendment as proposed by another legislator. Requested two copies be turned into his office by tomorrow no later than 11:00 a.m. Intend to deliver notebooks sometime tomorrow afternoon or evening. Will not take up CBR bill, SB 72. Senator Wilken Western Alaska Fisheries Disaster. He referred to where the funds were coming from and how they were obligated. Hoped the committee could get an answer for this question as originally posed by Senator Kelly. Co-chair Parnell Brought up question as to why they are even in supplemental. He did not believe last year that these fell within the statute. The bounds of the statute regarding supplementals have been stretched considerably. Will see that there is legislation this year to tighten this up. Senator Kelly Heard a comment was made a few days ago when they spoke that because of lower oil prices; anything dealing with the oil industry could be qualified under disaster relief. The statute should be looked at and tightened down. Senator Adams Does not mind the committee looking at different disasters. Never protested the amounts individuals sought as long as they were qualified. People in rural Alaska are not trying to gouge anyone. Would be happy to assist in working out procedures to seek relief for different types of disasters. Co-chair Parnell Co-chair Torgerson will chair calendar of bills tomorrow. Senator Adams With regards to SB 72, is it anticipated the bill will be taken up? Co-chair Parnell Did not anticipate taking up SB 72 today or tomorrow. Adjourned meeting at approximately 9:58 A.M., tape number 48, Side A at log number 585. SENATE FINANCE COMMITTEE LOGNOTES 03/08/99 Page 6