MINUTES SENATE FINANCE COMMITTEE March 1, 2000 9:22 AM TAPES SFC-00 # 42, Side A CALL TO ORDER Co-Chair Sean Parnell convened the meeting at approximately 9:22 AM PRESENT Co-Chair Sean Parnell, Senator Al Adams, Senator Lyda Green, Senator Pete Kelly, Senator Loren Leman, Senator Gary Wilken, Co-Chair Torgerson. Also Attending: LAUREE HOUGONIN, Director, Alaska Network on Domestic Violence and Sexual Assault; JACK FARGNOLI, Office of Management and Budget. Attending via Teleconference: Pat Pitney, Director of Budget Development and Institutional Planning, University of Alaska, Fairbanks, (did not testify.) SUMMARY INFORMATION SB 281-OPERATING BUDGET MISSIONS AND MEASURES The Committee heard testimony from the Department of Public Safety and the Office of Management and Budget. The bill was held in Committee. SENATE BILL NO. 281 "An Act relating to missions and measures to be applied to certain expenditures by the executive branch of state government and the University of Alaska from the state operating budget for the fiscal year ending June 30, 2001; and providing for an effective date." CO-CHAIR PARNELL gave a short synopsis of SB 281, which is the Operating Budget Missions and Measures. He noted that the Executive Budget Act sets forth the requirements for the governor and the legislature with respect to budgeting. He gave an historical overview of how Missions and Measures came to be and added that when considering budgets, the legislature not only considers numbers but also the corresponding results of created programs and their inherent goals. He then read actual language from the Act previously referenced. He pointed out that state government should account for how money is spent and as a result, missions and measures for each department can be established. He added that these initiatives are then carried forward as they are developed. He outlined that through this present legislation, it will be the first time that Alaska will have a comprehensive set of missions and measures passed into law. He continued that in the past many departments have put measures into their transaction detail books, which did not get much attention. He noted that these present efforts have been met with greater policy discussions between the legislature and administration as to appropriation goals. He then gave an example of these same mission and measure efforts in the State of Texas. He added that in Alaska, a governor has yet to accept budget numbers, along with missions and measures in one bill for constitutional reasons. Co-Chair Parnell stated that his vision is that by the end of the summer, the legislature will formulate two bills combined into one book so that when the public asks for a synopsis of the state budget, this volume can be distributed to show where funds are being spent. He summarized that this process will help make the departments more accountable for spending and the legislature more responsible for the appropriation process. LAUREE HOUGONIN, Director, Alaska Network on Domestic Violence and Sexual Assault testified. She noted that her remarks would be specific to Section 123, page 38, of this bill, more specifically in regards to the Council on Sexual Assault, within the Department of Public Safety. She noted that this Council plans and coordinates the state's response to domestic violence and sexual assault. She added that the Council provides for Grant opportunities to local communities for response to these problems. She pointed out that the Network has a concern about clarity regarding proposed measures that apply to the Council's responsibilities or the Victim Services and Batterer's Intervention Program or both. She urged a review of this Section to consider narrowing its scope. Ms. Hougonin noted that if the legislature looks to reduce these crimes statewide, an umbrella approach might be in order to pull the Department of Law, Public Safety, Department of Education and Early Development, etceteras, under the auspices of rectifying domestic violence. She added that it was necessary to agree on how the measures will be used to determine the mission fulfillment, along with a clear definition and understanding of the terms contained within the measures. Co-Chair Parnell asked what terms were not clear. Ms. Hougonin stated that the language on page 38, line 24, "the amount spent for and the percentage reduction in domestic violence and sexual assault compared to the amount spent for that purpose last year;" was unclear as to what programs or departments this section spoke to. She wondered how they would prove a negative in terms of whether or not these crimes occurred and what the department does in response. She added that her organization would be happy to suggest alternative language for clarification purposes. She noted that the Network would be interested in measures that provide evaluation of programs already in progress, while speaking to legislative budget purposes as well. She suggested a means of evaluating those areas in the state, which do not have access to domestic violence services. Co-Chair Parnell noted that these missions and measures were crafted by both the House and Senate Budget Subcommittees. He asked Ms. Houginine to provide the Committee with written missions that the Network would like to see incorporated into this legislation, along with three or four corresponding measures. JACK FARGNOLI, Office of Management and Budget, Office of the Governor, testified that the Administration is aiming to reach the goals of a missions and measures program for the State of Alaska. He added that the Governor strongly supports the concept of performance accountability and the process commenced to make a shared foundation for budget negotiations. He stated that there were two areas of concern, which he would address, the first of these being, the question of public process. He noted that there is a good deal of public process related to the development of annual budgets by state agencies and departments. He added that to the degree, which this idea could be incorporated more into the deliberation during the legislature's [indiscernible] performance measures, giving the public more input would be most beneficial. He added that the Administration could work more directly with the public as well, when formulating missions and measures, while changing them as is necessary through the legislative process. Mr. Fargnoli continued that he hoped both the Administration and the Legislature would not give "short shrift" to important Alaska constitutional aspects of missions and mandates of the departments that might be unintentionally omitted or not fully emphasized to the degree that they should. Co-Chair Parnell asked if Mr. Fargnoli had any constitutional or statutory specifics that he would like to address related to SB 281. Mr. Fargnoli responded that he did not. He continued that there are departments and programs that incorporate strong advisory boards that are affected by budgetary issues. He felt as though these entities needed more inclusion in the missions and measures process. He stated that with respect to mission statements for commissioner offices and administrative services functions, to the degree that the legislature and administration uses a generic, "one size fits all" approach to missions and measures, he felt as though they were loosing "the baby with the bath water." Co-Chair Parnell asked what amendments to SB 281 did the administration feel needed to be made, if any. Mr. Fargnoli responded that the administration's amendments dealt specifically to three different departments. He noted that these departments were Community and Economic Development, Council on Domestic Violence and the Department of Transportation and Public Facilities. Co-Chair Parnell referred to Mr. Fargnoli's concerns regarding public process language. He asked specifically if proposed language would center on having more public testimony such as in place for all legislative bills, or would it be instituted up front with a town meeting format in order that specific language and goals could be established at the outset of SB 281. Mr. Fargnoli responded that the compass of the conversation, centered on establishing missions and measures, had been smaller than it should be. He thought this was a reflection of the administration and legislature attempting different approaches to the establishment of the missions and measures program. Senator Leman wondered about the amendment he had offered regarding the Mental Health Trust Authority and asked if Mr. Fargnoli thought it made sense. Mr. Fargnoli responded that he not seen it before, but on its face it seemed to make sense. Co-Chair Parnell asked that the Committee members or any department with amendments for consideration, should submit them by Friday of this week. Senator Leman asked about a possible omnibus-editing job for all the sections of SB 281. He noted an inconsistency of language and terms used throughout this bill. Co-Chair Parnell stated that he would be happy to work with Senator Leman on this problem. He felt as though the reference to "numbers of this and the number of that," was flawed. He thought that in some cases this was appropriate, but in others it only serves as a mere inventory without giving an idea of what this number might mean in comparison to a benchmark. ADJOURNED Senator Parnell adjourned the meeting at 9:59 AM. SFC-00 (5) 03/01/00