MINUTES  SENATE FINANCE COMMITTEE  March 29, 2000  9:11 AM  TAPES SFC-00 # 68, Side A and Side B 69, Side A and Side B CALL TO ORDER Co-Chair Sean Parnell convened the meeting at approximately 9:11 AM PRESENT Co-Chair John Torgerson, Co-Chair Sean Parnell, Senator Al Adams, Senator Lyda Green, Senator Pete Kelly, Senator Loren Leman, Senator Randy Phillips and Senator Gary Wilken were present when the meeting started. Senator Donley arrived later. Also Attending: ANNALEE MCCONNELL, Director, Office of Management and Budget; DAVID TEAL, Director, Division of Legislative Finance; GARY POWELL, Director, State Fire Marshal, Division of Fire Prevention, Department of Public Safety; JEFF BUSH, Deputy Commissioner, Department of Community and Economic Development; ALISON ELGEE, Deputy Commissioner, Department of Administration SUMMARY INFORMATION HB 312-APPROPRIATIONS: OPERATING BUDGET The Committee adopted a committee substitute as a workdraft and considered amendments. HB 313-APPROPRIATIONS: MENTAL HEALTH The Committee adopted a committee substitute as a workdraft and considered amendments. COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 312(FIN) am(brf sup maj fld)(efd fld) "An Act making and amending appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds." Co-Chair Torgerson moved to adopt CS HB 312, 1-LS1304\I as a workdraft. Without objection the committee substitute was ADOPTED. Co-Chair Parnell parlayed general instruction to the Division of Legislative Finance to make technical corrections to amendments to the committee substitute as necessary. Co-Chair Parnell pointed out that wherever a new Budget Request Unit (BRU) is noted in an amendment, it is considered a separate appropriation unless otherwise designated. ALASKA COURT SYSTEM There were no amendments submitted for the Alaska Court System. DEPARTMENT OF ENVIRONMENTAL CONSERVATION There were no amendments submitted for the Department of Environmental Conservation. DEPARTMENT OF FISH AND GAME F&G #1: This amendment increases the amount of other funds appropriated to the Crystal Lake Hatchery from $414,000 to $606,700. The language is located on page 11, line 30 of the committee substitute. Co-Chair Torgerson moved for adoption and explained that this amendment gives the department the authority to receive and expend an additional $192,700 in interagency receipts from Pacific Salmon Treaty funds to the Crystal Lake Hatchery. There was no objection and the amendment was ADOPTED. DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT L&WD #1: This amendment reduces the amount of other funds allocated to Employment Security, State Training Employment Program (STEP) from $73,088,300 to $68,534,500. The language is located on page 18, line 28 of the committee substitute. Co-Chair Torgerson moved for adoption. Senator Adams and Senator Green objected. Co-Chair Torgerson explained that his intent was to fund the STEP program through a fiscal note to SB 289. Senator Green spoke to her objections saying that SB 289 supplants the vocational training efforts underway by a different group than provided for in the bill. She was not convinced this reappropriation was the best method and asked if the present funding mechanism could be maintained until Co-Chair Torgerson's bill passes, suggesting that an amendment to the operating budget could be considered afterwards. She relayed she had heard compelling information that the existing program is operating adequately. Senator Adams agreed with Senator Green about the affects on the STEP program if SB 289 does not pass. Co-Chair Parnell asked if the funds were included in the House of Representatives version of the operating budget. Co-Chair Torgerson noted the funds were included in the House version and that the matter would be addressed in conference committee if the Senate made a change. A roll call was taken on the motion. IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Phillips, Senator Leman, Co-Chair Torgerson and Co-Chair Parnell OPPOSED: Senator Adams and Senator Green ABSENT: Senator Donley The motion PASSED (6-2-1) The amendment was ADOPTED. L&WD #2: This amendment adds $48,000 general funds for Labor Standards and Safety BRU, Wage and Hour Administration component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams spoke to the motion saying the amendment restores funding for one Wage and Hour investigator. He warned that the elimination of this position would result in increased violations of the Davis/Bacon Act. Senator Adams talked about "carpet bagger" contractors who come into the state and that no proper investigation is made as to whether Alaskan employees would be paid for their work. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Co-Chair Torgerson and Co- Chair Parnell ABSENT: Senator Donley The motion FAILED (1-7-1) The amendment FAILED to be adopted. DEPARTMENT OF LAW There were no amendments submitted for the Department of Law until later in the meeting. DEPARTMENT OF MILITARY AND VETERANS AFFAIRS M&VA #1: This amendment appropriates $303,900 other funds, of which, $76,000 is Investment Loss Trust funds (ILTF) and $227,900 is federal funds, to Air Guard Facilities. This language would be inserted on page 21 line 24 of the committee substitute. Co-Chair Torgerson moved for adoption. Co-Chair Parnell spoke to the amendment, noting that this does not utilize general funds. He explained that the appropriation would pay for the operation, maintenance and use of facilities currently under construction at Kulis. He stated that if this small amount were not paid future federal funding would be in jeopardy because the state would be in violation of the Master Cooperative Agreement between the state and federal governments. Senator Phillips stated that during the September 1999 statewide advisory vote on whether to spend a portion of the permanent fund to support state government, there were a lot of complaints about overall government spending. He asked if this amount increases the amount of federal funding received. Co-Chair Parnell answered that this appropriation does not increase federal funds received in the current year. However if this amendment were funded, he stressed, the state would continue to get federal funds to operate the facility. Senator Adams referred to the Administration's plan to utilize the ILTF to pay for salary increases for state employees and asked if general funds were considered for funding this item. Co-Chair Parnell replied he had considered using general funds, but that he intends to close the state's fiscal gap, which could not be done by spending general fund money. A roll call was taken on the motion. IN FAVOR: Senator Leman, Senator Adams, Senator Wilken, Senator P. Kelly, Senator Green, Co-Chair Torgerson and Co- Chair Parnell OPPOSED: Senator Phillips ABSENT: Senator Donley The motion PASSED (7-1-1) The amendment was ADOPTED. M&VA #2: This amendment allocates $52,000 Statutory Designated Program Receipts (SDPR) for Alaska National Guard BRU, Army Guard Facilities Maintenance. Senator Adams asked about another proposed amendment, which he would like considered along with this amendment. Co-Chair Parnell replied that the other amendment in question is titled LANG #9 and would be brought up later. He explained that he grouped several amendments addressing unallocated reductions together. Senator Adams expressed that LANG #9 provides the necessary funds for many of the amendments he sponsored. Senator Adams moved for adoption of M&VA #2. Co-Chair Torgerson objected for explanation. Senator Adams stated that Alaska has one of the best US Army National Guard facility maintenance components that also assist school districts. He explained that the Copper River School District has requested the department help in the development of a preventative maintenance program for the school system. He detailed that this allocation would pay for labor, materials, travel, and per diem expenses. Co-Chair Parnell asked if this item was included in the House of Representative's version of the operating budget. Senator Adams did not think so. Senator Phillips expressed that the matter only came to his attention a few days earlier and that the subcommittee hadn't addressed it. Co-Chair Parnell asked if Senator Phillips supported the amendment. Senator Phillips was indifferent. Co-Chair Torgerson understood an agreement was already reached between the Copper River School District and the department. He removed his objection. Senator Green asked if this budget increment required legislative approval. She thought that perhaps the school districts could contract the services to other entities. It was established that because statutory designated program receipts were involved, legislative approval was necessary. Co-Chair Parnell described that the legislature has no involvement with how school districts spend money, but pointed out that this amendment gives the department the authority to expend the funds received from the district. There was no objection and the amendment was ADOPTED. DEPARTMENT OF NATURAL RESOURCES DNR #1: This amendment allocates $150,000 general funds to the Minerals, Land and Water BRU, Title Acquisition and Defense, and reduces the amount allocated to the Land Sales and Municipal Entitlements component by $150,000 general fund/SDPR. The amendment also includes the following intent language. "It is the intent of the Senate Finance Committee that proceeds from Land Disposals, including principal and interest from existing and future disposals be used by the department to administer the Land Disposal Program and be classified as Designated program Receipts." Senator Wilken told the Committee that he was waiting to have a question answered before he decided whether to offer this amendment or not. This amendment was HELD at this time and was ultimately NOT OFFERED. DNR #2: This amendment adds $150,000 general funds to the Minerals, Land and Water BRU, Title Acquisition and Defense component. Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams warned that a budget reduction in this area would slow economic development. He surmised that the amount of land received from the federal government would be reduced by half. Senator Wilken relayed that the Bureau of Land Management has completed much of the work using Native allotments and could now focus on land conveyance to the State Of Alaska. Senator Wilken supported the amendment noting that DNR #1 addresses the same issue. However, he said there was a question about the funding source. He urged a "no" vote on DNR #2 at this time saying he would offer DNR #1 if a funding source were located. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Green, Senator Phillips, Senator Leman, Senator Wilken, Co-Chair Torgerson and Co-Chair Parnell ABSENT: Senator Donley and Senator P. Kelly The motion FAILED (1-6-2) The amendment FAILED to be adopted. DNR #3: This amendment adds $150,000 general funds for Minerals, Land and Water BRU, Land Sales and Municipal Entitlements. Senator Adams AMENDED the amendment to change the funding source to SDPR and moved for adoption. Co-Chair Torgerson objected. Senator Adams asked the question of what is the least expensive way to get land into the ownership of individuals. He answered that this amendment would be much cheaper than the method proposed by Senator Taylor in SB 6. Senator Adams estimated that this amendment would generate approximately $1 million in revenue from land sales that could then be used to fund further offerings. Co-Chair Torgerson noted that a bill sponsored by the governor proposes funding the entire expense of the Division of Land with statutory designated receipts. He understood that bill has broad-based support and would pass. He maintained his objection to the amendment. Senator Adams appreciated the intent to change the land disposal process in the future but noted that the bill's passage, as well as an adequate attached fiscal note, was not guaranteed. He mentioned the rumor that session would end by April 23 and that the legislative leadership could make compromises to make that happen and subsequently, much of the pending legislation would not pass. Co-Chair Torgerson was unsure whether the legislature had authority to implement this amendment without a change to the designated receipt statutes. Co-Chair Torgerson expressed his intent to work through the bill if it were referred to the Committee. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Phillips, Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Co-Chair Torgerson and Co- Chair Parnell ABSENT: Senator Donley The motion FAILED (1-7-1) The amended amendment FAILED to be adopted. DNR #4: This amendment adds $50,000 general funds for the Forest Management and Development BRU, Forest Management and Development component. Senator Adams moved for adoption. Co-Chair Parnell and Senator Phillips objected. Senator Adams spoke to the increased timber sales in the Kenai Peninsula area. He warned of the loss of several small sales if this funding was not provided. He also thought there would be losses to small businesses. Senator P. Kelly asked if this item was included in the House of Representatives' version of the operating budget. Senator Adams said it was not. Senator Green suggested other receipts could be added to fund these sales. Senator Adams commented that, if this amendment failed, he hoped the Committee could reconsider allocating funds to provide jobs and economic development. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Co-Chair Torgerson and Co- Chair Parnell ABSENT: Senator Donley The motion FAILED (1-7-1) The amendment FAILED to be adopted. DEPARTMENT OF REVENUE There were no amendments for the Department of Revenue. AT EASE 9:38 AM / 9:44 AM DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES DOT #1: This amendment increases the allocation of Marine Highway funds from $43,436,400 to $77,132,400 for the Marine Highway System. This language would be inserted on page 29, line 18 of the committee substitute. Co-Chair Torgerson moved for adoption and explained that all the Department of Transportation and Public Facilities amendments he sponsored deal with the increased fuel costs and that this amendment is specific to the Marine Highway System. The amendment was ADOPTED without objection. DOT #2: This amendment increases the appropriation for Central Region Highways and Aviation from $3,218,700 to $3,283,700. This increase comes from the new Public Building Fund capitalized in the fiscal note to HB 112. Co-Chair Torgerson moved for adoption. Senator Adams objected. Co-Chair Torgerson spoke to motion saying that rather then simply using general funds for this increase, he proposed reappropriating funds from the newly created facilities fund. This fund, he explained would be the result of recent legislation that charges each department with the cost of facility depreciation and utilizes the funds to offset the relative costs. He admitted the intent of this fund is to pay for deferred maintenance costs. However, he stressed that paying for fuel and to keep buildings warm has a higher priority then deferred maintenance at this time. Senator Adams supported DOT #2, #3 and #4, but had concerns with the funding source. He pointed out that these amendments use funds derived from legislation that has not even passed the legislature yet. He asserted this method of "creative financing" is like "comparing raisins to turnips" with regard to comparison of funding sources. Therefore, he stated he could not support the amendments until the funding source was established. ANNALEE MCCONNEL, Director, Office of Management and Budget, Office of the Governor, testified that this was one area where higher oil prices have a negative impact on the state. She had no disagreement with the expenditure of additional funds for the increased fuel costs. She did have concerns with using the facilities fund because of the efforts made to address the prevention of future deferred maintenance problems. She hoped the general funds could be maintained in the building fund rather than spent on the fuel costs. A roll call was taken on the motion. IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Leman, Co-Chair Torgerson and Co- Chair Parnell OPPOSED: Senator Adams ABSENT: Senator Donley The motion PASSED (7-1-1) The amendment was ADOPTED. DOT #3: This amendment increases the appropriation for Southeast Region Highways and Aviation from $251,900 to $298,400 using Public Building Funds to cover the $46,500 difference. This language would be inserted on page 28, line 28 of the committee substitute. Co-Chair Torgerson moved for adoption and explained this amendment also addresses the anticipated higher fuel prices. Senator Adams objected to the motion because of the funding source used, but emphasized he agrees with increased funding for fuel costs. A roll call was taken on the motion. IN FAVOR: Senator P. Kelly, Senator Green, Senator Phillips, Senator Leman, Senator Wilken, Co-Chair Torgerson and Co-Chair Parnell OPPOSED: Senator Adams ABSENT: Senator Donley The motion PASSED (7-1-1) The amendment was ADOPTED. DOT #4: This amendment increases the allocation to the Northern Region Highways and Aviation from $1,348,900 to $1,685,500 using Public Building Funds to cover the $336,600 difference. This language would be inserted on page 28, line 14 of the committee substitute. Co-Chair Torgerson moved for adoption, saying this amendment also provides additional funding for fuel costs. Senator Adams objected and asked if the sponsor of the amendment planned to change the fiscal note on the building fund legislation to reflect the reallocation of these funds. Co-Chair Torgerson stated it was his understanding a fiscal note change was not necessary because it was drafted in anticipation of such a reallocation. A roll call was taken on the motion. IN FAVOR: Senator Green, Senator Phillips, Senator Leman, Senator Wilken, Senator P. Kelly, Co-Chair Torgerson and Co-Chair Parnell OPPOSED: Senator Adams ABSENT: Senator Donley The motion PASSED (7-1-1) The amendment was ADOPTED. DOT #5: This amendment increases the appropriation for the Statewide Facility Maintenance and Operations from $2,578,400 to $3,014,100 using Public Building Funds to cover the $436,000 difference. Co-Chair Torgerson moved for adoption and stated this amendment provides additional funding for fuel costs. He noted these funds would be spent directly on the buildings that contribute to the building fund. Senator Adams objected again saying that he supported the intent of increased funding for the increased fuel costs, but that the building fund is intended for deferred maintenance. A roll call was taken on the motion. IN FAVOR: Senator Phillips, Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Co-Chair Torgerson and Co- Chair Parnell OPPOSED: Senator Adams ABSENT: Senator Donley The motion PASSED (7-1-1) The amendment was ADOPTED. DOT #6: This amendment increases the general fund appropriation to the Northern Region Highways and Aviation from $35,947,000 to $35,978,300 for plowing open certain roads during the Spring of 2001. The amount of $10,500 is to plow Boundary Spur, $5,800 for US Creek, Fairbanks Creek, Tofty and Eureka in the Fairbanks area, and $15,000 for the Copper River Road. Co-Chair Torgerson moved and explained the intent of the subcommittee to reopen several roads in the spring, prior to snowmelt. This amendment, he said would fund three overlooked roads and utilizes general funds. Co-Chair Parnell objected. Senator Leman asked how much time was gained by plowing roads rather than waiting until the snow melted. Co-Chair Torgerson replied the roads would be open approximately one month earlier. A roll call was taken on the motion. IN FAVOR: Senator Adams and Co-Chair Torgerson OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips and Co-Chair Parnell ABSENT: Senator Donley The motion FAILED (2-6-1) The amendment FAILED to be adopted. Co-Chair Parnell expressed that he was willing to rescind the Committee's action if another funding source were identified. Senator P. Kelly stated that he would like the amendment re-addressed at a later time. LANGUAGE SECTION LANG #6: This amendment makes the following changes to the committee substitute. Agency: Department of Fish and Game BRU: Administration and Support Component: Boards of Fisheries and Game Page 12, following line 10 Insert: "It is the intent of the Legislature that the Board of Fisheries reduces its overall number of meetings days or reduces its number of meetings in FY01 from five meetings to four meetings." Agency: Department of Health and Social Services BRU: Medicaid Services Component: Medicaid Services Page 13, following line 25 Insert: "It is the intent of the legislature that the Division of Medical Assistance will develop a program of intergovernmental transfers, at 90% return, with public hospitals or nursing homes, which will allow the Medicaid program to capture statutory designated program receipts of $10,000,000 to offset general fund expenditures for fiscal year 2001." A more recent estimate of available statutory designated program receipts is $18 million. The Committee may wish to consider amending the intent language to reflect the new estimate. Agency: Alaska Court System BRU: Alaska Court System Component: Administration and Support Page 30, following line 33 Insert: "It is the intent of the legislature that the Alaska Court System examine the feasibility of moving its information technology network operations from the Department of Administrations Wide Area Network (WAN) to a network provided by commercial carriers. The Court System shall use money appropriated to pay network charges to obtain services from the most cost beneficial network service provider, which may be a network secured for the balance of state government by the Department of Administration." Agency: University of Alaska BRU: University of Alaska Component: Budget Reductions/Additions - Systemwide Add $400,000 GF Chapter 84, SLA 1999, Sec. 36 (HB 50) appropriated 400.0 GF that was identified as a One-time Item and was incorrectly deleted by the Division of Legislative Finance. The subcommittee did not intend to make the reduction. Co-Chair Torgerson moved for adoption. AT EASE 9:56 AM / 9:57 AM Co-Chair Parnell explained this amendment adds intent language to reflect the intent of the subcommittees. He stated the Division of Legislative Finance pointed out the need for the language changes after reviewing the committee substitute. There was no objection and the amendment was ADOPTED. LANG #7: This amendment makes the following changes to the committee substitute. Parts (a) and (b) of this amendment are fund source changes in response to recent information received from the Division of Retirement and Benefits. The Division of Legislative Finance created new fund source codes to identify duplicated expenditures, including those for SBS, Deferred Compensation and Health Insurance. In fact, the funds in question should not be counted as duplicated. The amendments restore the original fund source codes and have no impact on the budget. (a) Agency: Department of Administration BRU: Centralized Administrative Services Component: Retirement and Benefits Delete $100,000 Supplemental Benefits Sys IA Add 100,000 Benefit Systems Receipts Delete 100,000 Deferred Comp IA Add 100,000 Benefit Systems Receipts (b) Agency: Department of Administration BRU: Centralized Administrative Services Component: Group Health Insurance Delete $100,000 Health IA Add 100,000 Benefit Systems Receipts (c) Agency: Department of Community and Economic Development BRU: Alaska Seafood Marketing Institute Component: Alaska Seafood Marketing Institute Delete $700,000 General Funds The subcommittee for the Department of Community and Economic Development intended the Alaska Seafood Marketing Institute (ASMI) FY 01 GF budget to be $6,105,400, including carryforward from FY 00. Reports published on the Division of Legislative Finance web site showed $700,000 GF carryforward in the language section in addition to $6,105, 400 appropriated in Section 1, for a total of $6,805,400 GF. Based on information provided by the department, the carryforward language (Section 8) is essential and the preferred method to achieve the subcommittee's recommendation is to reduce the amount in Section 1. (d) Agency: Department of Public Safety BRU: Fish and Wildlife Protection Component: Enforcement/Investigative Services Delete $141,500 Fish and Game Fund Add 141,500 Fish and Game Duplicated Funds Correctly indicates that expenditures of Fish and Game receipts in the Department of Public Safety are duplicated expenditures. Co-Chair Torgerson moved for adoption. DAVID TEAL, Director, Division of Legislative Finance explained the first two items are changes worked out with the Office of Management and Budget to eliminate duplicated fund sources. He stated the existing language was a mistake made while the bill was in the House of Representatives and should be reversed. He assured there was no duplication of funds. Co-Chair Parnell clarified that this amendment results in no change in spending. Mr. Teal affirmed. Senator Adams requested an explanation of Item C of the amendment. Mr. Teal replied this was an oversight of the subcommittee that did not account the carry-forward, which increased the amount of funding. He stressed that this amendment represents the subcommittee's intentions. Without objection the amendment was ADOPTED. AT EASE 10:07 AM / 10:30 AM Co-Chair Parnell announced the meeting would recess to the call of the chair. AT EASE 10:31 AM / 2:51 PM DEPARTMENT OF CORRECTIONS COR #1: This amendment inserts $80,700 general funds for the Administration and Operations BRU, Community Jails component. Senator Adams moved for adopted. Co-Chair Parnell objected. Senator Adams spoke to his motion, stating that it is a cost savings measure. He explained it is less expensive to house certain offenders in community jails rather than transporting them to state correctional facilities. He stated that the funding would be used for infrastructure maintenance. He noted that the funding had remained the same over the last several years. Co-Chair Parnell noted the subcommittee had distributed reductions of 1.7 percent across 13 prison and jail components; giving each superintendent the latitude and incentive to eliminate waste and make cost saving changes. Tape: SFC - 00 #68, Side B 2:53 PM Co-Chair Parnell continued that the subcommittee noted that over half of the department's budget is directed toward correctional center operations. Senator Adams argued that the across the board reduction was irresponsible because new anti-crime legislation is continually adopted but the legislature does not provide the funding to implement the new statutes. Co-Chair Parnell countered that the prison population on average was currently declining and is below maximum capacity. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Donley, Senator Leman, Senator P. Kelly, Senator Green, Senator Phillips, Co-Chair Torgerson and Co- Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. COR #2: This amendment inserts additional general funds for the Administration and Operations BRU, $41,900 for the Northern Region Probation component, $80,000 for the Southcentral Region Probation component and $16,400 for the Southeast Region Probation component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams explained this amendment relates to adult parole officers, who monitor, survey and provide overall supervision of offenders. He pointed out that virtually every offender has supervision following jail time. He stressed that caseloads have increased on a statewide basis. Senator Adams stated that this amendment would fund two and one-half additional positions in urban areas, lowering the overall caseload to 70 to 100 per position. Senator Adams spoke to SB 281, the budget missions and measures legislation passed by the Senate, and the importance of funding the missions defined in the bill. Co-Chair Parnell agreed and relayed the commissioner's concerns voiced in the subcommittee meeting about overcoming the Cleary vs. State Of Alaska ruling. However, he assured that the current funding level does not jeopardize public safety. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. COR #3: This amendment inserts additional general funds for the Administration and Operations BRU to the following components. Anvil Mountain $ 66,600 Combined Highland Mountain 124,700 Cook Inlet 138,800 Fairbanks 116,500 Ketchikan 43,800 Lemon Creek 100,500 Mat-Su 43,700 Palmer 141,200 Sixth Avenue 60,900 Spring Creek 231,000 Wildwood 138,100 Yukon-Kuskokwim 66,000 Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams again spoke to the department-wide $1.7 million reduction saying this amendment restores the cuts made to each facility. He talked about the need for correction officers. He felt it was wrong to remove that amount of personal services funding from the department. He stressed that without adequate funds, the department would lose between 50 and 70 correctional officer positions. Co-Chair Parnell wanted the public to be aware of the difference between positions and the actual number of employees, noting that many of the positions in question are currently vacant. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. COR #4: This amendment inserts $100,000 general funds to the Community Residential Centers BRU, CRC Offender Supervision component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams explained this amendment relates to the community residential centers (CRC) and would fund the annualized cost of new "beds" added to the program in FY 00. Senator Adams believed that without these funds, the department would be unable to maintain the approximate 1600 new beds. He shared that it has been found that this program is a cost-effective alternative to incarceration. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. COR #5: This amendment inserts $82,900 Mental Health Trust Settlement Income (MHTAAR) funds to the Administration and Operations BRU, Inmate Programs component. This appropriation is to fund the Men's Substance Abuse Pilot Program. Senator Adams moved for adoption. Co-Chair Torgerson asked if the Mental Health Trust Authority (MHTA) agreed to this. Senator Adams answered that the Trust approved of the amendment. There was no objection and the amendment was ADOPTED. COR #6: This amendment inserts $70,000 SDPR to the Administrative and Operations BRU, Institutions Director's Office component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams stated that this amendment funds contracts provided by the Education Service District #101 within the State of Washington. He explained that the district's program would provide distant education services to juveniles who are incarcerated as adults in Alaska. He noted the funds are received from outside the state. AT EASE 3:04 PM / 3:04 PM Senator Adams offered a motion to withdraw his motion to adopt the amendment. There was no objection, the motion to adopt was WITHDRAWN and the amendment was HELD. COR #7: This amendment inserts $450,000 SDPR to the Administration and Operations BRU, Electronic Monitoring component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams emphasized that the participants pay the full cost of this program and that this appropriation would allow the department to expand the program. He stressed the cost effectiveness of the program. Co-Chair Parnell maintained his objection citing subcommittee discussion that supported electronic monitoring only as the last step of returning to society after incarceration, but not in lieu of incarceration. He pointed out that the issue is also addressed in COR #8 and COR #9. Senator Adams offered a motion to withdraw his motion to adopt the amendment. There was no objection, the motion to adopt was WITHDRAWN and the amendment was HELD. COR #8: This amendment changes the funding source from general funds to SDPR receipts for the following BRUs and components. BRU: Administration and Operations Component: Institution Director's Office $ 225,000 Combined Hiland MT Correctional Center 290,200 Cook Inlet Correctional Center 249,100 Fairbanks Correctional Center 21,000 Ketchikan Correctional Center 20,500 Lemon Creek Correctional Center 101,900 Mat-Su Correctional Center 59,100 Palmer Correctional Center 156,100 Sixth Avenue Correctional Center 883,900 Wildwood Correctional Center 15,600 Electronic Monitoring  645,600 Subtotal 2,668,000 BRU: Community Corrections Component: Community Residential Centers  811,000 Total 3,479,000 Co-Chair Parnell stated that he intended to hold this amendment to work further on the utilization of SDPR. He commented that some local governments currently contract with the state for the cost of incarcerated offenders of municipal laws. Payment of those contracts, he shared, qualifies as SDPRs. This amendment was HELD. COR #9: This amendment replaces general funds with SDPR for the following components of the Administration and Operations BRU and the Community Corrections BRU, in the following amounts. BRU: Administration and Operations Component: Institution Director's Office $225,000 Combined Hiland MT Correctional Center 290,200 Cook Inlet Correctional Center 249,100 Fairbanks Correctional Center 21,000 Ketchikan Correctional Center 20,500 Lemon Creek Correctional Center 101,900 Mat-Su Correctional Center 59,100 Palmer Correctional Center 156,100 Sixth Avenue Correctional Center 883,900 Wildwood Correctional Center 15,600 Electronic Monitoring 645,600 Community Jails Restore: 80,700GF Electronic Monitoring 645,600 Subtotal 2,668,000 BRU: Community Corrections Component: Community Residential Centers 811,000 Total 3,479,000 This amendment also inserts general funds to the Department of Community and Economic Development, Municipal Revenue Sharing BRU as follows. State Revenue Sharing $1,534,000 Municipal Assistance  1,866,000 Total 3,400,000 Language accompanying the amendment reads as follows. Switch funding for existing correctional programs from G.F. to Statutory Designated Program Receipts as requested in the Governor's FY 2001 Budget Request and Fund Municipal Assistance and Revenue Sharing at Fiscal Year 00 Level. Restore $80.7 G.F. cut to Community Jails Senator Adams explained that this amendment, while similar to COR #8, goes farther in that it uses SDPR and places it in Municipal Revenue Sharing. This amendment was not offered at this meeting due to its similarity to COR #8. An amended version, COR #9A was offered in the next meeting. AT EASE 3:08 PM / 3:45 PM DEPARTMENT OF PUBLIC SAFETY DPS #1: This amendment makes the following changes to pages 8 and 24 of the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 8, line 26: Delete: Early Development 65,920,300 8,396,600 57,523,700 Insert: Early Development 66,455,300 8,396,600 58,058,700 Page 8, line 28: Delete: Child Care 29,148,600 Assistance & Licensing Insert: Child Care 29,683,600 Assistance & Licensing Page 24, lines 31 and 32 Delete: Council on Domestic 8,957,800 2,819,100 6,138,700 Violence and Sexual Assault Insert: Council on Domestic 8,957,800 2,819,100 6,138,700 Violence and Sexual Assault This amendment is intended to change the funding source for the Council on Domestic Violence and Sexual Assault from Temporary Aide for Needy Families (TANF) funds to Permanent Fund Dividend (PFD) Felons Funds. Co-Chair Torgerson moved for adoption. Co-Chair Parnell told the Committee this amendment moves the federal TANF funds from the Council into Early Development and Childcare. Co-Chair Torgerson moved to amend Amendment #1 by replacing the language with the language of DPS #1A as follows. Appropriation General Other Allocation Items Funds Funds Page 8, line 26: Delete: Early Development 66,455,300 8,396,600 58,058,700 Insert: Early Development 65,920,300 8,396,600 57,523,700 Page 8, line 28: Delete: Child Care 29,683,600 Assistance & Licensing Insert: Child Care 29,148,600 Assistance & Licensing Page 24, lines 31 and 32 Delete: Council on Domestic 8,957,800 2,819,100 6,138,700 Violence and Sexual Assault Insert: Council on Domestic 8,957,800 2,819,100 6,138,700 Violence and Sexual Assault This amendment to the amendment reflects the departments concerns that the 30 percent limit of TANF funds that can be used for Child Care will be exceeded upon passage of this amendment. Co-Chair Parnell explained that the department has some concerns that the 30 percent limit of TANF funds allowed for Child Care had already been reached. There was no objection and the amendment was AMENDED. The amended amendment was ADOPTED without objection. DPS #2: This amendment makes the following changes. Appropriation General Other Allocation Items Funds Funds Page 24, lines 31 and 32 Delete: Council on Domestic 8,957,800 2,819,100 6,138,700 Violence and Sexual Assault Insert: Council on Domestic 9,207,800 1,789,800 7,438,700 Violence and Sexual Assault This amendment will provide additional Permanent Fund Dividend (PFD) felons funds to the Council on Domestic Violence and Sexual Assault restoring $100,000 from FY 99 and provide an additional $250,000 for grants. This amendment was NOT OFFERED. DPS #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 24, lines 18-24: Delete: Alaska State 25,194,100 24,995,500 198,600 Trooper Detachments Payroll & Benefits Alaska State 8,142,600 7,866,300 276,300 Trooper Detachments Operations Insert: Alaska State 33,336,700 32,861,800 474,900 Trooper Detachments Senator Donley moved for adoption and explained this amendment consolidates two BRUs into one and incorporates payroll and benefits and trooper detachment operations. He said the intent is to give the Alaska State Troopers more flexibility to utilize funding. Senator Adams had no objection but questioned why the amendment did not also delete the Petersburg BRU to give more flexibility. Senator Donley responded that this amendment increases the funding level significantly from the previous year because it doesn't include the across the board reductions. In addition, he noted this appropriation provides enough money to fund one more statewide trooper position. There is also a separate BRU, he continued, for a Petersburg Detachment trooper, which was stated as the next highest priority in testimony presented to the subcommittee. Senator Phillips asked if this amendment had a net increase. Senator Donley confirmed that there is no net increase. Without objection, the amendment was ADOPTED. DPS #4: This amendment makes the following change to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 24, lines 4-6: Delete: Fire Prevention 2,391,000 1,788,600 602,400 Fire 1,567,700 Prevention Operations Fire 823,300 Service Training Insert: Fire Prevention 2,489,100 1,886,700 602,400 Fire 1,665,800 Prevention Operations Fire 823,300 Service Training This amendment was NOT OFFERED and replaced with DPS #9. [The following amendment was considered out of numeric order.] DPS #9: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 21, lines 4-7 Delete: Oil & Gas 5,080,500 3,603,500 1,477,000 Litigation & Legal Services Oil & Gas 4,784,800 Litigation Oil & Gas 295,700 Legal Services Insert Oil & Gas 7,982,400 3,505,400 1,477,000 Litigation & Legal Services Oil & Gas 4,686,700 Litigation Oil & Gas 295,700 Legal Services Page 24, lines 4-6 Delete: Fire Prevention 2,391,000 1,788,600 602,400 Fire 1,567,700 Prevention Operations Fire 823,300 Service Training Insert: Fire Prevention 2,489,100 1,886,700 602,400 Fire 1,665,800 Prevention Operations Fire 823,300 Service Training Provides $98,100 of funding to adopt the International Building Code. AT EASE 3:49 PM / 3:50 PM Senator Donley pointed out a requirement that the state must adopt conforming changes to its building code to meet the new international building code. He warned this could have a significant impact in the event of a major catastrophe. Senator Donley moved to adopt the amendment. Senator Adams objected. GARY POWELL, Director, State Fire Marshal, Division of Fire Prevention, Department of Public Safety, affirmed that if the state does not adopt the most current building code then the Federal Emergency Management Agency (FEMA) would only reimburse a portion of disaster recovery costs. Senator Donley noted this would be a one-time appropriation and was an increment over the previous year's spending. He thought the matter should be brought before the full Committee. He detailed the difference between this operating function compared to capital projects contained in the FY 01 Capital Budget. Senator Adams agreed this is an important issue but thought oil and gas litigation funds should not be used to fund this project. He spoke of the pending divestiture of ARCO assets between British Petroleum, Inc. and Phillips Petroleum, Inc. and the necessity of the state to be involved in the process to protect the state's interest. Co-Chair Parnell thought BP was reimbursing the governor's office for state's legal costs incurred as a result of the merger. Co-Chair Torgerson asked why it would cost so much to adopt these regulations. Mr. Powell replied that the issue was expansive and the last codes were adopted many years ago and were not published. Therefore, he projected that more extensive public notice and more interaction with building groups would be necessary. He stated that the department would hire a project coordinator to undertake the project. Co-Chair Torgerson wanted to know if this change in regulation would require legislation and also if building costs would rise. Mr. Powell responded that he predicted the new code would be "more friendly" to the industry. He referenced articles attesting that the industry expects the building costs would actually go down. He did not think new legislation would be necessary and that the process could be done through regulations. Senator Adams maintained his objection to the funding source. A roll call was taken on the motion. IN FAVOR: Senator Donley, Senator Leman, Senator Wilken, Senator Green, Co-Chair Torgerson and Co-Chair Parnell OPPOSED: Senator Phillips and Senator Adams ABSENT: Senator P. Kelly The motion PASSED (6-2-1) The amendment was ADOPTED. DPS #5: This amendment adds $600,000 general funds for the Village Public Safety Officer (VPSO) Program BRU, Contracts Component. Senator Adams moved for adoption. Co-Chair Torgerson objected. Senator Adams expressed that this amendment would fund a 15 percent increase for VPSO salary and benefits. He spoke to the problems with a high turnover and the need to adequately compensate these peace officers. He emphasized that these officers are paid so low that they are eligible for welfare programs. He stated that this amendment allows VPSO officers to be paid as much as school bus drivers. Co-Chair Parnell related that he and Senator Adams have had numerous discussions on the matter and both agreed VPSO officers should be paid more. However, he stressed, the state pays nonprofit organizations to administer this program and each of these organizations withhold a different amount of funds for overhead costs. He mentioned legislation offered the previous year that attempted to even out the allowable administrative costs under these contracts. Because that legislation had not yet passed and because the program operates from general funds, he said that he would oppose this amendment. Senator Adams agreed with Co-Chair Parnell's comments that the state should standardize overall costs between all the non-profit organizations. He stressed that this amendment, however, directs funds directly to the VPSOs with none allocated to administration costs. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken and Co-Chair Parnell ABSENT: Senator P. Kelly and Co-Chair Torgerson The motion FAILED (1-6-2) The amendment FAILED to be adopted. DPS #6: This amendment adds $100,000 Permanent Fund Dividend Funds (PFDF) for the Council on Domestic Violence and Sexual Assault. This amendment was NOT OFFERED based on action taken on DPS #2. DPS #7: This amendment appropriates additional general funds to the Division of Fish and Wildlife. The enforcement component receives $141,500 to offset a shortfall in fish and game fund receipts; the aircraft component receives $148,300 to fund mechanic and risk management costs; and the marine enforcement component receives $8,200 for risk management costs. Senator Adams proposed an amendment to the amendment that eliminates the aircraft and marine enforcement components and replaces the $70,500 general funds for enforcement with the same amount of fish and game receipt funds. This amendment was HELD, pending action on DPS #1, and ultimately was NOT OFFERED. DPS #8: This amendment makes the following changes to the committee substitute. Restore Department of Public Safety Budget Structure Appropriation General Other Allocation Items Funds Funds Page 24, lines 18-23 Delete: Alaska State Trooper 25,194,100 24,995,500 198,600 Detachments Payroll & Benefits Alaska State Trooper 8,142,600 7,866,300 276,300 Detachments Operations Alaska State Trooper 136,500 136,500 Detachments-Petersburg Insert: Alaska State Trooper 33,473,200 32,998,300 474,900 Detachments Page 25, line 12 Delete: Laboratory Services 2,347,100 2,203,800 143,300 Insert: Statewide Support/ 2,347,100 2,203,800 143,300 Laboratory Services Senator Adams moved for adoption. Senator Donley objected. Senator Adams stated that in action taken on DPS #2, two BRUs were merged when actually three should have been merged to include the Petersburg Detachment. He spoke to the problems with individualizing the State Troopers. He warned there would be a confusing budget structure. Senator Adams noted the second portion of the amendment addresses laboratory services saying the amendment funds the day to day operations. Senator Donley countered that the department has a great deal of flexibility. He stressed that the Petersburg component was new in the previous year's budget. He also pointed out that the budget increases funding for the crime lab and provides the full amount requested by the governor. He stated he supported the budget the way it existed. Senator Adams supported the increased funding provided for the laboratory, but stressed that a separate BRU was needed. He continued that the addition of a trooper stationed in Petersburg was appreciated but that it did not have to be singled out in its own BRU. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator Wilken, Senator Green, Senator Phillips, Senator P. Kelly and Co-Chair Parnell ABSENT: Senator P. Kelly and Co-Chair Torgerson The motion FAILED (1-6-2) The amendment FAILED to be adopted. DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT CED #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, line 18 Delete: Community Assistance 14,718,000 9,795,300 4,922,700 & Economic Development Insert: Community Assistance 10,068,000 5,145,350 4,922,650 & Economic Development Page 4, lines 24 and 25 Delete: Qualified 4,650,000 Trade Association Contract Insert: Qualified Trade 4,650,000 4,600,000 50,000 Association Qualified 4,650,000 Trade Association Contract Senator Green moved for adoption on behalf of Co-Chair Parnell. Senator Adams objected. Co-Chair Parnell explained the amendment creates a new appropriation for the Qualified Trade Association contracting rather than including it in the same BRU with the division. He wanted to set the program up for self- sufficiency. He noted there was no reduction to the current funding amount. Senator Adams referred to legislation sponsored by Senator Mackie the previous year, that stipulates all tourism companies, whether small or large, would be equally treated. Senator Adams understood that a certain percentage of expenditures would be spent on tourism planning and development programs. He noted that the amount of funding increased from $4.2 million to $4.6 million. He understood that the directive was to facilitate tourism development in concert with small communities. He asked if this amendment affected the legislation adopted the previous year. Co-Chair Parnell responded that the amount of funding does not change with this amendment. He referred to the fiscal note accompanying the aforementioned bill, saying that the funding in this budget reflects the amount approved in the fiscal note. He suggested that if Senator Adams did not think the department would carry out the intent of the legislation, he should offer an amendment to give a directive. However, Co-Chair Parnell thought this was a separate issue than the BRU component. Senator Adams asked if the co-chair would be willing to accept an amendment to add $433,000 in the Community and Business Development component to address the tourism planning and development program. Co-Chair Parnell directed the discussion to the amendment before the Committee and said he would consider a separate amendment if Senator Adams chose to submit one. Senator Green commented that the rural tourism planners do not change under this amendment. Senator Adams removed his objection saying he would like the Committee to revisit the issue at a later time. The amendment was ADOPTED without objection. [The following amendments were taken out of order.] CED #8: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, following line 25 Insert: Alaska Film Office 100,000 100,000 Page 21, lines 4-7 Delete: Oil & Gas Litigation 5,080,500 3,603,500 1,477,000 & Legal Services Oil & Gas 4,784,800 Litigation Oil & Gas 295,700 Legal Services Page 21, lines 4-7 Delete: Oil & Gas Litigation 4,980,500 3,503,500 1,477,000 & Legal Services Oil & Gas 4,684,800 Litigation Oil & Gas 295,700 Legal Services Senator Donley moved for adoption. Co-Chair Parnell objected for an explanation. Senator Donley explained this amendment moves $100,000 from the Oil and Gas Litigation component and uses the funds for the recreation of the Alaskan Film Office, which was eliminated several years prior. He noted the film office's funding level would be lower than previous amounts, but would have adequate funds to become operational. He spoke to the success of the office in creating jobs saying he thought the department should reinstate the program. Senator Green understood that the subcommittee determined that the services previously provided by the film office were still provided elsewhere in the department under a different funding component. Senator Adams objected because although he thought the film office was needed, he did not think the money should be taken from the oil and gas litigation fund. He reiterated the importance of the state's oversight in the oil company mergers and did not think the Department of Law could perform those functions without this funding. A roll call was taken on the motion. IN FAVOR: Senator Donley OPPOSED: Senator Adams, Senator Wilken, Senator Green, Senator Phillips Senator Leman and Co-Chair Parnell ABSENT: Senator P. Kelly and Co-Chair Torgerson The motion FAILED (1-6-2) The amendment FAILED to be adopted. CED #9: This amendment inserts $1,163,800 general funds for the Senior Citizens and Disabled Tax Relief BRU. Language accompanying the amendment states, "Adds funding for this program at FY 96 levels. Program has not been funded in last four fiscal years." This amendment was held and ultimately NOT OFFERED. CED #10: This amendment inserts $1,534,000 general funds for the State Revenue Sharing component, and $1,866,000 general funds for the Municipal Assistance component of the Municipal Revenue Sharing BRU. This amendment was held and ultimately NOT OFFERED. CED #11: This amendment adds $100,000 general funds for the Community Assistance and Economic Development BRU, International Trade and Development component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams referred to findings in the missions and measures statement prepared for the department that emphasize the importance for Alaska to develop international trade relationships. He asserted that Russia is the next area to tap international trade resources and that the state should maintain a presence in that country. He said this amendment restores funding for the state's only trade specialist responsible for the Russian Far East and Canada region. He spoke to the many Alaska businesses involved in the future Russian gold mine. Co-Chair Parnell noted that the House of Representatives provided virtually no funding for this component in it's version of the budget. However, he added that the Senate Finance Committee substitute includes all but $100,000 of the amount requested by the governor. He asked if this amendment attempts to restore the remaining amount. Senator Adams affirmed. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken and Co-Chair Parnell ABSENT: Senator P. Kelly and Co-Chair Torgerson The motion FAILED (1-6-2) The amendment FAILED to be adopted. CED #12: This amendment adds $50,000 general funds for the Banking, Securities and Corporations BRU, Banking, Securities and Corporations component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams explained the amendment restores the governor's requested increment that the department needs to pursue enforcement actions to protect Alaskan's from fraudulent securities sales. He asserted that the state has an obligation to reinvest a reasonable amount of money into regulations, given the substantial revenues the division generates. He detailed that the division's FY 00 budget was $1.7 million while the estimated revenues in that fiscal year is $10 million. He pointed out that the division's staffing level of 26 employees is the same as it was in 1982 but that the revenue increases are the result of increased activity rather than from fees. Senator Donley asked if the department doesn't charge the fees to the facilities that are audited and therefore the program pays for itself. JEFF BUSH, Deputy Commissioner, Department of Community and Economic Development, affirmed that the division pays for itself and earns significantly more revenue. While the fees had not risen, he stressed, the level of activity has greatly increased. Therefore, he said, the program is earning more money while the staff is at the same level. Senator Donley stressed that the subcommittee intended the programs be allowed to pay for themselves because the more they spend the more they earn. AT EASE 4:16 PM / 4:18 PM Senator Green stated that the subcommittee maintains its recommendation to keep the budget as it was. Co-Chair Parnell noted there could be another opportunity to use designated receipts in a bill. Senator Donley felt the matter deserved discussion. Co-Chair Parnell expressed that the question was not with the program itself but with another bill that would clarify appropriations to the program. Tape: SFC - 00 #69, Side A 4:20 PM [tape delay] Co-Chair Torgerson said the intent of the aforementioned bill was to eliminate the need to revisit the issue every year. He noted the change was made in the language section of the previous year's budget. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Senator Green, Co-Chair Torgerson and Co- Chair Parnell ABSENT: Senator P. Kelly The motion FAILED (1-7-1) The amendment FAILED to be adopted. COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 313(FIN) am "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." At ease 4:24 PM / 4:29 PM Co-Chair Torgerson moved for adoption of HB 313, 1- LS1305\G, as a workdraft. There was no objection and the committee substitute was ADOPTED. At ease 4:30 PM / 9:39 PM HB 312-APPROPRIATIONS: OPERATING BUDGET (Continued) DEPARTMENT OF ADMINISTRATION ADM #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, line 8 Delete: Motor Vehicles 8,502,600 8,467,700 34,900 Insert: Motor Vehicles 8,702,600 8,667,700 34,900 Restores funding for DMV at FY 00 level. This amendment deferred to ADM #1A and was NOT OFFERED. ADM #1A: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, line 8 Delete: Motor Vehicles 8,502,600 8,467,700 34,900 Insert: Motor Vehicles 8,702,600 8,467,700 234,900 Restores funding for DMV at FY 00 level using $200,000 ILTF. Senator Donley moved for adoption. Senator Adams asked if the ILTF had sufficient funds to cover this appropriation. Co-Chair Parnell affirmed there was an adequate amount of money. The amendment was ADOPTED without objection. ADM #2: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, line 8 Delete: Motor Vehicles 8,502,600 8,467,700 34,900 Insert: Motor Vehicles 8,702,600 8,667,700 34,900 Page 21, lines 4-7 Delete: Oil & Gas Litigation 5,080,500 3,603,500 1,477,000 & Legal Services Oil & Gas 4,784,800 Litigation Oil & Gas 295,700 Legal Services Insert Oil & Gas 7,982,400 3,505,400 1,477,000 Litigation & Legal Services Oil & Gas 4,686,700 Litigation Oil & Gas 295,700 Legal Services Restores funding for DMV at FY 00 level. This amendment was NOT OFFERED due to action taken on ADM #1A. ADM #3: This amendment adds $335,800 general funds for the Legal and Advocacy Services BRU, Office of Public Advocacy (OPA) component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams stated that the amendment restores the associate attorney positions that act as guardians ad litem. He stressed that the Anchorage office had experienced a 37 percent increase in the first six months of the current fiscal year. He noted that HB 375 mandated a timeline to determine the placement of children at-risk, which resulted in the increase. Without this amendment, he predicted the caseload would climb to 200 abused children per caseworker in Anchorage and Fairbanks. He surmised that the agency would not be to blame but the legislators in their failure to provide sufficient funds to handle the caseload. He reminded that OPA's missions and measures statement strives to provide permanent placement for children at-risk. In order to meet this goal, he stated that funds are needed. Senator Wilken noted the FY 01 budget is approximately $8.9 million and that OPA has been funded at the FY 00 with an increase of over $508,000. He said the remarks made by OPA and the Public Defender's Agency (PDA) have concerned the budget subcommittee and others in the legislature. He relayed assurances he made to Department of Administration Commissioner Bob Poe that he would work the agency if the department formed a task force to investigate the possibility of restructuring both the OPA and the PDA. He stated that the recent report published by the Division of Legislative Budget and Audit and recent procedural changes made by the Department of Law would help the process. He hoped that by the next session, the task force would present to the legislature a resolution on how to fix the agencies' problems. Senator Adams stressed that the immediate problem was the caseload increase. He asserted that a task force formed to research the situation would not provide the needed relief. He urged for the funds to be provided in this budget and that the task force could then look into making changes to avoid future problems. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. ADM #4: This amendment adds $755,200 general funds for the Legal and Advocacy Services BRU, Public Defender component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams shared that this amendment attempts to address a serious under-funding and under-staffing of this agency. He pointed out that the agency's caseload has increased 47 percent from FY 88 to FY 97. He warned that without this funding the agency would have to eliminate any travel to remote court locations, the computerized legal research would be curtailed, trials and hearings would be delayed for lack of time and preparation. He added that PDA attorneys would be forced to provide even more uncompensated functions than they currently perform. He noted Division of Legislative Budget and Audit reports that found the agency was not adequately funded. He stressed the constitutional mandate to provide legal representation to poor defendants. He also referred to the missions and measures legislation adopted by the Senate earlier in the day stating that this money was necessary to allow the agency to accomplish it's mission. Senator Wilken responded that the budget reflected the FY 00 level of funding plus and additional $250,000 to account for the increased caseload. He added that the aforementioned OPA/PDA task force would address this matter as well. Senator Donley added that the audit was also highly critical of the agency for not focusing on its mission, by making extraneous losing arguments that could have been avoided. Plus, he said the audit criticized the agency's ratio of attorneys to staff, saying if there were fewer attorneys the agency could provide better support and do its job more efficiently. Senator Adams pointed out that these types of problems arise when an agency is under-funded. Co-Chair Parnell stated, "when is an increase not enough of an increase, that's the question here." Senator Donley added there is also a matter of fairness because the prosecutor's budget was not increased. He suggested that if this amendment were caseload-driven, the prosecutor's budget should be increased proportionally. He asserted that the prosecutor's office is obligated by law to prosecute crimes. Senator Adams posed the question of whether the state is not constitutionally mandated to provide legal representation to Alaskan's who can not otherwise afford it. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. ADM #5: This amendment adds $130,000 general funds to the Public Communications Services BRU, Public Broadcasting- Radio component. Senator Adams moved for adoption. Co-Chair Parnell objected. AT EASE 9:49 PM / 9:51 PM Senator Adams stressed that many areas of the state are only served by one radio station. He avowed that this station does not only provide entertainment but also important emergency information. He noted the high public contribution to the service. Senator Wilken stated that the funding reduction from the previous year was very minor and that he had seen no information that this would harm broadcasting to any station. He added that the committee substitute recognizes the efforts of public broadcasting stations to solicit private funding. He noted that the committee substitute restored some reductions made by the House of Representative's version. Senator Adams countered that every cent cut from this program's budget has an affect on the stations because of the "rolling effect" on federal funding. Senator Wilken had no information to show any loss of federal funding. Co-Chair Parnell pointed out that a large public outcry on this matter was a result of the more drastic cuts proposed by the House Finance Committee. He shared Senator Wilken's assessment that he had seen no evidence to show that public broadcasting would be jeopardized. ALISON ELGEE, Deputy Commissioner, Department of Administration, stated that the Public Broadcasting Commission had been meeting for the day to attempt to offer budgetary suggestions. She said the Commission was preparing a document that would detail the impact of the reductions. She explained that the committee substitute's proposed budget reduction over FY 00 would result in the elimination to two grants to rural radio stations. She qualified that it was not yet known which stations would be effected. She told of the performance criteria that the Commission was considering using for the selection of the two stations that would be impacted. She said a grant to the Anchorage station would also be reduced. Senator Wilken stressed that he had asked about possible impacts during the entire subcommittee process and found the Commission uncooperative. He remained opposed to the amendment. Senator Adams noted the witness had just made a statement that the reduction would in fact effect the program. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Donley, Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. ADM #6: This amendment adds $450,000 general funds to the Centralized Administrative Services BRU, Finance component. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams noted this item does not seem to affect a particular clientele but that the cost increase was due to increased license fees charged for state accounting and state payroll. He warned that without the appropriation, agencies would be forced to make reductions elsewhere. He reminded of the co-chair's earlier statement that the issue needed to be carefully monitored. Senator Wilken qualified that the $250,000 reduction to the FY 00 funding level does affect some positions but that the intent was to instruct the agency to manage its staff better so this cost could be absorbed. He noted approximately $80,000 is available to the Division of Finance to counteract this reduction. He stated that it was still a difficult reduction to make but is necessary to meet budgetary goals. Senator Adams suggested this reduction could result in a delay in payments to vendors, and subsequent delays in obtaining federal reimbursement in a timely manner. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Leman, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. ADM #7: This amendment adds $355,000 general funds/mental health receipts for the Legal and Advocacy Services BRU, Office of Public Advocacy component. This amendment applies to HB 313, the Mental Health funds portion of the FY 01 budget. Senator Adams moved for adoption. Co-Chair Parnell objected. Senator Adams shared his intent to reduce caseloads. He warned that failure to fund this increment would result in the continued deterioration of the quality of guardian services to those Alaskans who are mentally incapacitated and elderly. He cited the caseload has increased from 29 per public guardian to 93 in the past 15 years. He referred to the 1992 audit report that shows this is an on-going problem. Senator Wilken noted that the agency was funded at the FY 00 level, plus an additional $508,800. Senator Adams appreciated the increase but noted that the funding does not keep up with the caseload, which has risen by nine percent a year. A roll call was taken on the motion. IN FAVOR: Senator Adams OPPOSED: Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. UNIVERSITY OF ALASKA UNIV #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 30, line 3 Delete: University of 446,095,100 171,743,300 294,351,800 Alaska Insert: University of 498,254,800 171,743,300 326,511,500 Alaska Page 30, line 6 Delete: Statewide 21,206,400 Services Insert: Statewide 53,366,100 Services Senator Leman moved for adoption and explained this amendment gives authority to obtain additional federal funds if they become available, as requested in the University's budget proposal. Senator Phillips asked how much money was entailed in this amendment. Senator Leman quoted, "$32,159,700." Senator Phillips asked the total of federal funds in the University of Alaska system. [Conversation held out of range of audio recording equipment.] Co-Chair Parnell stated for the record that $63,434,200 is the total amount of federal funds provided to the University system in the FY 01 budget. Without objection the amendment was ADOPTED. UNIV #2: This amendment adds $16,900,000 general funds to the Budget Reductions/Additions-Statewide component. Explanatory language states, "This amendment funds the increase in new operating funds to put the University on track to respond to the needs of Alaskans as recommended by the University of Alaska Board of Regents. The increase will allow the continuation of program initiatives that the University started this year." Senator Wilken moved for adoption. Co-Chair Parnell objected. Senator Wilken expressed that the message of the University has been "loud and clear" from across the state. He noted that the mood in the state and the legislature has changed in the past two to three years and is attributed to the Board of Regents. This board, he said had the vision and the courage to elect a leader that could provide energy to the students and administration of the university and also to the legislature. Senator Wilken stated that this amendment fully funds the $16.9 million request made by the board and University of Alaska President Mark Hamilton. He encouraged members support this amendment. AT EASE 10:07 AM / 10:13 AM Co-Chair Parnell noted a proposed amendment to the amendment. This amendment to the amendment inserts two new bill sections to read as follows. Page 43, following line 3 Insert a new bill section to read: Sec. 13. UNIVERSITY OF ALASKA. The unexpended and unobligated balance on June 30, 2000, of the appropriation made by Sec. 43, ch. 84, SLA 1999, page 23, line 30 (K-12 Support - $762,280,800), not to exceed $6,565,600 is appropriated to the University of Alaska for the fiscal year ending June 30, 2001. Page 48, following line 22 Insert a new bill section to read: Sec. 36. UNIVERSITY OF ALASKA. The sum of $2,000,000 is appropriated as a return of capital from corporate receipts of the student loan fund (AS 14.42.210) to the University of Alaska for operating expenses for the fiscal year ending June 30, 2001. Co-Chair Torgerson moved to amend UNIV #2 to include the above language. Senator Adams and Senator Phillips objected. Co-Chair Parnell told the Committee this amendment to the amendment replaces the $16.0 million allocation with $8,565,600. He explained that $6,565,000 of that amount is education lapse funds from the current year, and the remaining $2 million is corporate receipts of the student loan program. Co-Chair Torgerson detailed the attachment to the amendment to the amendment. [Copy on file.] He stated that the goal of this amendment to the amendment is that the money is to go directly into classroom instruction. He noted that the portion of the $16.9 million request intended for labor contract agreements is denied in this amendment. He added that "inflation and non-discretionary needs" are not funded either. What the amendment to the amendment does fund, he continued is the essential core faculty in the three major campuses of Fairbanks, Anchorage and Juneau, "ensuring academic quality." Senator Phillips opposed the amendment because it takes away lapsed funds that had been allocated to K-12 education when issues such as pupil transportation, debt retirement and quality education could be addressed with these funds. He also questioned the use of student loan program receipts noting that the program was not only for students attending schools in-state and that he felt students attending school Outside should be concerned. He summarized that he would prefer a different approach. He requested someone from student loans address this amendment to the amendment. There was no one present to speak on behalf of the student loan program. Co-Chair Parnell understood the student loan program receipt funds to be a dividend and that the program itself would in no way be effected. Senator Phillips still had concerns with the other K-12 items that needed to be addressed. He also did not approve of using some of the funds for salary increases. Co-Chair Parnell stressed that none of the funding was intended to go to the employee contracts. He emphasized that all state employee contracts would be addressed together. Senator Phillips repeated his opposition to using K-12 money. Senator Wilken said he struggled to find the glass half full rather than half empty. He was appreciative of the increase already allotted to the University. He agreed that the employee contracts should be addressed separately. He noted that this amendment funds all but $3 million of the University's request, not including the contracts. He wanted to work towards adoption of SB 289, relating to vocational and technical education, which would provide a funding source for the University. Considering the opportunity to provide the remaining $3 million to the University in SB 289, he supported the amendment to the amendment before the Committee. Senator Leman said it was fair to say that the legislature funded money to meet an anticipated K-12 need, but stressed that all of the funds were not needed. Therefore, he did not think that the remaining money was obligated to K-12 just because it appropriated once. Senator Leman continued that, while he supports the University, he thought it needed to be held more accountable. He wanted the University to redevelop its arctic engineering program, to return it to world-class status, and to improve its mineral engineering program as well. He expressed that those two programs are part of what makes the University of Alaska unique. He also wanted to ensure that in one year, a relationship was established with the business community. He wanted essential core faculty identified, along with what they teach and their credentials for accountability purposes. If those criteria could be done, he would support this amendment. Senator Phillips granted the K-12 enrollment had not grown, but he felt this amendment was still a reappropriation. He wanted the money to be spent to reduce the school debt. He surmised this was an easy way to fix the debt situation. He also spoke to the viability of future student loans. Co-Chair Torgerson stated it was his intent to address pupil transportation in separate legislation. Other legislation would address public education funding as well, he asserted. Co-Chair Parnell noted the legislative process is an on- going conversation. He asserted the increased appropriation to the University is "a vote of confidence", and an investment, in Alaska's future. Senator Adams supported the original amendment and partially agreed with Senator Phillips's argument. Senator Adams advised that in one year, the same problem of funding for K-12 education would be back before the Committee. Tape: SFC - 00 #69, Side B 10:28 AM Senator Adams suggested the lapse funds should be allocated to either the Quality Schools program or the exit examinations. He pointed out that the student loan funds, comprising a portion of this amendment, had already been allocated to different programs in the House of Representatives' approved budget. Senator Phillips restated his opinion that this amendment is the wrong approach, that the funds belong to K-12 education, and that they should be spent to reduce the school debt. Co-Chair Torgerson understood that K-12 education was fully funded with the foundation funding formula. Co-Chair Parnell affirmed. A roll call was taken on the motion. IN FAVOR: Senator Wilken, Senator P. Kelly, Senator Green, Senator Donley, Senator Leman, Co-Chair Torgerson and Co- Chair Parnell. OPPOSED: Senator Adams and Senator Phillips The motion PASSED (7-2) The amendment was AMENDED. Senator Phillips objected to the adoption of the amended amendment. A roll call was taken on the motion to adopt the amended amendment. IN FAVOR: Senator Leman, Senator Adams, Senator Wilken, Senator P. Kelly, Senator Green, Senator Donley, Co-Chair Torgerson and Co-Chair Parnell OPPOSED: Senator Phillips The motion PASSED (8-1) The amended amendment was ADOPTED. UNIV #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 30, lines 1-3 Delete: University of 446,095,100 171,743,300 294,351,800 Alaska Insert: University of 464,890,300 171,017,500 293,872,800 Alaska Page 30, line 15 Delete: Bristol 1,204,800 Bay Campus This amendment was NOT OFFERED. UNIV #4: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 30, lines 1-3 Delete: University of 446,095,100 171,743,300 294,351,800 Alaska Insert: University of 465,428,000 171,220,500 294,207,500 Alaska Page 30, line 16 Delete: Chukchi 667,100 Campus This amendment was NOT OFFERED. UNIV #5: This amendment adds $102,000 Mental Health Trust Authority Authorized Receipts (MHTAAR) funds for the University of Alaska Fairbanks Campus. Language accompanying the amendment reads as follows. This amendment also affects the committee substitute for HB 313. "Mental Health Trust funds will start up a distance delivery statewide, accredited Bachelor of Social Work (BSW) degree program. The project would provide a career education path for students, beginning with the Rural Human Services certificate, progressing to a Human Services Technology associate degree, and culminating in a BSW. This request for Mental Health Trust funds is the first year of three years. The University proposes to develop shared funding agreements with agencies benefiting from the project to fund it beyond three years." Senator Leman moved for adoption. Without objection or debate, the amendment was ADOPTED. UNIV #6: This amendment adds $102,000 MHTAAR for the University of Alaska Fairbanks Campus. Language accompanying the amendment reads, "This is the first year of a three year statewide distance delivery program for an accredited Bachelor of Social Work." This amendment was NOT OFFERED due to action taken on UNIV #5. UNIV #7: This amendment adds funds to the University of Alaska Budget Reductions/Additions Systemwide component as follows: $9,743,800 FF, $4,159,800 UA/DFASVC, $1,000,000 Sci/Tech, $3,000,000 UA/ICR, $14,256,100 Univ. Receipts. Language accompanying the amendment states, "Allows the University to receive and expend all non-general funds requested in their original budget submission." This amendment was NOT OFFERED due to its similarity to UNIV #1. UNIV #8: This amendment adds $11,796,600 general funds to the University of Alaska, Budget Reductions/Additions Systemwide component. Language accompanying the amendment states, "Funds the University's request for a $16.9 million increment minus the money included for salary increases." Senator Adams commented that the matter of providing a $16.9 million increase had already been discussed in this meeting. He told the Committee he was preparing another amendment to reflect the adoption of previous amendments, which he said "short-changed the university by $3.1 million." This amendment was NOT OFFERED. UNIV #9: This amendment adds $16,957,700 general funds to the University of Alaska Budget Reductions/Additions Systemwide component. This amendment was NOT OFFERED to defer to the anticipated amendment discussed above. AT EASE 10:35 PM / 10:39 PM DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT CED #3: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, lines 30-32 Delete: Municipal Revenue 43,493,400 28,493,400 15,000,000 Sharing State 12,855,200 Revenue Sharing Municipal 15,638,200 Assistance Insert: Municipal Revenue 46,893,400 31,893,400 15,000,000 Sharing State 14,389,200 Revenue Sharing Municipal 17,504,200 Assistance Restores funding for two programs to FY 00 level. This amendment was NOT OFFERED. CED #4: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, lines 30-32 Delete: Municipal Revenue 43,493,400 28,493,400 15,000,000 Sharing State 12,855,200 Revenue Sharing Municipal 15,638,200 Assistance Insert: Municipal Revenue 62,840,100 47,840,100 15,000,000 Sharing State 21,583,800 Revenue Sharing Municipal 26,256,300 Assistance Restores funding for two programs to FY 99 level. This amendment was NOT OFFERED. CED #5: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, lines 30-31 Delete: Municipal Revenue 43,493,400 28,493,400 15,000,000 Sharing Municipal 15,638,200 Assistance Insert: Municipal Revenue 46,893,400 31,893,400 15,000,000 Sharing Municipal 19,038,200 Assistance This amendment was NOT OFFERED. CED #6: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 4, lines 30-32 Delete: Municipal Revenue 43,493,400 28,493,400 15,000,000 Sharing State 12,855,200 Revenue Sharing Municipal 15,638,200 Assistance Page 4, lines 30-32 Insert: Municipal Revenue 46,893,400 31,893,400 15,000,000 Sharing State 14,389,200 Revenue Sharing Municipal 17,504,200 Assistance Page 5, following line 3 Insert: Senior Citizens & 1,163,800 1,163,800 Page 2, line 9, through page 31, and line 23 Insert: "Notwithstanding the amounts otherwise set out in this section, each appropriation made on page 2, line 9, through page 23, line 22, of this section and page 25, line 15, through page 31, line 23, of this section is reduced by an amount equal to one percent of the general funds allocated for personal services and for travel under each of those appropriations. "General funds" includes funds described as general fund, general fund program receipts, general fund match, and general fund mental health." Senator Donley moved for adoption and explained this amendment makes a one-percent, across-the-board personal reduction in personal services and travel expenses with the exclusion of the Department of Public Safety. He projected this would save the state approximately $5.44 million; a portion of which would then be utilized to restore Municipal Assistance and Revenue Sharing funding to the FY 00 level. He added that this amendment also reinstates reimbursement for the Senior Citizens and Disabled Tax Relief at the FY 96 funding level; the last year the program was funded. He shared that after these expenses, a net saving of $913,200 would be realized. Co-Chair Parnell objected and expressed that this amendment would imply that municipal assistance is more important than 24-hour emergency facilities. He warned that unallocated reductions should be carefully targeted and that this proposal was too broad. Senator Donley argued this was only a one-percent reduction and would not affect the Department of Public Safety. While it would affect other 24-hour facilities, he predicted the reduction could be absorbed. He said this amendment was to assist with an unfunded mandate to municipalities caused by the elimination of the Senior Citizens and Disabled Tax Relief. Senator Adams supported the concept of an increase to revenue sharing and municipal assistance but he had concerns about the unallocated reduction. He suggested COR #9, which solves the matter. A roll call was taken on the motion. IN FAVOR: Senator Donley OPPOSED: Senator Wilken, Senator Wilken, Senator P. Kelly, Senator Green, Senator Phillips, Senator Leman, Co-Chair Torgerson and Co-Chair Parnell The motion FAILED (1-8) The amendment FAILED to be adopted. AT EASE 10:44 PM / 10:49 PM DEPARTMENT OF LAW LAW #1: This amendment makes the following changes to the committee substitute. Appropriation General Other Allocation Items Funds Funds Page 21, lines 4-7 Delete: Oil & Gas Litigation 5,080,500 3,603,500 1,477,000 & Legal Services Oil & Gas 4,784,800 Litigation Oil & Gas 295,700 Legal Services Insert Oil & Gas Litigation 4,830,500 3,353,500 1,477,000 & Legal Services Oil & Gas 4,534,800 Litigation Oil & Gas 295,700 Legal Services Page 20, line 8 Delete: Criminal Division 14,124,800 12,562,800 1,562,000 Insert: Criminal Division 14,374,800 12,812,800 1,562,000 Adds $250,000 for Criminal Division BRU from Oil and Gas Litigation. Net zero increase. Senator Donley moved for adoption and expressed that this amendment attempts to maintain a balance in the criminal justice system by giving prosecutors equal incremental increases as the PDA. He stated that he chaired the budget subcommittee for this department and shared conversations between the subcommittee and the department whereby the department was asked what program could best absorb reductions. He said the department testified that the Oil and Gas Litigation section was given as that area. Senator Donley expressed that since funding was increased for the PDA, the prosecutor's office should be increased as well. He asserted that the prosecutor's office has the same ethical responsibilities as the PDA. Senator Donley made a technical amendment to direct the Division of Legislative Finance to conform language where necessary and moved for adoption. Senator Adams objected and spoke to the need to maintain funding for the Oil and Gas Litigation efforts. He also noted that over time, the PDA and the OPA have received larger budget reductions than the prosecutor's office. Senator Donley interjected that those agencies were never cut. Senator Adams resumed stating that the matter needed to be investigated to learn whether the PDA, the OPA and the prosecutor's offices were equally balanced. Senator Donley said he did not include this increase in the subcommittee recommendation because he was unaware there would be such a large funding increase to the PDA. He disagreed that the PDA and OPA' budgets had ever been reduced, asserting that in some years, those offices had actually received increases. Senator Adams requested the Division of Legislative Finance research the history of funding for the two offices. Senator Donley said he had that information available and would share it with Senator Adams. A roll call was taken on the motion. IN FAVOR: Senator P. Kelly, Senator Green, Senator Phillips, Senator Donley, Senator Leman, Senator Wilken, Co-Chair Torgerson and Co-Chair Parnell OPPOSED: Senator Adams The motion PASSED (8-1) The amendment was ADOPTED. ADJOURNED Senator Parnell adjourned the meeting at 10:54 PM.