SENATE STATE AFFAIRS COMMITTEE February 19, 1998 3:35 p.m. MEMBERS PRESENT Senator Lyda Green, Chairman Senator Jerry Ward, Vice-Chairman Senator Jerry Mackie Senator Mike Miller MEMBERS ABSENT Senator Jim Duncan COMMITTEE CALENDAR SENATE BILL NO. 76 "An Act relating to long-term plans of certain state agencies and recommendations regarding elimination of duplication in state agency functions." - HEARD AND HELD IN COMMITTEE CS FOR HOUSE BILL NO. 334(FIN) am "An Act relating to waiver of tuition and fees for certain family members of a peace officer or a fire fighter killed in the line of duty; and providing for an effective date." - HEARD AND HELD IN COMMITTEE PREVIOUS SENATE COMMITTEE ACTION SB 76 - No previous action to record. HB 334 - No previous action to record. WITNESS REGISTER Richard Vitale, Staff to Senator Sean Parnell State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on behalf of sponsor on CSSB 76(STA) Jack Fargnoli, Senior Policy Analyst Office of Management & Budget P.O. Box 110020 Juneau, AK 99811-0020 POSITION STATEMENT: Representative Pete Kelly State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Prime Sponsor of CSHB 334(FIN) am Bruce Campbell, Staff to Representative Kelly State Capitol Juneau, AK 99801-1182 POSITION STATEMENT: Offered information on CSHB 334(FIN) am ACTION NARRATIVE TAPE 98-7, SIDE A Number 001 SB 76 - STATE LONG-TERM PLANNING CHAIRMAN GREEN called the Senate State Affairs Committee to order at 3:35 p.m., and noted the presence of Senators Ward, Miller, Mackie and Green. She then brought SB 76 before the committee as the first order of business. Number 010 RICH VITALE, staff to Senator Parnell, expressed Senator Parnell's regrets that he was out of town and could not testify on the legislation. Mr. Vitale directed attention to a proposed CSSB 76(STA), version "K" which corrects a drafting error in version "H." On page 2, lines 18 through 26, a new subsection (e) has been added. He explained this is existing law and it was inadvertently left out of the previous draft. Mr. Vitale said SB 76 will enact results-based government to better serve Alaskans. It revises the Executive Budget Act to require the legislative and executive branches to more clearly focus on results for Alaskans through policies established by the Legislature and executed by the Governor. Specifically, the Legislature will establish policy by issuing mission statements and desired results for each state agency to achieve. To accomplish this, the Legislature will identify desired results, set priorities for each agency, assign accountability and require methods for measuring, reporting, and evaluating results. These results will be reported quarterly to the Legislature for continuity and effective oversight. The Governor, through the Office of Management and Budget (OMB), executes, coordinates, and manages each agency's efforts to achieve the Legislature's mission and desired results. The Governor shall also, through discussions with the public, its employees and management teams, make recommendations for future mission statements and desired results for consideration by the Legislature. Mr. Vitale said Senator Parnell respectfully requests the committee's support for SB 76 which will result in a new method of budgeting. Number 056 SENATOR MACKIE moved the adoption of CSSB 76(STA), version "K," as a working document. Hearing no objection, it was so ordered. Number 070 CHAIRMAN GREEN commented that the Executive Budget Act currently has the leeway to do something similar to what SB 76 proposes without new legislation. MR. VITALE agreed that it might be possible, but he said the committee substitute repeals a section in law, 090, which he understands has rarely been followed, and part of the problem has been that the Executive Budget Act has grown over time and compiled a lot of vague gray language that talks about doing this, but it doesn't give a coherent, logical step by step of how to do it. In the committee substitute they are attempting to streamline and consolidate the system so that it is more understandable of what's going on. CHAIRMAN GREEN noted AS 37.07.030 is repealed in the committee substitute, and she asked if the new functions that are comparable to those are included somewhere else in the bill. MR. VITALE clarified that Section 37.07.014 in Section 1 is a reenactment of 030. He added that is really the heart of what the bill is about. It addresses the responsibility of laying out what it means to do the type of results-based government they are looking for. Number 100 CHAIRMAN GREEN asked if without the passage of this legislation there would be any problem in implementing the new mission-based budget currently being worked on in the Finance Committee. MR. VITALE said he didn't think there would be a problem with implementing it, however, he thinks it sends a mixed message to the Executive Branch about the Legislature's intentions for setting policy and executing the policy. SENATOR MACKIE suggested that it might be a good idea to ask for a legal opinion on whether this is something that is needed. He asked how closely coordinated this legislation is with the leadership's direction or with the Finance Committee's leadership direction in terms of budget process options that are currently being reviewed. MR. VITALE replied that there have been discussions with the Finance co-chair's office and they have heard nothing that this would conflict with what they are trying to do. MR. VITALE pointed out the legislation also contains a repealing of one clause (AS 37.07.080(g)(2)) that was declared unconstitutional by the Supreme Court several years ago and has been left in statute. SENATOR MACKIE commented that he thinks there is some merit in the approach of wanting to see results in the budgeting process, but he questions if this type of thing can be legislated and if things such as mission statements, etc. belong in the Executive Budget Act. CHAIRMAN GREEN agreed with Senator Mackie, and she said she too has some questions and concerns with the concept. She suggested formulating these questions and perhaps getting some legal opinions on them. Number 197 SENATOR WARD inquired if the Legislature would issue mission statements to the numerous divisions in the departments. MR. VITALE acknowledged that it could be handled that way. He said the intent is to issue the mission statement to the department, but the option to issue a separate mission statement for a subunit is in the legislation. Number 235 JACK FARGNOLI, Senior Policy Analyst, Office of Management and Budget, stated OMB has no disagreement with the intent or purpose of the legislation, but he echoed Senator Macki's concern about results being legislated or placed in law. On the overall exercise of performance-based budgeting or results- based government, Mr. Fargnoli said OMB agrees with that being the desired end, and OMB has been working closely with the finance committees on these performance measurements, as well as working with Senator Parnell on this concept. Mr. Fargnoli pointed out that departments and agencies are oriented and obliged by law to follow statutory missions, and the question raised on the bill about issuing a mission statement, which the bill envisions happening either selectively or exhaustively, or somewhere in between, could cause a lot of confusion to agencies and programs as to how they would manage being responsible for filling those program purposes if their budgets were oriented and allocated according to a few measures or results that were specified in an appropriation bill. He said that has not been talked through, and he did know if anyone was proposing that all the missions of the many agencies be revisited by statute. Mr. Fargnoli said right now the statutory process, the budget process, and the Legislature's deliberative process provides many opportunities for input by the public, and OMB is concerned that if the legislation is implemented in its present form, which may or may not be the intent, it would tend to put some confusion into that process. In his closing comments, Mr. Fargnoli expressed OMB's willingness to work with the committee and Senator Parnell and to have full discussions on these issues. Number 280 CHAIRMAN GREEN asked Mr. Fargnoli if OMB plans to get an opinion or some information on the separation of powers issue. MR. FARGNOLI informed her that they had some discussion with the Department of Law on the issue, and they will ask that some commentary be provided to the committee. Number 328 There being no further testimony on SB 76, CHAIRMAN GREEN stated the legislation would be set aside. Number 335 CSHB 334(FIN) am - TUITION WAIVER FOR POLICE WIDOW/CHILD CHAIRMAN GREEN brought CSHB 334(FIN) am before the committee as the final order of business. BRUCE CAMPBELL, staff to Representative Pete Kelly who is the prime sponsor of HB 334, spoke to the recent ambush and killing of a Fairbanks police officer who was the father of an 11-year-old son. The original legislation covered spouses and children of police officers killed in the line of duty; however, the House Finance Committee amended the bill to include the survivors of fire fighters as well. Currently, the list includes approximately 31 police officers and six fire fighters for whom spouses, sons and daughters would be included as having tuition paid for by the state of Alaska. Number 362 CHAIRMAN GREEN asked Mr. Campbell if he had the total number of peace officers, fire fighters and correctional officers in the state. MR. CAMPBELL related that are approximately 4,000 combined fire fighters and volunteer fire fighters and a much smaller number of police officers. It was estimated there were between 500 and 1,000 police officers and 800 correctional officers. Responding to a question from CHAIRMAN GREEN, REPRESENTATIVE KELLY clarified that the definition of "peace officer" in statute includes correctional officer. SENATOR MILLER noted there has been interest expressed to include EMS personnel in the legislation, but he pointed out that inclusion of that group would not fit under the title of the current bill, and the only way they could be included would be introduction of a committee bill. REPRESENTATIVE KELLY said he looked into that issue, but when he created this bill he had a standard that police and fireman are asked to stand in front of the bullet and enter the burning building. The danger that they are in is not necessarily the determining factor, but it is because they have been asked to do those things. He said as good a job as EMS personnel do and as valuable a job as that is, they are not asked to absolutely put themselves into those dangerous situations like police officers and fire fighters. He added that a line had to drawn on who this legislation would include. Number 447 SENATOR MACKIE pointed out that when EMS personnel respond to ambulance calls, there's not always going to be police officers there, and a lot of the calls EMS personnel respond to are domestic violence situations where there are assaults, etc. Although a lot of EMS units have policies that they don't enter those kinds of situations without first having police protection, it is not always the case when you are asking volunteer EMS personnel to respond to a home because of situations. He agrees that the line has to be drawn somewhere, but he wishes there was a way the EMS personnel could be included. He said it is a very emotional issue because EMS people play a very vital role in our society. Senator Mackie also said he was a close friend of slain Alaska State Trooper Bruce Heck, and he can't think of a finer gesture than the state of Alaska recognizing Trooper Heck's wife and his children for educational opportunities. He believes HB 334 is a piece of legislation that is long overdue. Number 481 There being no further testimony, CHAIRMAN GREEN stated HB 334 would be held over until the following week at which time public testimony would be taken. She then adjourned the meeting at approximately 4:12 p.m.