Legislature(1999 - 2000)

05/18/1999 04:20 AM FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
<MEETING WILL CONVENE AT THE CALL OF THE
CHAIR>
BILLS PREVIOUSLY HEARD/SCHEDULED
= SB 157
MOVED HCSSB 157(FIN) OUT OF COMMITTEE
txt
           HOUSE FINANCE COMMITTEE                                                                                              
              May 18, 1999                                                                                                      
                 4:20 A.M.                                                                                                      
                                                                                                                                
TAPE HFC 99 - 148, Side 1                                                                                                       
TAPE HFC 99 - 148, Side 2                                                                                                       
                                                                                                                                
CALL TO ORDER                                                                                                                   
                                                                                                                                
Co-Chair Therriault called the House Finance Committee                                                                          
meeting to order at 4:20 a.m.                                                                                                   
                                                                                                                                
PRESENT                                                                                                                         
                                                                                                                                
Co-Chair Therriault   Representative Foster                                                                                     
Co-Chair Mulder    Representative Grussendorf                                                                                   
Vice Chair Bunde    Representative Kohring                                                                                      
Representative Austerman  Representative Moses                                                                                  
Representative J. Davies   Representative Williams                                                                              
Representative G. Davis                                                                                                         
                                                                                                                                
ALSO PRESENT                                                                                                                    
                                                                                                                                
Annalee McConnell, Director, Office of Management and                                                                           
Budget, Office of the Governor; Dan Spencer, Chief Budget                                                                       
Analyst, Office of Management and Budget, Office of the                                                                         
Governor; Kenneth Bischoff, Director, Division of                                                                               
Administrative Services, Department of Transportation; Brian                                                                    
Butcher, Staff, Representative Therriault; Tom Lawson,                                                                          
Director, Administrative Services, Department of Commerce                                                                       
and Economic Development; Joe Perkins, Commissioner,                                                                            
Department of Transportation and Public Facilities; Tom                                                                         
Brigham, Director, Division of Statewide Planning,                                                                              
Department of Transportation and Public Facilities.                                                                             
                                                                                                                                
SUMMARY                                                                                                                         
                                                                                                                                
CSSB 32(FIN) am                                                                                                                 
                                                                                                                                
"An Act making and amending appropriations and                                                                                  
reappropriations; making and amending                                                                                           
appropriations under art. IX, sec. 17(c),                                                                                       
Constitution of the State of Alaska, from the                                                                                   
constitutional budget reserve fund; and providing                                                                               
for an effective date."                                                                                                         
                                                                                                                                
HCS CSSB 32 (FIN) was REPORTED out of Committee                                                                                 
with a "do pass" recommendation.                                                                                                
CS FOR SENATE BILL NO. 32(FIN) am                                                                                               
                                                                                                                                
"An Act making and amending appropriations and                                                                                  
reappropriations; making and amending appropriations                                                                            
under art. IX, sec. 17(c), Constitution of the State of                                                                         
Alaska, from the constitutional budget reserve fund;                                                                            
and providing for an effective date."                                                                                           
                                                                                                                                
Co-Chair Therriault provided members with a proposed                                                                            
committee substitute for SB 32, work draft 1-GS1022\S,                                                                          
5/17/99 (copy on file).                                                                                                         
                                                                                                                                
Co-Chair Mulder MOVED to ADOPT work draft 1-GS1022\S,                                                                           
5/17/99. There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 1 (copy on                                                                         
file). He explained that Amendment 1 contains a number of                                                                       
amendments sponsored by the Administration.                                                                                     
                                                                                                                                
Insert the following new sections:                                                                                              
                                                                                                                                
DEPARTMENT OF ADMINISTRATION. The sum of $165,000 is                                                                            
appropriated from the general fund to the Department of                                                                         
Administration, public defender agency, for operating                                                                           
costs for the fiscal year ending June 30, 1999.                                                                                 
                                                                                                                                
ALASKA CHILDREN'S TRUST. (a) The designated program                                                                             
receipts (AS 37.05.146(b)(3)) received from the                                                                                 
issuance of Heirloom Birth Certificates during the                                                                              
fiscal years ending June 30,1999 and June 30, 2000 is                                                                           
appropriated to the Alaska children's trust (AS                                                                                 
37.14.200) in accordance with AS 18.50.225(a).                                                                                  
(b) The appropriation made in (a) of this section                                                                               
is retroactive to July 1, 1998.                                                                                                 
                                                                                                                                
DEPARTMENT OF LAW. The sum of $575,000 is appropriated                                                                          
from the following sources to the Department of Law,                                                                            
governmental affairs, to investigate and prosecute the                                                                          
claims of state and municipal agencies against the Bank                                                                         
of America and certain other affiliated banks for the                                                                           
fiscal years ending June 30, 1999 and June 30, 2000:                                                                            
 General fund $250,000                                                                                                          
 Statutory designated program receipts 325,000                                                                                  
                                                                                                                                
DEPARTMENT OF LAW. The sum of $230,354 is appropriated                                                                          
from the general fund to the Department of Law to pay                                                                           
judgments and claims against the state for the fiscal                                                                           
year ending June 30, 1999.                                                                                                      
(Add to immediate effective date section).                                                                                      
                                                                                                                                
DISASTER RELIEF FUND. (a) The sum of $630,200 is                                                                                
appropriated from the general fund to the disaster                                                                              
relief fund (AS 26.23 .300) for costs associated with                                                                           
disasters.                                                                                                                      
(b) The appropriation made by (a) of this section                                                                               
is retroactive to May 31, 1999. (Add reference to this                                                                          
section to Sec. _______ (capitalized funds))                                                                                    
                                                                                                                                
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS. The sum of                                                                         
$27,000 is appropriated from the general fund to the                                                                            
Department of Military and Veterans                                                                                             
Affairs for costs associated with search and rescue                                                                             
missions for the fiscal year ending                                                                                             
June 30, 1999.                                                                                                                  
                                                                                                                                
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT.                                                                                
(a) The unexpended and unobligated balance on June 30,                                                                          
1999, of the federal receipts from the United States                                                                            
Agency for International Development grant authorized                                                                           
by RPL 08-8-0001 is appropriated to the Department of                                                                           
Commerce and Economic Development for programs under                                                                            
the grant agreement for the fiscal year ending June 30,                                                                         
2000.                                                                                                                           
                                                                                                                                
(b) The sum of $118,000 is appropriated from federal                                                                            
receipts to the Department of Commerce and Economic                                                                             
Development for programs under a grant agreement with                                                                           
the United States Agency for International Development                                                                          
for the fiscal year ending June 30, 2000.                                                                                       
                                                                                                                                
DEPARTMENT OF COMMUNITY AND REGIONAL AFFAIRS                                                                                    
(a)The sum of $600,000 is appropriated from federal                                                                             
receipts to the Department of Health and Social                                                                                 
Services, ChildCare Benefits for the fiscal year ending                                                                         
June 30, 1999.                                                                                                                  
                                                                                                                                
(b) The appropriation made in Section 31, ch. 137, SLA                                                                          
1998, p. 21, line 6 (Department of Community and                                                                                
Regional Affairs, Child Assistance) and amended in                                                                              
Section 10, ch. 2, SLA 1999, page 9, lines 20 is                                                                                
reduced by $350,000 general funds and increased by                                                                              
$350,000 interagency receipts.                                                                                                  
                                                                                                                                
DEPARTMENT OF HEALTH AND SOCIAL SERVICES. The sum of                                                                            
$1,460,400 is appropriated to the Department of Health                                                                          
and Social Services for additional costs of the Foster                                                                          
care program for the fiscal year ending June 30, 1999                                                                           
from the following sources:                                                                                                     
General fund $350,000 Federal receipts 860,000                                                                                  
Inter-Agency receipts 250,000                                                                                                   
DEPARTMENT OF LABOR. The sum of$.1,255,000 is                                                                                   
appropriated from costs for the fiscal year ending June                                                                         
30, 1999.                                                                                                                       
DEPARTMENT OF LABOR. The unexpended and unobligated                                                                             
general fund balance, not to exceed $31,000, of the                                                                             
appropriation made in sec. 17, ch. 79, SLA 1993, page                                                                           
6, line 2 (workers' compensation records imaging -                                                                              
$383,800) is reappropriated to the Department of Labor                                                                          
for the workers' compensation information handling                                                                              
systems project.                                                                                                                
                                                                                                                                
MILITARY AND VETERANS AFFAIRS. The sum of $35,000 is                                                                            
appropriated from designated program receipts (AS 37                                                                            
.05. 146(b)(3)) to the Department of Military and                                                                               
Veterans Affairs for operations and maintenance costs                                                                           
of the Alaska National Guard Kotzebue hangar for the                                                                            
fiscal year ending June 30, 1999.                                                                                               
DEPARTMENT OF Natural RESOURCES. Section 131, ch. 139,                                                                          
SLA1998, page 53, line 4 is amended to read:                                                                                    
Appropriation General Other Items Funds                                                                                         
Trails Federal Grants $525.000                                                                                                  
[$200,000]                                                                                                                      
Section 132, ch.139, SLA1998, page 109, line 16 is                                                                              
amended to read:                                                                                                                
Federal Receipts 2.665.000                                                                                                      
[2,340,000]                                                                                                                     
                                                                                                                                
Add a new supplemental item to read:                                                                                            
                                                                                                                                
The sum of$191,250 is appropriated from federal                                                                                 
receipts to the Department of Public Safety, highway                                                                            
safety planning agency -federal grants, for grant                                                                               
activities for the fiscal year ending June 30, 1999.                                                                            
                                                                                                                                
ANNALEE MCCONNELL, DIRECTOR, OFFICE OF MANAGEMENT AND                                                                           
BUDGET, OFFICE OF THE GOVERNOR reviewed Amendment 1.                                                                            
                                                                                                                                
Representative Grussendorf questioned if judgments and                                                                          
claims in the Department of Law were included. Ms. McConnell                                                                    
affirmed that they were included and added that all of their                                                                    
concerns were included.                                                                                                         
                                                                                                                                
There being NO OBJECTION, Amendment 1 was adopted.                                                                              
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 2.                                                                                 
Insert a new section.                                                                                                           
(a) The unexpended and unobligated balance on June 30,                                                                          
1999, of the appropriation from the general fund made                                                                           
in sec. 31, ch. 137, SLA 1998, page 55, line 25                                                                                 
(Village Public Safety Officer Program -$7,245,500) is                                                                          
reappropriated to the Department of Public Safety for                                                                           
the following purpose and in the amount stated for the                                                                          
fiscal year ending June 30, 2000.                                                                                               
PURPOSE Fish and Wildlife Protection Equipment $250,000                                                                         
(b) If the amount available for reappropriation under                                                                           
(a) of this section is less than $250,000, then the                                                                             
reappropriation made by (a) of this section shall be                                                                            
reduced by the amount of the shortfall.                                                                                         
(c) The appropriation made by this section is for a                                                                             
capital project and lapses under AS 37.25.020.                                                                                  
                                                                                                                                
Ms. McConnell explained that Amendment 2 would pay for                                                                          
yearly operational equipment. There being NO OBJECTION, it                                                                      
was so ordered.                                                                                                                 
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 3.                                                                                 
                                                                                                                                
Insert a new section.                                                                                                           
                                                                                                                                
DEPARTMENT OF PUBLIC SAFETY                                                                                                     
(a) The proceeds from the sale of three aircraft,                                                                               
including parts inventory, by the Department of Public                                                                          
Safety are appropriated from the general fund to the                                                                            
Department of Public Safety for the purchase of                                                                                 
replacement aircraft.                                                                                                           
                                                                                                                                
(b ) The appropriation made under this section is for a                                                                         
capital project and lapses under AS 37.25.020.                                                                                  
                                                                                                                                
DAN SPENCER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND                                                                     
BUDGET, OFFICE OF THE GOVERNOR explained that Amendment 2                                                                       
takes FY99 funds.                                                                                                               
                                                                                                                                
KENNETH BISCHOFF, DIRECTOR, DIVISION OF ADMINISTRATIVE                                                                          
SERVICES, DEPARTMENT OF TRANSPORTATION clarified that the                                                                       
department has not decided if there would be more than one                                                                      
aircraft.                                                                                                                       
                                                                                                                                
There being NO OBJECTION, Amendment 3 was adopted.                                                                              
                                                                                                                                
Vice-Chair Bunde MOVED to ADOPT Amendment 4 (copy on file).                                                                     
                                                                                                                                
Insert a new sections:                                                                                                          
                                                                                                                                
(a) The sum of $3,000,000 is appropriated from federal                                                                          
receipts to the Department of Health and Social                                                                                 
Services, ChildCare Benefits for the fiscal year ending                                                                         
June 30, 1999.                                                                                                                  
                                                                                                                                
(b ) The appropriation made in Section 31, ch. 137, SLA                                                                         
1998, p. 21, line 6 (Department of Community and                                                                                
Regional Affairs, Child Assistance) and amended in                                                                              
Section 10, ch. 2, SLA 1999, page 9, line 20 is reduced                                                                         
by $2,000,000 general funds and increased by $3,000,000                                                                         
interagency receipts and lapses June 30, 2001.                                                                                  
                                                                                                                                
The sum of$2,100,000 is appropriated to the Department                                                                          
of Health and Social Services for a special project for                                                                         
child protection for the fiscal years ending June 30,                                                                           
1999, June 30,2000 and June 30,2001 from the following                                                                          
sources:                                                                                                                        
General Fund $1,800,000 Federal receipts $300,000                                                                               
                                                                                                                                
The sum of $200,000 is appropriated from the general                                                                            
fund to the Department of Health and Social Services as                                                                         
a capital appropriation for Family Services Field                                                                               
Safety, Office and Transportation Equipment.                                                                                    
                                                                                                                                
EXPLANATION: This amendment allows an immediate beginning                                                                       
for a special project for child protection to provide funds                                                                     
for contracts and project workers to reduce the back-log of                                                                     
children in the Foster Care system (see attached proposal).                                                                     
                                                                                                                                
The first section appropriates $3.0 million additional                                                                          
federal receipts to DHSS Public Assistance ChildCare. This                                                                      
will allow DHSS to transfer funds to DCRA childcare. The                                                                        
second section replaces $2.0 million general fund in DCRA                                                                       
with interagency receipts (TANF federal coming from DHSS),                                                                      
also extends the lapse date so that the balance is kept in                                                                      
reserve, if the Legislature chooses to continue the project                                                                     
for a second year. The third section makes an appropriation                                                                     
of $1.8 million to DHSS for the special project for child                                                                       
protection, using the general funds from child assistance,                                                                      
plus $300.0 federal receipts from Title IVE.                                                                                    
Ms. McConnell explained that Amendment 4 would allow                                                                            
permanent placement for 397 children that have been in                                                                          
foster care for at least 18 months. Federal regulation                                                                          
requires that these children be placed in permanent care by                                                                     
the end of the next fiscal year. It also allows $200.0                                                                          
general fund dollars for a capital appropriation for safety                                                                     
equipment for Family Services field offices. In addition,                                                                       
$800 thousand general fund dollars would be carried forward.                                                                    
                                                                                                                                
Vice-Chair Bunde noted that intent language would require                                                                       
that a preliminary report be given to the Department of                                                                         
Health and Social Services budget subcommittees. Both co-                                                                       
chairs of the Health, Education and Social Services                                                                             
Committee would be involved.                                                                                                    
                                                                                                                                
There being NO OBJECTION, Amendment 5 was adopted.                                                                              
                                                                                                                                
Vice-Chair Bunde MOVED to ADOPT Amendment 5 (copy on file).                                                                     
Insert a new section:                                                                                                           
The unexpended and unobligated balance, not to exceed                                                                           
$82,000, of the appropriation made in sec. 18( d), ch.                                                                          
139, SLA 1998, page 7, lines 15 -18 (Department of                                                                              
Health and Social Services, costs related to reducing                                                                           
the adoption caseload backlog -$866,667), is                                                                                    
reappropriated to the Alaska Court System for the                                                                               
special project for child protection for the fiscal                                                                             
years ending June 30, 1999, June 30, 2000 and June 30,                                                                          
2001.                                                                                                                           
                                                                                                                                
EXPLANATION: This amendment funds the increased court costs                                                                     
that will result from the two-year special project for child                                                                    
protection. That project seeks to move 397 children who have                                                                    
been in state custody for more than 18 months to a permanent                                                                    
home. In approximately 60 percent of those cases, the state                                                                     
will have to go to court to seek termination of parental                                                                        
rights. Because of their complexity, the trials in such                                                                         
cases can take weeks.                                                                                                           
                                                                                                                                
Co-Chair Therriault noted that in order to get children                                                                         
through the system paternal rights may have to be                                                                               
terminated.                                                                                                                     
                                                                                                                                
There being NO OBJECTION, Amendment 5 was adopted.                                                                              
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 6 (copy on                                                                         
file).                                                                                                                          
                                                                                                                                
 Insert a new section:                                                                                                          
(a) The unexpended and unobligated balance on June                                                                              
30,1999 of the general funds appropriated by sec. 31,                                                                           
ch137, SLA 1998, page 26, lines 6-14, as amended by                                                                             
sec. 9(b), ch. 2, SLA 1999 (K-12 Support -                                                                                      
$726,760,700), not to exceed $250,000 is reappropriated                                                                         
to the following departments in for the following                                                                               
purposes in the amounts listed: Department of                                                                                   
Administration -Satellite Interconnection Project                                                                               
Equipment Replacement and Repair $150,000 Department of                                                                         
Administration -Pioneers' Homes Health and Safety                                                                               
Repairs 100,000 < <add to capital lapse section> >                                                                              
(a) The unexpended and unobligated balance on June 30,                                                                          
1999 of the general funds appropriated by sec. 31,                                                                              
ch137, SLA 1998, page 26, lines 6-14, as amended                                                                                
by sec. 9(b), ch. 2, SLA 1999 (K-12 Support -                                                                                   
$726,760,700), remaining after the appropriation                                                                                
in (a) of this section, not to exceed $700,000, is                                                                              
reappropriated to the Department of Transportation                                                                              
and Public Facilities for operating expenses for                                                                                
the fiscal year ending June 30, 2000.                                                                                           
Ms. McConnell explained that the amendment would use lapsing                                                                    
funds to support two projects in the Department of                                                                              
Administration, satellite connection and pioneer home                                                                           
repairs.                                                                                                                        
                                                                                                                                
Representative J. Davies questioned if the amendment                                                                            
appropriated more than is available. Ms. McConnell explained                                                                    
that the total available is $726 million dollars.                                                                               
                                                                                                                                
There being NO OBJECTION, Amendment 6 was adopted.                                                                              
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 7A.                                                                                
                                                                                                                                
Insert a new section:                                                                                                           
Page 31, following line 9:                                                                                                      
Sec. 72. The unexpended and unobligated balance of the                                                                          
appropriation made in sec. 19, 4 ch. 79, SLA 1993, page                                                                         
11, lines 6 -7 (Community/Regional inpatient                                                                                    
facilities. $1,000,000) 5 i$ reappropriated to the                                                                              
Department of Health and Social Services for                                                                                    
construction of a 6 juvenile detention center."                                                                                 
Page 43, line 8 -9 (Department of Health and Social                                                                             
Services, Ketchikan Juvenile Detention 15 Center):                                                                              
Delete "500,000' and Insert " 150,000".                                                                                         
                                                                                                                                
BRIAN BUTCHER, STAFF, REPRESENTATIVE THERRIAULT explained                                                                       
Amendment 7A is a net zero. There being NO OBJECTION,                                                                           
Amendment 7A was adopted.                                                                                                       
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 7 (copy on                                                                         
file).                                                                                                                          
Insert a new section:                                                                                                           
Add on page 33, line 18                                                                                                         
Maintenance, Renewal, Repair, Renewal and                                                                                       
Replacement 800,000 General Funds                                                                                               
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment (8 Page 28,                                                                        
lines 23 through 28: Delete all) He explained that the                                                                          
amendment deletes duplicate language. There being NO                                                                            
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 9 (copy on                                                                         
file).                                                                                                                          
Insert:                                                                                                                         
Page 49, lines 17-20                                                                                                            
Anchorage Area Contingency for 721,000: 65,200 in                                                                               
general funds and 655,800 in federal receipts                                                                                   
Planning/Construction Shortfalls and Road/Intersection                                                                          
Improvements (ED 10-25)                                                                                                         
                                                                                                                                
The reappropriation of the $65,200 contained in the front                                                                       
section on page 26, lines 9-11 of the proposed committee                                                                        
substitute would eliminate the general fund match needed for                                                                    
this project.                                                                                                                   
In the FY'99 capital budget $655,800 of federal receipts and                                                                    
$65,200 of general funds were appropriated to the Anchorage                                                                     
Area Contingency for Planning/Construction                                                                                      
Shortfalls and Road/Intersection Improvements. However,                                                                         
according to the Department of Transportation, the                                                                              
legislature appropriated General Funds to projects without                                                                      
having the necessary federal authorization to match the                                                                         
general fund appropriations.                                                                                                    
In the Senate version of SB 32, $655,800 of federal receipts                                                                    
and $0 general funds was appropriated to the Anchorage Area                                                                     
Contingency for Planning/Construction Shortfalls and                                                                            
Road/Intersection Improvements. This appropriation of                                                                           
federal funds would match the FY'99 appropriation of general                                                                    
fund match for the project since the Senate version of SB 32                                                                    
did not exceed the authorized federal receipt authority.                                                                        
                                                                                                                                
There being NO OBJECTION, Amendment 9 was adopted.                                                                              
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 10                                                                                 
                                                                                                                                
Insert a new section:                                                                                                           
                                                                                                                                
(a) Subject to (b) of this section, the sum of $185,000                                                                         
is appropriated from the Oil/Hazardous Prevention and                                                                           
Response Fund and the sum of $200,000 is appropriated                                                                           
from the Storage Tank Assistance Fund to the Department                                                                         
of Environmental Conservation for costs associated with                                                                         
implementing SB 128.                                                                                                            
                                                                                                                                
(B) The appropriation made by (a) of this section is                                                                            
conditioned on the enactment into law in 1999 of a                                                                              
version of SB 128, relating to the storage tank                                                                                 
assistance fund.                                                                                                                
                                                                                                                                
Ms. McConnell clarified that the Conference Committee on the                                                                    
operating budget did not adopt the fiscal note. Co-Chair                                                                        
Mulder explained that the amendment would be on the new                                                                         
fiscal note on SB 128 when it comes before the House for                                                                        
consideration. There being NO OBJECTION, Amendment 10 was                                                                       
adopted.                                                                                                                        
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 11.                                                                                
                                                                                                                                
 Insert a new section:                                                                                                          
                                                                                                                                
(a) Subject to (b ) of this section, the sum of $55,699                                                                         
is appropriated from general funds to the Alaska Court                                                                          
System for costs associated with implementing the                                                                               
geographical cost of living provisions contained in HB                                                                          
199.                                                                                                                            
                                                                                                                                
(B) The appropriation made by (a) of this section is                                                                            
conditioned on the enactment into law in 1999 of a                                                                              
version of HB 199, relating to compensation for certain                                                                         
state employees.                                                                                                                
                                                                                                                                
Co-Chair Therriault explained that the appropriation is                                                                         
contingent on passage of HB 199.                                                                                                
                                                                                                                                
There being NO OBJECTION, Amendment 11 was adopted.                                                                             
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 12.                                                                                
                                                                                                                                
Insert a new section:                                                                                                           
                                                                                                                                
After the appropriation for $517,500 from general fund                                                                          
program receipts co1lected under AS 43.70.030 made to                                                                           
the Department of Commerce and Economic Development,                                                                            
division of occupational licensing, under a section of                                                                          
CCS HB 50, an amount not to exceed $100,000 is                                                                                  
appropriated from the genera' fund program receipts                                                                             
col1ectcd under AS 43.70.030 to the Department of                                                                               
Commerce and Economic Development, division of trade                                                                            
and development, for programs for the development of                                                                            
international trade for the fiscal year ending June 30,                                                                         
2000."                                                                                                                          
                                                                                                                                
Co-Chair Therriault explained that the amendment makes a                                                                        
$100 thousand dollar adjustment in the Department of                                                                            
Commerce and Economic Development in acknowledgement that                                                                       
the cuts were too deep. Co-Chair Mulder added that part of                                                                      
the Department's base was factored on this appropriation and                                                                    
that it would replace other funds that were not available.                                                                      
                                                                                                                                
Representative J. Davies noted that Occupational Licensing                                                                      
would collect the program receipts.                                                                                             
                                                                                                                                
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF                                                                    
COMMERCE AND ECONOMIC DEVELOPMENT explained that the $100                                                                       
thousand dollar authorization is for excess general fund                                                                        
program receipts from the business licenses.                                                                                    
                                                                                                                                
There being NO OBJECTION, Amendment 12 was adopted.                                                                             
                                                                                                                                
Co-Chair Mulder questioned if the Trade Offices would be                                                                        
open and funded. Mr. Lawson stated that the shortfall is                                                                        
close to $250 thousand dollars. None of the cuts would be                                                                       
reinstated.                                                                                                                     
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 13 (copy on                                                                        
file).                                                                                                                          
                                                                                                                                
 Insert a new section:                                                                                                          
                                                                                                                                
The sum of $3,600,000 is appropriated from the power                                                                            
cost equalization and rural electric capitalization                                                                             
fund (AS 42.45.100) to the Department of Community and                                                                          
Regional Affairs for additional expenses of operating                                                                           
the power cost equalization program for the fiscal year                                                                         
ending June 30. 2000."                                                                                                          
                                                                                                                                
Representative Grussendorf explained that the amendment                                                                         
would allow addition money to be authorized from the fund.                                                                      
Co-Chair Therriault clarified that the amendment is linked                                                                      
to legislation that would be before the Committee on the                                                                        
next day. Total funding available would be brought up to the                                                                    
estimated amount.                                                                                                               
                                                                                                                                
There being NO OBJECTION, Amendment 13 was adopted.                                                                             
                                                                                                                                
Co-Chair Mulder Moved to Rescind the Committee's action in                                                                      
adopting Amendment 12. There being NO OBJECTION, it was so                                                                      
ordered.                                                                                                                        
                                                                                                                                
Co-Chair Mulder MOVED to Amend the Amendment by deleting                                                                        
"$100,000" and inserting "$150,000". There being NO                                                                             
OBJECTION, it was so ordered.  Co-Chair Mulder MOVED to                                                                         
ADOPT Amendment 12 as amended. There being NO OBJECTION, it                                                                     
was so ordered.                                                                                                                 
                                                                                                                                
Representative Moses MOVED to ADOPT Amendment 14. Co-Chair                                                                      
Therriault OBJECTED. Representative Moses discussed                                                                             
Amendment 14.                                                                                                                   
                                                                                                                                
Department of Transportation and Public Facilities                                                                              
Add Iliamna-Nondalton $2,400,000 Highway (ED 40)                                                                                
                                                                                                                                
Completion of the Iliamna-Nondalton Road is scheduled in the                                                                    
STIP for construction next summer. The State has spent                                                                          
approximately $600,000 in design, environmental and                                                                             
engineering work to date. Inclusion of at least half of the                                                                     
needed federal authorization will allow work to continue                                                                        
during the interim. The remaining authorization can then be                                                                     
added next year. The project may experience some delay, but                                                                     
could still be put out to bid in late summer or early fall                                                                      
of 2000. No increase in the general fund match is required                                                                      
by this amendment.                                                                                                              
                                                                                                                                
Representative Moses explained that the appropriation was                                                                       
originally submitted for $4.8 million dollars. The item was                                                                     
taken out in the Senate. The project has been held up for                                                                       
several years.                                                                                                                  
                                                                                                                                
Representative G. Davis questioned where the general fund                                                                       
match would be found. Representative Moses stated that the                                                                      
match would come from community road funds. Co-Chair                                                                            
Therriault noted that it would over authorize the funds.                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Moses, Bunde, Davies, Foster, Grussendorf                                                                             
OPPOSED: Kohring, Williams, Austerman, Davis, Mulder,                                                                           
Therriault                                                                                                                      
                                                                                                                                
The MOTION FAILED(5-6).                                                                                                         
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 15.                                                                           
Amendment 15 would add an additional $150 thousand dollars                                                                      
for Pioneer's Homes.                                                                                                            
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses                                                                                            
OPPOSED: Bunde, Austerman, G. Davis, Foster, Kohring,                                                                           
Williams, Therriault, Mulder                                                                                                    
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative J. Davies Withdrew Amendment 16.                                                                                 
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 17.                                                                           
                                                                                                                                
Insert on page 33, line 29                                                                                                      
Statewide Library $100,000                                                                                                      
                                                                                                                                
Co-Chair Therriault noted that statewide libraries are                                                                          
currently funded at $90 thousand dollars.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses                                                                                            
OPPOSED: Bunde, Austerman, G. Davis, Foster, Kohring,                                                                           
Williams, Therriault, Mulder                                                                                                    
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative J. Davies Amendment 18.                                                                                          
                                                                                                                                
Insert page 72, line 32                                                                                                         
University of Alaska Fairbanks-Tanana Valley College $7                                                                         
million dollars.                                                                                                                
                                                                                                                                
Representative J. Davies noted that the amendment would                                                                         
bring funding for the Hutchinson Career Center project to                                                                       
its full amount. He noted that the $3 million dollars in the                                                                    
budget is the entire capital appropriation for the                                                                              
University of Alaska. There is no money for deferred                                                                            
maintenance or other projects. This is the number one                                                                           
project of the Board of Regents.                                                                                                
                                                                                                                                
In response to a question by Co-Chair Therriault,                                                                               
Representative J. Davies clarified that the increase would                                                                      
be general funds.                                                                                                               
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses, Therriault                                                                                
OPPOSED: Bunde, Austerman, G. Davis, Foster, Kohring,                                                                           
Williams, Mulder                                                                                                                
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 19. Co-                                                                       
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
Insert page 72, line 32                                                                                                         
University of Alaska Fairbanks-Tanana Valley College                                                                            
$3.5 million dollars.                                                                                                           
                                                                                                                                
Representative J. Davies stated that this would bring the                                                                       
appropriation slightly above the Governor's request. The                                                                        
additional $500 thousand dollars would come from AHFC                                                                           
funds.                                                                                                                          
                                                                                                                                
Representative Grussendorf spoke in support of the                                                                              
amendment.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses, Therriault                                                                                
OPPOSED: Bunde, Austerman, G. Davis, Foster, Kohring,                                                                           
Williams, Mulder                                                                                                                
                                                                                                                                
The MOTION FAILED (4-7).                                                                                                        
                                                                                                                                
Representative J. Davies Withdrew Amendment 20 (copy on                                                                         
file).                                                                                                                          
                                                                                                                                
l11iamna: Nondallton Highway 4,845.9 FED 250. GF                                                                                
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 21 amended                                                                    
to $3.4 million dollars. Co-Chair Mulder OBJECTED.                                                                              
                                                                                                                                
 AHFC Low Income Weatherization $3.4 million dollars                                                                            
                                                                                                                                
Representative J. Davies spoke in support of the amendment.                                                                     
He pointed out that it is a statewide program.                                                                                  
                                                                                                                                
Co-Chair Therriault noted that the additional $1 million                                                                        
dollars would be general funds.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses                                                                                            
OPPOSED: Bunde, Austerman, G. Davis, Foster, Kohring,                                                                           
Williams, Therriault, Mulder                                                                                                    
                                                                                                                                
The MOTION FAILED (3-7).                                                                                                        
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 22 with an                                                                    
amended fund source of general funds. Co-Chair Therriault                                                                       
OBJECTED.                                                                                                                       
                                                                                                                                
 Page 43, line 12 Add                                                                                                           
 Alano Club Replacement Project $600,000                                                                                        
                                                                                                                                
Representative J. Davies spoke in support of the amendment.                                                                     
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses                                                                                            
OPPOSED: Bunde, Austerman, G. Davis, Foster, Kohring,                                                                           
Williams, Therriault, Mulder                                                                                                    
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 23 (copy                                                                      
on file). Co-Chair Mulder OBJECTED.                                                                                             
                                                                                                                                
 Page 43, line 12 Add                                                                                                           
 Public Health Nursing WAN/Computer upgrade $100,000                                                                            
                                                                                                                                
Representative J. Davies explained that the computer                                                                            
equipment is aged.                                                                                                              
                                                                                                                                
(Tape Change, HFC 99 - 148, Side 2)                                                                                             
                                                                                                                                
A roll call vote was taken on the motion to adopt Amendment                                                                     
23.                                                                                                                             
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses                                                                                            
OPPOSED: Bunde, Austerman, G. Davis, Foster, Kohring,                                                                           
Williams, Therriault, Mulder                                                                                                    
                                                                                                                                
The MOTION FAILED (3-8).                                                                                                        
                                                                                                                                
Representative Grussendorf MOVED to ADOPT Amendment 24. Co-                                                                     
Chair Therriault OBJECTED.                                                                                                      
                                                                                                                                
 Page 32, line 16 Add                                                                                                           
 Maniilaq Senior Center Repairs $400,000                                                                                        
                                                                                                                                
Representative Grussendorf spoke in support of the                                                                              
amendment. He gave a brief history of the Maniilaq Senior                                                                       
Center.                                                                                                                         
                                                                                                                                
A roll call vote was taken on the motion to adopt Amendment                                                                     
24A.                                                                                                                            
                                                                                                                                
IN FAVOR: Foster, Grussendorf, Kohring, Moses, Davies                                                                           
OPPOSED: Williams, Austerman, Bunde, Davis, Mulder,                                                                             
Therriault                                                                                                                      
                                                                                                                                
The MOTION FAILED (5-6).                                                                                                        
                                                                                                                                
Representative J. Davies MOVED to ADOPT Amendment 24 B. Co-                                                                     
Chair Mulder OBJECTED.                                                                                                          
                                                                                                                                
Section 77, page 48, lines 19-28                                                                                                
Deferred Maintenance and Emergency Repairs 3,900,000                                                                            
Airport Deferred Maintenance $900,000                                                                                           
Emergency and Non-Routine Repairs  $1,000,000                                                                                   
Harbor Deferred Maintenance $1,000,000                                                                                          
Highway Deferred Maintenance $1,000,000                                                                                         
                                                                                                                                
JOE PERKINS, COMMISSIONER, DEPARTMENT OF TRANSPORTATION AND                                                                     
PUBLIC FACILITIES spoke in support of Amendment 24A. He                                                                         
noted that the Department of Transportation and Public                                                                          
Facilities items of deferred maintenance were put in the                                                                        
capital budget in 1988. These items are in direct support of                                                                    
the operating budget. He reviewed cuts to the Department of                                                                     
Transportation and Public Facilities. He stressed that there                                                                    
is still a cut of $2.1 million dollars in their operating                                                                       
budget. Without the amendment the Department of                                                                                 
Transportation and Public Facilities would have a total                                                                         
reduction of $4.1 million dollars.                                                                                              
                                                                                                                                
Representative J. Davies pointed out that half of the                                                                           
funding is in the operating budget on page 48. The amendment                                                                    
restores the appropriation to the original amount.                                                                              
                                                                                                                                
Representative Williams spoke in support of additional                                                                          
funding. He questioned how funds would be allocated.                                                                            
Commissioner Perkins responded that the money has already                                                                       
been allocated. Regions are funded by percentage, but the                                                                       
funding is tied to projects. He emphasized that the work                                                                        
will be done, but that funding would have to come out of                                                                        
operating funds.                                                                                                                
                                                                                                                                
Representative G. Davis noted that the Department of                                                                            
Transportation and Public Facilities' deferred maintenance                                                                      
is not eligible for the deferred maintenance bonding                                                                            
package. He questioned where the state is on its bonding                                                                        
package. Co-Chair Mulder explained that the package                                                                             
specified particular projects. Three of the harbors were                                                                        
funded. He acknowledged the deferred maintenance backlog.                                                                       
                                                                                                                                
Co-Chair Therriault explained that the intent was to be                                                                         
sensitive to the Alaska Housing Finance Corporation's (AHFC)                                                                    
participation in the bonding package. He observed that                                                                          
problems could be caused with the bonding counsel if current                                                                    
facilities are not maintained.                                                                                                  
                                                                                                                                
Representative J. Davies stressed that the items that would                                                                     
be funded are not normally considered in the deferred                                                                           
maintenance package due to their size and nature. These are                                                                     
small ticket items such as brush and culvert clearing.                                                                          
                                                                                                                                
Representative J. Davies MOVED to AMEND Amendment 24B to add                                                                    
$100 thousand dollars to each component for a total                                                                             
increment of $400 thousand dollars. There being NO                                                                              
OBJECTION, Amendment 24B was adopted as amended:                                                                                
                                                                                                                                
Section 77, page 48, lines 19-28                                                                                                
Deferred Maintenance and Emergency Repairs                                                                                      
Airport Deferred Maintenance $550,000                                                                                           
Emergency and Non-Routine Repairs  $600,000                                                                                     
Harbor Deferred Maintenance $600,000                                                                                            
Highway Deferred Maintenance $600,000                                                                                           
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 25 (copy on                                                                        
file). Ms. McConnell explained that the amendment allows                                                                        
lapse balances in the Governor's office to be placed in the                                                                     
Governor's Contingency Fund. There being NO OBJECTION, it                                                                       
was so ordered.                                                                                                                 
                                                                                                                                
Representative Williams MOVED to ADOPT Amendment 26 (copy on                                                                    
file). Co-Chair Mulder OBJECTED. Amendment 26 combines the                                                                      
National Highway System Program (NHS) Construction with the                                                                     
Alaska Marine Highway System NHS and Ferryboat Discretionary                                                                    
projects. Representative Williams explained that the                                                                            
amendment allows funds to be combined for greater                                                                               
flexibility.                                                                                                                    
                                                                                                                                
TOM BRIGHAM, DIRECTOR, DIVISION OF STATEWIDE PLANNING,                                                                          
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES explained                                                                    
that the two appropriations would be combined. There are no                                                                     
changes in projects or the dollar amount. He stressed that                                                                      
there may not be enough state match to cover discretionary                                                                      
funding under TEA-21.                                                                                                           
                                                                                                                                
Representative G. Davis spoke against the amendment.                                                                            
                                                                                                                                
A roll call vote was taken on the motion Amendment 26.                                                                          
                                                                                                                                
IN FAVOR: Davies, Grussendorf, Moses, Foster, Williams                                                                          
OPPOSED: Bunde, Austerman, G. Davis, Kohring, Therriault,                                                                       
Mulder                                                                                                                          
                                                                                                                                
The MOTION FAILED (5-6).                                                                                                        
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 27 (copy on                                                                        
file). Amendment 27 would apply any lapse in the Department                                                                     
of Health and Social Services toward the Medicaid match. The                                                                    
anticipated lapse amount in the appropriations listed in                                                                        
Amendment 27 is estimated at $100 to $200 thousand dollars.                                                                     
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 27A.                                                                               
                                                                                                                                
It is the intent of the Legislature that the progress                                                                           
of this project be reviewed on a periodic basis and                                                                             
that the Departments of Law, D HSS, and Administration                                                                          
provide a full verbal and written briefing to the House                                                                         
Health and Social Services budget subcommittee, which                                                                           
includes the Co Chair of the House Health and Social                                                                            
Services Committee within six months after startup of                                                                           
the project. Thereafter, briefings will be available                                                                            
upon request of the subcommittee.                                                                                               
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Therriault MOVED to ADOPT Amendment 28 (copy on                                                                        
file). Amendment 28 would lower the amount paid to the State                                                                    
Bond Committee for payment of additional principal and                                                                          
interest from $3,400,00 to $2,450,000 dollars. There being                                                                      
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
Representative J. Davies referred to page 11, section 28.                                                                       
Co-Chair Therriault explained the effective date on the                                                                         
Tourism Bill is delayed a year. Section 28 would fund the                                                                       
transition year.                                                                                                                
                                                                                                                                
Co-Chair Mulder MOVED to report HCS CSSB32 (FIN) out of                                                                         
Committee. There being NO OBJECTION, it was so ordered.                                                                         
                                                                                                                                
HCS CSSB 32 (FIN) was REPORTED out of Committee with a "do                                                                      
pass" recommendation.                                                                                                           
ADJOURNMENT                                                                                                                     
                                                                                                                                
The meeting adjourned at 5:46 a.m.                                                                                              
                                                                                                                                
House Finance Committee 18 5/18/99                                                                                              

Document Name Date/Time Subjects