01-12-2004 Senate Journal Page 1885
SENATE JOURNAL
ALASKA STATE LEGISLATURE
TWENTY-THIRD LEGISLATURE -- SECOND SESSION
Juneau, Alaska Monday January 12, 2004
First Day
Pursuant to adjournment the Senate was called to order by President
Therriault at 11:18 a.m.
The roll showed twenty members present.
The prayer was offered by the Chaplain, The Venerable Mark Boesser,
Archdeacon of Southeast Alaska for the Episcopal Church. Senator
Hoffman moved and asked unanimous consent that the prayer be
spread. Without objection, it was so ordered.
One of my favorite New Year's greetings goes:
I said to the man who stood at the Gate of
the Year, Give me a light that I may go out
into the unknown, and he replied, Go out
into the darkness and put your hand into the
hand of God. It will be to you more than
light and safer than a known way.
King George VI spoke these words in his 1940
Christmas message when Britain stood alone in
World War II.
My prayer at the gate of this new legislative session
is that you will go into it with your hand in the hand
of God as you understand Him, and that the coming
days will be filled with blessings for you, for your
families, and for Alaska. Amen.
01-12-2004 Senate Journal Page 1886
Colors
The following members of the Tongass Alaska Girl Scout Flag Corps
presented the colors: Amanda Empson, Kayleigh Gilbert, Ellie Hakari,
Amanda Hoffman, Heather Hoffman, Chevelle Hogan, Bobbie Jo
Koerperich, Jackie Koerperich, Heather Patterson and Summer Ward.
The Tongass Alaska Girl Scout Flag Corps led the Senate in the
Pledge of Allegiance.
President Therriault appointed Senator Stedman and Senator Lincoln
to inform the Governor that the Senate is ready to do business.
President Therriault appointed Senator Bunde and Senator French to
inform the House that the Senate is ready to do business.
Certification
Senator Ben Stevens moved and asked unanimous consent that the
journals for the one hundred nineteenth, one hundred twentieth, and
one hundred twenty-first legislative days of the First Session of the
Twenty-third Alaska Legislature, the Final Supplement, Senate
Supplement No. 4, Senate Supplement No. 5 and House and Senate
Joint Journal Supplement No. 10 be approved as certified by the
Secretary. Without objection, it was so ordered.
Representative Kookesh and Representative Wilson called on the
Senate to advise that the House of Representatives was in session and
ready to do business.
Messages from the Governor
Message dated November 10, 2003 was received, stating:
Dear President Therriault:
Pursuant to my authority under article II, section 4 of the Alaska State
Constitution, I have appointed Bert Stedman to fill the vacancy in the
Alaska State Senate, District A.
01-12-2004 Senate Journal Page 1887
Subject to confirmation by the Senate Majority, Bert Stedman will
hold this office for the remainder of the unexpired term for Senate
District A.
Sincerely Yours,
/s/
Frank H. Murkowski
Governor
Appointment Confirmation
The Senate Majority's response dated November 12, 2003 was
received, stating:
Dear Governor Murkowski,
Members of the Senate Republican Caucus have met with Bert
Stedman, your appointee to fill the Senate seat for District A, and by
signing this letter have cast their vote for his confirmation.
Signing the letter: Senators Therriault, Bunde, Cowdery, Dyson,
Green, Ogan, Seekins, Ben Stevens, Wilken.
Separate letters of support for the confirmation of Bert Stedman, dated
November 10, 2003 and November 14, 2003 respectively, were
received from Senators Wagoner and Gary Stevens.
Lt. Governor Loren Leman administered the Oath of Office to Mr.
Stedman on November 20, 2003.
Oath of Office
I do solemnly swear that I will support and defend the Constitution of
the United States and the Constitution of the State of Alaska, and that I
will faithfully discharge my duties as Senator to the best of my ability.
/s/
Bert K. Stedman
President Therriault officially welcomed Senator Stedman as a
member of the Twenty-third Alaska State Legislature.
01-12-2004 Senate Journal Page 1888
SJR 17
Message dated August 25 and received August 26, 2003 was received,
stating the Governor transmitted the engrossed and enrolled copies of
the following resolution to the Lieutenant Governor's Office for
permanent filing:
SENATE JOINT RESOLUTION NO. 17 Relating to
the Alaska-Yukon Intergovernmental Relations
Accord, to annual legislative exchanges, and to
continuing intergovernmental work on matters of
joint concern and mutual interest.
Legislative Resolve No. 19
SJR 10
Message dated August 25 and received August 26, 2003 was received,
stating the Governor transmitted the engrossed and enrolled copies of
the following resolution to the Lieutenant Governor's Office for
permanent filing:
HOUSE CS FOR SENATE JOINT RESOLUTION
NO. 10(JUD) Relating to the Pledge of Allegiance.
Legislative Resolve No. 20
SJR 5
Message dated August 25 and received August 26, 2003 was received,
stating the Governor transmitted the engrossed and enrolled copies of
the following resolution to the Lieutenant Governor's Office for
permanent filing:
CS FOR SENATE JOINT RESOLUTION NO.
5(STA) Urging the President of the United States and
the Congress to act to ensure that federal agencies do
not retain records relating to lawful purchase or
ownership of firearms gathered through the Brady
Handgun Bill instant check system.
Legislative Resolve No. 21
01-12-2004 Senate Journal Page 1889
SJR 8
Message dated August 25 and received August 26, 2003 was received,
stating the Governor transmitted the engrossed and enrolled copies of
the following resolution to the Lieutenant Governor's Office for
permanent filing:
HOUSE CS FOR SENATE JOINT RESOLUTION
NO. 8(JUD) Relating to the division of the Ninth
Circuit Court of Appeals.
Legislative Resolve No. 35
Letter from Governor Frank H. Murkowski dated January 9 was read,
stating:
Under the provision of article III, section 18 of the Alaska
Constitution, I am requesting the opportunity to address a Joint
Session of the Twenty-third Alaska State Legislature on Tuesday,
January 13, 2004, at 7:00 p.m. for presentation of a combined State of
the State and State of the Budget address.
Introduction of Executive Orders
EO 112
EXECUTIVE ORDER NO. 112
Transferring international trade functions and duties
from the Department of Community and Economic
Development to the Office of the Governor.
was read the first time and referred to the Labor and Commerce
Committee.
The following fiscal information was published today:
Fiscal Note No. 1, zero, Office of the Governor
01-12-2004 Senate Journal Page 1890
Governor's transmittal letter dated January 12:
Dear President Therriault:
Under the authority of article III, section 23, of the Alaska
Constitution, and in accordance with AS 24.08.210, I am submitting
an Executive Order relating to international trade. Under this
Executive Order, responsibility for international trade functions and
duties would be transferred from the Department of Community and
Economic Development to the Office of the Governor. Reassignment
of international trade functions and duties with other Office of the
Governor functions will improve administrative efficiency.
In addition, this Executive Order is an important part of my effort to
increase jobs and revenue from international trade. In the first nine
months of 2003, growth in international trade created an estimated
2,650 new jobs for Alaskans. I want that trend to continue.
Having the Governor's Office handle international trade functions and
duties also lends credibility to the process in the eyes of the state's
trading partners. These nations will know trade functions are being
managed directly under the Governor.
I urge your prompt and favorable action on this measure.
Sincerely yours,
/s/
Frank H. Murkowski
Governor
Communications
The following message dated September 14, 2003 was received,
stating:
01-12-2004 Senate Journal Page 1891
Dear Senator Therriault,
Please accept this letter as my official resignation from the Alaska
th
State Senate effective midnight on Sunday, September 14. It has been
an honor to serve the state for over 19 years and I wish you and my
fellow colleagues the very best in the upcoming session.
Sincerely,
/s/
Robin L. Taylor
Senator, District A
HCR 21
Letter dated September 12, 2003 from Senate President Gene
Therriault was received, stating:
In accordance with the provisions of HOUSE CONCURRENT
RESOLUTION NO. 21 establishing the Alaska Energy Policy Task
Force (Legislative Resolve No. 24), and consulting with the Speaker
of the House, I appoint:
Alaska Energy Policy Task Force
Meera Kohler
Letter dated October 14, 2003 from Senate President Gene Therriault
was received, stating:
The recent resignation of Senator Robin Taylor has created a vacancy
on the Legislative Council that by statute must be filled at this time. In
addition, Senator Fred Dyson has expressed a desire to relinquish his
seat on the Council due to the workload of his other legislative
assignments. As a result, under the authority of AS 24.20, I am
removing Senator Fred Dyson from the Legislative Council and
appointing Senator Gary Stevens and Senator Tom Wagoner to fill the
two vacancies.
Letter dated December 29, 2003 from Chief Justice Alexander O.
Bryner was read, stating pursuant to AS 24.60.130(b)(3), he has
nominated H. Conner Thomas (incumbent) and Ann Rabinowitz to
serve terms as public members on the Select Committee on Legislative
01-12-2004 Senate Journal Page 1892
Ethics.
President Therriault referred the nominations to the Judiciary
Committee.
Standing Committee Reports
HB 209
The following updated fiscal information for CS FOR HOUSE BILL
NO. 209(RLS) "An Act relating to municipal property tax adjustments
for property affected by a disaster" was published today:
Fiscal Note No. 2, zero, Department of Community and Economic
Development
The bill is on today's calendar.
Recess
Senator Ben Stevens moved and asked unanimous consent that the
Senate stand in recess for a Committee on Committees meeting.
Without objection, the Senate recessed at 11:29 am.
After Recess
The Senate reconvened at 11:52 a.m.
Special Committee Reports
Committee on Committees
Report dated January 12 was read, stating:
Mr. President:
Your Committee on Committees has met and submits to the Senate for
its consideration the following changes to the Committee on
Committees reports dated January 21 and February 23, 2003:
01-12-2004 Senate Journal Page 1893
Community and Regional Affairs Committee
Senator Stedman replaces Senator Taylor
Senator Stedman replaces Senator Wagoner as Chair
Senator Wagoner remains on the Committee as Vice Chair
Finance Committee
Senator Dyson replaces Senator Taylor
State Affairs Committee
Senator Stedman replaces Senator Dyson
Transportation Committee
Senator Cowdery is changed from Chair to Cochair
Senator Wagoner is changed from Vice Chair to Cochair
Signing the report: Senator Therriault, Chair; Senators Ben Stevens,
Wilken, Davis, Ellis.
Senator Ben Stevens moved and asked unanimous consent that the
Committee on Committees Report be adopted. Without objection, it
was so ordered.
Introduction and Reference of
Senate Resolutions
SJR 21
SENATE JOINT RESOLUTION NO. 21 BY SENATOR BUNDE,
Proposing an amendment to the Constitution of the
State of Alaska relating to initiative and referendum
petitions.
(Prefile released January 2, 2004)
was read the first time and referred to the State Affairs, Judiciary and
Finance Committees.
01-12-2004 Senate Journal Page 1894
SJR 22
SENATE JOINT RESOLUTION NO. 22 BY SENATOR ELTON,
Relating to supporting the repeal of the Government
Pension Offset and the Windfall Elimination
Provisions from the Social Security Act.
was read the first time and referred to the State Affairs and Health,
Education and Social Services Committees.
Introduction and Reference of Senate Bills
SB 1
SPONSOR SUBSTITUTE FOR SENATE BILL NO. 1 BY
SENATORS WILKEN, Davis, Wagoner, Guess, entitled:
"An Act relating to the base student allocation used in
the formula for state funding of public education; and
providing for an effective date."
was read the first time and referred to the Health, Education and Social
Services and Finance Committees.
SB 237
SENATE BILL NO. 237 BY SENATOR COWDERY, entitled:
"An Act relating to the Alaska Railroad workforce
development scholarship program."
(Prefile released January 2, 2004)
was read the first time and referred to the Labor and Commerce and
Health, Education and Social Services Committees.
SB 238
SENATE BILL NO. 238 BY SENATOR BUNDE, entitled:
"An Act relating to initiative and referendum
petitions; and providing for an effective date."
(Prefile released January 2, 2004)
01-12-2004 Senate Journal Page 1895
was read the first time and referred to the State Affairs, Judiciary, and
Finance Committees.
SB 239
SENATE BILL NO. 239 BY SENATOR DYSON, entitled:
"An Act relating to the required number of days in a
school year."
(Prefile released January 2, 2004)
was read the first time and referred to the Health, Education and Social
Services Committee.
SB 240
SENATE BILL NO. 240 BY SENATOR THERRIAULT, entitled:
"An Act prescribing a definition of 'damages' that a
landowner may claim for injury to or interference
with the owner's use of property by a person entering
upon the land under the state reservation of oil, gas,
mineral, material, or related interests, addressing the
determination of the form, amount, and security of
the surety bond determined by the director of lands to
secure the landowner payment for damages, directing
preparation of notice to the landowner for subsurface
activities on the land, and setting a limitation on
actions against a landowner resulting from entry upon
land under the state reservation of interests."
(Prefile released January 2, 2004)
was read the first time and referred to the Resources, Judiciary, and
Finance Committees.
SB 241
SENATE BILL NO. 241 BY SENATOR THERRIAULT, entitled:
01-12-2004 Senate Journal Page 1896
"An Act making an appropriation to the Alaska
Natural Gas Development Authority; and providing
for an effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the Resources and Finance
Committees.
SB 242
SENATE BILL NO. 242 BY SENATOR COWDERY, entitled:
"An Act relating to gaming."
(Prefile released January 2, 2004)
was read the first time and referred to the Labor and Commerce and
Finance Committees.
SB 243
SENATE BILL NO. 243 BY SENATOR ELTON, entitled:
"An Act relating to immunization of postsecondary
students for meningitis; and providing for an
effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the Health, Education and Social
Services Committee.
SB 244
SENATE BILL NO. 244 BY SENATORS WILKEN, Ben Stevens,
entitled:
"An Act relating to fines for offenses committed
within school zones."
(Prefile released January 2, 2004)
was read the first time and referred to the Judiciary and Finance
Committees.
01-12-2004 Senate Journal Page 1897
SB 245
SENATE BILL NO. 245 BY SENATOR ELTON, entitled:
"An Act relating to retirement contributions and
benefits under the public employees' retirement
system of certain harbor officers."
(Prefile released January 2, 2004)
was read the first time and referred to the State Affairs and Finance
Committees.
SB 246
SENATE BILL NO. 246 BY SENATORS LINCOLN, Davis, entitled:
"An Act relating to the commission of an offense or a
juvenile delinquency act involving the victim's race,
sex, color, creed, physical or mental disability, sexual
orientation, ancestry, or national origin; relating to
sentencing, informal adjustment, and adjudication for
those offenses and acts; relating to a diversity
tolerance program for certain juvenile delinquency
acts; relating to a civil cause of action for certain acts
involving discriminatory harassment; and providing
for an effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the State Affairs and Judiciary
Committees.
SB 247
SENATE BILL NO. 247 BY SENATOR WAGONER, entitled:
"An Act amending the definition of 'project' in the
Act establishing the Alaska Natural Gas
Development Authority; and providing for an
effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the Resources and Finance
Committees.
01-12-2004 Senate Journal Page 1898
SB 248
SENATE BILL NO. 248 BY SENATORS GUESS, Elton, Davis,
entitled:
"An Act relating to secondary school competency
examinations, graduation requirements, and
diplomas; and providing for an effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the Health, Education and Social
Services and Finance Committees.
SB 249
SENATE BILL NO. 249 BY SENATOR WILKEN, entitled:
"An Act relating to a provisional driver's license and
to issuance of a driver's license; and providing for an
effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the State Affairs and Finance
Committees.
SB 250
SENATE BILL NO. 250 BY SENATOR GARY STEVENS, entitled:
"An Act establishing a moratorium on the issuance of
state shallow natural gas leases in the vicinity of
Kachemak Bay, and directing the commissioner of
natural resources to reacquire shallow natural gas
leases on the Kenai Peninsula within the moratorium
area; and providing for an effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the Community and Regional
Affairs, Resources, and Finance Committees.
SB 251
SENATE BILL NO. 251 BY SENATORS FRENCH, Davis, Elton,
entitled:
01-12-2004 Senate Journal Page 1899
"An Act making an appropriation for longevity bonus
grants; and providing for an effective date."
(Prefile released January 2, 2004)
was read the first time and referred to the Health, Education and Social
Services and Finance Committees.
SB 252
SENATE BILL NO. 252 BY SENATOR FRENCH, entitled:
"An Act relating to state budget information that
must be included on permanent fund dividend
application forms; and providing for an effective
date."
(Prefile released January 2, 2004)
was read the first time and referred to the State Affairs and Finance
Committees.
SB 253
SENATE BILL NO. 253 BY SENATOR THERRIAULT, entitled:
"An Act exempting contracts of the Alaska Natural
Gas Development Authority from the State
Procurement Code; and providing for an effective
date."
(Prefile released January 2, 2004)
was read the first time and referred to the State Affairs and Finance
Committees.
SB 254
SENATE BILL NO. 254 BY SENATOR THERRIAULT, entitled:
"An Act relating to the levy and collection of an
assessment on certain tourism-related and recreation-
related goods and services, and repealing the levy of
excise taxes of certain passenger and recreation
vehicles; and providing for an effective date."
(Prefile released January 9, 2004)
01-12-2004 Senate Journal Page 1900
was read the first time and referred to the Labor and Commerce and
Finance Committees.
SB 255
SENATE BILL NO. 255 BY SENATOR THERRIAULT, entitled:
"An Act relating to traffic preemption devices."
(Prefile released January 9, 2004)
was read the first time and referred to the State Affairs, Judiciary, and
Finance Committees.
SB 256
SENATE BILL NO. 256 BY THE SENATE RULES COMMITTEE
BY REQUEST OF THE GOVERNOR, entitled:
"An Act making appropriations for the operating and
loan program expenses of state government, for
certain programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date."
was read the first time and referred to the Finance Committee.
Governor's transmittal letter dated January 12:
Dear President Therriault:
The operating budget bill delivered today contains my proposal for the
2005 fiscal year.
The Fiscal Year 2005 operating budget marks the administration's
second opportunity to demonstrate its commitment to fiscal discipline.
Our budget plan is straightforward: control spending, make
government smaller and more effective, stabilize revenues over the
short-term, and increase revenues over the long-term.
01-12-2004 Senate Journal Page 1901
The proposed budget is built on one principle: that we must take
responsibility today for Alaska's tomorrow. Jobs, hope, and
accountability are the reasons for the administration's work to align
state spending in a way that promotes economic development and jobs
in Alaska and provides hope for the future to our younger generations.
The administration set two parameters within which it built the
proposed Fiscal Year 2005 budget: spend less than this year and use
no more than $400 million from the state's reserve account. This later
limit is important because over the last 13 years the state has spent
more than $5 billion from this reserve in order to prop up spending at a
level the state otherwise could not afford. When we took office the
rate of withdrawals from the reserve account was projected to deplete
the reserve by February 2006.
Today there is less than $2 billion in the reserve. It would be
irresponsible to continue spending-as-usual and run the reserve
account down to zero. Currently 84 percent of state revenue comes
from oil and gas. The reserve was set up to serve as a buffer against
swings in oil prices. Without such a cushion, dramatic revenue drops
would mean dramatic mid-year reductions in state-supported services.
To prolong the life of the reserve, the administration is prudently using
it so it will last longer and serve as a "bridge" to the day when
increased revenue is realized from natural resource development.
Because of our fiscal discipline, the reserve account is extended to
January 2008. But it also is important that the reserve maintain a
balance of at least $1 billion to serve as a cushion against oil price
fluctuations. Based on our spending and revenue proposals, the reserve
is expected to drop to $1 billion in July 2006.
Spending more than we can afford has created unrealistic expectations
of what government can and should provide and has created services
that can't be supported over the long-term unless new revenues are
found. This uncertainty has discouraged private business from making
serious investments in Alaska.
Until new state revenues are generated, we ask all Alaskans to
recognize that we must share the responsibilities-and make
sacrifices-to put the state on course.
01-12-2004 Senate Journal Page 1902
In developing the Fiscal Year 2005 proposed budget, every department
engaged in a process of self-examination in which it got down to the
basics:
· Why does the department and program exist-what is its
mission?
· Does each program effectively contribute to achieving the
department's mission?
· What results are programs supposed to be getting-and are
they?
· How efficient is the program in using public dollars to get
these results?
This process, called "Missions and Measures," was initiated by the
Legislature several years ago. My administration has built on the
Legislature's work and expanded it into a management tool. We
recognize that these frameworks not only communicate to Alaskans
the "bang for the buck" that the state receives, but they also provide
program managers with feedback on a program's effectiveness, where
changes may be needed to improve services, and just as importantly,
which programs should be stopped because they are not effective. In
addition to reporting these results to the Legislature as part of the
annual budget process, we also will report to Alaskans throughout the
year via the State of Alaska's home page on the World Wide Web.
The spending proposed in Fiscal Year 2005 also reflects policy
priorities and increases the state's investment in areas of traditional
responsibility-protecting the public's safety and education:
· Enforcing the Laws: Twenty Troopers, six criminal
prosecutors, and six public defenders are added to improve
the safety of communities throughout the state;
· Protecting the Vulnerable: Twenty social workers and nine
civil attorneys, including attorneys for Child in Need of Aid,
sexual and violent assault, juvenile delinquency, and human
services cases, are added to increase the state's protection of
those who are most vulnerable; and
01-12-2004 Senate Journal Page 1903
· K-12 foundation formula is funded at the higher per student
funding level approved by the Legislature last session. In
addition, local school districts are reimbursed for school
construction debt and the pupil transportation program is
funded at the level required by law.
The top priority for this administration is to develop Alaska's natural
resources in order to generate state revenue and create jobs to support
the quality of life that we want not only for those who are in Alaska
today, but also for those that will be here in the future. Economic
growth is the best way to balance a budget. If the economy is growing
and expanding thanks to policies that encourage job creation and
innovation, Alaskans will be able to better provide for their families
and communities. The administration has built a budget that
encourages private investment.
But the receipt of revenues from resource development takes time - it
took eight years for the state treasury to get revenues from Prudhoe
Bay. While we diligently work to develop these resources, we must
have "bridge financing" to assist in getting us to when these new
revenues will start to flow into the treasury. Our reserve account
serves as this "bridge" and must be prudently used between now and
then.
Investment in our resource departments is necessary as we expand our
development efforts. The proposed budget adds key staff to the
Department of Natural Resources Oil and Gas Division to aggressively
work on the gas line, an expedited Alaska Peninsula oil and gas lease
sale, opening of National Petroleum Reserve-Alaska, and further
streamlining of our permit process.
The Department of Environmental Conservation also is proposing to
assume primacy for issuance of Clean Water Act permits from the
federal government. Not only will this mean Alaskans are making
decisions instead of outside bureaucrats, but we will be able to have
more responsive decision-making that advances resource development
and protects the environment.
01-12-2004 Senate Journal Page 1904
In terms of spending level, the proposed operating budget is about the
same level as the current year. To maintain flat spending, a total of
$145 million in reductions had to be taken in order to cover
unavoidable increases, which include:
· Retirement system costs of an additional $29 plus another $5
million in unemployment insurance and workers'
compensation increases;
· Medicaid, foster care, and other formula-driven program
increases that went up $62 million due to higher medical care
costs and increased caseloads; and
· State debt service obligations that increased $42 million, of
which $13 million is to reimburse school districts for locally
approved school construction (bringing the program's total
cost to $79 million), and another increase of $27 million to
pay for school construction and transportation bonds approved
by voters in 2002.
In spite of reductions to cover these increases, the departments are
making every effort to maintain the current level of direct services.
This is not to say there will not be changes in how services are
delivered to Alaskans-but no roads will close in winter nor will any
state parks close.
To manage reductions, departments were asked to identify how to
achieve administrative-type savings. Human resource functions have
been consolidated in the Department of Administration instead of
being spread out across 15 departments. Not only will this result in a
savings of $640,000, there are other efficiencies including consistent
management administration of personnel law, labor contracts, and
policies.
The Department of Corrections is consolidating administrative
responsibilities to save over $760,000 while the Department of Health
and Social Services has reorganized and continues to reduce layers of
mid-management. The Department of Administration has led an
enterprise-wide information technology (IT) review that resulted in
creation of IT standards and coordination of technology within and
01-12-2004 Senate Journal Page 1905
between departments. The standards will translate into at least a five
percent savings in computer purchases. Improved IT coordination will
mean the results of technology investments are shared between
programs and departments, thereby avoiding future costs. A new
decision-making board is tasked with making IT investment decisions
from an enterprise-perspective and a group of technology
professionals has been tasked with offering enterprise-wide advice.
In terms of the number of state employees, the proposed budget
deletes 409 full-time positions, of which 69 percent (283) currently are
vacant. Elimination of vacant positions represents an effort to have the
budget better reflect the actual level of resources (both dollars and
staffing) necessary to deliver program services, which is important in a
cost/benefit analysis.
In terms of revenues, the state is enjoying higher oil prices. But in
spite of this, the administration's overall proposed spending for Fiscal
Year 2005 requires an additional $75 million (this is above the $400
million from the state's reserve account.) To protect prudent use of the
state's reserve, the administration will be introducing several measures
to generate additional revenues.
Sincerely yours,
/s/
Frank H. Murkowski
Governor
SB 257
SENATE BILL NO. 257 BY THE SENATE RULES COMMITTEE
BY REQUEST OF THE GOVERNOR, entitled:
"An Act making capital appropriations and
supplemental appropriations; capitalizing funds;
making other appropriations; making appropriations
under art. IX, sec. 17(c), Constitution of the State of
Alaska; and providing for an effective date."
was read the first time and referred to the Finance Committee.
01-12-2004 Senate Journal Page 1906
Governor's transmittal letter dated January 12:
Dear President Therriault:
The capital budget bill delivered today contains my proposal for the
2005 fiscal year. Overall, the capital budget totals $1.4 billion of
which $1.3 billion is federal funds.
As you know, a capital budget is how state government meets its most
basic responsibilities to citizens, such as safe transportation
infrastructure and protecting the public's health. For Fiscal Year 2005,
the capital budget proposes to spend $977 million in federal
transportation funds for road, highway, ferry, and airport projects
throughout Alaska.
An area of major investment in protecting the public's health is water
and sewer projects. A total of $89 million is proposed for water,
sewer, and solid waste projects. Of this amount, $62 million is federal
funding. Grants for municipal projects total $8 million and $79 million
is proposed for village safe water projects.
In comparing the proposed capital budget to the current year, the
overall proposed total spending is $124 million higher. Spending of
general funds has decreased $45 million, while spending of other state
funds is down $102 million. Federal funds have increased $270
million.
In addition to maximizing federal funds, the administration is making
every effort to identify ways to leverage limited state funds. Using the
bond capacity of state corporations is one way to stretch state dollars,
continue to meet traditional responsibilities, and at the same time
prudently save the state's reserves while we work on new revenue
from resource development.
To this end, the Fiscal Year 2005 budget relies on $100 million in
corporation issued bond proceeds. The Alaska Housing Finance
Corporation will use its general obligation debt capacity to sell $25
million in bonds that primarily will be used to finance water and sewer
projects.
01-12-2004 Senate Journal Page 1907
Another $75 million will come from the sale of bonds by the Alaska
Student Loan Corporation (ASLC) as part of a multi-year plan by
which ASLC will repay the state for its initial investment of $300
million in student loan programs. The proposal reflects its desire to
assist the state in bridging the current fiscal gap. This proposal will
have no impact on student loan programs. Additional bond issues are
planned for 2005 and 2006. ASLC plans to repay the state up to $260
million by the end of FY 2007.
I look forward to working closely with this Legislature to jointly craft
a capital budget that efficiently provides Alaska residents essential
state services at a cost that the state can afford over the long-term.
Sincerely yours,
/s/
Frank H. Murkowski
Governor
SB 258
SENATE BILL NO. 258 BY THE SENATE RULES COMMITTEE
BY REQUEST OF THE GOVERNOR, entitled:
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing
for an effective date."
was read the first time and referred to the Finance Committee.
In accordance with AS 37.14.003(b) a report of the differences
between the Governor's proposed budget and the recommendations of
the Alaska Mental Health Trust Authority was transmitted.
Governor's transmittal letter dated January 12:
Dear President Therriault:
I am today transmitting a separate FY2005 appropriations bill for the
state's comprehensive mental health program. As required by statute,
it includes both operating and capital appropriations and is
01-12-2004 Senate Journal Page 1908
accompanied by a report outlining the differences between my budget
and the recommendations of the Alaska Mental Health Trust
Authority.
The proposed mental health budget represents a cooperative effort
between state agencies, the Trustees, and Trust Authority staff.
Coupled with the resources that have been appropriated in recent
years, these productive working relationships have made a positive
difference for Alaska's mental health beneficiaries. Given the state's
overall financial position, we are not in a position for the state to
augment many of the Trust's requests that required state general funds.
These difficult decisions are part of our work to take responsibility
today for Alaska's tomorrow.
I look forward to working with the Legislature this session.
Sincerely yours,
/s/
Frank H. Murkowski
Governor
SB 259
SENATE BILL NO. 259 BY THE SENATE RULES COMMITTEE
BY REQUEST OF THE GOVERNOR, entitled:
"An Act establishing the SeniorCare program and
relating to that program; and providing for an
effective date."
was read the first time and referred to the Health, Education and Social
Services and Finance Committees.
The following fiscal information was published today:
Fiscal Note No. 1, Department of Health and Social Services
Fiscal Note No. 2, Department of Health and Social Services
Fiscal Note No. 3, Department of Health and Social Services
Fiscal Note No. 4, Department of Health and Social Services
Fiscal Note No. 5, Department of Health and Social Services
Governor's transmittal letter dated January 9:
01-12-2004 Senate Journal Page 1909
Dear President Therriault:
Under the authority of article III, section 18 of the Alaska
Constitution, I am transmitting a bill establishing the "SeniorCare"
program.
Prescription drug prices have spiraled upwards for years, placing a
heavy financial burden on Alaska's seniors. This past year my
administration has initiated a number of reforms to our Medicaid
program that will help assure that seniors receive the safest and most
clinically appropriate prescription drugs they need at a reasonable cost.
Among these reforms is the development of a preferred drug list,
requiring prior authorization for certain drugs, and expanding case
management of high-cost clients; often persons with chronic
conditions that require a large number of medications.
This fall, Congress approved a comprehensive package of Medicare
prescription drug subsidies. However, these subsidies are not fully
effective until 2006. This creates a gap for seniors who need
immediate assistance. SeniorCare is an innovative program, which
bridges that gap for Alaska's seniors. The Senior Assistance Program,
which I established this year to help Alaska's neediest seniors, has
been brought under SeniorCare.
The SeniorCare program would provide two levels of subsidies, based
on income. An individual who has an annual income of up to 135
percent of the federal poverty level for Alaska, and who is not already
receiving a prescription drug benefit through Medicaid, may choose to
receive up to $1,600 a year in prescription drug subsidies or to receive
a monthly cash payment of $120. An individual who has an annual
income of more than 135 percent but no more than 150 percent of the
federal poverty level for Alaska may receive up to $1,000 a year in
prescription drug subsidies, but would not be eligible for the
alternative cash payment. In addition, under federal law separate from
this bill, the temporary Medicare prescription drug subsidy would add
an extra $600 per year of prescription drug coverage to the first group.
Eligibility for the program would be limited to Alaska's most needy
seniors. The program would not pay for prescription drug subsidies for
seniors who already receive coverage under Medicaid or certain
01-12-2004 Senate Journal Page 1910
similar prescription drug subsidy programs. Eligibility for the program
would be further defined by regulations developed by the Department
of Health and Social Services under authority granted in this bill. Until
those regulations are in effect, the eligibility requirements that govern
the Alaska Senior Assistance Program (established by regulation in
2003) would govern the SeniorCare program. This would ensure that
the SeniorCare program could go into operation without delay.
Prescription drug subsidies under the program would cover almost all
prescription drugs, insulin and insulin syringes, and would require
that, if available, cheaper and therapeutically equivalent generic drugs
must be used unless a medical professional indicates that a brand name
is medically necessary. This requirement would ensure that the
subsidies would cover the maximum amount possible of each
recipient's prescription drug costs.
The SeniorCare program is designed to help Alaska's seniors meet
their financial and prescription drug needs. When the new Medicare
prescription drug subsidy administered by the federal government
begins, SeniorCare would be discontinued.
I urge your prompt and favorable action on this measure.
Sincerely yours,
/s/
Frank H. Murkowski
Governor
SB 260
SENATE BILL NO. 260 BY SENATOR BEN STEVENS, entitled:
"An Act relating to metropolitan planning
organizations and to establishment of a metropolitan
planning organization for the Anchorage
metropolitan area; and providing for an effective
date."
was read the first time and referred to the Community and Regional
Affairs and Transportation Committees.
01-12-2004 Senate Journal Page 1911
Consideration of the Calendar
Third Reading of House Bills
HB 209
CS FOR HOUSE BILL NO. 209(RLS) "An Act relating to municipal
property tax adjustments for property affected by a disaster" was read
the third time.
Senator Cowdery, Rules Chair, moved and asked unanimous consent
that CS FOR HOUSE BILL NO. 209(RLS) be returned to the Rules
Committee. Without objection, the bill was returned to the Rules
Committee.
Unfinished Business
Senator Wilken moved and asked unanimous consent to be excused
from the Senate, not subject to a call, from afternoon plane time,
January 15, to evening plane time, January 19 and from afternoon
plane time, January 23, to evening plane time, January 25. Without
objection, Senator Wilken was excused.
Announcements
Announcements are at the end of the journal.
Adjournment
Senator Ben Stevens moved and asked unanimous consent that the
Senate stand in adjournment until 6:45 p.m., January 13, 2004.
Without objection, the Senate adjourned at 12:05 p.m.
Kirsten Waid
Secretary of the Senate
January 2004
01-12-2004 Senate Journal Page 1912
Announcements
Americans with Disabilities Act Notice - Persons with disabilities who require
special accommodation or alternative communication formats to access
committee meetings may contact the appropriate committee office or the
Legislative Information Office in their community. Reasonable advance
notice is needed to accommodate the request. For further information, call the
ADA Coordinator at 465-3854 Voice/465-4980 TDD.
STANDING COMMITTEES
+ indicates teleconference
= indicates bill previously heard/scheduled
COMMUNITY & REGIONAL AFFAIRS
Jan 12 Monday Fahrenkamp 203 1:30 PM
No Meeting Scheduled
Jan 14 Wednesday Fahrenkamp 203 1:30 PM
No Meeting Scheduled
Jan 16 Friday Fahrenkamp 203 1:30 PM
No Meeting Scheduled
----------------------------------------
FINANCE
Jan 12 Monday Senate Finance 532 9:00 AM
No Meeting Scheduled
Jan 13 Tuesday Senate Finance 532 9:00 AM
No Meeting Scheduled
Jan 14 Wednesday Senate Finance 532 9:00 AM
No Meeting Scheduled
Jan 15 Thursday Senate Finance 532 9:00 AM
No Meeting Scheduled
Jan 16 Friday Senate Finance 532 9:00 AM
No Meeting Scheduled
----------------------------------------
01-12-2004 Senate Journal Page 1913
HEALTH, EDUCATION & SOCIAL SERVICES
Jan 14 Wednesday Butrovich 205 1:30 PM
+ SB 259 SENIORCARE
----------------------------------------
JUDICIARY
Jan 12 Monday Beltz 211 1:00 PM
No Meeting Scheduled
Jan 14 Wednesday Beltz 211 1:00 PM
No Meeting Scheduled
Jan 16 Friday Beltz 211 1:00 PM
No Meeting Scheduled
----------------------------------------
LABOR & COMMERCE
Jan 13 Tuesday Beltz 211 1:30 PM
No Meeting Scheduled
Jan 15 Thursday Beltz 211 1:30 PM
No Meeting Scheduled
----------------------------------------
RESOURCES
Jan 12 Monday Butrovich 205 3:30 PM
No Meeting Scheduled
Jan 14 Wednesday Butrovich 205 3:30 PM
No Meeting Scheduled
Jan 16 Friday Butrovich 205 3:30 PM
No Meeting Scheduled
----------------------------------------
01-12-2004 Senate Journal Page 1914
STATE AFFAIRS
Jan 13 Tuesday Beltz 211 3:30 PM
No Meeting Scheduled
Jan 15 Thursday Beltz 211 3:30 PM
No Meeting Scheduled
----------------------------------------
TRANSPORTATION
Jan 13 Tuesday Butrovich 205 1:30 PM
No Meeting Scheduled
Jan 15 Thursday Butrovich 205 1:30 PM
No Meeting Scheduled
Jan 20 Tuesday Butrovich 205 1:30 PM
Overview of Knik Arm Bridge and Toll
Authority
----------------------------------------
JOINT COMMITTEES
LEGISLATIVE BUDGET & AUDIT
Jan 15 Thursday House Finance 519 11:00 AM
Legislative Budget and Audit
----------------------------------------
SALMON INDUSTRY TASK FORCE
Jan 18 Sunday House Finance 519 1:00 PM
Final Discussion of Subcommittee
Recommendations to the Task Force
Jan 19 Monday House Finance 519 8:00 AM
Final Discussion of Subcommittee
Recommendations to the Task Force
----------------------------------------
01-12-2004 Senate Journal Page 1915
OTHER MEETINGS
ENERGY POLICY TASK FORCE
Jan 13 Tuesday Anchorage 10:00 AM
Location: AIDEA/AEA Board Room
813 W. Northern Lights Blvd., 3rd Floor
----------------------------------------
JOINT SESSION
Jan 13 Tuesday House Chamber 7:00 PM
Joint Session for the limited purpose of
the Governor's combined State of the
State and State of the Budget Address
