HOUSE COMMITTEE ON GENERAL GOVERNMENT

February 25, 2003 Hearing Room D

8:30 AM Tapes 22 - 23

MEMBERS PRESENT: Rep. Jerry Krummel, Chair

Rep. Donna Nelson, Vice-Chair

Rep. Floyd Prozanski, Vice-Chair

Rep. Brad Avakian

Rep. John Mabrey

MEMBER EXCUSED: Rep. Derrick Kitts

Rep. Kelley Wirth

STAFF PRESENT: Patrick Brennan, Committee Administrator

Jeana Harrington, Committee Assistant

MEASURES HEARD: Work Session - Introduction of Committee Measures

HB 2482 – Public Hearing

HB 2530 – Public Hearing

HB 2531 – Public Hearing

HB 2636 – Public Hearing

These minutes are in compliance with Senate and House Rules. Only text enclosed in quotation marks reports a speaker’s exact words. For complete contents, please refer to the tapes.

TAPE/#	Speaker	Comments
TAPE 22, A
002	Chair Krummel	Calls meeting to order at 8:39 AM. Opens work session on committee measures. Explains the draft.
WORK SESSION ON COMMITTEE MEASURES
019	Rep. Prozanski	Comments on the draft.
029	Chair Krummel	Responds concerning the size of the bill and the purpose of the draft (EXHIBIT A).
031	Chair Krummel	MOTION: Moves LC 1345 BE INTRODUCED as a committee bill.
032		VOTE: 5-0 EXCUSED: 2 - Kitts, Wirth
	Chair Krummel	Hearing no objection, declares the motion CARRIED.
033	Chair Krummel	Opens public hearing on HB 2484.
HB 2482 PUBLIC HEARING
049	Rep. Donna Nelson	House District 24. Testifies in favor of HB 2482 (EXHIBIT B). Explains the bill with regard to zero-based budget. Comments on a previous bill concerning the issue.
105	Chair Krummel	Refers to the wording of the bill concerning current-service level budgeting.
117	Rep. Nelson	Replies with the intention of the bill. States that the bill needs to be amended. Mentions the different forms of budgeting states use.
190	Chair Krummel	Close public hearing on HB 2482. Opens public hearing on HB 2530.
HB 2530 PUBLIC HEARING
195	Rep. Donna Nelson	House District 24. Testifies in favor of HB 2530 (EXHIBIT C).
246	Chair Krummel	Outlines the current budgeting process. Asks what operational effects the bill would have on the legislative calendar.
273	Rep. Nelson	Responds regarding audits. Explains different ways of evaluating budgets.
351	Chair Krummel	Points out the openness of all committee meetings to the public.
353	Rep. Nelson	Clarifies.
373	Chair Krummel	Comments on annual budgeting. Asks if a yearly session is something Rep. Nelson sees as feasible.
380	Rep. Nelson	States she would not advocate a yearly session presently.
384	Chair Krummel	Closes public hearing on HB 2530. Opens public hearing on HB 2531.
HB 2531 PUBLIC HEARING
TAPE 23, A
003	Rep. Donna Nelson	House District 24. Testifies in favor of HB 2531 (EXHIBIT D).
044	Chair Krummel	Points out the in the bill there is no definition of ‘overhead’.
050	Rep. Nelson	Responds that the legislature should define the ‘overhead’ of agencies. Provides examples of agency spending.
100	Chair Krummel	Provides example of the Department of Environmental Quality (DEQ) tests of cars in metro area. Inquire how oversight is determined.
116	Rep. Nelson	Affirms.
119	Chair Krummel	Changes example to explain oversight.
122	Rep. Nelson	Explains that it is considered what is essential for operation. Offers mandates as an example.
160	Chair Krummel	Closes public hearing on HB 2530. Opens public hearing on HB 2636.
HB 2636 PUBLIC HEARING
173	Patrick Brennan	Committee Administrator. Reads Staff Measure Summary. Notes the subsequent referrals to Ways and Means.
185	Mary Botkin	Association of Federal, State, County, and Municipal Employees (AFSCME). Recommends that the language of HB 2636 be changed so that remaining funds remain in the agency.
200	Rep. Prozanski	Asks if there is a program in place where employees can receive reward for ideas that save money.
204	Rich Peppers	State Employees International Union (SEIU). Explains the program Rep. Prozanski is referring to. Provides his view of agency spending practices. Acknowledges the rush to spend down budgets at the end of the biennium.
246	Botkin	Explains how AFSCME worked with legislators on budget matters using the Department of Corrections (DOC) as an example.
282	Rep. Avakian	Refers to the bill and poses question.
289	Peppers	States the belief that Ways and Means is working on the issues. Agrees there should be an incentive to control spending.
299	Rep. Avakian	Asks if the reward really exists without a provision in the bill.
301	Peppers	Notes it may not exist without a provision.
308	Botkin	Explains that employees have no real input at the agency level as to budget control.
343	Peppers	Adds that there is an incentive system already in place although it does not allow for allocation of savings fund.
357	Botkin	Comments.
370	Rep. Kropf	House District 17. Explains his reasons for creating the bill.
TAPE 22, B
003	Rep. Kropf	Continues. Agrees with Ms. Botkin’s comments on spending. Acknowledges that the bill is incomplete. Details the intent of the bill is to promote efficiency. Explains the division of funds set out by the bill.
060	Chair Krummel	Asks who Rep. Kropf is collaborating with on the amendments.
063	Rep. Kropf	States he would welcome the opportunity to work with the public.
070	Rep. Nelson	Inquires if Rep. Kropf believes performance based initiatives are needed.
074	Rep. Kropf	Affirms.
076	Rep. Nelson	Poses question regarding program funding.
085	Rep. Kropf	Notes the possible abuses of the program. Adds that there should be language to address such issues.
097	Rep. Nelson	Acknowledges the importance of rewarding employees. Mentions there should be consideration as to how rewards are to be determined. Questions the bonus to management provided.
120	Rep. Kropf	Responds regarding management issues and the implementation of the plan.
143	Rep. Nelson	Notes the funds found in various agencies during special session. Voices concern that monies are needed in other areas.
158	Rep. Kropf	Acknowledges certain financial circumstances would necessitate government guidance. Encourages the input of fellow legislators.
188	Chair Krummel	Asks if the bill would violate the current contract between bargaining units.
194	Peppers	Responds he believes the bill does not currently have a conflict. Submits the agencies are open to the ideas set out by the bill. Provides examples of area the legislature should govern concerning savings.
241	Botkin	Suggests that a provision could be developed regarding agency employees involvement in funding.
291	Rep. Nelson	Wonders how the bill would affect Public Employee Retirement System (PERS).
297	Peppers	States that he is open to working with the committee on the bill.
311	Chair Krummel	Invites Ms. Botkin and Mr. Peppers to work with the sponsor on the bill. Speaks to the principle of the bill. Closes public hearing on HB 2636. Adjourns meeting at 9:57 AM.

EXHIBIT SUMMARY

A – LC Draft 1345, Staff, 428 pp

B – HB 2482, prepared testimony, Rep. Donna Nelson, 5 pp

C – HB 2530, prepared testimony, Rep. Donna Nelson, 1 p

D – HB 2531, prepared testimony, Rep. Donna Nelson, 1 p