HB 75: "An Act making appropriations for the operating and loan program expenses of state government, for certain programs, and to capitalize funds; and providing for an effective date."
00HOUSE BILL NO. 75 01 "An Act making appropriations for the operating and loan program expenses 02 of state government, for certain programs, and to capitalize funds; and 03 providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. LONG RANGE BUDGET PLAN. (a) The fiscal year 1998 state operating 06 budget is presented in the context of the following findings about Alaska's long-range 07 financial situation: 08 (1) the members of the Long Range Financial Planning Commission (LRFPC), 09 who were jointly appointed by the governor and the legislature in 1995, conducted hearings 10 across the state, raising the awareness of and educating Alaskans about the fiscal gap; 11 (2) the state has spent more than it has collected in annually recurring revenue 12 during seven of the past 10 fiscal years; 13 (3) petroleum revenue currently accounts for almost 80 percent of unrestricted 14 general fund dollars and Alaska's petroleum production is projected to decline by one-third
01 during the next 10 years; 02 (4) the state's fiscal gap between revenue and expenditures can vary widely 03 from original estimates to final amounts due to the volatility of oil revenue; 04 (5) the fiscal gap is projected to grow significantly if the state does not 05 effectively address annual recurring revenue and expenditures in the context of a long-range 06 plan; 07 (6) without changes in projected revenue and expenditures, current reserves in 08 the constitutional budget reserve fund may be depleted within the next several years; 09 (7) the LRFPC and other fiscal policy forums around the state have identified 10 various fiscal tools that can be employed in a long-range plan, including expenditure 11 reductions, revenue increases, use of reserves, and use of permanent fund earnings; 12 (8) in these fiscal policy forums, the conclusion has been that no single tool 13 is sufficient to address the fiscal gap and that several tools must be used in combination in 14 any viable plan to bring about state economic stability; 15 (9) the Alaska permanent fund is a cornerstone of the state's economic future 16 and should continue to grow as well as to provide reliable dividends to the general public. 17 (b) The legislature and governor intend to implement a 10-year plan to address the 18 state's budget gap that will 19 (1) put the state on firm fiscal ground for at least the next 10 years and strike 20 a balance between current public service needs and protection of the permanent fund for future 21 generations; 22 (2) close the fiscal gap between annually recurring revenue and expenditures 23 by the end of fiscal year 2001; 24 (3) use a combination of fiscal tools such as budget cuts, new development 25 revenue, income tax, other taxes, and use of reserves and permanent fund earnings; 26 (4) disclose and review all funding sources, not just the general fund; 27 (5) fully inflation-proof the principal of the permanent fund; 28 (6) maintain permanent fund dividends; 29 (7) consider future use of permanent fund earnings only upon a vote of the 30 people; 31 (8) cut the general fund budget not less than $100,000,000 from the fiscal year
01 1996 amount, acknowledging the additional impact of absorbing inflation; 02 (9) use the Alaska Department of Labor's population and inflation estimates 03 and Department of Education's school enrollment projections; 04 (10) fully fund the equivalent of the current K-12 foundation formula, 05 including increases for enrollment; 06 (11) recommend streamlining measures and legislation each year as part of the 07 budget process; 08 (12) endorse a six-year capital plan that addresses schools, transportation, water 09 and sewer, prisons and other basic needs with a stable level of funding from year to year; 10 (13) plan for adequate maintenance of facilities and other infrastructure; 11 (14) use Department of Revenue mid-case projections for existing revenue 12 sources such as oil and gas revenue and corporate taxes; 13 (15) include new development revenue beginning in fiscal year 1997; 14 (16) diversify state revenue to reduce dependence on volatile oil and gas 15 revenue through measures such as increased user fees, income tax, and increased excise and 16 fuel taxes; 17 (17) maintain a balance of at least $1,500,000,000 in the constitutional budget 18 reserve fund until the budget gap is eliminated and then conduct a policy review of the state's 19 reserve level to ensure that an appropriate amount of liquid reserves is available to deal with 20 revenue volatility and emergencies; 21 (18) include projections for new oil and gas settlements of $1.1 billion to be 22 deposited in the constitutional budget reserve fund in fiscal years 1997 through 2000; 23 (19) manage the constitutional budget fund reserve fund with a goal of 24 achieving at least a 6.96 percent return in fiscal year 1998; 25 (20) fix the constitutional budget reserve fund's sweep and payback provisions 26 through constitutional amendment; and 27 (21) develop a cash management and reserves policy to be implemented by 28 statute in 1998. 29 (c) The legislature and governor intend to work together and with other parties and 30 the general public to implement this long-range financial plan and meet the needs of Alaskans. 31 (d) The legislature and governor urge all Alaskans to become knowledgeable about
01 Alaska's fiscal situation and to support actions necessary to close the fiscal gap. 02 (e) All members of the Long Range Financial Planning Commission are thanked for 03 their hard work and efforts to address the state's fiscal future and assist the legislature and 04 governor in addressing the economic challenges we face as a state. 05 * Sec. 2. ALASKA CLEAN WATER FUND. The sum of $8,815,400 is appropriated to 06 the Alaska clean water fund (AS 46.03.032) for the Alaska clean water loan program from the 07 following sources: 08 General fund $1,469,200 09 Federal receipts 7,346,200 10 * Sec. 3. ALASKA HOUSING FINANCE CORPORATION. (a) The sum of $50,000,000 11 from the available unrestricted cash in the general account of the Alaska housing finance 12 revolving fund (AS 18.56.082) is anticipated to be transferred to the general fund during the 13 fiscal year 1998 by the direction of the Alaska Housing Finance Corporation board. 14 (b) All unrestricted mortgage loan interest payments, mortgage loan commitment fees, 15 and all other unrestricted receipts, received by or accrued to the Alaska Housing Finance 16 Corporation during fiscal year 1998, and all income earned on assets of the corporation during 17 that period, are appropriated to the Alaska Housing Finance Corporation to hold as corporate 18 receipts for the purposes described in AS 18.56. The corporation shall allocate its corporate 19 receipts among the Alaska housing finance revolving fund (AS 18.56.082), housing assistance 20 loan fund (AS 18.56.420), and senior housing revolving fund (AS 18.56.710) in accordance 21 with procedures adopted by the board of directors. 22 (c) The following amounts are appropriated to the Alaska Housing Finance 23 Corporation (AHFC) from the sources indicated and for the following purposes: 24 PURPOSE AMOUNT SOURCE 25 Housing loan programs $350,000,000 Corporate receipts 26 not subsidized by AHFC 27 Housing loan programs 50,000,000 Corporate receipts 28 and projects subsidized derived from arbitrage 29 by AHFC earnings 30 * Sec. 4. ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY. The 31 sum of $16,000,000 from the available unrestricted cash in the Alaska Industrial Development
01 and Export Authority revolving fund (AS 44.88.060) is anticipated to be transferred to the 02 general fund as directed by the Alaska Industrial Development and Export Authority Board. 03 The transferred money shall be deposited in the general fund when received during fiscal year 04 1998. 05 * Sec. 5. ALASKA PERMANENT FUND CORPORATION. (a) The amount authorized 06 for transfer by the Alaska Permanent Fund Corporation under AS 37.13.145(b) is appropriated 07 from the earnings reserve account (AS 37.13.145) to the dividend fund (AS 43.23.045(a)) for 08 the payment of permanent fund dividends and administrative and associated costs. 09 (b) After money is transferred to the dividend fund under (a) of this section, the amount 10 calculated under AS 37.13.145 to offset the effect of inflation on the principal of the Alaska 11 permanent fund is appropriated from the earnings reserve account (AS 37.13.145) to the 12 principal of the Alaska permanent fund. 13 (c) The amount required to be deposited under AS 37.13.010(a)(1) and (2) during fiscal 14 year 1998 is appropriated to the principal of the Alaska permanent fund in satisfaction of that 15 requirement. 16 (d) The interest earned during fiscal year 1998 on revenue from the sources set out in 17 AS 37.13.010 while the revenue is held in trust, escrow, or otherwise before receipt by the 18 state is appropriated to the principal of the Alaska permanent fund. 19 * Sec. 6. ALASKA PUBLIC UTILITIES COMMISSION. The unexpended and 20 unobligated balance on June 30, 1997 of the Alaska Public Utilities Commission program 21 receipts account for regulatory cost charges under AS 42.05.254 and AS 42.06.286 for fiscal 22 year 1997 is appropriated to the Alaska Public Utilities Commission for fiscal year 1998 23 expenditures. 24 * Sec. 7. ALASKA SEAFOOD MARKETING INSTITUTE. An amount equal to the 25 unexpended and unobligated balance on June 30, 1997 of the fiscal year 1997 general fund 26 receipts from the salmon marketing tax (AS 43.76.110), from the fiscal year 1997 receipts of 27 the seafood marketing assessment (AS 16.51.120), and from the fisheries resource landing tax 28 (AS 43.77.050), is appropriated from the general fund to the Alaska Seafood Marketing 29 Institute for marketing Alaska seafood products during fiscal year 1998. 30 * Sec. 8. BUDGET PROPOSALS REQUIRING LEGISLATION. If bills to implement 31 income limits for longevity bonus eligibility and to reduce geographic pay differentials for
01 certain state employees are passed by the First Regular Session of the Twentieth Alaska State 02 Legislature and are enacted into law, the corresponding operating budget appropriations for 03 the fiscal year ending June 30, 1998, in other sections of this Act are reduced by the amounts 04 listed below. 05 APPROPRIATION GENERAL 06 ITEMS 07 FUND 08 Longevity Bonus Grants ($6,000,000) ($6,000,000) 09 Old Age Assistance - ALB 10 hold harmless (2,000,000) (2,000,000) 11 Geographic Pay Differential (100,000) (100,000) 12 * Sec. 9. CONSTITUTIONAL BUDGET RESERVE FUND. (a) Amounts equal to the 13 deposits in the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska) for 14 fiscal year 1997 that were made by operation of art. IX, sec. 17(d) to repay appropriations 15 from the budget reserve fund are appropriated from the budget reserve fund to the funds and 16 accounts from which they were transferred. 17 (b) If the unrestricted state revenue available for appropriation in fiscal year 1998 is 18 insufficient to cover the general fund appropriations made for fiscal year 1998, the amount 19 necessary to balance revenue and general fund appropriations is appropriated to the general 20 fund from the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska). 21 (c) The appropriations in (a) and (b) of this section are made under art. IX, sec. 17(c), 22 Constitution of the State of Alaska. 23 * Sec. 10. DISASTER RELIEF AND FIRE SUPPRESSION. (a) Federal receipts received 24 for disaster relief are appropriated to the disaster relief fund (AS 26.23.300). 25 (b) It is the intent of the legislature that funding necessary to meet the disaster relief 26 responsibilities of the Department of Military and Veterans' Affairs and the fire suppression 27 responsibilities of the Department of Natural Resources will continue to be made available 28 through the disaster declaration process. If fiscal year 1998 disaster relief and fire suppression 29 costs are not adequately funded by this Act, the Department of Military and Veterans' Affairs 30 or the Department of Natural Resources, respectively, shall submit a supplemental 31 appropriation request during the 1998 legislative session.
01 * Sec. 11. EXXON VALDEZ OIL SPILL TRUSTEE COUNCIL. The operating 02 appropriations to implement Trustee Council restoration projects for the federal fiscal years 03 1997 and 1998, which were set out in revised program 1870055, lapse into the funds from 04 which they were appropriated on June 30, 1998. 05 * Sec. 12. FEDERAL AND OTHER PROGRAM RECEIPTS. (a) Federal or other 06 program receipts as defined in AS 37.05.146 that exceed the amounts appropriated by this Act 07 are appropriated conditioned upon compliance with the program review provisions of 08 AS 37.07.080(h). 09 (b) If federal or other program receipts as defined in AS 37.05.146 exceed the estimates 10 appropriated by this Act, the appropriations from state funds for the affected program may be 11 reduced by the excess if the reductions are consistent with applicable federal statutes. 12 (c) Except as provided in (d) of this section, if federal or other program receipts as 13 defined in AS 37.05.146 fall short of the estimates appropriated by this Act, the affected 14 appropriation is from the general fund. 15 (d) If the federal receipts under 42 U.S.C. 1397-1397f (Title XX of the Social Security 16 Act) fall short of the estimate, the amount of the shortfall, not to exceed $5,410,800 is 17 appropriated from the general fund. 18 * Sec. 13. FISH AND GAME ENFORCEMENT. (a) To increase enforcement of the fish 19 and game laws of the state, the amount deposited in the general fund during the fiscal year 20 ending June 30, 1998, from criminal fines, penalties, and forfeitures imposed for violation of 21 AS 16 and its implementing regulations and from the sale of forfeited property or alternative 22 damages collected under AS 16.05.195 is appropriated to the fish and game fund 23 (AS 16.05.100). 24 (b) Appropriations totaling the estimated amount of the deposits described in (a) of this 25 section are made in sec. 32 of this Act to the Departments of Public Safety and Law for 26 increased enforcement, investigation, and prosecution of state fish and game laws. If the 27 receipts appropriated to the fish and game fund (AS 16.05.100) from the sources described in 28 (a) of this section during fiscal year 1998 fall short of the estimates appropriated by this Act, 29 each department's appropriation set out in sec. 32 of this Act is reduced proportionately. 30 * Sec. 14. FOUR DAM POOL TRANSFER FUND. The amount available in the four dam 31 pool transfer fund (AS 42.45.050) during fiscal year 1998 is appropriated to the following
01 funds in the following percentages for the purposes set out in AS 42.45.050: 02 Power cost equalization and rural electric 40 percent 03 capitalization fund (AS 42.45.100) 04 Southeast energy fund (AS 42.45.040) 40 percent 05 Power project fund (AS 42.45.010) 20 percent 06 * Sec. 15. INFORMATION SERVICES FUND. The sum of $55,000 is appropriated to 07 the information services fund (AS 44.21.045) for the Department of Administration, division 08 of information services programs, from designated program receipts. 09 * Sec. 16. INSURANCE AND BOND CLAIMS. (a) The amount necessary to fund the 10 uses of the state insurance catastrophe reserve account described in AS 37.05.289(a) is 11 appropriated from that account to the Department of Administration. 12 (b) Amounts received in settlement of insurance claims for losses and recovery for losses 13 are appropriated from the general fund to the state insurance catastrophe reserve account 14 established by AS 37.05.289. 15 (c) Amounts received in settlement of claims against bonds guaranteeing the reclamation 16 of state land are appropriated from the general fund to the agency secured by the bond for the 17 purpose covered by the bond. 18 (d) The appropriations made by (b) and (c) of this section are contingent upon compliance 19 with the program review provisions of AS 37.07.080(h). 20 * Sec. 17. MARINE HIGHWAY SYSTEM FUND. The sum of $28,624,100 is 21 appropriated from the general fund to the Alaska marine highway system fund (AS 19.65.060). 22 * Sec. 18. MOTOR FUEL TAX. The following estimated amounts from the unreserved 23 special accounts in the general fund are included within the general fund amounts appropriated 24 by this Act: 25 Highway fuel tax account (AS 43.40.010(g)) $21,300,000 26 Aviation fuel tax account (AS 43.40.010(e)) 8,200,000 27 * Sec. 19. OCCUPATIONAL LICENSING. The unexpended and unobligated balance on 28 June 30, 1997, of the Department of Commerce and Economic Development, division of 29 occupational licensing, general fund program receipts from occupational licensing fees under 30 AS 08.01.065 is appropriated to the division of occupational licensing for operating costs for 31 the fiscal year ending June 30, 1998.
01 * Sec. 20. OIL AND HAZARDOUS SUBSTANCE RELEASE PREVENTION 02 ACCOUNT. (a) The following amounts are appropriated to the oil and hazardous substance 03 release prevention account (AS 46.08.010(a)(1)) in the oil and hazardous substance release 04 prevention and response fund (AS 46.08.010) from the sources indicated: 05 (1) the balance of the oil and hazardous substance release prevention mitigation 06 account (AS 46.08.020(b)) in the general fund on July 1, 1997, not otherwise appropriated by 07 this Act; 08 (2) the amount collected for the fiscal year ending June 30, 1997, estimated to be 09 $13,300,000, from the surcharge levied under AS 43.55.300. 10 * Sec. 21. OIL AND HAZARDOUS SUBSTANCE RELEASE RESPONSE ACCOUNT. 11 The following amounts are appropriated to the oil and hazardous substance release response 12 account (AS 46.08.010(a)(2)) in the oil and hazardous substance release prevention and 13 response fund (AS 46.08.010) from the following sources: 14 (1) the balance of the oil and hazardous substance release response mitigation 15 account (AS 46.08.025(b)) in the general fund on July 1, 1997, not otherwise appropriated by 16 this Act; 17 (2) the amount collected for the fiscal year ending June 30, 1997, from the 18 surcharge levied under AS 43.55.201. 19 * Sec. 22. RETAINED FEES. The amount retained to compensate the collector or trustee 20 of fees, licenses, taxes, or other money belonging to the state during the fiscal year ending 21 June 30, 1998, is appropriated for that purpose to the agency authorized by law to generate 22 the revenue. 23 * Sec. 23. SAFETY ADVISORY COUNCIL. The amount appropriated for the 1997 24 annual governor's safety conference (sec. 21, ch. 117, SLA 1996), plus the fiscal year 1997 25 program receipts of the Alaska Safety Advisory Council (AS 18.60.830), less the amount 26 expended or obligated for the 1997 annual governor's safety conference, is appropriated from 27 the designated program receipts to the Alaska Safety Advisory Council for costs of the 1998 28 annual governor's safety conference. 29 * Sec. 24. SALMON ENHANCEMENT TAX. The salmon enhancement tax collected 30 under AS 43.76.010 - 43.76.030 in calendar year 1996 and deposited in the general fund under 31 AS 43.76.025(c) is appropriated from the general fund to the Department of Commerce and
01 Economic Development for payment in fiscal year 1998 to qualified regional associations 02 operating within a region designated under AS 16.10.375. 03 * Sec. 25. SHARED TAXES AND FEES. The amount necessary to refund to local 04 governments their share of taxes and fees collected in the listed fiscal years under the 05 following programs is appropriated to the Department of Revenue from the general fund for 06 payment in fiscal year 1998: 07 REVENUE SOURCE FISCAL YEAR COLLECTED 08 fisheries taxes (AS 43.75) 1997 09 fishery resource landing tax (AS 43.77) 1997 10 amusement and gaming taxes (AS 43.35) 1998 11 aviation fuel tax (AS 43.40.010) 1998 12 electric and telephone cooperative tax (AS 10.25.570) 1998 13 liquor license fee (AS 04.11) 1998 14 * Sec. 26. STATE DEBT AND OTHER OBLIGATIONS. (a) The amount required to pay 15 interest on revenue anticipation notes issued by the commissioner of revenue under AS 43.08 16 is appropriated from the general fund to the Department of Revenue for payment of the 17 interest on those notes. 18 (b) The amount required to be paid by the state for principal and interest on all issued and 19 outstanding state-guaranteed bonds is appropriated from the general fund to the state bond 20 committee for payment of principal and interest on those bonds. 21 (c) The sum of $80,970,700 is appropriated from the general fund to the Alaska debt 22 retirement fund (AS 37.15.011). 23 (d) The sum of $10,342,390 is appropriated from the Alaska debt retirement fund 24 (AS 37.15.011) to the state bond committee for lease payments to the City of Seward, City 25 of Kenai, Department of Natural Resources, and the Alaska Court System. 26 (e) The sum of $14,251,658 is appropriated from the Alaska debt retirement fund 27 (AS 37.15.011) to the state bond committee for payment of debt service and trustee fees on 28 state general obligation bonds. 29 (f) The sum of $5,837,534 is appropriated from the International Airports Revenue Fund 30 (AS 37.15.430) to the state bond committee for payment of debt service and trustee fees on 31 outstanding international airports revenue bonds.
01 (g) The sum of $62,288,400 is appropriated from the Alaska debt retirement fund 02 (AS 37.15.011) to the Department of Education for state aid for costs of school construction 03 under AS 14.11.100. 04 * Sec. 27. STATE TRAINING AND EMPLOYMENT PROGRAM. The lapsing balance 05 of the employment assistance and training program account (AS 23.15.625) on June 30, 1997, 06 is appropriated to the unemployment compensation fund (AS 23.20.130). 07 * Sec. 28. STATUTORY BUDGET RESERVE FUND. If the unrestricted state revenue 08 available for appropriation in fiscal year 1998 is insufficient to cover the general fund 09 appropriations made for fiscal year 1998, the amount necessary to balance revenue and general 10 fund appropriations is appropriated to the general fund from the budget reserve fund 11 (AS 37.05.540). 12 * Sec. 29. STORAGE TANK ASSISTANCE FUND. (a) The fiscal year 1998 general 13 fund receipts of the tank registration fee program under AS 46.03.385 are appropriated to the 14 storage tank assistance fund (AS 46.03.410). 15 (b) The sum of $2,910,600 is appropriated from the oil and hazardous substance release 16 prevention account (AS 46.08.010(a)(1)) to the storage tank assistance fund (AS 46.03.410) 17 for the fiscal year ending June 30, 1998. 18 * Sec. 30. STUDENT LOAN PROGRAM. The amount from student loan borrowers of 19 the Alaska Commission on Postsecondary Education that is assessed for loan origination fees 20 for the fiscal year ending June 30, 1998, is appropriated to the origination fee account 21 (AS 14.43.120(u)) within the student loan fund of the Alaska Student Loan Corporation for 22 the purposes specified in AS 14.43.120(u). 23 * Sec. 31. NONLAPSE OF APPROPRIATIONS. The appropriations made by secs. 2, 3, 24 10, 13, 14, 15, 16(b), 17, 20, 21, 27, 29(a) and 30 of this Act are for the capitalization of 25 funds and do not lapse under AS 37.25.010. 26 (SECTION 32 OF THIS ACT BEGINS ON PAGE 14)