Legislature(2007 - 2008)
2008-05-30 House Journal
Full Journal pdf2008-05-30 House Journal Page 3020 HB 312 The following was engrossed and enrolled, signed by the Speaker and Chief Clerk, President and Secretary of the Senate, and the engrossed and enrolled copies were transmitted to the Office of the Governor at 3:58 p.m., May 1, 2008: CONFERENCE CS FOR HOUSE BILL NO. 312 "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." Also transmitted was a copy of the following letter dated April 29, 2008, to Dr. William Doolittle, MD, Chair, Alaska Mental Health Trust Authority: "Dear Dr. Doolittle: AS 37.14.005(c) requires the mental health bill (HB 312) to be accompanied by a report explaining the differences between the appropriations in the bill and the Mental Health Trust Authority's recommendations for expenditures from the general fund for the state's integrated comprehensive mental health program. This letter (with enclosed reports) meets that requirement. 2008-05-30 House Journal Page 3021 Thanks to the hard work the Authority put into presenting its recommendations as transactions in the state's budget system, the process of identifying differences between recommendations and appropriations is far more efficient and accurate than in the past. For reporting purposes, we have added salary adjustments associated with bargaining agreements to the Authority's recommendations. Although the adjustments could not be included in the Authority's recommendations because they were not known until after the recommendations were approved, we consider the $2.4 million in adjustments to be a technical issue without policy implications. The $29,200 difference in the enclosed report on salary adjustments is attributable to Labor Trades and Crafts increases that were approved too late to include in the mental health bill (they were added to the capital bill). Operating Appropriations This letter and enclosures describe changes made by the Governor and the legislature to the FY09 Mental Health Trust Authority's budget recommendations for operating expenditures. Recommendations affect four fund sources: 1. Administrative funds (MHT Admin), which cover Authority operations; 2. Authority receipts (MHTAAR), which the Authority provides to state agencies at the option of the Authority; 3. Alcohol and other drug abuse treatment funds (A/D T&P), which are classified in the mental health fund group; and 4. General funds for programs that support Trust beneficiaries (GF/MH). Although providing information on the first three of the above four fund sources is not a legal requirement, the Authority expressed interest in receiving reports showing differences all mental health funds. The Authority's recommendations for administrative and alcohol/drug abuse funds were accepted as submitted. The legislature authorized expenditure of $1.6 million more in Trust Receipts than recommended by the Authority and appropriated $11.9 million more in GF/MH than recommended by the Authority. 2008-05-30 House Journal Page 3022 Detailed changes appear in the attached component and transaction reports. Allocation reports (one for each fund source in the mental health group and one for the group as a whole) can be used to identify where changes occurred; the transaction detail report provides more specific information. Highlights include Increases · ProShare replacement of federal receipts with GF: $9.3 million; · FMAP replacement of federal receipts with GF: $5.3 million; · Health care provider rate increases $4.2 million; · Health care program $3.3 million; · Medicaid growth $3.0 million; · SCHIP (Denali KidCare) $900,000 Reductions The Legislature did not accept (and the Governor did not request) the Authority's recommendations for the following programs: · $2,080,000 for Behavioral Health Provider grant increases; · $2,000,000 for Enhanced Behavioral Health Services. Capital Appropriations General Fund Mental Health Funds The Governor's request was $2.1 million less than the Authority's $6.7 million Mental Health capital request. The legislature reduced the capital budget by an additional $2.5 million. The major difference- $4.6 million-is attributable to items that were not included in the Governor's budget and not considered by the legislature. Those projects include the Family and Community Elder Supports (FACES) $2.0 million, Deferred maintenance and ADA improvements grants $2.0 million, and Detox, Enhanced Detox and Residential Treatment service in Anchorage (Clithroe) $500,000. The Essential Program Equipment to Service Providers capital request was reduced by $100,000 in the capital budget. All Funds (MHTAAR, GF/MH, AHFC Dividends) 2008-05-30 House Journal Page 3023 The Authority recommended a $12.4 million capital budget. The Governor increased the capital budget to $17.6 million, and the legislature reduced the request to $13.6 million. Details are in the attached capital project report. Future Reporting FY09 marks the first year the Authority used the budget system to record its recommendations. Our goal is not only to use the budget system to comply with statutory reporting requirements, but also to provide status reports as the budget moves through the legislature. There is a great deal of room for improvement; we had some difficulties with the transactions entered by the Authority, which precluded reporting as the bill moved through the budget process. The situation meant the legislature may not have been aware of Authority recommendations that were not forwarded by the Governor; recommendations not considered by the legislature cannot be funded. We appreciate the good working relationship that has been established between the Authority and the legislature, and believe this relationship will build as we assist the Authority to use the budget system as efficiently as possible to submit an integrated, comprehensive plan. If you have any questions, please contact Gary Zepp of the Legislative Finance Division at 465-5410. Sincerely, /s/ Senator Lyman Hoffman Chair /s/ Representative Mike Chenault Vice Chair Enclosure" Enclosed reports were transmitted to the Office of the Governor, and they are on file in the Chief Clerk's office.