Legislature(2009 - 2010)

2010-07-09 House Journal

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2010-07-09                     House Journal                      Page 2607
HB 302                                                                                                                        
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                                                           
2:51 p.m., May 12, 2010, with a manifest error memorandum (page                                                                 
2598):                                                                                                                          
                                                                                                                                
    CONFERENCE CS FOR HOUSE BILL NO. 302                                                                                        
         "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."                                                                              
                                                                                                                                
The following letter dated May 11, 2010, from Senator Hoffman,                                                                  
Conference Committee Chair, and Representative Hawker, Vice Chair,                                                              
to Dr. William Doolittle, MD, Chair, Alaska Mental Health Trust                                                                 
Authority, was also transmitted to the Office of the Governor:                                                                  
                                                                                                                                
"Dear Dr. Doolittle:                                                                                                            
                                                                                                                                
Pursuant to the requirements of AS 37.14.005(c), this letter and the                                                            
enclosed reports describe how the funding contained in HB 302, the                                                              
FY11 Mental Health budget, differs from the FY11 Mental Health                                                                  
Trust Authority's funding recommendations for the state's integrated                                                            
comprehensive mental health program. While the statute requires                                                                 
reporting only on general fund expenditures, information regarding                                                              
expenditures of Authority receipts is also included.                                                                            
                                                                                                                                

2010-07-09                     House Journal                      Page 2608
Operating Appropriations                                                                                                      
                                                                                                                                
For mental health operating program funding, the Agency Summary                                                                 
report compares the FY11 Mental Health Trust recommendations for                                                                
general funds which include the FY11 adjusted base plus increment                                                               
requests to the Governor's request and to appropriations.  The FY11                                                             
adjusted base includes FY10 base funding plus salary adjustments that                                                           
were known when the Governor submitted his request. In addition to                                                              
the $170.2 million adjusted base, the Authority recommended                                                                     
appropriating an additional $15.3 million, bringing the FY11 total                                                              
recommendation to $185.6 million (column 1).  The Governor                                                                      
requested $185.7 million (column 2), and the legislature appropriated                                                           
$185.2 million (column 3).                                                                                                      
                                                                                                                                
The $185.2 million appropriated includes $1.3 million for bargaining                                                            
agreements approved after the Governor's request (column 4). The                                                                
figure also reflects $59,700 in reductions to the travel line in various                                                        
Mental Health components (column 5). These travel reductions are                                                                
part of reductions that affected the allocations in most agencies. The                                                          
Agency Summary report subtracts these broad-based items from the                                                                
Conference Committee budget, giving a budget of $184.0 million, in                                                              
order to highlight differences other than bargaining agreements and                                                             
travel (columns 6 and 7).                                                                                                       
                                                                                                                                
                                                                                                                                
The enclosed transaction comparison provides details regarding                                                                  
modifications to Authority recommendations.  Note that the report                                                               
shows only differences from Authority recommendations:  "MH Rec"                                                                
in the second column indicates that a transaction recommended by the                                                            
Authority was denied or modified; "MH adjCC" indicates that a                                                                   
transaction not recommended by the Authority was incorporated in the                                                            
bill. Highlights include:                                                                                                       
                                                                                                                                
    1. Health and Social Services programs:                                                                                     
       ·  A reduction of $3.6 million in Behavioral Health                                                                      
       ·  A reduction of $760,000 in Children's Services                                                                        
       ·  A reduction of $2.8 million in Senior and Disabilities                                                                
           Services                                                                                                             
       ·  An increase of $7.0 million in Medicaid Services                                                                      
                                                                                                                                

2010-07-09                     House Journal                      Page 2609
         The net change for the agency is a reduction of $219,800 from                                                          
         the Authority's request (excluding transfers to a new                                                                  
           Therapeutic Courts Appropriation in the Court System).                                                              
                                                                                                                                
    2. Denial of $584,100 in grants to the University of Alaska.                                                                
         3. Consolidation of various agency efforts associated with                                                            
         therapeutic courts (transferring a total of $874,500 GF/MH)                                                           
     into a new appropriation in the Court System.                                                                              
                                                                                                                                
For the two funds controlled by the Authority, Mental Health Trust                                                              
Authority Authorized Receipts (MHTAAR) and Mental Health Trust                                                                  
Admin (MHT Admin), legislative appropriations are consistent with                                                               
the Authority's original recommendation except for a net increase of                                                            
$177,000 in MHTAAR funding as follows:                                                                                          
        1. $100,000 for a sexual assault coordinator position in the                                                           
         Office of the Governor;                                                                                                
    2. $100,000 for the traumatic brain injury program and                                                                      
         3. $23,000 for a denied increment request for Mental Health                                                           
         land administration costs.                                                                                             
                                                                                                                                
The appropriations of additional MHTAAR funds were made with the                                                                
consent of the Authority's Executive Director.                                                                                  
                                                                                                                                
Capital Appropriations                                                                                                        
                                                                                                                                
The Authority recommended a $15.0 million capital budget.  The                                                                  
Governor's request totaled $15.2 million. The legislature approved the                                                          
Governor's request as submitted.                                                                                                
                                                                                                                                
As shown in the enclosed Project Detail report, the Governor                                                                    
modified the Authority's recommendations as follows:                                                                            
                                                                                                                                
       · Reduced Health and Social Services projects by a net of $3.2                                                          
         million, including elimination of funding for MH Boards-                                                               
         Assistive Technology, MH Boards-Essential Program                                                                      
         Equipment Match, MH Deferred Maintenance ADA                                                                           
         Improvement Grants to Service Providers and Beneficiaries,                                                             
         and the MH Disability Justice-Construction of Bethel                                                                   
         Sobering Center. The Governor added $500,000 for deferred                                                              
         maintenance and accessibility improvements.                                                                            
          · Increased the AHFC Homeless Assistance project by $3.35                                                            
         million                                                                                                                

2010-07-09                     House Journal                      Page 2610
Future Reporting                                                                                                              
                                                                                                                                
We appreciate the good working relationship between the Authority                                                               
and the legislature.  In FY11, the Authority continued to use the                                                               
legislature's budget system to record its recommendations.  The                                                                 
Legislative Finance Division has a few suggestions that will help meet                                                          
our common goals of creating an efficient method for the Authority to                                                           
submit an integrated, comprehensive plan to the legislature and of                                                              
using the legislature's budget system to comply with the statutory                                                              
reporting requirements. We look forward to continuing to work with                                                              
the Authority to accomplish these budget submissions and reporting                                                              
efficiencies before the FY12 budget process begins.                                                                             
                                                                                                                                
If you have questions, please contact Gary Zepp of the Legislative                                                              
Finance Division at 465-5410.                                                                                                   
                                                                                                                                
Sincerely,                                                                                                                      
/s/                                                                                                                             
Senator Lyman Hoffman                                                                                                           
Chair                                                                                                                           
/s/                                                                                                                             
Representative Mike Hawker                                                                                                      
Vice Chair                                                                                                                      
                                                                                                                                
                                                                                                                                
Enclosures                                                                                                                      
    Agency Summary                                                                                                              
    Transaction Comparison                                                                                                      
    Capital Project Detail"                                                                                                     
                                                                                                                                
                                                                                                                                
Enclosed reports were transmitted to the Office of the Governor, and                                                            
they are on file in the Chief Clerk's office.