Legislature(2017 - 2018)SENATE FINANCE 532
04/03/2017 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB57 | |
| Department of Administration Amendments | |
| Department of Commerce, Community and Economic Development Amendments | |
| Department of Education and Early Development Amendments | |
| Department of Health and Social Services Amendments | |
| Department of Natural Resources Amendments | |
| Department of Public Safety Amendments | |
| Department of Transportation and Public Facilities Amendments | |
| Executive Branch-wide Appropriations Amendments | |
| Legislature | |
| Permanent Fund Dividend | |
| Fund Transfers | |
| HB59 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 57 | TELECONFERENCED | |
| += | HB 59 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 57(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; and making supplemental appropriations
and reappropriations."
1:34:15 PM
Co-Chair MacKinnon MOVED to ADOPT the proposed committee
substitute for CSHB 57(FIN) am(brf sup maj fld)(efd fld),
Work Draft 30-GH1855\M (Wallace, 3/31/17).
Co-Chair Hoffman OBJECTED for DISCUSSION.
1:34:33 PM
JAMES ARMSTRONG, STAFF, SENATOR LYMAN HOFFMAN, explained
the committee substitute. He referred to a document from
the Legislative Finance Division (LFD), "Summary of Changes
Senate Committee Substitute 2 and Senate Committee
Substitute 3" (copy on file). The document outlined the
changes to the technical CS and the current CS.
Co-Chair Hoffman stated that he would pause for questions.
1:35:58 PM
Mr. Armstrong discussed the document:
Section 1 (Numbers) of Operating and Mental Health
Bill Department of Administration
1. Public Broadcasting Commission restores $46.7
UGF, to the Governor's requested level.
2. Public Broadcasting - Radio restores $2,036.6
UGF, to the Governor's requested level.
3. Public Broadcasting - T.V. restores $633.3
UGF, to the Governor's requested level.
4. Satellite Infrastructure restores $160.0 UGF,
to the Governor's requested level.
Department of Corrections
1. Office of the Commissioner adds $175.0
Statutory Designated Program Receipt authority to
receive reimbursement from Community Resource for
Justice for a Diversion Planner as a onetime
increment.
Department of Natural Resources
1. Mental Health Trust Lands Administration
restores $250.0 MHTAAR for Public Relations
Contracting, to the Governor's requested level.
2. Mining, Land and Water adds $1 million Federal
Receipt authority for the Hunting Guide
Concession Program as a Temporary Increment
(FY18-FY19).
Department of Public Safety
1. Council on Domestic Violence and Sexual
Assault adds intent language as follows "It is
the intent of the legislature that recidivism
reduction funding appropriated in this allocation
may be used to fund victim services programs."
Department of Revenue
1. Child Support Services Division adds $50.0
General Fund/Program Receipts (1005) to section 1
for Paternity Testing. This addition replaces a
language section appropriation with an estimate
of $46.0 General Fund/Program Receipts (1005).
2. Mental Health Trust Operations restores $150.0
A/D T and P Funds (1180) for the FASD Campaign,
to the Governor's requested level.
3. Mental Health Trust Operations adds $43.3 MHT
Admin (1094) for increase travel and contractual
services.
Department of Transportation and Public Facilities
1. Marine Vessel Operations replaces $40 million
UGF (1004) with Alaska Marine Highway System
Funds (1076).
2. Marine Vessel Operations replaces $4,750.0 UGF
(1004) with Transportation Maintenance Funds
(1249) from the Capital and Mental Health Budget.
University of Alaska
1. Budget Reductions and Additions adds $1.0
Special License Plate Receipts (1234) to section
1 for University of Alaska Special License Plate
collections. This addition replaces a language
section appropriation with an estimate of $0.6
Special License Plates Receipts (1234).
Legislature
1. Salaries and Allowances deletes $1,135.8 UGF
for House and Senate per diem for 90-day session.
2. Special Session/Contingency deletes $378.6 UGF
for House and Senate per diem for 30-day special
session.
3. New appropriation - House Session per diem a.
New allocation - 90-day Session funds $275/day
per diem with $977.6 UGF b. New allocation - 30-
day Extended Session funds $275/day per diem with
$325.9 UGF
4. New appropriation - Senate Session per diem
a. New allocation - 90-day Session funds
$275/day per diem with $488.8 UGF
b. New allocation - 30-day Extended Session
funds $275/day per diem with $162.9 UGF
1:40:39 PM
Co-Chair Hoffman surmised that the language gave the
department as much flexibility as possible. Mr. Armstrong
agreed.
Mr. Armstrong looked at Section 4:
Section 4 (Numbers) of Operating Budget
Personal Services reductions totaling $16,791.2
UGF - includes the following language "Each
commissioner or commissioner equivalent may
transfer the unrestricted general funds
appropriated in section 4 between appropriations
within the specified department or agency."
Section 4 (Capital/Numbers) of Mental Health Budget
Department of Transportation and Public
Facilities
Adds a Governor's requested Mental Health
capital project titled MH Coordinated
Transportation and Vehicles and funds the project
with $1 million General Fund/Mental Health (1037)
instead of Transportation Maintenance Funds
(1249). It also maintains $300 thousand Mental
Health Trust Authority Authorized Receipts (1092)
for the project. This fund source change removes
all Transportation Maintenance Funds from the
Mental Health Bill.
1:41:30 PM
Mr. Armstrong addressed the language section:
Language Sections
1. Page 65 - adds an appropriation transferring the
unexpended and unobligated balance, estimated to be
$17 million, from the Anchorage, U-Med district
northern access appropriation to the Public Education
Fund in FY17 (supplemental).
2. Page 67 - deletes a language appropriation with an
estimate of $46.0 General Fund/Program Receipts for
Paternity Testing in the Child Support Services
Division. $50.0 General Fund/Program Receipts (1005)
is added to section 1 for this purpose.
3. Page 67 - deletes a language appropriation with an
estimate of $0.6 Special License Plates Receipts
(1234) for University of Alaska Special License Plate
collections. $1.0 Special License Plates Receipts
(1234) is added to section 1 for this purpose.
4. Page 67, Section 20(a)-(c) - changes are a
technical correction fixing the backstop language for
the Department of Transportation and Public Facilities
and Department of Public Safety. Section 1
appropriates funding related to the Motor Fuel Tax
legislation; if a bill fails to pass, then UGF is
appropriated through these sections and are estimated
to be zero.
5. Page 75, Section 25 -
a. Subsection (g) deposits $1,090,093.9 UGF into
the Public Education Fund for Foundation Program
- funding 94.3 percent in FY18 (a reduction of
$86,383.7 from the Governor's requested level
when combined with the $17 million UGF deposit
into the Public Education Fund in FY17).
b. Subsection (h) deposits $79,029.6 UGF into the
Public Education Fund for Pupil Transportation -
funding 100 percent in FY18 (an increase of
$6,409.8 from the Governor's requested level).
6. Page 76, Section 25(j) - adds an open-ended
appropriation for the amount necessary to pay medical
insurance premiums and the Department of Public
Safety's costs associated with administering the peace
officer and firefighter survivors' fund, estimated to
be $70.1 UGF. Normally this item would be a fiscal
note appropriation but open-ended appropriations
cannot be placed in the numbers section of the
operating bill. This appropriation is contingent upon
a bill passing and being signed into law. Section
35(e) also adds contingency language related to
passage of the legislation.
7. Page 78, Section 26(c) - appropriates $30 million
from the unrestricted general fund to the Marine
Highway Fund in FY17 (supplemental). Backstop language
is also included in Section 35(f) which would reduce
the appropriation to only the amount available in FY17
(the amount available from the Constitutional Budget
Reserve to the general fund cannot exceed $100 million
in FY17 for additional appropriations made during the
2017 session).
8. Page 84, Section 31(c) - adds CBR borrowing and
interest repayment language.
9. Page 84, Section 34(b) and (c) - adds retroactive
effective date clauses.
10. Page 85, Section 35(c) - adds contingency language
which provides that if the Motor Fuel Tax legislation
is less than the level the Governor proposed, then
section 20(b) is effective.
11. Page 85, Section 35(d) - adds contingency language
which provides that if the Motor Fuel Tax legislation
fails, then 20(c) is effective.
12. Page 85, Section 35(e) - adds contingency language
that if the Peace Officer and Firefighter Survivors'
Fund legislation fails, then 25(j) is not effective.
13. Page 85, Section 35(f) - Adds backstop language
reducing the appropriation for $30 million to the
Alaska Marine Highways Fund in 26(c) by the amount
necessary to appropriate no more than the amount
available in FY17 (the amount available from the
Constitutional Budget Reserve to the general fund
cannot exceed $100 million in FY17 for additional
appropriations made during the 2017 session).
Legislative Legal made editorial and technical changes
throughout the bill that are not included in this
list.
1:46:37 PM
Mr. Armstrong looked at Document 1 from LFD (copy on file).
He explained that the document spoke to all funds. He noted
that column 5 was the Senate subcommittee version 3 total.
The current version was on the bottom of column 5, which
proposed to spend the total agency and statewide operations
of $8,417,364,400. He noted that column 5 on page 2
captured the dividend amount. The dividend was based on the
number contained in SB 26, with total spending at
$9,433,321,400.
Co-Chair Hoffman surmised that the dividend appropriation
was not contingent on passage of the legislature. Mr.
Armstrong agreed.
Mr. Armstrong looked at Document 2 from LFD (copy on file).
The document reflected unrestricted general fund (UGF)
spending. He noted that the total spending of UGF in column
5 was $4,014,498,200. He stated that it reflected a UGF
reduction from the management plan in the supplemental
totals of approximately $337 million. He noted that page 2,
column 5 showed the draw for FY 18 from the Permanent Fund
Earnings Reserve Account (ERA) for dividends totaling
$4,733,455,200 of UGF.
Senator Micciche surmised that the total included the
dividend payout. Mr. Armstrong agreed.
1:50:30 PM
Mr. Armstrong looked at Document 3 from LFD (copy on file).
He stated that he already spoke to the changes outlined in
the document.
Mr. Armstrong looked at Document 4 from LFD (copy on file).
He stated that the document contained the supplemental
items in the committee substitute.
Mr. Armstrong looked at Item 6, which was the intent
language in recidivism.
Co-Chair Hoffman WITHDREW his OBJECTION.
1:53:11 PM
AT EASE
1:57:41 PM
RECONVENED
1:57:46 PM
Co-Chair MacKinnon announced that the budget did not look
like a budget for a smaller organization. She looked at
Schedule 1, and noted the Department of Health and Social
Services (DHSS) section. She looked at the $354 million
cut, and the Senate did not cut that money from DHSS. She
requested a discussion about that number. She remarked that
Schedule 1 looked at all funds, and Schedule 2 looked at
UGF. She stressed that there was a reason for that
separation.
1:59:15 PM
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained that the number was a large apparent cut, but the
comparison with the FY 18 budget was tied to the FY 17
spending. He noted that column 2 showed supplemental funds.
Co-Chair MacKinnon stressed that the impact on the DHSS
budget may not be known until the following year. Mr. Teal
agreed.
Co-Chair MacKinnon wondered whether the funds were federal
or UGF. Mr. Teal replied that it was mostly federal funds.
Co-Chair Hoffman looked at Schedule 2, and requested
information about the 29.8 percent for the Department of
Commerce, Community and Economic Development (DCCED); 23
percent for Department of Natural Resources (DNR); and the
57.8 percent for Department of Transportation and Public
Facilities (DOT/PF). He wondered why those numbers were
relatively high. Mr. Armstrong replied that the DCCED
budget was funding for tourism that was moved into the
Capital Budget.
Co-Chair Hoffman queried the budget for the tourism
section. Mr. Armstrong replied that the number was $3
million. He furthered that the reduction to DNR was
associated to firefighting efforts in the current year. He
looked at the DOT/PF budget, which showed a 57.8 percent
reduction. He remarked that there was a fund source switch,
as it was combined with the motor fuel tax.
There being NO further OBJECTION, the proposed committee
substitute was ADOPTED.
2:04:35 PM
Co-Chair Hoffman explained that there was a new amendment
process.
Senator Dunleavy queried the actual reductions, excluding
supplemental, from FY 17 to the current committee
substitute. Mr. Teal replied that the comparisons were
different, depending on fund source.
Senator Dunleavy queried the UGF reduction. Mr. Teal
replied that there was a reduction of $336.9 million.
Senator Dunleavy wondered whether the $262 million included
the motor fuels tax. Mr. Teal replied in the affirmative.
Senator Dunleavy queried the amount of the motor fuels tax.
Mr. Teal replied that it was $70 million.
Mr. Teal explained that the reduction was $337 million
minus $75 million, totaling $262 million. He then
subtracted $70 million from $262 million, equaling $192
million.
2:09:11 PM
AT EASE
2:23:27 PM
RECONVENED
2:23:34 PM
Co-Chair Hoffman noted there was a new document addressing
the current budget reductions in general fund.
Mr. Teal shared the comparisons.
Co-Chair Hoffman queried the definition of the supplemental
budget. He surmised that it was expenditures in real
dollars in the fiscal year, but were originally
unanticipated. Mr. Teal replied in the affirmative.
Co-Chair Hoffman announced that it was impossible to ignore
supplemental items.
^DEPARTMENT OF ADMINISTRATION AMENDMENTS
2:27:30 PM
Senator Dunleavy MOVED to ADOPT Amendments S DOA 11, 13,
15, 17 (copies on file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
Senator Dunleavy MOVED to ADOPT Amendments S DOA 14, 16,
18, and 12 (copies on file). He explained the amendments.
Co-Chair Hoffman OBJECTED for DISCUSSION. He stressed that
the communication components were essential to Alaskans.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
2:31:24 PM
AT EASE
2:32:58 PM
RECONVENED
^DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
AMENDMENTS
2:32:58 PM
Co-Chair Hoffman WITHDREW. Amendment S CED 4.
Senator Dunleavy MOVED to ADOPT Amendment S CED 5 (copy on
file).
Senator Dunleavy explained the amendment.
Co-Chair Hoffman OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy
OPPOSED: Micciche, Olson, Bishop, Hoffman, MacKinnon
Senator Von Imhof was absent from the vote.
The MOTION FAILED (5/1).
^DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT AMENDMENTS
2:35:13 PM
Senator Olson MOVED to ADOPT Amendments S DOE 15, DOE 16
(copies on file).
Senator Olson explained the amendments.
Co-Chair Hoffman remarked that there was an attempt to not
expand programs until the fiscal issues were resolved.
Senator Olson stated that he had filed a related bill.
A roll call vote was taken on the motion.
IN FAVOR: Olson
OPPOSED: Micciche, Dunleavy, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
2:37:47 PM
AT EASE
2:38:01 PM
RECONVENED
2:38:04 PM
Senator Dunleavy MOVED to ADOPT Amendment S DOE 17 (copy on
file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendment.
Co-Chair Hoffman MAINTAINED his objection.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy, Olson
OPPOSED: Micciche, Von Imhof, Bishop, Hoffman, MacKinnon
The MOTION FAILED (5/2).
2:39:52 PM
Senator Olson MOVED to ADOPT Amendments S DOE 18, DOE 19
(copy on file):
Senator Olson explained the amendments.
Co-Chair Hoffman OBJECTED.
Senator Olson stressed that these were important programs.
Co-Chair Hoffman felt that the senate may consider these
issues in the future.
A roll call vote was taken on the motion.
IN FAVOR: Olson
OPPOSED: Micciche, Dunleavy, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES AMENDMENTS
2:43:42 PM
Senator Dunleavy MOVED to ADOPT Amendment S HSS 19 (copy on
file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendment.
Co-Chair Hoffman queried comments from the subcommittee
chair.
Senator Micciche stated that he did not support the
amendment.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
^DEPARTMENT OF NATURAL RESOURCES AMENDMENTS
2:47:03 PM
Senator Dunleavy MOVED to ADOPT Amendment S DNR 3, DNR 4
(copy on file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendment.
Co-Chair Hoffman surmised that the amendments were
combined.
Senator Dunleavy agreed.
Vice-Chair Bishop stated that the subcommittee found that
it was prudent to support the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
^DEPARTMENT OF PUBLIC SAFETY AMENDMENTS
2:49:03 PM
Senator Olson MOVED to ADOPT Amendments S DPS 18, 19, 20,
21 (copy on file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Olson explained the amendments.
Co-Chair Hoffman queried comments from the subcommittee
chair.
Senator Micciche explained that there was a full focus on
the charge and mission through the changes. The agency
received increased funding.
Senator Olson pointed out that there should be funding for
protection of the most vulnerable people.
A roll call vote was taken on the motion.
IN FAVOR: Olson
OPPOSED: Micciche, Dunleavy, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
2:54:39 PM
AT EASE
3:01:46 PM
RECONVENED
Co-Chair Hoffman stated that Amendments DOT 15, 16, 17, and
18 have been withdrawn.
^DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
AMENDMENTS
3:02:15 PM
Senator Dunleavy MOVED to ADOPT Amendment S DOT 19 (copy on
file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendment.
Vice-Chair Bishop remarked that there was a reduction in
the fund, and the commercial vehicle rates were raised by
the department.
Mr. Armstrong explained that there was a reduction of
approximately two-thirds. He did not feel that the $28
million could be "absorbed."
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy, MacKinnon
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman
The MOTION FAILED (5/2).
^EXECUTIVE BRANCH-WIDE APPROPRIATIONS AMENDMENTS
3:05:06 PM
Senator Dunleavy MOVED to ADOPT Amendment S RED 1 (copy on
file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendment.
Co-Chair Hoffman explained that there was still work to
reduce the budget further. The governor stressed that
unallocated reductions were difficult to manage. He opposed
the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
^LEGISLATURE
3:06:51 PM
Senator Dunleavy MOVED to ADOPT Amendment S LEG 10 (copy on
file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendment.
Co-Chair Hoffman noted that the Legislative Council was a
joint committee of the House and the Senate. He opposed the
amendment.
A roll call vote was taken on the motion.
IN FAVOR: Dunleavy, Von Imhof, MacKinnon
OPPOSED: Micciche, Olson, Bishop, Hoffman
The MOTION FAILED (4/3).
^PERMANENT FUND DIVIDEND
3:09:00 PM
Senator Dunleavy MOVED to ADOPT Amendment S PFD 1 (copy on
file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
3:09:19 PM
AT EASE
3:15:09 PM
RECONVENED
Senator Dunleavy explained the amendment.
Mr. Armstrong stated that PFD 1 was the fund source change.
Senator Dunleavy was mistaken.
3:16:32 PM
AT EASE
3:17:07 PM
RECONVENED
Senator Dunleavy WITHDREW his motion.
Senator Dunleavy MOVED to ADOPT Amendments S PFD 1 and 2
(copy on file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
Senator Dunleavy explained the amendments.
IN FAVOR: Dunleavy
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman,
MacKinnon
The MOTION FAILED (6/1).
^FUND TRANSFERS
3:19:01 PM
Senator Dunleavy MOVED to ADOPT Amendment S XFR 1 (copy on
file):
Co-Chair Hoffman OBJECTED for DISCUSSION.
IN FAVOR: Dunleavy, Olson
OPPOSED: Micciche, Von Imhof, Bishop, Hoffman, MacKinnon
The MOTION FAILED (5/2).
Mr. Armstrong thanked the committee staff for the work on
the budget.
Co-Chair Hoffman stressed that there was a monumental
budget deficit. He stated that the legislature must
continue to reduce the budget and spending.
Co-Chair MacKinnon disclosed her close economic
relationship regarding her husband and the Construction
Education Foundation.
Vice-Chair Bishop thanked the subcommittee members.
3:23:36 PM
Senator Micciche remarked that the agency operations
reductions were $211 million, which moved closer to the
budget goal. He felt that the reductions were close to 50
percent from the operating and capital budgets.
Senator Dunleavy felt that the Senate had worked to reduce
the budget, and felt that there needed to be further
reductions.
Co-Chair MacKinnon MOVED to REPORT SCS HB 57 (FIN) out of
committee with individual recommendations.
SCS HB 57 (FIN) was REPORTED out of committee with a "do
pass" recommendation.
3:29:29 PM
AT EASE
3:31:34 PM
RECONVENED
Co-Chair MacKinnon stressed that there are multiple ways to
cut the budget.