Legislature(2011 - 2012)SENATE FINANCE 532
03/27/2012 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB285 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 284 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | HB 285 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | SB 203 | TELECONFERENCED | |
| += | SB 192 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 284(FIN)
"An Act making appropriations for the operating and loan
program expenses of state government and for certain
programs, capitalizing funds, amending appropriations, and
making reappropriations; and providing for an effective
date."
CS FOR HOUSE BILL NO. 285(FIN)
"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."
9:05:01 AM
Co-Chair Hoffman noted that all subcommittee budget close-out
reports could be found on the Legislative Finance Division (LFD)
website.
9:06:09 AM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
TIM GRUSSENDORF, STAFF, SENATE FINANCE COMMITTEE, presented the
report for Department of Commerce, Community and Economic
Development (DCCED).
9:06:40 AM
Co-Chair Hoffman acknowledged that the subcommittee members
included himself, Senator Albert Kookesh and Senator Kevin
Meyer.
9:06:49 AM
Mr. Grussendorf presented the Senate Finance Subcommittee
Operating Budget close-out recommendations for DCCED (copy on
file). The subcommittee recommended $123,108,400 in general
funds, which represented a $1,347,700 reduction from the
governor's request; $37,323,700 in other funds, representing an
increase of $93,400; and a $14,425,900 reduction in federal
funds related to the removal of excess forest receipts. The
subcommittee added two full-time positions and zero part-time
and temporary positions above the governor's request.
Mr. Grussendorf read some of the budget action highlights
included in the subcommittee recommendations:
Denied
· The National Forest Receipts $170.0 language
appropriation to the Department of Transportation and
Public Facilities. Federal receipts are expected to
decline from about $15 million to about $600.0 in FY13
and the Senate Subcommittee wanted to maximize the
amount dispersed to communities.
Modified
· Tourism Marketing.
• Tourism Marketing Contracts in the Office of
Economic Development (OED): $9.3 million UGF
(one-time funding). This is $6.7 million below
the Governor's $16 million UGF but, when
combined with the $2.7 million SDPR increment,
the approved funding level is equivalent to the
amount received in FY12.
· To clarify funding ratios and legislative intent, ASMI
funding (and positions) are appropriated in a language
section of the operating budget.
· Reduced the travel request in Corporations, Business
and Professional Licensing (CBPL) by $150.0 (from
$244.6 to $94.6).
· Alaska Energy Authority's $2 million GF Misc. Earnings
appropriation for administration of the Renewable
Energy Fund. The Senate Subcommittee appropriated this
funding directly from the Renewable Energy Fund
instead of appropriating the fund's earnings.
Other Actions
· Added an Alaska Legal Services Corporation grant in
DCRA: $250.0 increment.
· For budget clarity, CBPL was segregated into four
allocations: (1) Corporations and Business licensing,
(2) Professional Licensing, (3) Investigations, and
(4) Administration.
· Added $306.0 and two positions to increase and enhance
the Technical Assistance Program and Circuit Rider
Program within the Alaska Energy Authority.
9:09:40 AM
Senator Olson wondered how the subcommittee's recommendations
compared with the governor's request.
Mr. Grussendorf replied that that the Senate's recommendation
was approximately $15,700,000 less than that of the governor.
9:10:08 AM
OFFICE OF THE GOVERNOR
Co-Chair Hoffman stated that the subcommittee members for the
Office of the Governor's budget were Senator Albert Kookesh,
Senator Gary Stevens and himself.
9:10:31 AM
Mr. Grussendorf presented the subcommittee recommendations for
the Office of the Governor. The Senate subcommittee recommended
$32,417,800.
The Senate Finance Budget Subcommittee for the Office of
the Governor submits an Operating Budget to the Senate
Finance Committee for FY 13 as Follows:
Budget Action
The Senate Finance Budget Subcommittee on the Office of the
Governor submits an operating budget for FY13 as follows:
The Subcommittee adopted the Governors' request with 2
changes.
• Changed the $3.0 million for DVSA to OTI and
added intent language.
• Reduced the personal services line by $250.0 in the
Executive Office.
9:11:32 AM
LEGISLATURE
Mr. Grussendorf detailed the subcommittee recommendations for
the Legislature.
The Senate Finance Budget Subcommittee for the
Legislature's Operating Budget submits this recommendation
to the Senate Finance Committee for FY 11 as follows:
Fund Source 13 Gov Amd+ Sen Sub Difference
General Funds $75,251.5 $73,004.0 ($2,247.5)
Federal Funds 0 0 0
Other Funds $379.5 $403.0 $23.5
Positions 13 Gov Amd+ Sen Sub Sen to Gov
PFT 250 251 1
PPT 284 284 0
Temp 0 0 0
Budget Action
The Senate Finance Budget Subcommittee on the Legislature
submits an Operating budget for FY13 as follows:
Accepted the Legislatures amended proposal
• Reduced budget by $1,555.0 in the Legislative Finance
to be split between House and Senate. Also reduced
$500.0 from Committee expenses.
• Increases for personal services, travel and per diem,
dues rent and lease costs.
• Added a new attorney in the legal and research
allocation.
• Added a intake secretary in the Ombudsman allocation
• One time funds for the CSG National Conference in
Alaska.
9:13:02 AM
UNIVERSITY
Mr. Grussendorf presented the subcommittee recommendations for
the University of Alaska's budget. He stated that the Senate
subcommittee recommended $691,550,400, which was an increase of
$4,542,000 million in general funds. He noted that federal funds
recommended were $147,944,300, which was an increase of
$750,000. He explained that other funds were equal to those
requested by the governor at $86,334,300. He noted an increase
of 26 positions. The subcommittee met with the university and
took the budget proposed by the governor and proposed report
recommendations of $250,000 general funds to the University of
Alaska Anchorage, Alaska Education Policy Research, Institute of
Social and Economic Research (ISER). He highlighted the increase
of $250,000 in general funds to the University of Alaska
Fairbanks, Indigenous Studies PhD and Alaska Native Knowledge
Network. Lastly, he noted the addition of $80.6 thousand to the
University of Alaska Southeast Honors program.
9:15:00 AM
DEPARTMENT OF FISH AND GAME
Senator Olson stated that the subcommittee for Department of
Fish and Game (DF&G) consisted of Senator Hoffman, Senator
Stevens, Senator Wagoner, Senator Huggins and himself.
9:15:29 AM
DENNISE LICCIOLI, STAFF, SENATOR DONNIE OLSON presented the
subcommittee recommendations for DF&G.
The Sub-Committee for the Department of Fish & Game submits
an operating budget recommendation and report to the Senate
Finance Committee for FY13 as follows:
Fund Source
12 Mgt Plan Gov Amd Sen Sub Difference
GF $80,617.9 $85,279.4 $87,899.0 $2,619.6 3%
Federal 62,199.7 62,346.0 62,346.0 0
Other 56,317.2 61,684.1 61,684.1 0
Total $199,134.8 $209,309.5 $211,929.1
Position Summary
12 Mgt Plan Gov Amd Sen Sub
PFT 924 911 911
PPT 757 711 711
Temp 68 68 68
------- ------- -------
Total 1,749 1,690 1,690
Personnel
The authorized position count for the department was
reviewed; the Sub-Committee kept the overall number of
positions the same as in the Governor's Amended request,
although the department did delete many long time vacant
positions as they built their FY13 Adjusted Base.
Budget Action
· Held 5 public meetings with the department to
discuss and explain the budget;
· Adopted the FY13 Adjusted Base; and
· Reviewed each of the increments and decrements
submitted by the Governor.
The sub-committee accepted the Governor's budget as
submitted, except for one amendment that was submitted late
on March 8; and except for changing one item to a "one time
item" and two other items to "short term" items. The sub-
committee added $2,619.6 of GF for various projects
throughout the State. The majority of these projects were
added to the Commercial Fisheries division; one each was
added to Sport Fisheries, Wildlife Conservation, and State
Subsistence. These are the additions done by the sub-
committee:
· Chilkat Lake Productivity Program $60.0
· Nushagak River Coho & Pink Salmon Escapement $95.0
· Salmon Lake Nutrient Enrichment $162.5
· Hobson Creek Hatchery Operations $337.5
· Salmon Enhancement Norton Sound Region $250.0
· Salmon Fishery Enhancement in Norton Sound $190.0
· Nome Subdistrict Chum Rehabilitation $100.0
· Niukluk River Chinook Rehabilitation $150.0
· Nome River Salmon Rehabilitation $50.0
· Genetics Work on Chinook Salmon Westward Region $234.0
· Rehabilitation & Enhancement Chinook Salmon $295.0
· Habitat Enhancement Work in the Southcentral Region
$245.0
· Regional Hub Subsistence Research $450.6
The sub-committee also changed the name of the State
Subsistence allocation to State Subsistence Research to
better reflect the activities of the allocation.
9:16:54 AM
Senator Olson commented on the $2.6 million increase in the
budget for DF&G, which he attributed to program costs.
9:17:30 AM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Senator Olson thanked the members of the subcommittee for the
Department of Health and Social Services (DHSS).
9:17:56 AM
Ms. Liccioli presented DHSS subcommittee budget recommendations.
The Sub-Committee for the Department of Health & Social
Services submits an operating budget recommendation and
report to the Senate Finance Committee for FY13 as follows:
Fund Source
12 Mgt Plan Gov Amd Sen Sub Difference
GF $1,222,328.6 $1,290,507.3 $1,290,728.7 $221.4
Federal $1,148,399.9 $1,229,126.5 $1,229,126.5 0.0
Other $99,460.2 $101,528.7 $101,598.7 $70.0
Total $2,470,188.7 $2,621,162.5 $2,621,453.9
Position Summary
12 Mgt Plan Gov Amd Sen Sub
PFT 3,510 3,459 3,458
PPT 76 65 65
Temp 104 104 103
Total 3,690 3,628 3,626
Personnel
The authorized position count for the department was
reviewed; the sub-committee reduced the overall number by
two from the Governor's amended request.
FY 2013 Senate Finance Sub-Committee Budget Recommendations
for H&SS /March 20, 2012
Budget Action
• Held 7 public meetings with the department to discuss
and explain the budget;
• Adopted the FY13 Adjusted Base; and
• Reviewed each of the increments and decrements
submitted by the Governor, including amendments.
The GF in this budget was increased from the FY13 adjusted
base, predominately due to Medicaid. Medicaid growth and
projections increased the budget $130.9 million in total,
$45.3 million of which is GF. Another $129.4 million was a
fund source change from federal to GF due to the changes in
the FMAP rate.
Another $6.6 million of GF increases are due to growth in
adult public assistance, general relief, PFD hold harmless,
and increased screening of newborns.
Other increases were made in other areas, which we believe
to be basic and integral to the services provided by this
budget, and consider them to be essential to what
government does for its citizens. And so this budget
proposal funds basic support needed for children, the frail
and other Alaskans who cannot provide for themselves.
Notable increases that are approved include:
• Funding for the LIHEAP and AKHAP programs was
increased $2.6 million
• Alaska Complex Behavior Collaborative was funded for a
full year $650.0
• School Based Suicide Prevention $450.0
• Education and Voucher Program $200.0
• Chlamydia Screening and Early Treatment $200.6
• Immunizations for Children and Seniors $700.0
• Stabilize Nursing Grantees $990.0
• Grave Shift Coverage for Juvenile Justice Facilities
$500.0
• Senior In-Home Services Grants $500.0
A 10% reduction to GF was applied to most of the increments
requested by the Governor if they were due to new programs
or program expansion.
The Commissioner's Office was reduced by $225.0 of GF due
to moving total funds of $403.5 into the contractual line
for legal and judicial services and projects such as the
Health Insurance Exchange. Policy changes need to have the
Legislature involved, and the Governor specifically
declined the $1 million of federal funds which were
available for this purpose.
Please see the attached reports for the details on these
and other budget changes.
It is our intention to allow Legislative Finance to do
technical adjustments if any are needed.
FY 2013 Senate Finance Sub-Committee Budget Recommendations
for H&SS /March 20, 2012
Items of Concern
Clearly, the biggest concern for this budget is the size of
the budget itself, and whether it can be sustained. This
budget funds some of the most essential services of state
government and not only are the costs of all the programs
escalating, but in addition, there continues to be growth
in the programs as the elderly population increases,
poverty levels increase, and substance abuse and other
behavioral health problems abound.
Substance abuse, suicide and other behavioral health issues
are of significant concern. Adult obesity prevalence has
doubled in Alaska over the past two decades and an obesity
prevention program is necessary to prevent drastically
increased future medical costs. No additional funding has
been provided in this budget for obesity prevention. Since
these are GF funded, it is hard to make room for the needs
of these programs when Medicaid continues to grow and use
the GF resources.
Finally, the Tobacco Cessation Fund is now drawing on the
surplus that was created in the early years while the
program was gearing up. The Fund has a healthy balance
now, but at the current rate of spending and the current
rate of revenues, something will have to be done in the
next 5 to 8 years. Several options exist besides cutting
back on the program - one of the most successful in the
State - including increasing revenues, and supplementing
the program with GF. It is premature to take any action at
this time, but in a few years, some changes will be
necessary.
9:21:25 AM
Ms. Liccioli remarked on the size of the budget, attributed
largely to the cost of Medicaid, which was growing
exponentially. She stated that the high cost of Medicaid meant
less funding for other programs directed at substance abuse,
suicide, and other behavioral health problems that were of
interest to others around the state. She highlighted the tobacco
cessation fund because the fund's budget was spending more than
it received in revenue, thus drawing on the reserve built up at
the program's inception.
9:22:49 AM
Senator Ellis queried the meaning of the "Education and Voucher
Program." Ms. Liccioli replied that the program provided
vouchers to foster children to secure education and training for
vocational or post-secondary education.
9:23:28 AM
Senator Ellis queried the outcome of the Alzheimer's Disease
Resource Agency grants in the department's budget.
Senator Olson returned to the prior point and noted that the
vouchers in the Education and Voucher Program were specifically
for public education.
Ms. Liccioli stated that there was no additional funding for the
Alzheimer's Disease Resource Agency program.
9:24:20 AM
Senator Ellis echoed concern about the unmet needs for substance
abuse prevention and treatment. He agreed that the needs were
inadequately funded in the subcommittee's recommendation.
9:24:29 AM
Co-Chair Hoffman stressed the importance of funding the
substance abuse treatment programs. He and Senator Ellis
believed that the additional funding in the area of substance
abuse treatment and prevention would result in fewer inmates in
Alaska's overcrowded prison systems.
9:24:56 AM
Senator Thomas wondered if the Human Services Community Matching
Grant funding was included in the recommendations. Ms. Liccioli
replied that funding for the grant was unchanged.
9:25:32 AM
DEPARTMENT OF PUBLIC SAFETY
Senator Olson thanked the members of the Department of Public
Safety (DPS) subcommittee.
9:25:57 AM
SYDNEY SEAY, STAFF, SENATOR DONNIE OLSEN, presented the budget
recommendations for DPS.
The Senate Finance Budget Subcommittee for the Department of
Public Safety submits the following FY 13 Operating Budget
recommendation and report to the Senate Finance Committee:
FY13 Adj Difference
FUND SOURCE Base Gov Amd House Sen Sub (G-S)
Unrestricted
$154,007.1 $164,565.8 $164,397.1 $164,362.3 $203.5
GF
Designated
$7,876.2 $7,322.7 $7,322.7 $7,322.7 $0.0
GF
Other $20,138.5 $19,948.4 $19,948.4 $19,948.4 $0.0
Federal $12,042.3 $10,967.5 $10,967.5 $10,967.5 $0.0
Total $194,064.1 $202,804.4 $202,635.7 $202,600.9 $203.5
FY13 Adj Difference
POSITIONS Gov Amd House Sen Sub
Base (G-S)
PFTs 876 879 878 878 -1
PPTs 16 16 16 16 0
Temps 14 14 14 14 0
Total 906 909 908 908 -1
The Subcommittee met with the Department three (3) times
before closeout, and reviewed the following items:
1. The FY12 Management Plan,
2. The FY13 Adjusted Base,
3. Increments, decrements, and budget amendments proposed
by the Governor,
4. The House Finance Budget Subcommittee closeout report
that funded 75% of VPSO funding and removed funding
for the Lab maintenance position,
5. The House Full Finance Committee action, which
restored 100% VPSO funding. The lab maintenance
technician position was not restored to the budget.
BUDGET ACTION
The Subcommittee authorized $203.5 less in general funds
and one (1) less employee than the Governor's FY13 budget
request. Following are the action highlights:
APPROVED
Alaska State Troopers
• One new trooper for VPSO support to be stationed in
Juneau $215.0 GF
• 24 hour dispatch and prisoner transport services in
the City of Kotzebue $75.0 GF
• Replacement funds for Bureau of Highway Patrol
$1,900.0 GF
Village Police Safety Officer Program
• Contract for 15 new VPSO positions $2,209.8 GF
• Establish VPSO/VPO twelve week training programs
$500.0 GF
Laboratory Services
• Facilities maintenance position for new laboratory
$92.0 GF
Council on Domestic Violence and Sexual Assault - increased
funding for:
• Operations costs for currently funded DVSA programs
$475.5 GF
• Expanded DVSA prevention $250.0 GF
• CDVSA batterer's intervention program data collection
$50.0 GF
• Planning and coordination efforts for DVSA initiative
$55.0 GF
Criminal Records and Identification
• Maintain current level of service $200.0 GF
DENIED
Alaska Wildlife Troopers
• Civilian pilot and operating costs for new interior
helicopter 296.8 GF
• Office equipment for new helicopter pilot 6.7 GF
ADDED
• The subcommittee added one-time funding of $100.0 GF
to the Victims for Justice Appropriation
9:29:48 AM
Senator Olson remarked that the trooper and helicopter operation
funding was removed from the budget recommendation. He stated
that the plan was for the private sector to fund the gap.
9:30:37 AM
DEPARTMENT OF ADMINISTRATION
Senator Ellis invited Jeff Rogers to present the subcommittee
recommendations for the Department of Administration (DOA).
9:31:02 AM
JEFF ROGERS, STAFF, SENATOR JOHNNY ELLIS, presented the budget
recommendations for DOA.
The Senate Finance Budget Subcommittee for the Department
of Administration submits an operating report to the full
Senate Finance Committee for Fiscal Year 2013 as follows:
Fund Source:
FY12 FY13 FY 13 Difference Difference
Management Governor's Senate Sub (Gov Amend+ (Gov Amend+
Plan Amended+ to to
SenateSub) SenateSub)
Unrestricted $79,686.0 $84,392.0 $82,915.8 ($1,476.2) (1.7%)
General Funds
Designated $23,493.5 $23,947.3 $23,947.3 ($0.0) (0.0%)
General Funds
Other Funds $204,690.1 $213,290.0 $213,290.0 ($0.0) (0.0%)
Federal Funds $4,539.4 $4,989.8 $4,989.8 ($0.0) (0.0%)
Total $312,409.0 $326,619.1 $325,142.9 ($1,476.2) (0.5%)
Personnel:
The Subcommittee reviewed the authorized position count for
the Department. The Governor's amended budget proposal
requested one new position and transfers five positions
from DHSS, but also deletes several vacant positions for a
net decrease of four positions. The Subcommittee is
recommending that those new positions and deleted vacancies
be accepted as requested.
FY12 Management FY13 Governor's FY 13 Senate
Position Summary Plan Amended+ Subcommittee
Permanent Full 1,091 1,087 1,087
Time
Permanent Part 18 18 18
Time
Temporary 41 40 40
Total 1,150 1,145 1,145
The Subcommittee held four meetings with the Department and
took the following actions:
1. Adopted the Fiscal Year 2013 Adjusted Base.
2. Reviewed each of the increments, decrements, and fund
changes submitted by the Governor. Recommends action
on the Governor's proposal including the following:
a. Adopt Inc $1,500.0 CIP RCPT for Implementation of IRIS
b. Adopt Dec $112.5 GF/PR to Discontinue Databasics
c. Adopt Inc $440.5 GRPBEN for Third Party Contract
Increases
d. Adopt Inc $80.0 I/A for Postage Increases
e. Adopt Inc $2,500.0 I/A for Lease Costs
f. Adopt Inc $750.0 I/A for Facilities Operation and
Maintenance Costs
g. Adopt Inc $80.0 PBF for Public Building Costs
h. Adopt Inc $36.3 AOGCC RCPTS for Increased Oversight of
Oil, Gas, and Geotherm
i. Adopt Inc $150.0 FED for John R. Justice Student
Repayment Program
j. Adopt Inc $68.1 UGF for Additional Support for
Elections
k. Adopt Inc $87.5 GF/PR for State Operated DMV Office in
Kotzebue (+ 1 PFT)
l. Adopt Inc $74.5 GF/PR for Server Hosting Costs
3. Reviewed each of the operating budget amendments
submitted by the Governor. Recommends action on the
Governor's proposal including the following:
a. Adopt Inc $800.0 UGF for Office of Public Advocacy
Caseload Increase
b. Adopt Inc $1,000.0 UGF for Public Defender Caseload
Increase
c. Adopt Inc $340.0 FED for Grants to Crime Victims
through VCCB
d. Reject Inc $75.0 UGF for Retirement System Trust Fund
Costs
e. Reject Inc $1,500.0 UGF for ALMR Equipment,
Maintenance, and Training
4. Recommends the adoption of the following increments,
decrements, and statements of intent proposed by
members of the Subcommittee:
a. Adopt $98.8 UGF for Government Access Television
Program Expansion
b. Adopt one statement of legislative intent:
i. "It is the intent of the legislature that the
Department seek full recovery of the portion of FY2013
Alaska Land Mobile Radio system costs attributable to
Other Subcommittee Findings:
1. The Subcommittee finds the Department has complied
with 2012 legislative intent to prepare and submit a report
on the future viability of the Alaska Land Mobile Radio
system. This report sufficiently confirms that there is
not a more cost-effective system available to meet the
needs of the State. The Subcommittee also finds that the
Department has sufficiently engaged the diverse group of
ALMR users in evaluating long-term solutions. However, the
Subcommittee remains concerned with the Department's
failure to implement a cost-share plan. This failure is
exacerbated by the present deacquisitioning of many
federally maintained radio sites to Alaska which guarantees
dramatically increased future costs to the State but
without any guarantee that those costs will be equitably
shared with federal government users.
2. The Subcommittee finds that the Department has failed
to sufficiently facilitate legislative consideration of
statutory adjustments to Alaska's retirement systems. With
the very fast pace of the 90-day legislative session, it is
critical that the Legislature has timely access to
information about the fiscal impact of pending legislation.
The subcommittee appreciates the complexity of actuarial
calculations, but any unnecessary delay in delivering
fiscal analysis to the Legislature is contrary to the
Department's mission and significantly impedes responsible
policy development.
9:33:57 AM
Senator Ellis commented that the subcommittee was pleased that
the department complied with the legislature's request to
produce a feasibility study. He stated that the report confirmed
that Alaska Land Mobile Radio (ALMR) provided a suitable system
to meet the state's needs. He expressed frustration that the
system did not serve rural Alaska, but the recommendation was
for legislative intent directing the department to recover the
needed funding from the federal government to compensate the use
of the system by federal agencies.
Senator Ellis mentioned government access to television
programing. He pointed out a request to increase support for
Gavel to Gavel by $98.8 thousand.
9:35:23 AM
DEPARTMENT OF CORRECTIONS
Senator Ellis explained that the Department of Corrections (DOC)
subcommittee consisted of himself, Senator Linda Menard, and
Senator Hollis French. He noted that Jeff Rogers staffed the
subcommittee and would present the report.
9:35:42 AM
Mr. Rogers explained the DOC budget recommendations.
The Senate Finance Budget Subcommittee for the Department
of Corrections submits an operating report to the full
Senate Finance Committee for Fiscal Year 2013 as follows:
Fund Source:
FY12 FY13 FY 13 Difference Difference
Management Governor's Senate Sub (Gov Amend+ (Gov Amend+
Plan Amended+ to to
SenateSub) SenateSub)
Unrestricted $247,910.6 $281,343.2 $282,665.6 $1,322.4 0.5%
General Funds
Designated $22,266.3 $21,555.1 $21,555.1 $0.0 0.0%
General Funds
Other Funds $14,925.0 $15,024.9 $15,024.9 $0.0 0.0%
Federal Funds $3,220.6 $3,251.0 $3,251.0 $0.0 0.0%
Total $288,322.5 $321,174.2 $322,496.6 $1,322.4 0.4%
Personnel:
The Subcommittee reviewed the authorized position
count for the Department. The Governor's amended
budget proposal requested 199 new positions. 192 of
those positions will staff the new Goose Creek
Correctional Center. The other 7 new positions relate
to "Smart Justice" initiatives.
FY12 Management FY13 Governor's FY 13 Senate
Position Summary Plan Amended+ Subcommittee
Permanent Full 1,508 1,699 1,699
Time
Permanent Part 3 1 1
Time
Temporary 0 0 0
Total 1,511 1,700 1,700
Budget Action:
The Subcommittee held four meetings with the
Department and took the following actions:
1. Adopted the Fiscal Year 2013 Adjusted Base.
2. Reviewed each of the increments, decrements, and
fund changes submitted by the Governor.
Recommends action on the Governor's proposal
including the following:
a. Adopt Inc $29,061.2 UGF for Goose Creek
Correctional Center phase-in (+ 192 PFT)
b. Adopt Inc $350.0 UGF for Sex Offender Management
programs in Bethel & Mat-Su
c. Adopt Inc $338.9 UGF for DVSA Probation Officers
(+ 3 PFT)
d. Adopt Inc $309.1 UGF for Electronic Monitoring
Expansion (+4 PFT)
e. Adopt Inc $156.0 UGF for Vocational Education
Program Expansion
f. Reject Inc $46.0 UGF for Increased Population as
a result of SB 222
g. Adopt Inc $852.7 UGF for Community Residential
Center Rate Increase
h. Adopt Inc $460.0 UGF for Out-of-State Contractual
Daily Rate Increase
i. Reject Inc $200.0 UGF for Information Technology
MIS Licensing and Support
j. Adopt Inc $200.0 I/A (DVSA) for Year Two of PACE
Pilot Project
k. Adopt FndChng $1,029.9 PFD CRIM to UGF
3. Reviewed each of the operating budget amendments
submitted by the Governor. Recommends action on
the Governor's proposal including the following:
a. Adopt Inc $600.0 UGF for Community Jails Funding
Equity
4. Recommends the adoption of the following
increments, decrements, and statements of intent
proposed by members of the Subcommittee:
a. Adopt Inc $1,380.5 UGF for Substance Abuse
Treatment Program Expansion
b. Adopt Inc $1,562.0 UGF for Cordova Center
Community Residential Center
c. Adopt Inc $1,700.0 UGF to Relieve Understaffing
and Prevent Lower Minimum Staffing Levels
d. Adopt Inc $70.0 UGF for Partners for Progress
24/7 Sobriety Monitoring
e. Adopt Dec $3,174.0 UGF to Prevent Over-
appropriation to Out-of-State and Goose Creek
Correctional Center
f. Adopt one statement of Legislative Intent:
i. "Although the legislature acknowledges that
contract negotiations and management decisions
are functions of the executive branch, the
legislature finds that the Department of
Corrections has insufficiently contemplated the
long-term impact-including costs of litigation or
arbitration, officer and inmate safety, and
employee recruitment and retention-of an
adjustment to the historical policy of shift
staffing; it is therefore the intent of the
legislature that the Department utilize the
$1,700,000.00 appropriation to Population
Management in FY13 to maintain the status-quo
shift scheduling policy."
Other Subcommittee Findings:
1. The Subcommittee finds the Department has failed
to adequately study the proposed "blended shift model"
which would place a greater number of correctional
officers on 8-hour shifts. Any cost savings, or cost
defrayment, results only from lowering overnight
minimum staffing levels. The Subcommittee finds that
the reduction in officer, inmate, and public safety
resulting from lower minimum staffing is not
consistent with the Department's primary mission.
Further, the Subcommittee finds that the Department
has failed to adequately describe the cost savings and
has failed to sufficiently contemplate cost increases
resulting from an increased employee turnover rate.
Taken together, these finding suggest that the change
proposed by the Department is potentially more
expensive and potentially less safe, and is thus
unadvisable.
2. The Subcommittee finds the Department has failed
to adequately address the legislative authorization
contained in SB65 (Chapter 160 SLA 2004) to contract
with municipalities to upgrade, expand, or reconstruct
the correctional facilities in Bethel and Fairbanks.
This failure has resulted in imminent danger to the
safety of officers, inmates, and the public in those
communities. Every effort should be made to exercise
this delegated authority as soon as possible.
3. The Subcommittee finds the Department has made
very satisfactory progress in developing and
implementing "Smart Justice" strategies that aim to
bend-down the long-term cost-curve by investing in
programs that reduce the rate of criminal recidivism.
4. The Subcommittee finds the Department has made
very satisfactory progress in curtailing the
extraordinary rise in inmate health care costs.
9:39:45 AM
Senator Ellis reported to the committee that the DOC
subcommittee met frequently and received plenty of
attention. He stated that the proposed budget represented
the first major step in the state's effort to implement a
long-term justice reinvestment strategy. He applauded the
governor's "Choose Respect" initiative. He highlighted the
$1.4 million included in the subcommittee's recommendation
for expanded substance abuse treatment. He noted that the
state used to provide for substance abuse treatment, but
the funding was eliminated one decade ago.
9:43:13 AM
Senator McGuire complimented Senator Ellis on the DOC's
budget. She applauded the additions to the governor's
budget along with Senator Ellis' Smart Justice Initiatives.
9:43:40 AM
Senator Olson thanked Senator Ellis and observed the
priority of opening Goose Creek Correctional Center. He
wondered if the rural area correctional facilities,
particularly the Kotzebue community jail were the subject
of discussion in subcommittee meetings. He quoted item 2:
2. The Subcommittee finds the Department has failed
to adequately address the legislative authorization
contained in SB65 (Chapter 160 SLA 2004) to contract
with municipalities to upgrade, expand, or reconstruct
the correctional facilities in Bethel and Fairbanks.
This failure has resulted in imminent danger to the
safety of officers, inmates, and the public in those
communities. Every effort should be made to exercise
this delegated authority as soon as possible.
Senator Ellis relayed the subcommittee's emphasis on
community jails. He applauded the department on their
leadership. He recalled the department's mission of opening
the Goose Creek Correctional Center. The subcommittee
helped the department prioritize upgrades to the Bethel and
Fairbanks correctional facilities, as well. He felt that
the subcommittee stressed the importance of the Bethel and
Fairbanks facilities during the DOC hearings. He perceived
that the department was singularly focused on the big
prison at the expense of ignoring other needs in the state.
He hoped that the legislature would continue to hold the
department accountable on the budgetary issue. He asked Mr.
Rogers to comment about the issue in Kotzebue.
9:46:44 AM
Mr. Rogers recounted that the situation in Kotzebue
resulted from departmental efforts initiated by a 2008
legislative audit. The audit found that funding for
community jails was unbalanced. The auditor proposed
solutions of equity for the systems. Unfortunately, funding
for Kotzebue was diminished in the effort. He pointed out
an increment approved to increase funding and bring all of
the community jails to the same level with full funding
necessary to hold state prisoners. He explained that
Kotzebue was open and an ongoing investigation was in
progress. He stated that the budget had an additional
$600,000 to close the gap.
9:47:54 AM
Co-Chair Hoffman echoed Senator Ellis' concern regarding
implementation of SB 65. He commented on the deplorable
condition of the Yukon Kuskokwim Correctional Center. He
noted that the gymnasium in the facility was used as a
dormitory. He declared the facility inadequate. He visited
the facility with the Commissioner of the Department of
Public Safety where he hoped for some solutions from the
department. He asserted that the working conditions for
those employed at the Yukon Kuskokwim were unsafe. He hoped
to address prison situations, particularly in rural areas,
before the state faced another lawsuit.
9:50:13 AM
Senator Olson expressed concern with the eminent danger to
the officers, inmates, and public in Fairbanks, Anchorage,
and Bethel correctional facilities. He agreed that the risk
of a lawsuit was concerning, but he wished especially to
avoid unnecessary harm to the officers, inmates and public
connected to the facilities.
9:51:09 AM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Co-Chair Stedman began with the subcommittee
recommendations for the Department of Transportation and
Public Facilities.
The Senate Finance Budget Subcommittee for the
Department of Transportation & Public Facilities
submits the following Fiscal Year 2013 Operating
Budget Recommendations to the Senate Finance
Committee:
Fund Source 13Adj. Base Gov.Amd. Sen. Sub. Difference
Unrestricted GF 268,251.3 271,925.0 281,627.9 3.6%
Designated GF 73,844.0 75,635.8 68,118.1 -9.9%
Other Funds 258,785.8 264,524.4 264,024.4 .02%
Federal Funds 3,986.6 3,986.6 3,816.6 -4.3%
Total 604,867.7 616,071.8 617,587.0 .2%
Positions 13 Adj. Base Gov.Amd. Sen. Sub. Difference
PFT 3,172 3,172 3,172 0
PPT 409 409 409 0
Temp 223 227 223 -4
The Subcommittee met with the Department and took the
following budget actions:
Budget Action
Approved the Governor's Amended budget requests with
the following exceptions:
• Denied the request for additional heating fuel
and utility costs for Central ($405.7), Northern
($782.5), and Southeast ($158.9) Regions. These costs
are already covered under the fuel price 'trigger'
language in the department's Operating Budget.
• Denied inter-agency receipt authority for 4
positions in Statewide Design & Engineering Services
to limit spending and restrain growth of the
department's position count.
• Reduced expenditure authority from the Alaska
Marine Highway System Fund to $55 million to more
accurately align with the agency's projected revenue.
This was accomplished by replacing $7,517.7 of Marine
Highway System funds (code 1076) with $7,517.7 in
Unrestricted General Funds (code 1004).
• Increased the base fuel budget with $3,482.3 of
Unrestricted General Funds to align total projected
costs with available funding and avoid an
unsustainable draw down of the balance in the Alaska
Marine Highway System Fund.
• Increased Northern Region Highways & Aviation
budget by $50.0 General Fund to secure ice road
transportation access to Northwest communities.
9:53:16 AM
Senator Olson queried the plans of the Alaska Marine
Highway system related to high fuel costs and inadequate
ticket sales. Co-Chair Stedman replied that ticket sales
were increasing but expenditures increased more rapidly. He
highlighted route changes made by the Alaska Marine Highway
system as an attempt to lessen expenditures.
9:54:05 AM
Senator Olson wondered if the Alaska Marine Highway system
planned to expand routes.
Co-Chair Stedman replied that ongoing maintenance and the
procurement of new and efficient ships were the system's
priorities.
9:54:24 AM
Senator Ellis recalled a conversation with a constituent
regarding the resurfacing of roadbeds in Alaska with
alternative substances. He wondered if there was discussion
regarding road material.
Co-Chair Stedman replied that discussions regarding the
durability of the rock used in the road surfacing material
had occurred in subcommittee meetings. He stated no
immediate solution to the problem, and furthered the
priority of finding the ideal material to provide a long-
term solution for road resurfacing.
9:56:09 AM
Senator McGuire suggested innovative solutions to utilize
the transportation needs of the state. She proposed a
northwest ferry passage to address declining revenues. She
highlighted the tourism opportunities provided by the
Alaska Marine Highway system.
Co-Chair Stedman clarified that revenues for the system
were increasing. Expenditures were rising more quickly with
the high cost of fuel. Additional challenging costs
included ship maintenance and labor costs. He stated that
the subcommittee worked with the department on control of
the expenditures. He added that the Alaska Marine Highway
employed new technology in their older boats to address
fuel efficiency.
9:58:28 AM
Senator McGuire expressed that the Alaska Marine Highway
system was an undervalued asset in the state. She advocated
for collaboration with British Columbia and Washington to
bring the ferry systems into alignment and provide further
revenue.
9:59:23 AM
Senator Olson expressed concern regarding the deferred
maintenance of airports. He queried solutions to funding
deferred maintenance projects for airports.
Co-Chair Stedman deferred to his committee aide.
10:00:17 AM
Senator Olson offered to meet with Co-Chair Stedman about
the issue.
10:00:32 AM
DEPARTMENT OF REVENUE
Co-Chair Stedman explained the Department of Revenue's
(DOR) budget recommendations.
The Senate Finance Budget Subcommittee for the
Department of Revenue submits the following FY13
Operating Budget Recommendations to the Senate Finance
Committee:
Fund Source 13 Adj Base Gov Amd Sen Sub Difference
Unrestricted GF $31,020.5 $31,833.9 $31,833.9 $0
Designated GF $ 9,549.9 $9,615.1 $ 9,615.1 $0
Other Funds $195,767.6 $213,078.6 $208,342.3 $-4,736.3
Federal Funds $74,669.8 $74,884.2 $74,884.2 $0
0
Total $311,007.8 $329,411.8 $324,675.5 $ -4,736.3
Positions 13 Adj Base Gov Amd Sen Sub Difference
PFT 875 883 881 -2 0
PPT 36 36 36 0 0
Temp 19 19 19 0 0
Total 930 938 936 -2 0
The Subcommittee met with the Department and accepted
the Governor's amended budget with the following
exceptions:
Budget Action
ALASKA HOUSING FINANCE CORP OPERATIONS
• Denied a $2,476,300 increment in CIP receipts for
additional operating costs for the Alaska Gasline
Development Corporation.
ALASKA PERMANENT FUND CORP OPERATIONS
• Denied a $185,000 increment in Corporation
Receipts for merit based and vacancy management
increases.
• Denied a $155,000 increment in Corporation
Receipts for due diligence increases.
• Reduced the request for two new exempt positions.
The department requested a fixed income investment
officer and an accountant to be funded with Permanent
Fund receipts at $205,000 and $90,000 respectively.
The subcommittee approved the fixed income investment
officer position and denied the accountant position.
• Denied the $230,000 request in Permanent Fund
receipts to fund a co-investment position.
10:02:31 AM
DEPARTMENT OF LAW
Co-Chair Stedman discussed the subcommittee recommendations for
the Department of Law (DOL). He stated that the recommendation
advocated for $2,900,000 or 3 percent less than the governor's
amended budget.
The Senate Finance Budget Subcommittee for the
Department of Law submits the following FY13 Operating
Budget Recommendations to the Senate Finance
Committee:
13 Adj
Fund Source Base Gov Amd Sen Sub Difference
Unrestricted
$54,448.1
GF $65,081.2 $62,181.2 $ -2,900.0
Designated GF $2,660.0 $2,695.0 $2,695.0 0
Other Funds $26,327.5 $27,499.8 $27,499.8 0
Federal Funds $1,965.9 $1,965.9 $1,965.9 0
Total $85,401.5 $97,241.9 $94,341.9 $ -2,900.0
13 Adj
Positions Base Gov Amd Sen Sub Difference
PFT 569 570 570 0
PPT 3 3 3 0
Temp 0 0 0 0
Total 572 573 573 0
The Subcommittee met with the Department and accepted the
Governor's amended budget with the following exceptions:
Budget Action
CIVIL DIVISION
· Designated the funding for Outside Counsel
Non-Gasline as One Time Increments.
· Denied the $2,900,000 request for Gas Pipeline
Outside Counsel and Experts.
10:03:00 AM
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
Senator Thomas presented the Department of Labor and Workforce
Development's (DLWD) budget recommendations.
Worker's Compensation - Occupational Safety & Health
Appropriation
o $220 Workers' Compensation Benefits Guaranty Fund
for grant expenditures for anticipated benefit
payments
o $103.2 Workers' Compensation Benefits Guaranty Fund
to fund a Collections Officer. Since its inception
in FY05, the Workers Compensation fraud unit has
assessed $3.5 million in penalties, but collected
only 46 percent of that total. An existing vacant
position will be used for this increment.
· Labor Standards & Safety
o $2,000 in Unrestricted General Funds to replace
unrealizable Workers' Safety and Compensation
Administration Account authority. These funds will
allow the State of Alaska to avoid a federal
takeover of safety and health enforcement, a
development which the subcommittee and the
department vehemently oppose. This fund has a
structural problem arising from operating and
capital expenditures from the fund in prior fiscal
years. Addressing this issue should be tackled in
FY14.
· Business Partnerships
o $373.6 in State Training & Employment Program Funds
to provide additional training opportunities for
Alaskans
· Alaska Vocational Technical Center
o $226.8 UNRESTRICTED GENERAL FUNDS and $100 in
Designated General Funds to establish a new
registered nurse training program. This program
will leverage additional dollars from an existing
federal grant awarded to the Cook Inlet Tribal
Council. House did not approve this funding. AVTEC
will utilize an existing position to staff the
program.
o $250 Unrestricted general funds to replace
unrealized program receipts. This is a one-time
item. This matches the $250 UNRESTRICTED GENERAL
FUNDS included in the FY12 Supplemental Budget.
This item was not funded by the House. The
subcommittee has inserted intent language directing
the department to report back to the legislature on
efforts to utilize AVTEC's grant writer position
funded in FY12 to secure grant funding to support
AVTEC's mission.
· We propose the following decrements:
o For the Division of Business Partnerships
ƒ$1,500 in Federal Receipts to eliminate a
portion of their unrealizable federal receipt
authority.
· We propose including the following increments:
o For the division of Business Partnerships
ƒ$85 in UNRESTRICTED GENERAL FUNDS as a grant to
the Alaska State Hospital and Nursing Home
Association for the design and implementation
of a perioperative nursing program. The Alaska
Perioperative Nursing Consortium has been
formed by ASHNHA and six Alaska hospitals to
train up to 30 operating room nurses in the
first year. This will address a growing need
for specialty nurses within Alaska, a need that
is currently met by using high-priced traveling
nurses from out of state. Information provided
by ASHNHA on the program can be found in your
packet. This is a one-time item. State funds
will be matched by at least $100,000 in funds
from the participating hospitals.
ƒ$150 in UNRESTRICTED
GENERAL FUNDS for the Alaska Works Partnership
Rural Apprenticeship Outreach Training Program.
Information on this program can be found in
your packet, along with letters of support from
program trainees. This is an eleven year old
program providing travel assistance,
application and interview training, math
courses and support services for rural Alaskans
interested in pursuing training and employment
as a registered apprentice. In 2011, 93
Alaskans participated in the program and 34
applicants became trade apprentices. Denali
Commission also provides matching funds. This
is a one-time item.
o For the Division of Employment Security
ƒ$150 in UNRESTRICTED GENERAL FUNDS for the
Alaska Works Partnership Helmets to Hardhats
Program. Helmets to Hardhats helps connects
veterans of the American Armed Services with
quality career training opportunities in
construction trades. Over 2000 Alaska veterans
received notices from the program last year
informing them of training and job
opportunities, and 33 veterans utilized Helmets
to Hardhats services to enter construction
trade apprenticeships during the year. More
information on this program can be found in
your packet.
Senator Thomas thanked the members of the subcommittee.
10:06:29 AM
DEPARTMENT OF NATURAL RESOURCES
Senator Thomas submitted the Department of Natural Resources
(DNR) budget recommendations.
FY12 Mgt FY13 Adj Senate
Pln Base Governor House Subcom
Unrestricted
76,240.0 69,635.4 78,805.8 78,818.5 78,659.2
GF
26,229.9 26,070.0 25,927.6 25,927.6 25,927.6
Designated GF
35,353.9 35,396.1 38,378.0 38,378.0 38,378.0
Other
15,961.7 14,099.3 22,552.7 22,552.7 22,552.7
Federal Funds
165,664.165,676.165,517.
153,785.5 145,200.8
Total 1 8 5
Position Changes in DNR:
FY12 Mgt FY13 Adj Governor Senate
Pln Base House Subcom
757 743 742 743 743
PFTs
248 243 242 242 243
PPTs
95 95 96 96 96
Temps
1.
a. Department-wide Position Deletions and Funding
Redistribution:
i. $587.2 UGF: The agency determined where funded
vacant positions could be eliminated in order
to make funding available elsewhere in the
agency. Several decrements and increments were
proposed and accepted.
b. Office of Project Management & Permitting
i. $571 UGF to replace unsustainable operating
budget spending from the Land Disposal Income
Fund.
ii. $2,000 Statutory Designated Program Receipts
Large Project Receipt Authority.
iii. $75 UGF & $75 Inter-Agency Receipts for a
Project Coordinator for the Susitna Hydro
Project and Federal Resource Policy
c. Division of Oil & Gas
i. $776.1 UGF to replace unsustainable operating
budget spending from the Land Disposal Income
Fund.
ii. $300 UGF for Arbitration of Oil and Gas Royalty
Issues.
d. Division of Mining Land and
Water
i. $2,894.1 UGF & $105 DGF for Improving Service
and Permitting.
i. $950 UGF for Maintaining Staffing for
Permitting Initiative.
ii. $150 UGF for Guide Concession Program
Development. This is a One-Time Item.
iii. $50 UGF for Offshore Lease Sales Oversight at
Nome Gold Dredging Operations.
iv. $45 UGF for Sanitation Facilities at Kasilof
River Special Use Area
e. Division of Geologic & Geophysical Surveys
i. $200 UGF for Accelerated Geologic Map and
Report Production & Baseline Aquifer Mapping.
f. Fire Suppression
i. $516.7 UGF for Fire Suppression
Preparedness Fixed Cost Increases
i. $8,500.0 Federal Receipts for Fire
Suppression Activity Increased Federal
Estimate.
2. Modified the Governor's amended FY13 budget proposed
increments & decrements for:
a. Resource Development Appropriation - AGIA Line
Items: It is the recommendation of the subcommittee
that proposed AGIA increments be funded as onetime
items in the FY13 Operating Budget:
i. $400 UGF OTI for AGIA Commercial Monitor &
Advisor
1. This is a $400 decrease from the
Governor's request and the amount funded
by the House. The FY12 Supplemental
Budget contains a $1,200 multi-year carry
forward of unexpended funds for AGIA-
related work.
ii. $1,290.0 UGF OTIA for AGIA Coordinator's Staff
and Capacity
iii. $1,150.0 UGF OTI for AGIA Contractors &
Consultants
3. The Subcommittee adopts the following amendments to the
Governor's proposed FY13 budget for the Department of
Natural Resources:
a. Parks & Outdoor Recreation
i. $208.4 for Improving Services and Access in
State Parks.
b. Commissioner's Office
i. $100 UGF for Support for Existing Staff Levels.
ii. $50 UGF for Statewide Resource Development
Initiatives. This is a One-Time item.
c. Mining Land & Water
i. $45 UGF for Sanitation Facilities at Kasilof
River Public Use Area
4. Differences from House Finance
a. Resource Development
i. AGIA Items - The Senate funds AGIA lines as
onetime items, the House puts the funding into
the base. This is the same structure adopted
in the FY12 Operating Budget.
ii. Guide Concession Area Program - The Senate
funded the $150 UGF item that is supported by
the department, the governor and the Board of
Game. The other body funded the item at $75
UGF.
iii. Parks & Outdoor Recreation - The House funded
only the salary of the Lower Chatanika State
Recreation Area Ranger at $87.7 UGF and did not
fund the Southeast Region seasonal parks
technician.
iv. Commissioner's Office - The House funded this
$150 increment as a single item. The Senate
split out the marketing effort dollars from the
requested funds for existing personnel, and
makes the marketing dollars a one-time item.
v. Mining Land & Water: The House did not include
funding for Sanitation Facilities at the
Kasilof River Special Use Area.
5. Intent Language
a. The Subcommittee recommends the following intent
language be inserted into the budget:
i. Statewide Resource Development Initiatives: It
is the intent of the legislature that the
department report back on the efficacy of
marketing efforts and present a multi-year plan
for marketing statewide resource development
efforts.
ii. Land Disposal Income Fund: It is the intent of
the legislature that the Administration report
back with 1) a plan to stabilize the Land
Disposal Income Fund and 2) a report detailing
the effects of utilizing the fund solely to
enhance state land disposal efforts.
Senator Thomas thanked the members of the subcommittee.
10:11:35 AM
Senator Olson commented on the television series "Bering Sea
Gold," which contributed $9.3 million in revenue from leases. He
stated that his Nome constituents expressed concern about the
influx of people and their potential stress on social services.
10:12:47 AM
ALASKA COURT SYSTEM
Senator Egan thanked the members of the Court System
subcommittee. He presented the Court System subcommittee's
budget recommendations.
10:13:45 AM
JESSE KIEHL, STAFF, SENATOR DENNIS EGAN, highlighted the Court
System's subcommittee's budget recommendations.
The Senate Finance Budget Subcommittee for the Alaska Court
System submits an Operating Budget to the Senate Finance
Committee for FY 13 as follows:
FY12 Mgt FY13 Adj Gov Senate
Pln Base Amend+ Subcom House
Unrestricted GF 101,089.6 104,743.1 107,287.6 106,355.7 106,421.5
Designated GF 518.0 518.0 518.0 518.0 518.0
Other 2,106.0 1,196.7 1,914.5 1,914.5 1,914.5
Federal Funds 1,675.6 1,675.6 1,675.6 1,675.6 1,675.6
Total 105,389.2 108,133.4 111.395.7 110,463.8 110,529.6
Positions
PFTs 758 758 768 765 764
PPTs 48 48 48 47 48
Temps 21 21 21 21 21
Total Positions 827 827 837 833 833
The Subcommittee held four meetings with the Court System
and took the following actions:
Budget Action
The subcommittee accepted the Governor's amended proposal
with the following adjustments:
• Denied three requests for $426.2 across the Court
System for implementing an increased geographic pay
differential. This is the second-largest increment request
submitted, but is not a contractual obligation of the
state, nor does funding it improve services to the public
since the Court System has seen a drop in staff turnover in
recent years.
• Denied requests in the appellate courts for
furnishings and a staff attorney position upgrade.
• Denied a request for $134.2 GF to add a second
magistrate trainer.
• Denied $175.0 GF for computer replacements. The Court
system has sufficient funds in its base budget to replace
its technology and the subcommittee commends the Court
System's ongoing careful management.
• Denied a request to lease a new custom-built court
space in Emmonak. The Emmonak location has not seen
sustained caseload increases, and deficiencies in the
existing space can be addressed with the landlord.
• Funded a request for $50.0 GF/MH to continue the
Anchorage Operator Without a License court, as a one-time
item. The Court System should collect outcome and cost
saving data to enable the legislature to further evaluate
ongoing funding.
• Reduced a request for $326.7 GF and three
administrative positions to $113.5 and one PFT for a
contracts & leasing manager, Range 18A.
• Deleted one Permanent Part Time position added in FY
12. The Court System used domestic violence coordinator
funds to expand the duties of an existing position.
• Added $176.4 GF to pay the increased lease costs for
the Nome Courthouse. This cost increase has been
anticipated for several years, and is not avoidable until a
new state office building is constructed in Nome.
10:16:44 AM
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
Senator Egan thanked the members of the Department of Education
and Early Development (DEED) subcommittee.
The Senate Finance Budget Subcommittee for the Department
of Education & Early Development submits an Operating
Budget to the Senate Finance Committee for FY 13 as
follows:
FY12 Mgt FY13 Adj Senate
Pln Base Gov Amend+ Subcom House
Unrestricted GF 1,227,690.9 1,207,132.0 1,244,593.2 1,212,748.0 1,207,409.6
Designated GF 13,958.4 13,981.8 15,064.3 15,064.3 15,064.3
Other 25,058.7 25,177.5 25,087.8 25,087.8 25,087.8
Federal Funds 285,400.9 233,605.7 233.790.2 233,790.2 233,790.2
Total 1,552,108.9 1,479,897.0 1,518,535.5 1,486,690.3 1,481,351.9
Positions
PFTs 336 332 332 332 332
PPTs 14 14 14 14 14
Temps 7 8 8 8 8
Total Positions 357 354 354 354 354
The Subcommittee held five meetings with the department and
took the following actions:
Budget Action
Accepted the Governor's amended proposal with the following
adjustments:
· While subcommittees do not close out on language
transactions, we note the governor recommended a one-time
$30.3 million appropriation to school districts. The
subcommittee strongly recommends the full Finance
Committee deny this request in favor of funding an
increase to the Base Student Allocation, as passed by the
full senate.
· Added a one-time $330.0 grant to the North Slope Borough
School District for the third year of its Curriculum
Alignment, Integration, & Mapping project. The resulting
educational tools will be made available to other school
districts in the state upon completion of the project.
· Moved the base funding of $2,000.0 for the Pre-
Kindergarten program to a separate allocation within the
Division of Teaching & Learning Support. The subcommittee
found that the program is highly effective, and its
continued funding is a linchpin of the Moore v. State
settlement.
· Added $2,000.0 to the Pre-Kindergarten program in keeping
with the department's original plan to increase funding
by $2 million per year until a statewide level of $10
million is reached. The department will complete the
grants every two years.
· Added $1,000.0 to the AlaskAdvantage Education Grant
program, bringing the funding level to $4 million. FY 12
need was more than $7 million, which shows the importance
of increasing funds. A funding level of $4 million will
maintain the 2/3 Performance Scholarship, 1/3 needs-based
grant ratio established in FY 12.
· Denied the governor's requested Alaska Housing
Capital Corporation fund increment for the Alaska
Performance Scholarship program of $2,000.0, then
decremented $2,900.0 AHCC from the budget base. This
leaves $3.1 million remaining, an amount sufficient to
fund the current cohort of students (including a buffer
for summer term attendees not yet awarded scholarships).
The governor committed not to use the $400 million set
aside for this program until an endowment structure was
in place. While the $400 million is likely to earn the
$3.1 million needed in the current fiscal year, it is not
expected to earn the $8 million the governor requested.
The subcommittee recommends funding a second cohort
through the fiscal note to HB 104.
10:18:10 AM
Senator Egan stated that the governor recommended a one-time
$30.3 million appropriation to school districts. The
subcommittee strongly recommended that the full finance
committee deny the governor's request in favor of funding an
increase of the base student allocation as passed by the full
Senate in SB 171.
10:18:19 AM
Mr. Kiehl explained that the subcommittee's recommendation
funded the governor's amended budget for DEED with relatively
few changes.
Accepted the Governor's amended proposal with the following
adjustments:
• While subcommittees do not close out on language
transactions, we note the governor recommended a one-time
$30.3 million appropriation to school districts. The
subcommittee strongly recommends the full Finance Committee
deny this request in favor of funding an increase to the
Base Student Allocation, as passed by the full senate.
• Added a one-time $330.0 grant to the North Slope
Borough School District for the third year of its
Curriculum Alignment, Integration, & Mapping project. The
resulting educational tools will be made available to other
school districts in the state upon completion of the
project.
• Moved the base funding of $2,000.0 for the Pre-
Kindergarten program to a separate allocation within the
Division of Teaching & Learning Support. The subcommittee
found that the program is highly effective, and its
continued funding is a linchpin of the Moore v. State
settlement.
• Added $2,000.0 to the Pre-Kindergarten program in
keeping with the department's original plan to increase
funding by $2 million per year until a statewide level of
$10 million is reached. The department will complete the
grants every two years.
• Added $1,000.0 to the AlaskAdvantage Education Grant
program, bringing the funding level to $4 million. FY 12
need was more than $7 million, which shows the importance
of increasing funds. A funding level of $4 million will
maintain the 2/3 Performance Scholarship, 1/3 needs-based
grant ratio established in FY 12.
• Denied the governor's requested Alaska Housing Capital
Corporation fund increment for the Alaska Performance
Scholarship program of $2,000.0, then decremented $2,900.0
AHCC from the budget base. This leaves $3.1 million
remaining, an amount sufficient to fund the current cohort
of students (including a buffer for summer term attendees
not yet awarded scholarships). The governor committed not
to use the $400 million set aside for this program until an
endowment structure was in place. While the $400 million is
likely to earn the $3.1 million needed in the current
fiscal year, it is not expected to earn the $8 million the
governor requested. The subcommittee recommends funding a
second cohort through the fiscal note to HB 104.
Attached Reports (numbers and language)
1. Agency Totals - FY 13 Operating Budget - Senate
Structure
2. Appropriation/Allocation Summary (GF) - Senate
Structure
3. Appropriation/Allocation Summary (all funds) - Senate
Structure
4. Transaction Comparison (Adj. Base and Senate Subcom)
5. Transaction Comparison (Gov. Amd+ and Senate Subcom)
6. Transaction Comparison (House and Senate Subcom)
7. Wordage Report - FY 13 Operating Budget - Senate
Structure
10:23:00 AM
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Senator McGuire thanked the members of the subcommittee for the
Department of Environmental Conservation (DEC).
Fiscal Year 2013 Recommendations
The Senate Finance Budget Subcommittee for the Department
of Environmental Conservation submits an Operating Budget
to the Senate Finance Committee for FY 13 as follows:
Fund Source FY 13 Sen Sub GovAmd+ to Sen
GovAmd+ Sub
General Funds $21,062.8 $21,146.8 $84.0
Designated General $26,967.6 $26,883.6 -$84.0
Funds
Federal Funds $24,227.8 $24,227.8 $0.0
Other Funds $11,294.1 $11,294.1 $0.0
Total $83,552.3 $85,552.3 $0.0
Positions FY 13 Sen Sub GovAmd+ to Sen
GovAmd+ Sub
PFT 541 541 0
PPT 0 0 0
Temp 11 11 0
The Subcommittee held three meetings with the Department of
Environmental Conservation and recommends adopting the
Governor's FY 13 amended request for the Department of
Environmental Conservation with the following change:
1. The Subcommittee recommends a fund source change for
the Governor's proposed increment in the Environmental
Health appropriation, Laboratory Service allocation, to add
funding for one microbiologist to continue support for
shellfish (including Dungeness crab) from general
fund/program receipts to unrestricted general funds.
Additional Recommendations:
The Subcommittee also strongly recommends that the Finance
Committee support funding for the construction of fish
cleaning stations (TPS # 58603v1) to support the Kenai
River Dipnet fishery in the FY 13 capital budget. The
subcommittee heard testimony from the Department and
Senator Wagoner about the health and safety issues created
by the influx of dipnetters and associated fish-waste
created by the fishery.
10:26:20 AM
Senator McGuire pointed out a document distributed to committee
members regarding the oil spill and hazardous clean-up funds
(copy on file). She highlighted a projected shortfall in the
fund predicted for 2014. She stressed that the "clean-ups" were
essential to the safety of Alaskans. She stated that she
provided the committee samples of the concerning sites. She
mentioned findings of contamination such as gasoline and diesel
and benzene. She noted that the reason, under FY 09 actions,
removal of all contaminated soil was not completed was because
of limited resources. She declared it an obligation of Alaska to
clean up its sites. She pointed out a statutory requirement that
did not require the agency responsible or the state to pay for
the clean-up, resulting in DEC's unallocated clean-up costs. She
noted that the department regarded clean-up as a priority, but
believed that either a change in statute or an increase in
funding was necessary to solve the problem. She requested a plan
from the department.
10:28:53 AM
Co-Chair Hoffman agreed that if the state demanded that the
federal government clean-up, the state should steward the land
appropriately.
10:29:17 AM
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Senator McGuire presented the budget recommendations for
Department of Military and Veterans Affairs (DMVA).
The Senate Finance Budget Subcommittee for the Department
of Military and Veterans Affairs submits an Operating
Budget to the Senate Finance Committee for FY 13 as
follows:
Fund Source FY 13 GovAmd+ Sen Sub GovAmd+ to Sen Sub
General $22,048.8 $21,858.8 -$190.0
Funds
Federal $51,838.3 $25,142.7 -$26,695.6
Funds
Other Funds $16,556.9 $16,556.9 $0.0
Total $90,444.0 $63,558.4 -$26,885.6
Positions FY 13 GovAmd+ Sen Sub GovAmd+ to Sen Sub
PFT 338 338 0
PPT 2 2 0
Temp 2 2 0
The Subcommittee held three meetings with the Department of
Military and Veterans Affairs and recommends adopting the
Governor's FY 13 amended request for the Department of
Military and Veterans Affairs with the following changes:
1. The Subcommittee concurs with the actions taken by the
House to reduce the Governor's FY 13 request by
recommending:
i. An increment of $20,000 of unrestricted general funds
in the Office of the Commissioner allocation for employee
education reimbursement costs. The Governor's FY 13 request
for this item was for $60,000 of unrestricted general funds
as an ongoing appropriation.
ii. A one-time increment of $100,000 of unrestricted
general funds in the Veterans' Services allocation to fund
increased travel and outreach. The Governor's FY 13 request
for this item was for $250,000 of unrestricted general
funds as an ongoing appropriation.
iii. A decrement of $3,400,400 of federal funds in the
Alaska Aerospace Corporation allocation, and a decrement of
$23,295,200 of federal funds in the Alaska Aerospace
Corporation Facilities Maintenance allocation. These
appropriations are currently excess authorization.
2. The Subcommittee does not concur with the actions
taken by the House and instead recommends:
i. An increment of $248,600 of unrestricted general funds
in the Veterans' Services allocation to move the Veterans'
Services office off base. The Governor's FY 13 request for
this item was for $300,000 of unrestricted general funds as
an ongoing appropriation.
i. The initial startup costs for moving the office of
$51,400 of unrestricted general funds are recommended as a
one-time item.
ii. An increment of $1,000,000 of unrestricted general
funds in the Alaska Aerospace Corporation allocation for
the Alaska Aerospace Corporation's operations and
maintenance.
i. An increment of $549,000 of unrestricted general funds
in the Alaska Aerospace Corporation allocation for the
Alaska Aerospace Corporation's operations and maintenance
is recommended as a one-time item.
iii. An increment of $3,000,000 of unrestricted general
funds in the Alaska Aerospace Corporation Facilities
Maintenance allocation for the Alaska Aerospace
Corporation's facilities maintenance and operations.
i. An increment of $3,451,000 of unrestricted general
funds in the Alaska Aerospace Corporation Facilities
Maintenance allocation for the Alaska Aerospace's
facilities maintenance and operations is recommended as a
one-time allocation.
Additional Recommendations:
The Subcommittee also recommends that the Department work
with the Governor and introduce a bill in the next
legislative session to clarify authorization of, and
funding for the Alaska Military Youth Academy.
10:35:15 AM
AT EASE
10:35:56 AM
RECONVENED
10:36:02 AM
Co-Chair Stedman MOVED to ADOPT all subcommittee reports as
submitted. Seeing NO OBJECTION it was SO ORDERED.
10:36:32 AM
Co-Chair Stedman MOVED to allow Legislative Finance Division to
make any necessary conforming and technical changes needed to
draft a new Committee Substitute.
10:37:12 AM
AT EASE
10:38:23 AM
RECONVENED
10:38:31 AM
Co-Chair Hoffman thanked the various chairmen and their
respective subcommittees.
10:39:16 AM
Co-Chair Stedman MOVED to ADOPT the proposed committee
substitute for CSHB 284(FIN), Work Draft 27-GH2599\O (Bailey,
3/26/12). There being NO OBJECTION it was so ordered.
10:39:45 AM
Co-Chair Stedman MOVED to ADOPT SB 285 the proposed committee
substitute for CSHB 285(FIN), Work Draft 27-GH2599\D (Bailey
3/26/12). There being NO OBJECTION it was so ordered.
10:40:14 AM
Mr. Grussendorf explained the changes to the numbers section of
the bill. He explained that the changes incorporated all
subcommittee recommendations as presented to the committee. He
noted four changes in the language section of the bill. The
first change was found on page 60, line 20 concerning payments
for the Low-Income Home Energy Assistance Program (LIHEAP)
estimated at $10,620,300. He clarified that the amount was an
estimate, which might change. The second change, found on page
64, line 17 concerning the department's fuel trigger. He
stressed that the legislature was not adding more money to the
fuel trigger, but instead, changing the 8 percent cap to 10
percent. The change allowed the university to appeal to the
administration for an increased cap.
Mr. Grussendorf continued with another change on line 25, an
appropriation for $2.9 million to the Office of the Governor to
cover the proposed initiative for the Coastal Zone Management
Initiative. The final change on page 73, line 5 included
$35,512,300 appropriated to the regional education attendance
area school fund. The item was formerly in the governor's
capital budget, but the committee believed that it was better
placed in the operating budget due to the fact that it was
formula driven.
10:43:24 AM
Mr. Grussendorf explained the changes to HB 285. He stated that
historically the house removed the first project in the mental
health bill and removed the remainder. The Senate then funded
the remainder and removed the first project making the entire
bill conference-able.
10:43:45 AM
KAREN REHFIELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
thanked the committee and staff for the work done with the
administration's proposal. She anticipated further discussion
regarding the differences between the Senate and the House
committee substitutes in preparation for the conference
committee process.
10:44:54 AM
Co-Chair Hoffman voiced that the proposed budget addressed many
issues facing Alaska. He announced the public hearing process
scheduled for March 28, 2012. He stated that the CS was
available on the LFD website and BASIS would link the work draft
for the public's viewing.
10:45:18 AM
AT EASE
10:46:27 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 284 work draft version O.pdf |
SFIN 3/27/2012 9:00:00 AM |
HB 284 |
| HB 285 work draft version D.pdf |
SFIN 3/27/2012 9:00:00 AM |
HB 285 |
| CSSB 203 work draft D 3-26-12.pdf |
SFIN 3/27/2012 9:00:00 AM |
SB 203 |
| CSSB 203 description of D version 3-26-12.docx |
SFIN 3/27/2012 9:00:00 AM |
SB 203 |
| CSSB 203 summary of changes D version 3-26-12.docx |
SFIN 3/27/2012 9:00:00 AM |
SB 203 |