Legislature(2007 - 2008)HOUSE FINANCE 519
03/22/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Adjourn | |
| Start | |
| HB95 || HB96 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 95 | TELECONFERENCED | |
| += | HB 96 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HOUSE BILL NO. 95
An Act making appropriations for the operating and loan
program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date.
HOUSE BILL NO. 96
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.
1:39:20 PM
Representative Gara MOVED to ADOPT Amendment HSS #10:
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Human Services Community Matching
Grants
ALLOCATION: Human Services Community Matching
Grants
ADD: $300,000 GF
EXPLANATION: Human Services Community Matching Grants
provide essential health and human services to people
in need. Since the 1980's, the program has helped
distribute state, municipal, and private funds to non-
profit agencies who deliver meals to the hungry, help
place unemployed residents in jobs, offer emergency
shelters and crisis counseling to disaster victims,
provide social service contacts, and meet other basic
needs.
Funding for these grants has declined in recent years.
Anchorage, for example, has lost more than 40% in state
human services grants since 2001. These grants are
investments in our state, as these services are much
cheaper to fund upfront than deal with later
consequences when individuals' situations have become
more serious.
Vice Chair Stoltze OBJECTED.
Representative Gara explained that the amendment updates the
amount of money put into Human Services Matching Grants. He
listed the groups that have lost funding over the years.
1:41:48 PM
Representative Hawker commented about the reduction. He
pointed out that the subcommittee restored the funding level
eliminated by the administration's proposal. He spoke
against supporting the amendment.
Representative Gara proposed that the amendment would save
money. He agreed with Representative Hawker's analysis of
how the money was restored, preventing it from going to
faith-based initiatives.
1:42:54 PM
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
1:43:49 PM
Representative Gara MOVED to ADOPT Amendment HSS #11:
DEPARTMENT: Department of Health and Human
Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavior Health Grants
ADD: $220.0 General Fund/Mental Health
EXPLANATION: To support the Trust's recommendation for
project start-up. Soteria-Alaska's mission is to
assist those with mental illness to get back on track
without relying on pharmaceutical drugs.
Representative Hawker OBJECTED.
Representative Crawford stated that the amendment would
provide a way to help children who are overmedicated. It is
a mental health approach that works for some and returns to
the use of therapy.
Representative Hawker stated that the concept of peer-
supported services as an alternative to a medical regime was
explored in subcommittee. He recommended adding $100,000
for the service. He suggested a coordinated effort with
API. He assured that the Mental Health Trust would bring it
forward next year.
Representative Nelson added that in every instance of school
violence, the perpetrator had been using psychotropic drugs.
Class rooms are becoming so large and many teachers are
relieved when children are placed on these drugs. She said
she was nervous about the trend. She supported other
avenues than using drugs.
Representative Gara noted that the Mental Health Trust Board
recommended funding for Soteria. He requested that
supporters of the program testify.
Representative Crawford suggested that this is a new
approach being proposed and he encouraged support for it.
1:52:37 PM
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
1:53:17 PM
Representative Nelson MOVED to ADOPT Amendment HSS #12:
DEPARTMENT: Health and Social Services
APPROPRIATION: Public Assistance
ALLOCATION: Energy Assistance Program
ADD: $8,800.0 GF
EXPLANATION: Funding to expand the state's ability to
provide energy assistance to low income individuals
throughout the state. The state's efforts are
currently capped by available funding, leaving many low
income individuals without assistance in meeting the
high costs of home heating and electricity.
Representative Hawker OBJECTED.
Representative Nelson explained that the amendment would
provide a match to a federal low income heating assistance
program. She spoke of an increased need for this
assistance. She described how the federal dollars were
distributed in the past. She referred to the gift of fuel
to Alaska from Venezuela.
1:57:02 PM
Representative Crawford commented on the "good times" from
the past two-year price of oil. He stressed that passing
Amendment HSS 12 is the "right thing to do".
Representative Kelly reiterated support for the heroes that
turned down the offer from Venezuela.
Co-Chair Chenault pointed out that it had been a federal
program. The majority of the increase in cost is due to
ferry system fuel, not just heating fuel. The program was
brought forward last year to keep the high price of oil
costs out of the budget. He spoke to keeping money in state
coffers, noting programs such as Power Cost Equalization
(PCE) to bring costs down in rural Alaska. He did not
support the amendment.
Representative Joule commented on a survey in Kotzebue last
year regarding the effects that huge increases in heating
fuel costs had on the elders. The elders had to make
choices between fuel and food. He maintained that if the
government could help, from its wealth of resources, it
should.
Representative Kelly added comments recommending cutting
more wood. He thought there were other options.
Representative Nelson voiced gratitude for those people that
accepted the gift of fuel from South America. She noted the
different costs for stove oil and propane. She expressed
gratitude for PCE in her district. The average household's
energy consumption in Alaska is 25% electric and 75%
transportation and stove oil. She pointed out that her
community does not have electric heat, and fuel prices have
increased three-fold. She related that people are just
trying to stay even.
2:07:35 PM
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
2:08:16 PM
Representative Nelson MOVED to ADOPT Amendment HSS #13:
DEPARTMENT: Department of Health and Social
Services
APPROPRIATION: Longevity Bonus Program
ALLOCATION: Longevity Bonus Grants
ADD: $29,430.0 GF
EXPLANATION: This amendment funds the Governor's
request to reinstate the Longevity Bonus Program.
Representative Nelson explained.
Representative Hawker OBJECTED.
2:09:28 PM
Representative Hawker pointed out testimony in subcommittee
by the Department of Law to the effect that reinstating the
Longevity Bonus Program will require further statutory
language. He maintained that not including this program in
the budget is not a statement against seniors. Further
legislation is pending. He noted that discussion of an
alternative plan would take place in the HESS committee
shortly.
Representative Gara stated that the Attorney General's
opinion was that the statute may or may not need to be
changed. Currently, the way it reads is that anyone who got
the longevity bonus last year gets it this year. He
maintained that the longevity bonus was a promise, as was
Senior Care. The prudent thing to do is to pass the
appropriation.
2:12:30 PM
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
2:13:12 PM
Representative Nelson MOVED to ADOPT Amendment HSS #14:
DEPARTMENT: Health and Social Services
APPROPIRATIONS: Children's Services
ALLOCATIONS: Infant Learning Program Grants
ADD: $700.0 GF
EXPLANATION: This will bring the total grant increase to $1
million above FY 07.
Representative Hawker OBJECTED.
Representative Nelson explained that the Infant Learning
Program provides education, therapy, and other support
services for infants and toddlers with special needs. Many
Alaskan children are not receiving these services during the
brief window when they are most effective.
Representative Hawker stated that the Department did receive
an increment in this category and he does not support the
amendment.
2:15:05 PM
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
2:15:39 PM
Representative Joule MOVED to ADOPT Amendment HSS #15:
DEPARTMENT: Health and Social Services
APPROPRIATION: Departmental Support Services
ALLOCATION: Office of Faith-Based and Community
Initiatives
ADD: $500.0 GF
EXPLANATION: Funding for Human Services grants for
areas that are ineligible to receive Human Services
Matching grants. Provides match funding for the FBCI
to oversee the development of grant programs that are
consistent with the federal compassion capital grant
fund program.
Add Intent language as follows:
"It is the intent of the legislature that the grant
funding provided through the Office of Faith Based and
Community Initiatives be utilized to fund programs in
regions other than the three urban areas receiving
Human Services Matching grants."
Representative Hawker OBJECTED.
Representative Joule explained that the amendment would
provide funds for grants for areas that are ineligible to
receive Human Services Matching grants - outside of the
three urban areas.
2:19:33 PM
Representative Hawker responded that he supports the control
determination regarding investing public money for human
services. That was the idea behind the human services block
grants. The grants were designed statutorily and targeted
to the larger urban populations. The model is excellent
regarding providing services in the communities. He thought
that to add this allocation without the sidebars was not
appropriate.
2:22:21 PM
Representative Gara stated that the authority to administer
grant funding rests with the Office of the Governor or the
Department of Health and Social Services. He encouraged
further thought on the human service matching grants for
rural areas.
Representative Joule expected that it will be successful and
accountable whenever it happens. Rural Alaska is trying to
"add value to the individual".
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
2:26:17 PM
Co-Chair Meyer MOVED to ADOPT Amendment LABOR #1.
DEPARTMENT: Department of Labor and Workforce
Development
APPROPRIATION: Vocational Rehabilitation
ALLOCATION: Independent Living Rehabilitation
ADD: $100,000 GF
EXPLANATION: A one-time funding increment of $100,000
was granted in FY07. This amendment would establish
the increment as part of Independent Living
Rehabilitation's base budget. These funds would be
used to operate Alaska's Centers for Independent
Living. Centers for Independent Living (CILs) have
increased the number of disabled and senior Alaskans
served by 112% (to 3200) in the past three years, while
receiving relatively flat State funding. Costs to
provide these preventive services that keep people out
of expensive institutions are rising, stretching
Alaska's CILs to the limit of effectiveness. In FY05,
State funding comprised only 9% of the total funding
used to operate Alaska's successful Independent Living
program. CILs leverage State general fund dollars, and
are extremely resourceful, cost-effective agencies
providing necessary services on behalf of the State of
Alaska.
Vice Chair Stoltze OBJECTED.
Co-Chair Meyer explained noted that the allocation was a
one-time fund last year. He pointed out that it is only 9
percent of the Independent Living program's budget.
Representative Crawford noted his support for the amendment.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment LABOR 1 was adopted.
2:28:26 PM
Representative Crawford WITHDREW Amendment LABOR #2. There
being NO OBJECTION, it was withdrawn.
2:28:52 PM
Representative Kelly MOVED to ADOPT Amendment LABOR #3:
DEPARTMENT: Labor
APPROPRIATION: Workforce Development
ALLOCATION: Unemployment Insurance
ADD: $940.0 GF
EXPLANATION: Fund source adjustment from Federal
Receipts to General Fund. This is due to a reduction
in federal funding. With the closure of the Delta,
Tok, Barrow and Glennallen offices, the Fairbanks
office can accurately anticipate an increase in U.I.
calls and services. Fairbanks is a hub for Interior
Alaska and is thereby justified to fund this office.
Co-Chair Meyer OBJECTED.
Representative Kelly spoke to the amendment, which relates
to unemployment insurance call centers. He explained that a
mistake was made in the explanation part of the amendment:
Barrow should be deleted, and Petersburg should be added.
At this time the commissioner has requested additional time
to work on this issue.
Representative Kelly WITHDREW Amendment LABOR #3. There
being NO OBJECTION, it was withdrawn.
2:30:56 PM
Representative Crawford MOVED to ADOPT Amendment LABOR #4:
DEPARTMENT: Department of Labor & Workforce
Development
APPROPRIATION: Commissioner & Administrative
Services
ALLOCATION: Office of Citizenship Assistance
ADD: $117.0 GF
EXPLANATION: This amendment will ensure funding for
one full-time position at the Office of Citizenship
Assistance in Juneau and one full-time position in
Kodiak. Both communities have a large population of
immigrants who are struggling with citizenship issues
and require the State's aide. The office in Juneau has
historically aided all immigrants throughout the state
while the Kodiak office has aided Kodiak residents.
Removing the position from Juneau to Kodiak and
eliminating the position in Juneau would cause great
hardship for not only the citizens of Juneau but all
legal immigrants throughout the state.
Co-Chair Meyer OBJECTED.
Representative Crawford related the history of this budget
item.
2:32:38 PM
Co-Chair Meyer agreed that there was a vacant position in
the Office of Citizenship Assistance in Juneau and a part-
time position vacant in Kodiak. Representative LeDoux
requested that the position in Kodiak be made permanent
because of a high demand for services there. The assumption
was to save dollars for the state by making the position in
Kodiak serve the entire state. He thought that there was
currently a statewide duplication of effort.
Vice Chair Stoltze said he does not support the amendment.
He acknowledged the difficulties associated with the mission
of the Department of Labor.
Representative Crawford pointed out that immigration will
continue. He maintained that the federal government does
not always work to benefit the workforce.
Co-Chair Meyer MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
2:37:43 PM
Representative Crawford MOVED to ADOPT Amendment Labor #5:
DEPARTMENT: Department of Labor and Workforce
Development
APPROPRIATION: Vocational Rehabilitation
ALLOCATION: Independent Living Rehabilitation
ADD: $94,000 GF
EXPLANATION: This increment will support interpreter
referral services for Alaskans who are deaf and hard-
of-hearing. This program allows deaf and hard of
hearing Alaskans, whose primary language is American
Sign Language, to secure and maintain employment and
receive other necessary medical and legal services.
The program has been flat-funded for over 17 years,
while the deaf population is burgeoning in areas like
the Kenai Peninsula, where no interpreter program
currently exists. In areas where services currently
exist, the demand has skyrocketed. For example, in
Southeast Alaska the number of sign language
interpreter requests filled grew from 182 in FY04 to
464 in FY06, an increase of 155%. This increment would
allow more Alaskans to access this service by
increasing funding to current grantees and providing
for a new program in Homer.
Co-Chair Meyer OBJECTED.
Representative Crawford maintained that the amendment would
result in savings "down the road". The program has been
flat funded for the past 17 years. He noted the absence of
deaf interpreters in the state. He maintained that a grant
would be more efficient than a state operation.
Co-Chair Meyer acknowledged that interpreters are served
through grants and that the area served would be the Kenai
Peninsula area. The subcommittee questioned if local
community groups were being maximized. He wondered why the
federal government is not involved since there is an
Americans with Disabilities Act requirement. The intent was
to look into federal funding and local non-profit
opportunities.
Representative Gara noted that the requirements of the
Americans with Disability Act are incumbent upon the state
regardless of federal funding.
Representative Crawford stressed that federal dollars are
leveraged heavily by Independent Living Rehabilitation. He
continued to advocate for the amendment.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
2:44:36 PM
Representative Joule MOVED to ADOPT Amendment Labor #6:
DEPARTMENT: Labor and Workforce Development
APPROPRIATION: Workforce Development
ALLOCATION: Kotzebue Technical Center
Operations Grant
ADD: $300.0 GF
EXPLANATION: The Governor requested general funds to
maintain the operating grant for the Kotzebue Technical
Center at the same level as FY07. This is necessary to
replace one-time fund sources utilized in the
development of the FY07 operating budget. The
subcommittee reduced the Governor's request. This will
restore the Kotzebue Technical Center Operations Grant
to the Governor's requested level.
Co-Chair Meyer OBJECTED.
Representative Joule noted that the $300,000 addition would
help individuals to receive training and to become
independent. He stressed the success rate and noted that
they serve 200 full-time students and 500 part-time
students. He observed the support of village and regional
organizations.
Co-Chair Meyer observed that the governor's request was
originally for $600,000. He noted that federal funds have
been reduced. The Kotzebue Technical Center primarily
trains workers for the Red Dog mine. He predicted that the
pipeline would expand the need for training. The intent was
to match private contributions. He emphasized that
additional funds are received through vocational education
program receipts.
2:51:16 PM
Representative Joule stressed that there are other important
programs. There is currently a health program that trains
personal care attendants and a nursing program. He
emphasized that the Center provides a workforce for the
area.
Representative Gara noted previous arguments against
providing funding for those that do not want to work, and
emphasized that this program provides opportunities for
people that want to work and saves the state funds by
allowing them to become working members.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Hawker, Kelly, Meyer, Chenault
Representative Foster was not present for the vote.
The MOTION FAILED (4-6).
2:56:10 PM
Vice Chair Stoltze MOVED to ADOPT Amendment LAW #1:
DEPARTMENT: Law
APPROPRIATION: Civil Division
ALLOCATION: Labor & State Affairs
ADD: $80,000 GF
EXPLANATION: Employment Law Attorney
st
The Governor's March 1 amendments reduced funding for
½ Employment Law attorney position within the Labor &
State Affairs component. Due to scheduling conflicts,
the subcommittee did not discuss the impact of this
reduction to the component.
After consultation with the Court System and the
Legislative Legal Service division, it was determined
that this position is used to defend the Judicial
System and its employees in non-tort cases. This
position also defends the Legislative Branch and its
employees in non-tort cases. Removal of this funding
would eliminate this service and this amendment would
restore funding for these functions.
In addition, this amendment provides the following
intent language:
It is the intent of the legislature that the
Department of Law continue to provide the current
level of representation for non-tort claims to the
Alaska Court System, the Alaska Judicial Council,
and the Alaska Commission on Judicial Conduct, the
Alaska Legislature and to the officers and
employees of those entities.
Co-Chair Meyer OBJECTED.
Vice Chair Stoltze spoke in support of the amendment. He
noted that the administration supports the amendment. A
half-time Employment Law attorney would be added.
Representative Gara suggested the funds would be better
spent to support the Office of Children Services.
Co-Chair Meyer WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
RECESSED: 2:59:52 PM
RECONVENED: 5:08:42 PM
Vice Chair Stoltze MOVED to ADOPT Amendment LAW #2.
DEPARTMENT: Law
APPROPRIATION: Administration and Support
ALLOCATION: Administrative Services
ADD: $3,000
DEPARTMENT: Law
APPROPRIATION: Criminal Division
ALLOCATION: Criminal Justice Litigation
ADD: $36,200
DEPARTMENT: Law
APPROPRIATION: Civil Division
ALLOCATION: Timekeeping and Litigation Support
ADD: $60,500
FUNDING SOURCE: General Funds
EXPLANATION: Parking Compensation for Anchorage
employees
The House Finance subcommittee recommended that funding
for at least ½ of the originally requested increment
for parking spaces for Anchorage employees.
The Department of Law is the only department that does
not provide parking for its Anchorage staff. This
amendment, if adopted, should relieve some financial
burden, especially to the department's lower paid
staff.
Co-Chair Meyer OBJECTED.
Vice Chair Stoltze explained that the amendment would
provide for parking for employees of the Department of Law
in Anchorage.
There being NO further OBJECTION, it was so ordered.
5:12:33 PM
Co-Chair Chenault announced that Amendment DNR #1 had been
withdrawn.
Representative Crawford asked why Amendment DNR #1 was
withdrawn and what that would do to the seed potato program.
Representative Kelly responded that it would be the end of
the program.
Vice Chair Stoltze noted that there still is a seed potato
program located in the Department of Revenue's plant
materials center.
Representative Kelly reported that without this funding
there will be no exporting of seed potato to China.
Representative Crawford thought there would be a loss of
dollars down the road. He expressed dissatisfaction with
the decision. Representative Kelly spoke to the difficulty
in maintaining the level of support. He also expressed
regret.
Co-Chair Chenault related his understanding of the
amendment. The actual funding is not money for the seed
potato program and was not intended for the program.
Representative Kelly reiterated that it is not in the budget
- it was a department mistake. Co-Chair Chenault summarized
that the amendment has no effect on the seed potato program.
5:17:10 PM
Representative Kelly MOVED to ADOPT Amendment DNR #2:
DEPARTMENT: Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Forest Management & Development
ADD: $120.0 (One Time Increment)
FUNDING SOURCE: $60.0 General Funding
$60.0 Timber Receipts
EXPLANATION: This amendment restores the Governor's
request for funding to ensure continuation of the
statewide forest inventory program. The subcommittee
considered this request carefully and suggested the
position be funded through the CIP process. However,
DNR has made compelling arguments to the need for this
position. Therefore, I would offer the following
intent language be adopted by the full Finance
committee:
It is the intent that as the timber industry develops
in Interior Alaska, and forest management requires an
ongoing timber inventory program, and as the amount of
timber harvest increases, funding of this position will
be funded with Timber Receipts or Receipt Supported
Services.
Vice Chair Stoltze OBJECTED.
Representative Kelly explained that in the timber inventory
program there is a CIP process. The amendment would
continue the funding of the Forest Management & Development
position. He spoke in support of the amendment.
Representative Gara said he has no problem with this
amendment.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
5:19:39 PM
Representative Nelson MOVED to ADOPT Amendment DPS #1:
DEPARTMENT: Public Safety
APPROPRIATION: Council on Domestic Violence and
Sexual Assault
ALLOCATION: Council on Domestic Violence and
Sexual Assault
ADD: $100.0 GF
EXPLANATION: Restores a funding increase for Shelter
Grants in the Governor's original budget that was
removed in subcommittee.
Vice Chair Stoltze OBJECTED.
Representative Nelson addressed the reasoning behind the
amendment, which restores money for Shelter Grants. She
spoke of increased costs to the shelters.
Vice Chair Stoltze said he would be happy to work with the
subcommittee on this topic. He spoke in support of the
recommendations of the administration.
Vice Chair Stoltze MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Foster, Hawker, Kelly, Meyer,
Chenault
The MOTION FAILED (4-7).
5:23:33 PM
Representative Crawford MOVED to ADOPT Amendment DPS #2:
DEPARTMENT: Public Safety
APPROPRIATION: Statewide Support
ALLOCATION: Alcohol Related Transport and
Mitigation
ADD: $300.0 GF
DELETE: n/a
FUNDING SOURCE: n/a
EXPLANATION: Replaces lost federal grant funding with
general funds. These funds will be used for the
Fairbanks Native Association (FNA) Community Service
Patrol (CSP).
Vice Chair Stoltze OBJECTED.
Representative Crawford explained that the amendment would
restore money that was cut from the Fairbanks Native
Association Community Service Patrol. He argued that this
allocation would save money in the long run.
Vice Chair Stoltze disagreed that this item was a cut, but
rather new money. He was surprised by the amendment, which
did not come up in subcommittee. He explained the funding
for such programs statewide.
Representative Crawford clarified that it is a loss in
federal funds. He spoke strongly in support of the
amendment.
Vice Chair Stoltze MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Joule, Nelson
OPPOSED: Stoltze, Thomas, Foster, Hawker, Kelly, Meyer,
Chenault
The MOTION FAILED (4-7).
5:30:19 PM
Representative Joule MOVED to ADOPT Amendment DPS #3:
DEPARTMENT: Public Safety
APPROPRIATION: Statewide Support
ALLOCATION: Alaska Wing Civil Air Patrol
ADD: N/A
FUNDING SOURCE: N/A
INTENT: It is the intent of the Legislature that
should the Civil Air Patrol not utilize the Kotzebue
Civil Air Patrol hanger by August 1, 2007 for Civil Air
Patrol activities on a full time basis, that the
Department of Public Safety work with the Civil Air
Patrol to surplus the hanger and transfer the facility
to the Northwest Arctic Borough for search and rescue
operations.
EXPLANATION: The hanger was built with a state grant
for the purpose of supporting Civil Air Patrol
activities in the Northwest Arctic Borough. However,
the Civil Air Patrol has moth-balled the facility. The
Northwest Arctic Borough would like to take advantage
of the facility for staging search and rescue
operations.
Co-Chair Chenault OBJECTED.
Representative Joule explained that the amendment would not
cost anything. He related the history of the Kotzebue Civil
Air Patrol hanger. The request is to transfer the facility
to the Northwest Arctic Borough.
Co-Chair Chenault opined that the operating budget is not
the place to bring up this issue. He suggested another
mechanism.
Representative Joule stated that the action needs to begin
now. Representative Joule WITHDREW Amendment DPS #3.
5:34:38 PM
Co-Chair Chenault MOVED to ADOPT Amendment Revenue #1:
DEPARTMENT: Revenue
APPROPRIATION: Child Support Services
ALLOCATION: Child Support Services
ADD: $1,025,600
FUNDING SOURCE: 1156 Receipt Supported Services
ADD: $132,900
FUNDING SOURCE: 1016 Federal Incentive Receipts
DELETE: ($1,158,500)
FUNDING SOURCE: 1002 Federal Receipts
ADD CARRY FORWARD LANGUGAGE:
This appropriation includes the unexpended and
unobligated balance on June 30, 2007, of the receipts
collected under the state's share of child support
collections for reimbursement of the cost of the Alaska
temporary assistance program as provided under AS
25.27.120.
EXPLANATION:
In the Governor's FY 08 budget submission, a fund
source switch was made to hold harmless the Child
Support Services Division from the effect of the
federal Deficit Reduction Act of 2005. Beginning in
FY2008, Child Support Services will no longer be able
to use federal incentive receipts funding as match for
other federal funds. The House Finance substitute
reversed this fund source switch when it reversed the
PERS fund source adjustments on a statewide basis.
In order to meet the 34% state match requirement of the
Child Support Enforcement program and cover the costs
that are ineligible for federal reimbursement, the
division is asking for a fund source change from
federal receipts to state receipt supported services,
and an adjustment to federal incentive receipts to
match estimated collections of that fund source. The
carry-forward language in this amendment will provide
the division with sufficient state revenues to match
the federal funding for this program.
Vice Chair Stoltze OBJECTED.
Co-Chair Chenault explained that this amendment relates to
the first three PERS amendments, but it also includes a
carry forward section. The fund source switch was reversed
when the PERS adjustments were made on a statewide basis.
The request is to replace federal receipts with federal
supported services and federal incentive receipts. The
change is necessary due to the Federal Deficit Reduction Act
of 2005. Carry forward language will allow the division to
have sufficient state revenues to match the federal funding.
There is no GF in this request and the department needs this
fund source reinstated to run their program.
Representative Gara asked if the $1,025,600 from Receipt
Supported Services is federal money.
5:36:13 PM
Ms. Kelly explained that Receipt Supported Services are
state funds, but they are collected when the Child Support
Services program is run. Representative Gara asked what
would happen if this increment was not granted. Ms. Kelly
related that the Department of Revenue has advised that this
money is necessary in order to meet the 34 percent state
required match for the Child Support Enforcement program.
Vice Chair Stoltze WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
5:37:26 PM
Representative Kelly MOVED to ADOPT Amendment U of A #1:
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: SW Budget Reductions and Additions
ADD: $3,629.4
FUNDING SOURCE: General Funds - ORP savings
EXPLANATION: This amendment corrects the unintended UA
budget shortfall created when the retirement fixes were
implemented in CSHB95. The revenue to cover this
amendment could be found by applying the general
funding saving from UA's ORP program resulting from the
TRS retirement fix. There are three components to the
$3,629.4 shortfall. They are PERS, TRS and ORP. In all
cases, UA's budget was reduced by an amount more than
the savings UA will realize.
PERS - GF Budget reduced $18,767.2 from Governor's
level
UA savings realized $16,765.7
Shortfall $2,001.5
TRS - GF Budget reduced by $13,267.3 plus $5,845.1
total $19,112.4 from Governor's level
UA savings realized $13,267.3 plus $4,699.5
total $17,966.8
Shortfall $1,145.6
ORP - GF Budget reduced by $4,988.8 plus $2,411.4
total $7,400.2 from Governor's level
UA savings realized $4,988.8 plus $1,929.1
total $6,917.9
Shortfall $482.3
Unlike PERS and TRS, the ORP reduction represents a
true GF savings ($6.917.9 million). The House
subcommittee intended to use ORP savings to cover UA's
fixed costs, and the CS reflects the subcommittee's
intent by applying 2.5 million from ORP savings to
those costs. However, the Subcommittee did not
anticipate that the PERS/TRS fix in the CS would remove
more money than the university would save. The result
is the CS will not allow the university to cover fixed
costs. The net shortfall will be $3.6 million below
those costs. Moreover, if the university is allowed to
keep the corresponding savings the legislature will
still be $1.27 million to the good from ORP money.
Co-Chair Meyer OBJECTED.
Representative Kelly explained how it related to the PERS
fix, which had an effect on the source of the savings.
Using the current figures, the University would end up
short. He informed the committee that he would wait until
the rate was determined and then offer the amendment again.
Representative Kelly WITHDREW Amendment U of A #1.
5:39:20 PM
Representative Gara MOVED to ADOPT Amendment U of A #2:
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Budget reduction/additions-system-
wide
ADD: $35,662.7 Total funds
FUNDING SOURCE: $14,708.8 General Funds
$20,953.9 Non-General Funds
EXPLANATION: This amendment would fully fund the
Priority Program Enhancement and Growth program as
requested by the Board of Regents. The entities within
this program are important to continue the growth of
workforce development and research that will benefit
the state. The three priority program enhancement
areas are Preparing Alaskans for Jobs (providing
additional funding for high demand programs in health,
engineering and construction); Research Investment in
biomedical and health research, engineering,
transportation and energy and climate impact on
Alaska's Natural Resources; and improved accountability
in student success and college readiness.
Vice Chair Stoltze OBJECTED.
Representative Gara explained that the amendment is at the
request of the regents. He gave several reasons for needing
the amendment: to expand teaching in areas of high demand
for jobs that are not being filled; to help the university
continue the growth of research that will benefit the state.
Co-Chair Chenault recalled the discussions in subcommittee
regarding lack of support by the governor for the Board of
Regent's requests. He wished there was a board of regents
for K-12 education. He spoke against the amendment.
Vice Chair Stoltze MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Crawford, Gara, Nelson
OPPOSED: Stoltze, Thomas, Foster, Hawker, Kelly, Meyer,
Chenault, Joule
The MOTION FAILED (3-7).
5:44:47 PM
Co-Chair Chenault related that the budget process is not
over, and he listed the other pending pieces of the budget
process. He thanked the finance committee and the
subcommittee members for their work.
5:46:07 PM
Representative Gara commented on the committee budget
process. He suggested that many important points were made.
He hoped for more success on the House Floor. He spoke to
the lack of vision on such a large budget. He opined that
there is a great deal of waste in the budget. As an example
he cited the $100 million Knik Arm Crossing.
5:49:02 PM
Representative Gara emphasized that he would have spent
money on several items that were not included in this
budget. He would not have spent over $1 million on an
advisory vote. He said he would have returned the Healy
Road money back to the budget. He opined that those who
were not born to privilege were left out of the budget
process, listing early childhood education, foster care, low
income college funding as examples. He noted, however, that
he is only one out of forty votes.
5:51:27 PM
Representative Joule voiced appreciation for the comment
made about future expectations about tough decisions. He
suggested "not putting all of our eggs in a gas pipeline
basket." He spoke in support of a long-term fiscal plan.
He agreed that this is the first step in the budget process
this session. He agreed that there was good debate.
5:54:39 PM
Representative Foster MOVED to REPORT CSHB 95 (FIN) from
committee with individual recommendations, and giving
Legislative Legal and Legislative Finance the authority to
make any necessary technical and conforming amendments.
There being NO OBJECTION, it was so ordered.
Representative Foster MOVED to REPORT CSHB 96 from committee
with individual recommendations, and giving Legislative
Legal and Legislative Finance the authority to make any
necessary technical and conforming amendments.
There being NO OBJECTION, it was so ordered.
Co-Chair Chenault noted that the Committee would recess
until the Committee Substitute was received and checked.
RECESSED: 5:57:26 PM
RECONVENED: 11:51:02 AM
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