Legislature(2007 - 2008)
04/18/2007 03:31 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| SB61 | |
| HB147 | |
| HB205 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 61(FIN) am
"An Act transferring funds to the public education
fund; making supplemental and other appropriations;
amending appropriations; and providing for an effective
date."
SHARON KELLY, STAFF, CO-CHAIR CHENAULT, explained the fast
track supplemental. This bill consists of the remaining
supplemental items that were originally requested by the
Governor in HB 107 and in Section 1 of HB 139, the regular
supplemental. Those items have all been heard by this
committee previously. Ocean Ranger (HB 139 Section 1e
$811.3) funding is not included in this bill.
This CS contains $1,011,133.9 in General Funds, $21,482.5 in
Federal Funds and $4,765.4 in Other Funds for a grand total
of $1,037,382.8.
Ms. Kelly reviewed the new and amended items in the bill:
Sec. 1 (New Item) added in Senate Finance. The sum of
$1,000,000,000 is appropriated from the general fund to
the public education fund for distribution according to
the Foundation formula. (Funding comes from FY07
carry-forward monies to fund FY 09 education costs).
Sec. 2(a) (Previously heard-HB 107 Section 1)
Tax pass thru to regional seafood development
corporations - last year the appropriation was simply
left out - $153.0 in tax assessments/Other Funds.
(Previously heard-HB 139 (Section 1b)
The Alaska Regulatory Commission requested $750.0 in
Regulatory Receipts in the fast track to continue
litigation at FERC to defend RCA's jurisdiction over
intrastate TAPS rates. They also requested an
increment of $600.0 in Regulatory Receipts in the FY08
budget. The amounts have been combined in this bill
for a total of $1,350.0 and placed in this supplemental
with an extended lapse date language to allow them to
spend the funds as the litigation continues during FY's
07, 08 and 09. This helps spread the cost over the
years and avoids the RCA from having to bump their
collections to pay for this amount all in one fiscal
year.
Sec. 3(a) Previously heard-HB 139 Section 1c)
Corrections Inmate Health Care $3,903.4 GF - The
Administration has indicated they may need as much as a
million more before yearend and that additional amount
will be considered in another bill.
(b)Previously heard-HB139 Section 1d)
Anchorage Corrections Complex - largely to pay overtime
for housing additional offenders - $1,082.7 GF.
Sec. 4 (New Item)--$740.3 to pay for the Chenega School
Roof Replacement. Added in Senate Finance.
Sec. 5 (a) (New Item)
The sum of $2,315,000 is appropriated to the Department
of Health and Social Services, Office of the
Commissioner, for operating costs for a comprehensive
program associated with designing, planning, and
implementing the legislative Medicaid Program Review
Report dated February 2007.
This funding is for FY's 07, 08, and 09 and is the
beginning of effort to obtain the millions of dollars
of savings identified in the report.
Federal receipts $1,182,500
General fund $1,132,500
(b) (Previously heard-HB 139, Section g)
Amend language to repair Pioneer Home Roofs. No new
money.
(c) (Previously heard HB 139, Section 1f) $3.5 million
(GF) and $3.0 million (COP) for the Fairbanks Virology
Laboratory Completion. Original appropriation was $24
million in FY 06.
Sec. 6 (a and b) (Previously heard-HB107, Section 2)
This funding pays the Department of Law for the work it
did investigating the Mercer actuarial matter - it does
not pay for any litigation costs but makes the
department whole.
Sec. 7 (Previously heard-HB 139 Sections a-f)
DOTPF sections.
(g) (New Item) Chitina re-appropriation is new and
added here under. There is no dollar change. This
allows the bridge over O'Brien Creek to be rebuilt
providing access to the Chitina dip netters before the
salmon runs this year.
Sec. 8 (Previously heard-HB 107 Section 3)
Funding for special election in April on employment
benefits for same-sex partners. The request was
amended down by $381.3, current request is $775.0.
Sec. 9 (New Item) This amendment was added on the
Senate Floor. It is a re-appropriation not to exceed
$600,000 to Legislative Council for special session
expenses for the fiscal year ending June 30, 2007.
3:38:24 PM
Representative Joule inquired about Section 6, regarding an
$11-$12 million lawsuit action. Co-Chair Chenault reported
that the lawsuit has not been denied and there has been
discussion with the Department of Law on the matter.
MICHAEL BARNHILL, ASSISTANT ATTORNEY GENERAL, DEPARTMENT OF
LAW, reported that the department would like to pursue the
case and obtain funding for it. He related that the money
appropriated is just for the investigation that was
completed in January 2007.
Representative Joule asked if the lawsuit is going forward.
Mr. Barnhill reported that nothing has changed in terms of
the level of confidence and in terms of the recommendation
to the legislature to fund the litigation.
3:41:22 PM
Representative Crawford asked what happens next regarding
the lawsuit and funding. Mr. Barnhill reported that the
Department of Law has reduced the request from $12 million
to $6.75 million and the hope is that the request will be
reconsidered by the legislature.
Representative Gara reported that the Department of Law
previously answered his questions about the case being
strong and convinced him that the law firm previously
selected would be best. He asked if that has changed. Mr.
Barnhill related that the choice of Paul, Weiss, Rifkind,
Wharton, & Garrison, LLP, of New York remains the same.
There has been discussion of adjusting the contingency fee
arrangement.
Representative Gara stated support for the Department of
Law's recommendation as to how to proceed on the actuarial
malpractice case.
3:44:52 PM
JOHN MACKINNON, DEPUTY DIRECTOR, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES, responded to a
question from Representative Gara regarding the repair of
existing facilities at Chitina. Mr. MacKinnon emphasized
that the purpose is not to force an eminent domain issue.
Improvements will be made to a bridge and boat launch at
O'Brian Creek.
Co-Chair Chenault asked if the language was straightened out
on that subject. Mr. MacKinnon said yes.
3:47:55 PM
Representative Gara referred to funding for the Legislative
Medicaid Program Review Report in Section 5. He wanted
assurance that the appropriation was necessary. He wondered
how a contractor would be selected and who it would be.
JANET CLARKE, ASSISTANT COMMISSIONER, DIVISION OF FINANCE
AND MANAGEMENT SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, pointed out that the work plan is attached to the
request for the supplemental. She explained that if the
funds come to the department rather than to the legislature,
there will have to be a competitive bid process. She
explained about the 50 percent federal reimbursement.
Representative Gara asked if the contractor will be Pacific
Health Group again. Ms. Clarke reported that it would go
out to competitive bid. Representative Gara said he would
accept the department's judgment.
3:51:44 PM
Vice Chair Stoltze MOVED to REPORT CSSB 61 (FIN)am out of
committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CSSB 61 (FIN)am was REPORTED out of Committee with a "no
recommendation".
3:52:40 PM
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