Legislature(2009 - 2010)HOUSE FINANCE 519
02/19/2010 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB300 || HB302 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 300 | TELECONFERENCED | |
| += | HB 302 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 300
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making supplemental
appropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska; and
providing for an effective date."
HOUSE BILL NO. 302
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:40:35 PM
OFFICE OF MANAGEMENT AND BUDGET
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, presented a high level overview of
the operating budget amendments first presented to the
committee on February 17, 2010. In the amended budget there
was a request of an additional $55.8 million in operating
budget expenditures. She noted that approximately $41
million is related to the formula programs in Medicaid. She
began listing the items from the spreadsheet (Governor's
FY2011 Amended Operation Budget Submissions, February 17,
2010, Page 1 of 9, copy on file).
Department of Administration
Ms. Rehfeld began with the first request from the Department
of Administration. Line 2, Elected Public Official
Retirement System Benefits (EPORS), was reduced by $250,000
due to a reduction in the member base where this number has
been recalculated. She continued with line 3, Division of
Finance, which allows for the authorization of the
continuation of the COBRA benefit under the Federal Stimulus
Act. The Office of Public Advocacy, line 4, reflects
increased Operational Costs. The Public Defender Agency,
line 5, shows a small decrement in an unrealizable funding
source with line 6 showing the actual increased operational
costs. She continued with the Violent Crimes Compensation
Board, line 7, which is a deletion of an unrealized fund
source for health insurance for the non-covered.
Department of Commerce and Economic Development
Ms. Rehfeld reviewed the Department of Commerce, line 8, for
the Alaska Seafood Marketing Institute reflecting a fund
source change to replace reduced federal receipts with
receipt supported services. The Office of Economic
Development, line 9, requests funds that will be used to
facilitate economic development through aggressive outreach
to the business community, identifying and removing barriers
to growth, and forging of productive public-private
partnerships.
1:44:50 PM
Representative Gara inquired if this was an extra state
expenditure since the federal money was not received. He
asked if the $500,000 had not been needed by the department
would be in general funds. Ms. Rehfeld indicated that these
are receipts that come from industry to help support the
seafood marketing effort. The funds are accounted for
separately and are available to the Alaska Seafood Marketing
Institute (ASME) for this purpose. If the legislature
approves the fund source change then these receipts will be
available for seafood marketing.
Representative Gara remarked that the incoming funds could
just go into the general fund. He wondered if there was any
legal requirement to put it just into seafood marketing. Ms.
Rehfeld mentioned that none of these funds are dedicated and
they could be used for something else other than seafood
marketing, but the industry supporting this effort believes
the when the receipts are provided then they should be used
for the purpose given.
Representative Gara asked where the $500,000 comes from. Ms.
Rehfeld replied that this is an assessment that the industry
pays for this effort.
Representative Austerman interjected that the industry pays
$9.5 million toward marketing and in the general fund budget
there is a $3.7 million match toward the $9.5 million. The
$500,000 is industry receipts out of the $9.5 million.
1:47:31 PM
Representative Foster asked what would have happened to the
$500,000 if the federal funds had still been available. Ms.
Rehfeld responded that without an appropriation of the
$500,000 in industry receipts, the money would have remained
in the general fund to appropriate.
Representative Austerman believed that federal receipts
coming must have a match and the federal money must be used
for specific issues.
1:49:15 PM
Ms. Rehfeld continued with the Office of Economic
Development request on line 9 for $250,000 in general funds.
Ms. Rehfeld stressed that the governor is working to promote
economic growth in Alaska and these funds would help the
department to work with business and industry to identify
barriers to economic development.
Representative Austerman requested a further breakdown on
exactly what the funds would be used for. He wondered if the
plan was to hire new employees or create new programs. Ms.
Rehfeld replied that this funding will be used to fund
existing positions in the agency. Representative Austerman
asked that the department send a representative to talk on
this further. Ms. Rehfeld surmised that would be happening.
1:51:03 PM
Representative Gara questioned why this was not an
interagency receipt if it was only a matter of moving
positions. Ms. Rehfeld replied there were not enough general
funds available in the department to fill the positions to
do the work. Representative Gara asked if that would be two
new employees. Ms. Rehfeld remarked it would be people hired
in existing positions. Representative Austerman emphasized
that an inventory on vacant positions was needed throughout
the departments.
1:52:27 PM
Representative Foster believed the funding was for two
vacant positions and the hiring of one new position. Ms.
Rehfeld reported that the DOC has more details that will be
provided to the subcommittee.
1:53:03 PM
Department of Corrections
Ms. Rehfeld remarked that line 10, the Department of
Corrections, needed the funding to meet the physical health
care shortfalls for inmate care. There is a supplemental
request of $4.6 million for the current fiscal year. The
department believed it needed to include an additional $3
million in the FY11 budget. She added that part of the
difficultly is not knowing what catastrophic medical needs
might occur.
Representative Kelly contended that inmate health care is
very expensive and encouraged the administration to put the
stops on some of these growing government cost areas and
think of alternative actions. He noted that after the Goose
Creek facility is on line there will be a $50 million
increase in the budget.
1:56:16 PM
Representative Gara noted that the legislature has moved
many crimes one grade up and wondered if this added to the
prisoner population. He requested more information on why
the medical costs are so much higher.
Ms. Rehfeld agreed that this was a great concern for
everyone. She believed a number of issues have caused the
increase with the rising incarcerated population a definite
contributor as well as the aging inmate population.
1:57:46 PM
Department of Education and Early Development
Ms. Rehfeld reported on line 11, the Department of Education
for the Alaska State Council of the Arts, a recent lease
negotiation for new office space at $70,000.
Representative Austerman asked if the $70,000 was the
increase on the lease space or the total lease cost. Ms.
Rehfeld responded that it is the increase. Representative
Austerman inquired about the total lease cost. Ms. Rehfeld
stated that the move was from the downtown Anchorage to a
new space is in another location.
1:59:13 PM
Representative Fairclough asked if there was an increase in
space. Ms. Rehfeld responded that she does not have that
information.
1:59:41 PM
ANNA KIM, DIVISION DIRECTOR, DEPARTMENT OF EDUCATION & EARLY
DEVELOPMENT, indicated that she would provide the
information, but she does not presently have it. She noted
part of the reason for the move had to do with air quality
issues. The new location is in Mountain View.
Representative Gara asked if this breaks down to $5600 a
month extra over what they were paying before. Ms. Kim
reiterated that she would have to get the information.
2:01:13 PM
Ms. Rehfeld continued with some technical adjustment items
for Mt. Edgecumbe Boarding School on line 11, 12, 13. These
adjustments are in the interagency receipt authority and
designated receipt authorization.
2:02:38 PM
Department of Fish and Game
Ms. Rehfeld moved to page 2, line 16, for the Department of
Fish and Game. This is a budget cleanup specific to federal
authorization needed for the Bering Sea Crab Research and
Revitalization program. Lines 17 through 20 are technical
corrections for the Fish and Game fund revenue accounting.
She stated that line 21 is for the state subsistence
division for the handing of the Donlin Creek project for
interagency receipts from the Department of Natural
Resources. Line 22 is for the Habitat Division for federal
receipt authority needed regarding the petroleum diesel
spill that occurred in Helment Creek on Adak Island on
January 11, 2010.
2:05:06 PM
Office of the Governor
Ms. Rehfeld explained that line 23 cleans up statutorily
designated receipts; the Office of the Governor.
Department of Health and social Services
Ms. Rehfeld moved to line 24 from the Department of Health
and Social Services. She noted there are a number of
requests before the committee from line 24 to line 47, many
of them of a technical nature or Medicaid adjustments. Line
24 reflects a few position adjustments, reversing a transfer
of a position from Administrative Services to Senior and
Disabilities Services. Line 25 corrects a transfer of funds
from a Medicaid School Based Administrative claims to
stabilize the Administrative Support Services budget.
2:07:00 PM
Representative Austerman asked for a definition of
stabilizing the Administrative Support Services budget.
ALISON ELGEE, ASSISTANT COMMISSIONER, FINANCE AND MANAGEMENT
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
indicated that the department placed a priority to clean up
their budget and reflect what could be experienced in
federal revenue collections. They requested general fund
replacement in some areas where those federal revenue
collections were overstated in the budget. She explained
that when stabilizing the budget it means to provide the
funding in terms of money that is real as opposed to empty
authorization for the existing operations. Ms. Elgee
emphasized that this would not be for anything new.
Representative Austerman noted that the department had
authorization for $700,000 in federal receipts, but since
they did not receive those funds the department wants to
receive them from general funds.
Ms. Elgee responded that this program may or may not
continue to receive federal revenue, but the level of
funding available will not be known until next year.
Representative Austerman reiterated that it is still
supplanting federal funds with state funds. Ms. Elgee agreed
that was correct. This was one of the many refinancing
schemes employed by the DHSS to expand Medicaid and utilize
it for ongoing operations.
2:10:09 PM
Representative Doogan remarked that for the purposes of this
document line 25 is a pairing with line 41 with the actual
cost at zero, therefore it has just been moved from one
place to another. Ms. Elgee responded that is correct.
2:10:54 PM
Ms. Rehfeld moved to line 26 transferring a position from
the Department of Law to the Department of Health and Social
Services so there can be a hearing officer in their budget
rather than in the Department of Law budget. Line 27
reflects a correction of a position transfer so there is a
negative here and a positive in Administrative Services.
Ms. Elgee expounded that on page 2 and 3, lines 28,32,42,44,
that these are requested budget amendments to the Medicaid
program. There has been significant growth in Medicaid that
had originally not been expected to continue but has grown
to 12 percent by FY2010. A reflection of this growth was
presented in the supplemental. These budget amendments
reflect an increase necessary in FY2011 to bring the base
level funding level up to date.
Representative Gara asked for the year to year percent
Medicaid spending growth. Ms. Elgee projected a total growth
of the program at six percent. This will vary between
different components of the program.
2:14:33 PM
Representative Austerman noted that the total requested
budget increase in this amendment is $40 million, but
inquired about the total yearly increase.
Ms. Elgee responded that she can provide that information
later. She added that there is a direct correlation between
the supplemental and the budget amendment.
2:15:26 PM
Ms. Rehfeld continued on line 29 with an increase of $1.5
million to cover the growth in the Adult Public Assistance
enrollment.
Representative Austerman asked if this growth was due to new
people coming into the system or increased benefits. Ms.
Elgee replied that the benefits have not been increased for
many years, so the growth is due to increased enrollment.
Representative Fairclough inquired if these enrollees were
first time to the system or people migrating to Alaska for
the benefits. Ms. Elgee indicated that she could provide
some demographic information later, but did not believe the
growth was due to migration into the state.
2:17:06 PM
Representative Gara asked if an individual can receive adult
public assistance their whole life.
Ms. Elgee responded that the adult public assistance program
addresses the aged, blind and disabled. This is a state run
program so there are no limitations on how long someone can
be on the program, but she stressed that the money is only
nominal and meant to supplement the social security income
benefits.
Representative Gara contended that one could not be an able
bodied working age person and receive these benefits. Ms.
Elgee agreed that was correct.
Ms. Rehfeld moved to the line 30 request from the Mental
Health Trust Psychiatric Emergency Services for designated
evaluation and treatment component. Line 31 and line 33 is a
correction between two components. She stated that line 32
deals with Medicaid growth. On page 3, line 34 shows ARRA
funding for Communities Putting Prevention to Work and line
35 denotes ARRA funding for Prevention and Wellness. Line 36
requests $3.8 million for general relief temporary assisted
living. This corresponds to the FY2010 supplemental request.
Line 37 and line 39 shows a request for Mental Health Trust
receipts of $150,000 for Student Loan repayments for
healthcare practitioners in high need areas. Line 38
requests $1,110,000 in statutory designated program
receipts. She reported that the Department of Health and
Social Services is working with Oregon and West Virginia on
a program to improve children's healthcare delivery systems.
2:21:28 PM
Representative Doogan asked for the definition of statutory
designated program receipts. Ms. Rehfeld replied that it is
a contract for a certain entity to provide receipts to do a
certain body of work; funds coming into the state of Alaska
for a specific purpose.
Ms. Rehfeld indicated that line 40 reflects a transfer of
positions from the Department of Law to the Department of
Health and Social Services. She reiterated that line 42
reflected Medicaid Growth and line 43 requests $3.5 million
in interagency receipts under Medicaid services. These are
coming through the behavioral health component which deals
with services from Providence, Fairbanks Memorial and
Bartlett Memorial. Line 45 requests $942,000 for senior
disabilities Medicaid services. This is to comply with the
corrective action plan mandates by CMS. Lines 46 and 47 are
position transfer technical adjustments.
2:24:00 PM
Department of Labor & Workforce Development
Ms. Rehfeld continued with the Department of Labor page 3,
line 48, for a one-time ARRA federal authorization for
Alaska Energy Section Partnership Grant. This will provide
funding for training in energy areas.
Representative Fairclough asked if there is a training
program for energy efficiency within the Department of
Labor.
2:24:54 PM
DAVID STONE, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, responded that there is some energy
training. The ARRA grant will train seven hundred Alaskans
directly under the Alaska Work Force Investment Board who
will oversee the development of a training plan. This will
also be in conjunction with a number of other partners.
Representative Fairclough asked how much and where is the
current training being expended in the department.
Mr. Stone responded he would have to get back with the
specific information. Representative Fairclough mentioned
that there is a one-time $3.5 million request below the line
for the Construction Academy. She wondered if ERA funding is
available to pay and keep employed the people currently
being trained instead of using general funds. Mr. Stone
relayed that he would have to get back to the committee with
that answer.
2:26:44 PM
Representative Austerman asked if this program was set up to
train twenty people. Mr. Stone replied it would train seven
hundred people.
Representative Foster asked if these people would also be
trained for raiders and assessors positions. Mr. Stone
answered yes.
Ms. Rehfeld informed that line 49 was a decrease in state
training and employment program authorization to align with
planned expenditures.
Representative Gara asked if this was for line expenditures
on step or is the money being used somewhere else. Mr. Stone
replied that the fund has been growing substantially over
the years. The contributions to this fund come from employee
contributions to unemployment insurance which is one tenth
of one percent. Since it is not known what the future holds,
this would help provide funds for the future.
Representative Gara expressed his frustration that a request
for $85,000 to train and transition foster children into
jobs was denied. He asked if out of the $1.5 million being
saved some could be used to job train foster youths. Ms.
Rehfeld asserted that she was not aware of any prohibition
in using step funds for such a program. Mr. Stone replied
that one of the conditions of using the state training
program is an individual must contribute to unemployment
insurance. There could be an issue with youths who have not
worked or contributed to unemployment. Representative Gara
declared that he does not care which department is saving or
spending the money. He reminded that there was a saving of
$1.5 million on job training in the Department of Labor and
an under training for those coming out of foster care and he
questioned why $85,000 could not be spared for them.
2:31:11 PM
Representative Fairclough commented that it was a
recommendation from the subcommittee to save the money and
hold it. She indicated that unemployment rates are going up
so Legislative Finance has indicated that paying out the
original requested amount by the department may adversely
affect the following year's program. If unemployment rates
keep rising, it was decided to hold these funds, so there is
really not an extra $1.5 million.
2:33:10 PM
Representative Doogan remarked that this decrease is $1.5
million and questioned how much of the total is to be
funded. Mr. Stone responded that the fund is currently at
$10 million so they would fund $8.5 million for this fiscal
year, leaving $1.5 million in the fund.
Representative Doogan asked if it grows at such an extent
that it is replenished at a greater rate every year. Mr.
Stone pointed out that it has grown in the last few years,
but it could drop if there was increased unemployment.
Representative Fairclough presented the forecast for FY2010
and FY2011 for that fund showing an ending balance in FY2009
of $5.9 million. There is expected revenue of $6.5 million
in FY2010 and $9 million is being paid out. They are
trending down to maintain payout.
2:35:46 PM
Ms. Rehfeld continued to line 50, Vocational Rehabilitation
Client Services with a one-time carry forward of $200,000 in
the ARRA federal authorization for employment services to
disabled Alaskans. Line 51 shows decrease training and
building fund authorization to align with their projected
expenditures of $250,000. Line 52 reveals an increase
requested in federal authorization of $4 million under
unemployment insurance which is workload and caseload
driven. Line 53 request of $600,000 is for a onetime ARRA
federal authorization for unemployment insurance
development.
2:37:08 PM
Co-Chair Hawker remarked there are so many additional ARRA
monies in some departments that the committee will want to
look if this is money being reauthorized from last session
or if it is new federal money under the umbrella of ARRA.
2:38:36 PM
Department of Law
Ms. Rehfeld continued on line 54 with the Department of Law
for a request of $165,000 from the Tobacco Education
Cessation Arbitration regarding a dispute with the master
settlement agreement. This would prepare for the pending
arbitration. Line 55 and 56 reflects the two general fund
source requests that had been made on general funds because
they department was not sure at the time if there would be
an extension of federal grants. They have recently learned
the federal funds will be extended. On line 57 and 58 show
the transfer of positions from the Department of Health and
Social Services for replacement to another position. Line 59
requests $400,000 to add two new permanent full time Kenai
District attorneys.
Department of Natural Resources
Ms. Rehfeld moved to line 60 in the Department of Natural
Resources requesting $130,000 that reflects an error in the
December budget that needs to be corrected. Line 61 is a
decrement of $300,000 as the project for the reverse
statewide parcel database is not ready to proceed for the
next fiscal year.
Representative Austerman requested a return to line 60 with
a better description of the Guide Concession Area Program
development.
LETA SIMONS, DIRECTOR, DIVISION OF SUPPORT SERVICES,
DEPARTMENT OF NATURAL RESOURCES, responded that it will be a
statewide program, but based on the amount of funding, it
might start in parts or pieces. This funding is to complete
the process of getting information back from the public and
to understand how to better develop a program and work on
developing regulations.
Representative Austerman remarked that this is creating a
new program. Ms. Simons stressed that there was a program at
one time, but it was declared unconstitutional and thrown
out. There has not been a guide program since the 1980s.
Representative Kelly remarked that in the Department of
Natural Resources subcommittee there was a hearing on this
issue. He was shocked to see the additional funding request
as that is a lot of money for this work. He remarked it is a
contentious issue on both sides.
2:43:42 PM
Co-Chair Stoltze asked if some of the old history regarding
the dissolution of the old Big Game Commercial Guiding board
is involved. Ms. Simons said that was correct. The game
guide concessions that were set up long ago were challenged,
but it does have its roots in that situation. This is an
attempt to revise it so there is a permit policy on state
land.
Co-Chair Stoltze mentioned there might have been a larger
fiscal note with reestablishing the Big Game and Commercial
Services board. Ms. Simons replied that she was not sure she
was aware of all the history, but she would research and
provide the answers.
Representative Austerman commented that there are always
complaints on the guiding permits.
Ms. Rehfeld moved to the line 62 request for $113,000 land
sales receipts to help the department fund some of the
positions who do this work. Line 63 is a request for
$240,000 in general funds for the Outer Continental Shelf
lease planning mineral management to fund cooperating agency
status with the Minerals Management Service in order to
address the Outer Continental Shelf issues. The Department
of Natural Resources would act as the coordinator concerning
environmental impact statements.
Representative Kelly understood that the step was needed,
but normally these services are billed and he wanted to know
if this could be reviewed. The whole idea of the permitting
services is to that those being regulated in that area ends
up paying the costs of that regulation. He indicated that he
would like some feedback how these services might be billed.
Ms. Simons furthered that the Office of Project Management
and Permitting normally is reimbursed for their work by
industry. In this case they are asking for the state to be a
participant in order for the state to have more input in the
environmental impact studies that are being conducted by
Mineral Management Services for the outer continental shelf
work. The state would like to add their expertise in this
area, but there is no industry that can reimburse for this
type of work if they are not directly involved.
Representative Kelly suggested getting industry involved. He
added that the state was trying to get a handle on growth on
the number of state employees and growth in government.
2:50:27 PM
Co-Chair Hawker agreed that passing the costs to another at-
interest party was a good plan, but inquired if they would
need statutory authority to establish a contract with
someone who might be pursuing a permit. If statutory
authority is needed to undertake a contract, then the
legislature could provide that. Ms. Simons replied that they
would look into that.
Department of Public Safety
Ms. Rehfeld reviewed line 64 request for $125,000 in Public
Safety for Domestic Violence and Sexual Assault for victim's
services. The goal is to make sure that within the Council
of Domestic Violence and Sexual Assault component that they
could cover some of the lost funds and also added some
general funds into the component. It is hard to predict if
the applied for federal grants will be successful. On line
65, on prisoner transportation there is a request for
$300,000 in general funds. There was a request in the FY2010
supplemental bill and this would be an addition for FY2011.
2:53:23 PM
Ms. Rehfeld explained that in Public Safety, line 66, under
Special Projects there is $97,000 in federal funds under the
stimulus for combating internet crimes against children.
Department of Public Safety
2:54:39 PM
Ms. Rehfeld continued with line 67 for $220,000 under the
Department of Revenue for funding a new Investment Officer
position. This is a position within the Treasury Division.
On page 5, line 68, is the request to hire a new Investment
Officer position.
Co-Chair Hawker explained that the negative $850,000 is
exactly related to the change in the previous one adding the
internal investment officer. These are integrated
transactions.
Representative Austerman requested a return to line 67 with
the funding of a new Investment Officer and asked if that is
full or part time. Ms. Rehfeld replied that the position is
already in the budget, but the funding is lacking.
Representative Austerman asked if it was a new position. Ms.
Rehfeld noted that technically it is not a new position, but
it has not yet been funded so the department is using the
term new position. Representative Austerman reiterated the
need to look at the vacancy positions throughout the state.
2:57:17 PM
Ms. Rehfeld referred to the line 69 Alaska Permanent Fund
Corporation $8 million request from the for adjusted manager
fees. There has been a stronger than projected market
recovery with some changes to the fund's portfolio
structure, but there is still a decrement.
Co-Chair Stoltze returned to the question of the Kenai
attorneys and wondered if there were people already in mind
to fill these positions.
Ms. Rehfeld informed that there are approximately seven
attorneys who cannot meet the work load so she is confident
they would move rapidly to fill those positions.
Co-Chair Stoltze asked if the positions would be filled by
July 1. Ms. Rehfeld noted that the funding would not be
available until July 1. He wanted to make sure the
department would have attorneys ready to come on board. Ms.
Rehfeld responded that the Department of Law could come to
the table, but they are interested in moving forward on
hiring. Co-Chair Stoltze stressed that he was looking for a
commitment.
2:59:19 PM
Ms. Rehfeld continued with line 70 with the Child Support
Services Division. She indicated this request was a "just in
case" scenario. In the past federal incentive payments were
used to match federal funds and with the ARRA program the
extension was allowed. This funding would provide room to
cover the federal incentive payments. There is also the
potential that with the temporary assisted needy families,
they may be unable to cover with as many receipts. She
agreed there may need to be some language improvements so it
is clear what is being attempted.
Co-Chair Hawker interjected that this is the same
transaction where it is not positive if the state will
receive a certain amount of federal receipts, so this is the
most beneficial position for the state in the number section
of the budget to back fill if these federal receipts are not
authorized.
3:01:58 PM
Ms. Rehfeld maintained that on line 71, Permanent Fund
Dividend Division, there is a request for central mailroom
equipment replacement. Co-Chair Hawker noted this would be
one-time increment, not an ongoing expenditure.
Mr. Rehfeld continued with line 72 and line 73 for
additional requests from the Permanent Fund Dividend
Division, concerning bandwidth cost increases and the
ability to access data from vital statistics. Each request
is for $25,000.
Co-Chair Hawker wondered if there is something different
about this request. Ms. Rehfeld replied that there was
nothing different about this particular item. There is a
struggle in each department to provide the services and
support expectations. These requests are small dollar
amounts, but it was important to bring them forward. Ms.
Rehfeld continued with line 74, Treasury Division funding
for an Investment Officer to replace an external Investment
Manager.
3:04:35 PM
Representative Austerman inquired if this was the same
position discussed in line 67. Ms. Rehfeld responded this
was interagency receipts from the other component so the
answer is yes.
Department of Transportation
Ms. Rehfeld moved to page 7, line 75 for the Southeast
Design and Engineering Services request of $50,000 receipt
supported services on the utility permitting program. Line
76, Statewide Public Facilities, is a fund source change for
a position for capital improvement projects. This is a
change from interagency receipts to CIP receipts.
3:05:51 PM
University of Alaska
Ms. Rehfeld continued on line 77 with the request to return
to a single appropriation for technical reasons.
Representative Austerman stated the system is broken and he
would oppose this.
Ms. Rehfeld moved to the line 78 request for $2.1 million
for the University of Alaska Federation of Teachers
compensation adjustment for the ratified collective
bargaining agreement approved by the Board of Regents.
3:07:11 PM
Co-Chair Hawker asked if the university's initial budget
request included an aggregate of some $11 million in
compensation in adjustments and increases. He wondered if
this $11 million was anticipating changes or is this for
additional bargaining changes. Ms. Rehfeld informed that
this agreement was not in when the original request was put
forward in December. Co-Chair Hawker asked if these were
calculated on authorized positions or with an actual person
already in that position. Ms. Rehfeld commented that they
were calculated on authorized positions.
3:08:55 PM
Co-Chair Hawker commented that the committee would not need
to go through all the language for the remaining list, but
requested more information on line 89.
Ms. Rehfeld moved to page 9, line 89 that amends the
management of the Constitutional Budget Reserve (CBR). There
had been general fund request rather than from the CBR and
this request was being continued for the FY2011 budget.
Co-Chair Hawker explained the motivation for this section is
that in the FY2010 operating supplemental budget, the $400
million would pay off the state's obligation to the CBR. The
historic use of CBR proceeds to pay for its own management
fees is a circular inefficient and unnecessary pattern. It
is better to fund the management fees out of excess general
funds.
Ms. Rehfeld elaborated about an earlier question regarding
the Arts Council lease. The previous lease square footage
was 2200 at $1.54 a square foot and new lease is 2802 square
feet at $3.28 per square foot.
Ms. Kim interjected that the annual amount for the old lease
was $40,754 and the new lease is $110,373. The additional
space will accommodate the contemporary art bank, delicate
art storage, and art maintenance areas. The lease is about
10 years old and they were informed by the Department of
Administration that the lease space was reasonable.
Representative Fairclough asked if this was prime space. Ms.
Kim responded that it is a much better space. Representative
Gara asked what the monthly total is for 2800 square feet.
Ms. Kim responded $110,373 a year or about $9,000 a month.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 300 HB 302GOVs Operating Amendments February 17 2010.pdf |
HFIN 2/19/2010 1:30:00 PM SFIN 3/24/2010 9:00:00 AM |