Legislature(2009 - 2010)
03/08/2010 03:14 PM House FIN
| Audio | Topic |
|---|---|
| Start | |
| HB302 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
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."
3:15:07 PM
Co-Chair Hawker noted that the purpose of the meeting was
to process amendments to the operating budget (HB 300 and
HB 302) and provided a broad overview of the amendments. He
added that the committee would address the gasline funding
amendment at a future meeting. He explained that a majority
of members present (six votes) would be required to move an
amendment from committee.
3:19:29 PM
Amendment 1
Co-Chair Hawker MOVED to ADOPT Amendment 1:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
Part 1:
DEPARTMENT: Commerce, Community & Economic
Development
APPROPRIATION: Alaska Seafood Marketing Institute
ALLOCATION: Alaska Seafood Marketing Institute
ADD: $500.0 GF/PR (1005)
DELETE: $500.0 RSS (1156)
EXPLANATION: $500.0 of the Governor's amended
request for approximately $10 million of RSS was not
switched from RSS to GF/PR in the House CS as part of
the Budget Clarification Project. This amendment
corrects this oversight and will not impact ASMI's
budget.
Part 2:
DEPARTMENT: Environmental Conservation
APPROPRIATION: Environmental Health
ALLOCATION: Laboratory Services
DELETE: $100.4 GF (1004)
Plus 1 PFT position
APPROPRIATION: Environmental Health
ALLOCATION: Food Safety & Sanitation
ADD: $100.4 GF (1004)
Plus 1 PFT position
EXPLANATION: This amendment is a technical correction
to the allocation selected for amendment #1 that was
offered and accepted at the DEC House Subcommittee
closeout. The original increment adds an
Environmental Health Technician and related costs in
support of the permitting and inspection of new
shellfish farms. This increment was placed in the
Laboratory Services allocation but DEC wants the
increment placed in the Food Safety and Sanitation
allocation. Both allocations are within the
Environmental Health appropriation in DEC.
Part 3:
DEPARTMENT: Fish and Game
APPROPRIATION: Sport Fisheries
ALLOCATION: Sport Fisheries
ADD: $450.1 Fish and Game Fund (1024)
DELETE: $450.1 GF Program Receipts (1005)
ADD: The following new LANGUAGE subsection to Sec. 25:
Fees collected at boating and angling access sites
managed by the Department of Natural Resources,
division of parks and outdoor recreation, under a
cooperative agreement authorized under AS
16.05.050(a)(6), during the fiscal year ending June
30, 2011, estimated to be $450,100, are appropriated
to the fish and game fund (AS 16.05.100).
EXPLANATION: The U.S. Fish and Wildlife Service
expressed concern that a portion of the fund changes
associated with the budget clarification project
provide insufficient tracking of boating access fees.
The federal government prefers that boating receipts
be deposited into the F&G fund. This amendment aligns
revenue and expenditures with federal requirements
(see explanation below).
The U.S. Fish and Wildlife Service requires that all
user fees collected on federally acquired or developed
facilities must be used for maintenance and operation
of those facilities. ADF&G Sport Fisheries division
has current and ongoing grants with USFWS which
creates a federal nexus to these user fees collected
by Department of Natural Resources (DNR).
Under U.S. Fish and Wildlife Service (USFWS) federal
grants, all user fees collected on federally acquired
or developed facilities must be used for maintenance
and operation of those facilities. ADF&G Sport
Fisheries division has current and ongoing grants with
USFWS which creates a federal nexus to these user fees
collected by Department of Natural Resources (DNR).
A cooperative agreement provides the mechanism for
transfer of user fees from DNR to ADF&G Fish and Game
fund. Federal Office of Inspector General (OIG)
auditors have approved this process and the deposit of
the fees in the Fish and Game fund as it ensures ADF&G
maintains control over the funds and the maintenance
and operation of the facilities.
Part 4:
DEPARTMENT: Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Recorder's Office/Uniform
Commercial Code
ADD: $4,470.4 GF/PR (1005)
DELETE: $4,470.4 RSS (1156)
EXPLANATION: $4,470.4 of the Governor's request of
RSS was not switched from RSS to GF/PR in the House CS
as part of the Budget Clarification Project. This
amendment corrects this oversight and will not impact
the Recorder's Office/Uniform Commercial Code's
budget.
Part 5:
DEPARTMENT: Public Safety
APPROPRIATION: Alaska State Troopers
ALLOCATION: Narcotics Task Force
DELETE: $25.2 Stimulus09 (1212)
EXPLANATION: The Governor requested a $25.2 fund
source change from one-time ARRA funding to general
funds to cover salary adjustments for existing PSEA
bargaining agreements. The basis of the request was
that the ARRA fund source was "unrealizable" in this
allocation in FY11.
While it may be true that no new ARRA receipts will be
available in FY11, carryforward of $5.4 million ARRA
receipts is anticipated. In this situation, the fund
change is not necessary because the ARRA fund source
will be available in FY11. However, by denying the
agency's request, the subcommittee not only denied an
increase in GF, but also appropriated new FY11 ARRA
funding.
This amendment eliminates new ARRA authorization
(which is not expected to be available) in
anticipation of using a portion of the allocation's
$5.4 million ARRA carryforward to pay the salary
adjustments.
Part 6:
DEPARTMENT: Revenue
APPROPRIATION: Child Support Services Division
ALLOCATION: Child Support Services Division
DELETE: Page, 37, lines 6-9, all material, which
reads: The amount appropriated by this appropriation
includes the unexpended and unobligated balance on
June 30, 2010, 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: The deleted language permits CSSD to
carry-forward receipts from the prior year. Because
the CS replaced receipts with General Fund Match, the
language is unnecessary.
Part 7:
DEPARTMENT: Revenue
APPROPRIATION: Child Support Services Division
ALLOCATION: Child Support Services Division
ADD: $297.0 Stimulus09 (1212)
Transaction Type: Inc OTI
EXPLANATION: This amendment authorizes expenditure of
$297,000 of federal FY10 ARRA Stimulus Funds. This
st
funding will be available to the Division in the 1
quarter of state FY11.
Part 8:
DEPARTMENT: Transportation & Public Facilities
APPROPRIATION: Design, Engineering & Construction
ALLOCATION: SE Design and Engineering Services
ADD: $50.0 General Fund Program
Receipts (1005)
DELETE: $50.0 Receipt Supported Services
(1156)
EXPLANATION: This was an omission in the fund source
changes that are a part of the Budget Clarification
Project.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 1 was a Legislative
Finance Services technical amendment with a net zero
financial effect. The amendment that would properly
classify fund sources.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 1 was ADOPTED.
3:20:19 PM
Amendment 2
Co-Chair Hawker MOVED to ADOPT Amendment 2 (26-GH2823\M.10,
Bailey, 3/8/10):
Page 65, line 30:
Delete "$35"
Insert "$50"
Page 66, line 1, following "section":
Insert ", estimated to be $13,500,000,"
Page 66, line 5:
Delete "$35"
Insert "$50"
Page 66, line 7, following "section":
Insert ", estimated to be $13,500,000,"
Page 66, line 17, through page 68, line 10:
Delete all material and insert:
"$90 or more $20,000,000
89 19,500,000
88 19,000,000
87 18,500,000
86 18,000,000
85 17,500,000
84 17,000,000
83 16,500,000
82 16,000,000
81 15,500,000
80 15,000,000
79 14,500,000
78 14,000,000
77 13,500,000
76 13,000,000
75 12,500,000
74 12,000,000
73 11,500,000
72 11,000,000
71 10,500,000
70 10,000,000
69 9,500,000
68 9,000,000
67 8,500,000
66 8,000,000
65 7,500,000
64 7,000,000
63 6,500,000
62 6,000,000
61 5,500,000
60 5,000,000
59 4,500,000
58 4,000,000
57 3,500,000
56 3,000,000
55 2,500,000
54 2,000,000
53 1,500,000
52 1,000,000
51 500,000
50 0"
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
Numbers Section
DEPARTMENT: Various-as shown in the table below
ADD: $17,055.3 UGF (1004) Unrestricted
general funds
DELETE: $15,000.0 UGF (1004) Unrestricted
general funds (estimate)
Amount
Added to
AgencyBase
Department of Administration 22.8
Department of Corrections 2,655.3
Department of Education and Early Development 57.2
Department of Environmental Conservation 37.8
Department of Fish and Game 77.7
Department of Health and Social Services 600.0
Department of Labor and Workforce Development 35.3
Department of Military and Veterans Affairs 327.3
Department of Natural Resources 68.0
Department of Public Safety 273.9
Department of Transportation & Public Facilities 11,250.0
University of Alaska 1,650.0
Total Unrestricted General (UGF) 17,055.3
EXPLANATION: This amendment revises the amounts
appropriated under the "fuel trigger" provisions of
section 21 by increasing the trigger start point from
$36 to $51 dollars. This change reduces the projected
annual appropriations for high fuel costs by $15
million annually at any oil price above $51. The
reduction appears in budget reports as a revised
estimate of the impact of section 21. The actual
impact will depend upon fuel prices during FY11.
The amendment also distributes $15 million to various
agencies to offset the reduction in funding through
the trigger mechanism. That $15 million is distributed
to agencies in the same manner and amount as occurred
in FY10 under the August 1 trigger mechanism. In
addition, $2,053,300 is appropriated to the Department
of Corrections in order to align available funding for
utilities with documented expenditures. The $17.05
million will be added to agency base budgets.
The intent of the amendment is to shift funding from
contingency (trigger) to base in recognition of
sustained high oil prices. The amendment reduces the
projected trigger appropriations from $42 million to
$27 million.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 2 would change the
fuel trigger. The amendment would take the first $15
million formally allocated under the fuel trigger when oil
was $30 per barrel and put the amount into the base budget
of agencies. The amendment also would lower the amount of
the contingent appropriation by the same $15 million. There
would be a net zero impact; however, analysis of the
effectiveness of the trigger has identified that the
Department of Corrections needed an additional $2 million
to make the fuel trigger work. He noted disagreement about
the issue.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 2 was ADOPTED.
3:22:15 PM
Amendment 3
Co-Chair Hawker MOVED to ADOPT Amendment 3:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
Transfer In $2,230.8 to Alaska Court System
Therapeutic Courts
DEPARTMENT: Alaska Court System
APPROPRIATION: Therapeutic Courts (new appropriation)
ALLOCATION: Therapeutic Courts
TRANSFER IN: General Funds 1004 $1,356.3
GF/MH 1037 $ 357.2
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 517.3
ADD: Intent: It is the intent of the legislature that
contracts to purchase services associated with
therapeutic courts be based loosely on the amounts
transferred from other agencies into this
appropriation. Contractual agreements should be for
amounts determined by the Court System to be in the
best interest of operating therapeutic courts in an
efficient and effective manner.
EXPLANATION: This amendment will consolidate all
funding for Therapeutic Courts into a new
appropriation in the Alaska Court System. Funds will
be transferred from the Departments of Law ($364.7),
Health and Social Services ($1,663.7), Corrections
($252.2), and Administration ($355.0) and the Alaska
Court System/Therapeutic Court's component ($2,018.3)
in an effort to enhance coordination and
accountability for the Therapeutic Courts programs.
Transfer Out $364.7
DEPARTMENT: Department of Law
APPROPRIATION: Criminal Division
rd
ALLOCATION: 3 Judicial District/Anchorage
TRANSFER OUT: $300.3 General Funds 1004
ADD: $300.3 I/A Receipts (1007)
th
ALLOCATION: 4 Judicial District
TRANSFER OUT: $64.4 GF 1004
ADD: $64.4 I/A Receipts (1007)
Transfer Out $1,258.9
DEPARTMENT: Department of Health & Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
TRANSFER OUT: General Funds 1004 $ 272.0
GF/MH 1037 $ 150.0
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 450.0
ADD: $872.0 I/A Receipts (1007)
ALLOCATION: Alcohol & Substance Abuse Programs
TRANSFER OUT: General Funds 1004 $ 319.6
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 67.3
ADD: $254.7 I/A Receipts (1007)
Transfer Out $252.2
DEPARTMENT: Department of Corrections
APPROPRIATION: Inmate Health Care
ALLOCATION: Behavioral Health Care
TRANSFER OUT: $207.2 GF/MH 1037
ADD: $207.2 I/A Receipts (1007)
APPROPRIATION: Population Management
ALLOCATION: Statewide Probation and Parole
TRANSFER OUT: $45.0 General Funds 1004
ADD: $45.0. I/A Receipts (1007)
Transfer Out $355.0
DEPARTMENT: Department of Administration
APPROPRIATION: Legal & Advocacy Services
ALLOCATION: Public Defender Agency
TRANSFER OUT: $290.0 General Funds 1004
ADD: $290.0 I/A Receipts (1007)
ALLOCATION: Therapeutic Courts Support Services
TRANSFER OUT: $65.0 General Funds (1004)
ADD: $65.0 I/A Receipts (1007)
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 3 would implement
the establishment of therapeutic courts as an Alaska Court
System appropriation. Money that has been used for or
appropriated for intended use by the therapeutic courts
would be taken out of the Departments of Law, Health and
Social Services, Corrections, and Administration; money in
the agencies would be replaced with receipt authority so
that the court system could buy services through
reimbursable services agreements (RSAs). The court system
would be directed as much as possible to procure the
services from the agencies from which the money was
secured. He underlined the legislature's commitment to a
more centralized management of the therapeutic courts.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 3 was ADOPTED.
3:24:20 PM
Amendment 4
Co-Chair Hawker MOVED to ADOPT Amendment 4:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Revenue
APPROPRIATION: Alaska Permanent Fund Corporation
ALLOCATION: APFC Custody and Management Fees
Section 1, Page 38, Line 3:
Convert the APFC Custody and Management Fees
allocation into a separate appropriation.
EXPLANATION: This amendment will restrict use of
APFC Custody and Management Fees to their sole
intended purpose by placing them in a stand-alone
appropriation.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 4 would create a
separate appropriation within the Department of Revenue
budget for the Alaska Permanent Fund that would separate
management and custodial fees from the internal operations
of the fund corporation. He emphasized that the item had
nothing to do with the dividend, but would restrict the
management funds.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 4 was ADOPTED.
3:25:38 PM
Amendment 5
Co-Chair Hawker MOVED to ADOPT Amendment 5:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
DELETE: INTENT
It is the intent of the legislature that future
requests by the University of Alaska for Unrestricted
General Funds move toward a long-term goal of 125% of
Actual University Receipts for the most recently
closed fiscal year.
ADD: INTENT
It is the intent of the legislature that the
University of Alaska's FY12 budget request for
unrestricted general funds not exceed 129 percent of
actual University Receipts for FY10. It is the intent
of the legislature that future requests by the
University of Alaska for unrestricted general funds
move toward a long-term goal of 125 percent of actual
University Receipts for the most recently closed
fiscal year.
EXPLANATION: The addition of a specific target for
FY12 is intended to clarify and limit the expectations
of both the University and the legislature.
The unrestricted general fund (UGF) increment in the
CS was based on the ratio of UGF to designated general
funds (DGF). DGF includes TVEP funding (state funding
for technical and vocational education) in addition to
University Receipts. Inclusion of TVEP in future
funding ratios would result in the state matching
state funds appropriated to the University. If the
match ratio used to determine the FY11 appropriation
had used a ratio of UGF to University Receipts of 129
percent, the University would have received $1.5
million less in unrestricted general funds. Applying a
129 percent ratio in FY12 assures movement toward the
long-term goal that UGF not exceed 125 percent of
University Receipts.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker reported that the university's budget had
been considered by the committee as a whole, resulting in a
formula for matching university-generated receipts.
Amendment 5 would expand intent language related to the
ratio not exceeding the current ratio and general fund
receipts moving towards 125 percent of actual receipts for
the previously closed fiscal year. He noted that the
current ratio was 127 percent; the amendment shows 129
percent and incorporates a revision of the calculations of
the university receipts. The calculation had previously
inappropriately included Technical and Vocational Education
Program (TVEP) funding, which is state money that does not
belong in the matching formula.
Representative Gara disagreed with the approach. He
believed the 129 percent ratio was substantially lower than
the 135 percent ratio that has existed over the past five
years for the university. He understood the legislature's
caution regarding agency growth, but he viewed the
university as a major creator of jobs in the state. He
would have preferred the historical ratio formula.
Co-Chair Stoltze MAINTAINED his OBJECTION.
3:28:56 PM
A roll call vote was taken on the motion to adopt Amendment
5.
IN FAVOR: Fairclough, Joule, Kelly, Salmon, Thomas,
Stoltze, Hawker
OPPOSED: Doogan, Foster, Gara
Representative Austerman was absent from the vote.
The MOTION PASSED (7/3). Amendment 5 was ADOPTED.
Co-Chair Hawker noted that any committee member who wished
to could add their name as a sponsor to any amendment.
3:31:30 PM
Amendment 6
Co-Chair Hawker MOVED to ADOPT Amendment 6 (26-GH2823\M.9,
Bailey, 3/8/10):
Page 79, line 22, through Page 80, line 2:
Delete all material and insert:
"* Sec. 33. CONSTITUTIONAL BUDGET RESERVE FUND. (a) An
amount equal to the investment earnings that would
otherwise have been earned by the budget reserve fund
(art. IX, sec. 17, Constitution of the State of
Alaska) on money borrowed from the budget reserve fund
to meet general fund expenditures during the fiscal
year ending June 30, 2011, is appropriated from the
general fund to the budget reserve fund for the fiscal
year ending June 30, 2011, for the purpose of
compensating the budget reserve fund for lost
earnings."
Page 80, line 5, following "fund":
Insert "(art. IX, sec. 17, Constitution of the
State of Alaska)"
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 6 would clarify
language in statute so that when money from the
Constitutional Budget Reserve (CBR) is used to meet short-
term cash-flow requirements of the general fund, the loan
would be paid back with interest in the amount that the CBR
would have made.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 6 was ADOPTED.
3:32:44 PM
Amendment 7
Co-Chair Hawker MOVED to ADOPT Amendment 7:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: AK Fetal Alcohol Syndrome Program
ADD: Intent language at the allocation level
It is the intent of the legislature that AK Fetal
Alcohol Syndrome Programs located in Juneau, Kenai,
Sitka, and Bethel be expanded.
EXPLANATION: This amendment specifies that an
increment approved by the HSS subcommittee is intended
to expand services in the four named communities. The
transaction title will be modified to reflect the
subcommittee's intent.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 7 reflected the
intent of the subcommittee and the Department of Health and
Social Services in adopting an increment for fetal alcohol
syndrome programs specifically in Juneau, Kenai, Sitka, and
Bethel. The language had not been included in the
subcommittee budget.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 7 was ADOPTED.
3:33:45 PM
Amendment 8
Co-Chair Hawker MOVED to ADOPT Amendment 8:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
STATEWIDE 10% GENERAL FUND TRAVEL REDUCTION
10% Amendment
DEPARTMENTReductionReduction
Administration ( 112.0) (112.0)
Commerce, Community & Econ Dev ( 135.2) (135.2)
Corrections ( 197.4) (197.4)
Education & Early Dev ( 68.4) (68.4)
Environmental Conservation ( 115.9) (115.9)
Fish and Game ( 191.5) (191.5)
Governor ( 107.9) (107.9)
Health & Social Services ( 311.0) (311.0)
Labor & Workforce Dev ( 66.4) (66.4)
Law ( 118.4) (118.4)
Military & Veterans Affairs ( 17.2) (17.2)
Natural Resources ( 192.2) (192.2)
Public Safety ( 509.5) -
Revenue ( 48.1) (48.1)
Transportation ( 422.9) (422.9)
University of Alaska ( 1,496.8) -
Alaska Court System ( 171.9) (171.9)
Legislature ( 387.7) (387.7)
TOTAL ( 4,670.4) (2,664.1)
Explanation: This amendment reduces travel
authorization in allocations with budgeted travel and
with general funds. Departments should prioritize
travel and use existing technology as appropriate to
facilitate meetings. The University and Public Safety
are excluded from the reductions. In addition, three
fund codes (PFD Criminal Funds, Vehicle Rental Taxes,
and VoTech Ed) were excluded because the legislature
fully appropriates these funds. Because the budget
does not identify line items by fund source, the
following method was used to determine the amount of
travel that is reduced in each allocation.
Ratio of each general fund code
10% of the FY09
(UGF and DGF) in the House CS Amount of the
actual travel
X=
to the total FY11 allocation's travel reduction
expenditures
funding
Please see the Transaction Detail report for the
amounts eliminated from each allocation.
Note: Combining this amendment with other House
Finance Committee Actions may cause negative line
items or fund sources. Should this occur, Legislative
Finance will make technical adjustments to the amounts
in the travel amendment to correct these errors.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 8 was the result of
debate about cutting costs. The 2009 travel budget for
state agencies was considered and Legislative Finance
calculated the number required to reduce the travel budget
by ten percent. Travel is currently a line-item adjustment
that does not require permission from the legislature to
move around. He viewed the amendment as a general statement
of intent for agencies to prioritize and operate more
efficiently. He noted that the university and the
Department of Public Safety were exempted from the
reduction.
Co-Chair Hawker emphasized that the reduction would be
calculated only on the general fund component of agency
budgets, not on travel funded by federal or other sourced
funds. The proposed total reduction would be $2.6 million.
3:37:31 PM
Co-Chair Stoltze noted that the legislature's travel budget
was cut as well. Co-Chair Hawker detailed that the
legislature's travel budget would be reduced by $387,000.
Representative Gara thought the approach was fair, but
believed that employees from the Alaska Court System and
the Department of Law often traveled because they had to.
Co-Chair Hawker agreed that the process would spark debate.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 8 was ADOPTED.
3:39:07 PM
Amendment 9
Co-Chair Hawker pointed out that Amendment 9 was related to
Medicaid appropriations. He MOVED to ADOPT Amendment 9:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Medicaid Services (new appropriation)
ADD: Transfer the following allocations from their
existing locations to the newly created Medicaid
Services appropriation:
Behavioral Health Medicaid Services
Children's Medicaid Services
Adult Preventative Dental Medicaid Services
Health Care Medicaid Services
Senior and Disabilities Medicaid Services
ADD: Intent language at the appropriation level
It is the intent of the legislature that the
Department of Health and Social Services identify and
investigate alternatives that could improve internal
administrative management and accounting controls over
the Medicaid program, including determining the
viability of outsourcing those activities. The
Department should be prepared to present its findings
to the legislature during the 2011 session.
EXPLANATION: Consolidate all Medicaid allocations
within the Department of Health and Social Services to
the newly created Medicaid Services appropriation.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that the amendment would put all
Medicaid services into a single appropriation in the
Department of Health and Social Services budget. He
provided historical background. The department had
requested the change. The 2003 legislature had made the
decision to separate the Medicaid components into their
functional categories (including Behavioral Health Medicaid
Services, Children's Medicaid Services, Adult Preventative
Dental Medicaid Services, Health Care Medicaid Services,
and Senior and Disabilities Medicaid Services). He spoke to
the evolving process of centralization and de-
centralization. He noted problems with revenue collections
at the department; he believed the single appropriation
would aid the agency in establishing needed controls.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 9 was ADOPTED.
3:41:49 PM
Amendment 10
Co-Chair Hawker MOVED to ADOPT Amendment 10:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Medicaid Services (new appropriation)
ALLOCATION: Behavioral Health Medicaid Services
DELETE: $1,116.2 GF/MH (1037)
DELETE: $1,628.1 Federal Receipts (1002)
DELETE: $297.1 Stimulus09 (1212)
ALLOCATION: Health Care Medicaid Services
ADD: $75.4 GF/Match (1003)
ADD: $146.5 Federal Receipts (1002)
ADD: $17.5 Stimulus09 (1212)
ALLOCATION: Senior and Disabilities Medicaid Serv.
DELETE: $1,616.7 GF/Match (1003)
DELETE: $2,201.5 Federal Receipts (1002)
DELETE: $447.5 Stimulus09 (1212)
EXPLANATION: Funding adjustments to Medicaid
allocations split the differences between the
Governor's Amended Medicaid request and projections of
a legislative consultant. The result is a reduction of
2,657.5 in general funds.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 10 was also
related to Medicaid and would split the difference between
the agency's originally requested budget for the Medicaid
components and the analysis that the consultant Janet Clark
had presented. He referred to debate in committee. The
department would like more money but acknowledged the
problem of excess authority related to federal funds, which
had contributed to an environment of less control. Since
Medicaid is a formula program, the department will have to
ask for more money if it falls short. The intent is to
reduce the amount of general funds for the Medicaid program
in its totality while allowing the agency to move money to
functional areas; $2.6 million in general funds would be
removed.
Representative Gara spoke in support of the amendment. He
clarified that the amendment would not cut services to
qualified people. The amendment represented the
legislature's best estimate of how many people would
request services before the end of the next fiscal year. He
thought the approach was fair.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 10 was ADOPTED.
3:45:47 PM
Amendment 11
Co-Chair Hawker MOVED to ADOPT Amendment 11:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Health and Social Services
APPROPRIATION: Health Care Services
ALLOCATION: Medicaid Services
DELETE: $4,900.0 General Fund (1004)
EXPLANATION: Prior to the Medicare Part D program
implementation, the State paid prescriptions for
Medicaid dual-eligibles (enrollees in both Medicaid
and Medicare) through Medicaid. With the
implementation of Medicare Part D, the state no longer
pays for dual eligibles' prescriptions but does help
finance them through payments to the federal
government. This is commonly referred to as the
"Clawback." Payments are based on a per capita cost
calculated by the federal government and made on a
monthly basis. The state's portion is determined by
the Title XIX FMAP rate.
In October 2008, ARRA provided an increase in the
State's FMAP rate; it was initially determined that
this higher FMAP rate would not apply to the Medicare
Part D Clawback payments. On Feb 18, 2010, HHS
announced a change to this decision and will now apply
the ARRA FMAPs to the Clawback payments. This change
will be retroactive to Oct 1, 2008. The State's
overpayments of past monthly Clawback will be refunded
in the form of a credit to offset future payments.
Alaska's credit from Oct 1, 2008 through Dec 31, 2009
is approximately $5.1 million. In addition, future
payments will be calculated using the ARRA FMAP and
there will be savings from what was originally
budgeted for Clawback payments. The savings will be
approximately $390,000 per month for the remaining 6
months of SFY 2010 (Jan 1 - June 30, 2010). This is a
total of $7.5 million in savings for SFY 2010 from
original calculations.
These savings will continue through Dec 31, 2010 and
are anticipated to be further extended through June
30, 2011 at approx. $414,000 per month for a total
SFY2011 savings for $4.9 million over 12 months.
Savings for SFY2010 are higher than those for SFY2011
due to the credit from past payments; in effect 21
months of savings are being realized in SFY2010.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker explained that Amendment 11 (also related
to Medicaid) reflected a change to federal regulation that
occurred after the governor's budget was prepared. An
adjustment was made to amounts reimbursed to the state
under the "Part D" Medicaid prescription drug "Clawback."
The state would be receiving an additional federal
reimbursement, saving the state from spending $4.9 million
in general funds. He reported that the Office of Management
and Budget (OMB) had prepared the amendment.
Co-Chair Stoltze WITHDREW his OBJECTION.
3:47:27 PM AT EASE
3:48:21 PM RECONVENED
There being NO further OBJECTION, Amendment 11 was ADOPTED.
Amendment 12
Co-Chair Hawker MOVED to ADOPT Amendment 12.
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan, Gara
DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Children's Services Management
ADD: $165.0 General Funds (1004)
ALLOCATION: Front Line Social Workers
ADD: $955.3 General Funds (1004)
APPROPRIATION: Public Health
ALLOCATION: Women, Children and Family Health
ADD: $347.8 General Funds (1004)
APPROPRIATION: Departmental Support Services
ALLOCATION: Administrative Support Services
ADD: $700.0 General Funds (1004)
ALLOCATION: Information Technology Services
ADD: $487.5 General Funds (1004)
EXPLANATION: Replace unrealizable interagency and
federal receipts due to the loss of Medicaid School
Based Claims funding. Reductions totaling $1.5 million
in interagency receipts were accepted in the House
Finance Subcommittee for the Children's Services
Management, Front Line Social Workers, and Women,
Children and Health allocations. An increase of $737.5
of general funds was accepted in the House Finance
Subcommittee action for the Information Technology
Services allocation. These changes total 2,655.6 of
general funds.
Co-Chair Stoltze OBJECTED.
Co-Chair Hawker detailed that Amendment 12 represented an
item referred by the subcommittee for full committee
consideration related to school-based Medicaid program
problems. Some of the funds were not available and the
Department of Education and Early Development asked for
general funds. He listed services affected, including
children's services, front-line social workers, public
health, and departmental administrative and support
services. He stated that he did not think individual agency
components should be punished and that the funds were
needed.
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 12 was ADOPTED.
3:51:26 PM
Amendment 13
Co-Chair Hawker MOVED to ADOPT Amendment 13:
OFFERED BY: Representatives Hawker, Stoltze, Thomas,
Austerman, Fairclough, Joule, Kelly, Doogan
DEPARTMENT: Health and Social Services
APPROPRIATION:Behavioral Health and Children' Services
ALLOCATION: (various, see table below)
ADD: $412.5 General Fund/Mental Health (1037)
Amount Fund Fund Title Appropriation Allocation
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