Legislature(2001 - 2002)
04/16/2002 04:28 PM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
CS FOR HOUSE BILL NO. 403(FIN) am (brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds."
SENATE BILL NO. 289
"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, from the
constitutional budget reserve fund; and providing for an
effective date."
CS FOR HOUSE BILL NO. 404(FIN)
"An Act making appropriations for the operating and capital
expenses of the state's integrated comprehensive mental health
program; and providing for an effective date."
SENATE BILL NO. 288
"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."
Department of Labor and Workforce Development
Senator Austerman, Chair
Senator Torgerson
Senator Elton
Cliff Stone, Staff to Senator Austerman, presented the subcommittee
report as follows.
Gov Amended $12,146,900
FY 02 Mgt Plan $12,228,100
SB 289 Intro $12,233,000
HB 403 House Final $10,775,300
Senate Allocation $11,494,400
Senate Subcommittee $11,494,400
Since our allocation was $719,100 above the final House
numbers we did not accept their decrement of $503,400 GF to
the Job Training Programs component under Employment Security,
and we did not accept their decrement of $3,700 general funds
to the Alaska Labor Relations Agency.
As in the House budget, we fully funded the increased labor
costs. We also fully funded the department's request of
$102,000 for a wage and hour technician and $92,000 for an
additional electrical inspector. An extra $9,100 was directed
towards the Mechanical Inspection component.
In addition, we allowed the third and final year for the fund
source changes to the Occupational Safety and Health component
($343,500) and the Workers' Compensation component ($625,400).
This action completes the conversion of federal grant matching
funds from general funds to fee based funding.
The subcommittee also reiterated that the Senate structure has
eight separate budget appropriations vs. the three budget
appropriations in the FY 03 House structure.
Finally, the subcommittee expressed support for the passage of
HB 262 that in part establishes a building safety account and
supports the positions that would be authorized for boiler
inspections and elevator inspections.
Senator Austerman stated that he had initially proposed utilizing
$212,000 of the amount allocated to the Department's budget by the
Senate Majority to increase the budget of the Department of
Military and Veterans Affairs. However, he informed the Committee
that Co-Chair Donley rejected the recommendation.
Department of Military and Veterans Affairs
Senator Austerman, Chair
Senator Davis
Senator Phillips
Senator Therriault
Senator Wilken
Mr. Stone presented the subcommittee report as follows.
Gov Amended $9,896,200
FY 02 Mgt Plan $8,517,500
SB 289 Intro $8,517,500
HB 403 House Final $8,924,400
Senate Allocation $8,517,400
Senate Subcommittee $8,517,400
As you can see from the numbers above, this department's
allocation is funded at the FY 02 management plan level.
Regardless of this fact, the subcommittee was able to fully
fund the increased labor costs of $110,000, the increased
grant for Veterans' Services of $200,000, the Air Guard's
Anchorage Airport Joint User Fees of $41,000, the Air Guard's
New Facilities operational costs in the amount of $52,700
(which is $4,200 under the House authorization) and the
increase in actuarial costs to retirement benefits of
$442,700.
In addition, we accepted the House GF decrements (Governor
amended) to the Air Force Association Air Show Grant of
$12,000 and a small technical adjustment of $700 to the State
Active Duty component of the Guard. The subcommittee allowed a
small technical addition of the words "Naval Militia" to the
Educational Benefits component of the Alaska National Guard
Benefits BRU. This was an oversight by the department and
should have been included in the Governor's request, as well
as the House version.
After funding the core services of the department, the
allocation still left the subcommittee the decision of where
to take an additional cut of $654,700. The department
recommended and we approved to take a decrement of $654,700 GF
and replace it with interagency receipts of $654,700 in the
Alaska Military Youth Academy.
The subcommittee also commented that if HB 312 (Relating to
funding the Alaska Challenge Youth Academy program) becomes
law as written, then the fiscal note will reduce the GF to
zero for the entire component and be funded with I/A receipts
from the Department of Education and Early Development. The
Senate Finance Committee may also want to consider creating a
new BRU/Component for the Academy within the DMVA budget
structure if HB 312 passes.
Senator Leman asked the reason for the reduction in funding for the
air show.
Mr. Stone responded this was the recommendation of General Phil
Oates, Commissioner of the Department of Military and Veterans
Affairs.
Senator Leman expressed he disagreed with this recommendation.
Senator Austerman commented the air show, as well as the youth
academy program, are not part of the original "design" of this
Department. Because of this, he stated, the subcommittee chose to
recommend reductions to these services rather than across-the-board
reductions to the remaining programs. He noted that if HB 312 does
not pass, all funding for the youth academy would be eliminated.
Senator Olson asked the definition of "Naval Militia".
Senator Wilken shared the question was raised in the subcommittee
hearing and the Department provided a written description [copy on
file].
University of Alaska
Committee of the Whole
Co-Chair Donley proposed adopting an allocation of $197,815,000
general funds, which is the amount established by the Senate
Majority, and is $2.315 million higher than the FY 02 Management
Plan.
Co-Chair Donley also suggested replacing science and technology
foundation funds in the FY 02 budget with funds from the science
and technology endowment. He stated this would increase funding
for the University of Alaska to the FY 02 level and equal to the
general fund appropriation approved by the House of
Representatives.
Co-Chair Donley then recommended that the Committee approve the
following transactions contained in the budget adopted by the House
of Representatives.
· general fund increment to replace the $2 million one-time
Alaska Commission on Postsecondary Education (ACPE)
Dividend funds
· increment of $36,800 Mental Health Trust Authority
Authorized Receipts (MHTAAR) to expand statewide delivery
of the Bachelor of Social Work degree
· accept all non-general fund increments and changes,
totaling approximately $14,836,000 in new federal receipt
authority and $35,727,700 in new authority for other
funds: inter-agency (I/A) receipts, University receipts
and Capital Improvement Project (CIP) receipts
Co-Chair Donley next suggested an additional transaction of an
estimated $13,200 statutory designated program receipts (SDPR) to
be included in the language section of the budget legislation for
net receipts from the sale of the University of Alaska license
plates. He explained this would allow the proceeds of the license
plate sales to go directly to the University.
Co-Chair Donley noted recommendation of a net zero technical
funding source change between University receipts and I/A receipts
for internal reporting purposes.
Co-Chair Donley summarized these changes would be identical to the
House of Representatives' budget with the exception that the Senate
Finance Committee version would utilize science and technical
foundation endowment funds rather than general funds. He pointed
out the appropriation is the same as approved by the House of
Representatives.
Senator Wilken respectfully suggested, "This is a good place to
start". He spoke of the "struggles" of funding all state agencies,
stressing the University is different from the agencies. He
reminded that President Hamilton promised the Committee four years
ago, "If you give me some of your money, I'll make it into new
money," which Senator Wilken attested has occurred. He pointed out
that the Legislature has appropriated approximately $35 million
additional funds to the University, which has resulted in $110
million increase to the University budget. He asserted that
investing in the University of Alaska is investing in the State's
economy. He spoke of fixed costs and additional programs that must
be funded to continue to educate Alaskans. He hoped the Legislature
would "continue the momentum."
Senator Hoffman asked for clarification of the discrepancy between
the amount of I/A receipts approved by the House of Representatives
and that proposed for the Senate Finance Committee.
AT EASE 4:45 PM / 4:46 PM
DAVID TEAL, Director, Division of Legislative Finance, explained
the University considers funds transferred within the university
system to be interagency receipts and funds that are transferred
from other state agencies to be university receipts. However, he
stated, it is often assumed that university receipts are new funds,
rather than "duplicated out of the budget". He stated the Division
of Legislative Finance, the Office of Management and Budget and the
University of Alaska reclassified those funds transferred from
other state agencies as I/A receipts and those funds transferred
within the University as Intra-University Transfers. He explained
this has no impact on the budget except to add a new fund code and
clarify funding sources.
Co-Chair Kelly suggested that rather than the Committee of the
Whole debate each component, the proposed report should be adopted.
He informed, however, that "the University is very near and dear to
me" and that he intended to identify additional funding sources
that could be appropriated. He advised he would prepare amendments
for consideration by the full Committee.
Co-Chair Donley commented that Co-Chair Kelly and Senator Wilken
have been "great champions of the University" and successful in
securing increased funds.
Senator Austerman shared he would not oppose adoption of the
recommendations at the subcommittee level. He did have concerns
about the science and technology endowment and stressed that if the
intent were to use the corpus of the endowment to fund operating
expenses, the matter would merit "solid concrete" discussion before
the full Committee as to the intended future of the endowment. He
qualified that he would not oppose utilizing the endowment's
interest earnings.
Co-Chair Kelly moved for adoption of the recommendations for the
University of Alaska budget.
Without objection the Committee of the Whole ADOPTED the
recommendations.
Co-Chair Donley noted a committee substitute would be drafted to
incorporate the recommendations in the subcommittee reports.
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