Legislature(2005 - 2006)SENATE FINANCE 532
04/11/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB130 | |
| HB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 66 | TELECONFERENCED | |
| + | HB 67 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 130 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 66(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."
CS FOR HOUSE BILL NO. 67(FIN)(brf sup maj fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
This was the first hearing for these bills in the Senate Finance
Committee.
Co-Chair Wilken gave an overview of the process to date of drafting
a proposed budget. The FY 05 budget total spending was
approximately $6.8 billion, including all funding sources of
federal funds, general funds, permanent funds, etc. The Governor's
proposed FY 06 budget submitted to the legislature December 15,
2004 was approximately $3.33 billion, which Co-Chair Wilken
calculated to be approximately $470 million or 6.44 percent higher
than the previous budget. General fund spending for FY 05 was
approximately $2.32 billion compared to the Governor's proposed FY
06 budget of $2.57 billion; an increase of about $252 million or
10.9 percent.
Co-Chair Wilken noted that some expenses are fixed and the
Committee would accept them and appropriate the necessary funding.
Labor contracts have been settled at a cost of $29 million to the
State and a policy call was made to fund those increases and not
require agencies to absorb the increases. Due to actions taken
three years prior regarding debt financing for education projects
through general obligation bonds would require payment of
approximately $132 million in FY 06. Medicaid costs have increased
approximately $60 million, although cost containment efforts are
underway. Funding for K-12 education would increase about $60
million. These increases total approximately $210 million in
increased expenses. The budget subcommittees had little control
over determinations regarding the funding of these expenses.
Co-Chair Wilken stated the Committee has discretion in the
allocation of approximately $80 million. The budget subcommittees
were charged with the task of making recommendations on this
funding. The subcommittees were directed to scrutinize any new
programs and justify any funding allocated above the FY 05
Management Plan amount. The subcommittees were to be "aware" of any
significant general fund increases, as well as programs in which
general funds were expected to be appropriated as a default to
"back-fill" the reduction of federal funding.
Co-Chair Wilken expressed concern about the addition of 124
positions created between the adjournment of the previous
legislative session and the start of the current session. The
Governor has also proposed creating another 264 positions in FY 06.
10:08:46 AM
Senator Hoffman questioned Co-Chair Wilken's statement that funding
for K-12 education would increase $60 million for FY 06. Senator
Hoffman had understood the amount would be $70 million.
Co-Chair Wilken affirmed Senator Hoffman's understanding was the
correct amount.
10:09:15 AM
Senator Dyson appreciated the value of Co-Chair Wilken's overview
and requested he repeat some of the information.
Co-Chair Wilken indicated the information would be distributed to
members in written format.
10:10:36 AM
Senator Bunde remarked that the misunderstanding of some agencies
that the FY 06 budget would be a "recovery budget" to offset
earlier economizing and budget reduction efforts had compounded the
challenges presented to the budget subcommittees. Some agencies are
expecting that funding would return to previous amounts. Instead,
he intended to provide the greatest return to the public. The least
amount necessary to maintain quality of life should be expended.
Department staff must understand the need to be efficient and that
any increased funding allocated for FY 06 would not likely be
available in future years. While the price of oil has increased and
is projected to stay high, the market is always uncertain. In
addition, less oil would be produced the following year.
The Committee then heard the budget subcommittee reports and
recommendations.
10:13:29 AM
Department of Fish and Game
Senator Bunde, Chair
Senator B. Stevens
Senator Ralph Seekins
Senator Hoffman
Introduction
The Department of Fish and Game subcommittee used the FY 06
adjusted base when determining appropriation levels and
accepted all departmental budget transactions from FY 05
Management Plan to the FY 06 adjusted base.
Our subcommittee reviewed the following motions and adopted
them at our close out meeting on April 4, 2005. This narrative
lists the proposed changes to the Governor's FY 06 requested
budget. Those components not listed in this narrative are
proposed at the same level as the Governor's FY 06 requested
budget.
Departmental Spending Levels
General Funds
Senate Subcommittee $30,806,400
Governor's Proposed 31,456,400
Federal Funds
Senate Subcommittee 60,099,600
Governor's Proposed 59,249,600
Other Funds
Senate Subcommittee 60,584,400
Governor's Proposed 61,045,900
Totals
Senate Subcommittee 151,490,400
Governor's Proposed 151,751,900
Subcommittee Recommendations
In Central Region Fisheries Management, an increment for
$150,000 was accepted. This general fund increment will be
used for sonar on the Kenai River.
In Westward Region Fisheries Management, $225,000 in Test Fish
Receipts was approved to support the Kodiak Crab Observer
Program.
In Headquarters Fisheries Management, a technical change of
$383,600 from Fish and Game Funds to Fish and Game Non-
dedicated Funds was adopted. This technical change replaces
the dedicated portion of the F&G funding with new fund code
for Non-dedicated F&G funding.
In Commercial Fisheries Special Projects, the same technical
change of $1,156,900 from Fish and Game Funds to Fish and Game
Non-dedicated Funds was adopted.
In the same section, an increment for $850,000 in federal
receipts to support the Kodiak Crab Observer Program was also
adopted.
In Sport Fisheries, another technical change of $9,000 from
Fish and Game Funds to Fish and Game Non-dedicated Funds was
adopted.
In Wildlife Conservation, another technical change of $80,400
from Fish and Game Funds to Fish and Game Non-dedicated Funds
was adopted.
In Wildlife Conservation Shooting Facilities, a transfer of
$636,100 and the corresponding PCNs to a new appropriation
called Wildlife Education Public Shooting Ranges was approved.
In State Subsistence, the general fund request for $400,000
was denied.
Position Analysis
In the FY 06 adjusted base budget, the department had 851 full
time positions, 818 part time, and 101 temporary employees.
The subcommittee approved the reduction of 1 permanent full
time position, 2 permanent part time positions and 1 temporary
position for FY 06.
Missions and Measures
The subcommittee applauds the efforts of the department in
establishing their mission and working on achieving their
measures. We dedicated two meetings to have the agency discuss
their measures with us. It is clear that they understand the
importance of using this tool to measure their progress, not
only for them, but for us as well.
FY 06 Intent Language
FY 06 - The department did not have any FY 06 intent language.
Senator Bunde shared that the Department was receptive to the
priorities established by the subcommittee, as well as the intent
that the Department's missions and measures more accurately portray
its activities.
Senator Bunde reported the subcommittee recommended an increase of
3.9 percent from the FY 05 appropriation, although the Governor
requested a 6.1 percent increase. Most of the increases recommended
were "built into the system", as indicated by Co-Chair Wilken.
Senator Bunde overviewed the subcommittee report.
10:18:32 AM
Senator Hoffman challenged the assertion that the subcommittee
recommendation reflects general fund reductions to the Governor's
proposed FY 06 budget. He contended the incremental reductions were
actually made to the FY 05 funding amounts and therefore the
subcommittee report recommends an overall budget reduction for the
Department.
10:19:51 AM
Senator Bunde stated the Governor's proposed budget contained a 6.1
percent increase to the FY 05 appropriation and the subcommittee
recommendation is for a 3.9 percent increase.
10:20:14 AM
Senator Hoffman gave the Kodiak observer program as an example of
an increment that would receive reduced funding for FY 06.
10:20:29 AM
Co-Chair Wilken noted the increments are from the FY 05 Management
Plan.
10:20:41 AM
Senator Stedman asked for elaboration of the recommended transfer
of $636,000 related to the shooting facilities component.
10:20:58 AM
Senator Bunde replied that the funds in question are "existing
funds". This program would receive no funding increase or decrease
from the FY 05 appropriation.
10:21:31 AM
Department of Labor and Workforce Development
Senator Con Bunde, Chair
Senator Tom Wagoner
Senator Bettye Davis
Introduction
The Department of Labor and Workforce Development subcommittee
used the FY 06 adjusted base when determining appropriation
levels and accepted all departmental budget transactions from
FY 05 Management Plan to the FY 06 adjusted base.
Our subcommittee reviewed the following motions and adopted
them at our close out meeting on April 7, 2005. This narrative
lists the proposed changes to the Governor's FY 06 requested
budget. Those components not listed in this narrative are
proposed at the same level as the Governor's FY 06 requested
budget.
Departmental Spending Levels
General Funds
Senate Subcommittee $14,653,800
Governor's Proposed 15,192,600
Federal Funds
Senate Subcommittee 92,431,300
Governor's Proposed 92,431,300
Other Funds
Senate Subcommittee 46,909,400
Governor's Proposed 46,553,300
Totals
Senate Subcommittee $153,994,500
Governor's Proposed 154,177,200
Subcommittee Recommendations
In the Labor Market Information section, an increment for
$120,000 to establish funding to support preparation for the
2010 federal census was accepted.
In Wage and Hour Administration, the general fund request of
$65,000 and one new full time position for a new Wage and Hour
Technician to review certified payrolls for resident hire
enforcement was denied.
In Employment and Training Services, $50,900 in General Fund
Match was accepted to supplement the STEP funding in Senior
Community Services Employment Program in order to fund at the
Governor's level.
In the Office of Citizenship Assistance, $126,200 was deleted.
Funding the "Jobs are Alaska's Future Initiative" is the
agency's top priority and the subcommittee supported them in
their goal to get more Alaskans in our workplace.
In Alaska Vocational Technical Center, an increment for
$325,000 for expansion of the LPN the Allied Health Program
was accepted.
Position Analysis
In the FY 06 adjusted base budget, the department had 875 full
time positions, 107 part time, and 10 temporary employees. The
subcommittee approved the addition of 1 permanent full time
position, 1 permanent part time position and 1 temporary
position for FY 06. The new positions are paid from the
Workers Safety and Compensation Administration Account.
Missions and Measures
The subcommittee applauds the efforts of the department in
establishing their previous missions and measures. The
department has shown success in their efforts to both assist
Alaskans in obtaining training that leads to employment and to
improve their health and safety once on the job. Success in
these programs is measured by the percentage of those who
receive training and subsequently either enter into or
maintain employment. In FY 04 95.1% of those trained went on
to become employed. For comparison this is an increase of
nearly 5% over the FY 01 rate of 90.3%.
FY 05 and FY 06 Intent Language
FY 05 - The department did not have any FY 05 intent language.
FY 06 - The department did not have any FY 06 intent language.
Senator Bunde expressed appreciation with the Department in working
with him to make budget reductions and in establishing priorities
based on the Department's needs.
Senator Bunde overviewed the subcommittee report.
LYNNE SMITH, Staff to Senator Bunde, was available for assistance.
AT EASE 10:23:52 AM/10:24:05 AM
Senator Bunde stated the subcommittee recommended a budget
reduction of 3.1 percent to the adjusted base, which is a 0.1
percent reduction from the Governor's requested FY 06 budget.
General fund spending would be reduced by $538,800; appropriation
of other funds would be increased $356,100, with a total reduction
of $182,700 appropriated to the Department.
10:27:16 AM
Senator Stedman pointed out that figures cited in the subcommittee
report and stated by Senator Bunde are different from those printed
in the commonly referred to "short forms" outlining the Governor's
proposed FY 06 operating budget.
10:28:11 AM
JAMES ARMSTRONG, Staff to Co-Chair Wilken, testified that the short
form budget books contain the data reflecting the Governor's FY 06
budget request submitted on December 15, 2004. The Office of
Management and Budget has submitted amendments to the original
request since that date, which are accounted for in the
subcommittee report.
10:28:51 AM
Senator Stedman clarified that the FY 06 adjusted base is the
calculation of the Governor's original request plus all amendments
submitted by the Office of Management and Budget to that request.
10:29:06 AM
Senator Olson asked if the additional funding for the Alaska
Vocational Technology Center (AVTC) would affect the number of
registered nurses (RN) that would be licensed in the State of
Alaska.
10:29:26 AM
Senator Bunde replied that registered nurses are certified through
the University of Alaska. The nurses trained though AVTC would
receive a Licensed Practical Nurse (LPN) certification.
10:29:43 AM
Senator Olson asked if the $325,000 would result in the licensing
of more LPNs or only expended to increase the number of teaching
staff, purchase new equipment, etc.
10:29:59 AM
Senator Bunde responded that the funding would be utilized to
increase the number of classes and reduce the time spent on a
waiting list to get into classes.
10:30:12 AM
Senator Olson favored this expenditure.
10:30:16 AM
Senator Hoffman requested an explanation of the increased number of
positions.
10:30:37 AM
Ms. Smith told of the subcommittee recommendation for the addition
of one full time Wage and Hour Technician to be located in
Fairbanks.
10:30:59 AM
Senator Hoffman understood that the requested position was not
recommended.
10:31:03 AM
Ms. Smith clarified that the Department requested more than one new
Wage and Hour Technician position.
10:31:38 AM
GUY BELL, Assistant Commissioner, Department of Labor and Workforce
Development, testified that the new position is necessary to
address the backlog in the Fairbanks office.
10:32:00 AM
Senator Hoffman asked if once the backlog is under control whether
the position would be eliminated, or whether an increased workload
was anticipated to continue.
Mr. Bell anticipated that the workload would continue.
10:32:33 AM
Department of Natural Resources
Senator Con Bunde, Chair
Senator Ben Stevens
Senator Tom Wagoner
Senator Donny Olson
Introduction
The Department of Natural Resources subcommittee used the FY
06 adjusted base when determining appropriation levels and
accepted all departmental budget transactions from FY 05
Management Plan to the FY 06 adjusted base.
Our subcommittee reviewed the following motions and adopted
them at our close out meeting on April 5, 2005. This narrative
lists the proposed changes to the Governor's FY 06 requested
budget. Those components not listed in this narrative are
proposed at the same level as the Governor's FY 06 requested
budget.
Departmental Spending Levels
General Funds
Senate Subcommittee $52,303,600
Governor's Proposed 53,257,100
Federal Funds
Senate Subcommittee 13,749,200
Governor's Proposed 13,749,200
Other Funds
Senate Subcommittee 43,736,600
Governor's Proposed 42,914,200
Totals
Senate Subcommittee 109,789,400
Governor's Proposed 109,920,500
Subcommittee Recommendations
In the Commissioner's Office, a general fund increment of
$81,100 for a Communications Officer was denied.
In Oil and Gas Development, an increment for $978,600 for Gas
line Commercialization and Expanding Investment in Exploration
was accepted. The increment is being funded by $733,900 in
general fund and $244,700 in permanent fund receipts.
In the Office of Habitat Management and Permitting, a general
fund increment for $50,000 for research projects throughout
the state was denied.
In Claims, Permits and Leases, the subcommittee approved an
$87,900 fund source switch from general fund to permanent fund
receipts.
In Geological Development, an increment for $300,000 was
approved in Geological Data for Frontier Hydrocarbon Basins.
This increment is being funded by $225,000 in general fund and
$75,000 in permanent fund receipts.
In Geological Development, a fund source change for $99,200
was adopted. To realign funding sources to reflect actual work
activities, the increment will be switched from general fund
to permanent fund receipts.
In Agricultural Development, a $315,600 fund source change
from general fund to Agricultural Revolving Loan Fund was
adopted.
In Parks and Recreation Management, per AS 37.05.144, program
receipts are to be used only by the program generating the
receipts. Department of Natural Resources requested RSS in an
allocation that does not generate RSS. This $99,400 fund
source change swaps GF and RSS between allocations (Parks
Management and Parks & Recreation Access) in order to meet the
requirements of AS 37.05.144.
Positions Analysis
In the FY 06 adjusted base budget, the department had 729 full
time positions, 260 part time, and 94 temporary employees. The
subcommittee approved a net addition of 11 permanent full time
positions, 4 permanent part time positions and the reduction
of 3 temporary positions for FY 06. The new positions are paid
from a mixture of funding sources: general fund, permanent
fund receipts, federal, state land fund, CIP receipts, I/A
receipts and RSS (the 4 part time positions).
Missions and Measures
The subcommittee applauds the efforts of the department in
establishing their previous missions and measures. The
department accepts the responsibility of being held
accountable to their goals and is diligently working to that
end. As the department leads the way into more oil and gas
development in the state, we anticipate they will continue to
strive towards meeting the missions and measures.
FY 06 Intent Language
FY 06 - The subcommittee adopted the following language:
It is the intent of the legislature that two natural
Resource Specialist II positions (one PFT, one PPF
[PPT?]) shall be dedicated to preference leases until the
backlog is fully addressed.
The Senate subcommittee adopted this language, however,
funding of the $106,700 using the State Land Income Fund and
adding 1 full time and 1 part time position, which was not
included in the subcommittee's budget.
Senator Bunde applauded the Department's understanding of the
budgetary challenges faced by the subcommittee in making funding
recommendations. The subcommittee recommended a .1 percent decrease
in the appropriation of all funding source with a .18 percent
decrease in general funds. Resource development is necessary to
ensure that Alaska continue as a "resource state".
Senator Bunde overviewed the subcommittee report. He noted that if
the funding source for the Gasline Commercialization and Expanding
Investment in Exploration project needed to be changed, he
recommended the item not be funded.
10:37:10 AM
Co-Chair Wilken highlighted the proposed intent language.
10:37:26 AM
Senator Hoffman requested justification for increasing, by 11, the
number of permanent full time positions for this Department.
10:37:36 AM
Senator Bunde replied that permitting and resource development
activities require additional efforts.
10:37:54 AM
Ms. Smith listed the proposed positions: four would be added to the
Division of Oil and Gas, one Gasline Office Coordinator position
for the Gas Pipeline Office, a new Executive Director position for
the North Slope Science Initiative within the Large Project
Permitting Section, a total of six new positions dedicated to
General Mine Permitting in the Claims, Permits and Leases Section,
one new position to support the Large Projects Manager position,
two new Land Surveyor positions would be added to the Land Sales
and Municipal Entitlements Section, one new position for Geological
Development to address Geological Data Frontier for the Hydrocarbon
Basins, one new position for Agricultural Development, and one
Natural Resource Conservation Development Board Project Coordinator
position for Conservation and Development.
Ms. Smith noted the total of 16 newly created positions qualifying
that six existing positions would be eliminated from Parks and
Recreation Access.
10:39:15 AM
Senator Hoffman asked if the elimination of the six positions would
result in less access to State parks.
10:39:21 AM
Ms. Smith replied that the positions in question were funded as
Highway Enhanced Projects through the Department of Transportation
and Public Facilities.
Co-Chair Green asked about the discussions with the Division of
Agriculture director that resulted in the subcommittee
recommendations regarding the Agriculture Revolving Loan Fund.
10:39:50 AM
Senator Bunde responded that the Department supported the
recommendation in consideration of the Department's
prioritizations.
Co-Chair Green asserted that the Division did not support the
recommended change, as it would have a negative impact on the
revolving loan fund. The balance of the fund is likely the lowest
in its history. She cautioned against reducing the balance too
much.
10:42:33 AM
Department of Commerce, Community and Economic Development
Senator Bert Stedman, Chair
Senator Gary Stevens
Senator Albert Kookesh
Introduction
The Department of Commerce, Community and Economic Development
subcommittee used the FY 06 adjusted base when determining
appropriation levels. The subcommittee accepted all
departmental budget transactions from FY 05 Management Plan to
the FY 06 adjusted base.
Departmental Spending Levels
General Funds
Senate Subcommittee $8,220,200
Change to FY 05 Adjusted Base 2.9%
Governor's Proposed $8,970,200
Governor to Subcommittee (8.4%)
Federal Funds
Senate Subcommittee $26,590,600
Change to FY 05 Adjusted Base 2.3%
Governor's Proposed $26,590,600
Governor to Subcommittee (0.0%)
Other Funds
Senate Subcommittee $95,098,400
Change to FY 05 Adjusted Base 3.7%
Governor's Proposed $100,811,200
Governor to Subcommittee (5.7%)
Totals
Senate Subcommittee $129,909,200
Change to FY 05 Adjusted Base 3.2%
Governor's Proposed $136,372,000
Governor to Subcommittee (4.7%)
Departmental Structure
The subcommittee moved the entire appropriation for the Office
of Economic Development from the Commissioner's Office to the
Community Assistance & Economic Development section where it
will be more appropriately situated.
The subcommittee changed the name of the Banking, Securities
and Corporations appropriation name to Banking and Securities
to more accurately reflect the mission of that group.
The subcommittee transferred all Community Development Quota
(CDQ) positions and funding from Banking and Securities to a
new appropriation called the Community Development Quota
Program. This allows better tracking and ensures that all
funding spent on the CDQ program is generated by the program.
Subcommittee Recommendations
In the Commissioner's Office, the subcommittee moved $54,000
from Personal Services and $25,000 from Services into the
Travel line to more accurately reflect the commissioner's FY
06 travel plans. Although the Department expects the
commissioner's travel expenses to approach $110,000, it had
only budgeted $31,000.
In Community Advocacy, a $60,000 fund source change from Fish
Fund Income to a newly created Special Vehicle Receipts fund
source was accepted. This funding will be used to pay for
statewide marine safety and education programs.
Also in Community Advocacy, a $650,000 decrement in
Interagency Receipts to reflect the FY 05 sunsetting of the
Alaska Regional Development Organization Program (ARDOR) was
accepted. The subcommittee also applied a matching decrement
of $650,000 in AIDEA Receipts from the Alaska Industrial
Development & Export Authority for the same reason.
In the Qualified Trade Association Contract with the Alaska
Travel Industry Association, $250,000 of a total $1,000,000
General Fund increment request was accepted. $750,000 was
denied. These state funds must be matched with private sector
dollars. The $350,000 increment still represents a 6.25%
increase for tourism marketing over FY 05.
At the Alaska Energy Authority (AEA), the subcommittee denied
the governor's $5,030,000 increment in PCE funds for the Power
Cost Equalization Program. The request represented a 32%
increase over FY 05 management plan and would have required a
$4.3 million general fund offset to recapitalize the PCE
Endowment.
Also at AEA, the subcommittee moved $64,000 from Personal
Services back into the Grants line. The cost of administering
the Power Cost Equalization program should come out of Grant
funds, no Personal Services.
At the Alaska Seafood Marketing Institute, the subcommittee
changed $4,000,000 from Receipt Supported Services to
Statutory Designated Program Receipts to reflect the proper
funding source of this federal funding.
In the Occupational Licensing section, the subcommittee change
$700,800 from Receipts Supported Services (RSS) to Business
License and Corporation Receipts to properly reflect the
relocation of the Corporations group from Banking and
Securities into Occupational Licensing.
Also in Occupational Licensing, the subcommittee decremented
$32,800 of Receipts Supported Services funding for the Board
of Real Estate Appraisers. HB 47 will extend this board and
funding is reflected in the fiscal note for that legislation.
Positions Analysis
The subcommittee approved a net addition of 8 permanent full-
time positions for FY 06. One of these positions is funded
with general funds.
· In community Advocacy, a $75,100 GF increment was
accepted to fund a new Local Government Specialist
position to assist the Local Boundary Commission.
· At the Alaska Industrial Development and Export Authority
(AIDEA), a GF decrement of $76,200 was accepted to
eliminate a Grants Administrator position that is no
longer required.
· In the Community Development Quota Program, a $101,900
RSS increment was accepted to fund a new CDQ Manager
Position.
· At the Alaska Aerospace Development Corporation (AADC) an
AADC fund increment totaling $502,100 was accepted to
hire four new support managers and one new maintenance
technician to work on range safety and telemetry system
development at the Kodiak Launch Complex.
· At the Regulatory Commission of Alaska, a RCA Receipts
increment of $192,000 was accepted to add an Advisory
Section Manager and a Commission Section Manager
position.
Missions and Measures
The subcommittee spent a brief amount of time reviewing the
department's top-level missions and measures. Although it is
clear that the department has made progress recently on
revising its division level missions and measures, it was
recognized that the department's top-level measures might need
some further review. The department performs a variety of
diverse functions and the departmental missions should reflect
that variety and enable it to accurately measure its progress.
The department's second performance result "Increase number of
Alaska citizens who have access to local government services"
seemed particularly vague and the subcommittee suggested that
it be reviewed.
FY 05 and FY 06 Intent Language
FY 05 - The department had no intent language in the FY 05
budget.
FY 06 - The subcommittee adopted the following intent language
for the FY 06 budget:
It is the intent of the legislature that the travel in
the Commissioner's Office be limited to the amount
budgeted in the travel line.
Senator Stedman outlined the subcommittee report.
10:49:32 AM
Senator Hoffman asked about the proposed new position funded with
general funds.
Co-Chair Wilken replied that the position would be a Government
Specialist to support the Local Boundary Commissions.
Senator Hoffman asked if the other seven new positions would be
federally funded or a combination of program receipts and other
funding sources.
MILES BAKER, staff to Senator Stedman, testified overviewed the
Positions Analysis contained in the subcommittee report.
10:51:27 AM
Senator Hoffman asked the need for an additional position in the
Local Boundary Commission section.
10:51:29 AM
Mr. Baker understood considerable amount of work is associated with
the studying of potential new borough formations. Most of the
additional workload relates to the mandatory borough initiative.
10:52:08 AM
Senator Olson questioned the permanent classification for the
position. He surmised the study of potential new boroughs would not
continue indefinitely.
10:52:35 AM
Mr. Baker affirmed the position would be permanent full-time.
10:52:42 AM
Co-Chair Green predicted the study would require a significant
length of time and is progressing slowly.
10:52:50 AM
Senator Hoffman characterized the efforts relating to the potential
formation of new boroughs as "part of the bigger and brighter
bureaucracy budget."
10:53:03 AM
Senator Olson referenced the recommendation for the transfer of
$64,000 within the Alaska Energy Authority (AEA) program for the
Power Cost Equalization (PCE) program. He asked the administrative
funding has historically been included in the Personal Services
component.
10:53:31 AM
Mr. Baker relayed that the Department "made that judgment call"
recently to include the funding in the Personal Services component
rather than the traditional Grant component.
Senator Olson clarified that the funding for administrative
expenses has never been allocated through the Personal Services
component.
Mr. Baker affirmed. The subcommittee therefore determined that the
administration of the PCE program should continue to be allocated
through the Grants component.
AT EASE 10:54:22 AM/10:55:36 AM
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