Legislature(2005 - 2006)SENATE FINANCE 532
04/14/2005 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB 67 | |
| 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 | |
9:16:21 AM
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 second hearing for this bill in the Senate Finance
Committee. At the previous hearing, SCS CS HB 66, 24-GH1075\Y and
SCS CS HB 67, 24-GH1073\L were adopted as working documents.
Amendments offered are to these versions.
9:16:44 AM
Co-Chair Wilken noted the need for conforming language.
9:16:54 AM
DAVID TEAL, Director, Division of Legislative Finance testified
that an error was made in preparing the bill regarding University
of Alaska funding. Three million dollars had been inadvertently
omitted but would appear in subsequent copies of the bill to
reflect the recommendations of the budget subcommittee. The error
is shown in Section 1 on page 36, line 28 and 39.
9:18:41 AM
Mr. Teal then noted fiscal notes for the pending SB 141, relating
to the Public Employees Retirement System (PERS) and the Teachers
Retirement System (TRS) were included in the version of HB 67
passed by the House of Representatives, but inadvertently omitted
from the committee substitute before the Committee. This was
strictly an error made by the Legislative Finance Division.
9:19:22 AM
Co-Chair Green understood that all funding for PERS and TRS,
including the University portion, is included in SB 141.
9:19:35 AM
Mr. Teal replied that HB 66 and HB 67 include no funding for PERS
and TRS expenses.
9:19:51 AM
Department of Administration
ADMIN #1: This amendment inserts intent language to the Legal and
Advocacy Services Budget Request Unit (BRU) on page 4, line 22 of
the committee substitute to read as follows.
It is the intent of the legislature that Legal and Advocacy
Services develop cost containment measures to curtail
expenditures in order to avoid the need for supplemental
funding for FY 06 and report to the legislature by January 15,
2006 on the success of these measures.
Accompanying explanatory language reads as follows.
During the past fifteen years, OPA [Office of Public Advocacy]
and PD [Public Defenders Agency] typically requested
supplemental funding to avoid operating budget shortfalls. In
some of those years, these offices were knowingly short-funded
with the understanding that a supplemental request would be
supported by the legislature.
Section 4 of the bill contains general direction to eliminate
supplemental requests. Although this change in policy applies
to all programs, this amendment indicates the legislature's
specific desire to limit FY 06 expenditures in the Office of
Public Advocacy (OPA) and the Public Defender (PD) Agency to
the appropriation in the operating bill.
Co-Chair Wilken moved for adoption and objected to offer an
explanation.
Co-Chair Wilken told of the struggles of the legislature in
addressing continued supplemental appropriations for these
programs.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:21:01 AM
ADMIN #2: This amendment reduces $50,000 general fund from the
appropriation to the Legal and Advocacy Services BRU, Public
Defender Agency component on page 4, line 24. Accompanying
explanatory language reads as follows.
The subcommittee for the Department of Administration accepted
a transfer of funds from the Department of Corrections, but
the subcommittee for the Department of Corrections did not
approve the transfer. This amendment corrects that imbalance.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for an explanation.
Co-Chair Green overviewed the explanatory statement.
The amendment was ADOPTED without objection.
9:21:32 AM
ADMIN #3: This amendment adds $6,800 PFD Fund to the Centralized
Administrative Services BRU, Office of Administrative Hearings
component on page 2, lines 18 and 19. Accompanying explanatory
language reads, "This is a technical amendment correcting a
negative fund source associated with the removal of PERS funding.
Co-Chair Wilken explained the amendment and noted no objection was
voiced to the adoption of the amendment.
The amendment was therefore ADOPTED.
9:21:35 AM
Department of Corrections
COR #1: This amendment deletes $379,600 general funds from the
Administration and Support BRU, Inmate Transportation component on
page 9, line 9, and adds $379,600 general funds to the Community
Jails component on page 8, line 33. Accompanying explanatory
language reads as follows.
This amendment moves a $379,600 reduction taken from Community
Jails that should have been taken from Inmate Transportation.
The funding is within the same appropriation and the agency
could make the necessary adjustment without legislative
approval. This amendment reduces the agency's administrative
paperwork required to make the adjustment.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for an explanation.
Co-Chair Green overviewed the explanatory statement.
Co-Chair Wilken removed his objection.
9:22:24 AM
Senator Olson asked which community jails would be affected.
Co-Chair Green referred to COR #2 to explain.
Without further objection the amendment, COR #1 was ADOPTED.
9:22:56 AM
COR #2: This amendment adds $151,500 general funds to the
Administration and Support BRU, Community Jails component on page
8, line 33. Accompanying explanatory language reads as follows.
After discussions with the Department of Corrections, the City
of Kotzebue has agreed to sign the community jails contract at
an increased rate totaling $800,000 for the FY 06 budget year.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for an explanation.
Co-Chair Green spoke to a settlement agreement underway to reopen
the community jail in the City of Kotzebue. This funding would be
used to satisfy the provisions of the agreement.
Co-Chair Wilken removed his objection and the amendment was
ADOPTED.
9:23:48 AM
Department of Education and Early Development
EDU #1: This amendment adds $25,000 DEED CIP funds to the Alaska
Library and Museums BRU, Museum Operations component on page 11,
line 27. Accompanying explanatory language reads, "This amendment
appropriates $25,000 to the Alaska State Museum for acquisition of
Alaskan artifacts."
Co-Chair Wilken moved for adoption, objected for an explanation,
and told of requests from museum representatives for funds to
purchase certain artifacts "as a way to set aside some Alaskan
treasures."
9:24:13 AM
Co-Chair Green asked if funding this request in the operating
budget is appropriate.
Co-Chair Wilken understood it was.
9:24:27 AM
JAMES ARMSTRONG, Staff to Co-Chair Wilken, shared that
understanding.
Co-Chair Wilken removed his objection and without further objection
the amendment was ADOPTED.
9:25:03 AM
Department of Environmental Conservation
DEC #1: This amendment deletes $92,200 Oil & Hazardous Substance
Release and Response Fund from the Spill Prevention and Response
BRU, Prevention and Emergency Response component on page 12, line
33.
This amendment also adds $242,200 Oil & Hazardous Substance Release
and Response Fund to the Department of Military and Veterans
Affairs, Military and Veterans Affairs BRU, Local Emergency
Planning Committee component on page 26, lines 14 and 15.
Accompanying explanatory language reads as follows.
The Oil & Hazardous Substance Release and Response Fund
(commonly referred to as the "Response Fund") is funded
primarily through a nickel surcharge per taxable barrel of
oil. Two cents goes into a "Response Account" used for
emergency uses. The other three cents goes into a "Prevention
Account" from which appropriations are made.
By statute funding of Local Emergency Planning Committees
(LEPCs) is based on 3% of the balance of the Response Fund.
For FY 06 this amount equals $57,800. Actual FY 04 LEPC
expenditures were $324,900; FY 05 Management Plan was
$300,000. The $57,800 funding based on the statutory formula
leaves the LEPCs $242,200 short of expected funding.
Allocating $57,800 among 19 LEPCs means that the smaller
communities will receive so little funding that they will
cease to exist. The largest LEPCs (Anchorage, Fairbanks, and
Kenai) receive only $22,500 at the $300,000 funding level.
To keep all 19 LEPCs functioning at an effective level,
funding of at least $300,000 is needed. This amendment
appropriates the necessary additional funding.
Senator Dyson stated that the subcommittee inadvertently
recommended an inadequate amount of funding for the Local Emergency
Planning Committee (LEPC) program. These committees are charged
with planning for homeland security situations, as well as fires,
biological threats, floods and other emergency situations in local
areas.
9:26:05 AM
Mr. Armstrong explained that the Department of Environmental
Conservation budget subcommittee closed out after the Department of
Military and Veterans Affairs budget subcommittee closed. It was
discovered that a direct appropriation of $300,000 "470 funding" or
"SPAR [Spill Prevention and Response] funding" for LECP was
recommended; however, no "mechanism" within the Department of
Environmental Conservation was available to allow this and that
budget subcommittee chose to request correction before the full
Committee.
9:27:34 AM
Co-Chair Wilken moved for adoption of the amendment and objected
for discussion purposes.
9:27:54 AM
Senator Olson asked if $157,800 has been added for this program.
Mr. Armstrong stated that this amendment would reflect the intent
of the Department of Environmental Conservation budget subcommittee
and also fully fund the LEPC increment in the Department of
Military and Veterans Affairs
9:28:40 AM
Co-Chair Wilken removed his objection to the adoption of the
amendment.
9:28:50 AM
Co-Chair Green asked for affirmation that the LEPC program would
receive $300,000.
Mr. Armstrong affirmed, explaining the actions recommended by the
Department of Environmental Conservation budget subcommittee in
conjunction with this amendment.
Without further objection the amendment was ADOPTED.
9:29:26 AM
Department of Health and Social Services
H&SS #1: This amendment adds $110,000 Statutory Designated Program
Receipts (SDPR), as funding for two full time positions, to the
Public Assistance BRU, Public Assistance Field Services component
on page 19, lines 19 and 20. Accompanying explanatory language
reads as follows.
This increment will enable Alaska Native Medical Center staff
to improve processing Medicaid claims. The agency will
coordinate, implement and evaluate a pilot project designed to
assist in attaining the agency's goal of reducing its reliance
on state general funds by maximizing and expanding interface
for health care services for Alaska Natives. The two staff
included in the request are a full time Eligibility Technician
I, range 13 and a full time Administrative Clerk, range 8.
Co-Chair Green offered a motion to adopt the amendment.
Co-Chair Wilken objected for an explanation.
9:29:52 AM
GINGER BLAISDELL, Staff to Co-Chair Green, explained the governor
submitted this request after the Department of Health and Social
Services budget subcommittee had closed out, and had therefore not
considered it.
9:30:19 AM
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:30:31 AM
H&SS #2: This amendment adds $79,500 general funds and $19,400
Mental Health Trust Authority Authorized Receipts (MHTAAR) to the
Public Health BRU, Women, Children and Family Health component.
Accompanying explanatory language reads as follows.
This increment will maintain the Alaska Birth Registry
statewide surveillance services to collect, analyze, and
produce information about the birth prevalence of congenital
anomalies in Alaska.
Co-Chair Green offered a motion to adopt the amendment.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green remarked that this amendment reflects a "shift in
funding sources."
Ms. Blasdell interjected that this amendment is "an increment".
Co-Chair Green informed that the governor's office submitted this
request after the budget subcommittee had completed its
recommendations.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:31:14 AM
H&SS #3: This amendment deletes $120,000 "GFM 1003" funds and adds
$120,000 general funds to the Children's Services BRU, Subsidized
Adoption and Guardianship component on page 17, line 33.
Accompanying explanatory language reads, "This fund source change
is a technical correction only. The fund source should be general
funds."
Co-Chair Green offered a motion to adopt the amendment.
Co-Chair Wilken objected for an explanation.
Co-Chair Green stated this amendment changes the funding from
general funds match, to general funds.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:31:31 AM
H&SS #4: This amendment deletes $1,500,000 general funds and adds
$1,500,000 Tobacco Use Education & Cessation Funds to the Health
Care Services BRU, Medicaid Services component on page 18, line 12.
Accompanying explanatory language reads as follows.
Many Medicaid dollars are spent for tobacco related illnesses.
The use of tobacco tax funds are appropriately used for
Medicaid match.
$1,500,000 Tobacco Use, Education and Cessation Funds are
available due to the increased cigarette tax deposits to the
Tobacco Fund based on the Department of Revenue's Spring
Forecast projections.
$562,100 is anticipated for collections from January 1, 2005
through June 30, 2005 with an increased revenue anticipation
of $2,685,800 for FY 06; a growth of slightly more than $2
million.
Spending only $1.5 million of the anticipated growth in
Tobacco Tax revenues will allow for fluctuation in actual
revenues during the first full year tax collection cycle. If
the Tobacco Use, Education and Cessation Funds are not fully
expended during FY 06, the funds will remain in the tobacco
account and are subject to the CBR [Constitutional Budget
Reserve] sweep.
Co-Chair Green offered a motion to adopt the amendment.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green stated these funds would be used to "backfill" the
State's Medicaid services. The Department could utilize general
funds to leverage other funding, which could not be done with
Tobacco Use Education and Cessation funds.
Co-Chair Wilken removed his objection.
Senator Olson asked the impact on tobacco use cessation and
education programs with the loss of funds to this appropriation.
9:32:46 AM
Ms. Blasdell replied that approximate $2.7 million is projected to
carry forward to the next year. This funding is not garnered from
the settlement with tobacco companies.
9:33:47 AM
Senator Olson clarified that education and cessation programs would
not be affected.
Ms. Blasdell affirmed.
9:33:52 AM
With no further objection the amendment was ADOPTED.
9:34:05 AM
H&SS #5: This amendment adds $50,000 general funds to the Public
Health BRU, Certifications and Licensing component on page 20, line
5. Accompanying explanatory language reads as follows.
This amendment provides funding for regulation of non-
federally regulated small drinking water systems (Class C)
that serve facilities licensed by the Department of Health and
Social Services through 7 AAC 10, 50 and 75. For an estimated
150 systems this would require one full-time position and the
position costs associated with inspections and complaint
investigation.
Due to budget reductions, the Department of Environmental
Conservation eliminated regulation of all Class C water
systems. A Class C system services more than a single family
or duplex home but less than 25 people per day. Although it is
difficult to determine accurately, Department of Environmental
Conservation estimates the number is as high as 5,000 systems
serving more than 100,000 Alaskans. This includes child care
homes, adult residential care facilities, restaurants, gas
stations, office buildings, DOT work camps etc.
An estimated 150 systems serve adult residential and child
care facilities licenses by the Department of Health and
Social Services. These populations are generally considered
high risk and regulation of their Drinking Water is
recommended.
Regulation would include registration of the system by the
Department of Environmental Conservation, yearly testing for
total coli for bacteria and nitrates, inspections, complaint
investigation, and construction design by a registered
engineer if the drinking water source is surface water.
Co-Chair Wilken offered a motion to adopt the amendment and
objected to provide an explanation.
9:34:18 AM
Mr. Armstrong reminded that the previous session, the legislature
directed the Department of Environmental Conservation to "get out
of the water quality business". Budget subcommittees subsequently
recommended funding reductions. However, the commissioner of the
Department of Health and Social Services notified Co-Chair Wilken
that some facilities require this regulation.
9:35:37 AM
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:35:48 AM
Department of Labor and Workforce Development
LWD #1: This amendment deletes $203,500 Inter-agency (I/A) Receipts
from the Workforce Development BRU, Employment and Training
Services component on page 23, lines 24 and 25. Accompanying
explanatory language reads as follows.
This decrement of $203,500 will realign budget authorization
with anticipated expenditures related to the Senior Community
Services Employment Program (SCEP) from the State Training and
Employment Program (STEP) in Business Services allocation.
Senator Bunde offered a motion to adopt the amendment.
Co-Chair Wilken objected for discussion purposes.
Senator Bunde explained this is a technical amendment relating to
"unneeded" inter-agency receipts.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:36:21 AM
Department of Law
LAW #1: This amendment deletes $50,000 general funds from the
Criminal Division BRU, Third Judicial District Anchorage component
on page 25, lines 4 and 5. Accompanying explanatory language reads
as follows.
The subcommittee for the Department of Law accepted a transfer
of funds from the Department of Corrections, but the
subcommittee for the Department of Corrections did not approve
the transfer. This amendment corrects that imbalance.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green explained this amendment is similar to a previous
amendment relating to different departments.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:36:45 AM
Department of Military and Veterans Affairs
M&VA #1: This amendment adds $150,000 Oil & Hazardous Substance
Release and Response Funds to the Military and Veterans Affairs
BRU, Local Emergency Planning Committee component on page 26, lines
14 and 15. Accompanying explanatory language reads as follows.
The Oil & Hazardous Substance Release and Response Fund
(commonly referred to as the "Response Fund") is funded
primarily through a nickel surcharge per taxable barrel of
oil. Two cents goes into a "Response Account" used for
emergency uses. The other three cents goes into a "Prevention
Account" from which appropriations are made.
By statute funding of Local Emergency Planning Committees
(LEPCs) is based on 3% of the balance of the Response Fund.
For FY 06 this amount equals $57,800. Actual FY 04 LEPC
expenditures were $324,900; FY 05 Management Plan was
$300,000. The $57,800 funding based on the statutory formula
leaves the LEPCs $242,200 short of expected funding.
Allocating $57,800 among 19 LEPCs means that the smaller
communities will receive so little funding that they will
cease to exist. The largest LEPCs (Anchorage, Fairbanks, and
Kenai) receive only $22,500 at the $300,000 funding level.
This amendment increases funding to $207,800 as minimum
funding to keep all 19 LEPCs functioning.
Senator Dyson announced this amendment would be NOT OFFERED based
on actions taken on DEC #1.
9:37:10 AM
Department of Natural Resources
DNR #1: This amendment deletes $315,600 Agricultural Revolving Loan
Funds and inserts $315,600 general funds to the Resource
Development BRU, Agricultural Development component on page 28,
line 9. Accompanying explanatory language reads as follows.
Reverse the fund source change that increases Agricultural
Revolving Loan Fund spending and reduces general funds. The
balance of the Agricultural RLF is only sufficient to support
maintenance level operations for 2-3 more years and spending
the additional Agricultural RLF would accelerate the
liquidation of the balance of the fund.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green described the Agricultural Revolving Loan Fund
annually provides loans and in some years, has been used to fund
operations of the Division of Agriculture. General funds have been
utilized in the previous two years to fund the Division and should
continue. The forecasted expiration of the loan fund is FY 09 with
a balance of $200,000. It is not the purpose of the Committee to
"tap out that fund", as it does not have the advantage of the CBR
to receive additional deposits.
9:38:13 AM
Senator Bunde recommended against providing a reduction in general
funds to the Division to offset the funds allocated in this
amendment. He qualified that he supported the concept of users
paying the costs of supporting agencies.
9:38:49 AM
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:39:04 AM
Department of Public Safety
DPS #1: This amendment inserts intent language into the Statewide
Support BRU, Alaska Criminal Records and Identification component
on page 31, line 11 to read as follows.
It is the intent of the legislature that the additional
funding of $41,500 general funds provided to offset under
funding of the Alaska Concealed Handgun Program and Sex
Offender Registry be utilized exclusively for the Sex Offender
Registry Program.
It is the intent of the legislature that the Department of
Public Safety implement alternative solutions for making
operation of the Alaska Concealed Handgun Program self-
sustaining.
Senator Dyson moved for adoption.
Co-Chair Wilken objected for an explanation.
Senator Dyson surmised that the budget subcommittee "took the right
action" in the intent language it recommended; however, the
language was incorrect. He asked Mr. Armstrong to suggest correct
verbiage.
9:39:32 AM
Mr. Armstrong was unsure of the sponsor's intent. He requested an
opportunity to redraft the intent language.
9:40:18 AM
Senator Dyson removed his motion to adopt the amendment and it was
HELD until later in the meeting.
9:40:28 AM
DPS #2: This amendment deletes $125,000 general funds from the
Council on Domestic Violence and Sexual Assault BRU, Victims for
Justice component on page 30, lines 18 and 19. Accompanying
explanatory language reads as follows.
In SLA 06, the Victims for Justice advocated strongly to be
moved to the Department of Law. The legislature approved this
transfer at the request of the Victims for Justice. This
increment will not resolve the discourse between the Victims
for Justice and the CDVSA that promulgated the request for
their move to the Department of Law two years ago.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green explained that this component is no longer included
in the Department of Public Safety budget. Confusion over an
outdated reference resulted in the budget subcommittee including
this in its recommendations.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:41:06 AM
DPS #3: This amendment adds $803,500 general funds to the Alaska
State Troopers BRU, Alaska State Trooper Detachments component on
page 29, lines 27 and 28. Accompanying explanatory language reads
as follows.
The Alaska State Troopers provide primary public safety to
most of the geographic areas of the state, and limited service
in all areas of the state including those served by a local
law enforcement entity. In the department's FY 06 Operating
Budget Request the department requested $803,500 general funds
to fund five new troopers to improve public safety services
and consistent traffic enforcement in areas along Alaska's
rural road system and in Southeast Alaska.
The Senate Finance Subcommittee does not deny that additional
troopers are needed. However, because of a seemingly high
vacancy rate, the subcommittee questioned whether the
department would be able to fill the positions if they were
approved. The subcommittee conditionally denied the request,
offering the department and opportunity to demonstrate their
ability to fill the requested positions.
This amendment is offered contingent on the belief by the
Senate Finance Committee that the department has demonstrated
such ability.
Senator Dyson moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Dyson told of the significant discussions in the budget
subcommittee on this matter. The subcommittee supported the
additional Trooper positions and requested the Department to speak
to the full Committee on its ability to fill those positions within
the next fiscal year.
9:42:20 AM
DAN SPENCER, Director, Division of Administrative Services,
Department of Public Safety, testified that the Department could
fill the proposed five new positions, dependant upon recruitment.
Other funding within the Department would assist in recruitment
efforts. In January 2004 the Department had a net vacancy of 31
Trooper positions, including those attending the Alaska State
Trooper Academy, field training officers and other "double filled"
positions. Currently, by comparison, 28 net positions are vacant.
This is after filling 20 vacant positions. The Department is making
progress and would continue to do so. If funded, the Department
would be able to fill the five additional positions.
9:43:39 AM
Senator Dyson asked the number of trainees attending the Academy.
9:43:49 AM
Mr. Spencer answered 12 students are currently attending the
Academy.
Senator Dyson asked if the students are accounted as employees.
Mr. Spencer affirmed they are.
9:44:02 AM
Senator Dyson calculated that without the students, the Department
has 40 vacancies.
Mr. Spencer affirmed.
Senator Dyson asked if any of those students failed to complete
their training, if the net vacancy rate would increase.
Mr. Spencer affirmed.
Senator Dyson asked the graduation date for the current students.
Mr. Spencer replied the graduates would be "on the road" for the
July 4th weekend in the field training officer program.
Senator Dyson asked the date the next class begins at the academy.
Mr. Spencer answered the next class begins in August.
9:44:35 AM
Senator Dyson asked if all 28 vacant positions are sworn officer
positions.
Mr. Spencer affirmed.
9:44:48 AM
Senator Dyson asked if the intent is to graduate 28 Troopers in FY
05 and that the fall 2005 class would graduate 33 Troopers.
Mr. Spencer explained the academy graduates three classes per year
with a capacity of 40 students. He was unsure whether the fall
class would include all 33 students.
9:45:15 AM
Senator Dyson had questioned whether the Department would expend
the total amount of funding included in this amendment given the
existing vacancies. In consulting Mr. Spencer and the commissioner,
he concluded that because the positions are not filled, significant
overtime pay and transportation of Troopers to cover larger areas
is expended. These expenses "eat up" the funding that would be
otherwise utilized for the salaries of the new positions. The
Department asserts that the total amount of funding would be
required, despite the 33 vacancies.
9:46:15 AM
Mr. Spencer allowed that Senator Dyson's statement is a fair
assessment. Once a student is enrolled at the Trooper academy, they
are paid a salary from the Alaska State Trooper Detachments budget.
9:46:37 AM
Senator Dyson understood the Department has budgeted for 15
vacancies.
9:46:49 AM
Mr. Spencer replied that the vacancy factor is such that the
Department must budget for 15 vacant positions statewide at any
given time.
9:47:02 AM
Senator Dyson remarked that on the basis of this vacancy factor and
the aforementioned increased costs incurred as a result of the
vacant positions, this amendment should be adopted and the funding
provided.
9:47:23 AM
Senator Hoffman asked how this would benefit delivery of services
to rural communities, specifically the Department's identified need
for additional Village Public Safety Officers (VPSO). The VPSOs are
the "first line of defense in public safety" in many rural areas of
the State. He asked how the additional five positions would be
related with the VPSO program.
9:47:57 AM
Mr. Spencer responded that the proposed new positions would not be
directly charged with overseeing VPSO positions. These positions
would be stationed in Fairbanks and along the road system.
Additional VPSOs are needed and increased recruitment efforts
include recruiting for those positions.
9:48:44 AM
Senator Hoffman asked if the need for the proposed new Trooper
positions is a higher priority than the need for additional VPSO
positions. A number of VPSO positions across rural areas of the
State have been eliminated over the past 15 years.
9:49:19 AM
Mr. Spencer deferred the prioritization of needs to the
commissioner. Notwithstanding, the Department has more than
adequate funding to fund all vacant VPSO positions. This issue is
recruitment for those positions, which is one impetus for the
Department's increased recruitment efforts.
9:50:39 AM
Co-Chair Green clarified the budget contains no funding shortage
for filling the vacant VPSO positions. She asked the number of VPSO
positions that funding would provide for.
9:51:03 AM
Mr. Spencer replied that a portion of the appropriation would lapse
due to the number of vacancies that could not be filled before the
conclusion of the current fiscal year.
9:51:17 AM
Senator Olson asked if funding is adequate for the VPSO program,
why efforts are underway to consolidate rather than continue
operations from regional centers.
9:51:35 AM
Mr. Spencer explained the emphasis on containing administrative
costs to allow more funding for direct services.
9:51:49 AM
Senator Olson argued that the program already has excess funds
under the current practices.
9:51:56 AM
Mr. Spencer countered that the existence of excess funds is no
justification for higher administrative costs.
Senator Olson redirected his questioning to the 31 Trooper position
vacancies of one year ago compared to the 28 vacancies of present.
He asked if the funding allocated for salaries of the vacant
positions is utilized solely for the overtime and travel expenses
of existing Trooper positions covering a larger area.
9:52:33 AM
Mr. Spencer answered these costs are a contributing factor. He
informed that the amount necessary to fund every position is not
appropriated due to the assumption that some vacancies would always
occur. In addition, a variety of one-time costs are incurred for
new employees including training, vehicles, ammunition and
uniforms. These expenses are significant. Also fuel costs incurred
to date for the current fiscal year is $460,000 over the projected
amount. The Department did not request supplemental funding for the
current fiscal year and instead utilized the unexpended funding
allocated to the yet unfilled positions to offset the increased
expenses. If all positions were filled, it would be difficult to
operate the Division with the existing funding.
9:54:08 AM
Senator Olson understood that Troopers are paid a higher wage when
flying an aircraft for work-related activities.
9:54:27 AM
Mr. Spencer affirmed this arrangement is included in the
arbitration with the State and the Troopers' bargaining unit.
9:54:46 AM
Senator Olson relayed that several VPSOs are pilots and question
the extra pay given to Troopers.
9:55:11 AM
Mr. Spencer was unsure of the licensing requirements for
Department-related flights.
9:55:28 AM
Senator Olson noted that a commercial license is required for
pilots flying for a business.
9:55:41 AM
Co-Chair Wilken directed the Department to provide additional
information about this matter to Senator Olson.
Co-Chair Wilken removed his objection to the adoption of the
amendment and it was ADOPTED without further objection.
9:55:55 AM
DPS #4: This amendment adds $2,800 CIP [capital improvement
projects] Receipts to the Alaska State Troopers BRU, Marine
Enforcement component. Accompanying explanatory language reads as
follows.
This is a technical amendment correcting a negative fund
source associated with removal of PERS [Public Employees
Retirement System] funding.
Co-Chair Wilken moved for adoption and read the explanatory
statement.
Without objection the amendment was ADOPTED.
9:56:17 AM
Department of Transportation and Public Facilities
DOT #1: This amendment deletes $1,985,600 general funds from the
Alaska Marine Highway System BRU, Marine Vessel Operations
component on page 36, line 16. Accompanying explanatory language
reads as follows.
The reduction of general funds in this component brings the
anticipated Alaska Marine Highway System operations costs in
line with the House appropriation level. Additional funds will
be made available through SB 141 for the PERS costs for AMHS
employees and will bring the total funding for this component
to the appropriate level.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green explained that this amendment reflects the intent
that funding for PERS expenses would be included in SB 141.
Co-Chair Wilken removed his objection.
Senator Hoffman objected and spoke against "balancing our budget on
the back of SB 141". This is not the "right thing to do."
A roll call was taken on the motion.
IN FAVOR: Senator Dyson, Senator Stedman, Co-Chair Green and Co-
Chair Wilken
OPPOSED: Senator Hoffman and Senator Olson
ABSENT: Senator Bunde
The motion PASSED (4-2-1)
The amendment was ADOPTED.
9:57:43 AM
Alaska Court System
CRT #1: This amendment deletes 2.0 permanent full time positions
from the Judicial Council BRU and component on page 38, line 5.
Accompanying explanatory language reads as follows.
The decrement to the Judicial Council stated: "Personal
services reduction to staff" but did not include the reduction
of one Research Analyst and one Staff Attorney as stated in
the intent language.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Green explained that this amendment further clarifies the
intent language included in the bill.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
9:58:09 AM
Language Section
LANG #1: This amendment deletes Section 15 of the bill, relating to
the Education Loan Program, on page 57, lines 1 through 5.
Accompanying explanatory language reads as follows.
A change regarding use of student loan origination fees took
effect on June 17, 2004. CS SB 227 (FIN) Section 6 revised AS
14.43.120(u) to remove a "subject to appropriation" clause
before fees could be used by the ASLC. According to the Alaska
Commission on Postsecondary Education Director Diane Barrans,
Section 15 is no longer required.
Co-Chair Wilken moved for adoption and objected for explanation.
9:58:30 AM
Mr. Armstrong noted this amendment was proposed by the Murkowski
Administration and supported by the Division of Legislative
Finance, as language that is no longer required.
9:58:45 AM
Co-Chair Wilken removed his objection.
Co-Chair Green asked if the language is no longer required because
an origination fee would not be assessed.
Mr. Armstrong deferred to Mr. Teal.
It was determined unnecessary to pursue the questioning.
9:59:01 AM
Without further objection the amendment was ADOPTED.
9:59:17 AM
Department of Commerce, Community and Economic Development
CCED #1: This amendment adds $250,000 Business License &
Corporation Filing Fees and Taxes funds to the Qualified Trade
Association Contract BRU and component on page 5, lines 27 through
33. Accompanying explanatory language reads as follows.
This amendment adds $250,000 of Business License & Corporation
Filing Fees and Taxes to the Senate Finance Subcommittee's
general fund increment of $250,000.
Senator Stedman moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Stedman stated that this additional funding would enable
the Department to increase marketing efforts. He noted that
matching funds from industry would be received, which would double
the State contribution.
9:59:53 AM
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
AT EASE 10:00:18 AM/10:05:33 AM
Co-Chair Wilken announced the conclusion of consideration of
amendments to HB 67 until later in the meeting. The following
amendments are specifically to HB 66, mental health appropriations.
10:06:03 AM
Mental Health
MH #1: This amendment to the Department of Health and Social
Services appropriations deletes $674,200 Bond Funds (Amerada Hess
Bond Proceeds) and adds $674,200 General Fund MH [mental health]
funds to the Department of Health and Social Services, Alaska
Psychiatric Institute Automation Project (ED [election district]
17-32) component on page 11, lines 12 and 13.
This amendment also deletes $2,500,000 Bond Funds and adds
$2,500,000 Alcohol Fund 1180 to the Crisis Treatment Facility -
Phase 2 (ED 17-32) component on lines 17 through 19.
This amendment also deletes $150,000 Bond Funds and adds $150,000
General Fund MH funds to the Deferred Maintenance and Accessibility
Improvements (ED 99) component on lines 20 through 22.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Co-Chair Wilken announced that amendments would be considered and
if adopted, incorporated into a new committee substitute for
consideration later in the meeting.
10:06:28 AM
Ms. Blasdell explained this amendment replaces Amerada Hess Bond
Proceeds funding for three projects with general fund/ mental
health funds for two and alcohol funds for the third. Amerada Hess
is the common reference to funds received as a result of a
settlement over royalties paid on oil development in Alaska.
10:06:56 AM
Without objection the amendment was ADOPTED. [Co-Chair Wilken's
objection was not formally withdrawn, however it was the implied
intent of the Committee.]
10:07:06 AM
Co-Chair Wilken directed the Division of Legislative Finance to
draft a committee substitute for HB 66 for adoption when the
Committee resumed.
AT EASE 10:07:36 AM/5:19:11 PM
The following amendments are to the committee substitute for HB 67.
5:20:14 PM
Department of Fish and Game
F&G #1: This amendment adds $650,000 general funds to the Wildlife
Conservation BRU and component on page 14, line 10. Accompanying
explanatory language reads as follows.
These funds will enable the Division of Wildlife Conservation
to initiate additional field studies in support of predator
control programs authorized by the Alaska Board of Game. Work
will include updated inventories of big game predator and prey
species within current or prospective predator control plan
areas. Prey mortality studies or other specialized research
may be implemented as necessary to clarify management
challenges in areas where prey species are depleted. Adequate
involvement by division staff in coordination and direction of
predator management programs will also be supported. In other
to be successful, such studies will require funding over
multiple years.
These funds will also allow augmentation of survey and
inventory projects that have been reduced in response to
current funding shortages. These surveys will provide
information that will help the division advise the Board of
Game on appropriate hunting/trapping regulations, which will
allow maximum harvest opportunity for the public.
Senator Bunde moved for adoption.
Co-Chair Wilken objected for an explanation.
Senator Bunde read the second paragraph of the explanatory
statement into the record.
5:20:48 PM
Co-Chair Wilken offered a motion to amendment the amendment to
reduce the appropriation amount from $650,000 to $400,000.
There was no objection and the amendment was AMENDED.
Without further objection to the adoption of the amended amendment
it was ADOPTED.
5:21:21 PM
Department of Public Safety (cont.)
DPS #1: This amendment inserts intent language into the Statewide
Support BRU, Alaska Criminal Records and Identification component
on page 31, line 11 to read as follows.
It is the intent of the legislature that the additional
funding of $41,500 general funds provided to offset under
funding of the Alaska Concealed Handgun Program and Sex
Offender Registry be utilized exclusively for the Sex Offender
Registry Program.
It is the intent of the legislature that the Department of
Public Safety implement alternative solutions for making
operation of the Alaska Concealed Handgun Program self-
sustaining.
A motion to adopt this amendment was offered then withdrawn earlier
in the meeting.
Mr. Armstrong explained this amendment contains two separate intent
language topics that address separate components within the
Department budget. If adopted, the Division of Legislative Finance
would make the appropriate corresponding changes.
Senator Dyson moved for adoption.
AT EASE 5:22:37 PM / 5:23:14 PM
Senator Dyson read the intent language of the first paragraph into
the record.
5:23:50 PM
Co-Chair Green understood that revenues were generated through the
sale and renewal of permits and asked if fees were assessed on
collection of the fingerprints required to obtain the permits.
5:24:22 PM
Mr. Spencer responded that fees were not collected by the State on
the fingerprinting process.
Co-Chair Green she asked why an appropriation of $41,500 general
funds is necessary for this program.
Mr. Spencer replied that the budget subcommittee recommended this
funding for the Sex Offender Registry Program, which is included in
the same budgetary unit as the Concealed Handgun Program, as well
as licensure for security guards.
5:25:19 PM
Co-Chair Green asked why this intent language was not included in
the budget subcommittee's recommendation.
Mr. Spencer understood this language reflects the subcommittee's
intent.
5:25:38 PM
Senator Dyson informed that the passage of legislature during the
prior session eliminated the necessity for handgun permits for most
areas of the State. The number of applicants has declined
subsequently, as those who sought a permit applied soon after the
program was implemented and because the date of renewal for these
issuances has not yet been reached. The Department had requested
$71,000 to operate the program and the subcommittee decided to
recommend against the full amount. However, the subcommittee
intended that the Sex Offender Registry program be adequately
addressed. The concealed handgun permit process would be reviews
and the fees likely increased to make the program self-sufficient.
5:26:55 PM
Senator Olson asked the consequences if this amendment were not
adopted and the $41,500 for the Sex Offender Registry program not
provided.
5:27:02 PM
Mr. Spencer responded that the Sex Offender Registry program would
continue, but funds for this purpose would be diverted from other
programs.
5:27:21 PM
Senator Dyson then read the language of the second paragraph into
the record.
There was no objection and the amendment was ADOPTED.
5:27:48 PM
Language Section (cont.)
LANG #2: This amendment deletes the language of Section 19. FUND
TRANSFERS. (k) on page 59, lines 4 through 7, and inserts new
language to read as follows.
(k) the sum of $3,569,200 is appropriated to the election
fund required by the federal Help America Vote Act from the
following sources in the amount stated:
General fund match $ 469,200
Federal receipts 3,100,000
Accompanying explanatory language reads as follows.
This amendment will allow the Division of Elections to receive
a second federal Department of Health and Human Services grant
to help improve polling place access and voter participation
from voters with a full range of disabilities.
Co-Chair Wilken moved for adoption and objected to read the
explanatory statement into the record.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without objection.
5:28:24 PM
Department of Administration and Department of Corrections (cont.)
ADMIN #4: This amendment deletes $6,800 PFD [Permanent Fund
Dividend] Fund and adds $6,800 CSSD Admin funds to the Centralized
Administrative Services BRU, Office of Administrative Hearings
component on page 2, lines 18 and 19. Accompanying explanatory
language reads as follows.
This is a technical amendment correcting a fund source error
used in amendment ADMIN #3.
This amendment also deletes $100 general funds from the Department
of Corrections, Administration and Support BRU, Office of the
Commissioner component on page 8, line 14. Accompanying explanatory
language reads, "This corrects an imbalance in transfers between
agencies."
Additional accompanying explanatory language reads as follows.
Note: The amendment for the Mental Health bill (MH #1) cited a
fund code number (1003) that differs from the cited fund
source name (Gen Fund MH). Legislative Finance changed the
fund code to 1037 to match the Gen Fund MH fund source.
Co-Chair Wilken moved for adoption and overviewed the components of
the amendment.
Without objection the amendment was ADOPTED.
5:28:48 PM
Department of Public Safety (cont.)
DPS #5: This amendment inserts intent language to the Alaska State
Troopers BRU, Alaska State Troopers Detachment component on page
29, lines 27 and 28 to read as follows.
It is the intent of the Legislature that the Department of
Public Safety benefit from enhanced trooper recruitment
efforts by reducing trooper overtime, travel, and extraneous
costs associated with a reduced work force. The Department of
Public Safety may need to prepare for increased enrollment or
offer additional trooper training academies in order to fill
all State Trooper positions.
The Department of Public Safety shall report to the
Legislature by February 15, 2006 on the outcomes of enhanced
trooper recruitment efforts, decreased trooper overtime, and
reducing vacant positions.
Co-Chair Wilken shared that this amendment sponsored jointly by he
and Senator Dyson is a result of the earlier discussions. It was
determined to be beneficial that the legislature receive a report
on the progress made in filling the vacant Trooper positions.
Co-Chair Wilken moved for adoption and objected for discussion
purposes.
5:29:50 PM
Senator Olson asked the relation between this amendment and the
provisions adopted in DPS #3.
5:30:02 PM
Senator Dyson reminded of the provisions of the previously adopted
DPS #3, which provides funding for five new Trooper positions.
Amendment DPS #5 emphasized the need to reduce overtime, transfer
and transportation expenses incurred as a result of the vacant
positions.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
5:30:48 PM
Department of Health and Social Services (cont.)
H&SS #6: This amendment adds $596,000 general funds to the
Behavioral Health BRU, AK Fetal Alcohol Syndrome Program component
on page 17, lines 3 and 4. Accompanying explanatory language reads
as follows.
This funding will continue the Fetal Alcohol Spectrum Disorder
Diagnostic Services program in Alaska. The five year federal
grant is ending necessitating the state to fund this program
if it is to continue.
Senator Dyson moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Dyson explained that this program and its services did not
exist six or seven years ago. Thanks to US Senator Ted Stevens,
Alaska now has one of the better programs in diagnostic, prevention
and treatment services. The number of incidences of fetal alcohol
syndrome is a "horrendous problem". The Department has continued to
transfer funding for this program and he was concerned that the
program does not expire due to lack of funding. He asked if any
funding could be made available for this program.
5:32:09 PM
Co-Chair Green noted that over $159 million is appropriated to the
Behavioral Health BRU, a portion of which is allocated for alcohol
and substance abuse treatment programs. Over $6 million is
specifically allocated to the fetal alcohol syndrome program.
Co-Chair Green asserted that State funding would not be utilized to
"backfill" any reductions of federal funding, nor would new
programs be created.
5:33:34 PM
Co-Chair Wilken gave the Alaska Fetal Alcohol Syndrome program as
an example of a program receiving less federal funding after a set
five-year period with the legislature asked to supplement the short
fall.
5:33:49 PM
Senator Dyson surmised that the Committee is therefore choosing
against providing State funding in these situations.
5:33:53 PM
Co-Chair Wilken affirmed and noted other funding sources.
5:34:02 PM
Senator Dyson requested the Department of Health and Social
Services speak to the consequences of the reduced funding and
whether the program would be continued in some form.
5:34:10 PM
LAURA BAKER, Budget Chief, Division of Finance and Management
Services, Department of Health and Social Services, testified that
she could not answer how the Department would reprioritize the use
of the remaining funds of the federal fetal alcohol syndrome
grants. She agreed with Co-Chair Green to the significant funding
appropriated to the Behavioral Health BRU and that some funding
remains for this program. However, the funds requested in this
amendment are intended to "restore" a portion of the funding
formally received from the federal government.
5:35:17 PM
Senator Dyson asked the amount of grant funding remaining for this
program.
5:35:28 PM
Ms. Baker affirmed the amount is $6,328,400.
5:35:38 PM
Senator Dyson understood that money had already been expended.
5:35:46 PM
Co-Chair Green reminded that the intent language for this
Department reflects the direction that a plan would be created to
coordinate efforts of the Department. This new plan has the
potential, if it includes the fetal alcohol syndrome program, up to
$2 million could be available through the Temporary Assistance for
Needy Families (TANF) bonuses.
5:36:23 PM
Ms. Baker noted that the budget subcommittee identified $500,000
through the TANF federal funding source that could be utilized for
the fetal alcohol syndrome program. This amendment represents a
general fund request to fully offset the federal funds no longer
appropriated for the program.
5:36:40 PM
Senator Dyson WITHDREW his motion to adopt this amendment and it
was NOT OFFERED again.
5:36:59 PM
H&SS #7: This amendment adds a new "Governor's Advisory Council on
Faith Based and Community Initiatives" component within the Boards
and Commissions BRU on page 22, line 10 and appropriates $315,000
general funds and $105,000 I/A Receipts to the new component.
Accompanying explanatory language reads as follows.
Description: Advisory Council on Faith-Based and Community
Initiatives
This amendment will fund the Governor's Advisory Council on
Faith-Based and Community Initiatives and the Office of Faith-
Based and Community Initiatives. The council advises the
Governor on policies and practices to increase the
contributions of faith-based and community organizations to
meet the workforce and health and social services needs of the
people of Alaska. The council is supported by a three person
staff, which the requested funds will support.
The interagency receipts funding for this amendment comes from
TANF as part of the FFY 03 High Performance Bonus awarded to
the State in the Division of Public Assistance.
Senator Dyson moved for adoption, noting this amendment is similar
to the previous amendment. He requested Co-Chair Green explain this
amendment.
5:37:24 PM
Co-Chair Green explained that the Council was initially established
within the Office of the Lieutenant Governor with a budget of
$68,000 and was performing well and receiving measurable community
support. She was therefore surprised that the staff position had
been eliminated through a veto and that a FY 05 supplemental budget
request of $125,000 was submitted. This funding was requested for
new staff, office equipment and other expenses. She predicted that
future budget requests would continue to increase given the FY 06
budget request is larger than the FY 05 request. She did not view
this program as a growth industry and asserted that it should be
operated with volunteers.
5:38:55 PM
Senator Dyson understood the Council was transferred from the
Office of the Lieutenant Governor to the Office of the Governor.
5:39:05 PM
Co-Chair Green clarified the Governor assigned the Department of
Health and Social Services to oversee the Council.
5:39:12 PM
Senator Dyson asked the amount of funding remaining for operating
the coordination functions of the Council.
5:39:26 PM
Co-Chair Wilken replied that no money remains for this program and
that the funds requested in this amendment is "new money".
5:39:39 PM
Ms. Baker affirmed that the current version of the FY 06 operating
budget legislation contains no funding for this program. She noted
the Department has a FY 05 supplemental budget request pending to
refund other State agencies that have contributed to the basic
resources for the current fiscal year. This amendment would provide
funding for FY 06 to continue the program.
5:40:13 PM
Senator Dyson expressed his quandary in desiring this program to
continue. He clarified that the program had been allocated $68,000
for FY 05 then the Governor transferred the program to the
Department. The requested supplemental funding would only cover
costs already incurred, and no funding would be appropriated for
the continued coordination of these services.
5:40:43 PM
Co-Chair Green explained that the $68,000 appropriated for FY 05 by
the legislature to fund the coordinator position was vetoed from
the operating budget legislation. Four State departments were
directed provide $40,000 each for the program, which would be
located within the Department of Health and Social Services. The
Department of Health and Social Services announced that the $40,000
it contributed would not be charged-back, i.e. a refund would not
be requested; although, a supplemental budget request was submitted
to reimburse the other three departments. The Committee has
provided this funding. However, a request of $315,000 was submitted
for FY 06. Continuing to appropriate this level of funding for the
program was not her intention when it was founded.
5:41:58 PM
Senator Dyson asked if any funds would be available for the
coordinator position if this amendment were not adopted.
5:42:12 PM
Co-Chair Green understood that funding could be made available
within the Office of the Governor or the Office of the Lieutenant
Governor budgets for this position.
Co-Chair Green departed from discussion on this amendment to
comment on the previous amendment, H&SS #6. She reported that if
the Department receives the $2 million TANF bonus for the
Behavioral Health BRU, "the money listed here in this fund source
would not be available."
5:42:52 PM
Ms. Baker returned to H&SS #7 to clarify that the funding for the
coordinator position that was vetoed was a position located within
the Department of Health and Social Services for faith-based
activities from "the Department perspective". The funding requested
in this amendment would be utilized to fund additional staff
positions to handle the "Governor's Admin order on the accounts
itself."
5:43:18 PM
Co-Chair Wilken furthered that when the effort to coordinate and
utilize community and faith-based services, which was supported
initially, the Governor or the Lieutenant Governor intended to
"reach out to the fabric of Alaska" to establish a voluntary
organization to coordinate the services. He was therefore surprised
at the FY 05 supplemental budget request as well as the request
detailed in this amendment. He surmised that to fund this request
would "build a little bureaucracy" that would be difficult to
discontinue. In addition, he questioned the objective benefit of
this effort, noting that no analysis has been conducted on the
expected contributions and results of the new program.
5:44:39 PM
Senator Dyson agreed. He asked if the program could be continued
with funding of the initial $68,000.
5:45:22 PM
Co-Chair Wilken replied that money would be available for this
effort without the adoption of this amendment.
5:45:31 PM
Senator Dyson WITHDREW his motion to adopt the amendment and it was
NOT OFFERED again.
5:45:45 PM
Department of Military and Veterans Affairs (cont.)
M&VA #2: This amendment deletes $33,800 general funds from the
Military and Veterans' Affairs BRU, Air Guard Facilities
Maintenance component of page 26, lines 20 and 21, deletes $57,600
general funds from the Alaska Military Youth Academy component on
lines 22 and 23, and adds $91,400 general funds to the National
Guard Military Headquarters component on lines 16 and 17.
Accompanying explanatory language reads as follows.
There are 5 Family Support Assistance Centers around the state
that provide support to families of National Guard troops who
are deployed around the globe. These centers are operated
primarily by volunteers, often spouses and friends of deployed
personnel, who see that the families' most pressing needs are
met, that doctors appointments are attended, that someone is
there to help in case of sickness or other family emergency.
Sometimes volunteers go so far as to drive family members to
the doctor or dentist or teacher conference. Sometimes they
watch the kids so mom can go shopping or take a much-needed
break. Occasionally, the volunteers will take money out of his
or her own pocket to buy diapers, formula, or other
necessities for a deployed troop's family.
Troops deployed away from home, usually into hostile areas,
are often worried as much about their families back home as
they are about their own safety. Will they be taken care of?
Who will help them if I'm not there to help? What if someone
gets sick? These centers help ease some of the worry about
their families back home.
The funding requested by this amendment will be distributed to
each of the five centers to help them provide for the direct
costs of incidental supplies and services to the affected
families as necessary.
The funding comes from funding originally established for
network services charged to the department and paid to the
Enterprise Technology Services Division of the Department of
Administration. The funds are charged to all agencies
regardless of whether the agency uses the services or not. The
Department of Military and Veterans Affairs, for example, is
anticipating charges for ETS services at the Alaska Military
Youth Academy, Eielson Air Force Base, and Kulis Air National
Guard Base in the amount of $91.4 K even though they receive
no network services from ETS.
Enterprises Technology Services (ETS) requested over $3
million in general funds as a fund change from charging back
their services to the user departments, of which the Senate
Finance Subcommittee approved $3 million. One of the reasons
was that their charge backs were not equitable based on use.
This amendment would delete the funds DMVA had requested for
network services and add those funds back for the Family
Support Assistance Centers.
Senator Dyson stated that since the completion of the budget
subcommittee process, the Department identified other options and
is requesting approval to exercise those options.
5:46:14 PM
JOHN KRAMER, Director, Administrative Services Division, Department
of Military and Veterans Affairs, testified to the compromise with
the directives of the House of Representatives this amendment
represents. He told of the 18,000 requests responded to through
this program in the previous year. This program currently receives
no State funding. Soldiers leave vacancies when they are deployed
away from home.
5:47:36 PM
Co-Chair Wilken asked if this amendment would have a net zero
affect.
5:47:40 PM
Senator Dyson emphasized this amendment would not increase funding.
5:47:48 PM
Mr. Kramer reaffirmed.
5:47:57 PM
Co-Chair Green understood funding was included for the Alaska
Military Youth Academy and the Air Guard Facilities Maintenance
components either in the FY 05 supplemental appropriation, or this
legislation.
5:48:22 PM
Mr. Kramer explained that the funding referenced in this amendment
is for services of which the Department does not receive any
benefit. The Department of Administration charges the Department of
Military and Veterans Affairs for telephone and computer services.
Because these facilities are located on military bases, the
services are not provided by the State. Although the funding has
been included in the current version of the FY 06 operating budget,
the Department of Military and Veterans Affairs would not transfer
those funds to the Department of Administration.
5:49:14 PM
Co-Chair Green asked of any other discrepancies in the Department's
budget.
5:49:23 PM
Mr. Kramer assured that the finance subcommittee thoroughly
reviewed the Department's budget.
Senator Dyson announced the removal of his objection to the
adoption of the amendment.
The amendment was ADOPTED; although no formal motion to adopt the
amendment was offered, it was the intent of the Committee.
M&VA #2: This amendment adds a new "Family Support" component to a
new "Military Headquarters" BRU and appropriates $50,000 general
funds to the component. Accompanying explanatory language reads as
follows.
There are 5 Family Support Assistance Centers around the state
that provide support to families of National Guard troops who
are deployed around the globe. These centers are operated
primarily by volunteers, often spouses and friends of deployed
personnel, who see that the families' most pressing needs are
met, that doctors appointments are attended, that someone is
there to help in case of sickness or other family emergency.
Sometimes volunteers go so far as to drive family members to
the doctor or dentist or teacher conference. Sometimes they
watch the kids so mom can go shopping or take a much-needed
break. Occasionally, the volunteers will take money out of his
or her own pocket to buy diapers, formula, or other
necessities for a deployed troop's family.
Troops deployed away from home, usually into hostile areas,
are often worried as much about their families back home as
they are about their own safety. Will they be taken care of?
Who will help them if I'm not there to help? What if someone
gets sick? These centers help ease some of the worry about
their families back home.
The funding requested by this amendment will provide $10,000
to each of the five centers to help them provide for
incidental supplies and services as necessary.
This amendment was NOT OFFERED based on the actions taken on M&VA
#2.
5:50:00 PM
Department of Public Safety (cont.)
DPS #6: This amendment adds $200,000 general funds to the Council
on Domestic Violence and Sexual Assault BRU and component on page
30, lines 28 and 29. Accompanying explanatory language reads, "This
funding gives the Shelter Grants a 2% increase."
Senator Olson moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Olson reported an increase in the usage of these shelters,
especially in the previous year. In addition, prosecution of
offenders has increased. The temporary shelters serve women and
children of all areas of the State, both rural and urban.
5:50:49 PM
Senator Dyson asked if the amount requested in this amendment is in
addition to the amount requested by the Murkowski Administration.
5:51:10 PM
Co-Chair Wilken replied that the adoption of this amendment would
fund the program in the same amount as approved by the House of
Representatives.
Co-Chair Green relayed discussions with representatives of the
program, in which she learned that funding for the program has
remained the same amount for five or six years. It was becoming
difficult to maintain the level of service in all the locations
with the amount provided.
Co-Chair Wilken removed his objection and without further
objection, the amendment was ADOPTED.
5:51:44 PM
Department of Fish and Game (cont.)
F&G #2: This amendment adds $200,000 general funds to the
Administration and Support BRU, State Subsistence component on page
14, line 24. Accompanying explanatory language reads, "This
amendment adds $200,000 in general funds for the State Subsistence
allocation."
Senator Hoffman moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Hoffman read a statement into the record as follows.
This is an increase in the Division of Subsistence of $200,000
in general funds. Primarily both boards of fish and game rely
on the research for the Subsistence Division to make
allocation decisions for all users. Without adequate
information, the boards may be forced to make conservative
harvest allocations in areas that could have been opened for
hunting and fishing throughout the State.
5:52:27 PM
Co-Chair Wilken removed his objection.
5:52:34 PM
Senator Dyson shared his perception that the administration of the
subsistence program by the State has been well done. He asked if
the sponsor shared this perception.
Senator Hoffman answered he did.
5:52:56 PM
Co-Chair Wilken asked if the amendment would provide funds over the
amount requested by the Governor.
5:53:06 PM
Senator Hoffman replied that this amendment represents one-half of
the $400,000 requested by the Governor.
5:53:15 PM
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
5:53:19 PM
Department of Health and Social Services (cont.)
H&SS #8: This amendment adds $500,000 general funds to the Public
Health BRU, Women, Children and Family Health component on page 19,
lines 26 and 27. Accompanying explanatory language reads as
follows.
Description: Expansion of Breast and Cervical Health Checks
Provides for expansion of the Breast & Cervical Health Checks
(pelvic exam, mammogram, PAP test) to eligible women. A
women's eligibility is based on income at or below 250% of
federal poverty level and no other existing health insurance
coverage.
This increment is intended to increase funding for FY 06, but
the funding will not be included in the FY 07 base.
Senator Olson moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Olson overviewed the explanatory statement. He pointed out
this amendment would provide almost the amount approved by the
House of Representatives, although over $1 million less than the
Governor requested.
5:54:27 PM
Co-Chair Wilken noted the intent that this funding would be
allocated with the expectation that a system of management of
clients be implemented and attempts be made to secure other federal
funding to supplant this general fund appropriation.
5:54:51 PM
Co-Chair Green asked for clarification that eligibility is limited
to women with "no other existing health insurance coverage". She
understood that the services are available to women with
"insufficient" health care coverage.
5:55:19 PM
RICHARD MANDSAGER, MD, Director, Division of Public Health,
Department of Health and Social Services, was unsure the exact
eligibility requirements.
5:55:52 PM
Co-Chair Green requested that the language of the explanatory
statement conform to the existing provisions of the program.
5:56:11 PM
Co-Chair Wilken directed the record reflect instructions to make
conforming changes to the amendment as necessary.
5:56:17 PM
Co-Chair Wilken removed his objection and without further objection
the amendment was ADOPTED.
5:56:28 PM
Department of Fish and Game (cont.)
F&G #3: This amendment deletes $250,000 Test Fisheries Receipts and
adds $250,000 general funds to the Commercial Fisheries BRU,
Westward Region Fisheries Management component on page 13, lines 21
and 22. Accompanying explanatory language reads as follows.
This amendment replaces an increase in Test Fisheries Receipts
authorization with general funds.
Senator Hoffman moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Hoffman noted the need for a technical correction to the
amendment. This amendment is intended to reduce the reliance on
Test Fisheries Receipts in Bristol Bay. In the previous year, the
State contracted with processors to harvest $287,000 worth of
salmon with a contract rate set at ten cents a pound; well below
the market value of 40 cents a pound. As a result 551,000 salmon
weighing over 2.8 million pounds were harvested. The Department of
Fish and Game needed to reduce this harvest rate. In addition, cost
recovery occurred in the eastern side of Bristol Bay in a mixed
stock area. Unfortunately, the majority of fish taken were of a
certain river stock and the mid-range escapement goals were not met
for that river. As a result of this, the river fishery did not open
until late July 2004, well after the sockeye run finished. Over 5
million salmon, at an estimated cost of $12 million, from a
different stock migrated unharvested because of the closure of the
other stock fishery.
5:58:20 PM
Co-Chair Wilken clarified the correct allocation of the changes
proposed in the amendment should be to the Central Region.
AT EASE 5:58:37 PM/6:00:16 PM
Senator Hoffman verified this.
Co-Chair Wilken offered a motion to amend the amendment to specify
the fund source change be made to the Central Region Fisheries
Management component on lines 17 and 18.
Without objection the amendment was AMENDED.
Co-Chair Wilken removed his objection to the adoption of the
amendment and the amended amendment was ADOPTED without further
objection.
6:00:50 PM
Language Section (cont.)
LANG #3: This amendment adds a subsection to Section 14. DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT., on page 28, line 14 to read as
follows
(b) The sum of $250,000 is appropriated from the general
fund to the Department of Education and Early Development for
the fiscal year ending June 30, 2006, for payment as grants to
each school district that operates a charter school with an
average daily membership of 150 or less for support of those
charter schools in those districts. The amount appropriated
for grants by this section is to be allocated among eligible
school districts in the proportion that the average daily
membership of eligible charter schools in a district bears to
the total average daily membership of all eligible charter
schools in all school district that operate an eligible
charter school.
Senator Dyson moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Senator Dyson told of the financial struggles of the charter
schools. It is difficult for those schools with fewer than 150
students to operate.
6:01:51 PM
Co-Chair Wilken furthered that an allocation in this amount was
appropriated the previous fiscal year for this purpose.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
6:02:07 PM
University of Alaska
UNV #1: This amendment adds a "Statewide Administration" component
to the University of Alaska BRU on page 36, line 28 and
appropriates $1,065,000 general funds to the component.
Accompanying explanatory language reads as follows.
Page 63, line 24 of SCS CS HB 67 (FIN) approves the contract
language that forces the university to switch all bargaining
units to the existing University of Alaska Health care plan.
Unfortunately, there is no corresponding appropriation.
Through active management UA health care costs have been and
are substantially lower than all other state agencies. Moving
UA bargaining units to the US choice plan is another
management move to continue to hold health care costs down.
However, the governor's amendment which addressed these costs
was not adopted by the Finance subcommittee. For clarification
purposes: the language in the bill removes any management
options the university has regarding this contract and forces
the university to eat these costs.
Co-Chair Wilken moved adoption and objected for discussion
purposes.
Co-Chair Wilken explained this amendment is offered as a result of
a bargaining unit agreement.
6:02:40 PM
SENATOR PETE KELLY, State Relations, University of Alaska,
testified that the University labor relations' team negotiated
employment contracts with the various bargaining units represented
at the University. The Senate Finance Committee recently approved
those contracts; however, language contained in Section 23(b)
stipulates that the appropriation for salary and benefit
adjustments includes the terms of the tentative agreement to
transition to the UA Choice Health Plan.
Senator Kelly asserted that this is a well-managed plan that has
reduced the per-employee per-month health care costs for the
University. He detailed the incentives, bulk purchasing
pharmaceutical agreements and other aspects of the plan. The costs
of other health care plans provided for bargaining unit employees
not participating in the UA Choice Health Plan is estimated to be
between $8,000 and $10,000 annually per employee in eight to ten
years and would continue to increase. The intent of the UA plan is
to manage the costs and lessen the cost increases in the future.
Senator Kelly stated that this amendment is necessary to
appropriate the funding to implement the transition as provided for
in Section 23(b).
6:05:02 PM
Senator Hoffman clarified that the decision is whether to adopt
this amendment or remove the language of Section 23(b), thus
eliminating the transition of all University employees to the UA
Choice Health Plan.
6:05:12 PM
Co-Chair Kelly replied that the language in question is the result
of significant negotiation efforts and that to eliminate the
transition would require additional negotiations to occur.
6:05:20 PM
Senator Dyson asked if the University has considered establishing a
health savings account for employees in conjunction with efforts to
reduce health care costs.
6:05:39 PM
Co-Chair Kelly was unaware whether this has been considered.
6:05:43 PM
Senator Dyson requested the matter be given future consideration.
6:05:47 PM
Senator Stedman asked the University of Alaska's plan if this
amendment were not adopted but the language of Section 23(b)
remained.
6:06:04 PM
Co-Chair Kelly replied that the University would be in a "difficult
situation" because the directive of the president is to not engage
in "Washington Monument discussions." However, the additional costs
would be absorbed through reduced funding for classroom-type
programs. Increments for behavioral health, nursing, welding
technology, engineering and others would be reduced. The University
would make every effort to not reduce funding for those programs.
6:06:47 PM
Senator Stedman asked the budgetary increment this year for the
University of Alaska.
6:06:53 PM
Co-Chair Kelly answered "five percent."
6:06:57 PM
Co-Chair Wilken informed that the current version of the FY 06
operating budget appropriates approximately $38 million for
approved contracts with employee bargaining units. He offered this
amendment, as it is similar to the approval the Committee has
granted to the funding costs of the other bargaining unit
agreements. These cost increases are all the result of collective
bargaining. The University of Alaska should not be treated
differently.
6:07:37 PM
Senator Hoffman asked which bargaining unit negotiated the
agreement with the University of Alaska.
6:07:42 PM
Co-Chair Kelly replied that four or five bargaining units represent
University employees.
Co-Chair Green listed: Alaska Higher Education Crafts and Trades,
United Academics and United Academics-Adjuncts. [She did not
mention Alaska Community Colleges' Federation of Teachers, which is
included in the list of affected bargaining unit employees in
Section 23(b).]
Co-Chair Wilken removed his objection to the adoption of the
amendment.
Senator Stedman objected.
Senator Stedman spoke to his objection, relaying the efforts of the
University of Alaska budget subcommittee in considering the amount
to allocate to the various increments of the University system. He
admitted the initial amount was inadequate, although the amount was
increased $4.5 million through the full Committee process. Attempts
are being made to contain increases to three to five percent for
all agencies. The University performs well, has advanced and would
continue to do so. However, a funding limit must be established.
6:09:44 PM
Senator Hoffman shared the concerns of Senator Stedman.
6:10:31 PM
Senator Dyson asked if the House of Representatives approved this
funding.
6:11:03 PM
Co-Chair Kelly replied it did not.
6:11:06 PM
Senator Dyson pointed out that the conference committee of the
Senate and the House of Representatives that would be assigned to
reach a final compromise on this legislation could not provide the
additional funding to the University if this amendment were not
adopted.
6:11:21 PM
Co-Chair Green asked the budget amounts for the University that the
conference committee would be allowed to consider.
6:11:36 PM
Mr. Armstrong responded that the House of Representatives approved
$8.5 million general funds with $2.4 million for PERS/TRS costs,
and the current Senate version includes $11.9 million.
6:12:00 PM
Co-Chair Green noted that line items within the budget could be
conferencable, while others could not. She understood that "several
million dollars" of the University budget were eligible for
consideration.
6:12:47 PM
Mr. Teal informed that currently, two transactions would be
eligible for consideration by the conference committee. The
conference committee could decide to appropriate any amount up to
$11.9 million for the regular University budget. In addition, the
House of Representatives approved a $3.4 million allocation
specifically for PERS/TRS expenses, which could be adopted or
reduced by the conference committee. He continued to detail the
exact amounts.
6:13:46 PM
Co-Chair Wilken had understood that the appropriation for the
PERS/TRS expenses were included in SB 141, relating to employee
benefits.
6:13:53 PM
Mr. Teal replied that the Senate has included such funding in a
fiscal note for SB 141. He noted, however, that this information
would not be included in the fiscal notes eligible for
consideration by the aforementioned budget conference committee.
6:14:22 PM
A roll call was taken on the motion to adopt the UNV #1.
IN FAVOR: Senator Hoffman, Senator Olson, and Co-Chair Wilken
OPPOSED: Senator Stedman, Senator Dyson, and Co-Chair Green
ABSENT: Senator Bunde
The motion FAILED (3-3-1)
The amendment FAILED to be adopted.
AT EASE 6:15:10 PM/6:44:14 PM
Language Section (cont.)
LANG #1: This amendment deletes Section 15 of the bill, relating to
the Education Loan Program, on page 57, lines 1 through 5.
A change regarding use of student loan origination fees took
effect on June 17, 2004. CS SB 227 (FIN) Section 6 revised AS
14.43.120(u) to remove a "subject to appropriation" clause
before fees could be used by the ASLC. According to the Alaska
Commission on Postsecondary Education Director Diane Barrans,
Section 15 is no longer required.
[This amendment was adopted earlier in this meeting.]
Co-Chair Wilken moved to rescind the Committee's action in adopting
the amendment. He then objected to the motion to receive an
explanation.
6:44:51 PM
Mr. Teal explained that the Attorney General had determined that
the language of Section 15 was unnecessary due to statutory changes
made the prior year. However, the Division of Legal and Research
Services advised that despite the statutory change, the language
was necessary in appropriation legislation. While unsure of the
correct determination, he concluded that because inclusion of the
language would not be detrimental and because exclusion of the
language could be detrimental, the language should be included.
6:46:04 PM
Co-Chair Wilken removed his objection to the motion and earlier
action adopting the amendment was RESCINDED. The amendment was NOT
OFFERED for consideration again.
6:46:34 PM
DOT #2: This amendment adds $6,470,800 Marine Highway funds to the
Alaska Marine Highway System BRU, Marine Vessel Operations
component on page 36, line 16. Accompanying explanatory language
reads as follows.
Technical Correction:
In the computation for the transfer of the general funds to
the Alaska Marine Highway System Fund as a direct
appropriation to the operating budget, $6,470,800 was
inadvertently omitted from the amount of the transfer.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for an explanation.
Co-Chair Green explained that this amendment corrects an omission.
6:46:59 PM
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
6:47:08 PM
Department of Community and Economic Development
CCED #2: This amendment adds $3 million PCE (Power Cost
Equalization) funds to the Alaska Energy Authority BRU, Alaska
Energy Authority Power Cost Equalization component on page 6, lines
31 and 32. Accompanying explanatory language reads as follows.
This funding boosts the PCE program's expenditure
authorization to $18.7 million (the traditional funding level
is $15.7 million.)
This amendment also deletes "$11,508,264" and inserts "$11,698,264"
from subsection (m) of Section 19. FUND TRANSFERS. The amended
language on page 59, lines 11 through 20 reads as follows.
(m) The amount necessary to provide the sum appropriated
from the power cost equalization and rural electric
capitalization fund (AS 42.45.100) by sec. 1 of this Act,
after any appropriations made to that fund during the fiscal
year ending June 30, 2006, are taken into account, is
appropriated from the power cost equalization endowment fund
(AS 42.45.070) to the power cost equalization and rural
electric capitalization fund. However, in accordance with AS
42.45.085(a), the amount appropriated by this subsection may
not exceed seven percent of the market value of the power cost
equalization endowment fund, determined by the commissioner of
revenue to be $11,698,264, minus amounts appropriated during
the fiscal year ending June 30, 2006, for reimbursement of the
costs set out in AS 42.45.085(a)(2) and (3).
Accompanying explanatory language reads, "This corrects an error
that removed management fees twice."
This amendment also inserts a new section to the bill to provide
that the sum of $2,500,000 is appropriated from the general fund to
the power cost equalization and rural electric capitalization fund
(AS 42.45.100).
Accompanying explanatory language reads as follows.
This portion of the amendment capitalizes the Power Cost
Equalization and Rural Electrification Fund (PCE Fund) to
ensure that enough funding is available in the fund to support
the additional $3 million appropriated from the fund.
PCE Fund Capitalization
GF $2,500,000
Carry forward & Int 3,000
PCE Endowment 11,698,300
NPR-A Funding 5,153,400
Fund Management (192,700)
To PCE Fund $19,162,000
Senator Olson moved for adoption.
Co-Chair Wilken objected.
Senator Olson explained that this amendment adds $3 million to the
Power Cost Equalization program. The total funding would be the
same amount as approved by the House of Representatives, although
"well below" the amount requested by the Governor. The additional
funding appropriated in this amendment would be utilized to offset
higher fuel prices and maintenance of facilities in rural areas of
the State. He requested the Division of Legislative Finance provide
more detail.
6:48:35 PM
Mr. Teal stated that the first portion of the amendment, adding $3
million PCE funding, would increase the amount that could be paid
out as grants to $18.7 million. The second portion of the amendment
corrects an error in the committee substitute and should be adopted
regardless of action taken on the other portions of the amendment.
The endowment is paying out seven percent, which calculates to
$11,698,264. The Division had subtracted $192,000 in fund
management fees, unaware that the Office of Management and Budget
had already taken the deduction in the version of the budget that
the Governor requested. As a result, the management fees were
deducted twice.
Mr. Teal emphasized the $2.5 million appropriation listed in the
third portion of the amendment is general funds. This is the amount
necessary to provide the additional $3 million for grants as
provided for in the first portion of the amendment. A balance in
the fund would provide the remaining $500,000.
6:50:16 PM
Senator Olson pointed out that this amendment would provide $3
million in benefits for the "price" of $2.5 million.
6:50:30 PM
Senator Hoffman remarked that adjustments have been made in the FY
06 operating budget to account for increased fuel costs. In rural
areas of the State, these increases are more significant and
increased funding is justified. The $3 million would significantly
reduce the substantial increases in the cost of power in rural
Alaska.
6:51:43 PM
Co-Chair Wilken maintained his objection to the adoption of the
amendment. All areas of the state are facing difficulties caused by
higher power costs. The Port of Anchorage has imposed a ten percent
surcharge on all cargo passing through. The Committee has increased
funding for the PCE program over the FY 05 appropriation and the
House of Representatives approved a higher amount. The conference
committee that would be appointed and assigned with reaching a
compromise between the House of Representatives and the Senate
versions of the FY 06 operating budget would have an opportunity to
increase the funding up to the higher amount.
6:52:33 PM
Senator Stedman clarified the Committee was voting on the entire
amendment; the question was not divided.
6:52:46 PM
A roll call was taken on the motion.
IN FAVOR: Senator Hoffman, Senator Olson
OPPOSED: Senator Dyson, Senator Stedman, Co-Chair Green and Co-
Chair Wilken
ABSENT: Senator Bunde
The motion FAILED (2-4-1)
The amendment FAILED to be adopted.
6:53:31 PM
CCED #3: This conceptual amendment is comprised of the second
portion of CCED #2, which deletes "$11,508,264" and inserts
"$11,698,264" from subsection (m) of Section 19. FUND TRANSFERS.
The amended language on page 59, lines 11 through 20 reads as
follows.
(m) The amount necessary to provide the sum appropriated
from the power cost equalization and rural electric
capitalization fund (AS 42.45.100) by sec. 1 of this Act,
after any appropriations made to that fund during the fiscal
year ending June 30, 2006, are taken into account, is
appropriated from the power cost equalization endowment fund
(AS 42.45.070) to the power cost equalization and rural
electric capitalization fund. However, in accordance with AS
42.45.085(a), the amount appropriated by this subsection may
not exceed seven percent of the market value of the power cost
equalization endowment fund, determined by the commissioner of
revenue to be $11,698,264, minus amounts appropriated during
the fiscal year ending June 30, 2006, for reimbursement of the
costs set out in AS 42.45.085(a)(2) and (3).
Accompanying explanatory language reads, "This corrects an error
that removed management fees twice."
Co-Chair Wilken moved for adoption.
Without objection the amendment was ADOPTED.
AT EASE 6:53:59 PM/6:55:08 PM
Co-Chair Wilken requested a motion to allow the bill drafters to
conform amendments to the bill and make technical changes as
required. Co-Chair Green so moved.
There was no objection and the motion was ADOPTED.
Co-Chair Green offered a motion to report SCS CS HB 67 (FIN), 24-
GH1073\L, as amended, from Committee with individual
recommendations.
Co-Chair Wilken objected to inquire when the final version of the
bill would be delivered to the Committee.
6:56:10 PM
Mr. Teal anticipated the changes to the bill would be completed
later that day.
Co-Chair Wilken withdrew his objection. With no further objection,
SCS CS HB 67 (FIN) MOVED from Committee.
6:56:40 PM
The following amendment is specific to HB 66.
MH #2: This amendment deletes Section 7 from the bill on page 14,
lines 3 through 6. The deleted language reads as follows.
Sec. 7. DEPARTMENT OF HEALTH AND SOCIAL SERVICES. The sum
of $3,000,000 is appropriated from the general fund/mental
health to the Department of Health and Social Services for
costs associated with fulfilling the obligation of the State
of Alaska related to the demolition and asbestos abatement of
the old Alaska Psychiatric Institute.
Accompanying explanatory language reads as follows.
Given the timing of the operating and capital appropriation
decision making, standard practice for capital projects in the
Mental Health Bill has been to make them all subject
Conference Committee action. This amendment removes the API
Asbestos Abatement project which is contained in the House
version of the bill, thereby making it an item for Conference
Committee consideration.
Co-Chair Green moved for adoption.
Co-Chair Wilken objected for discussion purposes.
Mr. Armstrong explained that previous practice has been for the
Senate Finance Committee remove one item from the Mental Health
appropriation legislation to allow for a conference committee to be
appointed and fully consider all funding sections of the Mental
Health budget. This amendment would provide that the entire bill
would be subject to consideration by the conference committee.
Co-Chair Wilken removed his objection and the amendment was ADOPTED
without further objection.
6:58:10 PM
Co-Chair Green offered a motion to report SCS CS HB 66 (FIN), 24-
GH1075\Y, from Committee with individual recommendations.
There was no objection and SCS CS HB 66 (FIN) MOVED from Committee.
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