Legislature(2007 - 2008)SENATE FINANCE 532
04/04/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB95 || HB96 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 95 | TELECONFERENCED | |
| + | HB 96 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 95-APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 96-APPROP: MENTAL HEALTH BUDGET
The Committee heard from the budget subcommittees and the
Division of Legislative Finance. The bills were held in
Committee.
9:04:22 AM
CS FOR HOUSE BILL NO. 95(FIN)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; making appropriations under art.
IX, sec. 17(c), Constitution of the State of Alaska; and
providing for an effective date."
CS FOR HOUSE BILL NO. 96(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."
9:07:58 AM
Co-Chair Hoffman introduced the bills and announced that the
chairs of the Operating budget subcommittees would present the
FY 08 budget recommendation reports for each department.
Office of the Governor
Subcommittee members: Senator Hoffman, Senator Cowdery,
Senator Green, Senator Therriault.
The Senate Finance Subcommittee for the Office of the
Governor submits an Operating budget consisting of numbers
and language and excluding PERS/TRS consideration to the
full Senate Finance Committee for FY 08 as follows:
General Funds
08 Adj Base: 19,694,000
Gov Amend: 18,839,800
Sen Sub: 18,839,800
Fed Funds
08 Adj Base: 178,800
Gov Amend: 178,800
Sen Sub: 178,800
Other Funds
08 Adj Base: 1,460,000
Gov Amend: 1,383,700
Sen Sub: 1,383,700
Total
08 Adj Base: 21,332,800
Gov Amend: 20,402,300
Sen Sub: 20,402,300
Budget Action
1. Adopted the FY08 Adjusted Base.
2. Accepted budget amendment relocating Lt. Governor's
budget component within the Executive Operations BRU.
3. Increments:
Adopted $19,200 for increased lease costs Human Rights
Commission
Adopted $0.0 for Statehood Commission transfer from
DCCED
Adopted $73,200 for CIP Receipts for staff position.
Adopted $78,600 for increased funding for trade
activity.
Adopted $48,000 for annual maintenance for voting
equipment.
4. Decrements:
Adopted $-149,500 for I/A Denali Commission staff
position.
Adopted $-771,200 for internal efficiencies in Exec.
Office.
Adopted $-100,000 for internal efficiencies in Lt.
Gov.
Adopted $-128,800 for internal efficiencies in OMB.
Personnel
Reviewed the personnel count for the Department. The
Governor's amendments reflect a reduction of four full
time positions.
Co-Chair Hoffman reviewed this recommendation.
Legislature
Subcommittee members: Senator Hoffman, Senator Cowdery,
Senator Green, Senator Therriault.
The Senate Finance Subcommittee for the Legislature submits
an Operating budget consisting of numbers and language and
excluding PERS/TRS consideration to the full Senate Finance
Committee for FY 08 as follows:
General Funds
08 Adj Base: 60,043,100
Gov Amend: 59,936,200
Sen Sub: 58,856,100
Other Funds
08 Adj Base: 681,700
Gov Amend: 788,600
Sen Sub: 762,900
Total
08 Adj Base: 60,724,800
Gov Amend: 60,724,800
Sen Sub: 59,619,000
Budget Action
1. Accepted the FY08 adjusted base budget.
2. Adopted numerous transfers and adjustments requested
by the Legislative Affairs Agency.
3. Approved structure change moving the Ombudsman Office
under Legislative Council.
4. Increments (major)
$338,000 Increased Funding for 30 thirty day special
session
$102,300 for one new position Ombudsman
$26,400 for casual labor Ombudsman
$81,800 additional personal services for Office of
Victim Rights
5. Decrements (major)
($251,200) Legislative Audit Carryforward
($194,200) Legislative Finance Carryforward
($51,100) Ombudsman Carryforward
($668,200) Senate Finance Carryforward
($286,300) House Operating Carryforward
($168,400) Senate Operating Carryforward
($126,300) Office of Victims Rights Carryforward
($40,000) Efficiency Reduction Administrative Services
Personnel
The subcommittee reviewed the personnel count for the
Legislature. There is one new full-time position and
one less part-time position.
Co-Chair Hoffman highlighted this report, adding that the
recommended addition of $338,000 for a special session would be
in addition to the base of $100,000 and was considered in
anticipation of a special session to complete efforts on the
Alaska Gasline Inducement Act (AGIA).
Co-Chair Hoffman added that the relocation of the Ombudsman
allocation was a change made to conform to action taken by the
House of Representatives.
9:11:07 AM
Department of Administration
Subcommittee members: Senator Hoffman, Senator McGuire,
Senator Dyson.
The Senate Finance Subcommittee for the Department of
Administration submits an Operating budget consisting of
numbers and language and excluding PERS/TRS consideration
to the full Senate Finance Committee for FY 08 as follows:
General Funds
08 Adj Base: 65,342,400
Gov Amend: 68,386,600
Hse-PERS: 67,819,100
Sen Sub: 64,569,100
Fed Funds
08 Adj Base: 2,876,300
Gov Amend: 2,857,100
Hse-PERS: 2,876,300
Sen Sub: 2,844,500
Other Funds
08 Adj Base: 202,603,600
Gov Amend: 206,692,200
Hse-PERS: 206,356,700
Sen Sub: 199,184,700
Total
08 Adj Base: 270,822,300
Gov Amend: 277,935,900
Hse-PERS: 277,052,100
Sen Sub: 266,598,300
Budget Action
1. Accepted the FY08 adjusted base budget.
2. Accepted FY08 request for health cost fund source
changes of $1,600.
3. Accepted the Governor's amended budget.
4. Denied FY08 request for fuel cost increases totaling
$44,400. All fuel increases are deferred to the full
Senate Finance Committee for consideration
5. Denied FY08 request for PERS fund source changes
totaling $208,900. All retirement related changes are
deferred to the full Senate Finance Committee for
consideration in the statewide retirement proposal.
6. Removed non-GF excess funds due to the PERS rate
reduction of $7,003,800.
Amendment Action
Reviewed amendments submitted by the Governor.
1. Accepted the following Governor's proposed amendments:
Amendment #3: (19,200)GF in AOGCC, replaced with 19,200
AOGCC RSS
Amendment #4: 4,900 AOGCC RSS for lease costs
Amendment #5: (327,000) GF in ETS chargeback receipts
Amendment #6: (1,600,000) GF in DOA Leases
Amendment #7: (100,000) GF EPORS cost estimate reductions
Amendment #8: 154,500 RSS to ETS
Amendment #10: (2,049,000) RSS Group Health Contract cost
estimate reduction
Amendment #11: (150,000) GF Labor Relations staff
consolidation/efficiencies
Amendment #12: (10,500) RSS to DMV
Amendment #13: 1,440,600 RSS to DMV for leases
Amendment #18: (160,400) GF Personnel staff
consolidations/efficiencies
Amendment #20: 319,500 RSS to Retirement & Benefits for 3
PFT in personal services support and 1 PFT for an
internal auditor
Amendment #21: net zero to Retirement & Benefits for fund
source reallocations
Amendment #31 (1,000,000) I/A RSS to Risk Management for
Marine Insurance Premium reductions (ADFG, DPS, DOTPF)
Amendment #32: 25,000 GF to Satellite Infrastructure
lease increase
Amendment #33: (25,000) GF to UVPARP annuity purchase
cost estimate reduction
2. The subcommittee reviewed and partially accepted the
following Governor's amendment:
Amendment #19: Accepted 3 positions @ $300,000 to Public
Defender Agency; Governor requested 8 positions @
$800,000
3. The subcommittee reviewed but did not accept the
following Governor's amendments:
Amendment #9: 2,250,000 GF operation/maintenance costs to
ALMR
Amendment #14: 7000,000 to OPA (500,000 GF & 200,000
SDPR) for 5 PFT
Amendment #22-30: are in the Language section and are
related to PERS/TRS. All retirement related changes are
deferred to the full Senate Finance Committee for
consideration in the statewide retirement proposal.
4. The subcommittee reviewed the Language section of the
budget. The subcommittee accepted the following
amendments:
Amendment #15: (1,500,000) GF to Commissioner's Office,
reduction in distribution to departments for ETS
chargeback rates and non-covered employee health
insurance. Additional efficiencies were identified in
the amount of (559,000) for a total reduction of
(2,059,000)
Amendment #16: 250,000 GF to Commissioner's Office for
security and anti-virus software
Amendment #17: 825,000 GF to Commissioner's Office for
Exchange and Active Directory funding to all
departments. Accepting all three amendments yielded a
net savings of $984,000
5. The subcommittee reviewed the Office of Public Advocacy
(OPA) budget and amended the budget to include an
increment for the Office of Elder Fraud and Assistance.
The subcommittee finds that the current funding level for
this office is insufficient to meet the demand for
advocacy. An increment of $231,199 is accepted and three
new positions to properly address this new function of
OPA created by statute in 2006 are approved.
Personnel
The subcommittee reviewed the personnel count for the
Department. The authorized position count for FY08
Adjusted Base is 1,028 permanent full-time, 27
permanent part-time and 27 temporary. The FY08
Governor requested 25 new PFT. The subcommittee
accepted 8 requested positions plus an additional 3
for the Elder Fraud unit in OPA for a total of 11 new
PFT positions:
4 - Retirement & Benefits
1 - APOC (Anc)
3 - Office Public Advocacy (Anc/Elder Fraud,
Attorney II, Investigator, Clerk II)
3 - Public Defenders Agency (Anc)
11 (1,039 PFT total Department position count)
Co-Chair Hoffman overviewed the subcommittee recommendations.
9:14:10 AM
Department of Fish and Game
Subcommittee members: Senator Hoffman, Senator Stedman,
Senator Stevens, Senator Wielechowski, Senator Wagoner.
The Senate Finance Subcommittee for the Department of Fish
and Game submits an Operating Budget to the full Senate
Finance Committee for FY 08 as follows:
General Funds
07 Adj Base: 42,760,700
Gov Amend: 52,080,500
House: 43,671,300
Sen. Sub: 43,671,300
Fed Funds
07 Adj Base: 68,018,200
Gov Amend: 62,137,900
House: 66,723,200
Sen. Sub: 66,723,200
Other Funds
07 Adj Base: 69,852,400
Gov Amend: 65,626,200
House: 69,332,400
Sen. Sub: 68,704,700
Position changes
PFT
FY 07: 862
FY 08: 858
PPT
FY 07: 800
FY 08: 800
Temp
FY 07: 102
FY 08: 99
Budget Action
1. The Sub Committee removed all items related to the
retirement costs and fuel increases. These items will
be considered by the full Finance Committee.
2. Reviewed and accepted all of the amendments submitted
by the Governor.
Amendment #110: (149,000) GF for Admin Services,
eliminates 1 PFT, 2 temp
Amendment #112: (342,800) fund source switch for
CFEC, covers CFEC with RSS and moves 342,800
in GF to Comm Fish
Amendment #113: GF for Comm Fish Special
Projects, eliminates 2 PFT (Publications
Specialist & Analyst/ Programmer)
Amendment #114: (85,000) GF for Commissioner's
office, eliminates one PFT, Oceans Policy
Coordinator
Amendment #115: (100,000) other funds for EVOSS
(see Am#111)
Amendment #116: (13,100) for HQ Fisheries
Management, insurance premium reduction
Amendment #117: 342,800 for HQ Fisheries
Management, switch with CFEC (see amendment
#112)
Amendment #118: (63,000) for Southeast Region
Fisheries Management Eliminates publications
specialist accounted for in Amendment #113.
Amendment #119: (700) Fish and Game Fund for
Sport Fish Marine Insurance Premium
reduction
Amendment #120: GF for Sport Fish, restructures
Aquatic Resources Coordination Project
Amendment #121: (97,100) GF for Sport Fish,
restructure educational and outreach
projects
Amendment #122: (11,700) GF for Sport Fish,
eliminate temp intern position
Amendment #123: (700) Fish and Game Fund for
Wildlife Conservation Marine Insurance
Premium reduction
Amendment #124: (22,700) GF for Wildlife
Conservation, reduced fuel costs
Amendment #125: 100,000 EVOS receipts for
Wildlife Conservation Special Projects
3. The Sub-Committee added intent language to the
Wildlife Conservation, Public Shooting Range Component
as follows: It is the intent of the legislature that
the Department of F&G develop a plan to make the
shooting ranges completely self-supporting by FY 2009.
Items of Concerns
1. Maximizing harvest opportunities. The Constitution of
the State of Alaska mandates the management of
resources for the maximum benefit of the people. Yet
anecdotally, the department has cited lack of funds
for stock assessments as cause to manage certain
fisheries conservatively. Because it is important for
the legislature to know to what extent if any the
state is missing opportunities for fisheries
development, the sub-committee requests that the
department perform a review of managed fisheries that
are currently limited by insufficient scientific data
to allow maximum harvest opportunities. Individual
fisheries managers should be required to study the
potential for increased harvest opportunities in their
respective areas, and summarize ways, if any, that
their budgets limit their ability to expand the use of
fisheries resources. In the FY 09 budget request, the
department should include cost estimates of any stock
assessments necessary to better understand target
species abundance and distribution. The department
should also report on ways in which cooperative
studies with industry can help to expand fisheries in
a cost-effective manner. This item of concern is not
meant to impugn the management of the department,
which is world renowned for its effective and
sustainable management of our fisheries. However, it
is the intent of the subcommittee to encourage ADFG to
look at what it could be doing with better funding
directed at expanding harvest opportunities for both
existing fisheries and potential new fisheries.
2. The Department has indicated for several years that
retaining key fisheries management personnel is
becoming more and more difficult because the state
salaries are not competitive with the salaries paid to
equivalent positions in the federal government. The
departure of experienced biologists with critical
knowledge of the Alaskan fishing industry and
fisheries resources will leave the department with
deficiencies in its core functions. The subcommittee
respectfully requests that the administration pay
close attention to this problem and report to the
legislature during the next budget cycle with
solutions.
3. Operation of shooting ranges fall outside the scope of
this Department and it is the intent that the existing
shooting ranges become self supporting by FY 09. The
FY 06 shortfall was $375k for the 3 state run shooting
ranges.
Co-Chair Hoffman summarized this budget recommendation, and read
the intent language relating to public shooting ranges.
9:16:32 AM
Department of Law
Subcommittee members: Senator Stedman, Senator McGuire,
Senator French, Senator Therriault
The Senate Finance Subcommittee for the Department of Law
submits an operating budget proposal to the full Seante
Finance Committee for FY 08 as follows:
General Funds
06 Actual: $55,719,700
07 Adj Base: $43,037,200
Gov Amend: $45,484,200
Sen. Sub: $43,251,600
Fed Funds
06 Actual: 1,147,400
07 Adj Base: 3,013,900
Gov Amend: 3,113,900
Sen. Sub: 3,133,900
Other Funds
06 Actual: 21,180,400
07 Adj Base: 26,066,400
Gov Amend: 24,059,800
Sen. Sub: 26,173,500
Total
06 Actual: $78,047,500
07 Adj Base: $72,117,500
Gov Amend: $72,657,900
Sen. Sub: $72,539,000
Position changes
FT
FY 07: 535
FY 08 Sen. Sub.: 535
PT
FY 07: 11
FY 08 Sen. Sub.: 12
Budget Action
The Senate Subcommittee FY08 operating budget proposal
for the Department of Law excludes funding for PERS
cost increases as directed by the operating Co-chair's
office. Funding for the PERS employer contribution
rates will be handled by the full Finance Committee in
accordance with anticipated adjustments to the rates.
The Senate Finance Subcommittee recommendation fully
funds the Governor's amended budget request for the
Department of Law with the exception of one permanent
full time position and $118,900 in associated funding
in the Criminal Justice Litigation allocation. This
Public Information Officer position was identified for
deletion by the department in view of the
subcommittee's intention to allow no net increase over
the FY07 adjusted base in the number of permanent full
time positions in the department.
The following FY08 Governor's Amended increments have
been incorporated into the Senate Finance Subcommittee
recommendation:
Attorney V position and support costs in the
Commercial and Fair Business section for the
implementation of the cruise ship initiative
$167,400
Two paralegal positions and one part-time support
staff position for the Child Protection section
$250,800
Funding for increased office space lease costs
for the Criminal Division in the Third Judicial
District outside Anchorage and the Fourth
Judicial District and for the Collections and
Support section of the Civil Division
$293,000
Dimond Courthouse Building maintenance costs
$203,200
The Governor's Amended budget reverses increments that
were included in the Governor's original budget for
Criminal Division travel costs in the amount of
$195,800 and Anchorage employee parking in the amount
of $199,300. Other decrements in the Governor's
Amended budget request reverse increments for a new
attorney position in the Criminal Division for
prosecution of fish and game violations and an
attorney position in the Civil Division Environmental
Law section for implementation of the cruise ship
initiative. The Governor's Amended request also
deletes an attorney position in the Civil Division
Labor and State Affairs section that handles
procurement and employment cases and eliminates
funding for an attorney position in the Civil Division
Statehood Defense section.
The House version of the FY08 budget for the Dept. of
Law funds the agency at the FY08 Governor's Amended
level and also restores half, or $99,700, of the
funding for Anchorage staff parking and restores half,
or $80,000, of the funding for the
procurement/employment law attorney position in the
Civil Division Labor and State Affairs section.
Items of Concern
The Alaska Court System expressed concern about
deletion of the Labor and State Affairs section
attorney position in the Governor's Amended request.
Labor and State Affairs section staff attorneys defend
Court System officers and employees in non-tort cases
without reimbursement for the cost of the defense. The
Subcommittee's FY08 budget proposal includes intent
language directing the Department of Law to continue
to provide representation for non-tort claims to the
Court System, the Judicial Council, the Commission on
Judicial Conduct, and the Legislature.
Co-Chair Stedman spoke to this request.
9:18:14 AM
University of Alaska
Subcommittee members: Senator Stedman, Senator Hoffman,
Senator Huggins, Senator Olson, Senator Thomas, Senator
Elton, Senator Dyson.
Committee is recommending an FY08 Operating Budget for the
University of Alaska of $796.8 million:
Funding Summary
GF: $287,437,300
Increase over FY07: 2.3%
Federal: $152,660,900
Increase over FY07: 2.1%
Other: $356,693,300
Increase over FY07: 3.4%
Total: $796,791,500
Increase over FY07: 2.8%
Report #1 Agency Totals: indicates the total dollars and
fund sources recommended by the committee. These are the
same totals and fund sources passed by the House.
Report #2 Allocation Summary: indicates the appropriation
structure recommended by the committee. This is the same
appropriation structure passed by the House.
Report #3 Transaction Comparison (Adj Base to SenSub):
compares the subcommittee's budget and the FY08 Adjusted
Base. The committee:
· Adopted the FY08 Adjusted Base.
· Accepts the Regent's full $18,772,000 request for FY
08 Salary and Health Care increases. $12,989,000 of
this increment is GF.
· Assumes a FY08 Teachers Retirement System (TRS)
contribution rate of 12.56%, and transfers
$5,800,000 from the University's budget to the
Department of Administration for direct payment to
the system. The Governor's amended budget assumed a
rate of 26%.
· Assumes an FY08 Optional Retirement Plan (ORP)
contribution rate equal to 19.85% (a 3 year rolling
average of the consolidated TRS rate). This rate is
significantly lower than the budgeted FY08 rate of
33.68%. This rate reduction resulted in a $7.4
million GF savings.
· Shares $2.5 million GF in ORP savings with the
University to help off-set increased fix cost needs.
· Assumes an FY08 Public Employees Retirement System
(PERS) contribution rate of 22% and transfers $18.8
million GF from the University's budget to the
Department of Administration for direct payment to
the system.
· Recommends that the full Finance Committee accept
the contingent fuel & utility cost increase language
adopted by the House. If the average price of oil
exceeds $35 a barrel, the University has the
potential to receive additional funding up to a
maximum amount of $2.64 million (See attached
sheet).
Co-Chair Stedman overviewed this request, noting that the
subcommittee recommendation "lined up" with the House of
Representatives' proposal.
9:18:56 AM
Department of Revenue
Subcommittee members: Senator Stedman, Senator French,
Senator Bunde.
The Senate Finance Operating Budget Sub-committee for the
Department of Revenue submits an operating budget to the
full Senate Finance Committee for FY08 as follows:
Gen Funds
06 Actual: 16,100,300
07 Adj Base: 13,779,100
Gov Amend: 41,642,900
Sen. Sub: 41,096,500
Fed Funds
06 Actual: 13,927,100
07 Adj Base: 43,857,700
Gov Amend: 37,095,800
Sen. Sub: 38,391,500
Other Funds
06 Actual: 133,243,900
07 Adj Base: 163,693,700
Gov Amend: 187,792,300
Sen. Sub: 188,201,500
Total
06 Actual: 187,271,300
07 Adj Base: 221,330,500
Gov Amend: 266,531,000
Sen. Sub: 267,689,500
Position changes
FT
FY 07: 866
FY 08: 855
PT
FY 07: 53
FY 08: 53
PPT
FY 07: 17
FY 08: 17
There were increases in personnel for the
implementation of the Petroleum Production Tax (9)
These positions were approved through previous
legislation and are not reflected as increases in the
FT totals. There were also increases in the Cruise
Ship initiative (6). There were decreases for
deletions of vacant gasline project positions (13), IT
positions (1), and tax auditor positions (2). One
additional Stranded Gas Act position was also deleted
(total 17 deleted). The net result is a reduction of
11 positions.
Budget Action
1. The subcommittee adopted the Governor's amended budget
with the following changes:
2. All retirement related changes are deferred to the
Finance Committee for consideration in the statewide
retirement proposal.
Language Recommendation
The subcommittee set a cap of $25 million on the
amount necessary to issue refunds for capital lease
bids as provided in AS 43.55.023(f). The amount is
appropriated from the general fund to the Department
of Revenue, tax division, for the purpose of making
the refunds under AS 43.55.023(f).
Items of Concern
The subcommittee recognized that an increase in
appropriation personnel was necessary for the Tax
Division to meet its obligation to implement the
Petroleum Production Tax and the Cruise Ship
initiative. The subcommittee also adopted an increase
for Tax Auditor salaries to support the Tax Division's
effort to fill all positions. It is the subcommittee's
expectation that the Tax Division will report on the
success of their efforts to fill all positions and
will supply an accounting of the funds appropriated in
support of their effort.
Co-Chair Stedman reviewed this request, noting that the
"apparent large increments" were due to the $25 million
allocation for the Petroleum Production Tax (PPT) credits and
additional personnel to implement the PPT and Cruise Ship
initiative.
9:22:00 AM
Department of Transportation and Public Facilities
Subcommittee members: Senator Olson, Senator Cowdery,
Senator Kookesh, Senator Stevens, Senator Stedman, Senator
Wielechowski, Senator Bunde.
The Senate Finance Sub-committee for the Department of
Transportation and Public Facilities submits an operating
budget to the full Senate Finance Committee for FY 08 as
follows:
Gen. Funds
06 Actual: $194,925,100
07 Adj. Base: $209,062,400
Gov. Amd: $225,650,200
Sen. Sub: $208,880,400
Fed. Funds
06 Actual: 1,882,300
07 Adj. Base: 4,003,400
Gov. Amd: 3,773,000
Sen. Sub: 4,003,400
Other
06 Actual: 263,294,900
07 Adj. Base: 309,405,300
Gov. Amd: 307,989,300
Sen. Sub: 312,986,600
Total
06 Actual: $460,102,300
07 Adj. Base: $522,471,100
Gov. Amd: $537,412,500
Sen. Sub: $525,870,400
Position Changes
FT
FY 07: 3,011
FY 08 (Sen Sub): 3,010
PPT
FY 07: 541
FY 08(Sen Sub): 540
PT
FY 07: 1
FY 08 (Sen Sub): 1
The Senate FY 08 budget for the Department of
Transportation and Public Facilities presented here is
without increased retirement and benefit contributions in
the personal services lines and without additional costs
associated with estimated fuel price increases. These costs
will be addressed by the full finance committee for all
state agencies.
The sub committee reviewed the governor's proposed FY 08
budget and budget amendments. Of the 84 recommendations,
the most significant that are accepted include the
following:
Salary increases from market based pay adjustments
$4,009,300
Operational costs of 28 new facilities
551,500
Required airport security at 16 locations
1,216,100
State equipment fleet cost increases
2,000,000
Specific recommendations that are denied include the
following:
Environmental position for Sitka and mid region access
115,600
Four engineering positions for Juneau access
474,300
Central region engineer position for contract close-
outs
102,000
Fox Spring maintenance decrement
(30,000)
Commodity price increases in Northern and Central
Regions
1,185,000
Anchorage International Airport janitorial conract
Heating fuel reductions at 97 rural airports
(500,000)
Finally, the proposed $6,600,000 decrement to the Marine
Highway System vessel operations is reduce by $2,000,000 in
order to maintain winter service to Kodiak and Prince
William Sound.
Senator Olson summarized this budget proposal, noting the
"biggest difference" between the Governor's requested budget and
the subcommittee recommendation was the reduction in the Marine
Highway System decrement.
9:24:36 AM
Department of Public Safety
Subcommittee members: Senator Olson, Senator Wielechowski,
Senator McGuire, Senator Ellis, Senator Bunde.
The Senate Finance Subcommittee for the Department of
Public Safety submits an operating budget to the full
Senate Finance Committee for FY 08 as follows:
General Funds
06 Actual: $93,869,200
07 Adj Base: $114,781,600
Gov. Amd: $117,468,500
Sen Sub: $114,499,600
Fed Funds
06 Actual: 7,652,400
07 Adj Base: 12,708,500
Gov. Amd: 12,671,300
Sen Sub: 12,703,300
Other Funds
06 Actual: 16,653,200
07 Adj Base: 21,415,000
Gov. Amd: 21,365,900
Sen Sub: 21,906,500
Total
06 Actual: 118,174,800
07 Adj Base: 148,905,100
Gov. Amd: 151,505,700
Sen Sub: 149,109,400
Position Changes
FT
FY 07: 822
FY 08 (Sen Sub): 823
PT
FY 07: 17
FY 08 (Sen Sub): 17
PPT
FY 07: 12
FY 08 (Sen Sub): 11
Budget Action
The Senate Finance Sub-Committee budget authorizes
$2,396,300 less in total than the Governor's Amended
Budget Request. The differences are shown in summary
and in detail in the attached reports. Most of the
Governor's recommendations were accepted.
Per your direction, the PERS fund source switches,
which would have increased GF by $572,600 and cut
other funding sources by a corresponding amount, were
removed form this budget request, to be dealt with by
the full Finance Committee.
The other main differences between the Governor's
Amended budget request and that of the sub-committee
proposal are:
· The Governor offered a reduction of $145,000 to
reduce aircraft operations for the department's
most expensive aircraft. That reduction was
accepted and further reduced to a total of
$500,000. The Department has been lapsing several
hundred thousand of GF (even after excluding the
carryforward addressed in the next paragraph) due
to a high rate of vacancies. They have the
ability to transfer those anticipated balances
within the appropriation should they need in
order to cover this additional reduction, so by
doing so we do not anticipate the need for a
reduction in services beyond what the Governor
proposed.
· The Governor proposed carryforward language with
a corresponding decrease of $563,400 to the
Village Public Safety Officer Program (VPSO).
Since their actual carryforward last year was
$780,000, we accepted the carryforward language,
but changed the reduction to $750,000 which we
feel is a more realistic expectation of their
probable GF lapse.
· This proposal includes an increase of $300,000 to
the Council on Domestic Violence and Sexual
Assault (CDVSA). $100,000 was offered by the
Governor and later withdrawn in the Governor's
Amendments. The remaining $200,000 was added for
the Barrow shelter, Arctic Women in Crisis
(AWIC).
· Finally, the Governor's budget split the State
Troopers and created a new division of Alaska
Wildlife Troopers which is composed of several
components/allocations. The sub-committee
accepted the structure changes as detailed on the
attachment called "FY 2008 Proposed
Structure/Dept of Public Safety", and accepted
all transfers of existing funds and positions to
create the division. However, the sub-committee
did not accept the request for 5 new positions
and approximately $650,000.
The Sub-Committee reviewed the Governor's request for
the following language in the language section and
recommends it be included in the Senate Finance
Committee Substitute (CS) for the Village Public
Safety Officer Allocation: "The unexpended and
unobligated general fund balance of the appropriation
made in sec. 1, CH 33, SLA 2006, page 32, line 30
(Village Public Safety Officer Program - $5,274,100)
is reappropriated to the Department of Public Safety
for the Village Public Safety Officer Program for the
fiscal year ending June 30, 2008."
Additional recommendations for language to be included
in the "numbers section" of the CS are shown in the
attached "Wordage" report.
Items of Concern
Perhaps the biggest concern for this budget is the
continuing problem with vacant State Trooper and VPSO
positions. With the vacancy rate as high as it is and
has been, it is difficult to protect Alaskans and
provide public safety. The Commissioner has ideas for
implementing a new tiered approach to all public
safety officer positions in the hopes of attracting
and retaining people in these positions; and as a new
way of providing the needed coverage in a different
way. He asked for this year to develop those ideas
into a recommendation to the Legislature next year.
The other concern that remains with this budget is the
possible loss of funding for the Narcotics Task Force.
The Governor's budget included a request for
$1,393,200 of funding contingent on a similar loss of
federal funding for the Task Force. Our recommendation
does not include that funding as it is too early to
know whether or not they have a problem. If the
funding is not received, the Department should come
forth with a recommendation at that time when the
details are known.
Senator Olson overviewed the recommendation, noting that the
subcommittee did not include funding for five new Alaska
Wildlife enforcement positions. The subcommittee also proposed a
reappropriation of the remaining FY 07 general fund dollars in
the Village Public Safety Officer component, but due to an
oversight the language was not "carried forward." He would offer
an amendment at a later date to address that issue.
9:27:06 AM
Department of Health and Social Services
Subcommittee members: Senator Olson, Senator Green, Senator
Davis, Senator Dyson.
The Senate Finance Sub-committee for the Department of
Health and Social Services submits an operating budget to
the full Senate Finance Committee for FY 08 as follows:
Gen Funds
06 Actual: $677,788,300
07 Adj Base: $762,678,600
Gov Amd: $861,305,500
Sen Sub (includes language): $811,373,000
Fed Funds
06 Actual: 906,049,400
07 Adj Base: 1,080,783,500
Gov Amd: 1,022,296,800
Sen Sub (includes language): 1,023,922,300
Oth Funds
06 Actual: 159,321,200
07 Adj Base: 157,473,800
Gov Amd: 158,584,200
Sen Sub (includes language): 159,617,700
Total
06 Actual: $1,743,158,900
07 Adj Base: $2,000,935,900
Gov Amd: $2,042,186,500
Sen Sub (includes language): $1,994,913,000
Position Changes
FT
FY 07: 3,307
FY 08 (Sen Sub): 3,299
PT
FY 07: 107
FY 08 (Sen Sub): 106
PPT
FY 07: 226
FY 08 (Sen Sub): 203
Budget Action
The Senate Finance Sub-Committee budget authorizes
$47,273,500 less in total than the Governor's Amended
Budget Request. The differences are shown in summary
and in detail in the attached reports. The approach to
our budget recommendations was to accept:
· changes that resulted from revised projected
costs,
· most rate changes,
· changes due to legislation passed in a prior
session,
· most increases that were due to various changes
in requirements such as Veterans Home
requirements, staffing for safety concerns in the
Youth Centers,
· funding changes that increase General Funds (GF)
required due to the Deficit Reduction Act and a
decline in the upper payment limit (Proshare),
and
· changes to restore funding to important programs
that serve the needy directly or through various
grants programs and which have lost other funding
to support them.
We believe that funding these items is basic and
integral to the services provided by this budget, and
consider them to essentially be part of a
"continuation" budget. To do otherwise might not
provide the basic support to children, the frail, and
other Alaskans who cannot provide for themselves.
Very little growth in programs or positions was
accepted in this budget. The two that were accepted
and that are most significant given a budget of this
size are: 1) to fund most of the department's requests
related to the Bring the Kids Home Initiative (BTKH);
and 2) to partially implement the workload study
regarding the Office of Children's Services Front Line
Social Workers. Both of these provide direct services
to Alaskan children who are most in need of the
state's protection and support.
Most changes to non-GF sources were also accepted.
We have to commend the Governor and the department for
offering a lot of reductions for cost containment,
efficiencies, and long term vacancies in positions. We
accepted all of those offered that did not require a
change in services or regulations; and most of those
that did require such a change. However, three that
were offered were not accepted because they would have
increased the Residential Psychiatric Treatment
Centers (RPTC) Medicaid eligibility from 30 to 60
days, limited RPTC stays to 180 days, and eliminated
the Medicaid Exceptional Relief provided to distressed
hospitals, nursing facilities, rural health clinics,
and federally qualified health centers.
The Governor offered a reduction to GF funding that
supports the core infrastructure and operation of the
chronic disease prevention and health promotion
programs by replacing it with Tobacco funding;
however, that change was also not accepted and is not
included in this budget.
With so many essential services to our most vulnerable
Alaskans funded by this budget, there were many worthy
and important requests that we were not able to fund.
An example is a request for $2.3 million of funding to
strengthen and expand the Community Health Centers
(CHCs). Although they are an alternative to more
expensive care provided in hospitals, and have
received the highest rating possible from the federal
Office of Management and Budget for efficiency and
quality, unfortunately it was not possible to include
an expansion such as this in this budget
recommendation.
Another significant change in this budget proposal is
related to the Office of Faith Based & Community
Initiatives (FBCI). The Governor requested funding to
re-establish the Faith Based Council; and to eliminate
the Human Services Community Matching Grants (HSC) by
moving its funding to this program. The HSC grants can
only go to 3 communities in the State; whereas the
FBCI grants can go to any community. We support the
concept offered by the Governor through this change
and agree that other areas of the State should have a
chance to receive this funding in support of various
community services. Our proposal is to leave the
existing grant funding where it currently is, and to
add funding to the FBCI for grants to communities that
are ineligible to receive HSC grants. We do not
believe the additional funds requested for the FCBI
Office and Council, as opposed to grants, is necessary
if the existing grant funding stays where it currently
is; and so we did not accept that request to fund the
office in this budget.
Finally, the Longevity Bonus Program and the Senior
Care funding were removed from the Governor's budget
and are not included in this proposed budget. This was
a technical adjustment and in no way indicates lack of
support for either of these important programs. In
fact I have submitted a bill to reauthorize the Senior
Care program because I believe this program is
important to the elderly of our state. Rather, the
funding was removed solely because each of these
programs require some form of legislation to pass the
Legislature, and with so many different bills
proposed, it is indeterminate how much funding is
needed until it is known what legislation passes.
Because of that, the funding should be included in the
Fiscal Note that accompanies the legislation rather
than in the operating budget (the first year).
Items of Concern
Clearly, the biggest concern for this budget is the
potential change to the Federal Medical Assistance
Percentage (FMAP). The State currently enjoys a
favorable 57.58% (which means the federal government
pays for $57.58 of every $100 spent); but it is
projected to drop to as low as 52.48% at the beginning
of the next federal year, October 1, 2007. This
reduction of 5.1% in the rate, for 9 months of the
fiscal year, would mean the State would need to pay an
additional $37,142,500 of GF to compensate for the
lower federal share of the cost.
This budget funds that potential increase by
conditional language which will be triggered by an
actual change in the federal legislation and would
then fund the actual change on a sliding scale. Should
the change in FMAP occur as projected on October 1,
all of the GF would be appropriated to the department;
however, if the change does not occur on October 1 or
if the change is less than 5.1%, then only the pro
rata share would be funded. This way, vulnerable
Alaskans are protected should the state be required to
pay a larger share, but we are also protecting the
state's resources by not authorizing the funding
unless it is truly required.
Senator Olson summarized this budget proposal, attributing the
largest increase to the adjusted Federal Medical Assistance
Percentage (FMAP) funding.
9:29:24 AM
Department of Military and Veterans Affairs
Subcommittee members: Senator Huggins, Senator Dyson,
Senator Wielechowski.
The Senate Finance Subcommittee for the Department of
Military and Veterans Affairs submits an operating budget
to the full Senate Finance Committee for FY 08 as follows:
General Funds
06 Actual: 13,431,000
08 Adj Base: 13,448,400
Gov Amend: 13,625,700
Sen Sub: 11,988,800
Federal Funds
06 Actual: 16,720,400
08 Adj Base: 21,211,300
Gov Amend: 20,291,300
Sen Sub: 21,320,700
Other Funds
06 Actual: 9,888,100
08 Adj Base: 10,295,700
Gov Amend: 11,678,800
Sen Sub: 11,853,800
The FY 08 Adjusted Base to the Senate Subcommittee is a
10.9% reduction.
Position Changes
FT
FY 08 (Adj Base): 294
FY 08 (Gov amended):285 (Reduced FT positions by
9)
PPT
FY 08 (Adj Base): 4
FY 08 (Gov amended): 2
Temp
FY 08 (Adj Base): 2
FY 08 (Gov amended): 1
Budget Action
· As instructed the Subcommittee adopted the FY 08
adjusted base and worked from there.
· The Subcommittee denied all FY08 PERS fund source
changes.
· The Subcommittee denied increments for fuel increases.
· The Subcommittee accepted amendments proposed by the
Governor for a total General Fund reduction of
$1,099,200 from the Governor's original budget.
· The Senate Subcommittee added $30,000 of General Funds
for the Alaska National Guard's education tuition
assistance program.
· The Senate Subcommittee added $50,000 of General funds
for the Alaska Territorial Guard.
· The Subcommittee accepted Section 13 of the Governor's
budget language section appropriating 5% of the market
value of average ending balances in the Alaska
veterans' memorial endowment fund to DMVA as outlined
in statute.
Amendment Action
Items of Concern
The House CS replaces all of the agency's
Oil/Hazardous funding with General Funds - totaling
515,600. The Senate Subcommittee's budget maintains
the Oil/Hazardous funding at the FY08 Adjusted Base
level.
Senator Huggins spoke to this report, informing that
the recommended funding for the Alaska Territorial
National Guard would identify World War II veterans
eligible to receive benefits.
9:30:53 AM
Department of Education and Early Development
Subcommittee members: Senator Huggins, Senator Kookesh,
Senator Davis, Senator Stevens, Senator Wilken.
The Senate Finance Subcommittee for the Department of
Education and Early Development submits an operating budget
to the full Senate Finance Committee for FY 08 as follows:
General Funds
06 Actual (Numbers & lang): 886,554,400
08 Adj Base (Numbers only): 46,715,300
Gov Amend (Numbers only): 51,374,400
Sen Sub (Numbers only): 46,779,800
Federal Funds
06 Actual (Numbers & lang): 194,784,800
08 Adj Base (Numbers only): 215,168,600
Gov Amend (Numbers only): 193,591,100
Sen Sub (Numbers only): 215,168,600
Other Funds
06 Actual (Numbers & lang): 32,008,400
08 Adj Base (Numbers only): 36,984,600
Gov Amend (Numbers only): 23,882,000
Sen Sub (Numbers only): 35,264,800
Total
Sen Sub (Numbers only): 297,213,200
Position Changes
FT
FY 08 (Adj Base): 306
FY 08 (Gov amended): 303
FY 08 Sen Subcommittee: 302
PPT
FY 08 (Adj Base): 39
FY 08 (Gov amended): 39
FY 08 Sen Subcommittee: 39
Temp
FY 08 (Adj Base): 0
FY 08 (Gov amended): 0
FY 08 Sen Subcommittee: 0
Budget Action
· As instructed the Subcommittee adopted the FY 08
adjusted base and worked from there.
· The Subcommittee accepted the Governor's Amended FY 08
General Fund Budget (minus PERS and TRS fund source
changes which will be addressed with other retirement
funding issues at full senate finance).
· Language section of the budget will be dealt with in
full finance. K-12 appropriation to fund the
foundation formula was not considered by the
Subcommittee. The full Finance Committee will address
the K-12 funding level and fund sources.
· Intent Language approved relating to the Alaska
Statewide Mentoring Program.
· Conditional Language approved for Teacher
Certification so that receipts generated from teacher
certification fees in FY 07 can be allocated for FY 08
spending.
Highlighted Changes (not proposed by the Governor)
School Performance Incentive - $3.3 million GF
decrement (leaving $2.5 million). The correct dollar
amount needed for the program is unknown. Incentive
grants will not be paid until August or September. The
Subcommittee would like to re-evaluate the program
during the FY 09 budget cycle.
Alaska Challenge Youth Academy - $259,700 increment.
Approving this increment reduces the GF generated by
the AMYA funding formula by $2 million.
Charter School Grants - $200,000 GF is appropriated
for Charter School Grants.
AK Mineral and Energy Resource Education Fund - 25,000
GF is added for AMEREF.
Senator Huggins reviewed the subcommittee recommendation.
9:32:58 AM
Department of Natural Resources
Subcommittee members: Senator Huggins, Senator Green,
Senator Wagoner.
The Senate Finance Budget Subcommittee for the Department
of Natural Resources submits an operating budget to the
full Senate Finance Committee for FY 08 as follows:
General Funds
06 Actual: 65,618,500
08 Adj Base: 63,651,800
Gov Amend: 69,525,000
Sen Sub: 67,780,900
Federal Funds
06 Actual: 24,212,500
08 Adj Base: 17,014,700
Gov Amend: 16,392,200
Sen Sub: 17,015,100
Other Funds
06 Actual: 36,667,800
08 Adj Base: 48,405,900
Gov Amend: 47,766,800
Sen Sub: 47,240,200
Position Changes
FT
FY 08 (Adj Base): 775
FY 08 (Gov Amended): 778
FY 08 Sen Sub: 778
PPT
FY 08 (Adj Base): 252
FY 08 (Gov Amended): 252
FY 08 Sen Sub: 252
Temp
FY 08 (Adj Base): 79
FY 08 (Gov Amended): 77
FY 08 Sen Sub: 77
Budget Action
Because the PERS rate is being reduced from 44% to
22%, the House's budget removed the general funds in
the salary adjustments. However, due to time
constraints, most of the "other" fund sources remained
in the budget. The Senate Subcommittee is now reducing
the "other" funds increases that are no longer needed
to pay for the increased PERS costs.
· As instructed the Subcommittee adopted the FY 08
adjusted base and worked from there.
· The Subcommittee denied all FY08 PERS fund source
changes.
· The Subcommittee denied all FY 08 fuel
increments.
· The Subcommittee accepted the Governor's Amended
FY 08 General Fund Budget (minus PERS and TRS
fund source changes which will be addressed with
other retirement funding issues at full senate
finance).
Highlighted Changes (not proposed by the Governor)
1. Did not accept Governor's GF decrement of 100,000 for
Economic Timber MOU with US Forest Service.
2. Fund Source switch of all Agricultural Revolving Loan
Funds (except for the Agricultural Revolving Loan
Program Administration allocation) to General Fund -
total of 943,900.
3. 50,000 GF increment for the Board of Agriculture and
Conservation to conduct current market appraisals on
properties owned by the State and under the purview of
the Board. Intent language inserted in the wordage
report.
4. Deny transfer of one position from part time to full
time in Forest Management and Development.
Senator Huggins summarized this subcommittee recommendation.
9:34:04 AM
Alaska Court System
Subcommittee members: Senator Elton, Senator Ellis, Senator
Therriault.
The Senate Finance Subcommittee for the Court System Budget
submits an Operating budget to the full Senate Finance
Committee for FY 08 as follows:
06 Actual: $66,519,400
07 Adj Base: $85,772,500
Gov Amend: $87,349,700
Senate Subcommittee: $84,938,400
General Funds: $82,519,000
Fed Funds: $1,675,600
Other Funds: $743,800
Total: $84,938,400
Position Changes
PFT
FY 07 Adjusted Base: 724
FY 08: 726
PPT
FY 07 Adjusted Base: 61
FY 08: 61
Temp
FY 07 Adjusted Base: 33
FY 08: 31
Budget Action
The Subcommittee accepted the governor's amended
request for the Judicial Retirement System.
The Subcommittee accepted the Court System's request
for $69,000 to improve juror pay. While the House
funded this as a one-time item, the Senate
Subcommittee recognizes juror pay expenses are
recurring and belong in the Court System's base
budget.
The Subcommittee accepted the Court System's request
for $59,500 to equalize the hourly rate for court-
appointed attorneys. This amount will pay private-
sector attorneys appointed by the courts at the same
rate as private attorneys hired by the Office of
Public Advocacy.
The Subcommittee accepted the Court System's request
for $75,000 to fund new travel per diem rates for
state employees.
The Subcommittee accepted the Court System's request
for $75,000 to fully fund security costs at the Bethel
courts. In recent years all courts received
legislative funding to improve security, but Bethel
was only partially funded. This increment annualizes
the needed amount.
The Subcommittee accepted the Court System's request
for $362,100 to fund Therapeutic Courts. This amount
included $227,500 to replace Mental Health Trust
Authority Authorized Receipts for the Palmer Mental
Health Court and the Therapeutic Courts Coordinator,
as well as $134,600 to fund targeted expansion of the
highly successful therapeutic courts model.
The Subcommittee accepted the Court System's request
for $332,800 to fund Juneau and Palmer building needs.
$260,800 will pay the courts' portion of the cost of
placing the Dimond Courthouse in the Public Building
Fund, while $72,000 will fund the additional Palmer
space required to house new judges and staff added by
the Legislature last year.
The Alaska Commission on Judicial Conduct requested
two increments, both of which the Subcommittee
accepts. The first is $3,800 to accurately reflect its
lease costs. The second is $9,000 to reduce the
vacancy rate of this two-person office to the OMB-
recommended level.
The Alaska Judicial Council requested $50,000 to staff
an interagency Criminal Justice Working Group. The
Subcommittee acknowledged the value of the work
previous working groups have done, and accepted the
increment.
While fuel and energy cost increases for executive
branch agencies will be handled at the full Finance
Committee, the Subcommittee provided the Court System
its requested $100,000 increment for fuel cost
increases, in acknowledgement of the courts' status as
a separate branch of government.
The Subcommittee also accepted technical revisions to
the fiscal note funding for SB 237, adopted by the
24th Legislature.
Items of Concern
The Subcommittee did not accept the Court System's
request for $192,000 to fund juror parking in
Anchorage. Other large municipalities provide parking
at no cost to the State of Alaska. The Subcommittee
encourages the Court System to partner with the
Municipality of Anchorage to find a solution that
reflects the significant costs the Court System bears
in handling municipal offences.
Senator Elton overviewed the subcommittee's recommendation.
9:35:42 AM
Department of Corrections
Subcommittee members: Senator Elton, Senator French,
Senator Wagoner.
The Senate Finance Subcommittee for the Department of
Corrections Budget submits an Operating budget to the full
Senate Finance Committee for FY 08 as follows:
06 Actual: $195,184,200
07 Adj Base: $231,856,500
Gov Amend: $243,348,800
Senate Subcommittee: $242,500,200
General Funds: $213,609,100
Fed Funds: $4,278,600
Other Funds: $24,612,500
Total: $242,500,200
Position Changes
PFT
FY 07 Adjusted Base: 1502
FY 08: 1514
PPT
FY 07 Adjusted Base: 8
FY 08: 8
Temp
FY 07 Adjusted Base: 3
FY 08: 0
Budget Action
The Subcommittee accepted the department's FY 07
adjusted base, and the changes outlined in this memo
operate from that funding level, with structure
changes as requested by the governor.
The Subcommittee removed PERS fund source changes.
These will be addressed in the full Finance Committee.
The Subcommittee also removed fuel and energy cost
increases. These will also be addressed in the full
Finance Committee.
The Subcommittee accepted the administration's
requested decrement of $162,000 for three temporary
positions in the file imaging program, to be replaced
by a one-time increment of $180,000 for three full
time positions.
The Subcommittee accepted the administration's request
for $235,400 to establish two positions to oversee the
design and construction of the new Mat-su prison
facility. Having the superintendent and plant manager
on staff before construction will help ensure the
facility is well-managed, and built to meet the
program needs of the state.
The Subcommittee accepted the second year increments
contained in the fiscal note to SB 218, enacted by the
24th Legislature. Increments in two components total
$786,800, and will increase the department's ability
to conduct polygraph monitoring of sex offenders, and
will ramp up to full implementation with a further
increment in FY 2009.
The Subcommittee replaced $46,000 in Mental Health
Trust funds for the Residential Substance Abuse
Treatment program, and $25,000 in Mental Health Trust
funds for the Sub-Acute Medical Unit at Spring Creek
Correctional Center with general funds.
The Subcommittee approved the administration's request
for $881,100 to increase electronic monitoring. This
amount includes increased contract expenses for
monitoring equipment and services as well as a
facilities rent component for the Corrections staff
directly responsible for supervising offenders with
ankle bracelets.
The Subcommittee accepted the administration's request
for an increment of $100,100 to relocate the Palmer
probation & parole office into the new Criminal
Justice Center in Palmer.
The Subcommittee accepted the governor's amended
request for changes in Arizona contract prison
contract. The net effect of the governor's proposal is
to maintain the number of Arizona beds at 900, and
increase the bed rate in accordance with the contract,
for a net increment of $432,200.
The Subcommittee approved the administration's
decrement of $1,000,000 and three permanent full time
positions in connection with the prison employment
program.
The Subcommittee also approved replacing $68,800 in
uncollectible receipts for federal prisoners with
general funds.
In acknowledgement of the added strain on facilities
caused by reducing out-of-state prisoner populations,
the Subcommittee approves a total increment of
$939,900 in commodities for 24-hour facilities, spread
according to the administration's proposal. The
Subcommittee did not approve the request for $250,200
in the institutions director's office. The department
should carefully monitor and control the added costs
of crowded facilities. If it is unable to operate
without this funding, the department should return
with a supplemental request based on actual costs.
The Subcommittee approved the governor's amended
request for a total increment of $168,000 for the new
water and sewer system at Hiland Mountain Correctional
Center.
The Subcommittee approved an increment of $1,225,500
to fund 19 new positions at Fairbanks Correctional
Center to address dangerously overcrowded conditions
and maintain security and programming as the
department adapts the former Correctional Industries
building on the FCC campus for inmate housing.
The Subcommittee granted the administration's request
for funding to erect temporary housing units at both
Lemon Creek and Palmer Correctional Centers. The
Subcommittee split the start-up costs associated with
these increments from the ongoing costs of operations,
funding $619,700 in ongoing costs as part of the
department's base, but $295,500 as one-time items.
The Subcommittee allowed two decrements in the
Probation and Parole office to remove uncollectible
funds from an expired RSA in the amount of $128,400
and a federal grant that is no longer available in the
amount of $777,400.
The Subcommittee accepted the second year increment
contained in the fiscal note to SB 237, enacted by the
24th Legislature, which added new judges around the
state. The $275,400 funds three permanent full time
positions, dedicated primarily to pre-sentence
investigations and reports.
The Subcommittee approved an increment of $125,000 for
increased workload at the Parole Board. This funding
is an important part of the department's laudable
efforts to better manage its inmate population in
state.
The Subcommittee accepted two increments for increased
funding to pay health care providers following a
market-based pay study by the Department of
Administration. These increments total $777,400.
The Subcommittee allowed an increase of $57,100 in
receipt supported services authorization for inmate
health care co-pays. This increment brings RSS inline
with the department's actual expectation of what it
will collect, based on past experience.
The Subcommittee did not approve the administration's
authorization in the language section for open-ended
expenditure authority on inmate health care. The
Subcommittee instead granted an increment of
$1,900,000 based on Legislative Finance Division
estimates of growth in inmate health care costs.
The Subcommittee approved a fund-source change of
$1,619,900 from General Funds to offenders' Permanent
Fund Dividend checks collected by the state.
The Subcommittee also approved two increments for
Community Residential Centers. $1,000,000 funds
contract rate increases, while $2,520,700 will pay for
an additional 100 beds.
Items of Concern
The Subcommittee is concerned that Alaska's
correctional system has become a warehouse with a
revolving door on the front. Even with a captive
audience, little is done to get inmates off drugs,
break their addictions to alcohol, keep sex criminals
from reoffending, treat mental illness, or build
skills to reintegrate them into Alaska communities.
The Department of Corrections must take the lead in
addressing these issues. To that end, the Subcommittee
included intent language from the House of
Representatives directing the department to work on
inmate rehabilitation in the fiscal year 2008, and to
identify and seek authorization to spend additional
funds.
The Subcommittee also added intent language as
follows:
"It is the intent of the legislature that the
Department of Corrections work collaboratively with
the Alaska Mental Health Trust Authority and the
Department of Health and Social Services in the
development and sustainable implementation of new and
existing treatment services and programs to serve
Trust beneficiaries and other inmates, as well as
programs that connect inmates to treatment services
and programs outside Corrections, including
therapeutic courts; Assess, Plan Identify, Coordinate
Discharge program; Residential Substance Abuse
Treatment programs; and planning for mental health and
treatment services within new correctional facilities,
among others. The goals of this work include reducing
recidivism, improving public safety, increasing the
safety of correctional officers, reintegrating
offenders into society, and reducing costs to the
state."
Senator Elton highlighted this budget proposal, noting that the
subcommittee recommendation was $30,000 greater than the House
of Representations version for increases in the Parole Board
workload.
9:37:39 AM
Department of Environmental Conservation
Subcommittee members: Senator Elton, Senator Ellis, Senator
Wilken.
The Senate Finance Subcommittee for the Department of
Environmental Conservation submits an Operating budget to
the full Senate Finance Committee for FY 08 as follows:
06 Actual: $54,137,400
08 Adj Base: $67,074,500
Gov Amend: $75,832,900
Senate Subcommittee: $71,426,700
General Funds: $16,746,900
Fed Funds: $21,146,400
Other Funds: $33,533,400
Total: $71,426,700
Position Changes
PFT
FY 08 Adjusted Base: 511
FY 08: 509
PPT
FY 08 Adjusted Base: 1
FY 08: 1
Temp
FY 08 Adjusted Base: 4
FY 08: 4
Budget Action
The Subcommittee accepted the department's FY 08
adjusted base, and the changes outlined in this memo
are based upon that funding level.
The Subcommittee removed PERS fund source changes.
These will be addressed in the full Finance Committee.
The Subcommittee also removed fuel cost increases.
These, too, will be addressed in the full Finance
Committee.
The Subcommittee approved the governor's amended
request to annualize an RPL putting an additional
$38,900 in Exxon Valdez Oil Spill Trust receipts into
the commissioner's office.
The Subcommittee approved the governor's dramatically
amended increments for compliance oversight of North
Slope oil flow lines. These increments net to $707,000
in general funds instead of $2,237,700.
The Subcommittee allowed a net increase of $152,400 in
general funds for increased lease costs around the
state.
The Subcommittee accepted eight increments for
increased funding to pay DEC professional employees
following a market-based pay study by the Department
of Administration. These increments total to $503,300.
The Subcommittee added an increment of $80,000 in
general funds for paralytic shellfish poisoning
testing required by the state. These funds will help a
growing industry continue to provide jobs to Alaska
families and seafood for export to both domestic and
international markets.
The Subcommittee granted the governor's for $605,900
to maintain the drinking water permit primacy Alaska
has administered for many years. Half these dollars
are federal, and half are general fund match.
The Subcommittee approved the decrement of $6,400 in
the Solid Waste Program as part of the ongoing fiscal
note implementation for HB 19, enacted by the 24th
Legislature.
The Subcommittee approved an increment of $1,069,000
for implementation of air permit reforms and fees
adjustment. $978,100 of this increment comes from the
Clean Air Protection fund, while $90,900 is receipt
supported services.
The Subcommittee approved replacing $92,500 in federal
funds for the operator certification program with
general funds.
The Subcommittee granted an increment of $2,500,000
and two positions for implementation of the Ocean
Ranger program, enacted by the voters in the August
2006 primary election. This funds option one in the
department's contractor report on the program. This
level of funding should be adequate on a yearly basis
to fund one contract Ocean Ranger per cruise ship
throughout the fiscal year. The Subcommittee added
intent language stating: "It is the intent of the
legislature that the Department of Environmental
Conservation implement the Ocean Ranger program
enacted by the people of the State of Alaska. It is
also the intent of the legislature that the Department
of Environmental Conservation pay no more than the
lowest commercially available berth rate for Ocean
Rangers aboard commercial passenger vessels."
The Subcommittee replaced $1,000,000 in general funds
for operation of the DEC lab with Commercial Passenger
Vessel Environmental Compliance (CPVEC) funds. The DEC
lab tests for food borne outbreaks of Norwalk and
Norwalk-like illnesses, shares responsibility for food
safety in the Alaska restaurants where cruise ship
passengers and crews eat, and has significant duties
in the licensure of processing facilities in Alaska.
As cruise companies begin to make an effort at buying
Alaska seafood for their passengers, this function
will become more important to the industry, and it is
reasonable that a portion of CPVEC fees go to
supporting the lab's operations. The DEC lab is also
capable of testing discharge samples from cruise
vessels in the event one of the current contract labs
is temporarily unable to receive or test samples.
The Subcommittee decremented $1,547,900 to eliminate
funding for state assumption of National Pollutant
Discharge Elimination System (NPDES) primacy. The
state does not have NPDES primacy, and statutory
changes will be required if the state chooses to take
on the burden of enforcing federal rules. With this
decrement, the federal government will pay all costs
associated with this permitting system. Unlike
drinking water primacy, the federal government has not
and will not share in the ongoing costs to the state
of pursuing or implementing primacy, even though
federal rules set the standards 'floor'. Also, unlike
air quality permitting, regulated industries would not
support NPDES primacy through fees. The Subcommittee
eliminates the attendant 13 positions.
The Subcommittee is concerned that the Oil and
Hazardous Substance Release Prevention and Response
Fund is depleting. The Subcommittee added intent
language stating: "It is the intent of the legislature
that the Department of Environmental Conservation
recover from responsible state agencies or entities
the costs accrued responding to or cleaning up oil and
hazardous substance spills caused by those state
agencies or entities."
The Subcommittee added a one-time increment in the
commissioner's office of $250,000 in federal funds for
contractual expenses. These funds are available from
the United States Department of Agriculture Rural
Development programs. This provides receipt authority
to hire a contractor to provide the planning and
accountability documents needed for the federal
government to release more than $100 million in
Village Safe Water funds. Some of this funding remains
outstanding from Federal Fiscal Year 2000 and must be
used at the earliest possible opportunity to improve
basic sanitation for Alaskans. These funds are
appropriated to the Office of the Commissioner in
order to provide clear accountability for the work.
Items of Concern
The Subcommittee is concerned at the extent and nature
of the problems the department is experiencing with
its Anchorage laboratory. While issues like non-
functioning fume hoods and propylene glycol leaks may
have been resolved, properly constructed two-year-old
buildings should not experience frequent condensation
on the windows, billowing roof membranes, or faulty
boiler and air conditioning systems. The department is
encouraged to pursue all options including legal
action to make this state asset whole.
Senator Elton outlined this report, highlighting funding for the
Ocean Ranger contained in the recommendation, as well as the
"lack of primacy" in the National Pollutant Discharge
Elimination System (NPDES). He further explained that the
increment of $250,000 federal dollars suggested for the
commissioner's office was intended to be used to resolve
discrepancies between the State Department of Environmental
Conservation and the United States Department of Agriculture
(USDA) regarding grant oversight. Without this oversight, the
USDA threatened to discontinue approximately $23 million in
funding for the Village Safe Water project.
9:41:17 AM
Department of Commerce, Community and Economic Development
Subcommittee members: Senator Thomas, Senator Green,
Senator Cowdery, Senator Wilken.
The Senate Finance Subcommittee for the Department of
Commerce, Community and Economic Development submits an
Operating budget to the full Senate Finance Committee for
FY 08 as follows:
General Funds
06 Actual: 14,518,300
08 Adj Base: 5,704,700
Gov Amend: 53,948,300
Sen. Sub: 54,005,800
Fed Funds
06 Actual: 22,913,100
08 Adj Base: 28,433,500
Gov Amend: 27,536,700
Sen. Sub: 50,266,300
Other Funds
06 Actual: 95,932,300
08 Adj Base: 124,387,200
Gov Amend: 128,524,500
Sen. Sub: 100,880,600
Total
06 Actual: 133,363,700
08 Adj Base: 158,525,400
Gov Amend: 210,009,500
Sen. Sub: 205,452,700
Position Changes
FT
FY 07: 511
FY 08: 505
TEMP
FY 07: 2
FY 08: 1
PPT
FY 07: 3
FY 08: 3
Budget Action
Adopted the FY08 Adjusted Base with the following
significant items:
· Because the PERS rate is being reduced from 44%
to 22%, the House's budget removed the general
funds in the salary adjustments. However, due to
time constraints, most of the "other" fund
sources remained in the budget. The Senate
Subcommittee reduced "other" funds because the
agency no longer needs to pay increased PERS
costs.
· Accepted the Governor's $48.1 million general
fund request for Local Government Support.
· Removed $500,000 (of the $1 million total)
general funds from Alaska Seafood Marketing
Institute.
· Added Bering Sea Fisherman's Association grant
for $500,000 of general funds.
· Added $300,000 general funds increment for Alaska
Legal Services.
· Fully funded the PCE program using the statutory
funding method (i.e., removing 7% of the PCE
Endowment vs. the Governor's Amended budget
removing the full amount from the PCE Endowment).
· Added $399,100 of non-general funds to QTA
Independent Traveler Grants.
Senator Thomas spoke to this budget proposal, commenting that
the general funds included for the Bering Sea Fishermen's
Association would replace federal funding that was no longer
available.
9:43:48 AM
Department of Labor and Workforce Development
Senator Thomas, Senator Davis, Senator Bunde.
The Senate Finance Subcommittee for the Department of Labor
and Workforce Development submits an Operating budget to
the full Senate Finance Committee for FY 08 as follows:
General Funds
06 Actual: 16,018,500
08 Adj Base: 20,987,500
Gov Amend: 28,797,100
Sen. Sub: 23,054,100
Fed Funds
06 Actual: 79,278,800
08 Adj Base: 104,688,800
Gov Amend: 86,256,200
Sen. Sub: 90,788,600
Other Funds
06 Actual: 44,927,200
08 Adj Base: 54,612,700
Gov Amend: 52,842,000
Sen. Sub: 52,860,600
Total
06 Actual: 140,224,500
08 Adj Base: 180,289,000
Gov Amend: 167,895,300
Sen. Sub: 166,703,300
Position changes
FT
FY 07: 906
FY08: 844
TEMP
FY 07: 23
FY08: 7
PPT
FY 07: 108
FY08: 108
Budget Action
Adopted the FY08 Adjusted Base with the following
changes:
Because the PERS rate is being reduced from 44% to
22%, the House's budget removed the general funds in
the salary adjustments. However, due to time
constraints, most of the "other" fund sources remained
in the budget. The Senate Subcommittee reduced "other"
funds because the agency no longer needs to pay
increased PERS costs.
Office of Citizenship Assistance line item adjustment
from personal services to contractual to achieve the
goal in the intent language.
Occupational Safety and Health
Denied two positions, but provided the funding for a
youth safety and health program and seafood processing
safety program.
Alaska Vocational Technical Center
Fund source adjustment for TRS increase 1,900 GF
Special Projects
Rural Outreach Grant for the Alaska Center for the
Blind and Visually Impaired 110,000 (GF)
Senator Thomas reviewed this report, noting that the reduction
in positions was due primarily to a "clearing out" of vacant
positions.
9:46:15 AM
Senator Elton remarked that the decision to deny $190,000
requested to pay for juror parking in Anchorage "difficult", but
pointed out that all other municipal governments provide free
parking for jurors.
9:47:10 AM
Co-Chair Hoffman summarized that the overall reduction in
positions was an indication of containment of governmental
growth. He recalled reports from the Division of Legislative
Finance that the State would likely face a deficit by 2009. The
State had initially anticipated $940 million from a "true-up"
related to the Petroleum Production Tax (PPT), but that figure
had been reduced by approximately $140 million, which
contributed to the probability of a deficit in the near future.
Co-Chair Hoffman continued that the State must "live within its
means" while providing necessary services to Alaskans. He
stated, "It does not make sense to me to add positions to the
budget today, and tomorrow have to eliminate them."
9:49:26 AM
Co-Chair Hoffman asked for an explanation of the language
section of the budget.
AT EASE 9:50:48 AM/9:51:19 AM
DAVID TEAL, Director, Division of Legislative Finance,
identified six changes from the House of Representatives version
of the bill. He testified that the first language change was
located in Section 13 of the bill on page 57, line 23. This was
a change within the Department of Education and Early
Development that removed $24 million for implementation of the
District Cost Factor increases. He anticipated a forthcoming
appropriation bill relating to education would address these
costs, and therefore funding in the operating budget was
unnecessary.
Co-Chair Hoffman commented that the $11 million allocated for
learning opportunity grants (LOGS) would likely also be removed
and addressed in an "education bill" at a later date.
Mr. Teal spoke to a deletion of funding within the Department of
Environmental Conservation in the amount of $80,000 for
Paralytic Shellfish Poisoning (PSP) testing. In Section 1 of the
current committee substitute, the subcommittee recommended the
funding be included as general funds.
9:53:06 AM
Mr. Teal referred to a deletion in the Department of Public
Safety of $1.4 million in general funds for the Narcotics Task
Force. That deletion was due to the absence of federal funding.
Mr. Teal located the deletion of reference to the Alaska
Retirement Management Board in Section 19, at the recommendation
of the Department of Revenue subcommittee. The $25 million
appropriation was to be paid directly to oil companies for tax
refunds.
9:54:13 AM
Mr. Teal informed that the change in Section 23 (c) related to
Power Cost Equalization (PCE). The previous version of this bill
contained a $25 million appropriation for PCE, sourced entirely
from the PCE endowment. The current Senate Finance Committee
substitute changed the funding scheme to direct 7 percent of the
endowment to PCE, and funded the remaining $13 million with
general funds.
9:55:00 AM
Mr. Teal set forth that there were no language changes to the
mental health appropriation bill, HB 96. He explained that the
changes to that bill would be made in the Capital budget. As had
been "traditional" practice, the House of Representatives
deleted one project in its version of the bill, and the Senate
deleted all but that project, making all portions of that bill
subject to conference between the two bodies.
AT EASE 9:55:48 AM/9:56:36 AM
Co-Chair Hoffman asked regarding the retirement system funding
changes in the operating budget.
Mr. Teal informed that the Senate Finance Committee Substitute
included all the changes the House of Representatives had made
to the Governor's requested budget. The Senate Finance committee
substitute also provided for additional reductions in funding,
with the intent of reducing the State's contribution to
retirement costs to 22 percent. The House Finance Committee
reduced the amount of general fund dollars allocated, but did
not reduce federal or other funds. The Senate committee
substitute contained approximately $38 million in reductions of
other funds, as those monies were not required for payment of
retirement and benefits. Transaction reports prepared by the
Division were incorporated into the bill.
9:58:39 AM
Co-Chair Hoffman explained that subcommittee reports would be
adopted and made available on the Internet prior to commencement
of public testimony.
9:59:46 AM
Co-Chair Stedman moved to adopt SCS CSHB 95, 25-GH1013\T, as a
working document.
10:00:09 AM
There was no objection, and committee substitute Version "T" was
ADOPTED.
10:00:16 AM
Co-Chair Stedman moved to adopt SCS CSHB 96, 25-GH1015\K, as a
working document.
10:00:33 AM
There was no objection, and committee substitute Version "K" was
ADOPTED.
ADJOURNMENT
Co-Chair Lyman Hoffman adjourned the meeting at 10:01:24 AM
| Document Name | Date/Time | Subjects |
|---|