Legislature(2007 - 2008)SENATE FINANCE 532
03/03/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB229 | |
| SB256 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 229 | TELECONFERENCED | |
| += | SB 256 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 256
"An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; amending certain appropriations;
ratifying certain expenditures; making appropriations
to capitalize funds; and providing for an effective
date."
Co-Chair Hoffman reconvened the meeting back to order to
address the CS 256/O before the committee.
TIM GRUSSENDORF, STAFF, SENATE FINANCE COMMITTEE, presented
an overview of changes to the FY 08 Supplemental requests.
He indicated that the first four changes came at the request
of the Governor.
Section 1-3 AA GGU Labor and Workforce Development
Occupational Safety and Health
Reverse the fund source change for this
component in the GGU supplemental, sections 1
-3. Current projections indicate that the
program will be able to absorb the increase
without the fund source change due to
unexpected vacancies.
$0.0
Section 1-3 AA GGU Transportation Central
Region Highways and Aviation
Reverse the fund source change for this
component in the GGU supplemental, sections 1
- 3. Current revenue projections for FY08 are
sufficient to fund $300 in this allocation.
$0.0
Section 1-3 AA GGU Transportation Northern
Region Highways and Aviation
Reverse the fund source change for this
component in the GGU supplemental, sections 1
- 3. This fund source conversion is no longer
needed in FY08 due to position vacancies.
$0.0
Mr. Grussendorf reported that the above three can absorb
these increases, without the fund source change, due to
unexpected vacancies.
Section 1-3 AA Statewide SU Supervisory Unit
The tentative Supervisory Unit agreement
calls for a wage increase of 5.5% and a
health insurance increase of $16 from $835
per month to $851 per month.
$10,441.0
Mr. Grussendorf explained that $6.3 million has been added
in and is expected to be ratified on March 12, 2008. There
is language in Section 1 that says if the agreement is not
ratified on March 12, this funding will not be there.
Section Commerce Revenue Sharing
New 2/29
$180 million for revenue sharing
$180,000.0
Mr. Grussendorf noted that there has been an addition of $30
million, from $150 million to $180 million.
Section Fund Capitalization
New 2/29 Statutory Budget Reserve
Appropriate $1 billion of the FY08 surplus to
the Statutory Budget Reserve
$1,000,000.0
Section Fund Capitalization
New 2/29 Constitutional Budget Reserve
Appropriate $2.6 billion of the FY08 surplus
to the CBR
$2,6000,000.0
Section Fund Capitalization
New 3/2 CBR Intent Language
It is the intent of the legislature that the
Department of Revenue invest the assets of
the constitutional budget reserve fund (art.
IX, sec. 17, Constitution of the State of
Alaska), in a manner maximizing the long term
earnings of the fund while meeting the
minimum liquidity requirements of the state.
$0.0
Section Fund Capitalization
New 3/2 CBR Intent Language
Add CBR Intent language clarifying that the
CBR deposit is a repayment to the CBR.
$0.0
Mr. Grussendorf commented that the two Fund Capitalizations
added CBR intent language that made it clear that the
legislature wanted to invest this money and it is a
repayment to the CBR by the Legislature, repaying half of
the states debt.
Section 14(b) Health and Social Services
Front Line Social Workers
Unanticipated one-time telephone purchase and
installation costs related to new Anchorage
lease. Move is planned for early March, 2008.
$320.6
Section 7-9 Health and Social Services
Behavioral Health Medicaid Services
Projected excess authorization based on
expenditures through January 2008.
($6,963.1)
Section 7-9 Health and Social Services
Medicaid Services
Projected excess authorization based on
expenditures through January 2008.
($46,548.5)
Section 7-9 Health and Social Services
Adult Public Assistance
Projected excess authorization due to
decrease in average payments since recipients
have higher incomes.
($700.0)
Section 7-9 Health and Social Services Senior and
Disabilities Medicaid Services
Projected excess authorization based on
expenditures through January 2008.
($1,654.4)
Mr. Grussendorf noted that the Health and Social Services
reductions made by the Governor were projected excess
authorization based on expenditures through January 2008.
The legislature agreed to take on these reductions.
Section 7-9 Law
Oil, Gas and Mining
This amendment reduces the original
supplemental request for from $1,750,000 to
$1,250,000. The Department of Natural
Resources contract for financial analysis of
the TransCanada proposal came in less than
anticipated, at $2.5 million rather than $3.0
million.
($500.0)
Mr. Grussendorf indicated that the Department of Law and the
Governor submitted this reduction of $500,000 and the
Legislature agreed to make the deduction
Section 7-9 Public Safety
Modified AST Detachments
Increased trooper move costs $425.0, dispatch
contracts with Kodiak and Wasilla (MatCom)
$420.3, lease costs $60.6, fuel/utility costs
$236.2, vehicle costs $610.9, and facilities
maintenance costs $25.5. FY09 increments are:
trooper move travel $425.0; lease $60.6;
fuel/utility $164.9; and vehicle $113.9.
Removed lease and maintenance costs increases
from supplemental request--Total reduction is
$86.1.
$1,692.4
Section 7-9 Public Safety
Modified Alaska Wildlife Troopers
Increased fuel/utility $70.8, vehicle $288.6
and facilities maintenance $17.1 costs. FY09
increments are: fuel/utility $38.6; vehicle
$145.3.
Removed facilities maintenance costs
increases from supplemental request--Total
reduction is $17.1.
$359.4
10:56:03 AM
Section 7-9 Public Safety
Modified AK Wildlife Troopers Aircraft Enforcement
Increased fuel/utility $95.2 and lease $80.2.
FY09 increments are: fuel/utility $151.1 and
lease,$80.2.
Removed lease costs increases from
supplemental request--Total reduction is
$80.2
$95.2
Section 7-9 Public Safety
AK Wildlife Troopers Marine Enforcement
Increased fuel/utility costs. FY09 increment
is $66.0.
$41.6
Section 7-9 Public Safety
Training Academy
Increased fuel/utility $5.2 and vehicle $11.6
costs. FY09 increment for fuel/utility costs
is $8.2.
$16.8
Section 7-9 Public Safety
Administrative Services
Increased fuel/utility $2.6, lease $9.2, and
vehicle $2.2 costs. FY09 increment is $9.2
for office lease costs.
Removed lease costs increases from
supplemental request--Total reduction is $9.2
$4.8
Section 7-9 Public Safety
Laboratory Services
Increased fuel/utility $15.5 and vehicle $8.9
costs. FY09 increments are: fuel/utility
$21.0 and vehicle $4.3.
$24.4
Section 7-9 Public Safety
Fire Service Training
Increased fuel/utility $8.3 and vehicle $9.4
costs. FY09 fuel/utility cost increment is
$9.6.
$17.7
Section 7-9 Public Safety
Fire Prevention Operations
RSS shortfall from building plan review fees.
Division would like to make this into a
straight GF operation since revenues vary
drastically. Included in the FY09 budget at
the same level of $220.0 Additional travel of
$50.0 for building life safety inspections
and to provide inspections in rural
locations. Funded in FY09 at $105.0.
Increased fuel/utility $8.3 and vehicle $4.8
costs. FY09 fuel/utility cost increment is
$4.5.
Removed funding replacing RSS shortfall from
building plan review fees--Total reduction is
$268.2
$13.1
Section 7-9 Public Safety
Rural Trooper Housing
Rural housing costs of $244.2 due to
unrealized SDPR including leases without rent
contribution at Selawik and for Bethel
commons. Increased fuel and utility costs of
$92.7. FY09 fuel/utility cost increment is
$147.1.
$92.7
Section 7-9 Public Safety
Alcoholic Beverage Control Board
Increased vehicle costs. FY09 increment is
$1.9.
$4.3
Mr. Grussendorf commented that in the Public Safety
Department, the supplementals were modified to increase in
fuel/utility increment amounts, but removed many other
funding requests.
Section 7-9 Public Safety
Judicial Services - Anchorage
Amendment reduces amount of supplemental
request from $620.3 to $477.6 since the Court
Service Officer positions won't be filled
until March.
($142.7)
Mr. Grussendorf indicated that the General Fund was reduced
by the request of the Governor.
Section 15(j) Transportation
Surface Transportation Program
Correct the total for Sec. 1, Ch. 61, SLA
2001, Page 35, line 19 from $485,506,000 to
$485,506,482 based on the allocation
requested in HB343, Sec. 15(k).
$0.5
Mr. Grussendorf explained the change was due to a technical
error, based on the allocation in HB343.
10:59:26 AM
Section Transportation
New 3/3 Capital
Restored Vetoed Capital Projects
$1,471.6
Mr. Grussendorf explained that the legislature was removing
the $50 million place-holder and inserted the vetoed capital
projects for $51, 479,000. The projects are in the new CS.
Section Transportation
Airport Improvement Program - Appropriation
The FY08 Airport Improvement Program
appropriation increases by $4,350.0 due to
the allocation change below: Sec 4, Ch 30,
SLA 2007, Pg 105, Ln 27
$0.0
Section Transportation
Airport Improvement Program - Allocation
New: Petersburg: Airport Runway Safety Area
The project is expected to be advertised in
April. The project will involve runway work
that will result in the airport being closed
for a few weeks and the timing for this work
is critical to minimize the impact of the
construction closure on the community and the
airlines. Funding this project in the
supplemental will enable the department to
move forward as soon as Airport Improvement
Program discretionary funds are available.
$0.0
Mr. Grussendorf commented that the Governor requested to
have this in the fast track due to timing for the Petersburg
airport runway and safety areas.
Co-Chair Stedman MOVED to ADOPT Committee Substitute SC
256(FIN)\O as the working document before this committee.
There being NO OBJECTION, work draft CSSB 256(FIN)\O was
adopted.
AT EASE: 11:00:36 AM
RECONVENED: 11:01:23 AM
Co-Chair Stedman MOVED to ADOPT Amendment #1:
Page 77, lines 8-12:
Delete all material
Page 77, line 13:
Re-letter subsection "(c)", subsection "(b)"
Page 77, following line 24:
Insert a new bill section to read:
"*Sec. 18. DEPARTMENT OF REVENUE. The amount
necessary to pay the first five ports of call
their share of the tax collected under AS
43.52.220 during calendar year 2007 is
appropriated from the commercial vessel passenger
tax account (AS 43.52.230(a)) to the Department of
Revenue for payments under the provisions as AS
43.52.230(b), during the fiscal year ending June
30, 2008."
Co-Chair Hoffman OBJECTED for discussion purposes.
Co-Chair Stedman explained that Amendment #1 was a technical
change due to the fact that the Commercial Vessel Passenger
Tax account is not under the Department of Environmental
Conservation but collected by the Department of Revenue. He
continued that the Port of Call payments are made by the
Department of Revenue not the Department of Environmental
Conservation.
Co-Chair Hoffman WITHDREW his OBJECTION.
Senator Olson asked for the names of five ports listed on
page 77, Section 16, line 8.
Co-Chair Stedman listed the ports as Ketchikan, Juneau,
Skagway, Sitka and other major ports.
There being no further OBJECTION Amendment #1 was ADOPTED.
11:03:20 AM
Senator Thomas explained the changes to Amendment #2. The
amendment changes page 83, line 3, removing $5 million and
inserting $25 million. This would even-up the situation with
the hatcheries, making an opportunity for a long-term fix.
Co-Chair Hoffman MOVED to ADOPT Amendment #2:
Page 83m Line 3
Delete $5,000,000
Insert: $25,000,000
There being NO OBJECTION, it was so ordered.
Senator Dyson MOVED to ADOPT Amendment #3:
Delete Line 28, Page 56 through Line 2, Page 57.
Co-Chair Hoffman OBJECTED for discussion purposes.
Senator Dyson believed that Line 28 on page 56 through Line
2 on Page 57 be deleted as it is more appropriate in the
capital budget but not the supplemental budget.
Co-Chair Hoffman MAINTAINED his OBJECTION.
Co-Chair Hoffman believed that the $300 million will address
about eighty percent of the homes in the State of Alaska. He
anticipated that it will cover approximately forty-five
thousand homes eligible for this program. He stressed that
it did not make sense to have the amount of savings,
estimated at $2.6 billion, and not address the energy needs
of Alaskans.
Co-Chair Stedman remarked that there is actually $3.6
billion available along with another possible $1.5 to $2
billion in revenue to be collected between January and June,
2008, due to the price of oil. He agreed that if there was
this substantial amount to be put into savings, then
aggressive steps should be taken to lower the energy demands
throughout the state. Senator Dyson believed that although
he agreed with the idea of supplementing the energy needs,
he thought it would be inappropriate to put it into the
supplemental budget.
A roll call vote was taken on the motion.
IN FAVOR: Dyson
OPPOSED: Elton, Huggins, Olson, Thomas, Hoffman, Stedman
The MOTION FAILED (1-6).
Senator Dyson MOVED to ADOPT Amendment #4.
Page 51
Delete Lines 7 through 11.
Page 52
Delete Lines 15 through 17
Page 52, Amend Line 21 as follows:
*****Total Budget***** $1,096,330 [$51,096,330]
Page 53, Amend Lines 5 & 6 as follows:
1004 Unrestricted General Fund Receipts
$68,929,700[118,929,700]
***Total General Funds*** $18,929,700[$118,929,700]
Co-Chair Hoffman OBJECTED for discussion purposes.
Senator Dyson reiterated his previous argument that he
approved all the appropriations made in the capital budget
but he did not believe the included items belonged in the
supplemental budget. He commented that this was a betrayal
of the public process.
Co-Chair Hoffman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Dyson
OPPOSED: Elton, Huggins, Olson, Thomas, Hoffman, Stedman
The MOTION FAILED (1-6).
Karen Rehfeld, Director, Office of Management and Budget
thanked the committee for their consideration of the
amendments and looked forward to continuing to work through
the process.
11:10:46 AM
Co-Chair Stedman MOVED to REPORT SB 256 out of Committee
with individual recommendations and the accompanying fiscal
note.
Senator Dyson OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Elton, Huggins, Olson, Thomas, Hoffman, Stedman
OPPOSED: Dyson
The MOTION PASSED (6-1).
CSSB 256 (FIN) was REPORTED out of Committee with the
accompanying fiscal note and individual recommendations.
AT EASE: 11:11:34 AM
RECONVENED: 11:11:47 AM
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