Legislature(2011 - 2012)SENATE FINANCE 532
02/21/2011 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB46 || SB47 || SB48 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 46 | TELECONFERENCED | |
| += | SB 47 | TELECONFERENCED | |
| += | SB 48 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE BILL NO. 46
"An Act making and amending appropriations, including
capital appropriations and other appropriations;
making appropriations to capitalize funds; and
providing for an effective date."
SB 46 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 47
"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."
SB 47 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 48
"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."
SB 48 was HEARD and HELD in committee for further
consideration.
9:02:13 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, announced that she would be using
the amended fiscal summary, and the amendment spreadsheets
(copy on file). She stated that she would occasionally
refer to the supplemental budget, SB 76.
Ms. Rehfeld stated that the FY 12 budget amendments totaled
$148.8 million, of which $15.4 million was unrestricted
general fund. She declared that the budget included $31.8
million for agency operating non-formula amendments, and $4
million for operating agency formula amendments; with
$112.9 million in capital budget amendments. She announced
that the updated fiscal summary included lines that
displayed amendments since December 15, 2010.
Ms. Rehfeld discussed the operating budget amendments. She
stressed that there were three categories for the operating
budget amendments: some were based on the supplemental
requests, some were technical adjustments or corrections,
and some were new items that were reconsidered since the
budget was drafted.
Ms. Rehfeld highlighted some major amendments in the
operating budget. She discussed line 1 of the spreadsheet:
costs associated with mail carrier charges from the
Department of Administration (DOA), and stated it was a new
request for $60 million. She remarked that most of the
other items for DOA were technical, and were mostly
interagency receipts. She stated that lines 6 and 7 were
specific to the Alaska Oil and Gas Conservation Commission.
She remarked that line 8 was a correction for the Qualified
Trade Association Contract, and the fund source was changed
from ports and harbors to the unrestricted general fund.
She reported that lines 11 through 15 were specific to the
Department of Corrections (DOC), and mirrored the
supplemental bill.
9:08:26 AM
Co-Chair Hoffman remarked that $8.8 million was
substantial, and wondered how it was overlooked. Ms.
Rehfeld replied that the Office of Management and Budget
(OMB) had not originally considered the cost of overtime.
She stressed that inmate health costs were also considered
in the supplemental budget.
Co-Chair Hoffman pointed to line 12, and wondered if the
consideration was short term. Ms. Rehfeld responded that
the DOC was advised to evaluate its personnel.
Co-Chair Hoffman wondered when the DOC personnel analysis
would be incorporated into the FY 12 operating budget. Ms.
Rehfeld replied that if the analysis was available before
the deadline of the operating budget, it would be
incorporated.
Ms. Rehfeld referred to lines 20 and 21, and stated that
the amendments related to the Bering Sea crab and
management activities. She remarked that $400,000 was
requested from test fisheries receipts, and announced that
in years prior a federal earmark had been requested for the
program.
Co-Chair Hoffman wondered if there were previous federal
earmarks that were currently requested in the state budget.
Ms. Rehfeld replied that in the two years prior, earmark
requests had significantly reduced.
Ms. Rehfeld continued with line 23, and specified that the
funds would be used for research in labeling endangered
species listings.
9:13:32 AM
Ms. Rehfeld discussed Health and Social Services
amendments, and remarked that many were budget
restructuring adjustments. She referred to line 26, and
remarked that there was a $935,000 request for front line
social workers. This funding would target the significant
case load in Wasilla. She discussed lines 30 through 33,
and stated that those funds were because of restructuring
and combining components. She pointed to line 34, and
remarked that it was the amount necessary for the senior
benefits program in FY 12: totaling $22.4 million. She
stressed that $1.968 million would be necessary for full
funding of the senior benefits program. She discussed line
35, and stated that the amendment was for the Public
Assistance/Energy Assistance Program. She pointed to line
38, which would continue the Student Loan Repayment
Program; this funding would allow 16 to 22 health care
practitioners to receive support for their student loans
based on their residency a high need area. She referred to
lines 39 and 40, and stated that those amendments were
based on re-structuring. She pointed to line 41, and stated
that there were three grantees in the state that were
providing public health services: Anchorage, Maniilaq, and
the North Slope Borough. She stressed that requested $1
million would help to stabilize funding for public health
nursing grantees. She pointed to line 42, and stated that
that funding would enhance the personal services for the
public nursing programs around the state. She looked at
line 44, and stated that the Corrective Action Plan (CAP)
would require an additional $250,000. She pointed to lines
45 through 49, which were technical adjustments to Medicaid
growth.
9:20:21 AM
Ms. Rehfeld looked at lines 51 and 52 under the Alaska
Vocational Technology Center, and stated that two training
grants were not known when the December budget was drafted.
She stressed that the funding would allow for distance
education training and medical coding/billing training. She
pointed to lines 53 through 55, which specifically focused
on Department of Law needs. She looked at line 59, and
stated that the Veterans Affairs Office was moving off base
providing additional service for veterans. She discussed
lines 60 through 64 that referred to amendments under the
Department of Natural Resources (DNR), and she remarked
that DNR was facing some permitting issues that required
further funding relating to mining, land, and water.
Co-Chair Stedman looked at line 62, and commented that
there had been a potential permit back log, and he wondered
what the expectation was to alleviate the backlog. Ms.
Rehfeld replied that DNR had plans to improve the
permitting process, and stated that there was a concern
about filling positions.
Co-Chair Stedman requested that the committee develop a
methodology related to addressing permit and application
backlog issues. Co-Chair Hoffman agreed, and wondered if
the backlog issue had to do with DNR taking on other
departments' responsibilities. Ms. Rehfeld replied that
multiple factors contributed to the backlog problem.
9:27:13 AM
Ms. Rehfeld continued with lines 67 and 68, and stated the
amendments referred to access issues, RS2477. She referred
to line 69 with a request of $390,000 to continue the
Wildland Fire Academy: training courses for 80-120 students
for training in fire-fighting activities. She discussed
line 70 that was a request of $1.3 million for the Bureau
of Highway Patrol. She referred to line 71, which was a
request for two new troopers to establish a new post in
northwest Alaska (Kiana or Selawik). She looked at line 72,
which was a request for a position to coordinate public
safety communications. She referred to line 73, which
requested a position in the Council on Domestic Violence
and Sexual Assault that would deal specifically with
prevention.
Co-Chair Hoffman referred to line 71, and wondered if
Northwest Alaska had a high rate of domestic violence and
sexual assault. Ms. Rehfeld replied that she was unsure,
but stated that it was an area of significant concern. She
stressed that the region had asked for trooper presence in
the area.
Senator Olson wondered if the new Alcohol laws in Kiana and
Selawik were the reason for the trooper request. Ms.
Rehfeld did not know.
Ms. Rehfeld looked at line 75, and stated that two
positions were requested for the Kodiak Airport. The
positions were needed to maintain the service hours and
operations. She pointed to line 76, and stated that five
positions were requested at the Bethel airport to extend
the hours of operations to 24 hours a day. She referred to
line 77, and stated that the request was for $980,000 in
Pell grant funding. She looked at lines 79 and 80, which
were for funding related to bargaining unit requests at the
University of Alaska.
9:33:29 AM
Ms. Rehfeld looked at line 84, which was a continuation of
the Alaska Energy Authority (AEA) $2 million renewable
energy fund.
Senator Olson wondered if AEA's request would provide for
the Susitna Hydro-electric project. Ms. Rehfeld responded
that it was not.
Co-Chair Hoffman wondered if the $2 million was for
additional positions, or if it was for a replacement of
general funds. Ms. Rehfeld replied that the funding was
specifically for AEA grant management.
9:35:55 AM
Ms. Rehfeld looked at line 85, and stated that it was a
request for the Department of Education to carry forward
funds that were made available in August 2010 for the
education jobs bill. She pointed to line 86, and stated
that it was Federal Medical Assistance Percentage
contingency language. She stressed that if the state did
not receive the higher reimbursement rate, $123 million
would be needed in FY 12. She referred to lines 88 through
90, and stated that they were language clarifications in
debt management.
9:37:10 AM
AT EASE
9:37:59 AM
RECONVENED
Senator Thomas wondered if money would be requested from
the federal government for Medicaid. Ms. Rehfeld replied
that the language in the bill was specific to overall
reimbursement rates, so money would be requested if the
federal government did not extend the reimbursement rate.
Co-Chair Hoffman wondered if the reimbursement estimate was
$123 million. Ms. Rehfeld affirmed.
Senator Thomas encouraged the administration to request
some money. He referred to line 62, and stated that he
appreciated the attempt to streamline the recurring
permitting process.
Senator Thomas referred to line 35, and queried the plan if
the federal funding were cut. Ms. Rehfeld responded that
increased state general funds would be used if the federal
funding were cut.
9:41:45 AM
Ms. Rehfeld discussed Capital Budget amendments, and
referred to the Capital Budget Amendment spreadsheet (copy
on file). She pointed out line 1, and stated that $2.8
million in DGF program receipts were requested for
improvements in security, safety, and access at the Atwood
Building and Linny Pacillo Parking Garage. She stated that
$3 million in cruise vessel funds were proposed for Skagway
City dock improvements. She stated that line 4 referred to
the Health Insurance Portability and Accountability Act,
which was for specific electronic transaction standards.
She pointed out line 5, and stated that it was a $36.5
million request for federal authorization for electronic
health record incentive payments. She stated that lines 7
through 27 had to do with the Airport Improvement Program.
9:45:34 AM
Senator Olson referred to line 6, and wondered where the
DOT/PF deep water studies would occur. Ms. Rehfeld replied
that the money was for a review for potential deep water
sights. She remarked that she did not know of any specific
areas DOT/PF would be exploring.
9:47:24 AM
Co-Chair Stedman requested more information on line 4. Ms.
Rehfeld detailed that it was a request for the Health
Insurance Portability and Accountability Act. She stated
that there was a previous planning grant for the project,
and approval had since been given for implementation of the
grant system. She stressed that the compliance was needed
by January 2012.
Senator Olson looked back to line 4, and wondered why the
implementation was not approved. Ms. Rehfeld replied that
the information was not available at the time the budget
was created in December 2010.
9:49:22 AM
Ms. Rehfeld continued with lines 28 though 50. She stated
that these changes were based on State Transportation
Improvement Program (STIP) amendments. She stressed that
DOT/PF could provide more information about the projects.
Co-Chair Stedman remarked that it was frustrating for the
STIP amendments to come in after the December budget.
Ms. Rehfeld looked at lines 52 and 53, and stated that the
request was for an additional $3.1 million from the Denali
Commission that would go into the Emerging Technology Fund.
She stated that line 54 referred to the National Petroleum
Reserve-Alaska (NPRA) Impact Grant Program.
9:52:27 AM
Co-Chair Hoffman referred to a letter he and Co-Chair
Stedman wrote to the administration that requested a
separation of capital and operating budget items. He
wondered if there were any amendments regarding that
request. Ms. Rehfeld replied that there were no amendments
to move specific items from the capital budget to the
operating budget.
Co-Chair Hoffman stressed that the legislature uses
oversight, and felt that they would not be able to
carefully analyze the capital budget. Ms. Rehfeld
understood the concern, and stated that OMB was attempting
to find a balance.
Co-Chair Hoffman furthered that the capital items and
operating items should be carefully separated in order to
fully analyze the items. Ms. Rehfeld replied that
discussions would occur regarding placement of the items in
the budgets.
9:55:47 AM
Co-Chair Stedman requested a comparison between the
Operating Budget and Capital Budget. Co-Chair Hoffman
stated that the Operating Budget was the daily operations
and funding for the state for one year. He furthered that
the Capital Budget could be extended for up to six years,
and allowed for flexibility in the departments. He stressed
the issue of the DOL's requests, and felt that many cases
were still unresolved. He pointed out that past governors
had not requested money in the capital budget for rural
schools. He appreciated that the governor had requested
rural school funding in the capital budget. Ms. Rehfeld
responded that she understood the concerns.
Senator Thomas wondered if the governor had requested
federal funding for Medicaid. He also requested a detailed
description of the state dollars needed for the Heating
Assistance Program, should the federal government cut the
funding; and would the governor request federal funding for
the Heating Assistance Program. Ms. Rehfeld replied that
the OMB alerts the delegation of any concerns in the
budget. Senator Thomas surmised that specific requests for
those items would not occur. Ms. Rehfeld replied that the
delegation were aware of concerns.
10:00:05 AM
Senator Olson referred to line 54, and wondered if the NPRA
grants would be re-allocated somewhere else. Ms. Rehfeld
replied that the amendment adjusts the actual amounts of
the approved grants.
Co-Chair Hoffman referred to the Fiscal Summary Spreadsheet
(copy on file), and wondered what the savings would be if
$123 million was appropriated with a higher Federal Medical
Assistance Percentage (FMAP). Ms. Rehfeld pointed to line
54, and stated that there would be $266.2 million that
could go into the statutory budget reserve, and would be
reduced to $134 million if the higher reimbursement rate
was not extended.
Co-Chair Stedman remarked that if the FY 12 budget was
compared with the FY 12 revenue, the state would be under
$92 million; and if the FMAP was not extended the state
would be under $215 million. He stressed that the budget
was predicated on $62.67 per barrel of oil, with 622,000
barrels of oil produced per day. He understood that a
revenue adjustment would occur, but stressed that there was
no savings component in FY 12. Co-Chair Hoffman furthered
that savings were used in the FY 12 budget. Ms. Rehfeld
replied that the governor was presenting strategic
investments for consideration, and stressed that OMB had
been very clear about the budget strategies.
Co-Chair Hoffman commented that the savings accounts would
be diminished. Ms. Rehfeld responded that the long term
plan included how reserves are managed.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 47 FY2012 Governor Amended Fiscal Summary.pdf |
SFIN 2/21/2011 9:00:00 AM |
SB 47 |