Legislature(2011 - 2012)SENATE FINANCE 532
03/18/2011 05:00 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB76 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 46 | TELECONFERENCED | |
| += | SB 76 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 18, 2011
5:45 p.m.
5:45:03 PM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 5:45 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lesil McGuire, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
ALSO PRESENT
Tim Grussendorf, Staff, Co-Chair Hoffman; David Teal,
Legislative Finance Division.
SUMMARY
SB 76 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS
SB 76 was HEARD and HELD in Committee for further
consideration.
SENATE BILL NO. 76
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; repealing appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
5:45:21 PM
Co-Chair Hoffman discussed the legislation before the
committee.
Co-Chair Stedman MOVED to ADOPT proposed committee
substitute, work draft #27-GS1739\D. Co-Chair Hoffman
OBJECTED for the purpose of explanation.
TIM GRUSSENDORF, STAFF, CO-CHAIR HOFFMAN, discussed the
spreadsheet titled "Senate Fast Track Supplemental (SB 76)
March 18, 2011 (Copy on file)." He explained the colors
used to designate the various items in the supplemental
bill.
5:47:28 PM
Mr. Grussendorf discussed changes in the bill. He began
with Page 11 where omitted capital budget items were
listed. He explained that the supplemental bill contained
no capital budget items. The supplemental bill contained
only operating budget and savings items. He noted that the
largest changes were found on the last three pages. He
stated that Line 117 exhibited a $1 billion deposit in the
Statutory Budget Reserve (SBR). He shared that Line 16
listed a $400 million deposit into the Power Cost
Equalization (PCE) fund. He added that Line 119 showed $60
million deposited in the Alaska Marine Highway (AMH) vessel
replacement fund. He informed the committee that the
gambling tax fund was $22.6 million.
5:48:56 PM
DAVID TEAL, LEGISLATIVE FINANCE DIVISION, explained that
the gambling tax fund was not listed on the spreadsheet
because it was a general fund transfer to a general fund
account. Gambling tax was classified as unrestricted
general funds. In 2008, $7 million in the gambling tax
account was moved to the Constitutional Budget Reserve
(CBR) as a repayment of the outstanding liability. He added
that $10 million of the gambling tax account was taken in
October of 2010 based on the Department of Administration's
(DOA) interpretation of the law. The mentioned action
resulted in an empty gambling tax account. The supplemental
budget's $22.6 million filled the account in the proposed
legislation. Another $3 million remained in the regional
cruise ship portion of the commercial passenger vessel
fund, which could only be used for emerging ports.
5:51:18 PM
Co-Chair Hoffman asked about the savings. He recalled
discussion about the anticipated spring forecast for
greater than sufficient funds as a result of the higher oil
prices. He recalled mention of more than sufficient funds
available for saving as a result of the high oil prices.
Mr. Teal replied that the fiscal summary showed an FY11
surplus in excess of $2 billion. He stated that SB 76 saved
a good portion of the $2 billion. If oil prices collapsed,
the surplus would still exist.
Co-Chair Stedman explained that the Senate Finance
Committee created an aggressive plan for a strong fiscal
position in Alaska. He commented that the economic downturn
existed in the past and a robust capital budget would build
necessary infrastructure. He thought it prudent to place
substantial savings aside for the state's future. The
transfer of $400 million into the PCE fund would lower the
payout from 7 percent to 5 percent, which would allow the
entity to run in perpetuity into the future. The transfer
would alleviate the commitment to add an additional $20
million into the fund each session.
Co-Chair Stedman explained that transfer with the AMH fund
would ultimately be used to purchase a new vessel. The
intent was to use the $60 million in federal dollars to
Anchorage and Matsu for road improvements. He stated that
the SBR was a primary savings account. He stated that the
committee planned to add $1 billion to the SBR. He expected
a savings of approximately $17 billion, excluding the
permanent fund, by 2012. The structure of the $17 billion
would provide the topic for committee conversation. He
mentioned pressing energy needs in Fairbanks and Western
Alaska and natural gas concerns in Anchorage.
5:57:26 PM
Co-Chair Stedman complemented Senator McGuire for her work
on a holistic energy solution. Alaska's good fortune
allowed for contribution to savings accounts while other
states were struggling with solvency issues. He foresaw
future policy enforcing spending limits for the savings
accounts. He declared that the Senate and the House would
continue their collective course of creating a substantial
savings for the state.
Co-Chair Hoffman stated that additional dialog regarding SB
76 would occur in both the House and the Senate caucuses.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered. CSSB 76 (FIN) was adopted.
SB 76 was HEARD and HELD in Committee for further
consideration.
5:58:59 PM
ADJOURNMENT
The meeting was adjourned at 5:59 PM.
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