Legislature(2011 - 2012)SENATE FINANCE 532

03/05/2012 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 307 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
<Pending Referral>
*+ SB 184 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
+= SB 130 ALASKA NATIVE LANGUAGE COUNCIL TELECONFERENCED
Moved CSSB 130(STA) Out of Committee
+= SB 135 CONTINUANCES IN CRIMINAL TRIALS; VICTIMS TELECONFERENCED
Moved CSSB 135(JUD) Out of Committee
+= HB 104 ALASKA PERFORMANCE SCHOLARSHIPS TELECONFERENCED
Scheduled But Not Heard
+= HB 65 SENIOR CITIZEN HOUSING DEV. FUND GRANTS TELECONFERENCED
Heard & Held
+= SB 160 BUDGET: CAPITAL TELECONFERENCED
Heard & Held
+ FY13 Capital Budget: Agency Overviews TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
SENATE BILL NO. 184                                                                                                             
                                                                                                                                
"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."                                                                                                                
                                                                                                                                
9:05:00 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman stated  that capital  budget items  in the                                                                    
supplemental  budget  would  not  be  discussed  during  the                                                                    
meeting.                                                                                                                        
                                                                                                                                
9:05:16 AM                                                                                                                    
                                                                                                                                
KAREN REHFELD,  DIRECTOR, OFFICE  OF MANAGEMENT  AND BUDGET,                                                                    
stated that  the bill totaled approximately  $97 million, of                                                                    
which  $78.5 million  was  unrestricted  general funds.  She                                                                    
said  that  the  agency operating  supplementals  that  were                                                                    
included  in the  request totaled  $38.9  million, of  which                                                                    
$30.4  million   was  general   funds  and   included:  fire                                                                    
suppression,  disaster relief,  and  formula requests  under                                                                    
the adult  public assistance program. She  stated that there                                                                    
were  two  significant  settlements  included  in  the  bill                                                                    
totaling $38  million: the  University of  Alaska's Optional                                                                    
Retirement Plan settlement for $20  million and the Moore v.                                                                    
State case  settlement for $18  million. She  explained that                                                                    
the bill contained  18 sections. Sections 1  and 2 contained                                                                    
the  operating  numbers,  Sections  3  through  5  were  the                                                                    
capital numbers; the  language section of the  bill began in                                                                    
Section 6.                                                                                                                      
                                                                                                                                
9:07:02 AM                                                                                                                    
                                                                                                                                
Ms.   Rehfeld  read   the  requests   listed  on   the  FY12                                                                    
supplemental requests spreadsheet:                                                                                              
                                                                                                                                
     Administration                                                                                                             
     Office of Public Advocacy                                                                                                  
     Operational Costs for Caseload Increases                                                                                   
     Projections are based upon  actual expenditures for the                                                                    
     first  half of  FY2012  and comparisons  to prior  year                                                                    
     expenditures.  In FY2011,  OPA received  a supplemental                                                                    
     in the amount of $900.0.  The impact of this request is                                                                    
     being considered for a FY2013 budget amendment.                                                                            
     $800.0 - General Fund                                                                                                      
                                                                                                                                
     Administration                                                                                                             
     Public Defenders Agency                                                                                                    
     Operational Costs for Caseload Increases                                                                                   
     In FY2011 the agency  experienced a budget shortfall of                                                                    
     $300.0   which   was   covered   by   a   supplemental.                                                                    
     Projections are based upon  actual expenditures for the                                                                    
     first  half of  FY2012  and comparisons  to prior  year                                                                    
     expenditures.                                                                                                              
     The impact  of this request  is being considered  for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $1,000.0 - General Fund                                                                                                    
                                                                                                                                
     Commerce                                                                                                                   
    Alaska Industrial Development and Export Authority                                                                          
     Increased Costs for Financing Tools                                                                                        
     Increased  costs  for  developing tools  for  financing                                                                    
     major  economic development  infrastructure (industrial                                                                    
     roads   and   ports)   to  support   natural   resource                                                                    
     development in Alaska. This is a one-time item.                                                                            
     $150.0 - AIDEA Receipts                                                                                                    
                                                                                                                                
     Commerce                                                                                                                   
     Corporations, Business and Professional Licensing                                                                          
     Support for Board and Commission Members                                                                                   
     This  increase provides  funding support  for volunteer                                                                    
     boards  and  commissions  members to  stay  current  on                                                                    
     issues,   trends    and   policies    impacting   their                                                                    
     professions  and  to  maintain  the  quality  licensing                                                                    
     standards.  A   $244.6  increment  is  in   the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $244.6 - Receipt Supported Services                                                                                        
                                                                                                                                
     Commerce                                                                                                                   
    Corporations, Businesses and Professional Licensing                                                                         
    Business Licensing and Corporations Indirect Costs                                                                          
     Increase  general fund  program  receipts to  correctly                                                                    
     charge   indirect  costs   related   to  the   Business                                                                    
     Licensing and Corporations  program. A $250.0 increment                                                                    
     is in the FY2013 Governor's budget                                                                                         
     $250.0 - General Fund Program Receipts                                                                                     
                                                                                                                                
     Commerce                                                                                                                   
    Corporations, Businesses and Professional Licensing                                                                         
     Adjustment for Licensing Fees                                                                                              
     Fund   source   change  from   professional   licensing                                                                    
     receipts  (receipt supported  services) tot  eh general                                                                    
     fund  to  reimburse   the  professions  for  historical                                                                    
     indirect  cost overpayments  that were  associated with                                                                    
     the  Business License  and Corporations  programs. This                                                                    
     is a one-time funding change.                                                                                              
     $3,439.8 - General Fund - Receipt Supported Services                                                                       
                                                                                                                                
     Commerce                                                                                                                   
    Corporations, Businesses and Professional Licensing                                                                         
     Implementation of Audit Recommendations                                                                                    
     Increase  receipt supported  services to  address audit                                                                    
     findings on  cost allocations to division  programs and                                                                    
     for remediation  of the investigations system.  This is                                                                    
     a one-time item.                                                                                                           
     $250.0 - Receipt Supported Services                                                                                        
                                                                                                                                
9:09:52 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued with her presentation of the                                                                              
supplemental requests:                                                                                                          
                                                                                                                                
     Corrections                                                                                                                
     Inmate Transportation                                                                                                      
     Increased Inmate Transportation Costs                                                                                      
     The  Department  of   Corrections  has  experienced  an                                                                    
     increase in the costs  within the Inmate Transportation                                                                    
     Unit   due  to   in-state  and   out-of-state  prisoner                                                                    
     transports associated  with population  management. The                                                                    
     average  daily in-state  offender population  from July                                                                    
     1, 2011  through December  31, 2011  was 3,851  with an                                                                    
     additional  1,050  offenders housed  out-of-state.  The                                                                    
     maximum  capacity  of   the  in-state  institutions  is                                                                    
     3,840.   The  average   daily  population   continually                                                                    
     exceeds  the maximum  capacity  creating  the need  for                                                                    
     offenders  to  be  transported  between  facilities  in                                                                    
     order to manage  the inmate population. This  is a one-                                                                    
     time item.                                                                                                                 
     $867.4 - General Fund                                                                                                      
                                                                                                                                
     Corrections                                                                                                                
     Community Jails                                                                                                            
     Additional  funding  id  necessary to  cover  operating                                                                    
     costs  of the  15  community jails  based on  financial                                                                    
     reports provided to the  Department of Corrections. The                                                                    
     department  is  currently   evaluating  the  costs  and                                                                    
     revising  the methodology  for funding  community jails                                                                    
     for consideration as a FY2012 budget amendment.                                                                            
     $600.0 - General Fund                                                                                                      
                                                                                                                                
     Education and Early Childhood Development                                                                                  
     Student and School Achievement                                                                                             
     Comprehensive System of  Student Assessment Contractual                                                                    
     Costs                                                                                                                      
     This Additional  funding is  needed to  accommodate the                                                                    
     negotiated  contract for  the  Comprehensive System  of                                                                    
     Student  Assessments.  The   FY2013  Governor's  budget                                                                    
     includes  an additional  $750.0  for modified  contract                                                                    
     items.                                                                                                                     
     $1,000.0 - General Fund                                                                                                    
                                                                                                                                
     Health and Social Services                                                                                                 
     Medical Assistance Administration                                                                                          
     Continued  work on  Health Information  Portability and                                                                    
     Accountability Act (HIPAA) Version 5010 Project                                                                            
     Additional    authority    for    federally    mandated                                                                    
     implementation   of    version   5010    medical   care                                                                    
     transactions and code sets. This is a one-time item.                                                                       
     $80.0 - General Fund                                                                                                       
     $720.0 - Federal Receipts                                                                                                  
                                                                                                                                
     Health and Social Services                                                                                                 
     McLaughlin Youth Center                                                                                                    
     Increased  Medical Costs  for  Juvenile Justice  System                                                                    
     Youth                                                                                                                      
     Statutorily required medical  services for youth within                                                                    
     the Juvenile  Justice facilities - will  be reallocated                                                                    
     via  revised programs  throughout  the DJJ  facilities.                                                                    
     This is a one-time item.                                                                                                   
     $627.5 - General Fund                                                                                                      
                                                                                                                                
     Health and Social Services                                                                                                 
     Alaska Temporary Assistance Program                                                                                        
     ARRA  Emergency Funding  for  Temporary Assistance  for                                                                    
     Needy Families (TANF) Program                                                                                              
     Revenues  made  available due  to  an  increase in  the                                                                    
     Alaska TANF  caseload. The division plans  to invest in                                                                    
     these TANF  emergency funds in  work and  job readiness                                                                    
     activities  and opportunities  for  engagement in  work                                                                    
     activities. This is a one-time item.                                                                                       
     $1,100.6 - 1212 Federal ARRA                                                                                               
                                                                                                                                
     Health and Social Services                                                                                                 
     Adult Public Assistance                                                                                                    
     Adult Public Assistance Caseload Growth                                                                                    
     Increased  program  enrollment,   particularly  in  the                                                                    
     disabled  and bling  category -  tied  to the  dramatic                                                                    
     growth  in the  Alaska  senior  population. A  $6,075.0                                                                    
     increment is included in the FY2013 Governor's budget.                                                                     
     $2,600.0 - General Fund                                                                                                    
                                                                                                                                
     Health and Social Services                                                                                                 
     Energy Assistance Program                                                                                                  
     Low Income Home Energy  Assistance Program (LIHEAP) and                                                                    
     Alaska Affordable Heating Program for the State                                                                            
     Based   on  projected   needs.  The   impact  of   this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $928.7 - General Fund                                                                                                      
                                                                                                                                
     Health and Social Services                                                                                                 
     Energy Assistance Program                                                                                                  
     Low Income Home Energy  Assistance Program (LIHEAP) and                                                                    
     Alaska Affordable Heating Program for Tribes                                                                               
     Based   on  projected   needs.  The   impact  of   this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $1,691.6 - General Fund                                                                                                    
                                                                                                                                
9:12:21 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman queried when  the latest assessment of need                                                                    
had been  conducted. Ms. Rehfeld responded  that the numbers                                                                    
had been provided upon the  introduction of the supplemental                                                                    
bill on  the 15th  day of  the current  legislative session.                                                                    
She  said  that  the  department   was  in  the  process  of                                                                    
reviewing the numbers  and could provide updates  at a later                                                                    
date.                                                                                                                           
                                                                                                                                
Ms.  Rehfeld   continued  with   her  presentation   of  the                                                                    
supplemental requests:                                                                                                          
                                                                                                                                
     Health and Social Services                                                                                                 
     Women, Children and Family Health                                                                                          
     Increase in Demand for Clinics for Newborn Screening                                                                       
     Greater  volume of  screenings  provided will  generate                                                                    
     additional  general fund  program receipts.  The impact                                                                    
     of this supplemental request is  being considered for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $350.0 - General Fund Program Receipts                                                                                     
                                                                                                                                
     Health and Social Services                                                                                                 
     Chronic Disease Prevention/Health Promotion                                                                                
     Reinstate  American   Recovery  and   Reinvestment  Act                                                                    
     (ARRA)  Authority  -   Tobacco,  Obesity  and  Diabetes                                                                    
     Programs                                                                                                                   
     Restore  FY2012  federal  authority for  this  program,                                                                    
     which  was deleted  earlier due  to an  indication that                                                                    
     federal revenues  would be withdrawn. Funding  has been                                                                    
     extended through FY2012. This is a one-time item.                                                                          
     $140.0 - Federal ARRA                                                                                                      
                                                                                                                                
     Health and Social Services                                                                                                 
     Epidemiology                                                                                                               
     Reinstate  American   Recovery  and   Reinvestment  Act                                                                    
     (ARRA)  Authority -  Health  Assessment and  Children's                                                                    
     Immunizations                                                                                                              
     Restore  FY2012  federal  authority for  this  program,                                                                    
     which  was deleted  earlier due  to an  indication that                                                                    
     the federal  revenues would  be withdrawn.  Funding has                                                                    
     been extended through FY2012. This is a one-time item.                                                                     
     $30.0 - Federal ARRA                                                                                                       
                                                                                                                                
     Health and Social Services                                                                                                 
     Senior and Disabilities Services Administration                                                                            
     Third  Party   Review  of  Home  and   Community  Based                                                                    
     Medicaid  Waiver  Denials Increased  federal  authority                                                                    
     for  review   of  eligibility  decisions   that  remove                                                                    
     clients from waivered services,  based on a recent one-                                                                    
     time federal grant  for review of all  denials. This is                                                                    
     a one-time item.                                                                                                           
     $250.0 - Federal Receipts                                                                                                  
                                                                                                                                
     Labor                                                                                                                      
     Worker's Compensation Benefits Guaranty Fund                                                                               
     Increase Workers'  Compensation Benefits  Guaranty Fund                                                                    
     Authority to Increased Legal Costs                                                                                         
     An increase  in Worker's Compensation  Benefit Guaranty                                                                    
     Fund   authorization  is   required   to  support   the                                                                    
     component's  legal   representation  provided   by  the                                                                    
     Department of  Law. The recent legal  decision, Charles                                                                    
     West  v.   State  of  Alaska,  Benefit   Guaranty  Fund                                                                    
     (Decision No.  145, January 20, 2011),  has resulted in                                                                    
     an  increase in  the number  of claims  requiring legal                                                                    
     representation  for  the  Fund.   The  impact  of  this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $168.0 - Workers' Compensation Benefits Guaranty Fund                                                                      
                                                                                                                                
     Labor                                                                                                                      
     Alaska Vocational Technical Center                                                                                         
     Replace Unrealized Program Receipts                                                                                        
     This fund  source change replaces  unrealizable general                                                                    
     fund  program receipts  with general  funds to  support                                                                    
     increased  operating  expenses for  existing  programs.                                                                    
     AVTEC's  expenses have  grown considerably  due to  the                                                                    
     higher  cost of  goods and  services. This  $250.0 fund                                                                    
    change is included in the FY2013 Governor's budget.                                                                         
     $250.0 - General Fund - General Fund Program Receipts                                                                      
                                                                                                                                
     Law                                                                                                                        
     Oil, Gas and Mining                                                                                                        
     Oil and Gas Outside Council                                                                                                
     Increased  litigation costs  for  oil  and gas  outside                                                                    
     council attributable  to three  types of  cases: tariff                                                                    
     proceedings;  Trans   Alaska  Pipeline   System  (TAPS)                                                                    
     property  tax  proceedings;  and oil  and  gas  royalty                                                                    
     issues.  An increment  of $6,150.0  is included  in the                                                                    
     FY2013 Governor's  budget and  is based  on anticipated                                                                    
     caseload.                                                                                                                  
     $3,116.0 - General Fund                                                                                                    
                                                                                                                                
     Law                                                                                                                        
     Transportation Section                                                                                                     
     Fast Ferry Litigation                                                                                                      
     In  FY2011, the  department  had $200,000  appropriated                                                                    
     for  the fast  ferry litigation.  Last year's  activity                                                                    
     however  exceeded  the   $200,000  and  the  department                                                                    
     covered $19,789 while  the Department of Transportation                                                                    
     paid   an  additional   $109,480.  Total   expenditures                                                                    
     associated  with the  fast ferry  lawsuit  to date  are                                                                    
     $569,955  (including $21,605  form  FY2012). In  FY2012                                                                    
     YTD, $219,081  has been expended and  it is anticipated                                                                    
     to ramp  up because  outside counsel has  been obtained                                                                    
     and discovery  activity will pick  up. An  increment of                                                                    
    $600.0 is included in the FY2013 Governor's budget.                                                                         
     $600.0 - General Fund                                                                                                      
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Office of the Commissioner                                                                                                 
     Base Realignment and Closure Commission Impact                                                                             
     Department  of  Defense   Secretary  Leon  Panetta  had                                                                    
     announced that the  plan to cut nearly  $500 billion in                                                                    
     the  next  10  years  from the  Department  of  Defense                                                                    
     budget   will  impact   all  50   states  and   a  Base                                                                    
     Realignment  and  Closure  Commission  (BRAC)  will  be                                                                    
     requested  of Congress  to address  facility reductions                                                                    
     as soon  as possible.  The U.S. military's  presence in                                                                    
     Alaska represents  10 percent  of the  state's economy.                                                                    
     The Alaska  Military Force Advocacy and  Structure Team                                                                    
     (AMFAST)  recommends  the  State   of  Alaska  hire  an                                                                    
     experienced consulting group  to address ideas proposed                                                                    
     by  the  next  BRAC.  This  request  will  promote  and                                                                    
     sustain Alaska's current  military facilities and force                                                                    
     structure.  The   impact  of  this  request   is  being                                                                    
     considered for a FY2013 budget amendment.                                                                                  
     $300.0 - General Fund                                                                                                      
                                                                                                                                
9:16:10 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued with her presentation of the                                                                              
supplemental requests:                                                                                                          
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Army Guard Facilities Maintenance                                                                                          
     State  Match Requirement  Change at  Kodiak, Ketchikan,                                                                    
     and Kenai Armories                                                                                                         
     The federal/state funding  ratios for armory operations                                                                    
     in  Kodiak, Ketchikan,  and Kenai  have changed  due to                                                                    
     federal regulations  regarding funding and  armory use.                                                                    
     The impact  of this request  is being considered  for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $97.3 - General Fund Match - Federal Receipts                                                                              
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Army Guard Facilities Maintenance                                                                                          
     Bethel Armory Operations                                                                                                   
     Operating  funds for  the  new  Bethel Armory  starting                                                                    
     December  2011. The  impact of  this  request is  being                                                                    
     considered for a FY2013 budget amendment.                                                                                  
     $94.6 - General Fund                                                                                                       
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Air Guard Facilities Maintenance                                                                                           
     Eielson  Air Force  Base  Electrical Usage  Calculation                                                                    
     Correction                                                                                                                 
     Eielson  Air  Force Base  discovered  an  error in  the                                                                    
     method  used  to  calculate that  Alaska  Air  National                                                                    
     Guard electrical  usage for the 168th  Wing. Funding is                                                                    
     requested  for  the  increase to  the  annual  cost  of                                                                    
     electricity.  The  impact  of  this  request  is  being                                                                    
     considered for an FY2013 budget amendment.                                                                                 
     $26.3 - General Fund                                                                                                       
     $78.8 - Federal Receipts                                                                                                   
     Military and Veterans Affairs                                                                                              
     Veteran's Services                                                                                                         
     Reduce Unrealizable Federal Funds                                                                                          
     The  U.S.  Department  of  Veterans'  Affairs  (VA)  no                                                                    
     longer  distributes federal  funding to  administer the                                                                    
     State  Approving  Agency   (SAA)  grant  for  Veteran's                                                                    
     Educational   Programs  (GI   Bill).  This   change  is                                                                    
     reflected in the FY2013 Governor's budget.                                                                                 
     $(95.8) - Federal Receipts                                                                                                 
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Veteran's Services                                                                                                         
     State Approving Agency Program Continuation                                                                                
     The  U.S.  Department  of  Veterans'  Affairs  (VA)  no                                                                    
     longer  distributes federal  funding to  administer the                                                                    
     State  Approving  Agency   (SAA)  grant  for  Veteran's                                                                    
     Educational   Programs  (GI   Bill).  This   change  is                                                                    
     reflected in the FY2013 Governor's budget.                                                                                 
     $95.8 - General Fund                                                                                                       
                                                                                                                                
     Military and Veterans Affairs                                                                                              
     Veterans' Services                                                                                                         
     Interior Alaska Veterans Cemetery Position                                                                                 
     A vacant position will be  transferred to the Veterans'                                                                    
     Services Office to  provide additional project planning                                                                    
     and coordination.  The impact of this  request is being                                                                    
     considered for a FY2013 budget amendment.                                                                                  
     $41.3 - General Fund                                                                                                       
                                                                                                                                
     Natural Resources                                                                                                          
     Project Management and Permitting                                                                                          
     Wishbone   Hill  Coal   Project  Rapid   Health  Impact                                                                    
     Assessment                                                                                                                 
     A Rapid  Health Impact Assessment will  be conducted in                                                                    
     conjunction with the permit renewal  process. This is a                                                                    
     one-time item.                                                                                                             
     $39.2 - General Fund                                                                                                       
                                                                                                                                
     Natural Resources                                                                                                          
     Mining, Land and Water                                                                                                     
     Dam Safety Review - Red Dog Mine                                                                                           
     The Dam  Safety and  Construction Unit (Dam  Safety) is                                                                    
     expecting  to  receive  a  large  statutory  designated                                                                    
     program receipt  (SDPR) in an application  fee required                                                                    
     under   11  AAC   93.171  for   the  construction   and                                                                    
     modification of dams for the  expansion of the tailings                                                                    
     storage  facility  at the  Red  Dog  Mine in  northwest                                                                    
     Alaska. The impact of this  request is being considered                                                                    
     for a FY2012 budget amendment.                                                                                             
     $66.5 - Statutory Designated Program Receipts                                                                              
                                                                                                                                
     Natural Resources                                                                                                          
     Mining, Land and Water                                                                                                     
     Offshore Lease Sales at Nome                                                                                               
     This   request   provides   funding  for   securing   a                                                                    
     monitoring contractor for offshore  lease sales at Nome                                                                    
     to be  trained and in  place when  the ice goes  out at                                                                    
     Nome (early  to mid -June  2012). This is  reflected in                                                                    
     the FY2012 Governor's budget.                                                                                              
     $18.6 - General Fund Program Receipts                                                                                      
                                                                                                                                
     Natural Resources                                                                                                          
     Fire Suppression Activity                                                                                                  
     FY2012 Fire Suppression Activity                                                                                           
     This is  a preliminary  estimate of  supplemental needs                                                                    
     for spring firefighting and costs  of initial attack of                                                                    
     wildland fires through June 30, 2012.                                                                                      
     $4,892.5 - General Fund                                                                                                    
                                                                                                                                
     Public Safety                                                                                                              
     AST Detachments                                                                                                            
     24-Hour  Dispatch and  Prisoner  Transport Services  in                                                                    
     the City of Kotzebue                                                                                                       
     The  Department of  Public  Safety currently  contracts                                                                    
     with the  City of Kotzebue to  provide 24-hour dispatch                                                                    
     services and  for local transport  of prisoners  to and                                                                    
     from court.  The city  has historically  provided these                                                                    
     services  to the  state at  no  cost and  is no  longer                                                                    
     willing  to do  that. These  services are  required and                                                                    
     there are no practical  alternatives for the Department                                                                    
     of  Public  Safety.  The impact  of  this  supplemental                                                                    
     request  is  being  considered   doe  a  FY2013  budget                                                                    
     amendment.                                                                                                                 
     $75.0 - General Fund                                                                                                       
                                                                                                                                
9:19:19 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued to highlight the FY 12 supplemental                                                                       
requests:                                                                                                                       
                                                                                                                                
     Public Safety                                                                                                              
     ATS Detachments                                                                                                            
    City of Kotzebue Jail Closure Transportation Coasts                                                                         
     Temporary funding  is necessary for  prisoner transport                                                                    
     between  Kotzebue  and  Nome   during  closure  of  the                                                                    
     Kotzebue  jail. This  assumes the  jail re-opens  on or                                                                    
     about February 1, 2012. Amounts  are based on December,                                                                    
     2011  actual  costs  of  $47.0,  with  an  increase  in                                                                    
     January  assuming some  transition  into  the jail  re-                                                                    
     opening.   Personal  services   costs   are  only   for                                                                    
     overtime,  not for  already budgeted  personal services                                                                    
     costs. This is a one-time item.                                                                                            
     $106.0 - General Fund                                                                                                      
                                                                                                                                
     Public Safety                                                                                                              
     AST Detachments                                                                                                            
     Replace  Federal   Pass  Thorough  Funds   from  Alaska                                                                    
     Highway Safety Office                                                                                                      
     The  Alaska Bureau  of Highway  Patrol  will no  longer                                                                    
     receive  federal  funds  for  non-DUI  related  traffic                                                                    
     enforcement. In  order to maintain  traffic enforcement                                                                    
     to include non-DUI specific  activity, such as impaired                                                                    
     driving,   youth   drivers,  aggressive   driving   and                                                                    
     speeding,  and  seat   belt  enforcement,  supplemental                                                                    
     funding  is  necessary  as the  current  budget  cannot                                                                    
     absorb   these   costs.  Additional   federal   funding                                                                    
     reductions  are  anticipated  for  DUI-related  traffic                                                                    
     enforcement  starting in  FY2014.  The  impact of  this                                                                    
     supplemental request  is being considered for  a FY2013                                                                    
     budget amendment.                                                                                                          
     $1,900.0 - General Fund                                                                                                    
                                                                                                                                
     Public Safety                                                                                                              
     Alaska Criminal Records and ID                                                                                             
     Maintain Current Level of Services                                                                                         
     The  Criminal Records  and Identification  Bureau (R&I)                                                                    
     does  not have  adequate  general funds  in the  FY2012                                                                    
     operating budget  to maintain current  services without                                                                    
     taking  cost  containment  measures  that  will  impact                                                                    
     public  services and  the  timely  availability of  law                                                                    
     enforcement information. The impact  of this request is                                                                    
     being considered for a FY2013 budget amendment.                                                                            
     $200.0 - General Fund                                                                                                      
                                                                                                                                
     Revenue                                                                                                                    
     Tax Division                                                                                                               
     Litigation Support for Corporate Income Tax                                                                                
     Litigation  expenses  are  anticipated  to  generate  a                                                                    
     budget  shortfall  in the  first  part  of FY2012.  The                                                                    
     Department is  involved in  two cases  requiring expert                                                                    
     witnesses that  were unanticipated.  The funds  for the                                                                    
     expert witnesses  will be  paid through  a reimbursable                                                                    
     service agreement to  the Department of Law.  This is a                                                                    
     one-time item.                                                                                                             
     $150.0 - General Fund                                                                                                      
                                                                                                                                
     Revenue                                                                                                                    
     Treasury Division                                                                                                          
     Investment  Management   of  Power   Cost  Equalization                                                                    
     Endowment Fund                                                                                                             
     The  investment management  costs  for  the Power  Cost                                                                    
     Equalization  Endowment Fund  (PCE) have  increased due                                                                    
     to a  $400 million deposit  made in FY2011.  The amount                                                                    
     requested  will cover  the costs  for the  remainder of                                                                    
     FY2012.  An  increment  of $80.4  is  included  in  the                                                                    
     FY2012 Governor's budget.                                                                                                  
     $58.0 - Power Cost Equalization Endowment                                                                                  
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     State Equipment Fleet                                                                                                      
     Credit Card Fuel Program                                                                                                   
     Authorization   to   cover   projected   increases   in                                                                    
     expenditures related  to the credit card  fuel program.                                                                    
     A  $1,110.0   increase  is   included  in   the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $850.0 - Highway Working Capital Fund                                                                                      
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Central Region Facilities                                                                                                  
     Snow Removal Costs                                                                                                         
     Due to an  early and heavy snow  season, Central Region                                                                    
     Facilities  has exhausted  the snow  removal budget  in                                                                    
     November  and December.  Also, additional  snow hauling                                                                    
     services have  been incurred within the  Tudor Complex.                                                                    
     There is  no longer  adequate space to  stockpile snow,                                                                    
     so all  snow must  be hauled  to the  contractor's snow                                                                    
     dump  throughout the  winter. This  is a  one-time line                                                                    
     item.                                                                                                                      
     $85.0 - General Fund                                                                                                       
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Central Highways and Aviation                                                                                              
     New   Insurance   Requirements    for   Rural   Airport                                                                    
     Maintenance Contracts                                                                                                      
     A recent  change in how rural  contractors were covered                                                                    
     under  the  State's   accident  umbrella.  All  airport                                                                    
     maintenance contracts  are now required to  be insured.                                                                    
     An  increment  of  $356.3 is  included  in  the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $102.4 - General Fund                                                                                                      
                                                                                                                                
9:22:16 AM                                                                                                                    
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Central Highways and Aviation                                                                                              
     Anchorage Snow Removal Costs                                                                                               
     Snowfall   in  the   Anchorage   area   this  year   is                                                                    
     significantly  higher than  considered  normal for  the                                                                    
     area. The recent heavy snowstorms  and near record snow                                                                    
     accumulation in  November and December has  resulted in                                                                    
     unanticipated  hauling  costs  to  remove  excess  snow                                                                    
     plowed from  the roads onto the  shoulders and sidewalk                                                                    
     areas. This is a one-time item.                                                                                            
     $200.0 - General Fund                                                                                                      
                                                                                                                                
9:22:30 AM                                                                                                                    
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Northern Highways and Aviation                                                                                             
     New   Insurance   Requirements    for   Rural   Airport                                                                    
     Maintenance Contracts                                                                                                      
     A recent  change in how rural  contractors were covered                                                                    
     under  the  State's   accident  umbrella.  All  airport                                                                    
     maintenance contracts  are now required to  be insured.                                                                    
     An  increment  of  $423.6 is  included  in  the  FY2013                                                                    
     Governor's budget.                                                                                                         
     $120.1 - General Fund                                                                                                      
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Southeast Highways and Aviation                                                                                            
    Winter Commodities - Sand and Ice Control Chemicals                                                                         
     High   snowfall   and  cold   temperatures   throughout                                                                    
     Southeast   Region  in   November  and   December  have                                                                    
     required  heavier  than  normal sand  and  ice  control                                                                    
     chemical use  to keep highways  and airports  safe. Due                                                                    
     to  stock depletion,  large quantities  of ice  control                                                                    
     chemicals were reordered in mid-winter.  This is a one-                                                                    
     time line item.                                                                                                            
     $257.0 - General Fund                                                                                                      
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Whittier Access and Tunnel                                                                                                 
     Whittier Tunnel Reduced Revenue Toll Collections                                                                           
     The majority  of Whittier  Access and  Tunnel's funding                                                                    
     is based on revenue  collections from the tunnel tolls.                                                                    
     Reduced travel  through the  tunnel and  reduced cruise                                                                    
     ship  dockings  has  resulted in  a  decrease  in  toll                                                                    
     collections.  In  addition  to  increased  costs,  toll                                                                    
     revenues have declined  over the past few  years due to                                                                    
     economic conditions, reduced  cruise ship dockings, and                                                                    
     increased  fuel  prices.  An  increment  of  $192.9  is                                                                    
     included in the Governor's FY2013 budget.                                                                                  
     $229.8 - General Fund                                                                                                      
                                                                                                                                
9:23:09 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld continued to highlight the FY 12 supplemental                                                                       
requests:                                                                                                                       
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     Anchorage Airport Facilities                                                                                               
     Utilities  and  Building   Maintenance  for  Kulis  Air                                                                    
     National Guard Base                                                                                                        
     In September  2011, the Anchorage Airport  acquired the                                                                    
     management  of  the  Kulis   Air  National  Guard  Base                                                                    
     property  back from  the  U.S.  Department of  Defense.                                                                    
     Building  maintenance and  property upkeep  is now  the                                                                    
     responsibility of  the Anchorage Airport.  An increment                                                                    
     of $750.0  (IARF) is included in  the Governor's FY2013                                                                    
     budget.                                                                                                                    
     $625.0 - International Airport Revenue Fund                                                                                
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     AIA Field and Equipment Maintenance                                                                                        
     Purchase De-icing Chemicals                                                                                                
     In  FY2011, the  cost per  ton of  urea increased  from                                                                    
     $342 per  ton to  $719 per ton.  Also, the  airport has                                                                    
     commissioned a third new tank  for potassium acetate in                                                                    
     order  to  mitigate  continuing  supply  shortages.  An                                                                    
     increment of  $1,634.5 has been included  in the FY2013                                                                    
     Governor's budget.                                                                                                         
     $1,634.5 - International Airport Revenue Fund                                                                              
                                                                                                                                
     Transportation and Public Facilities                                                                                       
     AIA Field and Equipment Maintenance                                                                                        
     Property Maintenance for Kulis  Air National Guard Base                                                                    
     Student  Allocation   (BSA)  In  September   2011,  the                                                                    
     Anchorage Airport acquired the  management of the Kulis                                                                    
     Air  National Guard  Base property  back form  the U.S.                                                                    
     Department   of  Defense.   The  acquisition   includes                                                                    
     approximately  130 acres  of  land, sidewalks,  parking                                                                    
     lots and access roads  which are not the responsibility                                                                    
     of  the  Anchorage  Airport.  AN  increment  of  $450.0                                                                    
    (IARF) is included in the Governor's FY2013 budget.                                                                         
     $375.0 - International Airport Revenue Fund                                                                                
                                                                                                                                
     University of Alaska                                                                                                       
     Anchorage Campus                                                                                                           
     Federal Receipt Authority for Pell Grants                                                                                  
     Additional  federal  receipt  authority  is  needed  to                                                                    
     accommodate  the increase  in  Pell  grant activity.  A                                                                    
     related   FY2013  budget   amendment   is  also   being                                                                    
     considered.                                                                                                                
     $5,000.0 - Federal Receipts                                                                                                
                                                                                                                                
9:24:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman solicited committee member questions                                                                           
concerning the FY12 supplemental requests.                                                                                      
                                                                                                                                
Ms. Rehfeld directed the committee to Page 9, line 79:                                                                          
                                                                                                                                
     Education and Early Development                                                                                            
     Commissioner's Office                                                                                                      
     Judgments and Settlements                                                                                                  
     Settlement   between   Department  of   Education   and                                                                    
     Citizens  for the  Educational Advancement  of Alaska's                                                                    
     Children  (CEAAC)  related  to  the  state's  education                                                                    
     system  for  the  fiscal years  ending  June  30,  2012                                                                    
     through June 30, 2017.                                                                                                     
     $18,000.0 - General Fund                                                                                                   
                                                                                                                                
Ms. Rehfeld added that the settlement listed specific                                                                           
requirements as to how the funds would be dispersed.                                                                            
Decisions would be made through a joint committee.                                                                              
                                                                                                                                
Ms. Rehfeld noted line 80:                                                                                                      
                                                                                                                                
     Law                                                                                                                        
     Deputy Attorney General's Office                                                                                           
     Judgments and Settlements                                                                                                  
     Actual  judgment and  settlement costs  received as  of                                                                    
     January 30, 2012.                                                                                                          
     $20,770.8 - General Fund                                                                                                   
                                                                                                                                
She stated that this was the largest settlement in the                                                                          
request and had to do with the university's optional                                                                            
retirement plan.                                                                                                                
                                                                                                                                
Ms. Rehfeld continued to highlight the FY 12 supplemental                                                                       
requests:                                                                                                                       
                                                                                                                                
     Military and Veteran's Affairs                                                                                             
     Army Guard Facilities Maintenance                                                                                          
     Scope Change:  Section 13, ch.29,  SLA 2008,  page 151,                                                                    
     lines 27-28                                                                                                                
     Anchorage   Armory   Roof    Replacement   and   G-Wing                                                                    
     Preparation                                                                                                                
     General Fund Match ($380.5)                                                                                                
     $380.5 - General Fund                                                                                                      
                                                                                                                                
     Military and Veteran's Affairs                                                                                             
     Army Guard Facilities Maintenance                                                                                          
     Amend: Section 1, ch.5, FSSLA 2011, page 88, line 21                                                                       
     State  Match  Requirement  Change  for  Federal  Energy                                                                    
     Projects                                                                                                                   
     The federal/state funding  ratios for armory operations                                                                    
     in  Kodiak, Ketchikan,  and Kenai  have changed  due to                                                                    
     federal regulations funding and armory use.                                                                                
     $7.5 - General Fund Match - Federal Receipts                                                                               
                                                                                                                                
     Military and Veteran's Affairs                                                                                             
     Army Guard Facilities Maintenance                                                                                          
    Amend: Section 4, ch.43, SLA 2010, page 12, line 27                                                                         
     State   Match    Requirement   Change    for   Deferred                                                                    
     Maintenance Projects in Kodiak, Ketchikan, and Kenai                                                                       
     The federal/state funding  ratios for armory operations                                                                    
     in  Kodiak, Ketchikan,  and Kenai  have changed  due to                                                                    
     federal regulations funding and armory use.                                                                                
     $737.5 - General Fund Match - Federal Receipts                                                                             
                                                                                                                                
     Natural Resources                                                                                                          
     Gas Pipeline Project                                                                                                       
     Extend the  lapse date  for permitting  and application                                                                    
     processing related to the  state gas pipeline right-of-                                                                    
     way work  related to bringing  North Slope  natural gas                                                                    
     to market, made  in Section 22(c), ch.14,  SLA 2009, as                                                                    
     amended by  sec.11(c), ch.1, FSSLA 2011,  from June 30,                                                                    
     2012 to June 30, 2013.                                                                                                     
                                                                                                                                
     State Debt and Other Obligations                                                                                           
     International Airports Revenue Bonds                                                                                       
     Amend: Section 32(q), ch.3, FSSLA 2011                                                                                     
     This allows the Alaska  International Airport System to                                                                    
     restructure   debt  payments   to  include   additional                                                                    
     passenger  facility   charge  (PFC)  revenue   and  the                                                                    
     International Airports Construction Fund.                                                                                  
     Int. Airports Revenue Fund - ($13,5000.0)                                                                                  
     $10,000.0 - Int. Airports Construction Fund                                                                                
     $3,500.0 - Passenger Facility Charges                                                                                      
                                                                                                                                
     Fund Capitalization                                                                                                        
     Disaster Relief Fund                                                                                                       
     Supplemental Disaster Funding                                                                                              
     Current   disasters  are   expected   to  exhaust   the                                                                    
     available general  funds in  the Disaster  Relief Fund.                                                                    
     In addition  to fall  and winter  storms, traditionally                                                                    
     there  are spring  floods that  have been  eligible for                                                                    
     expenditures form the Disaster  Relief Fund. The impact                                                                    
     of this supplemental request is  being considered for a                                                                    
     FY2013 budget amendment.                                                                                                   
     $3,000.0 - General Fund                                                                                                    
                                                                                                                                
9:27:13 AM                                                                                                                    
                                                                                                                                
Ms. Rehfeld  explained that the  remaining line  items spoke                                                                    
to 3  ratification requests for fire  suppression for $36.4,                                                                    
as well as two small requests from public safety.                                                                               
                                                                                                                                
Co-Chair  Hoffman solicited  further questions  or testimony                                                                    
on the legislation.                                                                                                             
                                                                                                                                
SB  184  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 65 Senate Finance.pdf SFIN 3/5/2012 9:00:00 AM
HB 65