Legislature(2011 - 2012)SENATE FINANCE 532

03/27/2012 09:00 AM FINANCE


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09:04:44 AM Start
09:05:01 AM HB285
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 284 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+ - Subcommittee Reports TELECONFERENCED
+ HB 285 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ - Subcommittee Reports TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
+ SB 203 ENERGY ASSISTANCE PROGRAM & VOUCHERS TELECONFERENCED
Heard & Held
+= SB 192 OIL AND GAS PRODUCTION TAX RATES TELECONFERENCED
Scheduled But Not Heard
CS FOR HOUSE BILL NO. 284(FIN)                                                                                                
                                                                                                                                
      "An  Act  making  appropriations    for  the  operating   and  loan                                                       
      program   expenses   of   state   government    and   for  certain                                                        
      programs,  capitalizing   funds,   amending  appropriations,    and                                                       
      making  reappropriations;     and  providing   for   an  effective                                                        
      date."                                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 285(FIN)                                                                                                
                                                                                                                                
      "An Act making appropriations for the operating and capital                                                               
      expenses of the state's integrated comprehensive mental                                                                   
      health program; and providing for an effective date."                                                                     
                                                                                                                                
9:05:01 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman noted that all subcommittee budget close-out                                                                   
reports could be found on the Legislative Finance Division (LFD)                                                                
website.                                                                                                                      
                                                                                                                                
9:06:09 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                    
                                                                                                                                
TIM GRUSSENDORF, STAFF, SENATE FINANCE COMMITTEE, presented the                                                                 
report for Department of Commerce, Community and Economic                                                                       
Development (DCCED).                                                                                                            
                                                                                                                                
9:06:40 AM                                                                                                                    
                                                                                                                                
Co-Chair   Hoffman   acknowledged    that   the   subcommittee   members                                                        
included   himself,    Senator   Albert   Kookesh   and   Senator   Kevin                                                       
Meyer.                                                                                                                          
                                                                                                                                
9:06:49 AM                                                                                                                    
                                                                                                                                
Mr.   Grussendorf    presented    the   Senate   Finance    Subcommittee                                                        
Operating   Budget  close-out   recommendations    for  DCCED   (copy  on                                                       
file).   The   subcommittee   recommended    $123,108,400    in  general                                                        
funds,   which    represented    a  $1,347,700    reduction    from   the                                                       
governor's   request;  $37,323,700   in  other  funds,  representing   an                                                       
increase   of  $93,400;   and   a  $14,425,900   reduction   in  federal                                                        
funds   related  to  the   removal  of   excess  forest   receipts.   The                                                       
subcommittee   added   two  full-time   positions   and  zero  part-time                                                        
and temporary positions above the governor's request.                                                                           
                                                                                                                                
Mr.   Grussendorf   read   some   of  the   budget   action   highlights                                                        
included in the subcommittee recommendations:                                                                                   
                                                                                                                                
      Denied                                                                                                                    
                                                                                                                                
        · The     National     Forest    Receipts     $170.0    language                                                        
           appropriation   to  the  Department   of  Transportation   and                                                       
           Public   Facilities.   Federal   receipts   are  expected   to                                                       
           decline  from  about  $15  million  to about  $600.0  in  FY13                                                       
           and   the  Senate   Subcommittee   wanted   to  maximize   the                                                       
           amount dispersed to communities.                                                                                     
                                                                                                                                
      Modified                                                                                                                  
                                                                                                                                
        · Tourism Marketing.                                                                                                    
              • Tourism Marketing Contracts in the Office of                                                                    
                    Economic   Development   (OED):   $9.3  million   UGF                                                       
                    (one-time  funding).   This  is $6.7  million   below                                                       
                    the   Governor's   $16   million    UGF   but,   when                                                       
                    combined  with  the  $2.7  million  SDPR  increment,                                                        
                    the approved   funding  level  is equivalent  to  the                                                       
                    amount received in FY12.                                                                                    
                                                                                                                                
        · To clarify funding ratios and legislative intent, ASMI                                                                
           funding (and positions) are appropriated in a language                                                               
           section of the operating budget.                                                                                     
        · Reduced the travel request in Corporations, Business                                                                  
             and Professional Licensing (CBPL) by $150.0 (from                                                                  
           $244.6 to $94.6).                                                                                                    
        · Alaska Energy Authority's $2 million GF Misc. Earnings                                                                
           appropriation    for   administration     of  the   Renewable                                                        
           Energy  Fund.  The  Senate  Subcommittee   appropriated   this                                                       
           funding    directly   from    the   Renewable   Energy    Fund                                                       
           instead of appropriating the fund's earnings.                                                                        
                                                                                                                                
      Other Actions                                                                                                             
                                                                                                                                
        · Added an Alaska Legal Services Corporation grant in                                                                   
           DCRA: $250.0 increment.                                                                                              
        · For budget clarity, CBPL was segregated into four                                                                     
           allocations:  (1) Corporations and Business licensing,                                                               
            (2) Professional Licensing, (3) Investigations, and                                                                 
           (4) Administration.                                                                                                  
        · Added $306.0 and two positions to increase and enhance                                                                
             the Technical Assistance Program and Circuit Rider                                                                 
           Program within the Alaska Energy Authority.                                                                          
                                                                                                                                
9:09:40 AM                                                                                                                    
                                                                                                                                
Senator Olson wondered how the subcommittee's recommendations                                                                   
compared with the governor's request.                                                                                           
                                                                                                                                
Mr. Grussendorf replied that that the Senate's recommendation                                                                   
was approximately $15,700,000 less than that of the governor.                                                                   
                                                                                                                                
9:10:08 AM                                                                                                                    
                                                                                                                                
OFFICE OF THE GOVERNOR                                                                                                        
                                                                                                                                
Co-Chair Hoffman stated that the subcommittee members for the                                                                   
Office of the Governor's budget were Senator Albert Kookesh,                                                                    
Senator Gary Stevens and himself.                                                                                               
                                                                                                                                
9:10:31 AM                                                                                                                    
                                                                                                                                
Mr. Grussendorf presented the subcommittee recommendations for                                                                  
the Office of the Governor. The Senate subcommittee recommended                                                                 
$32,417,800.                                                                                                                    
                                                                                                                                
      The Senate Finance Budget Subcommittee for the Office of                                                                  
      the Governor submits an Operating Budget to the Senate                                                                    
      Finance Committee for FY 13 as Follows:                                                                                   
                                                                                                                                
      Budget Action                                                                                                           
                                                                                                                                
      The Senate  Finance  Budget  Subcommittee   on  the Office  of  the                                                       
      Governor submits an operating budget for FY13 as follows:                                                                 
                                                                                                                                
      The  Subcommittee    adopted   the  Governors'    request   with  2                                                       
      changes.                                                                                                                  
                                                                                                                                
      •    Changed    the   $3.0   million    for   DVSA   to   OTI   and                                                       
           added intent language.                                                                                               
                                                                                                                                
      •    Reduced the personal services line by $250.0 in  the                                                                 
           Executive Office.                                                                                                    
                                                                                                                                
9:11:32 AM                                                                                                                    
                                                                                                                                
LEGISLATURE                                                                                                                   
                                                                                                                                
Mr. Grussendorf detailed the subcommittee recommendations for                                                                   
the Legislature.                                                                                                                
                                                                                                                                
      The    Senate    Finance     Budget     Subcommittee     for    the                                                       
      Legislature's   Operating   Budget  submits  this   recommendation                                                        
      to the Senate Finance Committee for FY 11 as follows:                                                                     
                                                                                                                                
      Fund Source      13 Gov Amd+     Sen Sub     Difference                                                           
                                                                                                                                
      General Funds $75,251.5          $73,004.0 ($2,247.5)                                                                     
      Federal Funds 0                  0           0                                                                            
      Other Funds      $379.5          $403.0      $23.5                                                                        
                                                                                                                                
      Positions        13 Gov Amd+     Sen Sub     Sen to Gov                                                           
      PFT              250             251         1                                                                            
      PPT              284             284         0                                                                            
      Temp             0               0           0                                                                            
                                                                                                                                
      Budget Action                                                                                                           
                                                                                                                                
      The  Senate  Finance   Budget  Subcommittee   on  the  Legislature                                                        
      submits an Operating budget for FY13 as follows:                                                                          
                                                                                                                                
      Accepted the Legislatures amended proposal                                                                              
                                                                                                                                
      •    Reduced   budget  by  $1,555.0  in  the  Legislative  Finance                                                        
           to be split between House and Senate. Also reduced                                                                   
           $500.0 from Committee expenses.                                                                                      
      •    Increases   for  personal  services,   travel  and  per  diem,                                                       
           dues rent and lease costs.                                                                                           
      •    Added a new attorney in the legal and research                                                                       
           allocation.                                                                                                          
      •    Added a intake secretary in the Ombudsman allocation                                                                 
      •    One time funds for the CSG National Conference in                                                                    
           Alaska.                                                                                                              
                                                                                                                                
9:13:02 AM                                                                                                                    
                                                                                                                                
UNIVERSITY                                                                                                                    
                                                                                                                                
Mr.  Grussendorf   presented   the  subcommittee   recommendations    for                                                       
the  University   of  Alaska's   budget.   He  stated  that  the   Senate                                                       
subcommittee   recommended   $691,550,400,   which  was  an  increase  of                                                       
$4,542,000   million  in general  funds.  He  noted  that  federal  funds                                                       
recommended    were   $147,944,300,     which   was   an   increase    of                                                       
$750,000.   He  explained   that   other  funds   were  equal   to  those                                                       
requested   by the  governor   at  $86,334,300.   He noted   an increase                                                        
of  26  positions.   The  subcommittee   met  with  the  university   and                                                       
took  the  budget   proposed   by  the  governor   and  proposed   report                                                       
recommendations   of  $250,000   general  funds  to  the  University   of                                                       
Alaska  Anchorage,   Alaska  Education  Policy  Research,   Institute  of                                                       
Social  and  Economic  Research  (ISER).  He  highlighted   the increase                                                        
of   $250,000   in  general   funds   to   the   University   of   Alaska                                                       
Fairbanks,   Indigenous   Studies   PhD  and  Alaska   Native  Knowledge                                                        
Network.  Lastly,   he noted  the  addition  of  $80.6  thousand  to  the                                                       
University of Alaska Southeast Honors program.                                                                                  
                                                                                                                                
9:15:00 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF FISH AND GAME                                                                                                   
                                                                                                                                
Senator   Olson  stated   that  the  subcommittee    for  Department   of                                                       
Fish   and  Game   (DF&G)   consisted   of  Senator   Hoffman,   Senator                                                        
Stevens, Senator Wagoner, Senator Huggins and himself.                                                                          
                                                                                                                                
9:15:29 AM                                                                                                                    
                                                                                                                                
DENNISE   LICCIOLI,   STAFF,   SENATOR   DONNIE   OLSON   presented   the                                                       
subcommittee recommendations for DF&G.                                                                                          
                                                                                                                                
      The Sub-Committee for the Department of Fish & Game submits                                                               
      an operating budget recommendation and report to the Senate                                                               
      Finance Committee for FY13 as follows:                                                                                    
                                                                                                                                
      Fund Source                                                                                                             
                 12 Mgt Plan   Gov Amd   Sen Sub   Difference                                                           
      GF           $80,617.9    $85,279.4  $87,899.0 $2,619.6   3%                                                              
      Federal        62,199.7     62,346.0   62,346.0     0                                                                     
      Other         56,317.2     61,684.1   61,684.1     0                                                                      
                                                                                                                                
      Total        $199,134.8   $209,309.5   $211,929.1                                                                         
                                                                                                                                
                                                                                                                                
      Position Summary                                                                                                        
                                                                                                                                
                 12 Mgt Plan Gov Amd   Sen Sub                                                                            
      PFT             924     911          911                                                                                  
      PPT             757     711           711                                                                                 
      Temp             68      68            68                                                                                 
                    -------    -------   -------                                                                                
      Total         1,749      1,690     1,690                                                                                  
                                                                                                                                
      Personnel                                                                                                               
                                                                                                                                
      The authorized position count for the department was                                                                      
      reviewed; the Sub-Committee kept the overall number of                                                                    
      positions the same as in the Governor's Amended request,                                                                  
      although the department did delete many long time vacant                                                                  
      positions as they built their FY13 Adjusted Base.                                                                         
                                                                                                                                
      Budget Action                                                                                                           
                                                                                                                                
              · Held 5 public meetings with the department to                                                                   
                 discuss and explain the budget;                                                                                
              · Adopted the FY13 Adjusted Base; and                                                                             
              · Reviewed each of the increments and decrements                                                                  
                 submitted by the Governor.                                                                                     
                                                                                                                                
      The sub-committee accepted the Governor's budget as                                                                       
      submitted, except for one amendment that was submitted late                                                               
      on March 8; and except for changing one item to a "one time                                                               
      item" and two other items to "short term" items.  The sub-                                                                
      committee added $2,619.6 of GF for various projects                                                                       
      throughout the State.  The majority of these projects were                                                                
      added to the Commercial Fisheries division; one each was                                                                  
      added to Sport Fisheries, Wildlife Conservation, and State                                                                
      Subsistence. These are the additions done by the sub-                                                                     
      committee:                                                                                                                
                                                                                                                                
        · Chilkat Lake Productivity Program $60.0                                                                               
        · Nushagak River Coho & Pink Salmon Escapement $95.0                                                                    
        · Salmon Lake Nutrient Enrichment $162.5                                                                                
        · Hobson Creek Hatchery Operations $337.5                                                                               
        · Salmon Enhancement Norton Sound Region $250.0                                                                         
        · Salmon Fishery Enhancement in Norton Sound $190.0                                                                     
        · Nome Subdistrict Chum Rehabilitation $100.0                                                                           
        · Niukluk River Chinook Rehabilitation $150.0                                                                           
        · Nome River Salmon Rehabilitation $50.0                                                                                
        · Genetics Work on Chinook Salmon Westward Region $234.0                                                                
        · Rehabilitation & Enhancement Chinook Salmon $295.0                                                                    
        · Habitat Enhancement Work in the Southcentral Region                                                                   
           $245.0                                                                                                               
        · Regional Hub Subsistence Research $450.6                                                                              
                                                                                                                                
      The sub-committee also changed the name of the State                                                                      
      Subsistence allocation to State Subsistence Research to                                                                   
      better reflect the activities of the allocation.                                                                          
                                                                                                                                
9:16:54 AM                                                                                                                    
                                                                                                                                
Senator Olson commented on the $2.6 million increase in the                                                                     
budget for DF&G, which he attributed to program costs.                                                                          
                                                                                                                                
9:17:30 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                                      
                                                                                                                                
Senator Olson thanked the members of the subcommittee for the                                                                   
Department of Health and Social Services (DHSS).                                                                                
                                                                                                                                
9:17:56 AM                                                                                                                    
                                                                                                                                
Ms. Liccioli presented DHSS subcommittee budget recommendations.                                                                
                                                                                                                                
      The Sub-Committee for the Department of Health & Social                                                                   
      Services submits an operating budget recommendation and                                                                   
      report to the Senate Finance Committee for FY13 as follows:                                                               
                                                                                                                                
      Fund Source                                                                                                             
                 12 Mgt Plan        Gov Amd     Sen Sub       Difference                                                
      GF         $1,222,328.6     $1,290,507.3  $1,290,728.7 $221.4                                                             
      Federal    $1,148,399.9     $1,229,126.5  $1,229,126.5  0.0                                                               
      Other      $99,460.2       $101,528.7    $101,598.7     $70.0                                                             
                                                                                                                                
      Total      $2,470,188.7     $2,621,162.5  $2,621,453.9                                                                    
                                                                                                                                
      Position Summary                                                                                                        
                                                                                                                                
                 12 Mgt Plan      Gov Amd    Sen Sub                                                                      
      PFT           3,510       3,459       3,458                                                                               
      PPT              76          65             65                                                                            
      Temp            104         104            103                                                                            
                                                                                                                                
      Total         3,690       3,628          3,626                                                                            
                                                                                                                                
      Personnel                                                                                                               
                                                                                                                                
      The  authorized    position    count   for  the   department    was                                                       
      reviewed;  the  sub-committee    reduced  the  overall   number  by                                                       
      two from the Governor's amended request.                                                                                  
                                                                                                                                
      FY 2013  Senate  Finance  Sub-Committee   Budget  Recommendations                                                         
      for H&SS /March 20, 2012                                                                                                  
                                                                                                                                
      Budget Action                                                                                                             
                                                                                                                                
      •    Held  7  public  meetings  with  the  department   to discuss                                                        
           and explain the budget;                                                                                              
      •    Adopted the FY13 Adjusted Base; and                                                                                  
      •    Reviewed    each   of    the   increments    and   decrements                                                        
           submitted by the Governor, including amendments.                                                                     
                                                                                                                                
      The GF  in  this budget   was increased   from  the FY13  adjusted                                                        
      base,  predominately   due   to  Medicaid.   Medicaid  growth   and                                                       
      projections   increased  the  budget   $130.9  million   in  total,                                                       
      $45.3  million  of which  is GF.   Another  $129.4  million   was a                                                       
      fund source  change  from  federal  to  GF due  to the  changes  in                                                       
      the FMAP rate.                                                                                                            
                                                                                                                                
      Another  $6.6  million  of  GF  increases  are  due  to  growth  in                                                       
      adult  public  assistance,  general   relief,  PFD hold  harmless,                                                        
      and increased screening of newborns.                                                                                      
                                                                                                                                
      Other  increases  were  made  in  other  areas,  which  we believe                                                        
      to be  basic  and  integral   to the  services   provided  by  this                                                       
      budget,   and   consider    them   to   be   essential    to   what                                                       
      government   does  for   its  citizens.     And   so  this   budget                                                       
      proposal  funds  basic  support  needed  for  children,  the  frail                                                       
      and  other   Alaskans   who   cannot   provide   for   themselves.                                                        
      Notable increases that are approved include:                                                                              
                                                                                                                                
      •    Funding    for   the   LIHEAP    and   AKHAP   programs    was                                                       
           increased $2.6 million                                                                                               
      •    Alaska  Complex   Behavior  Collaborative   was funded   for a                                                       
           full year $650.0                                                                                                     
      •    School Based Suicide Prevention $450.0                                                                               
      •    Education and Voucher Program $200.0                                                                                 
      •    Chlamydia Screening and Early Treatment $200.6                                                                       
      •    Immunizations for Children and Seniors $700.0                                                                        
      •    Stabilize Nursing Grantees $990.0                                                                                    
      •    Grave   Shift  Coverage   for  Juvenile  Justice   Facilities                                                        
           $500.0                                                                                                               
      •    Senior In-Home Services Grants $500.0                                                                                
                                                                                                                                
      A 10%  reduction  to GF  was  applied  to most  of the  increments                                                        
      requested  by  the Governor   if they  were  due  to  new programs                                                        
      or program expansion.                                                                                                     
                                                                                                                                
      The  Commissioner's   Office  was  reduced  by  $225.0  of  GF  due                                                       
      to moving   total  funds  of  $403.5  into  the  contractual   line                                                       
      for  legal  and  judicial   services  and  projects   such  as  the                                                       
      Health  Insurance  Exchange.    Policy  changes  need  to have  the                                                       
      Legislature    involved,     and   the    Governor    specifically                                                        
      declined   the   $1  million    of  federal    funds   which   were                                                       
      available for this purpose.                                                                                               
                                                                                                                                
      Please  see  the  attached   reports  for  the  details   on  these                                                       
      and other budget changes.                                                                                                 
                                                                                                                                
      It  is  our  intention   to  allow   Legislative   Finance   to  do                                                       
      technical adjustments if any are needed.                                                                                  
                                                                                                                                
      FY 2013  Senate  Finance  Sub-Committee   Budget  Recommendations                                                         
      for H&SS /March 20, 2012                                                                                                  
                                                                                                                                
      Items of Concern                                                                                                        
                                                                                                                                
      Clearly,  the  biggest  concern  for this  budget  is  the size  of                                                       
      the budget   itself,  and  whether  it  can  be  sustained.    This                                                       
      budget  funds  some  of  the  most  essential  services   of  state                                                       
      government  and  not  only  are  the  costs  of  all the  programs                                                        
      escalating,   but  in addition,   there  continues   to  be  growth                                                       
      in  the   programs    as  the   elderly   population    increases,                                                        
      poverty   levels   increase,   and  substance   abuse   and   other                                                       
      behavioral health problems abound.                                                                                        
                                                                                                                                
      Substance  abuse,  suicide  and  other  behavioral   health  issues                                                       
      are  of significant   concern.    Adult   obesity  prevalence   has                                                       
      doubled  in  Alaska  over the  past  two  decades  and  an obesity                                                        
      prevention   program   is   necessary   to   prevent   drastically                                                        
      increased  future   medical  costs.   No  additional  funding   has                                                       
      been provided   in this  budget  for  obesity  prevention.    Since                                                       
      these  are GF  funded,  it  is hard  to  make room  for  the  needs                                                       
      of these   programs  when  Medicaid   continues  to  grow  and  use                                                       
      the GF resources.                                                                                                         
                                                                                                                                
      Finally,  the  Tobacco  Cessation   Fund  is  now  drawing  on  the                                                       
      surplus   that  was  created   in   the  early   years  while   the                                                       
      program  was  gearing   up.    The  Fund  has  a  healthy  balance                                                        
      now,  but  at  the current   rate  of  spending   and the  current                                                        
      rate  of  revenues,   something  will   have  to  be  done  in  the                                                       
      next  5 to  8  years.   Several   options  exist  besides  cutting                                                        
      back  on  the  program  -  one  of  the  most  successful   in  the                                                       
      State  -  including   increasing   revenues,   and   supplementing                                                        
      the program  with  GF.   It is  premature  to  take any  action  at                                                       
      this  time,   but   in  a  few   years,   some  changes   will   be                                                       
      necessary.                                                                                                                
                                                                                                                                
9:21:25 AM                                                                                                                    
                                                                                                                                
Ms.  Liccioli   remarked   on  the  size   of  the  budget,   attributed                                                        
largely    to    the   cost    of    Medicaid,    which    was   growing                                                        
exponentially.   She  stated  that  the  high  cost  of  Medicaid   meant                                                       
less  funding   for  other   programs   directed  at   substance   abuse,                                                       
suicide,   and   other  behavioral    health   problems   that  were   of                                                       
interest  to  others  around  the state.  She  highlighted   the tobacco                                                        
cessation   fund because   the fund's   budget  was  spending  more  than                                                       
it  received  in  revenue,  thus  drawing  on  the reserve   built  up at                                                       
the program's inception.                                                                                                        
                                                                                                                                
9:22:49 AM                                                                                                                    
                                                                                                                                
Senator  Ellis  queried   the meaning   of the  "Education   and Voucher                                                        
Program."    Ms.   Liccioli   replied    that   the   program   provided                                                        
vouchers  to  foster  children  to  secure  education  and  training  for                                                       
vocational or post-secondary education.                                                                                         
                                                                                                                                
9:23:28 AM                                                                                                                    
                                                                                                                                
Senator   Ellis  queried   the  outcome   of  the  Alzheimer's   Disease                                                        
Resource Agency grants in the department's budget.                                                                              
                                                                                                                                
Senator   Olson  returned   to  the  prior  point  and  noted   that  the                                                       
vouchers  in  the  Education  and  Voucher   Program  were  specifically                                                        
for public education.                                                                                                           
                                                                                                                                
Ms.  Liccioli  stated  that  there  was no  additional  funding  for  the                                                       
Alzheimer's Disease Resource Agency program.                                                                                    
                                                                                                                                
9:24:20 AM                                                                                                                    
                                                                                                                                
Senator  Ellis  echoed  concern  about  the  unmet  needs  for substance                                                        
abuse  prevention   and  treatment.   He  agreed  that   the  needs  were                                                       
inadequately funded in the subcommittee's recommendation.                                                                       
                                                                                                                                
9:24:29 AM                                                                                                                    
                                                                                                                                
Co-Chair    Hoffman   stressed    the   importance    of   funding    the                                                       
substance    abuse   treatment    programs.   He   and   Senator    Ellis                                                       
believed   that  the  additional   funding  in  the  area  of  substance                                                        
abuse  treatment   and prevention   would  result  in  fewer  inmates  in                                                       
Alaska's overcrowded prison systems.                                                                                            
                                                                                                                                
9:24:56 AM                                                                                                                    
                                                                                                                                
Senator  Thomas  wondered  if  the  Human  Services  Community  Matching                                                        
Grant  funding  was  included   in the  recommendations.    Ms. Liccioli                                                        
replied that funding for the grant was unchanged.                                                                               
                                                                                                                                
9:25:32 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF PUBLIC SAFETY                                                                                                   
                                                                                                                                
Senator   Olson  thanked  the  members   of  the  Department   of  Public                                                       
Safety (DPS) subcommittee.                                                                                                      
                                                                                                                                
9:25:57 AM                                                                                                                    
                                                                                                                                
SYDNEY  SEAY,  STAFF,   SENATOR  DONNIE   OLSEN,  presented   the  budget                                                       
recommendations for DPS.                                                                                                        
                                                                                                                                
The  Senate   Finance   Budget  Subcommittee    for  the  Department   of                                                       
Public   Safety   submits   the  following    FY  13  Operating    Budget                                                       
recommendation and report to the Senate Finance Committee:                                                                      
                                                                                                                                
                    FY13 Adj                                   Difference                                                   
      FUND SOURCE       Base     Gov Amd      House    Sen Sub      (G-S)                                           
      Unrestricted                                                                                                              
                   $154,007.1 $164,565.8 $164,397.1 $164,362.3     $203.5                                                       
      GF                                                                                                                        
      Designated                                                                                                                
                    $7,876.2    $7,322.7   $7,322.7   $7,322.7       $0.0                                                       
      GF                                                                                                                        
      Other         $20,138.5 $19,948.4 $19,948.4 $19,948.4          $0.0                                                       
      Federal       $12,042.3 $10,967.5 $10,967.5 $10,967.5          $0.0                                                       
                                                                                                                                
      Total        $194,064.1 $202,804.4 $202,635.7 $202,600.9     $203.5                                                       
                                                                                                                                
                                                                                                                                
                    FY13 Adj                                   Difference                                                   
      POSITIONS                  Gov Amd      House    Sen Sub                                                          
                        Base                                        (G-S)                                                     
      PFTs               876        879        878         878         -1                                                       
      PPTs                16         16         16         16          0                                                        
      Temps               14         14         14         14          0                                                        
                                                                                                                                
      Total              906        909        908         908         -1                                                       
                                                                                                                                
                                                                                                                                
      The  Subcommittee   met  with  the  Department   three   (3)  times                                                       
      before closeout, and reviewed the following items:                                                                        
                                                                                                                                
      1.   The FY12 Management Plan,                                                                                            
      2.   The FY13 Adjusted Base,                                                                                              
      3.   Increments,   decrements,   and  budget  amendments  proposed                                                        
           by  the Governor,                                                                                                    
      4.   The  House  Finance   Budget  Subcommittee   closeout   report                                                       
           that funded 75% of VPSO funding and removed funding                                                                  
           for the Lab maintenance position,                                                                                    
      5.   The   House    Full   Finance    Committee    action,    which                                                       
           restored  100% VPSO funding. The lab maintenance                                                                     
           technician position was not restored to the  budget.                                                                 
                                                                                                                                
      BUDGET ACTION                                                                                                             
                                                                                                                                
      The  Subcommittee   authorized   $203.5   less  in  general   funds                                                       
      and  one (1)  less  employee   than  the  Governor's   FY13  budget                                                       
      request.  Following are the action highlights:                                                                            
                                                                                                                                
      APPROVED                                                                                                                  
                                                                                                                                
      Alaska State Troopers                                                                                                     
      •    One  new  trooper   for  VPSO  support   to be  stationed   in                                                       
           Juneau $215.0 GF                                                                                                     
      •    24  hour   dispatch  and   prisoner  transport   services   in                                                       
           the City of Kotzebue $75.0 GF                                                                                        
      •    Replacement     funds   for   Bureau    of   Highway    Patrol                                                       
           $1,900.0 GF                                                                                                          
                                                                                                                                
      Village Police Safety Officer Program                                                                                     
      •    Contract for 15 new VPSO positions $2,209.8 GF                                                                       
      •    Establish    VPSO/VPO    twelve   week    training   programs                                                        
           $500.0 GF                                                                                                            
                                                                                                                                
      Laboratory Services                                                                                                       
      •    Facilities    maintenance   position    for  new   laboratory                                                        
           $92.0 GF                                                                                                             
                                                                                                                                
      Council  on Domestic   Violence  and  Sexual  Assault  - increased                                                        
      funding for:                                                                                                              
      •    Operations   costs   for  currently   funded   DVSA  programs                                                        
           $475.5 GF                                                                                                            
      •    Expanded DVSA prevention $250.0 GF                                                                                   
      •    CDVSA   batterer's  intervention   program   data  collection                                                        
           $50.0 GF                                                                                                             
      •    Planning   and  coordination   efforts  for  DVSA  initiative                                                        
           $55.0 GF                                                                                                             
                                                                                                                                
      Criminal Records and Identification                                                                                       
      •    Maintain current level of service $200.0 GF                                                                          
                                                                                                                                
      DENIED                                                                                                                    
                                                                                                                                
      Alaska Wildlife Troopers                                                                                                  
      •    Civilian   pilot   and  operating   costs  for  new  interior                                                        
           helicopter 296.8 GF                                                                                                  
      •    Office equipment for new helicopter pilot 6.7 GF                                                                     
                                                                                                                                
      ADDED                                                                                                                     
                                                                                                                                
      •    The  subcommittee   added   one-time  funding   of  $100.0  GF                                                       
           to the Victims for Justice Appropriation                                                                             
                                                                                                                                
9:29:48 AM                                                                                                                    
                                                                                                                                
Senator Olson remarked that the trooper and helicopter operation                                                                
funding was removed from the budget recommendation. He stated                                                                   
that the plan was for the private sector to fund the gap.                                                                       
                                                                                                                                
9:30:37 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF ADMINISTRATION                                                                                                  
                                                                                                                                
Senator Ellis invited Jeff Rogers to present the subcommittee                                                                   
recommendations for the Department of Administration (DOA).                                                                     
                                                                                                                                
9:31:02 AM                                                                                                                    
                                                                                                                                
JEFF ROGERS, STAFF, SENATOR JOHNNY ELLIS, presented the budget                                                                  
recommendations for DOA.                                                                                                        
                                                                                                                                
      The  Senate  Finance   Budget  Subcommittee   for  the  Department                                                        
      of Administration    submits  an  operating   report  to  the  full                                                       
      Senate Finance Committee for Fiscal Year 2013 as follows:                                                                 
                                                                                                                                
      Fund Source:                                                                                                              
                                                                                                                                
                    FY12         FY13         FY 13          Difference   Difference                                  
                    Management   Governor's   Senate Sub    (Gov Amend+ (Gov Amend+                                   
                    Plan         Amended+                           to            to                                    
                                                             SenateSub)   SenateSub)                                        
      Unrestricted     $79,686.0    $84,392.0    $82,915.8   ($1,476.2)       (1.7%)                                            
      General Funds                                                                                                             
      Designated       $23,493.5    $23,947.3    $23,947.3       ($0.0)       (0.0%)                                            
      General Funds                                                                                                             
      Other Funds     $204,690.1   $213,290.0   $213,290.0       ($0.0)       (0.0%)                                            
                                                                                                                                
      Federal Funds    $4,539.4      $4,989.8     $4,989.8       ($0.0)       (0.0%)                                            
                                                                                                                                
      Total           $312,409.0   $326,619.1   $325,142.9   ($1,476.2)       (0.5%)                                            
                                                                                                                                
      Personnel:                                                                                                                
                                                                                                                                
      The Subcommittee   reviewed  the  authorized   position  count  for                                                       
      the  Department.     The   Governor's   amended   budget  proposal                                                        
      requested   one  new  position   and   transfers   five  positions                                                        
      from  DHSS,  but also  deletes  several   vacant  positions  for  a                                                       
      net   decrease   of   four   positions.    The   Subcommittee    is                                                       
      recommending  that  those  new  positions  and  deleted  vacancies                                                        
      be accepted as requested.                                                                                                 
                                                                                                                                
                        FY12 Management    FY13 Governor's    FY 13 Senate                                                
      Position Summary  Plan               Amended+           Subcommittee                                              
 Permanent Full                 1,091             1,087              1,087                                                      
      Time                                                                                                                      
 Permanent Part                    18                18                 18                                                      
      Time                                                                                                                      
 Temporary                         41                40                 40                                                      
 Total                          1,150             1,145              1,145                                                      
                                                                                                                                
      The Subcommittee   held  four  meetings  with  the Department   and                                                       
      took the following actions:                                                                                               
                                                                                                                                
      1.   Adopted the Fiscal Year 2013 Adjusted Base.                                                                          
                                                                                                                                
      2.   Reviewed   each  of the  increments,   decrements,   and  fund                                                       
           changes submitted by the Governor.  Recommends action                                                                
           on the Governor's proposal including the following:                                                                  
                                                                                                                                
      a.   Adopt Inc $1,500.0 CIP RCPT for Implementation of IRIS                                                               
      b.   Adopt Dec $112.5 GF/PR to Discontinue Databasics                                                                     
      c.   Adopt   Inc   $440.5   GRPBEN   for   Third  Party   Contract                                                        
           Increases                                                                                                            
      d.   Adopt Inc $80.0 I/A for Postage Increases                                                                            
      e.   Adopt Inc $2,500.0 I/A for Lease Costs                                                                               
      f.   Adopt   Inc  $750.0   I/A   for  Facilities    Operation   and                                                       
           Maintenance Costs                                                                                                    
      g.   Adopt Inc $80.0 PBF for Public Building Costs                                                                        
      h.   Adopt  Inc  $36.3  AOGCC  RCPTS  for Increased   Oversight  of                                                       
           Oil, Gas, and Geotherm                                                                                               
      i.   Adopt   Inc   $150.0  FED   for  John   R.  Justice   Student                                                        
           Repayment Program                                                                                                    
      j.   Adopt   Inc   $68.1    UGF   for   Additional   Support    for                                                       
           Elections                                                                                                            
      k.   Adopt  Inc  $87.5  GF/PR  for State  Operated  DMV  Office  in                                                       
           Kotzebue (+ 1 PFT)                                                                                                   
      l.   Adopt Inc $74.5 GF/PR for Server Hosting Costs                                                                       
      3.   Reviewed    each   of  the   operating    budget   amendments                                                        
           submitted by the Governor. Recommends action on the                                                                  
           Governor's proposal including the following:                                                                         
                                                                                                                                
      a.   Adopt   Inc  $800.0   UGF  for  Office   of  Public  Advocacy                                                        
           Caseload Increase                                                                                                    
      b.   Adopt   Inc  $1,000.0   UGF  for  Public   Defender  Caseload                                                        
           Increase                                                                                                             
      c.   Adopt   Inc   $340.0  FED   for  Grants   to   Crime  Victims                                                        
           through VCCB                                                                                                         
      d.   Reject  Inc  $75.0  UGF  for  Retirement   System  Trust  Fund                                                       
           Costs                                                                                                                
      e.   Reject    Inc    $1,500.0     UGF   for    ALMR    Equipment,                                                        
           Maintenance, and Training                                                                                            
      4.   Recommends   the  adoption   of  the  following   increments,                                                        
           decrements, and statements of intent proposed by                                                                     
           members of the Subcommittee:                                                                                         
                                                                                                                                
      a.   Adopt   $98.8   UGF   for   Government    Access   Television                                                        
           Program Expansion                                                                                                    
      b.   Adopt one statement of legislative intent:                                                                           
      i.   "It   is   the   intent   of   the   legislature    that   the                                                       
           Department seek full recovery of the portion of FY2013                                                               
           Alaska Land Mobile Radio system costs attributable to                                                                
                                                                                                                                
      Other Subcommittee Findings:                                                                                            
                                                                                                                                
      1.   The   Subcommittee   finds   the   Department   has  complied                                                        
      with 2012  legislative   intent  to prepare   and submit  a  report                                                       
      on  the  future  viability   of  the  Alaska   Land  Mobile   Radio                                                       
      system.    This  report   sufficiently   confirms   that  there  is                                                       
      not  a  more   cost-effective   system   available   to  meet   the                                                       
      needs  of the  State.    The  Subcommittee   also  finds  that  the                                                       
      Department   has  sufficiently   engaged   the  diverse   group  of                                                       
      ALMR  users  in evaluating   long-term   solutions.  However,   the                                                       
      Subcommittee    remains    concerned    with   the    Department's                                                        
      failure  to  implement   a  cost-share    plan.  This  failure   is                                                       
      exacerbated    by   the   present    deacquisitioning     of   many                                                       
      federally  maintained   radio  sites  to Alaska  which  guarantees                                                        
      dramatically    increased   future   costs   to   the   State   but                                                       
      without  any  guarantee   that  those   costs  will  be  equitably                                                        
      shared with federal government users.                                                                                     
      2.   The  Subcommittee   finds  that  the  Department   has  failed                                                       
      to  sufficiently    facilitate   legislative    consideration    of                                                       
      statutory  adjustments   to Alaska's   retirement  systems.    With                                                       
      the very  fast  pace  of the  90-day  legislative  session,   it is                                                       
      critical   that    the   Legislature    has   timely    access   to                                                       
      information  about  the  fiscal  impact  of  pending  legislation.                                                        
      The  subcommittee   appreciates    the  complexity   of  actuarial                                                        
      calculations,    but   any  unnecessary    delay   in   delivering                                                        
      fiscal   analysis   to  the   Legislature   is  contrary    to  the                                                       
      Department's   mission  and  significantly   impedes   responsible                                                        
      policy development.                                                                                                       
                                                                                                                                
9:33:57 AM                                                                                                                    
                                                                                                                                
Senator  Ellis   commented  that  the  subcommittee   was  pleased   that                                                       
the   department    complied   with   the   legislature's    request   to                                                       
produce  a  feasibility  study.  He  stated  that  the report  confirmed                                                        
that  Alaska  Land  Mobile  Radio  (ALMR)  provided   a suitable   system                                                       
to  meet  the  state's   needs.   He  expressed   frustration   that  the                                                       
system  did  not  serve   rural  Alaska,  but   the  recommendation   was                                                       
for  legislative   intent  directing   the  department   to recover   the                                                       
needed  funding  from  the  federal  government  to  compensate  the  use                                                       
of the system by federal agencies.                                                                                              
                                                                                                                                
Senator    Ellis    mentioned    government    access    to   television                                                        
programing.   He  pointed   out  a  request   to  increase  support   for                                                       
Gavel to Gavel by $98.8 thousand.                                                                                               
                                                                                                                                
9:35:23 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF CORRECTIONS                                                                                                     
                                                                                                                                
Senator  Ellis  explained  that  the  Department  of  Corrections   (DOC)                                                       
subcommittee   consisted    of  himself,   Senator   Linda  Menard,   and                                                       
Senator   Hollis  French.   He  noted  that   Jeff  Rogers  staffed   the                                                       
subcommittee and would present the report.                                                                                      
                                                                                                                                
9:35:42 AM                                                                                                                    
                                                                                                                                
Mr. Rogers explained the DOC budget recommendations.                                                                            
                                                                                                                                
      The Senate Finance Budget Subcommittee for the Department                                                                 
      of Corrections submits an operating report to the full                                                                    
      Senate Finance Committee for Fiscal Year 2013 as follows:                                                                 
                                                                                                                                
      Fund Source:                                                                                                            
                                                                                                                                
                    FY12         FY13         FY 13          Difference   Difference                                  
                    Management   Governor's   Senate Sub    (Gov Amend+ (Gov Amend+                                   
                    Plan         Amended+                           to            to                                    
                                                             SenateSub)   SenateSub)                                        
      Unrestricted    $247,910.6   $281,343.2   $282,665.6     $1,322.4         0.5%                                            
      General Funds                                                                                                             
      Designated       $22,266.3    $21,555.1    $21,555.1         $0.0         0.0%                                            
      General Funds                                                                                                             
      Other Funds      $14,925.0    $15,024.9    $15,024.9         $0.0         0.0%                                            
                                                                                                                                
      Federal Funds    $3,220.6      $3,251.0     $3,251.0         $0.0         0.0%                                            
                                                                                                                                
      Total           $288,322.5   $321,174.2   $322,496.6     $1,322.4         0.4%                                            
                                                                                                                                
           Personnel:                                                                                                         
                                                                                                                                
           The   Subcommittee    reviewed    the   authorized   position                                                        
           count   for  the   Department.      The  Governor's   amended                                                        
           budget   proposal   requested   199  new  positions.   192  of                                                       
           those   positions    will   staff    the  new   Goose    Creek                                                       
           Correctional   Center.    The other  7 new  positions   relate                                                       
           to "Smart Justice" initiatives.                                                                                      
                                                                                                                                
                        FY12 Management    FY13 Governor's    FY 13 Senate                                                
      Position Summary  Plan               Amended+           Subcommittee                                              
 Permanent Full                 1,508             1,699              1,699                                                      
      Time                                                                                                                      
 Permanent Part                    3                  1                  1                                                      
      Time                                                                                                                      
 Temporary                         0                  0                  0                                                      
 Total                          1,511             1,700              1,700                                                      
                                                                                                                                
           Budget Action:                                                                                                     
                                                                                                                                
           The    Subcommittee     held   four    meetings    with    the                                                       
           Department and took the following actions:                                                                           
                                                                                                                                
           1.    Adopted the Fiscal Year 2013 Adjusted Base.                                                                    
                                                                                                                                
           2.    Reviewed  each  of  the  increments,   decrements,   and                                                       
           fund        changes     submitted     by     the    Governor.                                                        
           Recommends   action    on     the     Governor's     proposal                                                        
           including the following:                                                                                             
                                                                                                                                
           a.    Adopt    Inc   $29,061.2     UGF   for    Goose    Creek                                                       
                 Correctional  Center phase-in (+ 192 PFT)                                                                      
           b.    Adopt  Inc  $350.0  UGF  for  Sex  Offender  Management                                                        
                 programs in Bethel & Mat-Su                                                                                    
           c.    Adopt  Inc  $338.9  UGF  for  DVSA  Probation  Officers                                                        
                 (+ 3       PFT)                                                                                                
           d.    Adopt  Inc   $309.1  UGF   for  Electronic   Monitoring                                                        
                 Expansion (+4 PFT)                                                                                             
           e.    Adopt   Inc  $156.0   UGF  for   Vocational   Education                                                        
                 Program  Expansion                                                                                             
           f.    Reject  Inc  $46.0  UGF  for  Increased  Population   as                                                       
           a     result of SB 222                                                                                               
           g.    Adopt  Inc   $852.7  UGF   for  Community   Residential                                                        
                 Center     Rate Increase                                                                                       
           h.    Adopt  Inc  $460.0  UGF for  Out-of-State   Contractual                                                        
                 Daily Rate Increase                                                                                            
           i.    Reject  Inc  $200.0  UGF  for  Information   Technology                                                        
                 MIS  Licensing and Support                                                                                     
           j.    Adopt  Inc  $200.0  I/A  (DVSA)  for  Year Two  of  PACE                                                       
                 Pilot Project                                                                                                  
           k.    Adopt FndChng $1,029.9 PFD CRIM to UGF                                                                         
           3.    Reviewed  each  of  the  operating   budget  amendments                                                        
                 submitted by the Governor. Recommends action on                                                                
           the  Governor's proposal including the following:                                                                    
                                                                                                                                
           a.    Adopt  Inc  $600.0  UGF  for  Community  Jails  Funding                                                        
                 Equity                                                                                                         
           4.    Recommends     the   adoption     of   the    following                                                        
                 increments, decrements, and statements of intent                                                               
                 proposed by members of the Subcommittee:                                                                       
           a.    Adopt   Inc   $1,380.5    UGF   for   Substance    Abuse                                                       
                 Treatment Program Expansion                                                                                    
           b.    Adopt   Inc    $1,562.0   UGF    for   Cordova    Center                                                       
                 Community Residential Center                                                                                   
           c.    Adopt  Inc  $1,700.0   UGF  to  Relieve   Understaffing                                                        
                 and  Prevent Lower Minimum Staffing Levels                                                                     
           d.    Adopt   Inc  $70.0  UGF   for  Partners   for  Progress                                                        
                 24/7       Sobriety Monitoring                                                                                 
           e.    Adopt    Dec   $3,174.0     UGF   to    Prevent    Over-                                                       
                 appropriation  to Out-of-State and Goose Creek                                                                 
                 Correctional Center                                                                                            
           f.    Adopt one statement of Legislative Intent:                                                                     
           i.    "Although    the    legislature    acknowledges     that                                                       
                 contract  negotiations and management decisions                                                                
                 are functions of the executive branch, the                                                                     
                 legislature     finds    that    the   Department     of                                                       
              Corrections has insufficiently contemplated  the                                                                  
                 long-term impact-including costs of litigation or                                                              
                 arbitration, officer and inmate safety, and                                                                    
                 employee     recruitment     and     retention-of     an                                                       
                 adjustment to the historical policy of shift                                                                   
                 staffing; it is therefore the intent of the                                                                    
                 legislature that the Department utilize the                                                                    
                 $1,700,000.00      appropriation      to     Population                                                        
                 Management in FY13 to maintain the status-quo                                                                  
                 shift scheduling policy."                                                                                      
                                                                                                                                
           Other Subcommittee Findings:                                                                                       
                                                                                                                                
           1.    The  Subcommittee   finds  the  Department   has  failed                                                       
           to  adequately  study  the  proposed  "blended   shift  model"                                                       
           which   would  place   a  greater   number   of  correctional                                                        
           officers   on 8-hour  shifts.    Any  cost  savings,  or  cost                                                       
           defrayment,    results    only   from   lowering    overnight                                                        
           minimum   staffing  levels.    The  Subcommittee   finds  that                                                       
           the  reduction   in  officer,   inmate,   and  public   safety                                                       
           resulting     from   lower    minimum    staffing    is    not                                                       
           consistent    with   the   Department's    primary   mission.                                                        
           Further,   the  Subcommittee    finds  that   the  Department                                                        
           has  failed  to adequately   describe  the  cost  savings  and                                                       
           has  failed  to  sufficiently   contemplate   cost  increases                                                        
           resulting   from   an  increased   employee   turnover   rate.                                                       
           Taken  together,   these  finding  suggest   that  the  change                                                       
           proposed    by   the   Department     is   potentially    more                                                       
           expensive    and  potentially    less   safe,   and  is   thus                                                       
           unadvisable.                                                                                                         
           2.    The  Subcommittee   finds  the  Department   has  failed                                                       
           to   adequately   address   the  legislative    authorization                                                        
           contained   in  SB65  (Chapter  160  SLA  2004)  to  contract                                                        
           with  municipalities   to  upgrade,  expand,  or  reconstruct                                                        
           the  correctional    facilities   in  Bethel  and  Fairbanks.                                                        
           This  failure   has  resulted   in  imminent   danger  to  the                                                       
           safety   of officers,   inmates,   and  the  public  in  those                                                       
           communities.     Every  effort  should  be  made  to exercise                                                        
           this delegated authority as soon as possible.                                                                        
           3.    The  Subcommittee    finds  the  Department    has  made                                                       
           very    satisfactory      progress    in    developing     and                                                       
           implementing    "Smart  Justice"   strategies   that   aim  to                                                       
           bend-down    the  long-term   cost-curve    by  investing   in                                                       
           programs that reduce the rate of criminal recidivism.                                                                
           4.    The  Subcommittee    finds  the  Department    has  made                                                       
           very    satisfactory      progress    in    curtailing     the                                                       
           extraordinary rise in inmate health care costs.                                                                      
                                                                                                                                
      9:39:45 AM                                                                                                              
                                                                                                                                
      Senator   Ellis   reported   to  the   committee    that  the   DOC                                                       
      subcommittee    met    frequently    and   received    plenty    of                                                       
      attention.   He stated   that  the  proposed   budget  represented                                                        
      the first   major  step  in the  state's   effort  to  implement  a                                                       
      long-term  justice   reinvestment   strategy.   He  applauded   the                                                       
      governor's  "Choose   Respect"  initiative.   He  highlighted   the                                                       
      $1.4  million  included   in the  subcommittee's    recommendation                                                        
      for  expanded  substance   abuse  treatment.   He  noted  that  the                                                       
      state  used  to  provide   for  substance   abuse  treatment,   but                                                       
      the funding was eliminated one decade ago.                                                                                
                                                                                                                                
      9:43:13 AM                                                                                                              
                                                                                                                                
      Senator  McGuire   complimented    Senator   Ellis  on  the   DOC's                                                       
      budget.   She  applauded    the  additions    to  the   governor's                                                        
      budget along with Senator Ellis' Smart Justice Initiatives.                                                               
                                                                                                                                
      9:43:40 AM                                                                                                              
                                                                                                                                
      Senator   Olson   thanked   Senator    Ellis   and   observed   the                                                       
      priority   of  opening   Goose  Creek   Correctional   Center.   He                                                       
      wondered   if    the   rural   area    correctional    facilities,                                                        
      particularly   the  Kotzebue  community   jail  were  the  subject                                                        
      of discussion in subcommittee meetings. He quoted item 2:                                                                 
                                                                                                                                
           2.    The  Subcommittee   finds  the  Department   has  failed                                                       
           to   adequately   address   the  legislative    authorization                                                        
           contained   in  SB65  (Chapter  160  SLA  2004)  to  contract                                                        
           with  municipalities   to  upgrade,  expand,  or  reconstruct                                                        
           the  correctional    facilities   in  Bethel  and  Fairbanks.                                                        
           This  failure   has  resulted   in  imminent   danger  to  the                                                       
           safety   of officers,   inmates,   and  the  public  in  those                                                       
           communities.     Every  effort  should  be  made  to exercise                                                        
           this delegated authority as soon as possible.                                                                        
                                                                                                                                
      Senator   Ellis   relayed    the   subcommittee's    emphasis    on                                                       
      community   jails.   He   applauded   the   department   on   their                                                       
      leadership.  He  recalled  the  department's   mission  of opening                                                        
      the  Goose    Creek   Correctional    Center.   The   subcommittee                                                        
      helped  the department   prioritize  upgrades   to the  Bethel  and                                                       
      Fairbanks   correctional   facilities,   as  well.  He   felt  that                                                       
      the subcommittee   stressed   the  importance  of  the  Bethel  and                                                       
      Fairbanks  facilities   during  the  DOC  hearings.  He  perceived                                                        
      that  the   department   was   singularly   focused   on  the   big                                                       
      prison  at the  expense  of ignoring   other  needs in  the  state.                                                       
      He  hoped  that  the  legislature   would  continue   to  hold  the                                                       
      department  accountable   on the  budgetary  issue.   He asked  Mr.                                                       
      Rogers to comment about the issue in Kotzebue.                                                                            
                                                                                                                                
      9:46:44 AM                                                                                                              
                                                                                                                                
      Mr.   Rogers   recounted    that   the   situation   in   Kotzebue                                                        
      resulted   from  departmental    efforts   initiated   by   a  2008                                                       
      legislative    audit.   The   audit   found   that   funding    for                                                       
      community   jails    was   unbalanced.    The   auditor   proposed                                                        
      solutions  of  equity  for the  systems.  Unfortunately,   funding                                                        
      for  Kotzebue  was  diminished   in the  effort.   He  pointed  out                                                       
      an increment   approved  to  increase  funding   and bring  all  of                                                       
      the  community   jails  to  the  same   level  with  full  funding                                                        
      necessary   to   hold   state   prisoners.    He  explained    that                                                       
      Kotzebue   was  open   and  an   ongoing   investigation    was  in                                                       
      progress.   He  stated   that   the  budget   had   an  additional                                                        
      $600,000 to close the gap.                                                                                                
                                                                                                                                
      9:47:54 AM                                                                                                              
                                                                                                                                
      Co-Chair   Hoffman  echoed   Senator   Ellis'  concern   regarding                                                        
      implementation   of  SB  65.   He  commented   on  the  deplorable                                                        
      condition   of  the  Yukon  Kuskokwim   Correctional   Center.   He                                                       
      noted  that  the   gymnasium   in  the  facility   was  used  as  a                                                       
      dormitory.  He  declared   the facility   inadequate.   He visited                                                        
      the  facility   with  the  Commissioner    of  the  Department   of                                                       
      Public  Safety  where   he  hoped  for  some  solutions   from  the                                                       
      department.   He  asserted   that   the  working   conditions   for                                                       
      those  employed  at the  Yukon  Kuskokwim  were  unsafe.  He  hoped                                                       
      to address   prison  situations,   particularly   in rural   areas,                                                       
      before the state faced another lawsuit.                                                                                   
                                                                                                                                
      9:50:13 AM                                                                                                              
                                                                                                                                
      Senator  Olson  expressed   concern  with  the  eminent  danger  to                                                       
      the officers,   inmates,   and public   in Fairbanks,   Anchorage,                                                        
      and Bethel  correctional   facilities.   He agreed  that  the  risk                                                       
      of  a lawsuit   was  concerning,   but  he  wished  especially   to                                                       
      avoid  unnecessary   harm to  the  officers,  inmates   and  public                                                       
      connected to the facilities.                                                                                              
                                                                                                                                
      9:51:09 AM                                                                                                              
                                                                                                                                
      DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                      
                                                                                                                                
      Co-Chair     Stedman      began     with      the     subcommittee                                                        
      recommendations for the Department of Transportation and                                                                  
      Public Facilities.                                                                                                        
                                                                                                                                
           The   Senate    Finance    Budget   Subcommittee     for   the                                                       
           Department    of   Transportation     &   Public   Facilities                                                        
           submits    the  following    Fiscal   Year   2013   Operating                                                        
           Budget     Recommendations     to    the    Senate    Finance                                                        
           Committee:                                                                                                           
                                                                                                                                
       Fund Source 13Adj. Base Gov.Amd.  Sen. Sub.        Difference                                                          
                                                                                                                                
           Unrestricted GF  268,251.3  271,925.0   281,627.9         3.6%                                                       
           Designated GF    73,844.0   75,635.8    68,118.1         -9.9%                                                       
           Other Funds      258,785.8  264,524.4   264,024.4         .02%                                                       
           Federal Funds    3,986.6     3,986.6    3,816.6          -4.3%                                                       
           Total            604,867.7  616,071.8   617,587.0          .2%                                                       
                                                                                                                                
                                                                                                                                
         Positions 13 Adj. Base      Gov.Amd. Sen. Sub. Difference                                                            
           PFT         3,172           3,172       3,172      0                                                                 
           PPT         409             409         409        0                                                                 
           Temp        223             227         223        -4                                                                
                                                                                                                                
           The  Subcommittee   met  with  the  Department  and  took  the                                                       
           following budget actions:                                                                                            
                                                                                                                                
           Budget Action                                                                                                        
                                                                                                                                
           Approved   the  Governor's   Amended   budget  requests   with                                                       
           the following exceptions:                                                                                            
                                                                                                                                
           •     Denied   the  request   for  additional   heating   fuel                                                       
           and   utility   costs    for  Central    ($405.7),   Northern                                                        
           ($782.5),   and Southeast   ($158.9)  Regions.    These  costs                                                       
           are   already  covered   under   the  fuel   price  'trigger'                                                        
           language in the department's Operating Budget.                                                                       
                                                                                                                                
           •     Denied   inter-agency     receipt   authority    for   4                                                       
           positions   in  Statewide   Design  &  Engineering   Services                                                        
           to   limit    spending    and   restrain    growth    of   the                                                       
           department's position count.                                                                                         
                                                                                                                                
           •     Reduced   expenditure    authority   from   the   Alaska                                                       
           Marine   Highway   System   Fund  to  $55   million   to  more                                                       
           accurately   align  with  the  agency's   projected  revenue.                                                        
           This  was  accomplished   by  replacing  $7,517.7   of  Marine                                                       
           Highway   System   funds   (code   1076)  with   $7,517.7   in                                                       
           Unrestricted General Funds (code 1004).                                                                              
                                                                                                                                
           •     Increased   the  base  fuel  budget  with  $3,482.3   of                                                       
           Unrestricted    General  Funds   to  align   total  projected                                                        
           costs     with    available     funding     and    avoid    an                                                       
           unsustainable   draw   down  of the  balance   in  the  Alaska                                                       
           Marine Highway System Fund.                                                                                          
                                                                                                                                
            •     Increased Northern Region Highways & Aviation                                                                 
              budget by $50.0 General Fund to secure ice road                                                                   
           transportation access to Northwest communities.                                                                      
                                                                                                                                
      9:53:16 AM                                                                                                              
                                                                                                                                
      Senator   Olson   queried   the  plans   of   the   Alaska   Marine                                                       
      Highway  system   related  to  high  fuel   costs  and  inadequate                                                        
      ticket  sales.   Co-Chair   Stedman  replied   that  ticket   sales                                                       
      were increasing   but  expenditures   increased  more  rapidly.  He                                                       
      highlighted  route  changes  made  by  the Alaska  Marine  Highway                                                        
      system as an attempt to lessen expenditures.                                                                              
                                                                                                                                
      9:54:05 AM                                                                                                              
                                                                                                                                
      Senator  Olson  wondered  if  the  Alaska  Marine  Highway   system                                                       
      planned to expand routes.                                                                                                 
                                                                                                                                
      Co-Chair  Stedman   replied  that  ongoing   maintenance   and  the                                                       
      procurement   of  new  and  efficient   ships  were  the  system's                                                        
      priorities.                                                                                                               
                                                                                                                                
      9:54:24 AM                                                                                                              
                                                                                                                                
      Senator  Ellis   recalled   a conversation    with  a  constituent                                                        
      regarding   the   resurfacing    of   roadbeds   in   Alaska   with                                                       
      alternative  substances.   He  wondered  if there  was  discussion                                                        
      regarding road material.                                                                                                  
                                                                                                                                
      Co-Chair   Stedman   replied   that  discussions    regarding   the                                                       
      durability  of  the  rock  used in  the  road  surfacing  material                                                        
      had   occurred   in   subcommittee    meetings.    He   stated   no                                                       
      immediate   solution    to  the   problem,    and  furthered    the                                                       
      priority  of  finding  the  ideal  material   to  provide  a  long-                                                       
      term solution for road resurfacing.                                                                                       
                                                                                                                                
      9:56:09 AM                                                                                                              
                                                                                                                                
      Senator  McGuire   suggested   innovative   solutions  to  utilize                                                        
      the  transportation    needs   of  the   state.   She  proposed   a                                                       
      northwest  ferry  passage   to address   declining  revenues.   She                                                       
      highlighted   the   tourism    opportunities    provided   by   the                                                       
      Alaska Marine Highway system.                                                                                             
                                                                                                                                
      Co-Chair   Stedman  clarified    that  revenues   for  the   system                                                       
      were increasing.   Expenditures   were  rising  more  quickly  with                                                       
      the   high   cost   of   fuel.   Additional    challenging    costs                                                       
      included  ship  maintenance   and  labor  costs.   He stated   that                                                       
      the  subcommittee   worked  with  the  department   on  control  of                                                       
      the  expenditures.   He  added  that  the  Alaska  Marine  Highway                                                        
      employed  new   technology   in  their  older   boats  to  address                                                        
      fuel efficiency.                                                                                                          
                                                                                                                                
      9:58:28 AM                                                                                                              
                                                                                                                                
      Senator  McGuire   expressed   that  the  Alaska   Marine  Highway                                                        
      system  was an  undervalued  asset  in  the  state.  She advocated                                                        
      for  collaboration   with  British   Columbia  and  Washington   to                                                       
      bring  the ferry   systems  into  alignment  and  provide  further                                                        
      revenue.                                                                                                                  
                                                                                                                                
      9:59:23 AM                                                                                                              
                                                                                                                                
      Senator   Olson   expressed   concern   regarding    the  deferred                                                        
      maintenance   of  airports.   He  queried  solutions   to  funding                                                        
      deferred maintenance projects for airports.                                                                               
                                                                                                                                
      Co-Chair Stedman deferred to his committee aide.                                                                          
                                                                                                                                
      10:00:17 AM                                                                                                             
                                                                                                                                
      Senator  Olson  offered   to  meet  with  Co-Chair  Stedman   about                                                       
      the issue.                                                                                                                
                                                                                                                                
      10:00:32 AM                                                                                                             
                                                                                                                                
      DEPARTMENT OF REVENUE                                                                                                   
                                                                                                                                
      Co-Chair   Stedman   explained   the   Department    of  Revenue's                                                        
      (DOR) budget recommendations.                                                                                             
                                                                                                                                
           The   Senate    Finance    Budget   Subcommittee     for   the                                                       
           Department    of   Revenue   submits   the   following    FY13                                                       
           Operating   Budget  Recommendations   to  the Senate  Finance                                                        
           Committee:                                                                                                           
                                                                                                                                
     Fund Source 13 Adj Base     Gov Amd     Sen Sub        Difference                                                        
                                                                                                                                
           Unrestricted GF   $31,020.5    $31,833.9      $31,833.9  $0                                                          
           Designated GF     $ 9,549.9     $9,615.1      $ 9,615.1  $0                                                          
     Other Funds      $195,767.6    $213,078.6   $208,342.3  $-4,736.3                                                          
           Federal Funds     $74,669.8       $74,884.2   $74,884.2  $0                                                          
           0                                                                                                                    
           Total  $311,007.8 $329,411.8  $324,675.5  $ -4,736.3                                                                 
                                                                                                                                
           Positions   13 Adj Base Gov Amd   Sen Sub    Difference                                                            
           PFT       875        883        881          -2          0                                                           
           PPT        36         36         36           0          0                                                           
           Temp      19          19         19           0          0                                                           
           Total     930        938        936          -2          0                                                           
                                                                                                                                
                                                                                                                                
           The  Subcommittee   met  with  the  Department  and  accepted                                                        
           the   Governor's    amended   budget   with   the   following                                                        
           exceptions:                                                                                                          
                                                                                                                                
           Budget Action                                                                                                        
                                                                                                                                
           ALASKA HOUSING FINANCE CORP OPERATIONS                                                                               
           •     Denied  a $2,476,300   increment  in  CIP  receipts  for                                                       
           additional    operating   costs   for   the  Alaska   Gasline                                                        
           Development Corporation.                                                                                             
                                                                                                                                
                                                                                                                                
           ALASKA PERMANENT FUND CORP OPERATIONS                                                                                
           •     Denied    a   $185,000    increment    in   Corporation                                                        
           Receipts    for   merit   based    and   vacancy   management                                                        
           increases.                                                                                                           
                                                                                                                                
           •     Denied    a   $155,000    increment    in   Corporation                                                        
           Receipts for due diligence increases.                                                                                
                                                                                                                                
           •     Reduced  the  request  for  two new  exempt  positions.                                                        
           The   department   requested   a   fixed  income   investment                                                        
           officer   and an  accountant   to be  funded  with  Permanent                                                        
           Fund   receipts   at  $205,000   and  $90,000   respectively.                                                        
           The  subcommittee   approved   the  fixed  income  investment                                                        
           officer position and denied the accountant position.                                                                 
                                                                                                                                
           •     Denied   the  $230,000   request   in   Permanent   Fund                                                       
           receipts to fund a co-investment position.                                                                           
                                                                                                                                
10:02:31 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF LAW                                                                                                             
                                                                                                                                
Co-Chair   Stedman  discussed   the subcommittee    recommendations   for                                                       
the  Department   of Law  (DOL).   He stated   that  the  recommendation                                                        
advocated   for  $2,900,000  or  3  percent  less  than  the  governor's                                                        
amended budget.                                                                                                                 
                                                                                                                                
           The Senate Finance Budget Subcommittee for the                                                                       
           Department of Law submits the following FY13 Operating                                                               
           Budget Recommendations to the Senate Finance                                                                         
           Committee:                                                                                                           
                                                                                                                                
                           13 Adj                                                                                             
      Fund Source     Base        Gov Amd      Sen Sub     Difference                                                   
                                                                                                                                
           Unrestricted                                                                                                         
                           $54,448.1                                                                                            
           GF                          $65,081.2    $62,181.2    $ -2,900.0                                                     
                                                                                                                                
           Designated GF   $2,660.0    $2,695.0     $2,695.0    0                                                               
                                                                                                                                
           Other Funds     $26,327.5   $27,499.8    $27,499.8   0                                                               
                                                                                                                                
           Federal Funds   $1,965.9    $1,965.9     $1,965.9    0                                                               
           Total           $85,401.5   $97,241.9    $94,341.9    $ -2,900.0                                                     
                                                                                                                                
                           13 Adj                                                                                             
      Positions       Base        Gov Amd      Sen Sub     Difference                                                   
           PFT                 569          570          570          0                                                         
           PPT                   3            3            3          0                                                         
           Temp                  0            0            0          0                                                         
           Total               572          573          573          0                                                         
                                                                                                                                
                                                                                                                                
      The Subcommittee met with the Department and accepted the                                                                 
      Governor's amended budget with the following exceptions:                                                                  
                                                                                                                                
      Budget Action                                                                                                             
                                                                                                                                
                                                                                                                                
      CIVIL DIVISION                                                                                                            
        ·              Designated the funding for Outside Counsel                                                               
           Non-Gasline as One Time Increments.                                                                                  
                                                                                                                                
        ·        Denied the $2,900,000 request for Gas Pipeline                                                                 
           Outside Counsel and Experts.                                                                                         
                                                                                                                                
10:03:00 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                                 
                                                                                                                                
Senator Thomas presented the Department of Labor and Workforce                                                                  
Development's (DLWD) budget recommendations.                                                                                    
                                                                                                                                
              Worker's Compensation - Occupational Safety & Health                                                              
              Appropriation                                                                                                     
           o $220 Workers' Compensation Benefits Guaranty Fund                                                                  
              for grant expenditures for anticipated benefit                                                                    
              payments                                                                                                          
           o $103.2 Workers' Compensation Benefits Guaranty Fund                                                                
              to fund a Collections Officer.  Since its inception                                                               
              in FY05, the Workers Compensation fraud unit has                                                                  
             assessed $3.5 million in penalties, but collected                                                                  
             only 46 percent of that total.  An existing vacant                                                                 
              position will be used for this increment.                                                                         
      ·       Labor Standards & Safety                                                                                          
           o $2,000 in Unrestricted General Funds to replace                                                                    
              unrealizable Workers' Safety and Compensation                                                                     
              Administration Account authority.  These funds will                                                               
              allow the State of Alaska to avoid a federal                                                                      
              takeover of safety and health enforcement, a                                                                      
              development which the subcommittee and the                                                                        
              department vehemently oppose. This fund has a                                                                     
              structural problem arising from operating and                                                                     
             capital expenditures from the fund in prior fiscal                                                                 
             years.  Addressing this issue should be tackled in                                                                 
              FY14.                                                                                                             
      ·       Business Partnerships                                                                                             
           o $373.6 in State Training & Employment Program Funds                                                                
              to provide additional training opportunities for                                                                  
              Alaskans                                                                                                          
      · Alaska Vocational Technical Center                                                                                      
           o $226.8 UNRESTRICTED GENERAL FUNDS and $100 in                                                                      
              Designated General Funds to establish a new                                                                       
              registered nurse training program.  This program                                                                  
             will leverage additional dollars from an existing                                                                  
              federal grant awarded to the Cook Inlet Tribal                                                                    
              Council.  House did not approve this funding.  AVTEC                                                              
              will utilize an existing position to staff the                                                                    
              program.                                                                                                          
           o $250 Unrestricted general funds to replace                                                                         
              unrealized program receipts.  This is a one-time                                                                  
             item.  This matches the $250 UNRESTRICTED GENERAL                                                                  
              FUNDS included in the FY12 Supplemental Budget.                                                                   
              This item was not funded by the House.  The                                                                       
              subcommittee has inserted intent language directing                                                               
              the department to report back to the legislature on                                                               
              efforts to utilize AVTEC's grant writer position                                                                  
             funded in FY12 to secure grant funding to support                                                                  
              AVTEC's mission.                                                                                                  
                                                                                                                                
      · We propose the following decrements:                                                                                    
           o For the Division of Business Partnerships                                                                          
                ƒ$1,500 in Federal Receipts to eliminate a                                                                     
                    portion of their unrealizable federal receipt                                                               
                    authority.                                                                                                  
                                                                                                                                
      ·      We propose including the following increments:                                                                     
           o      For the division of Business Partnerships                                                                     
                 ƒ$85 in UNRESTRICTED GENERAL FUNDS as a grant to                                                              
                    the Alaska State Hospital and Nursing Home                                                                  
                    Association for the design and implementation                                                               
                    of a perioperative   nursing  program.   The  Alaska                                                        
                    Perioperative Nursing Consortium has been                                                                   
                    formed by ASHNHA and six Alaska hospitals to                                                                
                    train up to 30 operating room nurses in the                                                                 
                    first year.  This will address a growing need                                                               
                    for specialty   nurses within  Alaska,  a  need that                                                        
                    is currently  met  by using  high-priced   traveling                                                        
                    nurses  from out  of state.   Information   provided                                                        
                    by ASHNHA on the program can be found in your                                                               
                    packet.  This is a one-time item.  State funds                                                              
                    will be matched by at least $100,000 in funds                                                               
                    from the participating hospitals.                                                                           
                 ƒ$150 in UNRESTRICTED                                                                                         
                    GENERAL FUNDS for the Alaska Works Partnership                                                              
                    Rural  Apprenticeship  Outreach   Training  Program.                                                        
                    Information on this program can be found in                                                                 
                    your packet,  along  with  letters  of support  from                                                        
                    program trainees.  This is an eleven year old                                                               
                    program providing travel assistance,                                                                        
                  application and interview training, math                                                                      
                    courses  and support  services  for  rural  Alaskans                                                        
                    interested in pursuing training and employment                                                              
                  as a registered apprentice. In 2011, 93                                                                       
                    Alaskans participated in the program and 34                                                                 
                    applicants became trade apprentices.  Denali                                                                
                    Commission also provides matching funds.  This                                                              
                    is a one-time item.                                                                                         
           o For the Division of Employment Security                                                                            
                ƒ$150 in UNRESTRICTED GENERAL FUNDS for the                                                                    
                    Alaska  Works Partnership   Helmets  to Hardhats                                                            
                    Program.   Helmets  to Hardhats   helps connects                                                            
                    veterans  of the  American  Armed  Services  with                                                           
                  quality career training opportunities in                                                                      
                    construction  trades.    Over 2000  Alaska  veterans                                                        
                    received notices from the program last year                                                                 
                    informing them of training and job                                                                          
                    opportunities, and 33 veterans utilized Helmets                                                             
                    to Hardhats services to enter construction                                                                  
                    trade apprenticeships during the year.  More                                                                
                    information on this program can be found in                                                                 
                    your packet.                                                                                                
                                                                                                                                
Senator Thomas thanked the members of the subcommittee.                                                                         
                                                                                                                                
10:06:29 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF NATURAL RESOURCES                                                                                               
                                                                                                                                
Senator Thomas submitted the Department of Natural Resources                                                                    
(DNR) budget recommendations.                                                                                                   
                                                                                                                                
                                                                                                                                
                         FY12 Mgt    FY13 Adj                      Senate                                                 
                            Pln        Base    Governor   House    Subcom                                             
         Unrestricted                                                                                                           
                         76,240.0    69,635.4  78,805.8 78,818.5 78,659.2                                                       
         GF                                                                                                                     
                         26,229.9    26,070.0  25,927.6 25,927.6 25,927.6                                                       
         Designated GF                                                                                                          
                         35,353.9    35,396.1  38,378.0 38,378.0 38,378.0                                                       
         Other                                                                                                                  
                         15,961.7    14,099.3  22,552.7 22,552.7 22,552.7                                                       
         Federal Funds                                                                                                          
                                               165,664.165,676.165,517.                                                         
                         153,785.5  145,200.8                                                                                   
         Total                                     1        8        5                                                          
                                                                                                                                
Position Changes in DNR:                                                                                                      
                         FY12 Mgt    FY13 Adj  Governor            Senate                                               
                            Pln        Base               House    Subcom                                               
                            757        743        742      743       743                                                        
      PFTs                                                                                                                      
                            248        243        242      242       243                                                        
      PPTs                                                                                                                      
                            95          95        96        96       96                                                         
      Temps                                                                                                                     
                                                                                                                                
        1.                                                                                                                      
                                                                                                                                
           a. Department-wide Position Deletions and Funding                                                                    
              Redistribution:                                                                                                   
                i. $587.2 UGF:  The agency determined where funded                                                              
                    vacant positions could be eliminated in order                                                               
                    to make funding available elsewhere in the                                                                  
                    agency.  Several decrements and increments were                                                             
                    proposed and accepted.                                                                                      
           b. Office of Project Management & Permitting                                                                         
               i. $571 UGF to replace unsustainable operating                                                                   
                    budget spending from the Land Disposal Income                                                               
                    Fund.                                                                                                       
              ii. $2,000 Statutory Designated Program Receipts                                                                  
                    Large Project Receipt Authority.                                                                            
              iii. $75 UGF & $75 Inter-Agency Receipts for a                                                                    
                    Project Coordinator for the Susitna Hydro                                                                   
                    Project and Federal Resource Policy                                                                         
           c. Division of Oil & Gas                                                                                             
                i. $776.1 UGF to replace unsustainable operating                                                                
                    budget spending from the Land Disposal Income                                                               
                    Fund.                                                                                                       
               ii. $300 UGF for Arbitration of Oil and Gas Royalty                                                              
                    Issues.                                                                                                     
         d.                            Division of Mining Land and                                                              
              Water                                                                                                             
                i. $2,894.1 UGF & $105 DGF for Improving Service                                                                
                    and Permitting.                                                                                             
                i. $950 UGF for Maintaining Staffing for                                                                        
                    Permitting Initiative.                                                                                      
               ii. $150 UGF for Guide Concession Program                                                                        
                   Development.  This is a One-Time Item.                                                                       
             iii. $50 UGF for Offshore Lease Sales Oversight at                                                                 
                    Nome Gold Dredging Operations.                                                                              
              iv. $45 UGF for Sanitation Facilities at Kasilof                                                                  
                    River Special Use Area                                                                                      
           e. Division of Geologic & Geophysical Surveys                                                                        
                i. $200 UGF for Accelerated Geologic Map and                                                                    
                    Report Production & Baseline Aquifer Mapping.                                                               
           f.                      Fire Suppression                                                                             
                i.                 $516.7 UGF for Fire Suppression                                                              
                    Preparedness Fixed Cost Increases                                                                           
                i.                 $8,500.0 Federal Receipts for Fire                                                           
                   Suppression Activity Increased Federal                                                                       
                    Estimate.                                                                                                   
                                                                                                                                
      2. Modified the Governor's amended FY13 budget proposed                                                                   
        increments & decrements for:                                                                                            
           a. Resource Development Appropriation - AGIA Line                                                                    
              Items:  It is the recommendation of the subcommittee                                                              
             that proposed AGIA increments be funded as onetime                                                                 
              items in the FY13 Operating Budget:                                                                               
               i. $400 UGF OTI for AGIA Commercial Monitor &                                                                    
                    Advisor                                                                                                     
                    1. This is a $400 decrease from the                                                                         
                         Governor's request and the amount funded                                                               
                         by the House.  The FY12 Supplemental                                                                   
                         Budget contains a $1,200 multi-year carry                                                              
                         forward of unexpended funds for AGIA-                                                                  
                         related work.                                                                                          
               ii. $1,290.0 UGF OTIA for AGIA Coordinator's Staff                                                               
                    and Capacity                                                                                                
              iii. $1,150.0 UGF OTI for AGIA Contractors &                                                                      
                    Consultants                                                                                                 
      3. The Subcommittee adopts the following amendments to the                                                                
        Governor's proposed FY13 budget for the Department of                                                                   
        Natural Resources:                                                                                                      
           a. Parks & Outdoor Recreation                                                                                        
               i. $208.4 for Improving Services and Access in                                                                   
                    State Parks.                                                                                                
           b. Commissioner's Office                                                                                             
                i. $100 UGF for Support for Existing Staff Levels.                                                              
               ii. $50 UGF for Statewide Resource Development                                                                   
                   Initiatives.  This is a One-Time item.                                                                       
           c. Mining Land & Water                                                                                               
                i. $45 UGF for Sanitation Facilities at Kasilof                                                                 
                    River Public Use Area                                                                                       
      4. Differences from House Finance                                                                                         
           a. Resource Development                                                                                              
               i. AGIA Items - The Senate funds AGIA lines as                                                                   
                    onetime items, the House puts the funding into                                                              
                    the base.  This is the same structure adopted                                                               
                    in the FY12 Operating Budget.                                                                               
               ii. Guide Concession Area Program - The Senate                                                                   
                    funded the $150 UGF item that is supported by                                                               
                    the department, the governor and the Board of                                                               
                    Game.  The other body funded the item at $75                                                                
                    UGF.                                                                                                        
             iii. Parks & Outdoor Recreation - The House funded                                                                 
                    only the salary of the Lower Chatanika State                                                                
                    Recreation Area Ranger at $87.7 UGF and did not                                                             
                  fund the Southeast Region seasonal parks                                                                      
                    technician.                                                                                                 
               iv. Commissioner's Office - The House funded this                                                                
                    $150 increment as a single item.  The Senate                                                                
                    split out the marketing effort dollars from the                                                             
                    requested funds for existing personnel, and                                                                 
                    makes the marketing dollars a one-time item.                                                                
                v. Mining Land & Water:  The House did not include                                                              
                  funding for Sanitation Facilities at the                                                                      
                    Kasilof River Special Use Area.                                                                             
                                                                                                                                
      5. Intent Language                                                                                                        
           a. The Subcommittee recommends the following intent                                                                  
              language be inserted into the budget:                                                                             
                i. Statewide Resource Development Initiatives:  It                                                              
                    is the intent of the legislature that the                                                                   
                    department report back on the efficacy of                                                                   
                    marketing efforts and present a multi-year plan                                                             
                    for marketing statewide resource development                                                                
                    efforts.                                                                                                    
               ii. Land Disposal Income Fund:  It is the intent of                                                              
                    the legislature that the Administration report                                                              
                    back with 1) a plan to stabilize the Land                                                                   
                    Disposal Income Fund and 2) a report detailing                                                              
                    the effects of utilizing the fund solely to                                                                 
                    enhance state land disposal efforts.                                                                        
                                                                                                                                
   Senator Thomas thanked the members of the subcommittee.                                                                      
                                                                                                                                
10:11:35 AM                                                                                                                   
                                                                                                                                
Senator   Olson  commented   on  the  television    series  "Bering   Sea                                                       
Gold,"  which  contributed   $9.3 million  in  revenue  from  leases.  He                                                       
stated  that   his  Nome  constituents   expressed   concern   about  the                                                       
influx of people and their potential stress on social services.                                                                 
                                                                                                                                
10:12:47 AM                                                                                                                   
                                                                                                                                
ALASKA COURT SYSTEM                                                                                                           
                                                                                                                                
Senator Egan thanked the members of the Court System                                                                            
subcommittee. He presented the Court System subcommittee's                                                                      
budget recommendations.                                                                                                         
                                                                                                                                
10:13:45 AM                                                                                                                   
                                                                                                                                
JESSE KIEHL, STAFF, SENATOR DENNIS EGAN, highlighted the Court                                                                  
System's subcommittee's budget recommendations.                                                                                 
                                                                                                                                
      The Senate Finance Budget Subcommittee for the Alaska Court                                                               
      System submits an Operating Budget to the Senate Finance                                                                  
      Committee for FY 13 as follows:                                                                                           
                                                                                                                              
                    FY12 Mgt    FY13 Adj     Gov      Senate                                                                  
                       Pln        Base      Amend+    Subcom     House                                                        
 Unrestricted GF     101,089.6  104,743.1 107,287.6  106,355.7 106,421.5                                                      
 Designated GF          518.0       518.0     518.0     518.0     518.0                                                       
 Other                 2,106.0    1,196.7   1,914.5   1,914.5    1,914.5                                                      
 Federal Funds         1,675.6    1,675.6   1,675.6   1,675.6    1,675.6                                                      
 Total               105,389.2  108,133.4 111.395.7 110,463.8 110,529.6                                                       
                                                                                                                              
                                                                                                                              
 Positions                                                                                                                    
 PFTs                     758         758       768       765       764                                                       
 PPTs                      48          48        48        47        48                                                       
 Temps                     21          21        21        21        21                                                       
 Total Positions          827         827       837       833       833                                                       
                                                                                                                                
      The  Subcommittee   held  four  meetings  with  the  Court   System                                                       
      and took the following actions:                                                                                           
                                                                                                                                
      Budget Action                                                                                                             
                                                                                                                                
      The  subcommittee   accepted   the  Governor's   amended  proposal                                                        
      with the following adjustments:                                                                                           
                                                                                                                                
      •    Denied   three   requests   for  $426.2   across   the   Court                                                       
      System   for   implementing     an   increased    geographic    pay                                                       
      differential.    This  is the  second-largest   increment  request                                                        
      submitted,   but   is  not  a   contractual   obligation    of  the                                                       
      state,  nor  does  funding  it  improve  services   to  the  public                                                       
      since  the Court  System  has  seen a  drop in  staff  turnover  in                                                       
      recent years.                                                                                                             
      •    Denied    requests     in   the    appellate     courts    for                                                       
      furnishings and a staff attorney position upgrade.                                                                        
      •    Denied   a   request   for  $134.2    GF  to   add  a   second                                                       
      magistrate trainer.                                                                                                       
      •    Denied  $175.0  GF  for  computer  replacements.    The  Court                                                       
      system  has  sufficient   funds  in its  base  budget   to replace                                                        
      its  technology    and  the  subcommittee    commends   the   Court                                                       
      System's ongoing careful management.                                                                                      
      •    Denied   a  request   to  lease  a  new  custom-built    court                                                       
      space  in   Emmonak.     The   Emmonak   location   has  not   seen                                                       
      sustained   caseload    increases,   and   deficiencies    in   the                                                       
      existing space can be addressed with the landlord.                                                                        
      •    Funded   a  request   for   $50.0   GF/MH  to   continue   the                                                       
      Anchorage  Operator   Without  a  License   court,  as  a one-time                                                        
      item.    The  Court  System   should  collect   outcome   and  cost                                                       
      saving  data  to  enable  the  legislature   to  further  evaluate                                                        
      ongoing funding.                                                                                                          
      •    Reduced     a   request    for    $326.7    GF    and    three                                                       
      administrative    positions   to   $113.5   and  one   PFT   for  a                                                       
      contracts & leasing manager, Range 18A.                                                                                   
      •    Deleted   one  Permanent  Part  Time  position   added  in  FY                                                       
      12.   The  Court   System  used  domestic   violence   coordinator                                                        
      funds to expand the duties of an existing position.                                                                       
      •    Added  $176.4   GF to  pay  the  increased   lease  costs  for                                                       
      the   Nome   Courthouse.       This   cost   increase    has   been                                                       
      anticipated  for  several  years,  and  is not  avoidable  until  a                                                       
      new state office building is constructed in Nome.                                                                         
                                                                                                                                
10:16:44 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                                 
                                                                                                                                
Senator Egan thanked the members of the Department of Education                                                                 
and Early Development (DEED) subcommittee.                                                                                      
                                                                                                                                
      The  Senate  Finance   Budget  Subcommittee   for  the  Department                                                        
      of  Education    &  Early   Development    submits   an  Operating                                                        
      Budget   to  the   Senate   Finance   Committee   for   FY   13  as                                                       
      follows:                                                                                                                
                                                                                                                                
                                                                                                                                
                FY12 Mgt    FY13 Adj                 Senate                                                                   
            Pln         Base     Gov Amend+    Subcom      House                                                              
 Unrestricted GF   1,227,690.9 1,207,132.0 1,244,593.2 1,212,748.0 1,207,409.6                                                
 Designated GF        13,958.4    13,981.8    15,064.3    15,064.3    15,064.3                                                
 Other                25,058.7    25,177.5    25,087.8    25,087.8    25,087.8                                                
 Federal Funds       285,400.9   233,605.7   233.790.2   233,790.2   233,790.2                                                
 Total             1,552,108.9 1,479,897.0 1,518,535.5 1,486,690.3 1,481,351.9                                                
                                                                                                                              
                                                                                                                              
 Positions                                                                                                                    
 PFTs                      336         332         332         332         332                                                
 PPTs                       14          14          14          14          14                                                
 Temps                       7           8           8           8           8                                                
 Total Positions           357         354         354         354         354                                                
                                                                                                                                
      The Subcommittee held five meetings with the department and                                                               
      took the following actions:                                                                                               
                                                                                                                                
      Budget Action                                                                                                           
                                                                                                                                
      Accepted the Governor's amended proposal with the following                                                               
      adjustments:                                                                                                              
                                                                                                                                
      · While subcommittees do not close out on language                                                                        
        transactions, we note the governor recommended a one-time                                                               
        $30.3 million appropriation to school districts.  The                                                                   
        subcommittee strongly recommends the full Finance                                                                       
        Committee deny this request in favor of funding an                                                                      
        increase to the Base Student Allocation, as passed by the                                                               
        full senate.                                                                                                            
                                                                                                                                
      · Added a one-time $330.0 grant to the North Slope Borough                                                                
        School District for the third year of its Curriculum                                                                    
        Alignment, Integration, & Mapping project.  The resulting                                                               
        educational tools will be made available to other school                                                                
        districts in the state upon completion of the project.                                                                  
                                                                                                                                
      · Moved the base funding of $2,000.0 for the Pre-                                                                         
        Kindergarten program to a separate allocation within the                                                                
        Division of Teaching & Learning Support. The subcommittee                                                               
        found that the program is highly effective, and its                                                                     
        continued funding is a linchpin of the Moore v. State                                                                   
        settlement.                                                                                                             
                                                                                                                                
      · Added $2,000.0 to the Pre-Kindergarten program in keeping                                                               
        with the department's original plan to increase funding                                                                 
        by $2 million per year until a statewide level of $10                                                                   
        million is reached.  The department will complete the                                                                   
        grants every two years.                                                                                                 
                                                                                                                                
      ·       Added $1,000.0 to the AlaskAdvantage Education Grant                                                              
        program, bringing the funding level to $4 million.  FY 12                                                               
        need was more than $7 million, which shows the importance                                                               
        of increasing funds.  A funding level of $4 million will                                                                
        maintain the 2/3 Performance Scholarship, 1/3 needs-based                                                               
        grant ratio established in FY 12.                                                                                       
                                                                                                                                
      ·       Denied the governor's requested Alaska Housing                                                                    
        Capital Corporation fund increment for the Alaska                                                                       
        Performance Scholarship program of $2,000.0, then                                                                       
        decremented $2,900.0 AHCC from the budget base.  This                                                                   
        leaves $3.1 million remaining, an amount sufficient to                                                                  
        fund the current cohort of students (including a buffer                                                                 
        for summer term attendees not yet awarded scholarships).                                                                
        The governor committed not to use the $400 million set                                                                  
        aside for this program until an endowment structure was                                                                 
        in place. While the $400 million is likely to earn the                                                                  
        $3.1 million needed in the current fiscal year, it is not                                                               
        expected to earn the $8 million the governor requested.                                                                 
        The subcommittee recommends funding a second cohort                                                                     
        through the fiscal note to HB 104.                                                                                      
                                                                                                                                
10:18:10 AM                                                                                                                   
                                                                                                                                
Senator   Egan  stated   that  the  governor   recommended   a  one-time                                                        
$30.3    million     appropriation     to    school    districts.     The                                                       
subcommittee     strongly    recommended    that    the   full   finance                                                        
committee   deny  the  governor's   request   in  favor  of  funding   an                                                       
increase   of the  base  student   allocation   as  passed  by  the  full                                                       
Senate in SB 171.                                                                                                               
                                                                                                                                
10:18:19 AM                                                                                                                   
                                                                                                                                
Mr. Kiehl explained that the subcommittee's recommendation                                                                      
funded the governor's amended budget for DEED with relatively                                                                   
few changes.                                                                                                                    
                                                                                                                                
      Accepted  the  Governor's  amended  proposal   with  the following                                                        
      adjustments:                                                                                                              
                                                                                                                                
      •    While   subcommittees    do   not  close   out   on  language                                                        
      transactions,   we  note  the  governor   recommended   a one-time                                                        
      $30.3   million   appropriation    to  school   districts.      The                                                       
      subcommittee  strongly   recommends  the  full  Finance  Committee                                                        
      deny  this  request  in  favor  of  funding   an  increase  to  the                                                       
      Base Student Allocation, as passed by the full senate.                                                                    
                                                                                                                                
      •    Added   a  one-time   $330.0   grant   to  the   North   Slope                                                       
      Borough   School    District   for   the   third    year   of   its                                                       
      Curriculum  Alignment,   Integration,   &  Mapping  project.    The                                                       
      resulting  educational   tools  will be  made  available  to  other                                                       
      school   districts   in   the  state   upon   completion   of   the                                                       
      project.                                                                                                                  
                                                                                                                                
      •    Moved   the   base   funding   of  $2,000.0    for  the   Pre-                                                       
      Kindergarten   program   to  a  separate  allocation   within   the                                                       
      Division  of  Teaching   &  Learning  Support.   The  subcommittee                                                        
      found   that   the  program    is  highly   effective,    and   its                                                       
      continued   funding   is  a  linchpin   of  the   Moore  v.   State                                                       
      settlement.                                                                                                               
                                                                                                                                
      •    Added   $2,000.0   to   the   Pre-Kindergarten    program   in                                                       
      keeping  with   the  department's    original   plan  to  increase                                                        
      funding  by  $2 million   per  year  until  a statewide   level  of                                                       
      $10  million  is  reached.    The  department  will  complete   the                                                       
      grants every two years.                                                                                                   
                                                                                                                                
      •    Added   $1,000.0  to  the  AlaskAdvantage    Education   Grant                                                       
      program,  bringing   the funding   level  to  $4 million.    FY  12                                                       
      need  was  more  than  $7 million,   which  shows  the  importance                                                        
      of increasing   funds.    A  funding  level   of  $4 million   will                                                       
      maintain  the  2/3   Performance   Scholarship,   1/3  needs-based                                                        
      grant ratio established in FY 12.                                                                                         
                                                                                                                                
      •    Denied  the  governor's   requested  Alaska  Housing  Capital                                                        
      Corporation   fund   increment    for   the   Alaska   Performance                                                        
      Scholarship   program  of  $2,000.0,  then  decremented   $2,900.0                                                        
      AHCC  from   the  budget   base.     This   leaves   $3.1  million                                                        
      remaining,  an  amount  sufficient   to  fund the  current   cohort                                                       
      of students   (including   a  buffer  for  summer  term  attendees                                                        
      not yet  awarded   scholarships).    The  governor  committed   not                                                       
      to use  the $400  million  set  aside  for this  program  until  an                                                       
      endowment  structure  was  in  place.  While  the $400  million  is                                                       
      likely  to   earn  the   $3.1  million   needed   in  the  current                                                        
      fiscal  year,  it is  not  expected  to  earn the  $8  million  the                                                       
      governor  requested.    The  subcommittee   recommends   funding  a                                                       
      second cohort through the fiscal note to HB 104.                                                                          
                                                                                                                                
      Attached Reports (numbers and language)                                                                                   
                                                                                                                                
      1.   Agency   Totals   -   FY  13   Operating   Budget   -   Senate                                                       
           Structure                                                                                                            
      2.   Appropriation/Allocation       Summary     (GF)    -    Senate                                                       
           Structure                                                                                                            
      3.   Appropriation/Allocation     Summary  (all   funds)  -  Senate                                                       
           Structure                                                                                                            
      4.   Transaction Comparison (Adj. Base and Senate Subcom)                                                                 
      5.   Transaction Comparison (Gov. Amd+ and Senate Subcom)                                                                 
      6.   Transaction Comparison (House and Senate Subcom)                                                                     
      7.   Wordage   Report   -  FY   13  Operating   Budget   -   Senate                                                       
           Structure                                                                                                            
                                                                                                                                
10:23:00 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                      
                                                                                                                                
Senator McGuire thanked the members of the subcommittee for the                                                                 
Department of Environmental Conservation (DEC).                                                                                 
                                                                                                                                
      Fiscal Year 2013 Recommendations                                                                                          
                                                                                                                                
      The  Senate  Finance   Budget  Subcommittee   for  the  Department                                                        
      of  Environmental   Conservation   submits   an  Operating   Budget                                                       
      to the Senate Finance Committee for FY 13 as follows:                                                                     
                                                                                                                                
     Fund Source           FY 13       Sen Sub    GovAmd+ to Sen                                                        
                     GovAmd+                       Sub                                                                      
    General Funds        $21,062.8    $21,146.8        $84.0                                                                    
 Designated General      $26,967.6    $26,883.6       -$84.0                                                                    
        Funds                                                                                                                   
    Federal Funds        $24,227.8    $24,227.8         $0.0                                                                    
     Other Funds         $11,294.1    $11,294.1         $0.0                                                                    
        Total            $83,552.3    $85,552.3         $0.0                                                                    
                                                                                                                                
                                                                                                                                
      Positions            FY 13       Sen Sub    GovAmd+ to Sen                                                        
                     GovAmd+                       Sub                                                                      
         PFT                541          541             0                                                                      
         PPT                 0            0              0                                                                      
         Temp               11           11              0                                                                      
                                                                                                                                
      The Subcommittee   held  three  meetings  with  the  Department  of                                                       
      Environmental    Conservation    and   recommends   adopting    the                                                       
      Governor's   FY  13  amended   request   for  the   Department   of                                                       
      Environmental Conservation with the following change:                                                                     
                                                                                                                                
      1.   The  Subcommittee   recommends   a  fund  source   change  for                                                       
      the  Governor's    proposed   increment    in  the   Environmental                                                        
      Health  appropriation,   Laboratory  Service   allocation,  to  add                                                       
      funding   for  one   microbiologist   to   continue   support   for                                                       
      shellfish    (including     Dungeness     crab)    from    general                                                        
      fund/program receipts to unrestricted general funds.                                                                      
                                                                                                                                
      Additional Recommendations:                                                                                               
                                                                                                                                
      The Subcommittee   also  strongly   recommends   that  the Finance                                                        
      Committee   support   funding   for  the   construction   of   fish                                                       
      cleaning   stations   (TPS  #  58603v1)   to  support   the   Kenai                                                       
      River  Dipnet   fishery   in  the   FY  13  capital   budget.   The                                                       
      subcommittee    heard   testimony    from   the   Department    and                                                       
      Senator  Wagoner  about  the  health  and  safety  issues  created                                                        
      by  the   influx   of  dipnetters    and   associated   fish-waste                                                        
      created by the fishery.                                                                                                   
                                                                                                                                
10:26:20 AM                                                                                                                   
                                                                                                                                
Senator  McGuire   pointed  out  a document   distributed   to committee                                                        
members   regarding   the  oil  spill   and  hazardous   clean-up   funds                                                       
(copy  on  file).   She  highlighted   a  projected   shortfall   in  the                                                       
fund  predicted  for  2014.  She  stressed  that  the  "clean-ups"   were                                                       
essential   to   the   safety   of  Alaskans.    She  stated   that   she                                                       
provided   the  committee   samples   of   the  concerning   sites.   She                                                       
mentioned   findings  of  contamination   such  as gasoline   and  diesel                                                       
and  benzene.   She  noted  that  the  reason,   under  FY  09  actions,                                                        
removal  of  all  contaminated   soil  was  not  completed   was because                                                        
of limited   resources.  She  declared  it  an obligation   of Alaska  to                                                       
clean  up its  sites.  She  pointed  out a  statutory  requirement   that                                                       
did  not  require  the  agency  responsible   or  the state  to  pay  for                                                       
the  clean-up,  resulting  in  DEC's  unallocated   clean-up  costs.  She                                                       
noted  that  the  department   regarded  clean-up   as  a priority,   but                                                       
believed   that  either   a  change   in  statute   or  an  increase   in                                                       
funding  was  necessary  to  solve  the problem.  She  requested  a  plan                                                       
from the department.                                                                                                            
                                                                                                                                
10:28:53 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman agreed that if the state demanded that the                                                                     
federal government clean-up, the state should steward the land                                                                  
appropriately.                                                                                                                  
                                                                                                                                
10:29:17 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                   
                                                                                                                                
Senator McGuire presented the budget recommendations for                                                                        
Department of Military and Veterans Affairs (DMVA).                                                                             
                                                                                                                                
      The  Senate  Finance   Budget  Subcommittee   for  the  Department                                                        
      of  Military   and   Veterans   Affairs    submits   an  Operating                                                        
      Budget   to  the   Senate   Finance   Committee   for   FY   13  as                                                       
      follows:                                                                                                                  
                                                                                                                                
  Fund Source     FY 13 GovAmd+ Sen Sub           GovAmd+ to Sen Sub                                                    
  General            $22,048.8       $21,858.8           -$190.0                                                                
  Funds                                                                                                                         
  Federal            $51,838.3       $25,142.7         -$26,695.6                                                               
  Funds                                                                                                                         
  Other Funds        $16,556.9       $16,556.9            $0.0                                                                  
       Total         $90,444.0       $63,558.4         -$26,885.6                                                               
                                                                                                                                
  Positions       FY 13 GovAmd+ Sen Sub           GovAmd+ to Sen Sub                                                    
  PFT                   338             338                 0                                                                   
  PPT                    2               2                  0                                                                   
  Temp                   2               2                  0                                                                   
                                                                                                                                
                                                                                                                                
      The Subcommittee   held  three  meetings  with  the  Department  of                                                       
      Military  and  Veterans   Affairs  and  recommends   adopting   the                                                       
      Governor's   FY  13  amended   request   for  the   Department   of                                                       
      Military and Veterans Affairs with the following changes:                                                                 
                                                                                                                                
      1.   The  Subcommittee   concurs  with  the actions   taken by  the                                                       
      House   to   reduce    the    Governor's    FY   13   request    by                                                       
      recommending:                                                                                                             
      i.   An  increment   of $20,000   of unrestricted   general   funds                                                       
      in the  Office   of  the Commissioner    allocation  for  employee                                                        
      education  reimbursement   costs.  The  Governor's  FY  13 request                                                        
      for this  item  was for  $60,000  of  unrestricted   general  funds                                                       
      as an ongoing appropriation.                                                                                              
      ii.  A   one-time   increment    of   $100,000   of   unrestricted                                                        
      general  funds  in  the Veterans'   Services  allocation   to  fund                                                       
      increased  travel  and  outreach.  The  Governor's  FY  13 request                                                        
      for  this  item   was  for   $250,000   of  unrestricted   general                                                        
      funds as an ongoing appropriation.                                                                                        
      iii. A  decrement    of  $3,400,400   of  federal   funds   in  the                                                       
      Alaska  Aerospace  Corporation   allocation,   and a  decrement  of                                                       
      $23,295,200   of   federal   funds    in  the   Alaska   Aerospace                                                        
      Corporation    Facilities     Maintenance     allocation.     These                                                       
      appropriations are currently excess authorization.                                                                        
                                                                                                                                
      2.   The   Subcommittee   does   not  concur   with   the  actions                                                        
      taken by the House and instead recommends:                                                                                
      i.   An  increment  of  $248,600  of  unrestricted   general  funds                                                       
      in the  Veterans'   Services  allocation   to move  the  Veterans'                                                        
      Services  office  off  base.  The  Governor's  FY  13  request  for                                                       
      this item  was  for $300,000   of unrestricted   general  funds  as                                                       
      an ongoing appropriation.                                                                                                 
      i.   The  initial   startup   costs  for   moving  the  office   of                                                       
      $51,400  of  unrestricted   general  funds  are  recommended   as a                                                       
      one-time item.                                                                                                            
                                                                                                                                
      ii.  An   increment   of  $1,000,000    of  unrestricted   general                                                        
      funds  in  the  Alaska   Aerospace   Corporation   allocation   for                                                       
      the    Alaska    Aerospace     Corporation's     operations     and                                                       
      maintenance.                                                                                                              
      i.   An  increment  of  $549,000  of  unrestricted   general  funds                                                       
      in  the  Alaska   Aerospace    Corporation   allocation   for   the                                                       
      Alaska  Aerospace   Corporation's    operations   and  maintenance                                                        
      is recommended as a one-time item.                                                                                        
      iii. An   increment   of  $3,000,000    of  unrestricted   general                                                        
      funds   in   the   Alaska   Aerospace    Corporation    Facilities                                                        
      Maintenance     allocation     for     the    Alaska     Aerospace                                                        
      Corporation's facilities maintenance and operations.                                                                      
      i.   An   increment   of  $3,451,000    of  unrestricted   general                                                        
      funds   in   the   Alaska   Aerospace    Corporation    Facilities                                                        
      Maintenance     allocation     for    the    Alaska    Aerospace's                                                        
      facilities   maintenance   and  operations  is  recommended   as  a                                                       
      one-time allocation.                                                                                                      
      Additional Recommendations:                                                                                               
                                                                                                                                
      The  Subcommittee   also  recommends   that  the  Department   work                                                       
      with   the  Governor    and  introduce    a   bill  in   the   next                                                       
      legislative    session   to   clarify    authorization    of,   and                                                       
      funding for the Alaska Military Youth Academy.                                                                            
                                                                                                                                
10:35:15 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:35:56  AM                                                                                                                  
RECONVENED                                                                                                                      
                                                                                                                                
10:36:02  AM                                                                                                                  
                                                                                                                                
Co-Chair   Stedman   MOVED  to   ADOPT  all   subcommittee   reports   as                                                       
submitted. Seeing NO OBJECTION it was SO ORDERED.                                                                               
                                                                                                                                
10:36:32  AM                                                                                                                  
                                                                                                                                
Co-Chair  Stedman   MOVED  to allow   Legislative  Finance   Division  to                                                       
make  any  necessary   conforming   and  technical   changes   needed  to                                                       
draft a new Committee Substitute.                                                                                               
                                                                                                                                
10:37:12  AM                                                                                                                  
AT EASE                                                                                                                         
                                                                                                                                
10:38:23  AM                                                                                                                  
RECONVENED                                                                                                                      
                                                                                                                                
10:38:31  AM                                                                                                                  
                                                                                                                                
Co-Chair    Hoffman   thanked    the   various    chairmen    and   their                                                       
respective subcommittees.                                                                                                       
                                                                                                                                
10:39:16  AM                                                                                                                  
                                                                                                                                
Co-Chair    Stedman    MOVED   to   ADOPT    the   proposed    committee                                                        
substitute   for  CSHB   284(FIN),  Work   Draft  27-GH2599\O   (Bailey,                                                        
3/26/12). There being NO OBJECTION it was so ordered.                                                                           
                                                                                                                                
10:39:45  AM                                                                                                                  
                                                                                                                                
Co-Chair   Stedman  MOVED  to  ADOPT   SB  285  the  proposed  committee                                                        
substitute   for   CSHB  285(FIN),   Work   Draft  27-GH2599\D   (Bailey                                                        
3/26/12). There being NO OBJECTION it was so ordered.                                                                           
                                                                                                                                
10:40:14  AM                                                                                                                  
                                                                                                                                
Mr.  Grussendorf   explained  the  changes  to  the  numbers  section  of                                                       
the   bill.   He  explained    that   the   changes   incorporated    all                                                       
subcommittee   recommendations    as  presented  to  the  committee.   He                                                       
noted  four   changes  in   the  language   section  of  the   bill.  The                                                       
first  change  was  found  on  page  60,  line  20  concerning  payments                                                        
for   the  Low-Income    Home   Energy   Assistance   Program   (LIHEAP)                                                        
estimated   at  $10,620,300.   He  clarified   that  the  amount  was  an                                                       
estimate,   which  might  change.  The  second   change,  found  on  page                                                       
64,   line   17  concerning    the   department's    fuel   trigger.   He                                                       
stressed  that  the  legislature   was  not  adding  more  money  to  the                                                       
fuel  trigger,   but  instead,   changing   the  8  percent   cap  to  10                                                       
percent.   The  change   allowed   the  university   to  appeal   to  the                                                       
administration for an increased cap.                                                                                            
                                                                                                                                
Mr.  Grussendorf   continued   with  another   change   on  line  25,  an                                                       
appropriation   for  $2.9  million  to the  Office  of  the  Governor  to                                                       
cover  the  proposed   initiative   for  the  Coastal   Zone  Management                                                        
Initiative.    The  final   change   on   page   73,  line   5  included                                                        
$35,512,300   appropriated    to  the  regional   education   attendance                                                        
area   school   fund.  The   item  was   formerly   in   the  governor's                                                        
capital   budget,  but  the  committee   believed   that  it  was  better                                                       
placed   in  the  operating   budget   due  to  the  fact  that   it  was                                                       
formula driven.                                                                                                                 
                                                                                                                                
10:43:24 AM                                                                                                                   
                                                                                                                                
Mr.  Grussendorf   explained  the  changes  to  HB 285.  He  stated  that                                                       
historically   the  house  removed  the  first   project  in  the  mental                                                       
health  bill   and  removed  the  remainder.   The  Senate  then   funded                                                       
the  remainder   and  removed  the  first   project  making   the  entire                                                       
bill conference-able.                                                                                                           
                                                                                                                                
10:43:45 AM                                                                                                                   
                                                                                                                                
KAREN   REHFIELD,   DIRECTOR,    OFFICE   OF  MANAGEMENT    AND  BUDGET,                                                        
thanked   the  committee   and  staff   for  the   work  done   with  the                                                       
administration's    proposal.   She   anticipated   further   discussion                                                        
regarding   the   differences   between   the   Senate   and  the   House                                                       
committee    substitutes     in   preparation    for    the   conference                                                        
committee process.                                                                                                              
                                                                                                                                
10:44:54 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman   voiced  that  the  proposed  budget  addressed   many                                                       
issues  facing   Alaska.   He announced   the  public   hearing  process                                                        
scheduled   for   March   28,   2012.  He   stated   that   the  CS   was                                                       
available  on  the LFD  website  and  BASIS  would  link the  work  draft                                                       
for the public's viewing.                                                                                                       
                                                                                                                                
10:45:18 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:46:27 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
HB 284 work draft version O.pdf SFIN 3/27/2012 9:00:00 AM
HB 284
HB 285 work draft version D.pdf SFIN 3/27/2012 9:00:00 AM
HB 285
CSSB 203 work draft D 3-26-12.pdf SFIN 3/27/2012 9:00:00 AM
SB 203
CSSB 203 description of D version 3-26-12.docx SFIN 3/27/2012 9:00:00 AM
SB 203
CSSB 203 summary of changes D version 3-26-12.docx SFIN 3/27/2012 9:00:00 AM
SB 203