Legislature(2017 - 2018)SENATE FINANCE 532
06/10/2017 11:30 AM Senate CONFERENCE COMMITTEES ON HB 57 AND HB 59
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| Audio | Topic |
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| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 57 | TELECONFERENCED | |
| += | HB 59 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 57(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; and making supplemental appropriations
and reappropriations."
SENATE CS FOR CS FOR HOUSE BILL NO. 57(FIN) am S
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; making supplemental appropriations and
reappropriations; making appropriations under art. IX,
sec. 17(c), Constitution of the State of Alaska, from
the constitutional budget reserve fund; and providing
for an effective date."
and
CS FOR HOUSE BILL NO. 59(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."
SENATE CS FOR CS FOR HOUSE BILL NO. 59(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."
12:16:13 PM
Co-Chair Seaton invited David Teal, Director of the
Legislative Finance Division, to join legislators at the
table. He reported that the conference committee would be
addressing open items in HB 57 and HB 59 based on the
motion sheets distributed to members earlier in the day,
dated June 10th, on the Department of Health and Social
Services, the Department of Natural Resources, the
Department of Public Safety, the University of Alaska,
Language Items, Labor Agreements, and Mental Health Capital
Projects. He reported that the committee would be taking
action on all items applicable to HB 59, the mental health
bill, and planned to finalize the Conference Committee
report on HB 59 today.
Co-Chair Seaton relayed that the mental health items
included wordage that was not strictly mental health, since
wordage applicable to a department, appropriation or
allocation in HB 57 was duplicated in HB 59 if those same
departments, appropriations or allocations had
appropriations. He also indicated some non-mental health
items would also be taken up.
12:17:13 PM
Senator Hoffman MOVED to ADOPT the following in the
Department of Health and Social Services budget:
Item 1 House
Item 2 Senate
Items 3 through 8 OPEN
Item 9 House
Item 10 OPEN
Item 11 House
Items 12 through 21 OPEN
Item 22 House
Item 23 Senate
Item 24 Senate plus $262.0 for a revised total of
minus $200.0
Items 25 through 30 OPEN
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed
conference-able items 1, 2, 9, 11, 22, 23, and 24 in the
Department of Health and Social Services, leaving all other
items open.
12:18:36 PM
Senator Hoffman MOVED to ADOPT the following in the
Department of Natural Resources budget:
Item 1 Senate minus $33,900 for a revised total of
$101,800. This funds the position at 75% in
recognition that the position would not be
filled on July 1.
Item 2 House
Item 3 House
Item 4 OPEN
Item 5 House as a One-Time Increment
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed
conference-able Items 1, 2, 3, and 5 in the Department of
Natural Resources' budget, leaving Item 4 open.
12:19:28 PM
Senator Hoffman MOVED to ADOPT the following in the
Department of Public Safety budget:
Item 8 Senate
Item 15 Senate
Item 16 House
Item 17 Senate
Item 18 House
Co-Chair Seaton OBJECTED for explanation. He asked Mr. Teal
to provide an update on Item 18.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained that Item 18 was associated with a planned
transfer of four revenue investigators to Department of
Public Safety. At one time, it appeared that the revenue
investigators would be carrying weapons. Some people felt
that the positions should be located within the Department
of Public Safety. The item was left open in the previous
day when the Legislative Finance Division learned that the
transfer might not occur because of an agreement between
the two departments. He read from a letter by Dan
DeBartolo, Director, Division of Administrative Services,
Department of Revenue (copy not on file):
Recently the Division of Personnel completed an
investigator study where only positions classified as
special investigators will be allowed to carry
weapons.
Mr. Teal continued to explain that none of the Department
of Revenue's investigative employees received the
designation. The letter also stated that the Department of
Public Safety and the Department of Revenue agreed that
because the revenue investigators would not be carrying
weapons there was no need to move the positions over to the
Department of Public Safety as approved by both the House
and the Senate. He furthered that the House position would
have removed the interagency receipts that revenue would
have transferred to fund the positions. Given the
situation, he recommended taking the House numbers, which
removed interagency funds from the Department of Public
Safety because the transfer did not occur. If there was a
change to the agreement, the interagency receipts could be
transferred in an unbudgeted reimbursable services
agreement.
Co-Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed the
conference-able items in the Department of Public Safety
budget.
12:22:36 PM
Senator Hoffman MOVED to ADOPT the following in the
University of Alaska budget:
Item 1 Senate
Item 2 House
Item 3 OPEN
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed
conference-able Item 1 and Item 2 in the University of
Alaska budget, leaving Item 3 open.
12:23:20 PM
Senator Hoffman MOVED to ADOPT the following in Language
Items:
Item 1 Senate
Representative Pruitt OBJECTED to Item 1.
Co-Chair Hoffman WITHDREW his MOTION.
Senator Hoffman MOVED to ADOPT the following in Language
Items:
Item 2 Senate
Item 3 Senate
Item 4 OPEN
Co-Chair Seaton indicated that the action closed
conference-able Items 2, 3, and 4 in the Language section.
[Co-Chair Seaton corrects his statement regarding Item 4:
see below].
Co-Chair Hoffman MOVED to ADOPT Language Item 1.
Representative Pruitt relayed that the issue had been
brought to him by one of his caucus members. Through the
member's investigation, she found that there was a
substantial amount of money being used for specialty
memberships. The member had argued that the memberships
needed to be reevaluated. The House had agreed that
reconsideration of some of the specialty memberships was a
good idea. He thought the state had spent about $2 million
on specialty memberships. He would have to check on the
accuracy of his number. He had not heard that figure
directly from the other caucus member.
Representative Pruitt MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: MacKinnon, Foster, Olson, Hoffmann, Seaton
OPPOSED: Pruitt
The MOTION to ADOPT Language Item 1 PASSED (House: 2/1 -
Senate: 3/0).
Co-Chair Seaton corrected his statement on the previous
motion. He clarified that the action closed conference-able
Items 2 and 3 in the Language section, Item 4 was left
open.
12:26:10 PM
Co-Chair Hoffman MOVED to ADOPT new Language Item 5.
Co-Chair Seaton OBJECTED for explanation.
Mr. Teal offered that the item contained backstop language.
The recidivism fund was comprised of marijuana taxes. The
tax receipts were not keeping pace with expectations. There
was a distinct possibility that the amount of recidivism
reduction funds that were appropriated would not be
available. The language in item 5 stated that if the funds
were insufficient they would be backstopped with general
funds. It also went on to say that if the state used
general funds and tax receipts became sufficient, the
general funds would be reimbursed from the recidivism fund.
Co-Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, Language Item 5 was adopted.
12:27:39 PM
Co-Chair Hoffman MOVED to ADOPT new Items 1, 2, and 3 in
Labor Agreements.
Co-Chair Seaton OBJECTED for explanation.
Mr. Teal explained that typically the Conference Committee
adopted labor agreements because they were finished after
the House and Senate finished their business - it was
normal procedure. He reported that the University of Alaska
had added bargaining units. Even though there was no mental
health funding for some of the agreements, the state
typically printed the labor agreements containing
acceptance language in both the Mental Health and the
operating bills.
Co-Chair Seaton WITHDREW his OBJECTION.
Representative Pruitt OBJECTED.
Representative Pruitt asked about Item 1. He wanted
clarification about the statement that none of the
contracts had requests for budget increases. Although they
did not include increases in the current year, he wondered
if they did in outgoing fiscal years.
Mr. Teal did not know the answer. He believed the numbers
were zero but could not guarantee it.
12:30:07 PM
Co-Chair Hoffman added that in Item 3 the public safety
agreement covered FY 18 through FY 20. He relayed that FY
18 base salary would be increased by 6 percent. The
increase would begin to close the gap between the
Department of Public Safety and other law enforcement
agencies. The Department of Public Safety would still be
paid less than Anchorage or comparable to Washington state
agencies. The wages were at the lower end and the increase
would help to close the gap on the hiring of public safety
officers, which had a vacancy rate of close to 10 percent.
Co-Chair Seaton WITHDREW his OBJECTION.
Representative Pruitt was clear about the increases in
Items 2 and 3. However, he was unclear about Item 1. Since
the items were moved together, he would maintain his
objection. He had a discussion in the previous day about
the fact that the state had not frozen pay during a
difficult fiscal time for the state. He understood that the
City of Anchorage had increased its wages and that the
state was challenged regarding public safety employees
because of the precedent that had been set with Anchorage.
He recalled that the mayor of Anchorage had said the
citizens of Anchorage would have to choose between police
and snow removal. He thought the legislature would be faced
with similar choices. He thought that a 6 percent increase
was not something the state should move forward with in
tough fiscal times. He was not saying that public safety
officers did not deserve a pay raise. However, deserving
and having the means to pay were two separate discussions
at present.
Co-Chair MacKinnon wanted the people of Alaska to
understand that the state was facing up to a 10 percent
vacancy rate. She and Co-Chair Hoffman had met with the
governor's chief of staff and confirmed that a 6 percent
increase did not apply to everyone. It was a rebalancing of
the pay scale for troopers to raise those people entering
into the process. Some folks in the contract would receive
little to no increase creating a new top. It was a
balancing effort that the co-chairman spoke of previously.
She did not want Alaskans to think that there was a 6
percent increase. She reported that there was a dollar
value and respected the representative's point about
whether the state could afford it. The following years were
zero, zero. She relayed that it was not just the City of
Anchorage competing for Alaska's public safety officers. In
regards to retention and recruitment, other states such as
Washington, specifically King County was actively
recruiting in Alaska. This was due to the State of Alaska
training its troopers and public safety officers very well.
Public safety officers were being lured away from Alaska
shortly after the state had invested in training because it
was non-competitive in the first 5 years of public safety
enforcement. She agreed that the legislature had to make a
decision whether the state could compete with a 6 percent
increase. However, the contract was a rebalancing of the
lower end to ensure the state could compete and retain its
investment through Alaska's law enforcement training.
12:35:28 PM
Co-Chair Hoffman added that the crux of the matter was
public safety for all Alaskans. He thought the increased
crime rate in Alaska was due, in part, to the state not
being able to recruit and fill the budgeted public safety
officer positions. He attributed those positions remaining
unfilled because of Alaska's pay scale. He hoped an
adjustment to the pay scale would tip the balance enough to
achieve the hiring of new officers. He thought it would
help to reverse the crime rates in Alaska and would provide
better protection for Alaskan citizens.
Representative Pruitt appreciated the senators continuing
the conversation. He agreed about the importance of public
safety and indicated his caucus was very passionate about
the issue. He thought the state had taken some tools away
from Alaska's law enforcement personnel. Without certain
tools, he believed some public safety officers would be
challenged to do their jobs.
Co-Chair Seaton asked Representative Pruitt to redirect his
comments to the budget.
Representative Pruitt commented that his objection was not
singling out public safety. He was concerned with growing
the state's budget at a time when the state did not have
money. He wanted to make a clear distinction.
12:38:07 PM
AT EASE
12:41:31 PM
RECONVENED
Co-Chair Hoffman was aware the state was in tough financial
times. He and Co-Chair MacKinnon had concerns about a 6
percent increase because it was the largest sum in the
contract. They had done additional research, discussed the
issue with the Senate President, and addressed it with
leadership. In the end, they concluded that public safety
as well as other items needed to continue being funded. In
order to ensure the public safety of the citizens of Alaska
finances to recruit additional officers was necessary which
was why they supported the contract.
Co-Chair MacKinnon appreciated Co-Chair Hoffman's comments
and mirrored them. She wanted to make sure the people of
Alaska understood that the legislature was working hard to
run down the numbers on all of the contracts before the
committee. They were considering whether they should accept
what the administration was negotiating or whether they
should reject them sending them back to the bargaining
table. She clarified that regarding the University of
Alaska budget contract, it was zero. She had been informed
that it would not have an effect on a future budget. If
there were effects, they would be absorbed. She had just
checked with the University of Alaska on the contract
before the committee.
Co-Chair MacKinnon reported that $10 thousand was already
embedded into the budget for the increase for the Alaska
Vocational and Education Center. She anticipated no future
increases in its regular operations. She indicated that in
2015 the Senate leadership sent a letter to the
administration asking for zero increases to contracts.
Commissioner Fisher had been keeping the legislature
advised about the challenges of doing so. She had no
hesitation reporting that she anticipated zeros from any of
the bargaining units when the legislature was facing huge
revenue shortfalls. She appreciated the bargaining units
coming to the table and understanding the situation. The
issue within Department of Public Safety pertaining to
retention and recruitment had been difficult over the
previous 3 years. She expected Commissioner Fischer to
continue to bargain hard based on the letter sent from
Senate Finance, that zero was the acceptable number. If
not, employees would have to participate a little more as
health costs increased. The legislature was doing
everything it could to keep Alaska safe and the budget
floating a little higher than it had in the past. It meant
that the legislature had to accommodate reductions in the
budgets before the committee.
Representative Pruitt MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Olson, Foster, MacKinnon, Seaton, Hoffman
OPPOSED: Pruitt
The MOTION to ADOPT Labor Agreement Items 1, 2, and 3
PASSED (House: 2/1 - Senate: 3/0).
Labor Agreement Items 1, 2, and 3 were ADOPTED.
Co-Chair Seaton indicated that the action closed the Labor
Agreement section.
12:46:10 PM
Senator Hoffman MOVED to ADOPT the following in the Mental
Health Capital budget:
Item 1 Senate
Item 2 House and change fund code 1139 AHFC
Dividend to Fund Code 1037 General Fund
Mental Health
Item 3 House
Item 4 House
Item 5 Senate for both fund sources
There being NO OBJECTION, it was so ordered.
Co-Chair Seaton indicated that the action closed the
conference-able items in the Mental Health Capital budget.
Co-Chair Hoffman moved to give the Legislative Finance
Division and Legislative Legal Services the ability to make
technical and conforming adjustments to the Conference
Committee Substitute for House Bill 59.
Co-Chair Hoffman MOVED to report CCSHB 59 Out of committee
with individual recommendations.
There being NO OBJECTION, it was so ordered.
12:47:32 PM
AT EASE
12:48:52 PM
RECONVENED
Co-Chair Seaton conveyed that once the next meeting date
and time was determined, the meeting would be noticed on
BASIS.
HB 57 was HEARD and HELD in committee for further
consideration.
CCSHB 59 was REPORTED out of committee.
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