Legislature(2017 - 2018)SENATE FINANCE 532

06/22/2017 10:00 AM CONFERENCE COMMITTEES ON HB 57 AND HB 59

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Audio Topic
12:18:51 PM Start
01:06:51 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved CCS HB 57 Out of Committee
- Dept. of Education & Early Development
- Dept. of Health & Social Services
- Fund Capitalization
- Permanent Fund Dividends
- Permanent Fund ERA Appropriations
- Fund Transfers
- Language
- Supplemental Items
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."                                                                                                     
                                                                                                                                
and                                                                                                                             
                                                                                                                                
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."                                                                                                    
                                                                                                                                
12:19:28 PM                                                                                                                   
                                                                                                                                
Chair  Seaton  invited  Lacey  Sanders  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 based on the  motion sheets distributed                                                                    
to  members  earlier in  the  day  dated  June 21th  on  the                                                                    
following:                                                                                                                      
                                                                                                                                
     · Department of Education and Early Development                                                                            
     · Department of Health and Social Services                                                                                 
     · Fund Capitalization                                                                                                      
     · Permanent Fund Dividends                                                                                                 
     · Permanent Fund ERA Appropriation                                                                                         
     · Fund Transfers                                                                                                           
     · Language                                                                                                                 
     · Supplemental Items                                                                                                       
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT the following in the                                                                          
Department of Education and Early Development budget:                                                                           
                                                                                                                                
     Item 1    Senate  and make  a  technical correction  by                                                                    
    changing the second "(2)" in the language to "(3)"                                                                          
     Item 2    Senate                                                                                                           
     Item 3    House                                                                                                            
     Item 4    House                                                                                                            
     Item 5    House                                                                                                            
     Item 6    House                                                                                                            
     Item 7    House                                                                                                            
     Item 8    House                                                                                                            
     Item 9    House                                                                                                            
     Item 10   Senate for both lines                                                                                            
                                                                                                                                
     The  increment   for  the  warm  storage   of  the  Mt.                                                                    
     Edgecumbe Aquatic Center is  a One-Time Increment. (The                                                                    
     increment is for $100.0)                                                                                                   
                                                                                                                                
     Add  new  intent language:  It  is  the intent  of  the                                                                    
     legislature  that  the  $4,758,800 fund  source  change                                                                    
     from Unrestricted  General Fund to Public  School Trust                                                                    
     Fund be reversed in the FY19 budget.                                                                                       
                                                                                                                                
     Item 11   House                                                                                                            
     Item 12   House                                                                                                            
     Item 13   Senate                                                                                                           
     Item 14   House                                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair Seaton indicated that the action closed the                                                                               
conference-able items in the Department of Education and                                                                        
Early Development budget.                                                                                                       
                                                                                                                                
12:21:47 PM                                                                                                                   
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT the following in the                                                                          
Department of Health and Social Services budget:                                                                                
                                                                                                                                
     Item 27   Senate                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair Seaton indicated that the action closed the                                                                               
conference-able items in the Department of Health and                                                                           
Social Services budget.                                                                                                         
                                                                                                                                
12:22:10 PM                                                                                                                   
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT the following in the Fund                                                                     
Capitalization budget:                                                                                                          
                                                                                                                                
     Item 1    House plus  $20 million for a  revised amount                                                                    
     of $57  million and  add intent language  per Amendment                                                                    
     M.A.16: It is the intent  of the legislature to end the                                                                    
     state oil  and gas  tax credit purchase  program during                                                                    
     the  fiscal  year ending  June  30,  2018, and  not  to                                                                    
     purchase  transferable  tax   credit  certificates  for                                                                    
     expenditures incurred on or after January 1, 2018, or                                                                      
     to pay refunds for payments for expenditures incurred                                                                      
     on or after January 1, 2018.                                                                                               
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
12:23:06 PM                                                                                                                   
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT  the following in the Fund                                                                    
Capitalization budget:                                                                                                          
                                                                                                                                
     Item 2    Adopt new language per Amendment M.A.14,                                                                         
     which fully funds K-12 education.                                                                                          
                                                                                                                                
Chair Seaton OBJECTED for the purpose of discussion.                                                                            
                                                                                                                                
Vice  Chair  Hoffman  explained that  the  estimated  amount                                                                    
necessary to fully fund K-12 education was $1,159,466,600.                                                                      
                                                                                                                                
Vice  Chair   Hoffman  continued  that  after   taking  into                                                                    
consideration the $17 million  already appropriated into the                                                                    
public  education  fund,   the  amendment  appropriated  the                                                                    
remaining  estimated amount  necessary  to  fully fund  K-12                                                                    
education of $1,159,466,600.                                                                                                    
                                                                                                                                
12:24:02 PM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
12:24:37 PM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Vice  Chair   Hoffman  restated   that  after   taking  into                                                                    
consideration the $17 million  already appropriated into the                                                                    
public  education  fund,   the  amendment  appropriated  the                                                                    
remaining  estimated amount  necessary  to  fully fund  K-12                                                                    
education of $1,159,466,600.                                                                                                    
                                                                                                                                
Chair Seaton WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair  Seaton   indicated  that   the  actions   closed  the                                                                    
conference-able items in Fund Capitalization.                                                                                   
                                                                                                                                
12:25:15 PM                                                                                                                   
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT the following in                                                                              
Permanent Fund Dividends:                                                                                                       
                                                                                                                                
     Item 1    House minus $33,795,000  for a revised amount                                                                    
     of $760  million and change the  language per Amendment                                                                    
     M.A.18,  which   appropriates  the   amount  necessary,                                                                    
     estimated to be $760  million from the earnings reserve                                                                    
     account  to   the  dividend  fund  to   provide  for  a                                                                    
     permanent fund dividend of $1100 in FY18.                                                                                  
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair Seaton indicated that the actions closed the                                                                              
conference-able items in Permanent Fund Dividends.                                                                              
                                                                                                                                
12:26:03 PM                                                                                                                   
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT the following in the                                                                          
Permanent Fund ERA Appropriation:                                                                                               
                                                                                                                                
     Item 1    House minus $1,611,644,400 for a revised                                                                         
     amount of zero.                                                                                                            
                                                                                                                                
Representative Pruitt OBJECTED.                                                                                                 
                                                                                                                                
Representative Pruitt requested the Item 1 remain open.                                                                         
                                                                                                                                
Vice Chair Hoffman WITHDREW his MOTION to ADOPT Item 1.                                                                         
                                                                                                                                
Chair Seaton indicated that conference-able Item 1 was left                                                                     
open in the Permanent Fund ERA Appropriation.                                                                                   
                                                                                                                                
12:26:59 PM                                                                                                                   
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT the following in Fund                                                                         
Transfers:                                                                                                                      
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair Seaton indicated that the action closed the                                                                               
conference-able Items in Fund Transfers.                                                                                        
                                                                                                                                
12:27:14 PM                                                                                                                   
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT  the following in Language                                                                    
Items:                                                                                                                          
                                                                                                                                
     Item 4    Senate plus Amendment M.A.7                                                                                      
                                                                                                                                
Chair Seaton OBJECTED for the purpose of discussion.                                                                            
                                                                                                                                
Vice  Chair Hoffman  explained that  the amendment  modified                                                                    
the  language in  subsection (b)  by citing  the three  FY18                                                                    
appropriation   bills.  Language   in  new   subsection  (c)                                                                    
provided  for up  to $200  million  of other  appropriations                                                                    
that took effect in FY18, similar to FY17 language.                                                                             
                                                                                                                                
Chair Seaton WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair  Seaton   indicated  that   the  actions   closed  the                                                                    
conference-able items in Language.                                                                                              
                                                                                                                                
12:28:00 PM                                                                                                                   
                                                                                                                                
Vice Chair  Hoffman MOVED to  REPOEN Supplemental  Items and                                                                    
adopt new Supplemental Item 7, Amendment A.9.                                                                                   
                                                                                                                                
Chair Seaton OBJECTED for the purpose of discussion.                                                                            
                                                                                                                                
Vice Chair  Hoffman explained that  the amendment  added all                                                                    
of  the operating  and  capital supplemental  appropriations                                                                    
that were currently in the House's  version of SB 23 into HB
57. Reappropriations were not included.                                                                                         
                                                                                                                                
Vice Chair  Hoffman indicated that  timing was  critical for                                                                    
these supplemental appropriations as  agencies would have to                                                                    
establish   accounting    structures;   get   appropriations                                                                    
recorded in the accounting    system  (a  multi-step  multi-                                                                    
agency process); potentially  draw/receive revenues; process                                                                    
all payments; and close the  agencies' FY17 accounting books                                                                    
in  two   short  months.  Most  agencies   would  stop  FY17                                                                    
transactions by  mid-August, leaving  the last two  weeks to                                                                    
troubleshoot   and  fix   any   issues.   All  agency   FY17                                                                    
transactions would cease on August 31, 2017.                                                                                    
                                                                                                                                
Vice  Chair  Hoffman  continued  that  rather  than  further                                                                    
compress the  timeframe, the amendment would  provide agency                                                                    
staff  the longest  amount of  time  to accomplish  required                                                                    
tasks.                                                                                                                          
                                                                                                                                
Vice Chair Hoffman reported that LFD's three operating and                                                                      
two capital reports were provided that list all of the                                                                          
included supplementals:                                                                                                         
                                                                                                                                
     $57.0  million  for  operating supplementals  and  $5.6                                                                    
     million for capital supplementals  combined for a total                                                                    
     of $62.6 million of Unrestricted General Funds.                                                                            
                                                                                                                                
     (Medicaid had nearly $27  million; Fire Suppression $15                                                                    
     million,  Judgments and  Settlements nearly  $7 million                                                                    
     and Disaster  Relief Fund capitalization of  $3 million                                                                    
     total $52 million of the  $57 million UGF for operating                                                                    
     supplementals.)                                                                                                            
                                                                                                                                
     The  supplemental  combined   total  funds  amount  was                                                                    
     $357.8  million,  of   which  Federal  Funds  comprised                                                                    
     $290.2 million of the combined total.                                                                                      
                                                                                                                                
Chair Seaton WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair Seaton indicated that the action reclosed the                                                                             
conference-able items in Supplemental Items.                                                                                    
                                                                                                                                
12:30:50 PM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
12:31:17 PM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Chair Seaton indicated that the committee would recess to                                                                       
the call of the chair                                                                                                           
                                                                                                                                
12:31:22 PM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
1:01:45 PM                                                                                                                    
RECONVENNED                                                                                                                     
                                                                                                                                
Vice-Chair Hoffman MOVED to ADOPT the following in the                                                                          
Permanent Fund ERA Appropriation:                                                                                               
                                                                                                                                
     Item 1    House  minus  $1,611,644,400  for  a  revised                                                                    
     amount of zero.                                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Chair  Seaton   indicated  that   the  actions   closed  the                                                                    
conference-able   items   in    the   Permanent   Fund   ERA                                                                    
Appropriation.                                                                                                                  
                                                                                                                                
1:02:31 PM                                                                                                                    
                                                                                                                                
Vice  Chair Hoffman  MOVED to  give Legislative  Finance and                                                                    
Legislative  Legal Services  the ability  to make  technical                                                                    
and  conforming  adjustments  to  the  Conference  Committee                                                                    
Substitute for House Bill 57.                                                                                                   
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
1:02:54 PM                                                                                                                    
                                                                                                                                
Vice Chair  thanked the staff of  LFD for all of  their hard                                                                    
work.  He also  thanked his  finance aide,  James Armstrong,                                                                    
for all of  the hours he committed to  the operating budget.                                                                    
He thought the  committee report had many  compromises in it                                                                    
from  both   bodies.  He  invited  other   members  to  make                                                                    
additional comments.                                                                                                            
                                                                                                                                
Chair Seaton thanked Vice-Chair  Hoffman and his aide, James                                                                    
Armstrong  for all  of  their efforts.  He  also wished  Mr.                                                                    
Armstrong a very happy retirement,  as he was retiring after                                                                    
the  current  legislative  session.  He  also  extended  his                                                                    
thanks to  Senator MacKinnon, Senator  Olson, Representative                                                                    
Foster, Representative  Pruitt, and  to all of  their staff.                                                                    
He thanked David Teal and  Lacey Sanders and the exceptional                                                                    
LFD  crew.  He  thanked  Megan Wallace,  the  very  talented                                                                    
budget  bill   drafter  and  the   rest  of  the   staff  at                                                                    
Legislative  Legal Services.  He wished  Megan a  very Happy                                                                    
Birthday as well.  He also thanked Pat Pitney  and her staff                                                                    
at  the Office  of  Management and  Budget  and the  finance                                                                    
committee  assistants and  secretaries.  He  gave a  special                                                                    
thank you to his staff, Joan Brown and Arnie Liebelt.                                                                           
                                                                                                                                
1:04:42 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Hoffman   MOVED  to  report  CCSHB   57  out  of                                                                    
Committee.                                                                                                                      
                                                                                                                                
Chair Seaton WITHDREW his OBJECTION.                                                                                            
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
1:05:05 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:06:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CCSHB 57 was REPORTED OUT of Committee with accompanying                                                                        
fiscal notes.                                                                                                                   
                                                                                                                                

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