Legislature(2015 - 2016)HOUSE FINANCE 519
02/29/2016 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB256 || HB257 | |
| Introduction and Adoption of the Committee Substitutes Incorporating the Subcommittees' Recommendations and Subcommittee Reports | |
| Public Testimony: Juneau | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 256 | TELECONFERENCED | |
| += | HB 257 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
February 29, 2016
1:33 p.m.
1:33:13 PM
CALL TO ORDER
Co-Chair Neuman called the House Finance Committee meeting
to order at 1:33 p.m.
MEMBERS PRESENT
Representative Mark Neuman, Co-Chair
Representative Steve Thompson, Co-Chair
Representative Dan Saddler, Vice-Chair
Representative Bryce Edgmon
Representative Les Gara
Representative Lynn Gattis
Representative David Guttenberg
Representative Scott Kawasaki
Representative Cathy Munoz
Representative Lance Pruitt
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Joan Brown, Staff, Representative Mark Neuman; Pete
Ecklund, Staff, Representative Mark Neuman; Representative
Sam Kito III; Dixie Hood, Self, Juneau; Mary Hakala, Self,
Juneau; Gordon Kruse, Director, Fisheries Division,
University of Alaska Fairbanks, Juneau; Mark Miller,
Superintendent, Juneau School District, Juneau; Bruce Van
Dusen, Executive Director, Polaris House, Juneau; Crystal
Bourland, Executive Director, National Alliance on Mental
Illness (NAMI), Juneau; Joan O'Keefe, Executive Director,
SAIL, Juneau; Maxine Doogan, Community United for Safety
and Protection, Juneau; Michele Morgan, Juneau Stop Heroin
Start Talking, Juneau; William Musser, Self, Juneau; Terra
Burns, Community United for Safety and Protection, Juneau;
Kara Nelson, Director, Haven House, Juneau; Rosalie Nadeau,
AKEELA, Juneau; David Lendrum, Professional
Horticulturalist, Juneau; Walter Majoros, Executive
Director, Juneau Youth Services, Juneau; Jayne Andreen,
President, Alaska Public Health Association, Juneau;
Lorraine DeAsis, Parent, Juneau; Pamela Watts, Executive
Director, Juneau Alliance for Mental Health, Juneau;
Marianne Mills, President, AgeNet, Juneau; Deacon Charles
Rohrbacher, Self, Juneau; Amy Lujan, Executive Director,
Alaska Association of School Business Officials, Juneau;
Stan Lujan, Board Member, Alaska Association of School
Business Officials, Juneau; Richard Cole, CoastAlaska and
KTOO, Juneau; Abbe Hensley, Executive Director, Best
Beginnings, Juneau; Corinne Conlon, Self, Juneau; Naara
Conlon, Student, Juneau; Kevin Allen, High School Student,
Juneau; Nick Crowe, Juneau Youth Services, Juneau; Whitney
Reeves, 4-H Leader, Juneau; Jorden Nigro, Chair, KTOO Board
of Directors, Juneau; David Epstein, Self, Juneau; Amy Jo
Meiners, 2016 Alaska Teacher of the Year, Juneau; Judy
Cavanaugh, Self, Juneau; Jared Weems, PhD Fisheries
Student, UAF, Juneau; Gail Dabaluz, UAFAA, Juneau; Kevin
Belcourt, Self, Juneau; Brenda Taylor, Education, Juneau;
Andi Story, Juneau School Board, Juneau; George Schaaf,
KTOO, Juneau; Joan Cahill, National Council on Alcohol and
Drug Dependence Juneau, Juneau; Stephanie Roughton, Parents
as Teachers, Juneau; Catalina Iputi, Self, Juneau; Emily
Thompson, Parents as Teachers, Juneau; Claire Geldhof,
Self, Juneau; Rachel Disney, Self, Juneau; David Love,
Self, Juneau; Aaron Brakel, Self, Juneau; Brian Holst,
Senior Class President, Juneau Douglas High School, Juneau;
Brian Holst, Director, Juneau Economic Development Council,
Juneau; Amanda Goins, Self, Juneau; Bruce Rogers, Self,
Juneau; Beth Weldon, Self, Juneau; Elise Tomlinson, Self,
Juneau.
PRESENT VIA TELECONFERENCE
Chris Rose, Executive Director, Renewable Energy Alaska
Project, Anchorage.
SUMMARY
HB 256 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 256 was HEARD and HELD in committee for
further consideration.
HB 257 APPROP: MENTAL HEALTH BUDGET
HB 257 was HEARD and HELD in committee for
further consideration.
INTRODUCTION AND ADOPTION OF THE COMMITTEE SUBSTITUTES
INCORPORATING THE SUBCOMMITTEES' RECOMMENDATIONS AND
SUBCOMMITTEE REPORTS
HOUSE BILL NO. 256
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, making
reappropriations, making supplemental appropriations,
and 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."
HOUSE BILL NO. 257
"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."
1:33:13 PM
Co-Chair Neuman indicated that the committee substitute for
HB 256 and HB 257 would be taken up in the meeting. Each
subcommittee chair would be presenting a brief report of
their subcommittee recommendations. Following the committee
reports his staff would come to the table to explain the
changes made to the language section of HB 256.
Co-Chair Thompson MOVED to ADOPT the proposed committee
substitute for HB 256 (FIN), Work Draft 29-GH2740\x
(Wallace, 2/29/16).
There being NO OBJECTION, it was so ordered.
^INTRODUCTION AND ADOPTION OF THE COMMITTEE SUBSTITUTES
INCORPORATING THE SUBCOMMITTEES' RECOMMENDATIONS AND
SUBCOMMITTEE REPORTS
1:34:57 PM
Representative Gattis began with reporting the House
Finance Subcommittee budget for the Department of
Administration. She relayed that the unrestricted general
fund (UGF) total for FY 17 was $67,117.4 million. The total
funds for FY 17 were $323,603.3 million. The UGF difference
from the FY 16 Management Plan to the House subcommittee
budget recommendation was a reduction of $10,076.2 million
which was a 13.1 percent decrease. The UGF difference from
the FY 15 Management Plan to the House subcommittee budget
recommendation was a reduction of $20,878.7 million, which
was a 23.7 percent decrease.
Representative Gattis moved on to reporting the House
Finance Subcommittee budget for the Department of Education
and Early Development. She relayed that the unrestricted
general fund (UGF) total for FY 17 was $44,099.3 million.
The total funds for FY 17 were $379,552.1 million. The UGF
difference from the FY 16 Management Plan to the House
subcommittee budget recommendation was a reduction of
$10,068.0 million which was a 15.5 percent decrease. The
UGF difference from the FY 15 Management Plan to the House
subcommittee budget recommendation was a reduction of
$25,073.9 million, which was a 36.2 percent decrease.
1:37:25 PM
Representative Edgmon began with reporting the House
Finance Subcommittee budget for the Department of
Corrections. He relayed that the unrestricted general fund
(UGF) total for FY 17 was $270,007.9 million. The total
funds for FY 17 were $318,555.5 million. The UGF difference
from the FY 16 Management Plan to the House subcommittee
budget recommendation was a reduction of $7,278.6 million
which was a 2.6 percent decrease. The UGF difference from
the FY 15 Management Plan to the House subcommittee budget
recommendation was a reduction of $27,646.5 million, which
was a 9.3 percent decrease.
Representative Edgmon moved on to reporting the House
Finance Subcommittee budget for the Department of Public
Safety. He relayed that the unrestricted general fund (UGF)
total for FY 17 was $156,112.8 million. The total funds for
FY 17 were $187,909.0 million. The UGF difference from the
FY 16 Management Plan to the House subcommittee budget
recommendation was a reduction of $4,560.9 million which
was a 2.8 percent decrease. The UGF difference from the FY
15 Management Plan to the House subcommittee budget
recommendation was a reduction of $15,297.8 million, which
was an 8.9 percent decrease.
1:39:12 PM
Representative Munoz began with reporting the House Finance
Subcommittee budget for the Department of Environmental
Conservation. She relayed that the unrestricted general
fund (UGF) total for FY 17 was $16,802.9 million. The total
funds for FY 17 were $83,451.3 million. The UGF difference
from the FY 16 Management Plan to the House subcommittee
budget recommendation was a reduction of $3,290.4 million
which was a 16.4 percent decrease. The UGF difference from
the FY 15 Management Plan to the House subcommittee budget
recommendation was a reduction of $5,669.2 million, which
was a 25.2 percent decrease.
Representative Munoz moved on to reporting the House
Finance Subcommittee budget for the Judiciary. She relayed
that the unrestricted general fund (UGF) total for FY 17
was $106,545.7 million. The total funds for FY 17 were
approximately $110,371.3 million. The UGF difference from
the FY 16 Management Plan to the House subcommittee budget
recommendation was a reduction of $3,857.2 million which
was a 3.5 percent decrease. The UGF difference from the FY
15 Management Plan to the House subcommittee budget
recommendation was a reduction of $5,320.6 million, which
was a 4.8 percent decrease.
1:41:09 PM
Co-Chair Neuman began with reporting the House Finance
Subcommittee budget for the Department of Corrections. He
relayed that the unrestricted general fund (UGF) total for
FY 17 was $56,022.8 million. The total funds for FY 17 were
approximately $203,643.6 million. The UGF difference from
the FY 16 Management Plan to the House subcommittee budget
recommendation was a reduction of $9,072.6 million which
was a 13.9 percent decrease. It also represented a decrease
of 45 positions. The UGF difference from the FY 15
Management Plan to the House subcommittee budget
recommendation was a reduction of $23,387.8 million, which
was a 29.4 percent decrease. Other highlights from the
subcommittee report included a $2 million reduction across
the Division of Commercial Fisheries. There was also a UGF
reduction of $2,300.0 million to replace the program
receipts with test fisheries. The UGF for the Division of
Sport Fish had a reduction of $1,500.0 million replacing
program receipts with Department of Fish and Game funds. He
reported that in the Division of Wildlife Conservation UGF
was reduced by $358.2 thousand. It was also further reduced
UGF by $641.8 thousand and replaced with federal receipts.
The UGF was reduced in the Division of Administrative
Services by $142.2 thousand. The UGF for the Board Support
was reduced by $253.0 and replaced with interagency
receipts. The UGF for the committee advisories was reduced
by $67 thousand and replaced with interagency receipts. The
UGF for the Division of Habitat was reduced by $100
thousand and also within the Division of Subsistence. The
Commissioner's Office was also reduced by $600 thousand and
replaced with interagency receipts. He reported that the
Administrative support services was reduced by $500
thousand and replaced with interagency receipts. The
Division of Habitat was reduced $200 thousand and deleted 2
PCNs. The Division of Subsistence reduced travel by $300
thousand UGF. The Commercial Fisheries Entry Commission
(CFEC) reduced personnel services, travel Services, and
commodities by $650.4 Thousand in designated general funds
(DGF) and reduced staffing of 6 positions. There was also
intent language directing the department to further reduce
costs and to implement additional efficiencies.
1:43:47 PM
Co-Chair Neuman moved on to reporting the House Finance
Subcommittee budget for the Legislature. He relayed that
the unrestricted general fund (UGF) total for FY 17 was
$64,306.4 million. The total funds for FY 17 were
approximately $65,179.9 million. The UGF difference from
the FY 16 Management Plan to the House subcommittee budget
recommendation was a reduction of $9,091.6 million which
was a 12.4 percent decrease. The UGF difference from the FY
15 Management Plan to the House subcommittee budget
recommendation was a reduction of $12,597.9 million, which
was a 16.4 percent decrease. Some of the larger budget
changes in the subcommittee recommendations included a
reduction to the House office lounge by 25 percent from $16
thousand to $12 thousand for a savings of $160 thousand.
The subcommittee recommended denying all increments
totaling $378.5 thousand, reducing personal services
funding due to the implementation of 5-day furloughs for
all full-time employees resulting in a savings of $700
thousand, and eliminating the funding for the agency
performance review for a net reduction of $937.2 thousand.
The committee also recommended reducing $1.8 million by
making reductions of $500 thousand in Legislative Audit,
$300 thousand in House Finance, $400 thousand in committee
expenses, $400 in the house operating budget, and another
$200 thousand in session expenses. The subcommittee
accepted Legislative Council's recommendation to delete $4
million form the Anchorage Legislative Information Office.
1:45:41 PM
Co-Chair Neuman reported the House Finance Subcommittee
budget for the Office of the Governor. He relayed that the
unrestricted general fund (UGF) total for FY 17 was
$22,856.1 million. The total funds for FY 17 were
approximately $23,905.8 million. The UGF difference from
the FY 16 Management Plan to the House subcommittee budget
recommendation was a reduction of $293.9 thousand which was
a 1.3 percent decrease. Over all there were very few
changes to the governor's budget. The Office of the
Governor spread FY 16 $388.9 thousand unallocated reduction
throughout the agency. The Division of Elections added a
net of 1 part-time position and $341.5 thousand to
implement the Toyukak settlement. The division's budget
also contained $29 thousand of statutory designated program
receipts in order to allow the division to accept a grant
from the Pew Charitable Trust. In addition, the
subcommittee recommended that the standard $3.8 million 1-
year election funding request be moved from the capital to
language in the operating budget.
1:46:57 PM
Co-Chair Thompson began with reporting the House Finance
Subcommittee budget for the Department of Transportation
and Public Facilities. He relayed that the unrestricted
general fund (UGF) total for FY 17 was $228,543.0 million.
The total funds for FY 17 were $590,924.0 million. The UGF
difference from the FY 16 Management Plan to the House
subcommittee budget recommendation was a reduction of
$15,471.0 million. The UGF difference from the FY 15
Management Plan to the House subcommittee budget
recommendation was a reduction of $50,558.0 million.
1:47:47 PM
Co-Chair Thompson moved on to reporting the House Finance
Subcommittee budget for the Department of Revenue. He
relayed that the subcommittee accepted all of the
governor's amended budgets except for the following: Denied
the increase to salaries in investment officer in the
Division of Treasury and in the Alaska Permanent Fund
Corporation, reduced legal and consulting services for the
Alaska Liquefied Natural Gas Project. The unrestricted
general fund (UGF) total for FY 17 for the department was
$28,413.8 million. The total funds for FY 17 were $400
million. The UGF difference from the FY 16 Management Plan
to the House subcommittee budget recommendation was a
reduction of $569.2 thousand which was a 2.0 percent
decrease. The UGF difference from the FY 15 Management Plan
to the House subcommittee budget recommendation was a
reduction of $5,417.6 million, which was a 16 percent
decrease.
1:48:28 PM
Co-Chair Thompson moved to reporting the House Finance
Subcommittee budget for the Department of Military and
Veterans Affairs. He relayed that the unrestricted general
fund (UGF) total for FY 17 was $16,409.0 million. The total
funds for FY 17 were $57,465.0 million. The UGF difference
from the FY 16 Management Plan to the House subcommittee
budget recommendation was a reduction of $817.1 thousand
which was a 4.7 percent decrease. The UGF difference from
the FY 15 Management Plan to the House subcommittee budget
recommendation was a reduction of $8,407.9 million, which
was a 34 percent decrease. The subcommittee accepted the
governor's amended budget except for the authorization of
the rural engagement initiative scout battalion. The
subcommittee also transferred the National Guard Naval
Militia retirement system to statewide. Two positions were
deleted from the department and included intent language
that requested that the State of Alaska assets within the
Aerospace Corporation were retained as the corporation
moved towards ownership and organizational restructuring.
1:49:32 PM
Vice-Chair Saddler reported the House Finance Subcommittee
budget for the Department of Health and Social Services. He
relayed that the unrestricted general fund (UGF) total for
FY 17 was $1,075,742.8 billion. The total funds for FY 17
were $2,696,992.3 billion. The UGF difference from the FY
16 Management Plan to the House subcommittee budget
recommendation was a reduction of $89,506.9 million which
was a 7.7 percent decrease. The UGF difference from the FY
15 Management Plan to the House subcommittee budget
recommendation was a reduction of $175,636.4 million, which
was a 14 percent decrease. The specific budget actions and
adjustments to the governor's FY 17 amended budget were
laid out in detail in the full subcommittee report.
1:50:37 PM
Vice-Chair Saddler moved to reporting the House Finance
Subcommittee budget for the Department of Law. He relayed
that the unrestricted general fund (UGF) total for FY 17
was $49,876.8 million. The total funds for FY 17 were
$102,533.2 million. The UGF difference from the FY 16
Management Plan to the House subcommittee budget
recommendation was a reduction of $3,168.8 million which
was a 6 percent decrease. The UGF difference from the FY 15
Management Plan to the House subcommittee budget
recommendation was a reduction of $9,398.5 million, which
was a 15.9 percent decrease. He suggested looking at the
subcommittee report for specific detail actions.
1:51:22 PM
Representative Pruitt began with reporting the House
Finance Subcommittee budget for the Department of Natural
Resources. He relayed that the unrestricted general fund
(UGF) total for FY 17 was $88,143.9 million. The total
funds for FY 17 were $173,212.2 million. The UGF difference
from the FY 16 Management Plan to the House subcommittee
budget recommendation, not including the gasline related
funding, was a reduction of $8,828.5 million which was a
12.6 percent decrease. If the gasline expenses were
included it would reflect an increase of $17,853.3, an
additional 25.4 percent. The UGF difference from the FY 15
Management Plan to the House subcommittee budget
recommendation, without the gasline related funding, was a
reduction of $16,206.5 million, which was a 20.9 percent
decrease. If the gasline funding was included the figure
would be $1,488.6 million, an increase of 1.7 percent. The
highlights included the North Slope gas commercialization
with an increased funding of $26,681.8 million which was
composed of two separate increments: One just under $9.0
million and one just under $17.7 million ($9 million less
than what the governor had requested). The subcommittee
also recommended that the House Finance Committee remove
the full appropriation and manage all gasline related funds
as its own appropriation separate from the regular
budgetary process. The subcommittee accepted the governor's
request to move some of the mining, land, and water
receipts from UGF to DGF and increased the number as well.
1:53:13 PM
Representative Pruitt moved to reporting the House Finance
Subcommittee budget for the Department of Commerce,
Community and Economic Development. He relayed that the
unrestricted general fund (UGF) total for FY 17 was
$17,306.0 million. The total funds for FY 17 were
$137,812.5 million. The UGF difference from the FY 16
Management Plan to the House subcommittee budget
recommendation was a reduction of $8,426.3 million which
was a 32.7 percent decrease. The UGF difference from the FY
15 Management Plan to the House subcommittee budget
recommendation was a reduction of $13,504.9 million, which
was a 43.8 percent decrease. Other highlights included
accepting the governor's decrement for tourism and
marketing and increasing it by 30 percent. Intent language
specified the removal of UGF dollars in the future. The
governor's decrement for Alaska Seafood Marketing Institute
(ASMI) and increased it by 30 percent with similar intent
language. Four positions were deleted in the Division of
Economic Development totaling $467.4 thousand and
eliminated the Ardor funding, as the program would be
repealed on July 1st totaling $774 thousand.
1:54:36 PM
Representative Wilson began with reporting the House
Finance Subcommittee budget for the University. She relayed
that the unrestricted general fund (UGF) total for FY 17
was $300,000.0 million. The total funds for FY 17 were
$874,912.0 million. The UGF difference from the FY 16
Management Plan to the House subcommittee budget
recommendation was a reduction of $50,787.0 million which
was a 14.5 percent decrease. The UGF difference from the FY
15 Management Plan to the House subcommittee budget
recommendation was a reduction of $70,599.7 million, which
was a 19.1 percent decrease. She reported that intent
language was inserted by the subcommittee encouraging the
University to slim down prior to increasing tuition. Also,
the University was directed to come back to the legislature
with a plan showing how it would become one university
rather than three due at the end of the current year. She
pointed out that although there were amounts listed on
pages 39 and 40 divided amongst the campuses it was one
grant that could be allocated in any fashion by the
regents.
1:56:02 PM
Representative Wilson began with reporting the House
Finance Subcommittee budget for the Department of Labor and
Workforce Development. She relayed that the unrestricted
general fund (UGF) total for FY 17 was $22,643.2 million.
The total funds for FY 17 were $164,266.6 million. The UGF
difference from the FY 16 Management Plan to the House
subcommittee budget recommendation was a reduction of
$3,188.3 million which was a 12.3 percent decrease. The UGF
difference from the FY 15 Management Plan to the House
subcommittee budget recommendation was a reduction of
$10,773.4 million, which was a 32.2 percent decrease. She
highlighted the $300 thousand savings due to combining
certain areas. There was also intent language included
decreasing the budget by $600 thousand. The department had
begun reducing its footprint by $100 thousand. The
subcommittee recommended an additional reduction of $300
thousand. She relayed that some of the departments were
initiating some of the reductions on their own which she
was encouraged by.
1:57:12 PM
Co-Chair Neuman thanked the members for their efforts.
1:57:24 PM
Representative Kawasaki asked about the location of the oil
and gas items in the agency totals if they were removed
from DNR'S budget. He wondered if there was a separate
appropriation.
Representative Pruitt repeated the total amount of funding,
$26,681.8 million, and reported that the amount was not
necessarily designated in another specific location.
1:58:01 PM
Co-Chair Neuman invited his staff to review the changes
that were adopted in the committee substitute. Ms. Brown
would review the various changes and Mr. Ecklund would
recap some of the changes and discuss the UGF reports.
1:58:42 PM
JOAN BROWN, STAFF, REPRESENTATIVE MARK NEUMAN, explained
the number changes in the committee substitute:
Mr. Co-Chair, there were a few changes made to section
1 of the bill that modified the subcommittees'
recommendations.
In the Department of Administration, we changed the
following: We removed the conditional language
allowing the commissioner to transfer up to $1 million
across appropriations; We added $303.9 of General Fund
Program Receipts to the Purchasing allocation in
General Services which will allow the department to
implement a new vendor fee to offset a portion of the
$659,900 unrestricted general fund reduction to
support ongoing work. This funding is seed money to
implement the Shared Services initiative. We restored
$2.8 million of Inter-Agency Receipts for Central
Mail. Without this restoration, costs to agencies
would increase by over $600,000.
Mr. Co-Chair, in the Department of Education and Early
Development we also removed the conditional language
allowing the commissioner to transfer up to $1 million
across appropriations.
Mr. Co-Chair, we removed all of the appropriations for
the AKLNG project from the Departments of Law (Note:
$700.0 UGF), Natural Resources, and Revenue, along
with the operating funding for the Alaska Gasline
Development Corporation. The three departments'
Unrestricted General Fund reduction totals nearly
$28.6 million and AGDC's funding was $12.9 million
Other Funds. These agencies are reviewing their AKLNG
spend and will be submitting scrubbed budgets that
will pay for the state's share of costs to finish Pre-
FEED. We will consider those scrubbed budgets during
the amendment process next week.
Mr. Co-Chair, the other change in the numbers section
was a fund source switch in the University of $24.7
million from Unrestricted General Funds to Designated
General Funds from the PCE Endowment Fund. The $24.7
million is the projected amount available for
distribution above the amount needed for the PCE
program.
Mr. Co-Chair, those were the only changes made in the
numbers section.
Mr. Co-Chair, now I'll identify the changes made in
the language sections.
Page 56, line 1, Section 4, Legislative Intent, we
restored a legislative intent provision by adding
subsection (b) that requires agencies to contact the
University for research and analytical contractual
services.
Page 56, line 14, Section 6, we added back intent that
has been in the budget many years that requires the
executive branch to report on transfers of funds in
and out of the personal services line item.
Page 57, line 12, Section 8, Alaska Housing Finance
Corporation, in subsection (c), we made the annual
fund change from the statutory budget reserve fund to
the Alaska capital income fund for any excess dividend
funds.
Page 58, line 25, Section 10, Alaska Industrial
Development and Export Authority, in subsection (b),
we made the annual fund change from the statutory
budget reserve fund to the Alaska capital income fund
for any excess dividend funds.
Page 59, line 12, Section 11, Department of
Administration, we added a new subsection (e), that
incorporated the Governor's amendment for $932,100 in
costs that will be incurred by the Division of Finance
for the single audit for the Department of Health and
Social Services.
Page 63, lines 11 and 12, Section 16, Department of
Natural Resources, in subsection (e) we added the
phrase "not to exceed $1,125,000" for firefighting
crews.
Page 63, lines 25 - 31 and page 64, lines 1 - 4,
Section 19, Office of the Governor, this is a new
section that adds funds for the on-year election costs
that the Governor had submitted as a $3.8 million
capital project. One of the issues with funding
elections has been the dramatic funding changes in the
Governor's budget every year. In an election year, the
budget increases by nearly $4 million and then the
next year the Governor's budget decreases by $4
million. To eliminate those funding swings, this
language splits the requested funding in half and
appropriates each half for two years. Subsection (a)
appropriates $1.8 million for FY 16 and FY 17 as the
Division of Elections has found that they are having
to start election activities earlier. Mr. Co-Chair,
subsection (b) appropriates $120,000 from the election
fund just for FY 17. And subsection (c) appropriates
$1.8 million for FY 17 through FY 18.
Page 70, Section 23, Fund Capitalization, on line 28,
we added a new subsection (d) to deposit $7.5 million
from the general fund to the group health and life
benefits fund to ensure sufficient reserves in the
fund.
On page 71, lines 11 - 18, we relocated the FY 17
public education fund capitalization provision from
section 24, Fund Transfers, to this Fund
Capitalization section and it is now subsections (h)
and (i). Based on the new subsection (j), we reduced
the FY 17 unrestricted general fund in subsection (h)
by $145 million
On line 19, we appropriated $435 million from the
general fund to the public education fund in new
subsection (j) effective in FY 16.
What had been subsection (p), the deposit of $35.4
million to the community revenue sharing fund has been
deleted.
Page 73, Section 24, Fund Transfers, on line 22, we
added a new subsection (c) that deposits $80 million
from the general fund to the Alaska higher education
investment fund.
On page 74, line 14, subsection (g) for the vaccine
assessment was relocated from what had been subsection
(k). We also accepted the Governor's amendment
deleting what had been subsection (l), the $5 million
deposit into the renewable energy grant fund.
Page 75, Section 25, Retirement System Funding, on
line 11, in subsection (a) pertaining to the public
employees' retirement system, we reduced the amount of
the deposit by nearly $24 million from $99.2 million
to $75.2 million as we are still waiting to receive
the new actuarial valuation.
Starting on line 15, in subsection (b) relating to the
teachers' retirement system, we changed the fund
source from 100 percent from the general fund to $40
million from the general fund and $76.7 million from
the Alaska higher education investment fund.
Subcommittees had removed three retirement related
appropriations from section 1, the numbers section,
and we have now added them to this language section to
consolidate all retirement-related appropriations.
On line 22, new subsection (c) pertains to the normal
costs for the Alaska National Guard and Alaska Naval
Militia retirement system.
On line 27, we made technical wording changes to what
is now subsection (d).
On page 76, new subsections (e), starting on line 1,
and (f) starting on line 5, relate to the Elected
Public Officers Retirement Plan and the Unlicensed
Vessel Personnel Annuity Retirement Plan,
respectively.
We deleted what had been section 27, Constitutional
Budget Reserve Fund, as the legislature will craft a
solution to fill the FY 17 budget deficit later this
legislative session.
Page 78, starting on line 18, Section 29, Statutory
Budget Reserve Fund, we added this new section to help
fill the FY16 deficit per a Governor's amendment. When
the Statutory Budget Reserve Fund was used to resolve
the FY 15 deficit, we believed the fund had been
liquidated, so this language was not included in the
FY 16 budget bills.
Finally, Mr. Co-Chair, conforming changes were made to
the lapse, retroactivity and effective date sections.
Co-Chair Neuman indicated that Mr. Ecklund would highlight
the UGF reports and other legislative changes that would
help keep the budget in the $4.1 billion range.
2:08:37 PM
PETE ECKLUND, STAFF, REPRESENTATIVE MARK NEUMAN, explained
that there had been a reordering of sections per the
direction of Legislative Finance Division. He said that
there were changes to the numbers section and highlighted
that the AKL&G funding for pre-feed had been removed with
the expectation that better estimates were coming from the
departments involved. He stated that the concentration of
efforts had been on UGF because the difference between UGF
yearly revenue, and UGF yearly expenditures, was equal to
the fiscal gap faced by the state. He turned to the backup
documents labeled A through D. He spoke to report A,
"Numbers and Language UGF Totals for All Agencies", and
pointed out the middle column, House Sub, which detailed
agency-by-agency the UGF expenditures. He referred to the
total of $3.821,995.3, which was $678.2 million less in UGF
from FY15. He relayed that the comparison to FY15 reflected
the work done by the committee during the 29th Legislature.
He said that when statewide items were added in the same
column they totaled $4,093,520.1. He turned to report B,
which contained UGF non-formula numbers and language. He
said that these numbers reflected the day-to-day running of
state government. He pointed out to the committee the
column for the House Subcommittees, and noted that there
had been a reduction of $447.6 million in day-to-day state
government since FY15. He spoke to the same column on
report C, which listed UGF for formula programs totaling
$1.986 million, a 10.4 percent reduction form FY15. He
turned to the final report, D, which contained all funds
that were spent in state government, statewide, for all
agencies.
Mr. Ecklund stated that this was the beginning of the
process for the Operating Budget and that there were three
significant pieces of legislation that would have an impact
on the budget: Medicaid Reform, Criminal Justice Reform,
and Tax Credit Reform. He attested that there were many
other things outside of this appropriation bill that the
committee, and the legislature as a whole, could do to
effect the budget.
2:15:08 PM
Co-Chair Thompson MOVED to ADOPT the proposed committee
substitute for HB 257, Work Draft 29-GH2742\H (Wallace,
2/27/16).
There being NO OBJECTION, it was so ordered.
2:15:51 PM
Ms. Brown noted three changes to the Mental Health Budget:
In section 1, we deleted the same conditional language
that gave the commissioners of Administration and
Education the ability to transfer up to $1 million
across appropriations.
The only other change we made is on Page 12, Section
4, in capital projects. Five mental health capital
projects were submitted in the FY 17 budget. Each year
the House Finance Committee removes one capital
project. This year we've deleted the Department of
Transportation and Public Facilities project for
Mental Health Coordinated Transportation and Vehicles
for $1.1 million.
The other body, in its version of the Mental Health
bill, will add back that project and delete the four
capital projects in the House's bill, in order to make
all of the mental health capital projects subject to
Conference Committee.
Representative Gara referred asked whether the house
subcommittee column on budget backup sheets A through D
reflected FY17 numbers.
Mr. Ecklund replied in the affirmative.
Representative Gara referred to Page 75, lines 19 and 20 of
HB 25:
(1) the sum of $40,000,000 from the general fund;
(2) the sum of $76,699,959 from the Alaska higher
education investment fund (AS 37.14.750);
Representative Gara queried the remainder of the higher
education fund once the appropriation was deposited.
Mr. Ecklund responded that the remainder would be
approximately $400 million.
Representative Gara asked whether the legislature had
consulted with student loan managers to ensure that the
money left over would be sufficient to pay for statutory
requirements.
Mr. Ecklund believed that there would be sufficient funds.
2:19:07 PM
Representative Kawasaki understood that community revenue
sharing had been deleted completely from the appropriation
bill.
Mr. Ecklund explained that the governor had requested a $35
million dollar supplemental in order to bring the revenue
sharing program up to a $50 million payout. He said that
the CS denied the increment request, resulting in a payout
level of $38 million in FY17 for community revenue sharing,
$25 million in FY18, with funding for the program ending in
FY19.
2:19:47 PM
Representative Kawasaki asked whether the money that had
been removed for the AKL&G project had been requested in
the FY17 budget.
Mr. Ecklund responded in the affirmative.
2:20:05 PM
Representative Munoz voiced concerns that the intent
language from the Department of Environmental Conservation
finance subcommittee had not been included in the cs.
Mr. Ecklund retorted that the subcommittee may have
included recommendations in their narratives, but that no
intent language adopted by the subcommittee had been
removed from the cs.
Representative Munoz asserted that the intent language
adopted by the subcommittee had not been drafted into the
bill. She believed that the bill should reflect the work of
the subcommittee.
Mr. Ecklund said that he would work with Legislative
Finance to amend any possible "glitches".
2:21:09 PM
Representative Pruitt asked how much was being withdrawn
from the higher education fund for FY17.
Mr. Ecklund explained that were roughly $15 million for
scholarships and grants, as well as other appropriations
within the Department of Education and Early Childhood
Development (DEED) of approximately $5 million.
Representative Pruitt surmised that the total withdrawal
was approximately $90 million.
Mr. Ecklund replied that $90 million was a close
approximation.
Representative Pruitt asked how much of the fund would be
available in 2017 for scholarships.
Mr. Ecklund responded that there would be roughly $15
million to $20 million available.
Representative Pruitt understood that next year there would
be approximately $75 million that would wither be added to
the general fund, or would need to come from a different
source if budget levels remained the same. He surmised that
the appropriation was a one-time event.
Mr. Ecklund explained that appropriating from the higher
education fund would be sustainable for the next four
years.
Representative Pruitt asked whether it would be sustainable
at the $90 million level for the next four years.
Mr. Ecklund explained that there was approximately $400
million in the fund, which would be sustainable for 4 years
at $90 million per year.
Co-Chair Neuman interjected that the higher education fund
could be a source of funding for anything that the
legislature decided to use it for and even to the point of
depletion.
Representative Pruitt understood that the bill reflected
the intent that in 4 years the higher education fund would
not be available for the scholarships for which it had been
initially intended.
Co-Chair Neuman stated that, at this point in the state's
financial troubles, the higher education fund would
disappear unless other funds became available to replenish
it.
2:24:42 PM
Representative Wilson asked about the difference between
the intent of the higher education fund and the intent of
the Power Cost Equalization fund (PCE).
Mr. Ecklund explained that the higher education funds had
been used for more in the budget than just the scholarship
and grant programs, within DEED, that were related to
higher education. He furthered that using that funding for
the teacher retirement system was legitimate because it was
connected to cost associated with the classroom. He said
that PCE funds were used in the University budget realizing
that the university had large energy and costs spread
across multiple campuses.
Representative Wilson wondered whether it would make sense
to use the state's other funds to help fund the general
fund over the next 4 years.
Mr. Ecklund replied that the amount that had been
appropriated to the University had been excess earnings on
the PCE fund and had not been taken from the principal of
the PCE endowment. He said that the current intent was not
to spend own the principal of the PCE fund in this budget
cycle.
2:27:46 PM
Co-Chair Neuman indicated that deeper discussion would take
place on the issue as the budget process moved forward.
Vice-Chair Saddler noted that intent language for the
Division of Juvenile Justice had been left out of the cs.
Co-Chair Neuman requested that members note any areas where
subcommittee intent language may have been omitted.
2:28:56 PM
Representative Guttenberg asked how extra PCE funds had
been appropriated in the past.
Ms. Brown replied that the formula allowed for up to 7
percent of the fund to be distributed annually for the PCE
program. She shred that currently only 4 was needed for the
program; the difference between the 4 and 7 percent was
what would be appropriated to the University.
Representative Guttenberg queried how the level needed to
fulfill the obligation to the PCE fund was determined.
Ms. Brown replied that AEA used an extensive formula to
determine the number and then submitted a budget for the
program, which the legislature had always funded at 100
percent.
Representative Gara understood that in FY16, earnings from
the higher education funds had been used, but that FY17
would be the first year that principal would be used for
the Operating Budget.
Mr. Ecklund replied that he did not know.
2:31:11 PM
Representative Gara said that the backup document reflected
a cut in statewide totals. He stated that statewide total
expenditures had gone from $5 billion in the 2016
management plan to $4 billion in the FY16 subcommittee
report. He asked for clarification in the difference in
numbers.
Mr. Ecklund replied that it was a combination of the
hundreds of millions in reductions to agency budgets, both
formula and non-formula. Additionally, tax credits were
reflected differently. He said that in the statewide
category were debt service, retirement costs, and tax
credits, which had all been reduced.
Co-Chair Neuman asked about the estimated reduction to the
TRS payment.
Mr. Ecklund replied that actuarial numbers were still
forthcoming.
Representative Gara asked whether the $123 million under
"state retirement payments" on document A, included the $70
million from the higher education fund.
Mr. Ecklund replied that there was approximately $75
million in UGF PERS, $40 million in UGF TRS, $6 million in
the judicial retirement system, and other smaller
retirement systems, which totaled the $123.4 million.
Representative Gara understood that the $70 million from
the higher education fund would be added and was not UGF.
Ms. Brown replied in the affirmative.
Mr. Ecklund replied in the affirmative.
2:34:52 PM
Representative Gara understood that the governor's proposed
tax credits had yet to be adopted and wondered why oil
company tax credit reduction were already being considered
during the budgeting process.
Mr. Ecklund answered that there was no change in the tax
credits from the governor's proposed budget to the cs. He
added that there was existing legislation that would
address the bulk of the remaining tax credit liability, and
future tax credits that had yet to be earned. He said that
the tax credit conversation would happen around other
pieces of legislation.
Representative Gara recalled that earlier in the session
the committee had agreed not to put numbers in the budget
based on not had bills passed.
Mr. Ecklund clarified that the number that the governor
proposed in the initial budget had been statutorily
authorized. Mr. Ecklund stated that the governor had had
not put in a ceiling, but a floor.
Representative Munoz asked for the balance of the higher
education fund after the funds were allocated for the
retirement payment.
Mr. Ecklund offered to provide the numbers at a later date.
Representative Munoz asked whether the state would be able
to meet its obligation to students.
Mr. Ecklund replied that there was plenty of money in the
fund to support students.
Representative Munoz asked whether the fund would continue
to be self-sustaining.
Mr. Ecklund answered that there was over $400 million in
the higher education fund. Depending on the actions of
future legislatures the program would either continue to
work, or not.
Representative Munoz stated that the PCE funds brought the
state's investment in the University up to $324.7 million.
2:38:21 PM
Mr. Ecklund answered in the negative. He clarified that the
subcommittee had recommended $300 million in UGF and the
bill had swapped out $24.7 million of UGF for DGF from the
PCE fund.
Co-Chair Neuman noted that the UGF had been reduced.
Representative Munoz understood that $24.7 million from the
PCE fund would go to the University.
Mr. Ecklund answered that there had been an increase of
$24.7 million through the PCE fund for the University,
which had resulted in a UGF decrease of $24.7 million.
Representative Munoz asked for verification that the amount
coming from the subcommittee was $300 million, less the
$24.7 million in UGF.
Mr. Ecklund replied in the affirmative, but the PCE funds
would bring the total back up to $300 million.
Representative Pruitt asked where the $145 million was
coming from related to UGF in fund capitalization.
Mr. Ecklund answered that the funds would come from the
public education fund.
Representative Pruitt asked how much would be left in the
public education fund after the shift of funds to the UGF.
Mr. Ecklund shared that there was $435 million in the
public education fund and that use of the fund could occur,
if nothing else changed, for at least the next three years.
Representative Pruitt understood that the fund would be
eliminated, if used over the next 4 years, to pay for tax
credits.
Mr. Ecklund clarified that $145 million would be expended
from the public education fund in FY17, and that the same
withdrawal could be taken out over the next 3 years -
including FY17.
Co-Chair Neuman stated that there was a Public Education
Fund and a Higher Education Fund.
Representative Pruitt said that he understood the
difference.
2:43:15 PM
Representative Gara understood that $145 million was being
taken from the public education fund. He said that the bill
also proposed the use of $70 million from the higher
education fund. He wondered why there was not a total of
$215 million listed in the backup.
Mr. Ecklund relayed that the numbers pertaining of the
higher education fund could be found in the numbers related
to the state retirement payments section of the document.
Representative Gara asked whether taking $145 million from
the public education fund impacted the money available to
pay the K-12, current, base student allocation (BSA).
Mr. Ecklund answered that the foundation formula would be
paid at 100 percent, including the statutory increase.
Representative Gara understood that $70 million from the
higher education fund would be used for the state
retirement system. He wondered where the additional $30
million for retirement would come from.
Mr. Ecklund answered that the PERS payment was $24 million
lower awaiting the new actuarial numbers, and that $76.7
million would come from the higher education fund.
Co-Chair Neuman stated the committee would examine the
budget in deeper detail at another time.
Representative Gara noted that some of the numbers on the
detail sheets did not correlate with the numbers in the
bill.
Co-Chair Neuman replied that he did not have all of the
details in front of him. He would follow up on the issue.
Co-Chair Neuman discussed housekeeping. He reminded
committee members that the deadline for amendments was
Thursday, March 3rd at 5PM.
RECESSED
2:46:47 PM
RECONVENED
4:02:22 PM
Co-Chair Neuman addressed the agenda.
^PUBLIC TESTIMONY: JUNEAU
4:04:46 PM
DIXIE HOOD, SELF, JUNEAU, spoke on behalf of low income
seniors. She spoke in support of educational programs from
pre-K to college level. She testified against cuts to
education and the University. She shared that she is
currently 82 years old, could not afford to retire and
could not live on social security alone. She maintained a
profession as a marriage and family therapist. She stated
that revenue increases were the solution, not more cuts.
She supported an income tax, increased taxes on alcohol and
tobacco, and an increase to the Alaska Marine Highway
System (AMHS) budget.
4:08:56 PM
MARY HAKALA, SELF, JUNEAU, urged the committee to safeguard
public education to the maximum extent possible. She asked
the committee to reinstate an income tax. She relayed that
her family's income had been commercial fishing; her family
had sought out new revenue when needed. One of the
important components of supporting her family was
education. She stressed that they had never sacrificed
education and opportunities for their children. She spoke
to the importance of children and the future. She stressed
that investing in early childhood paid dividends.
4:11:09 PM
GORDON KRUSE, DIRECTOR, FISHERIES DIVISION, UNIVERSITY OF
ALASKA FAIRBANKS, JUNEAU, testified in support of funding
for the University. He thanked the committee for its past
support. He spoke against cuts of $50 million; such deep
cuts would do long-term damage to the University. He
provided several points to back up his testimony. He stated
that every $1 million in state funding for research brought
in $4 million in external research grants. He relayed that
his program researched declines of western Alaskan salmon.
The program had a huge impact on Alaskan fisheries; it
provided training to Alaska's fisheries workforce. He
stressed the importance of diversifying the state's revenue
including a sustainable plan to use Permanent Fund
earnings, a modest income tax that included large non-
resident workforce, tax on mining, and a revision to oil
tax credits.
4:13:23 PM
MARK MILLER, SUPERINTENDENT, JUNEAU SCHOOL DISTRICT,
JUNEAU, spoke against clearcutting education budgets. He
shared that throughout his career he had cut millions of
dollars from districts. He had learned that no matter how
hard it got, cuts should be made with a scalpel and not a
chainsaw. He stressed that clearcutting resulted in
unintended consequences and collateral damage. He relayed
that the Department of Education and Early Development
(DEED) provided services that were critical to the school
district, including certifications of teachers and
administrators in a timely manner. He spoke to other
benefits provided by the department.
4:15:34 PM
BRUCE VAN DUSEN, EXECUTIVE DIRECTOR, POLARIS HOUSE, JUNEAU,
spoke in support of behavioral health treatment and
recovery grants, which were vital to combatting substance
abuse and addiction. He relayed that the grants reduced
emergency room use through prevention and intervention. The
grants were also important in reducing recidivism in the
criminal justice system. Polaris House used the funds to
secure safe and affordable housing, access education
programs, and receive services available in the community.
All of the funds were returned to the community to support
the local economies.
4:17:13 PM
CRYSTAL BOURLAND, EXECUTIVE DIRECTOR, NATIONAL ALLIANCE ON
MENTAL ILLNESS (NAMI), JUNEAU, spoke in support of funds
for behavioral health treatment and services. She had seen
what happens when patients did not receive medical and
other services for mental illness. She stated that patients
could end up in mental health hospitals, emergency rooms,
and other expensive locations. She stressed that the cuts
would negatively impact Alaskans.
4:18:51 PM
JOAN O'KEEFE, EXECUTIVE DIRECTOR, SAIL, JUNEAU, spoke in
support of funds for Southeast Alaska Independent Living
(SAIL). She explained that SAIL was a center for
independent living and an aging and disability resource
center. The agency had served over 4,000 Alaskans the
previous year. She shared that in FY 17 the budget would
move from the Department of Labor and Workforce Development
(DLWD) to the Department of Health and Social Services. The
senior grants were slated for a 5 percent reduction. There
had been an 11 percent reduction for centers for
independent living while under DLWD. She maintained that
the cuts were short-sighted and would ultimately cost the
state more and more. The expenditures saved the state money
by transitioning Alaskans back to their home communities.
She stated that the savings were $1 million to the state.
The funds would prevent them from having to move into more
expensive care. She urged the committee to restore funding
for community and developmental disability grants and
other. She asked for money for the general relief
assistance.
4:21:20 PM
MAXINE DOOGAN, COMMUNITY UNITED FOR SAFETY AND PROTECTION,
JUNEAU, was opposed to cuts to behavioral health and
recovery grants. She spoke in support of the protection of
safety of all people. The organization supported current
and former sex workers, sex trafficking victims and allies.
She was opposed to balancing the budget on the backs of the
most vulnerable people in Alaska. She did not want to pit
one vulnerable group against another. She opposed all of
the cuts to Alaska's most vulnerable citizens.
4:22:42 PM
MICHELE MORGAN, JUNEAU STOP HEROIN START TALKING, JUNEAU,
spoke against cuts to substance abuse treatment programs.
She discussed statistics about babies born addicted to
heroin. She stressed that the number of addicted babies
born per year was increasing significantly. The average
cost had been $88,000 for addicted babies. The costs did
not stop at birth. She stressed that crime in Alaska had
increased and the heroin problem was huge. She stated that
making cuts to substance abuse would create a perfect
storm. She stressed that the drug problem would crush the
state financially.
4:25:01 PM
WILLIAM MUSSER, SELF, JUNEAU, spoke from the perspective as
a recovering heroin addict. He was opposed to any cuts to
behavioral health grants and services. He stressed that he
had used substance abuse treatment services to get clean
and sober. He had needed appointments with behavioral
health specialists. He wanted to use any resource available
to become a great member of society. He shared personal
information about his work with people with mental
disabilities for the past eight years.
4:26:41 PM
TERRA BURNS, COMMUNITY UNITED FOR SAFETY AND PROTECTION,
JUNEAU, spoke in opposition to cuts to behavioral health
and substance abuse treatment programs. She stressed that
it was essential that people have access to necessary
services without going to jail. She stated that it cost
Alaska money when people had to go to jail to access
necessary services. She pointed to lengthy waiting lists
for programs. She urged the committee to oppose the cuts to
behavioral health.
4:27:52 PM
KARA NELSON, DIRECTOR, HAVEN HOUSE, JUNEAU, spoke against
cuts to behavioral health grants. She spoke from the
perspective of a recovering addict. She shared that Haven
House was a faith-based transitional home for women coming
out of prison. She stated that over 120 people per day died
from accidental overdose in America. She stated that there
were many people willing to do the work and they needed as
much support as possible. She urged the committee to
maintain behavioral health grants.
4:29:15 PM
ROSALIE NADEAU, AKEELA, JUNEAU, spoke in support of the
AKEELA House, which served heroin addicts. She spoke in
support of residential substance abuse programs. She
stressed that treatment programs did not qualify for
Medicaid. She relayed that in 1992 the AKEELA House had
received a grant of $681,000; in the current year it
received $695,000, which did not keep up with inflation.
She noted that there had been a cut of almost $9 million
cut. She believed many of the programs would be closing
that served the most severely addicted people. She stressed
that it would not offset in the key programs.
4:31:28 PM
DAVID LENDRUM, PROFESSIONAL HORTICULTURALIST, JUNEAU, spoke
against cuts to the Cooperative Extension Service. There
was significant misinformation and the only science-based
group that could support the community was the extension
service. He stated that there were generations of people in
Alaska who had never had the information and who had no
idea about agriculture or horticulture. He stressed that
people did not understand how to preserve food safely. He
stated that if the extension service was not available it
would cause a world of hurt. He stressed the importance of
the program.
4:33:08 PM
WALTER MAJOROS, EXECUTIVE DIRECTOR, JUNEAU YOUTH SERVICES,
JUNEAU, spoke in support of mental health and substance
abuse services. He shared that most of the youth receiving
services at JYS had experienced some form of childhood
trauma including sexual abuse, physical abuse, violence,
and neglect. He discussed that Alaska had made a lot of
gains in bringing kids back to Alaska to receive services.
The program helped prevent hospitalization and
incarceration. He testified in support of Medicaid, which
primarily funded behavioral health services. The program
had not received an increase in close to a decade. He
understood the challenge facing the legislature. He
stressed the importance of behavioral health grants.
4:35:13 PM
JAYNE ANDREEN, PRESIDENT, ALASKA PUBLIC HEALTH ASSOCIATION,
JUNEAU, spoke against a $3 million cut to public health and
public health nursing. She stressed the importance of a
public health system. She elaborated that the most of the
state was dependent on a patchwork of public health that
was put together by nonprofit organizations, public health
nursing, and tribal health corporations. She stressed that
the cuts would eliminate 30 nursing positions throughout
the state. Alaska had a very good lab system that could
diagnose individuals; however, the cuts would mean that lab
work would have to be sent out of state. She asked the
legislature to look at revenue generation.
4:37:30 PM
LORRAINE DEASIS, PARENT, JUNEAU, spoke against cuts to Mt.
Edgecumbe and the TCLL elementary program in Juneau. She
stated that the programs were well known and successful
Native education programs. They were year-round full
education systems within the school systems. She stressed
that people had been asking to expand the TCLL program to
the middle schools for years. However, the program had to
constantly fight for its existence. She believed $6 million
that went to the University for funding for Science,
Technology, Engineering, and Math would have gone a long
way to address the financial crisis. She spoke in support
of education funding. The programs had not been notified
that the funds were available. She questioned how the
situation could occur. She did not understand why the
University did not recognize credits from Mt. Edgecumbe.
She stressed that the University should be held to the same
standards.
4:39:53 PM
PAMELA WATTS, EXECUTIVE DIRECTOR, JUNEAU ALLIANCE FOR
MENTAL HEALTH, JUNEAU, spoke to the need for access to
resources for mentally ill Alaskans. She stressed her
opposition to cuts to behavioral health services. She
stated that access to needed resources for seriously
mentally ill adults may be disproportionately reduced with
any cuts to grants for the community behavioral health
centers. She stated that Medicaid did not come close to
covering the cost of care for the services. She stated that
community behavioral health centers may not be sustainable
without the grants. She spoke to the ability to maintain
care for individuals.
4:42:09 PM
MARIANNE MILLS, PRESIDENT, AGENET, JUNEAU, spoke in support
of using Permanent Fund earnings as a new fiscal option.
She stressed the importance of keeping older Alaskans in
their homes for as long as possible through the senior
grant program. She stated that it only cost $600 per senior
per year to fund the senior grants. A hot meal at the
senior center combatted malnutrition and isolation. She
spoke the importance of good nutrition and interaction with
other people. A nursing home placement cost $250,000 per
person per year. Caring for an older person could be very
demanding physically and emotionally. She discussed minor
home modifications that could relieve stress. She spoke in
support of adult day services.
4:44:24 PM
DEACON CHARLES ROHRBACHER, SELF, JUNEAU, spoke from the
perspective as a pro-life Roman Catholic deacon. He opposed
cuts to senior services and behavioral health programs. He
cited the New Testament where God showed particular concern
for widows, orphans, and the poorest and most vulnerable.
He believed the ethical and moral measure of any society
was demonstrated by the care and compassion it had for the
poor and most vulnerable. He discussed children who had
experiences of abuse and neglect. He asked what the state
wanted to spend its money on such as prisons and other. He
urged the committee to fully fund behavioral health.
4:46:53 PM
AMY LUJAN, EXECUTIVE DIRECTOR, ALASKA ASSOCIATION OF SCHOOL
BUSINESS OFFICIALS, JUNEAU, spoke in support of the
broadband assistance grant. She stated that the program had
benefitted 28 rural districts the previous year. She spoke
against a cut of over $1 million to the program. She
stressed the essential nature of the program. She spoke
against cuts to DEED, which were too deep. She discussed
relying on the department to help it with leveraging
federal funds for the former No Child Left Behind program,
e-rates, and other. She stressed that it was unrealistic to
eliminate travel and postage for DEED. She mentioned the
pre-K programs. She stressed that eliminating the program
would put the state out of sync with research-based studies
resulting in universal pre-K in many other states. She
supported a balanced approach.
4:49:44 PM
STAN LUJAN, BOARD MEMBER, ALASKA ASSOCIATION OF SCHOOL
BUSINESS OFFICIALS, JUNEAU, spoke in support of the
Imagination Library. He urged the reinstatement of funding
for Best Beginnings, Parents as Teachers, and other. He
discussed prison planning in Alaska. He discussed the cost
of the state's prison system, and pre-K programs. There was
an undeniable connection between literacy skills and prison
rates. He stated that high school dropouts were more likely
to end up in prison. He stressed the importance of reading
skills.
4:52:00 PM
RICHARD COLE, COASTALASKA AND KTOO, JUNEAU, spoke against
cuts to public broadcasting. He spoke to the benefits that
public radio provided to the state, specifically to rural
Alaska. He stated that public radio provided information
for public safety and helped support all of the programs
others had spoken in support of. He stated that the impact
of the cuts for rural communities would likely shut down
their radio stations. He spoke to the importance of the
public safety aspect that radio provided.
4:54:27 PM
ABBE HENSLEY, EXECUTIVE DIRECTOR, BEST BEGINNINGS, JUNEAU,
spoke in support of funding for Best Beginnings, Parents as
Teachers, and pre-K grants. She advocated for
recommendations made by a childhood advocacy group. She
understood the need to prioritize funding decisions. She
urged the legislature to seek revenue sources as it made
cuts. She stated that 71 percent of Alaskans supported
programs for early education even in difficult financial
times. She discussed that the brain underwent enormous
development in the first three years of life. She stressed
the efficiency of early intervention. She understood the
legislature had difficult decisions to make. She thanked
the committee for its time.
4:57:02 PM
CORINNE CONLON, SELF, JUNEAU, urged the committee to
reinstate University research and outreach funds. She
supported funding for the Cooperative Extension. She spoke
to her experience taking the master gardener class. She
stated that gardening in Southeast was much different than
in other areas in the state. She discussed supporting the
state's food stability. She was working to provide
education to the community on food sustainability. Her
daughter had been involved in the 4-H program for years;
the Alaska Experience Camp had taught survival skills.
4:59:12 PM
NAARA CONLON, STUDENT, JUNEAU, supported the continuation
of the Cooperative Extension.
4:59:30 PM
KEVIN ALLEN, HIGH SCHOOL STUDENT, JUNEAU, spoke in support
of education funds. He spoke in support of a $50 increase
to the Base Student Allocation (BSA). He provided a visual
image about what would happen with or without the increase.
He stated that it did matter because it involved Native
success support and Native para-educators. He believed that
the money was being stretched as far as possible; a lot of
the programs were at risk. He hoped the committee would
take his voice as the need.
5:01:54 PM
NICK CROWE, JUNEAU YOUTH SERVICES, JUNEAU, spoke against
cuts to the behavioral health services programs. He spoke
from the perspective of an abuse survivor. He discussed
that without the mental health facilities and JYS he would
not have succeeded to become a college freshman. Without
the help of the mental health facilities he would not have
come this far. He believed if the legislature cut the
budget there would be a decrease in help for individuals
facing suicidal tendencies and other. He stated that when
people were charged for the ability to get help it made it
more difficult.
5:04:07 PM
WHITNEY REEVES, 4-H LEADER, JUNEAU, strongly opposed cuts
to education and health services programs. She believed the
cuts would result in an increase of correctional costs. She
stated that 4-H taught community respect; cutting education
was a sad day. She stated that 4-H was part of the
University. She supported pre-K through post-secondary
education. She thanked the committee for its time.
5:05:22 PM
JORDEN NIGRO, CHAIR, KTOO BOARD OF DIRECTORS, JUNEAU, spoke
against cuts to public broadcasting. She spoke about the
importance of giving back to the community from her
personal perspective. She discussed issues such as
behavioral health services and to educate the state's
systems. She stressed that the budget could not be balanced
on the backs of the people served by the programs. She
asked the legislature to not cut past the governor's
proposed budget.
5:07:28 PM
DAVID EPSTEIN, SELF, JUNEAU, asked for a provision for
individuals to donate all or part of their Permanent Fund
Dividend as a credit against their state income tax burden.
5:08:21 PM
AMY JO MEINERS, 2016 ALASKA TEACHER OF THE YEAR, JUNEAU,
spoke to the importance of funding education. She asked the
committee to work to stabilize multiple funding sources.
She urged the committee to give her generation the same
opportunity to support services as her grandparents once
had. She spoke to the importance of health, safety, and
education. She stressed that it was a crucial time to focus
on education for students.
5:10:48 PM
JUDY CAVANAUGH, SELF, JUNEAU, testified against cuts to
public radio. She depended on the high quality news on the
public radio station. She believed the statewide public
broadcasting system helped to keep remote Alaskans
connected to urban areas. She asked the committee to look
at other revenue including income tax. She asked the
committee to not cut public radio past the governor's
proposed level.
5:12:49 PM
JARED WEEMS, PHD FISHERIES STUDENT, UAF, JUNEAU, spoke
against cuts to the UAF research budget. He stressed that a
student was not an island; preparing a student in a school
without chance for further research or educational
opportunities was not the purpose of the university
setting. He was in a PhD program in the University. He
advocated for keeping the research funds intact, which
would serve the public through fisheries management and
other. He spoke to the importance that students and faculty
reach out to the community.
5:14:44 PM
GAIL DABALUZ, UAFAA, JUNEAU, spoke in support of the UAF
alumni association. She hoped that the legislature would
continue to prioritize and consider education and workforce
training as a high priority. The association supported a
budget closer to Governor Walker's budget of $335 million
representing a 14.5 percent reduction from the current
fiscal year. The organization was concerned that deeper
cuts would hurt students and the economy. She supported
funding to allow the UAF engineering building to continue.
She spoke to increasing alumni giving. She thanked the
committee for its time.
5:16:28 PM
KEVIN BELCOURT, SELF, JUNEAU, spoke in favor of Department
of Health and Social Services and its programs having to do
with recovery and addiction. He relayed his personal
experience with drug addiction. He stressed that without
the help of social services he would not be here today. He
had survived because of the current programs available. He
emphasized that there was a huge problem with addiction in
Alaska. He emphasized maintaining support for various
health and social services programs.
5:17:32 PM
BRENDA TAYLOR, EDUCATION, JUNEAU, spoke in favor of
maintaining the $50 increase to the BSA level. She believed
it was essential to create strong, quality education for
pre-K to university students, especially in difficult
economic times. She felt there was nothing left to cut. For
example, the high school library staff had been reduced so
much that the library could no longer be open at lunch
time. She wanted efficiency in the use of funds. She spoke
in favor of an income tax and make funding count.
5:20:34 PM
ANDI STORY, JUNEAU SCHOOL BOARD, JUNEAU, spoke in support
of education. She stated that one of the biggest
responsibilities and expenditures in the budget was the
necessary funding of education. She stated that how well
the state educated its students today will be reflected in
the quality of the workforce tomorrow. She emphasized that
the public repeatedly prioritized education as a high
value. The board requested the committee to prioritize full
funding of the BSA with the scheduled $50 increase. She
understood that the state was facing tough fiscal times.
She spoke in support of the adoption of a sustainable
fiscal plan that maintained essential services necessary
for a strong economy. She relayed that the Juneau School
Board was in its sixth year of making cuts. She noted that
the states seeing the most academic gains had strong early
learning programs. She stated that school board members
were working countless hours to ensure good education for
students.
5:22:47 PM
GEORGE SCHAAF, KTOO, JUNEAU, spoke against cuts to public
broadcasting. He shared that the modest funding for public
broadcasting was leveraged many times over by friends,
neighbors, businesses, and nonprofit organizations. He
stated that it was the kind of partnership that should be
expanded and not dismantled. He stressed that public
broadcasting was critical to Alaskans on a daily basis,
especially to rural areas. He stressed that without the
public safety and emergency information services provided
by public radio, rural Alaskans would lose a lifeline
connecting them to the rest of the state. On-the-air
broadcasting remained relevant; the internet was not a
substitute. He stated that services like Gavel to Gavel
were important for transparency. He urged the committee to
not cut public broadcasting beyond the governor's proposal.
5:24:55 PM
JOAN CAHILL, NATIONAL COUNCIL ON ALCOHOL AND DRUG
DEPENDENCE JUNEAU, JUNEAU, spoke against cuts to behavioral
health services. She emphasized the importance of saving
money, specifically through maintaining funding of
behavioral health treatment and recovery grants. She
discussed that the critical cost savings programs were
currently slated for a $3 million reduction. She stressed
that every dollar of behavioral health investment yielded
exponential savings to Alaska in healthcare, emergency
services, preventing degradation of communities,
homelessness, crime, and other. She stressed that the
national heroin epidemic commanded attention; Alaska could
not afford to leave the items unattended. She urged the
committee to reinstate the $3 million cut to behavioral
health services.
5:26:34 PM
STEPHANIE ROUGHTON, PARENTS AS TEACHERS, JUNEAU, spoke
against cuts to the Parents as Teachers program. She
relayed that the program had helped her be more confident
and at ease as a mother. She strongly supported the
Imagination Library that provided parents with additional
resources that they may not have access to. She spoke to
the importance of the resource in her life. She begged the
committee to avoid cutting the program.
5:27:58 PM
CATALINA IPUTI, SELF, JUNEAU, spoke in support of Juneau
Youth Services and the Alaska Military Academy. She had
been a substance abuse addict in the past. She spoke to her
personal experience. She stressed the importance that
programs had held in her life. She was grateful that the
programs had graced her life with necessary skills to help
her move forward with goals and ambitions. She stressed the
importance of mental health clinics. She discussed that
depression, suicide, and addiction ran very strong. She was
honored to speak to the committee about how much her
experience had impacted her life. She stressed the positive
impacts that mental health services had on Alaskans.
5:30:39 PM
EMILY THOMPSON, PARENTS AS TEACHERS, JUNEAU, spoke in
support of Parents as Teachers and Best Beginnings. She
stated that there was more brain growth that occurred in
the first 1,000 days of life than in the rest of a person's
life. She shared that Parents as Teachers worked to boost
that growth. She discussed that the program was evidence-
based that was proven to reduce the instances of childhood
abuse and neglect. Participants reported improved
parent/child relationships, lower stress, and increased
school readiness all for $4,000 to $5,000 per year per
family. She referred to the Adverse Childhood Experiences
study showing that more of the events that happen to a
person during childhood changed their potential as adults.
She spoke to the goal of bringing down rates of abuse. She
stated that eliminating early childhood education increased
the chances a person would go to prison later in life. She
asked the committee to cap her Permanent Fund Dividend and
implement an income tax. She was willing to pay for
services that mattered to the state's future.
5:32:16 PM
CLAIRE GELDHOF, SELF, JUNEAU, spoke in support of early
childhood education. She had been faced as a nurse working
with people with heroin problems that she believed began
and were related to early childhood education funding and
support services for families. She shared that on a daily
basis she referred and utilized services through support
groups such as Parents as Teachers. She stated that service
providers reached for programs of that nature when helping
families facing abuse and addiction. She recognized that it
was a difficult time, but it was a wonderful time to come
to the table to revisit Alaska as we know it and to work
together to create a better future.
5:33:42 PM
RACHEL DISNEY, SELF, JUNEAU, spoke in support of education.
She urged the committee to continue funding early
education. She spoke to preventing many of the problems
that occurred in later life. She stated that the money
saved by cutting early education was only a drop in the
bucket compared to what it would cost later.
5:34:47 PM
DAVID LOVE, SELF, JUNEAU, spoke in support of early
childhood education and the Cooperative Extension. He
stated that the program helped to support food security in
Alaska. He shared information about his business Root
Cellar Farm in Gustavus. He discussed soil management work,
food safety, and local food resources. He relayed that the
Cooperative Extension had benefitted the local economy.
Cooperative Extension provided youth with apprenticeship
programs and life skills. He asked for continued funding
through UAF.
5:36:42 PM
AARON BRAKEL, SELF, JUNEAU, spoke in support of finding
revenues to fund the state operations. He supported the
testimony by others. He listed mental health, early
childhood, public broadcasting, cooperative extension, and
other needs. He strongly believed that we need to look to
ourselves to fund the needed government services. He
understood that the state would not have the ability to
continue to fund programs at previous levels. He encouraged
the use of a mix of funding sources including an income tax
and caps to the Permanent Fund.
5:39:10 PM
BRIAN HOLST, SENIOR CLASS PRESIDENT, JUNEAU DOUGLAS HIGH
SCHOOL, JUNEAU, spoke in support of education. He stated
that limited budgets were impacting students. He felt that
the education he received had prepared him for college, but
he was worried that his younger brother would not have the
same opportunities. He believed the children of today would
become the leaders of tomorrow and should be taught how to
lead effectively. He urged the committee to invest in
education.
5:40:33 PM
BRIAN HOLST, DIRECTOR, JUNEAU ECONOMIC DEVELOPMENT COUNCIL,
JUNEAU, believed that it was in the power of the
legislature to largely determine whether the state went
into recession. He stated that severe cuts to spending
would weaken the state's economy and insufficient action on
addressing the state's revenue issues would further erode
confidence in the business community. He asked the
committee to keep investing more in Alaskans. He stressed
the importance of investing in education to give every
Alaskan a solid shot at a good future. He emphasized that
education was a sound economic development strategy. He
asked the committee to make the fiscal decisions to allow
for economic
5:42:41 PM
AMANDA GOINS, SELF, JUNEAU, spoke in support of early
education and Parents as Teachers. She wanted to stay in
the community. She stressed that visits from providers had
encouraged her to stay in Alaska despite challenges finding
daycare and other economic challenges. She encouraged the
legislature to continue the programs.
5:43:36 PM
BRUCE ROGERS, SELF, JUNEAU, discussed his personal
experience in Alaska. He spoke to the importance of
horticulture. Everything he had learned was from Alaska
Natives about self-sustainability. He spoke in support of
education. He spoke to his learning style. He relayed his
personal story.
5:47:00 PM
CHRIS ROSE, EXECUTIVE DIRECTOR, RENEWABLE ENERGY ALASKA
PROJECT, ANCHORAGE (via teleconference), testified in
support of the reinstatement of renewable energy fund money
and emerging energy technology funds. He stated that the
Alaska Energy Authority (AEA) estimated that the 64
projects that had been constructed thus far would save $60
million in diesel in the current year (30 million gallons
of diesel fuel). He stated that the state had invested $259
million in the fund since 2008. He spoke to leveraged
funds; there had been a great partnership between the state
and private sector. The dollars saved were making it easier
for people to stay in rural communities; $5 million would
keep the fund moving. He asked for the reinstatement of
funds that AEA needed to administer the programs. He
appreciated the committee's hard work.
5:49:31 PM
BETH WELDON, SELF, JUNEAU, spoke in support of full funding
for education. She shared that as a business owner in
Juneau, they hired blue collar workers. She stated that one
of the budget cuts would get rid of technical programs,
which was where she got her workforce. She asked the
committee to be creative in locating other revenue sources.
Co-Chair Neuman asked any other members of the public to
come forward.
5:50:43 PM
ELISE TOMLINSON, SELF, JUNEAU, spoke in support of
education. She loved living in Alaska and appreciated how
the legislature had supported the University and education
in general over the years. She hoped the committee would
consider exploring other means of revenue to help support
the services that made Alaska great. She did not want to
see people lose jobs and leave the state.
5:52:19 PM
AT EASE
5:58:47 PM
RECONVENED
Co-Chair Thompson discussed the schedule for the following
day.
ADJOURNMENT
5:59:43 PM
The meeting was adjourned at 5:59 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 256 CS WorkDraft HFIN vX Op bill 2-29-16 Version 2.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 |
| HB 256 Agency Summary Reports 2-29-16.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 |
| HB257 CS WorkDraft HFIN MH bill 2-27-16.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 257 |
| HB 256 HB 257 Op Budget Public Testimony Pkt. 1.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 HB 257 |
| HB 256 HB 257 Op Budget Public Testimony Pkt. 3.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 HB 257 |
| HB 256 HB 257 Op Budget Public Testimony Pkt. 6.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 HB 257 |
| HB 256 HB 257 Op Budget Public Testimony Pkt. 5.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 HB 257 |
| HB 256 HB 257 Op Budget Public Testimony Pkt. 4.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 HB 257 |
| HB 256 HB 257 Op Budget Public Testimony Pkt. 2.pdf |
HFIN 2/29/2016 1:30:00 PM |
HB 256 HB 257 |