Legislature(2019 - 2020)ADAMS ROOM 519

02/18/2020 09:00 AM FINANCE

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Audio Topic
09:05:12 AM Start
09:05:51 AM HB205 || HB206
09:05:58 AM Department of Natural Resources
09:14:34 AM Department of Labor and Workforce Development
09:22:04 AM Legislature
09:27:20 AM Department of Corrections
09:35:34 AM Department of Commerce, Community and Economic Development
09:37:34 AM Department of Law
09:54:57 AM Judiciary
09:59:15 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 205 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 206 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Closeouts TELECONFERENCED
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 18, 2020                                                                                          
                         9:05 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:05:12 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster  called the House Finance  Committee meeting                                                                    
to order at 9:05 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Jennifer Johnston, Co-Chair                                                                                      
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Andy Josephson                                                                                                   
Representative Gary Knopp                                                                                                       
Representative Bart LeBon                                                                                                       
Representative Kelly Merrick                                                                                                    
Representative Colleen Sullivan-Leonard                                                                                         
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Cathy Tilton                                                                                                     
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Kerry  Crocker,  Staff,  Representative Gary  Knopp;  Alexei                                                                    
Painter,  Analyst,  Legislative   Finance  Division;  Hannah                                                                    
Lager,  Administrative  Services   Director,  Department  of                                                                    
Labor and  Workforce Development,  Office of  Management and                                                                    
Budget,  Office  of  the  Governor;  Ryan  Johnston,  Staff,                                                                    
Representative   Neal  Foster;   Kris  Curtis,   Legislative                                                                    
Auditor,  Alaska  Division   of  Legislative  Audit;  Ashley                                                                    
Carrick, Staff, Representative  Adam Wool; Kelly Cunningham,                                                                    
Analyst,  Legislative  Finance Division;  Stephanie  Andrew,                                                                    
Staff, Representative  Adam Wool; Catherine  Reardon, Staff,                                                                    
Representative Andy Josephson.                                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 205    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 205 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 206    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 206 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
FY 21 FINANCE SUBCOMMITTEE CLOSEOUTS:                                                                                           
                                                                                                                                
     DEPARTMENT OF NATURAL RESOURCES                                                                                            
     DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                              
     LEGISLATURE                                                                                                                
     DEPARTMENT OF CORRECTIONS                                                                                                  
     DEPARTMENT   OF   COMMERCE,  COMMUNITY   AND   ECONOMIC                                                                    
     DEVELOPMENT                                                                                                                
     DEPARTMENT OF LAW                                                                                                          
     JUDICIARY                                                                                                                  
                                                                                                                                
Co-Chair Foster reviewed the meeting agenda.                                                                                    
                                                                                                                                
HOUSE BILL NO. 205                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain    programs;    capitalizing   funds;    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. 206                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:05:51 AM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF NATURAL RESOURCES                                                                                              
                                                                                                                                
9:05:58 AM                                                                                                                    
                                                                                                                                
KERRY CROCKER, STAFF, REPRESENTATIVE GARY KNOPP, addressed                                                                      
subcommittee recommendations for the for the Department of                                                                      
Natural Resources (DNR) (copy on file):                                                                                         
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Natural Resources  submits  recommended                                                                    
     operating  budgets for  FY 2021  to  the House  Finance                                                                    
     Committee.                                                                                                                 
                                                                                                                                
     The numbers-only budget  with amendment recommendations                                                                    
     totals:                                                                                                                    
     Fund Source: (In thousands of dollars)                                                                                     
     Unrestricted General Funds (UGF) 65,595.0                                                                                  
     Designated General Funds (DGF) 35,707.2                                                                                    
     Other Funds 36,265.1                                                                                                       
     Federal Funds 15,964.6                                                                                                     
     TOTAL 153,531.9                                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Natural  Resources held  four  meetings                                                                    
     with  the Department  analyzing the  Governor's Budget.                                                                    
     The Subcommittee  accepted 13  of the 16  Budget Action                                                                    
     Items proposed.                                                                                                            
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 620                                                                                                    
     Permanent Part-time 247                                                                                                    
     Temporary 52                                                                                                               
     TOTAL 919                                                                                                                  
                                                                                                                                
     The following three items were not accepted:                                                                               
         Transfer from North Latitude Plant Material                                                                         
         Center for business process efficiencies.                                                                              
         Transfer Agriculture development allocation from                                                                    
          Agriculture appropriation to Fire, Land and                                                                           
          Water.                                                                                                                
         Transfer to Agriculture development for business                                                                    
          process efficiencies.                                                                                                 
                                                                                                                                
     The  conversation  in  Committee  revolved  around  the                                                                    
     impact these  proposals could  have on  the Agriculture                                                                    
     Industry, which ultimately resulted  in these items not                                                                    
     being adopted by this Subcommittee.                                                                                        
                                                                                                                                
     The   following  amendments   were  submitted   to  the                                                                    
     Department   of   Natural   Resources   House   Finance                                                                    
     Subcommittee for consideration:                                                                                            
                                                                                                                                
     1)  5,000,000  UGF 1004  (Inc  OTI)    Add  Funding  to                                                                    
     create new  transaction for  "Fire Risk  Reduction" and                                                                    
     Intent.  Which will  create a  new transaction  to fund                                                                    
     Fire  Risk Reduction,  create  of  fire risk  reduction                                                                    
     projects including - but not  limited to - fire breaks,                                                                    
     and maintenance of existing risk reduction projects.                                                                       
                                                                                                                                
     2)  $210,000  DGF  1021 -  Agriculture  Revolving  Loan                                                                    
     Fund, adds  one permanent  full time  position (Natural                                                                    
     Resource Specialist III, Range 18).                                                                                        
                                                                                                                                
     Both amendments were adopted.                                                                                              
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
                                                                                                                                
         Wordage Report                                                                                                      
         Operating Budget Transaction Compare between                                                                        
          21Gov and House Sub                                                                                                   
         Operating Budget Transaction Compare between                                                                        
          21Adj Base and House Sub                                                                                              
         Multi-year Agency Totals                                                                                            
                                                                                                                                
9:09:34 AM                                                                                                                    
                                                                                                                                
Representative   LeBon  referenced   the  natural   resource                                                                    
specialist  III position.  He asked  if  the department  had                                                                    
provided  detail  on  the reason  for  adding  the  position                                                                    
including  what its  function  would be  and  what had  been                                                                    
missing prior to adding the position.                                                                                           
                                                                                                                                
Mr.  Crocker deferred  to the  Legislative Finance  Division                                                                    
(LFD).                                                                                                                          
                                                                                                                                
ALEXEI  PAINTER,  ANALYST,   LEGISLATIVE  FINANCE  DIVISION,                                                                    
replied  that the  past  year the  governor  had vetoed  the                                                                    
funding for  two positions in  the allocation  that serviced                                                                    
and provided  new loans. The  position would replace  one of                                                                    
the two positions from the previous year.                                                                                       
                                                                                                                                
Representative Knopp  added that  there had been  two people                                                                    
servicing  existing loans.  He detailed  there was  about $8                                                                    
million  in the  fund that  was not  being utilized  because                                                                    
there was no  one there to originate and  process the loans.                                                                    
The position would take on the work.                                                                                            
                                                                                                                                
Representative Sullivan-Leonard asked  what fire suppression                                                                    
funding had  been included in  the supplemental  budget. She                                                                    
asked  what   the  discussion  had   been  related   to  the                                                                    
additional $5 million in the current budget.                                                                                    
                                                                                                                                
Mr.  Painter answered  that the  supplemental included  $110                                                                    
million  for fire  suppression activity.  The subcommittee's                                                                    
recommendations   added   funding    to   fire   suppression                                                                    
preparedness  for upfront  costs and  purchases. He  relayed                                                                    
that  the  increment was  paid  for  by  a reduction  of  $5                                                                    
million to fire suppression activity.                                                                                           
                                                                                                                                
Representative Sullivan-Leonard asked  Mr. Painter to repeat                                                                    
his last statement.                                                                                                             
                                                                                                                                
Mr.  Painter explained  that the  amendment  adopted by  the                                                                    
subcommittee  decreased  fire  suppression  activity  by  $5                                                                    
million and  increased fire  suppression preparedness  by $5                                                                    
million.                                                                                                                        
                                                                                                                                
9:12:07 AM                                                                                                                    
                                                                                                                                
Representative Wool  referenced the addition of  a permanent                                                                    
position for  the Agriculture Revolving Loan  Fund. He asked                                                                    
if  the  funding  would  come  out of  the  fund  and  would                                                                    
continue to draw  the fund down. He  considered the $218,000                                                                    
for  a salary  range 18  and  asked if  the amount  included                                                                    
money above and beyond the  cost of hiring the one position.                                                                    
He thought the  amount seemed out of balance for  a range 18                                                                    
position.                                                                                                                       
                                                                                                                                
Mr. Painter responded  that the interest rates  on the loans                                                                    
would  pay for  the position.  He explained  that previously                                                                    
the loan  program was  roughly self-sustaining.  He believed                                                                    
the  program had  lost money  due to  the McKinley  Meat and                                                                    
Sausage  Plant  that  had net  losses;  however,  the  loans                                                                    
themselves  had more  than made  up  the loan  administering                                                                    
costs.  The  cost  [$218,000]   included  the  position  and                                                                    
services costs  to pay the Administrative  Services Division                                                                    
for performing  the technical work  of servicing  the loans.                                                                    
Currently the  division was doing  the work  without funding                                                                    
directly from the loan program.                                                                                                 
                                                                                                                                
Vice-Chair  Ortiz  thought  there  had been  a  transfer  of                                                                    
positions  for  the  purposes  of  increasing  personnel  to                                                                    
permit  mariculture projects  within the  DNR budget  in the                                                                    
current budget cycle.                                                                                                           
                                                                                                                                
Mr. Painter  agreed that  a governor's  item had  funded two                                                                    
positions  that had  already been  transferred  but not  yet                                                                    
filled  to   assist  with  the  permitting   of  mariculture                                                                    
projects.                                                                                                                       
                                                                                                                                
Vice-Chair Ortiz  asked for verification the  positions were                                                                    
transferred in the past year and not filled.                                                                                    
                                                                                                                                
Mr. Painter replied that the  positions had been transferred                                                                    
in  the past  few  months. He  believed  the positions  were                                                                    
currently  out  for  recruitment,  but  he  noted  that  his                                                                    
timeline may be a bit off.                                                                                                      
                                                                                                                                
^DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                                
                                                                                                                                
9:14:34 AM                                                                                                                    
                                                                                                                                
KERRY CROCKER,  STAFF, REPRESENTATIVE GARY KNOPP,  read from                                                                    
a    prepared   budget    narrative   pertaining    to   the                                                                    
subcommittee's budget recommendations  for the Department of                                                                    
Labor and Workforce Development (DLWD) (copy on file):                                                                          
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Labor and Workforce  Development submits                                                                    
     the following  recommended operating budget  for FY2021                                                                    
     to the House Finance Committee:                                                                                            
                                                                                                                                
     Fund Source (Dollars are in thousands):                                                                                    
     Unrestricted General Funds (UGF)   $18,730.4                                                                               
     Designated General Funds (DGF)     $38,143.5                                                                               
     Other Funds                        $17,390.7                                                                               
     Federal Funds                      $76.395.7                                                                               
     Total                              $150,660.3                                                                              
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 633                                                                                                    
     Permanent Part-time 48                                                                                                     
     Temporary 22                                                                                                               
     TOTAL 733                                                                                                                  
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Labor  and Workforce  Development  held                                                                    
     four  meetings   with  the  Department   analyzing  the                                                                    
     Governor's Budget. The Subcommittee  accepted 14 of the                                                                    
     15 Budget Action Items proposed.                                                                                           
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     Accept   the   Department   of  Labor   and   Workforce                                                                    
     Development  budget  proposal,   which  includes  these                                                                    
     highlights:                                                                                                                
                                                                                                                                
      Replace ($1,400.0)  UGF  with   $1,400.0  GF/PR  to                                                                    
        correct Categorization of certified payroll filing                                                                      
        fees                                                                                                                    
      Alaska Vocational Technical Center deletes positions                                                                   
        no longer needed after restructure ($226.7) UGF                                                                         
      Close Kodiak   field  office   and  eliminate   two                                                                    
        positions ($84.3) UGF                                                                                                   
      Alaska Vocational   Technical   Center   additional                                                                    
        authority for contract Training in response to                                                                          
        industry $234.1 DGF                                                                                                     
      Budget action to reduce Labor Standards  and Safety                                                                    
        Wage and Hour Administration (124.4) GF was not                                                                         
        Accepted                                                                                                                
                                                                                                                                
     OTHER SUBCOMMITTEE ACTION:                                                                                                 
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of   Labor   and   Workforce   Development                                                                    
     recommends  that the  committee  include the  following                                                                    
     language:                                                                                                                  
                                                                                                                                
     It  is   the  intent   of  the  Legislature   that  the                                                                    
     Department maintain fiscal year  2019 levels to sustain                                                                    
     or expand  investigative capacity in the  Wage and Hour                                                                    
     Administration Fairbanks Office.                                                                                           
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
                                                                                                                                
     Wordage Report                                                                                                             
     Operating Budget Transaction  Compare between 21Gov and                                                                    
     House Sub                                                                                                                  
     Operating  Budget  Transaction  Compare  between  21Adj                                                                    
     Base and House Sub                                                                                                         
     Multi-year Agency Totals                                                                                                   
                                                                                                                                
9:17:58 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz referenced  the subcommittee's  acceptance                                                                    
of the governor's proposal to  close the Kodiak field office                                                                    
and eliminate two positions. He  asked for verification that                                                                    
the  savings were  only  $84,300. He  wondered  if they  had                                                                    
heard from  the department on  the impact of the  closure of                                                                    
the Kodiak field office.                                                                                                        
                                                                                                                                
Mr.  Crocker  confirmed  that the  number  was  $84,000.  He                                                                    
relayed that  the department had told  the subcommittee that                                                                    
the positions were not filled.  He reported that the general                                                                    
consensus had been  that the reduction would  have little to                                                                    
no impact.                                                                                                                      
                                                                                                                                
Vice-Chair Ortiz asked if a  DLWD staff presence remained at                                                                    
the Kodiak office.                                                                                                              
                                                                                                                                
Mr. Crocker answered  that he did not believe  there was any                                                                    
staff at the location. The office would be closed.                                                                              
                                                                                                                                
Representative Wool referenced  the subcommittee's rejection                                                                    
of a $124,000 decrement proposed  by the governor related to                                                                    
Labor Standards and Safety Wage  and Hour Administration. He                                                                    
highlighted  the  subcommittee's   recommendation  to  adopt                                                                    
intent language to sustain  or expand investigative capacity                                                                    
in  the Wage  and Hour  Administration Fairbanks  Office. He                                                                    
asked if  the governor's proposed reduction  of $124,000 was                                                                    
for a Fairbanks position.                                                                                                       
                                                                                                                                
Mr. Crocker  replied in the  affirmative. It was  the intent                                                                    
of  the  subcommittee to  add  an  investigator position  in                                                                    
Fairbanks.                                                                                                                      
                                                                                                                                
Representative Wool  asked if DLWD  wanted to  eliminate the                                                                    
position.                                                                                                                       
                                                                                                                                
Mr.  Crocker   answered  that   the  department   wanted  to                                                                    
eliminate  an office  assistant  position. The  subcommittee                                                                    
recommended  maintaining  the  current personnel  levels  in                                                                    
Fairbanks.                                                                                                                      
                                                                                                                                
9:20:26 AM                                                                                                                    
                                                                                                                                
Representative   Knopp   requested    to   hear   from   the                                                                    
department's  administrative  services director  related  to                                                                    
the  Kodiak  office.  He confirmed  that  an  administrative                                                                    
position had  been slated for elimination.  He reported that                                                                    
a  subcommittee member  had expressed  concern about  all of                                                                    
the work  going on in  Fairbanks and the need  for oversight                                                                    
in the wage and hour  labor division. The governor's request                                                                    
was   to   eliminate   the  position   for   $124,000.   The                                                                    
subcommittee  had rejected  the  proposal and  had opted  to                                                                    
have  a   position  filled  in  the   Fairbanks  office  for                                                                    
oversight of all of the work  taking place in the region. He                                                                    
referenced  the Kodiak  field office  and recalled  DLWD had                                                                    
reported  there was  no purpose  for the  office; it  had no                                                                    
business.  He  asked  the department  to  elaborate  on  the                                                                    
topic.                                                                                                                          
                                                                                                                                
HANNAH LAGER,  ADMINISTRATIVE SERVICES  DIRECTOR, DEPARTMENT                                                                    
OF  LABOR AND  WORKFORCE DEVELOPMENT,  OFFICE OF  MANAGEMENT                                                                    
AND BUDGET, OFFICE  OF THE GOVERNOR, relayed  there had been                                                                    
two   positions  in   the  Kodiak   office  for   vocational                                                                    
rehabilitation -  one position  had been filled.  The office                                                                    
had been  closed at the end  of December and any  clients in                                                                    
Kodiak  would receive  service remotely  from the  Anchorage                                                                    
office. She noted there was  still a job service presence in                                                                    
Kodiak that employed DLWD staff.                                                                                                
                                                                                                                                
^LEGISLATURE                                                                                                                  
                                                                                                                                
9:22:04 AM                                                                                                                    
                                                                                                                                
RYAN JOHNSTON,  STAFF, REPRESENTATIVE NEAL  FOSTER, reviewed                                                                    
the  subcommittee  recommendations   for  the  legislature's                                                                    
budget. The  subcommittee recommended the acceptance  of the                                                                    
governor's   proposed  budget   with  two   amendments.  The                                                                    
amendments  included the  addition  of $100,000  UGF to  the                                                                    
Legislative  Budget  and  Audit personal  services  line  to                                                                    
assist with  statewide audits and intent  language passed by                                                                    
Legislative  Council   directing  the  legislature   not  to                                                                    
appropriate  funds to  compensate the  Office of  Management                                                                    
and  Budget for  accounting services.  He listed  the totals                                                                    
for the legislature:                                                                                                            
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)  $64,677.4                                                                                
     Designated General Funds (DGF)     $327.7                                                                                  
     Other Funds                        $1,087.6                                                                                
     Federal Funds                      $00.0                                                                                   
     Total                              $66,672.1                                                                               
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY21                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation  is an  increase of  $100.0 thousand  of                                                                    
     Unrestricted General  Funds, which  is 0.02%  above the                                                                    
     FY21 Adjusted Base.                                                                                                        
                                                                                                                                
Representative  Sullivan-Leonard  asked  for detail  on  the                                                                    
intent  language  that  the legislature  would  not  provide                                                                    
funding for the Office of Management and Budget (OMB).                                                                          
                                                                                                                                
Mr.  Johnston   answered  that  recently  OMB   had  started                                                                    
directing  departments to  pay for  the accounting  services                                                                    
provided by OMB and  budget analysis while creating budgets.                                                                    
He explained  that the  procedure was  new, and  he believed                                                                    
Legislative Council had voted  unanimously to not partake in                                                                    
the practice.                                                                                                                   
                                                                                                                                
9:24:32 AM                                                                                                                    
                                                                                                                                
Representative LeBon looked at  the addition of $100,000 UGF                                                                    
for  the  Legislative  Budget and  Audit  personal  services                                                                    
offsetting the vacancy factor. He  asked if the subcommittee                                                                    
lowered the vacancy factor to fund the money.                                                                                   
                                                                                                                                
Mr.  Johnston  deferred  the question  to  the  Division  of                                                                    
Legislative Audit.                                                                                                              
                                                                                                                                
KRIS  CURTIS,   LEGISLATIVE  AUDITOR,  ALASKA   DIVISION  OF                                                                    
LEGISLATIVE AUDIT,  answered that  the $100,000 was  to help                                                                    
reduce  the division's  vacancy  factor.  She detailed  that                                                                    
with the additional funds the  division would have a vacancy                                                                    
factor  of  8.8  percent.  The   funds  would  help  provide                                                                    
additional  resources to  deal with  the workload  and issue                                                                    
opinions  on  a  timely  basis.   She  elaborated  that  the                                                                    
increment had  been included in  the governor's  budget, but                                                                    
it had been  removed by OMB. She explained  that the removal                                                                    
of funding  was similar to  OMB's action taken on  the Court                                                                    
System budget. She found the  action extremely troubling and                                                                    
stated that it could be  considered retaliatory in regard to                                                                    
a  qualified  opinion.  The governor's  office  had  removed                                                                    
$100,000 from its budget.                                                                                                       
                                                                                                                                
Representative  LeBon  referenced  the  phrase  "offset  the                                                                    
vacancy factor." He asked whether  the phrase meant that the                                                                    
proposed vacancy factor was too high or too low.                                                                                
                                                                                                                                
Ms. Curtis replied  that the language should  say reduce the                                                                    
vacancy factor.                                                                                                                 
                                                                                                                                
Representative Wool  asked if the division  under discussion                                                                    
was Ms. Curtis' division.                                                                                                       
                                                                                                                                
Ms. Curtis replied  in the affirmative and  clarified it was                                                                    
the Division of Legislative Audit.                                                                                              
                                                                                                                                
Representative Wool remarked that it  was not to be confused                                                                    
the Legislative Budget and Audit (LB&A) Committee.                                                                              
                                                                                                                                
Ms. Curtis  replied that the  Division of  Legislative Audit                                                                    
reports  to the  LB&A  Committee. She  noted  that the  LB&A                                                                    
Committee  had  its  own separate  budget  to  preserve  its                                                                    
independence.                                                                                                                   
                                                                                                                                
Representative  Wool asked  if the  0.2 percent  increase to                                                                    
the legislature's budget was from the $100,000.                                                                                 
                                                                                                                                
Mr. Johnston answered affirmatively.                                                                                            
                                                                                                                                
^DEPARTMENT OF CORRECTIONS                                                                                                    
                                                                                                                                
9:27:20 AM                                                                                                                    
                                                                                                                                
ASHLEY CARRICK,  STAFF, REPRESENTATIVE ADAM  WOOL, addressed                                                                    
subcommittee   recommendations   for   the   Department   of                                                                    
Corrections (DOC) with a prepared narrative (copy on file):                                                                     
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $327,155.7                                                                              
     Designated General Funds (DGF)     $13,915.7                                                                               
     Other Funds                        $25,944.8                                                                               
     Federal Funds                      $13,244.7                                                                               
     Total                              $380,260.9                                                                              
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY20                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation  is a  reduction of  ($27,446.5) million                                                                    
     of  Unrestricted General  Funds,  which  is 9.2%  below                                                                    
     FY20 Adjusted Base.                                                                                                        
                                                                                                                                
     Permanent Full-time 2,021                                                                                                  
     Permanent Part-time 0                                                                                                      
     Temporary           0                                                                                                      
     Total               2,021                                                                                                  
                                                                                                                                
Ms.  Carrick  reported  that   the  subcommittee  held  five                                                                    
meetings and  considered 36  governor's budget  action items                                                                    
and   6  subcommittee   amendments.   She  reviewed   action                                                                    
highlights:                                                                                                                     
                                                                                                                                
      Restore funding to reopen  the Palmer  Correctional                                                                    
        Center, $16,669.1 UGF                                                                                                   
      Added intent language for the Department to open the                                                                   
      Palmer Correctional Center by January 1, 2021.                                                                            
      Creation and consolidation of  the Recruitment  and                                                                    
        Retention Program and allocation,  adding $163.2 UGF                                                                    
        and three  new positions,  and consolidating  $286.8                                                                    
        UGF from existing allocations.                                                                                          
      Denied request to add  authority for  positions and                                                                    
        copy machines for photocopying incoming inmate mail;                                                                    
        ($415.7 UGF).                                                                                                           
      Added authority for additional  drug dog  to combat                                                                    
        contraband and  federal  Equitable  Sharing  Program                                                                    
        receipt authority, $253.2 UGF; $150.0 Fed.                                                                              
      Denied Governor's proposal  to  send  prisoners  to                                                                    
      private prisons out of state; ($17,800.0 UGF).                                                                            
      Added positions and authority to establish  new re-                                                                    
        entry unit under Health and Rehabilitation Services;                                                                    
        $746.1 UGF and 3 new positions.                                                                                         
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of   Corrections   recommends   that   the                                                                    
     committee take the following actions:                                                                                      
                                                                                                                                
      The subcommittee appropriated funding to reopen the                                                                    
        Palmer Correctional Center with the expectation that                                                                    
        the full  House Finance  committee  will move  these                                                                    
        funds into a  language appropriation to  ensure that                                                                    
        the funds are used  for the specific purpose  of re-                                                                    
        opening the  facility in  FY 21.  If the  full House                                                                    
        Finance Committee  fails  to  move  the funds  to  a                                                                    
        language appropriation,  the  subcommittee  requests                                                                    
        that the  Palmer Correctional  Center allocation  be                                                                    
        moved out of  population management  and established                                                                    
        as its own appropriation to prevent  the transfer of                                                                    
        funds outside of the allocation.                                                                                        
                                                                                                                                
      The subcommittee  denied  second-year  funding  for                                                                    
        House  Bill  49  under  the  Institution  Director's                                                                    
        Office and Physical Health Care with the expectation                                                                    
        that revised costs are forthcoming in the Governor's                                                                    
        amended budget.                                                                                                         
                                                                                                                                
9:30:59 AM                                                                                                                    
                                                                                                                                
Representative Josephson asked how  it was possible with the                                                                    
passage of HB  49 [crime reform legislation  passed in 2019]                                                                    
the budget had been reduced from FY 20.                                                                                         
                                                                                                                                
Ms.  Carrick  answered  that the  numbers  received  by  the                                                                    
governor's office  had been projections from  the passage of                                                                    
HB  49 and  needed to  be updated.  The Legislative  Finance                                                                    
Division had  recommended accepting accurate numbers  in the                                                                    
full  House  Finance  Committee  instead  of  accepting  the                                                                    
projections.                                                                                                                    
                                                                                                                                
Representative  Josephson  looked  at  the  action  item  to                                                                    
restore funding  to reopen  the Palmer  Correctional Center.                                                                    
He asked  if a different  word may work better.  He remarked                                                                    
that he  was not asking  to change the language  but pointed                                                                    
out that it was a continued request to restore funding.                                                                         
                                                                                                                                
Ms. Carrick agreed.                                                                                                             
                                                                                                                                
Co-Chair Johnston  remarked there  were two changes  read by                                                                    
Ms. Carrick where the zeros may have been misplaced.                                                                            
                                                                                                                                
Ms. Carrick agreed.  She reread the first two  items on page                                                                    
2  of  the  narrative.  The   first  was  the  creation  and                                                                    
consolidation  of   a  recruitment  and   retention  program                                                                    
allocation  for $163,200  and three  new  positions and  the                                                                    
consolidation  of $286,800  UGF  from existing  allocations.                                                                    
The second was the denial of  a request to add authority for                                                                    
positions  and  copy  machines  for  incoming  inmate  mail,                                                                    
resulting in a decrement of $415,700 UGF.                                                                                       
                                                                                                                                
Representative  Sullivan-Leonard asked  about Ms.  Carrick's                                                                    
testimony  regarding recalculating  the governor's  proposed                                                                    
budget. She asked  how the subcommittee knew  the budget was                                                                    
incorrect.  She asked  for clarification  on  what had  been                                                                    
changed  or  updated. She  thought  the  statement that  the                                                                    
subcommittee had  revised the  governor's budget  because it                                                                    
was inaccurate was bold.                                                                                                        
                                                                                                                                
9:33:46 AM                                                                                                                    
                                                                                                                                
KELLY  CUNNINGHAM,  ANALYST, LEGISLATIVE  FINANCE  DIVISION,                                                                    
replied  that the  department  had  been communicating  with                                                                    
Representative  Wool's  office  and LFD  because  amendments                                                                    
were coming the  following day. She explained  that it would                                                                    
give  the legislature  a clearer  picture  if the  committee                                                                    
waited for  the amendments. The department  had acknowledged                                                                    
it needed  to modify  the institution director's  office and                                                                    
healthcare numbers  due to  changes from HB  49 and  the new                                                                    
fiscal  year.  She  explained that  the  statement  was  not                                                                    
accusatory. She believed the department  had stated it would                                                                    
be submitting related amendments.                                                                                               
                                                                                                                                
Representative   Sullivan-Leonard  looked   at  $404,739,000                                                                    
proposed by  the governor. She  asked for  verification that                                                                    
the number would be amended by forthcoming amendments.                                                                          
                                                                                                                                
Ms. Cunningham clarified  that she had been  speaking to the                                                                    
$24  million  difference  from the  governor's  budget.  She                                                                    
detailed that the difference was  primarily comprised of the                                                                    
institutional  director's office  item plus  healthcare. She                                                                    
explained that  it was not  really a $24  million reduction,                                                                    
the  number  accounted  for increments  that  had  not  been                                                                    
accepted as  of yet  because the  committee was  waiting for                                                                    
amendments.                                                                                                                     
                                                                                                                                
^DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                   
                                                                                                                                
9:35:34 AM                                                                                                                    
                                                                                                                                
STEPHANIE   ANDREW,   STAFF,   REPRESENTATIVE   ADAM   WOOL,                                                                    
addressed  subcommittee recommendations  for the  Department                                                                    
of  Commerce,  Community  and Economic  Development  (DCCED)                                                                    
with a prepared narrative (copy on file):                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of   Commerce,  Community   and   Economic                                                                    
     Development    submits   the    following   recommended                                                                    
     operating  budget  for  FY2021  to  the  House  Finance                                                                    
     Subcommittee:                                                                                                              
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $8,462.9                                                                                
     Designated General Funds (DGF)     $54,572.1                                                                               
     Other Funds                        $48,476.6                                                                               
     Federal Funds                      $21,023.5                                                                               
     Total                              $132,535.1                                                                              
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY21                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation  is  a  reduction  of  $103.2  thousand,                                                                    
     which is 1.2% below FY21 Adjusted Base.                                                                                    
                                                                                                                                
Ms.  Andrew reported  that  the  use of  UGF  was down  72.5                                                                    
percent since FY  15 management plan. She  detailed that the                                                                    
subcommittee had  adopted 17 of  the 18 budget  action items                                                                    
proposed by  the governor. The  subcommittee had  rejected a                                                                    
decrement  of $546,600  UGF  from  the Economic  Development                                                                    
Division.  The  subcommittee  adopted  two  amendments.  The                                                                    
first  amendment pertained  to intent  language relating  to                                                                    
Alaska Industrial  Development and Export  Authority (AIDEA)                                                                    
and  utilizing   a  competitive  bid  process.   The  second                                                                    
amendment  was  a decrement  of  $110,300  in AIDEA  receipt                                                                    
authority.                                                                                                                      
                                                                                                                                
^DEPARTMENT OF LAW                                                                                                            
                                                                                                                                
9:37:34 AM                                                                                                                    
                                                                                                                                
CATHERINE  REARDON,  STAFF, REPRESENTATIVE  ANDY  JOSEPHSON,                                                                    
addressed  subcommittee recommendations  for the  Department                                                                    
of Law (DOL) with a prepared narrative (copy on file):                                                                          
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Law  submits  the following  recommended                                                                    
     operating  budget   for  FY21  to  the   House  Finance                                                                    
     Committee:                                                                                                                 
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $51,720.6                                                                               
     Designated General Funds (DGF)     $2,691.0                                                                                
     Other Funds                        $32,504.0                                                                               
     Federal Funds                      $2.026.2                                                                                
     Total                              $88,941.8                                                                               
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 528                                                                                                    
     Permanent Part-time 0                                                                                                      
     Temporary           0                                                                                                      
     Total               528                                                                                                    
                                                                                                                                
     The  budget recommended  by  the  Subcommittee is  $755                                                                    
     thousand  lower  in  UGF funding  than  the  Governor's                                                                    
     Requested Budget for  FY21. It is $847.7  higher in UGF                                                                    
     funding  than the  FY21  Adjusted  Base. This  increase                                                                    
     from Adjusted Base is due  to a fund source change from                                                                    
     Power  Costs Equalization  Endowment Funds  to UGF  for                                                                    
     costs  associated  with   anti-crime  legislation  that                                                                    
     passed last session.                                                                                                       
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The House Finance Budget Subcommittee accepted the                                                                         
     Governor's proposed changes to the FY2 l Adjusted Base                                                                     
     which include:                                                                                                             
                                                                                                                                
      $1,602.7 fund source change from PCE Endow (DGF) to                                                                    
        UGF to maintain ongoing Criminal Division activities                                                                    
        related to enactment of House Bill 49.                                                                                  
      $300.0 Statutory Designated Program Receipts (Other)                                                                   
        increment and 2 positions added to utilize funding                                                                      
        from the North Slope Borough to increase staffing in                                                                    
        the Utqiagvik District Attorney's Office                                                                                
      $500.0 Federal Receipts (Fed) increment and 3                                                                          
        positions added to utilize grant money from the U.S.                                                                    
        Department of Justice for staff to focus on felony                                                                      
        crimes in rural Alaska.                                                                                                 
      -$224.8 AOGCC Receipts (DGF) decrement because these                                                                   
        funds are no longer needed.                                                                                             
                                                                                                                                
Ms.  Reardon  reported that  the  subcommittee  had spent  a                                                                    
great  deal of  time focusing  in detail  on two  areas that                                                                    
were subjects  of intent language  in the FY 20  budget. The                                                                    
topics   were   recruitment  and   retention   difficulties,                                                                    
particularly  in  the  Criminal  Division.  Discussion  also                                                                    
included  the  Civil  Division  and  the  issue  of  outside                                                                    
counsel and associated costs.  The recruitment and retention                                                                    
discussion included  reviewing a report from  the department                                                                    
that  had been  submitted in  response to  the FY  20 intent                                                                    
language showing  that high levels  of turnover  and vacancy                                                                    
problems  continued. The  issue was  especially critical  in                                                                    
the  Criminal Division  and rural  areas of  the state.  The                                                                    
problem   related   to   paralegals,  support   staff,   and                                                                    
attorneys. She noted  the department had been  clear that no                                                                    
action by  the legislature  through the budget  was required                                                                    
or desired  at present.  She elaborated  that it  had raised                                                                    
the  issue of  whether  there was  excess personal  services                                                                    
funding in the  department, which was a  concern because the                                                                    
funding could be spent elsewhere  as personal services could                                                                    
be moved to other line items.                                                                                                   
                                                                                                                                
Ms.  Reardon expounded  that  the  subcommittee had  adopted                                                                    
intent language  for FY 21 directing  that personal services                                                                    
funding should be  spent on personal services and  if it was                                                                    
not needed, the funding should  lapse rather than be used in                                                                    
other areas.                                                                                                                    
                                                                                                                                
     The Subcommittee also made the following reductions to                                                                     
     the Civil Division:                                                                                                        
                                                                                                                                
      $400.0 (UGF) decrement from the Labor and State                                                                        
        Affairs allocation for reduced expenses for outside                                                                     
        counsel.                                                                                                                
      $375.0 (UGF) decrement and deletion of three                                                                           
        positions from the Special Litigation allocation                                                                        
        reflecting high vacancy in the Civil Division and                                                                       
        the need to reduce state spending.                                                                                      
                                                                                                                                
Ms.  Reardon highlighted  outside counsel  as another  major                                                                    
issue of  focus. The FY  20 budget included  intent language                                                                    
directing  the department  to minimize  the  use of  outside                                                                    
counsel. The  subcommittee had  looked closely  at contracts                                                                    
that  had  been entered  into  for  outside counsel  in  the                                                                    
current  fiscal   year  -  specifically  11   contracts  and                                                                    
$300,000 spent by the labor  and state affairs allocation in                                                                    
the past six months and  a new contract for $600,000 entered                                                                    
into  by the  same division.  The subcommittee  had reviewed                                                                    
the   terms   of  the   contracts   and   had  asked   about                                                                    
prioritization and  negotiation of rates and  had decided to                                                                    
reduce the  labor and  state affairs  allocation by  $400 in                                                                    
the services line.                                                                                                              
                                                                                                                                
Ms. Reardon  shared that testimony  from DOL  indicated that                                                                    
despite a reduction in funding  it was likely funds would be                                                                    
transferred  to continue  to fund  some of  the high  dollar                                                                    
contracts. As  a result, the subcommittee  decided to create                                                                    
a separate appropriation to segregate  money available to be                                                                    
used for contracts for outside  counsel related to the Janus                                                                    
[v  AFSCME U.S.  Supreme Court]  decision. The  subcommittee                                                                    
funded the  new appropriation  with $20,000 and  renamed the                                                                    
existing Civil Division appropriation  to make it clear that                                                                    
funding was not  to be used from that  appropriation for the                                                                    
$600,000 contract.                                                                                                              
                                                                                                                                
9:44:29 AM                                                                                                                    
                                                                                                                                
Representative   Wool   considered  the   outside   contract                                                                    
funding. He  remarked that  the subcommittee  suggested that                                                                    
the  monies were  separated and  isolated and  could not  be                                                                    
used for  the Janus  decision. He  surmised that  the action                                                                    
limited  the  department's  outside  contracting  money.  He                                                                    
asked if  the action  pertained to  the one  particular case                                                                    
only.                                                                                                                           
                                                                                                                                
Ms.  Reardon replied  that  the  separate appropriation  was                                                                    
only for  the specific  Janus case.  She clarified  that the                                                                    
limit  was  on  the  expenditure for  outside  counsel.  The                                                                    
department retained its ability to  use its own attorneys to                                                                    
pursue whatever cases it wanted.                                                                                                
                                                                                                                                
Representative Wool  asked if the department  was limited to                                                                    
the  same pool  of money  if  another case  arose where  the                                                                    
department   needed  outside   counsel.  Alternatively,   he                                                                    
wondered if DOL could find  money elsewhere for another high                                                                    
profile case such as Citizens United.                                                                                           
                                                                                                                                
Ms. Reardon  answered that  the separate  appropriation only                                                                    
related to  a limitation  on contracting  for interpretation                                                                    
of  the  Janus  [U.S.]  Supreme Court  decision.  Any  other                                                                    
outside counsel  could continue to  be contracted  and spent                                                                    
from the Civil Division appropriation.                                                                                          
                                                                                                                                
Representative  Sullivan-Leonard  stated  her  understanding                                                                    
that the subcommittee action reduced  staff within the Civil                                                                    
Division  and   reduced  the  division's  ability   to  seek                                                                    
assistance  from outside  counsel as  needed. She  asked how                                                                    
that  would work.  She  did  not believe  it  made sense  to                                                                    
reduce  staff  if  the  department could  not  seek  to  use                                                                    
outside  counsel  to  assist  on  particular  issues  coming                                                                    
before the state. She asked for the rationale.                                                                                  
                                                                                                                                
Ms. Reardon answered that the  Civil Division underspent its                                                                    
personal services  budget by over  $3 million in FY  19. She                                                                    
noted that the money had not  all been UGF. The reduction to                                                                    
the  special  litigation  allocation and  the  reduction  of                                                                    
positions  related to  the  impression  that possibly  there                                                                    
were more funds  for other uses in the  department than were                                                                    
necessary,  not as  an attempt  to  reduce the  department's                                                                    
ability to  engage in civil  activities or  trigger layoffs.                                                                    
The  decision to  limit the  contract  expenditure on  Janus                                                                    
followed  the $100,000  expenditure  for  work that  already                                                                    
occurred the past fall. She  expounded that the subcommittee                                                                    
had  determined  that  in   tight  economic  times,  another                                                                    
$20,000 was sufficient.                                                                                                         
                                                                                                                                
9:48:45 AM                                                                                                                    
                                                                                                                                
Representative  Josephson emphasized  that the  subcommittee                                                                    
had found that  a typical prudent vacancy rate was  in the 4                                                                    
percent range.  He highlighted that  DOL's vacancy  rate was                                                                    
12 percent.  The subcommittee had  asked the chief  of staff                                                                    
in two separate hearings  whether the number seemed accurate                                                                    
and the individual  did not suggest that  it was inaccurate.                                                                    
The  department had  the revenue  and  the subcommittee  had                                                                    
tracked the  spending carefully in  two sections.  Funds had                                                                    
been  used in  part to  fund a  very expensive  contract. He                                                                    
detailed that DOL had obtained  a reduced rate from $950 per                                                                    
hour to $600 per hour from  a Washington law firm. Given the                                                                    
continuing  large vacancy  rate,  the  subcommittee did  not                                                                    
believe there  would be any termination  of attorneys within                                                                    
DOL. As an attorney, he  was predisposed to appreciate their                                                                    
work and  he clarified that he  was not trying to  pink slip                                                                    
anyone.                                                                                                                         
                                                                                                                                
Representative LeBon  asked if the committee  was going down                                                                    
a  slippery  slope  by managing  the  department's  decision                                                                    
making  process  by  choking  off funding  for  an  issue  -                                                                    
through appropriation - that the  subcommittee may not agree                                                                    
with. He  wondered if the  opposite was a  possibility where                                                                    
the subcommittee  may encourage funding for  outside counsel                                                                    
on  an issue  it agreed  with and  expect the  department to                                                                    
take that  type of  action. He highlighted  the issue  was a                                                                    
two-way street  and wondered whether  the issue had  come up                                                                    
in discussion at the subcommittee level.                                                                                        
                                                                                                                                
Ms. Reardon  responded that  the subcommittee  had discussed                                                                    
the issues in detail and with some complexity.                                                                                  
                                                                                                                                
Representative Josephson believed  Representative LeBon made                                                                    
a  good  point that  the  legislature  was not  supposed  to                                                                    
micromanage the administration's ability  to do largely what                                                                    
it   wished  to   do,  albeit,   the  legislature   was  the                                                                    
appropriating body.  The subcommittee had concluded  that in                                                                    
tight  fiscal  times,  "this  sort   of  contract"  was  not                                                                    
fiscally responsible,  especially given that no  other state                                                                    
in  the union  had made  the legal  arguments being  made in                                                                    
Alaska. He  noted that  the administration  was free  to use                                                                    
its own  assistant attorneys general  to litigate  the issue                                                                    
to whatever extent desired.                                                                                                     
                                                                                                                                
9:52:09 AM                                                                                                                    
                                                                                                                                
Representative Merrick  referenced the reduced rate  of $600                                                                    
per  hour. She  asked how  the rate  compared to  the hourly                                                                    
cost of in-house counsel.                                                                                                       
                                                                                                                                
Ms.  Reardon   believed  DOL  charged   $169  per   hour  to                                                                    
departments for services.                                                                                                       
                                                                                                                                
Representative Carpenter  believed he  had just  heard there                                                                    
was   a  conflict   of  opinion   between  members   of  the                                                                    
legislature  and the  executive on  how to  apply the  Janus                                                                    
decision  and  the  legislature was  decrementing  funds  to                                                                    
further  its  opinion. He  stated  that  if the  legislature                                                                    
disagreed  with  how  the executive  was  dealing  with  the                                                                    
situation, there were other means  to deal with the issue in                                                                    
the legal arena. He opined  that reducing funding to make it                                                                    
more  difficult for  the department  to do  its job  was not                                                                    
appropriate.  He highlighted  that  the  committee had  just                                                                    
heard from  another department  where the  governor's office                                                                    
was supposedly doing  the same thing to  the legislature and                                                                    
"we got indignant about it." He saw it as hypocrisy.                                                                            
                                                                                                                                
Vice-Chair  Ortiz  surmised  that  in  the  name  of  fiscal                                                                    
responsibility,  it seemed  reasonable for  the subcommittee                                                                    
to act to restrain spending  on contracting out for $900 per                                                                    
hour. He  believed committee members  were all  onboard with                                                                    
being fiscally responsible.                                                                                                     
                                                                                                                                
Co-Chair Foster  noted it was not  the end of the  issue and                                                                    
there may be  some amendments. He expected  the committee to                                                                    
take up amendments the following week.                                                                                          
                                                                                                                                
^JUDICIARY                                                                                                                    
                                                                                                                                
9:54:57 AM                                                                                                                    
                                                                                                                                
CATHERINE   REARDON,   STAFF,  REPRESENTATIVE   ADAM   WOOL,                                                                    
addressed subcommittee recommendations  for Judiciary with a                                                                    
prepared narrative (copy on file):                                                                                              
                                                                                                                                
     The House Finance Budget Subcommittee recommends that                                                                      
     the budget requested by the Alaska Court System FY21                                                                       
     be approved in full:                                                                                                       
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)  $110,706.5                                                                               
     Designated General Funds (DGF)     $518.0                                                                                  
     Other Funds                        $2,206.1                                                                                
     Federal Funds                      $975.6                                                                                  
     Total                              $114,406.2                                                                              
                                                                                                                                
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 733                                                                                                    
     Permanent Part-time 37                                                                                                     
     Temporary           5                                                                                                      
     Total               775                                                                                                    
                                                                                                                                
     The Subcommittee  recommends that the  budget requested                                                                    
     by  the  Alaska  Court  System  be  approved  by  House                                                                    
     Finance   Committee.  The   Court  System   request  is                                                                    
     $2,902.1 thousand  above the FY21 Adjusted  Base in UGF                                                                    
     funding  and  $334.7  thousand  UGF  above  the  budget                                                                    
     submitted by the Governor.                                                                                                 
                                                                                                                                
Ms.  Reardon highlighted  that over  $1 million  of the  UGF                                                                    
increase was  due to  a fund source  change from  Power Cost                                                                    
Equalization  Endowment funds  to UGF  for costs  associated                                                                    
with  anti-crime   legislation  that  passed   the  previous                                                                    
session.                                                                                                                        
                                                                                                                                
Ms.  Reardon detailed  that the  Judicial  Branch had  three                                                                    
separate appropriations.  The primary appropriation  was the                                                                    
Court  System. Appropriations  for  therapeutic courts,  the                                                                    
Commission  on Judicial  Conduct, and  the Judicial  Council                                                                    
were much smaller.                                                                                                              
                                                                                                                                
Ms.  Reardon reported  that the  Court System  had requested                                                                    
nine changes from  its adjusted base budget,  which could be                                                                    
grouped into  increments to address the  backlog in criminal                                                                    
appeals,   increments  to   maintain   and  strengthen   the                                                                    
therapeutic court  system, and  increments for  overhead and                                                                    
operational costs  such as facility maintenance  and leases,                                                                    
payments  to the  executive branch  for risk  management and                                                                    
archiving,  and  the  services provided  by  the  Office  of                                                                    
Management and Budget.  She noted the last  item was similar                                                                    
to   the  topic   discussed   in   the  Legislative   Branch                                                                    
discussion.                                                                                                                     
                                                                                                                                
Ms.  Reardon relayed  that the  subcommittee  had found  the                                                                    
Judicial Branch's  request to be reasonable  and recommended                                                                    
its adoption.                                                                                                                   
                                                                                                                                
Representative Knopp asked for the amendment deadline.                                                                          
                                                                                                                                
Co-Chair Foster replied  it would most likely  be the coming                                                                    
Saturday. He would follow up with a set deadline.                                                                               
                                                                                                                                
Representative Wool asked when  the committee would hear the                                                                    
subcommittee report for the University budget.                                                                                  
                                                                                                                                
Co-Chair  Foster relayed  that  the University  subcommittee                                                                    
had  its closeout  scheduled for  5:00 p.m.  that afternoon.                                                                    
The  committee  would  hear the  subcommittee  report  at  a                                                                    
meeting the following morning.                                                                                                  
                                                                                                                                
HB  205  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  206  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Foster reviewed  the  schedule  for the  afternoon                                                                    
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:59:15 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:59 a.m.                                                                                          

Document Name Date/Time Subjects
HB 205 SubC Reports DNR 021720.pdf HFIN 2/18/2020 9:00:00 AM
HB 205
HB 205 SubC Reports DOC 021720.pdf HFIN 2/18/2020 9:00:00 AM
HB 205 SubC Reports DCCED 021720.pdf HFIN 2/18/2020 9:00:00 AM
HB 205 SubC Reports LEG 021820.pdf HFIN 2/18/2020 9:00:00 AM
HB 205
HB 205 SubC Reports DLWD 021820.pdf HFIN 2/18/2020 9:00:00 AM
HB 205
HB 205 SubC Reports JUD 021820.pdf HFIN 2/18/2020 9:00:00 AM
HB 205
HB 205 SubC Reports LAW 021820.pdf HFIN 2/18/2020 9:00:00 AM
HB 205