Legislature(2019 - 2020)ADAMS ROOM 519

02/19/2020 10:00 AM FINANCE

Note: the audio and video recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.

Download Mp3. <- Right click and save file as
Download Video part 1. <- Right click and save file as

Audio Topic
10:03:45 AM Start
10:04:15 AM HB205 || HB206
10:04:21 AM Fy 21 Budget Closeouts: University of Alaska
10:14:01 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued from 2/18/20 --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 205 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 206 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Closeouts: TELECONFERENCED
University of Alaska
                  HOUSE FINANCE COMMITTEE                                                                                       
                     February 19, 2020                                                                                          
                        10:03 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
10:03:45 AM                                                                                                                   
                                                                                                                                
[Note: Meeting continued from February 18, 2020, 1:30 p.m.                                                                    
See separate minutes dated 2/18/20 1:30 p.m. for detail.]                                                                     
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster called the House Finance Committee meeting                                                                      
to order at 10:03 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                                                                                                                  
                                                                                                                                
Nathaniel Grabman, Staff, Representative Andy Josephson;                                                                        
Michael Partlow, Fiscal Analyst, Legislative Finance                                                                            
Division.                                                                                                                       
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
                                                                                                                                
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 BUDGET CLOSEOUTS: UNIVERSITY OF ALASKA                                                                                    
                                                                                                                                
Co-Chair Foster reviewed the agenda for the meeting. The                                                                        
committee would be hearing the subcommittee report for the                                                                      
University of Alaska (UA).                                                                                                      
                                                                                                                                
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."                                                                                                        
                                                                                                                                
10:04:15 AM                                                                                                                   
                                                                                                                                
^FY 21 BUDGET CLOSEOUTS: UNIVERSITY OF ALASKA                                                                                 
                                                                                                                                
10:04:21 AM                                                                                                                   
                                                                                                                                
Co-Chair Foster invited the testifiers to the table.                                                                            
                                                                                                                                
NATHANIEL GRABMAN, STAFF, REPRESENTATIVE ANDY JOSEPHSON,                                                                        
introduced himself and read the subcommittee report:                                                                            
                                                                                                                                
     Recommendations:                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     University of Alaska  submits the following recommended                                                                    
     operating  budget  for  FY2021  to  the  House  Finance                                                                    
     Committee:                                                                                                                 
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $287,533.5                                                                                
     Designated General Funds (DGF) $331,824.1                                                                                  
     Other Funds $82,584.5                                                                                                      
     Federal Funds $140,225.9                                                                                                   
     Total $842,168.0                                                                                                           
                                                                                                                                
     The  Unrestricted General  Fund difference  from FY  21                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation   is  a   reduction   of  $14,500.0   of                                                                    
     Unrestricted General  Funds, which is 4.8%  below FY 21                                                                    
     Adjusted Base.                                                                                                             
                                                                                                                                
     Positions:                                                                                                                 
                                                                                                                                
     Permanent Full-time 3,994                                                                                                  
     Permanent Part-time 189                                                                                                    
     Temporary 0                                                                                                                
     Total 4,183                                                                                                                
                                                                                                                                
     Budget:                                                                                                                    
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     University  of   Alaska  reviewed  the  FY   21  budget                                                                    
     request,  including  amendments,   and  recommends  the                                                                    
     following actions:                                                                                                         
      Reject proposed UGF reduction, -$25,000.0 UGF;                                                                         
      Consolidate  the   Fairbanks   Organized   Research                                                                    
        allocation into the Fairbanks Campus allocation;                                                                        
      Reduce University  funding,  -$14,500.0  UGF.  This                                                                    
        amendment incorporates a decrement of -$25,000.0 UGF                                                                    
        and  an   increment   of   $10,500.0  for   employee                                                                    
        compensation increases  approved  by  the  Board  of                                                                    
        Regents in FY 20 and FY 21.                                                                                             
                                                                                                                                
     OTHER COMMITTEE ACTION:                                                                                                    
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     University of Alaska recommends  that the House Finance                                                                    
     Committee take the following action:                                                                                       
         Restore reference to the Fairbanks Firefighters                                                                     
          Union, IAFF Local 1324, to Sec 24. Salary and                                                                         
          Benefit Adjustments of HB 205, pending expected                                                                       
          action February 20-21, 2020 at the University of                                                                      
          Alaska Board of Regents meeting.                                                                                      
                                                                                                                                
Co-Chair  Foster indicated  Representative Knopp  had joined                                                                    
the meeting.                                                                                                                    
                                                                                                                                
10:06:50 AM                                                                                                                   
                                                                                                                                
Representative Merrick asked if  there was an agreement with                                                                    
the  University  of Alaska  and  the  administration on  the                                                                    
proposed budget.                                                                                                                
                                                                                                                                
Mr.  Grabman  answered  affirmatively. He  relayed  that  in                                                                    
August  of the  prior year  a compact  agreement was  signed                                                                    
between the University  of Alaska (UA) Board  of Regents and                                                                    
the  governor.  The  detail  of the  compact  was  that  the                                                                    
University's budget would  be reduced by $25  million in the                                                                    
current year and,  the University would have  the ability to                                                                    
decide where the cuts would be allocated.                                                                                       
                                                                                                                                
Representative Wool referred  to the pay increase  for FY 20                                                                    
and FY 21. He wondered how  the increases would be paid. Mr.                                                                    
Grabman responded that  the money would be taken  out of the                                                                    
total appropriation the University would receive.                                                                               
                                                                                                                                
Co-Chair Johnston asked for further  detail of the Fairbanks                                                                    
Firefighters Union.  Mr. Grabman  responded that  there were                                                                    
currently three  bargaining units  referenced in  Section 24                                                                    
of HB 205 which had  existing contracts with the University.                                                                    
At  the time  HB 205  was introduced  negotiations with  the                                                                    
Fairbanks Firefighters Union were  ongoing. The contract was                                                                    
expected  to be  ratified in  the following  two days.  As a                                                                    
result, the  Board of  Regents agreed to  include it  in the                                                                    
budget.                                                                                                                         
                                                                                                                                
Co-Chair  Johnston asked  if one  distribution would  occur.                                                                    
She was confused with the  allocation of funds. She asked if                                                                    
one appropriation  would be provided to  the University. Mr.                                                                    
Grabman  responded  that  there   would  only  be  a  single                                                                    
appropriation.                                                                                                                  
                                                                                                                                
10:10:20 AM                                                                                                                   
                                                                                                                                
Representative Wool asked  about payroll increases. Normally                                                                    
the  legislature  did  not  single  them  out.  Mr.  Grabman                                                                    
replied that  other agencies received pay  increases as part                                                                    
of  contractual  obligations.  The University  was  slightly                                                                    
different in  that increases  were not  necessarily included                                                                    
as  an   adjusted  base.  There   had  been   discussion  in                                                                    
subcommittee to include the amount  in order to do something                                                                    
similar with the University.                                                                                                    
                                                                                                                                
Representative  LeBon  asked  if  the UA  Board  of  Regents                                                                    
initiated  the  reference   to  the  Fairbanks  Firefighters                                                                    
Union. He  wondered what would  happen if the  Board decided                                                                    
not to take  action in the next couple of  days. Mr. Grabman                                                                    
responded that  the inclusion of the  language was requested                                                                    
by  the University  in a  memo  addressed to  the Office  of                                                                    
Management and Budget (OMB) dated  January 3, 2020. He could                                                                    
not speak directly  to what the effect of  not including the                                                                    
language might be.                                                                                                              
                                                                                                                                
Representative  LeBon was  concerned  that the  UA Board  of                                                                    
Regents approved the language. He  wondered if OMB had asked                                                                    
that the language be included in the bill.                                                                                      
                                                                                                                                
10:12:46 AM                                                                                                                   
                                                                                                                                
MICHAEL   PARTLOW,  FISCAL   ANALYST,  LEGISLATIVE   FINANCE                                                                    
DIVISION,  explained that  the University  made the  request                                                                    
based on its timing of  the initial union contracts included                                                                    
in the  governor's budget. The  University was only  able to                                                                    
include union contracts that had  already been ratified. The                                                                    
contract with  the Fairbanks  Firefighters Union  was agreed                                                                    
upon after the  fact. They made a request to  OMB that it be                                                                    
included in  the language section of  the governor's amended                                                                    
budget.  The  University  made   the  same  request  to  the                                                                    
legislature.                                                                                                                    
                                                                                                                                
Co-Chair  Foster  relayed  that  agenda  for  the  following                                                                    
meeting.                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
10:14:01 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:14 a.m.                                                                                         

Document Name Date/Time Subjects
HB 205 SubC Reports UA 021920.pdf HFIN 2/19/2020 10:00:00 AM
HB 205