Legislature(2015 - 2016)SENATE FINANCE 532

04/22/2016 09:00 AM CONFERENCE COMMITTEE ON HB256 AND HB257


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09:07:34 AM Start
09:36:27 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
= HB 256 APPROP: OPERATING BUDGET/LOANS/FUNDS
Heard & Held
= HB 257 APPROP: MENTAL HEALTH BUDGET
Heard & Held
               29TH ALASKA STATE LEGISLATURE                                                                                    
                      SECOND SESSION                                                                                            
         CONFERENCE COMMITTEE ON HB 256 and HB 257                                                                              
                      April 22, 2016                                                                                            
                         9:07 a.m.                                                                                              
                                                                                                                                
9:07:34 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Kelly called the Conference Committee meeting on HB
256 and HB 257 to order at 9:07 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
Senate:                                                                                                                         
Senator Pete Kelly, Chair                                                                                                       
Senator Anna MacKinnon                                                                                                          
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
House:                                                                                                                          
Representative Mark Neuman, Vice-Chair                                                                                          
Representative Steve Thompson                                                                                                   
Representative Les Gara                                                                                                         
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT:                                                                                                                 
                                                                                                                                
David Teal,  Director, Legislative Finance  Division; fiscal                                                                    
analysts  with  the  Office of  Management  and  Budget  and                                                                    
Legislative  Finance   Division;  and  aides   to  committee                                                                    
members and other members of the Legislature.                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 256    APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          HB 256 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
HB 257    APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          HB 257 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
DEPARTMENTS:                                                                                                                    
                                                                                                                                
     DEPARTMENT   OF   COMMERCE,  COMMUNITY   AND   ECONOMIC                                                                    
     DEVELOPMENT EDUCATION AND EARLY DEVELOPMENT                                                                                
     DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                              
     DEPARTMENT OF LAW                                                                                                          
     DEPARTMENT OF NATURAL RESOURCES                                                                                            
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
     DEPARTMENT OF REVENUE                                                                                                      
    DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                          
     UNIVERSITY OF ALASKA                                                                                                       
     FUND CAPITALIZATION                                                                                                        
     FUND TRANSFERS                                                                                                             
     LANGUAGE                                                                                                                   
     MENTAL HEALTH CAPITAL PROJECTS                                                                                             
     STATEWIDE SALARY ADJUSTMENTS                                                                                               
                                                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 256(FIN)                                                                                                
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                              
SENATE CS FOR CS FOR HOUSE BILL NO. 256(FIN)                                                                                  
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
and                                                                                                                             
                                                                                                                                
CS FOR HOUSE BILL NO. 257(FIN)                                                                                                
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive    mental    health    program;    making                                                                    
     supplemental appropriations; and providing for an                                                                          
     effective date."                                                                                                           
                                                                                                                                
SENATE CS FOR CS FOR HOUSE BILL NO. 257(FIN)                                                                                  
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:08:51 AM                                                                                                                    
                                                                                                                                
Chair  Kelly  communicated  that  the  conference  committee                                                                    
would be meeting  on HB 256 and HB 257  open items. He noted                                                                    
that Limited Powers  of Free Conference had  been granted by                                                                    
both the Senate  and the House. Departments  with open items                                                                    
would be taken up based  on the motion sheets distributed to                                                                    
members earlier in the day and dated April 22, 2016.                                                                            
                                                                                                                                
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                    
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on  the  following items  for  the  Department of  Commerce,                                                                    
Community and Economic Development budget:                                                                                      
                                                                                                                                
     Item 2    Hold                                                                                                             
     Item 3    Hold                                                                                                             
     Item 6    House                                                                                                            
     Item 7    Hold                                                                                                             
     Item 8    Hold                                                                                                             
     Item 9    Hold                                                                                                             
                                                                                                                                
There being NO OBJECTION, it was  so ordered. Items 2, 3, 7,                                                                    
8  and  9 remained  open  for  the Department  of  Commerce,                                                                    
Community and Economic Development's budget.                                                                                    
                                                                                                                                
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                                 
                                                                                                                                
Vice-Chair Neuman  MOVED to rescind  the previous  motion in                                                                    
adopting Item 7.                                                                                                                
                                                                                                                                
Representative  Gara OBJECTED  for  DISCUSSION. He  remarked                                                                    
that the  budgeting process involved examining  the previous                                                                    
year's UGF  compared to  the current  year's UGF.  He stated                                                                    
that  many  of the  current  items  accessed DGF,  therefore                                                                    
there  needed to  be cuts  to  match the  previous year.  He                                                                    
explained that it was better to  maintain the use of UGF, in                                                                    
order to adequately compare year to year.                                                                                       
                                                                                                                                
Representative Gara WITHDREW the OBJECTION.                                                                                     
                                                                                                                                
Chair Kelly remarked that most of the budget used UGF.                                                                          
                                                                                                                                
Representative  Gara clarified  that  he did  not intend  to                                                                    
call for a vote on the motion.                                                                                                  
                                                                                                                                
There  being NO  further OBJECTION,  Item 7  was before  the                                                                    
committee.                                                                                                                      
                                                                                                                                
9:11:47 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:12:15 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:12:28 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:13:35 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:13:40 AM                                                                                                                    
                                                                                                                                
Vice-Chair Neuman  MOVED to replace  the $917.3  thousand of                                                                    
UGF with  $917.3 of  higher education  funds and  accept the                                                                    
Senate  for Item  7. There  being  NO OBJECTION,  it was  so                                                                    
ordered.                                                                                                                        
                                                                                                                                
The action closed all conferencable  items in the budget for                                                                    
the Department of Education and Early Development.                                                                              
                                                                                                                                
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                                 
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on  the following  items  for the  Department  of Labor  and                                                                    
Workforce Development budget:                                                                                                   
                                                                                                                                
     Item 1    House for both motions                                                                                           
     Item 3    House                                                                                                            
                                                                                                                                
Representative Gara  OBJECTED for DISCUSSION. He  was not in                                                                    
favor of deleting the deputy  commissioner position. He also                                                                    
disagreed with the use of Construction Academy Funds.                                                                           
                                                                                                                                
Representative Gara WITHDREW the OBJECTION.                                                                                     
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action closed all conferencable items  in the budget for the                                                                    
Department of Labor and Workforce Development.                                                                                  
                                                                                                                                
DEPARTMENT OF LAW                                                                                                             
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the following items for the Department of Law budget:                                                                        
                                                                                                                                
     Item 1    Hold                                                                                                             
                                                                                                                                
There  being  NO  OBJECTION,  it  was  so  ordered.  Item  1                                                                    
remained open for the Department of Law's budget.                                                                               
                                                                                                                                
DEPARTMENT OF NATURAL RESOURCES                                                                                               
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on  the  following  items  for  the  Department  of  Natural                                                                    
Resources budget:                                                                                                               
                                                                                                                                
     Item 5    Senate minus $78.5 thousand and one PCN                                                                          
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed  all  conferencable  items  in  the  budget  for  the                                                                    
Department of Natural Resources.                                                                                                
DEPARTMENT OF PUBLIC SAFETY                                                                                                   
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the following  items for the Department  of Public Safety                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 1    House                                                                                                            
     Item 2    House                                                                                                            
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed  all  conferencable  items  in  the  budget  for  the                                                                    
Department of Public Safety.                                                                                                    
                                                                                                                                
DEPARTMENT OF REVENUE                                                                                                         
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on  the  following  items  for  the  Department  of  Revenue                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 2    Senate for all three motions                                                                                     
     Item 3    Senate for all five motions                                                                                      
     Item 4    Hold                                                                                                             
     Item 5    Hold                                                                                                             
                                                                                                                                
There being NO  OBJECTION, it was so ordered. Items  4 and 5                                                                    
remain open for the Department of Revenue's budget.                                                                             
                                                                                                                                
9:17:14 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES                                                                            
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the following items for  the Department of Transportation                                                                    
and Public Facilities budget:                                                                                                   
                                                                                                                                
     Item 14   House for the both motions minus $1.414                                                                          
     million in Vehicle Rental Tax                                                                                              
     Item 15   Senate                                                                                                           
     Item 16   Senate                                                                                                           
     Item 18   Senate                                                                                                           
                                                                                                                                
Representative  Gara announced  that he  did not  understand                                                                    
the intent language  for Item 18. He felt  that the language                                                                    
did not encourage hiring Alaskan workers.                                                                                       
                                                                                                                                
Representative Gara WITHDREW the OBJECTION.                                                                                     
                                                                                                                                
Chair Kelly  announced that he would  examine that language,                                                                    
and shared that  he would address Item 18 should  there be a                                                                    
disagreement.                                                                                                                   
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
action closed all conferencable items  in the budget for the                                                                    
Department of Transportation and Public Facilities.                                                                             
                                                                                                                                
UNIVERSITY OF ALASKA                                                                                                          
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the following items for the University of Alaska budget:                                                                     
                                                                                                                                
     Items 1 through 9   House                                                                                                  
     Item 11             Hold                                                                                                   
     Item 12             Senate                                                                                                 
                                                                                                                                
There  being  NO  OBJECTION,  it was  so  ordered.  Item  11                                                                    
remained open for the University of Alaska's budget.                                                                            
                                                                                                                                
9:19:23 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:25:58 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:26:02 AM                                                                                                                    
                                                                                                                                
Chair Kelly asked  for a restatement of the  motions for the                                                                    
University of Alaska.                                                                                                           
                                                                                                                                
Vice-Chair Neuman  restated the  motions for  the University                                                                    
of Alaska budget.                                                                                                               
                                                                                                                                
FUND CAPITALIZATION                                                                                                           
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the  following items for  the Fund  Capitalization motion                                                                    
sheet:                                                                                                                          
                                                                                                                                
     Item 1    Hold                                                                                                             
     Item 2    House                                                                                                            
     Item 3    House                                                                                                            
                                                                                                                                
Representative  Gara OBJECTED  for  DISCUSSION. He  surmised                                                                    
that Item 2 was a typo edit.                                                                                                    
                                                                                                                                
JAMES ARMSTRONG,  STAFF, SENATOR  PETE KELLY  explained that                                                                    
the Senate version  of Item 1 transposed one  number, so the                                                                    
House version was the correct version.                                                                                          
                                                                                                                                
Representative Gara WITHDREW the OBJECTION.                                                                                     
                                                                                                                                
There being NO further OBJECTION,  it was so ordered. Item 1                                                                    
remained open in the Fund Capitalization motion sheet.                                                                          
                                                                                                                                
FUND TRANSFERS                                                                                                                
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on  the  following  items for  the  Fund  Transfers'  motion                                                                    
sheet:                                                                                                                          
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed all  conferencable items in  the budget for  the Fund                                                                    
Transfers' motion sheet.                                                                                                        
                                                                                                                                
LANGUAGE                                                                                                                      
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on the following items for the Language motion sheet:                                                                           
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Senate                                                                                                           
     Item 3    Senate                                                                                                           
     Item 4    Hold                                                                                                             
                                                                                                                                
Representative Gara looked at Item  4, and wondered if there                                                                    
was a recent change to keep  it held. Chair Kelly replied in                                                                    
the affirmative.                                                                                                                
                                                                                                                                
There  being  NO  OBJECTION,  it  was  so  ordered.  Item  4                                                                    
remained open in the Language motion sheet.                                                                                     
                                                                                                                                
MENTAL HEALTH CAPITAL PROJECTS                                                                                                
                                                                                                                                
Vice-Chair Neuman MOVED to  ADOPT the Chair's recommendation                                                                    
on  the  following  items  for  the  Mental  Health  Capital                                                                    
Projects' motion sheet:                                                                                                         
                                                                                                                                
     Item 1    House                                                                                                            
     Item 2    House                                                                                                            
     Item 3    House                                                                                                            
     Item 4    House                                                                                                            
     Item 5    Senate                                                                                                           
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. The  action                                                                    
closed all conferencable items in  the budget for the Mental                                                                    
Health Capital Projects' motion sheet.                                                                                          
                                                                                                                                
9:29:20 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:30:18 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:30:23 AM                                                                                                                    
                                                                                                                                
STATEWIDE SALARY ADJUSTMENTS                                                                                                  
                                                                                                                                
Vice-Chair  Neuman MOVED  to ADOPT  new Item  1 for  the new                                                                    
contractual  agreements,  to  incorporate  statewide  salary                                                                    
adjustments. He stated  that the fund sources  on the motion                                                                    
sheets were  incorrect, and  announced that  the Legislative                                                                    
Finance  Division (LFD)  would  correct the  mistake in  the                                                                    
conference committee action items on their website.                                                                             
                                                                                                                                
Chair Kelly queried the impact of adopting the contracts.                                                                       
                                                                                                                                
Mr. Teal  explained that  adopting the  new contracts  had a                                                                    
negative $6.1  million reduction. He stated  that there were                                                                    
four  contracts: the  Marine  Engineers; General  Government                                                                    
(GGU); Labor  Trades and Crafts (LTC);  and Confidential. He                                                                    
remarked  that the  four contracts  had been  negotiated and                                                                    
ratified. He stated  that there was a total  of $2.5 million                                                                    
of GF  savings, and  $6.1 million  of savings.  He explained                                                                    
that the  savings was mostly  related to the  furloughs that                                                                    
were included  in the contracts.  He announced that  the GGU                                                                    
and  LTC  contracts  included  some  increases  in  employee                                                                    
health premiums.  He remarked that the  motion sheets showed                                                                    
the fund  sources and amounts  listed included both  the new                                                                    
contract  approvals and  the  health  trust adjustments.  He                                                                    
explained that Motion  1 was for only the  contracts, so the                                                                    
numbers  were too  high by  approximately  $8.4 million.  He                                                                    
stated that the corrected numbers  would be reflected in the                                                                    
new  version  of  the conference  committee  action  on  the                                                                    
website.                                                                                                                        
                                                                                                                                
Chair Kelly wondered  if a new motion was  required to adopt                                                                    
the corrected fund  codes, and address the  health care fund                                                                    
issues.                                                                                                                         
                                                                                                                                
Mr.  Teal agreed,  and explained  that there  needs to  be a                                                                    
motion for the Health Trust contributions.                                                                                      
                                                                                                                                
Chair  Kelly  announced that  only  the  contracts had  been                                                                    
adopted. Mr. Teal agreed.                                                                                                       
                                                                                                                                
Co-Chair Neuman MOVED to ADOPT new  Items 1 and 2 of the new                                                                    
contractual  agreements  to   incorporate  statewide  salary                                                                    
adjustments. He stated that the  fund sources and amounts in                                                                    
the motion sheets  were incorrect. He stated  that LFD would                                                                    
correct  the  motion  sheets  in  the  conference  committee                                                                    
actions posted on their website.                                                                                                
                                                                                                                                
Representative  Gara OBJECTED  for  DISCUSSION. He  wondered                                                                    
what other  aspects of the  items, besides  contracts, would                                                                    
be considered.                                                                                                                  
                                                                                                                                
Chair Kelly  explained that there  were multiple  aspects of                                                                    
the  motion. He  stated that  he wanted  to ensure  that the                                                                    
contracts  were  adopted. He  shared  that  there were  some                                                                    
issues related to the insurance  fund. He wanted to separate                                                                    
each  issue, but  the numbers  were altered  because of  the                                                                    
separation.                                                                                                                     
                                                                                                                                
Representative Gara WITHDREW the OBJECTION.                                                                                     
                                                                                                                                
Vice-Chair Neuman explained  that the new item  1 includes a                                                                    
reduction   of   $6.1   million  for   recently   negotiated                                                                    
bargaining  unit  concessions  and  adds  $8.4  million  for                                                                    
health insurance  rate increases  that were  submitted after                                                                    
the House and  Senate versions of the  operating budget were                                                                    
completed. The  new item  2 amends  the existing  Salary and                                                                    
Benefit Adjustment language in HB  256 and HB 257 to include                                                                    
the new bargaining agreements. The  details on the amount by                                                                    
fund source are included in  the members' packet and will be                                                                    
made available on Legislative Finance Division's website.                                                                       
                                                                                                                                
There being  NO further  OBJECTION, it  was so  ordered. The                                                                    
other  items   remained  open   for  the   Statewide  Salary                                                                    
Adjustments.                                                                                                                    
                                                                                                                                
Chair Kelly relayed  that the next meeting would  be held on                                                                    
Monday, April 25 at 3:00 p.m.                                                                                                   
                                                                                                                                
HB  256  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  257  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
9:36:27 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:36 a.m.                                                                                          
                                                                                                                                
                                                                                                                                

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