Legislature(2007 - 2008)SENATE FINANCE 532
03/14/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB221 | |
| HB312 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 221 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 310 | TELECONFERENCED | |
| += | HB 312 | TELECONFERENCED | |
| + | SB 209 | TELECONFERENCED | |
| + | SB 243 | TELECONFERENCED | |
| + | SB 254 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 14, 2008
9:12 a.m.
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:12:30 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
None
ALSO PRESENT
Dan Spencer, Director, Division of Administrative Services,
Department of Public Safety; Gail Fenumiai, Director,
Division of Elections, Office of the Lieutenant Governor;
Betty Martin, Director, Administrative Services, Department
of Law; Eric Swanson, Director, Division of Administrative
Services, Department of Administration; John Cramer, Acting
Deputy Commissioner & Director, Division of Administrative
Services, Department of Military and Veterans Affairs;
Samuel Thomas, Director, Division of Administrative
Services, Department of Commerce, Community and Economic
Development; Caryl McConkie, Tourism Program Manager,
Department of Commerce, Community and Economic Development;
John Weise, Staff, Senator Lyman Hoffman; Tim Grussendorf,
Staff, Senator Lyman Hoffman; Dale Nash, CEO, Alaska
Aerospace; Tom Case, President, Kodiak Launch Complex;
Dwayne Peeples, Deputy Commissioner, Department of
Corrections; Sharleen Griffin, Director, Division of
Administrative Services, Department of Corrections; Chris
Christensen, Deputy Administrative Director, Alaska Court
System; Guy Bell, Assistant Commissioner and Director,
Division of Administrative Services, Department of Labor
and Workforce Development
PRESENT VIA TELECONFERENCE
Tanci Mintz, State Lease/Facilities Manager, Division of
General Services, Department of Administration; Cathy
Forester, Commissioner, Alaska Oil and Gas Conservation
Commission (AOGCC), Department of Administration
SUMMARY
SB 221 "An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing
for an effective date."
SB 221 was heard and HELD in Committee for
further consideration.
CSHB 310(FIN) am
"An Act making appropriations for the operating
and loan program expenses of state government,
for certain programs, and to capitalize funds;
making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska; and
providing for an effective date."
CSHB 310(FIN) am was heard and HELD in Committee
for further consideration.
CSHB 312(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."
CSHB 312(FIN) was heard and HELD in Committee for
further consideration.
9:13:08 AM
SENATE BILL NO. 221
"An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for
an effective date."
Co-Chair Stedman noted a new committee substitute which
includes federally funded projects. All of the general
funds or state funded capital projects have been deleted.
He related the intent to hear from the departments on each
deleted item, project by project. He requested that the
departments rank their appropriations. He emphasized the
committee's intent to be prudent and put excess funds into
savings.
Co-Chair Stedman commented that the focus of all
presentations is on state funds. He reminded the committee
that technology funding was requested by the Governor in FY
08. The intent is to fund the FY 09 capital budget out of
FY 09 operating revenues. He spoke of an attempt to not
cross fiscal years.
9:18:51 AM
DEPARTMENT OF PUBLIC SAFETY
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, turned to the first
allocation.
Project #41544
APSIN Redesign, Year 3 of 3-Year Plan
$2,000,000 Fed Rcpts
$5,000,000 Gen Fund
Mr. Spencer shared the history and function of the project.
This should be the last year of a three-year redesign plan.
Project #45321
Active Directory Development
$300,000 Gen Fund
Mr. Spencer related that this project is the key to the
APSIN system and controls access to it.
Project #45316
Modernize Supply Inventory, Delivery Order, and Arms
Databases
$50,000 Gen Fund
Mr. Spencer reported that the funds will be used to
modernize the supply operation.
Project #45336
AST Records Management System
$950,000 Gen Fund
Mr. Spencer explained that the allocation would take the
existing paper-based system and convert it to an electronic
system.
Project #44329
TraCS Project (Traffic and Criminal Software)
$900,000 Gen Fund
Mr. Spencer reported that the funding is to automate all
form-based items such as citations and reports.
Project #45401
Data Exchange with MAJIC Agencies
$600,000
Mr. Spencer related that the funding would make all of the
collected information available to other agencies such as
the Court System, the Department of Law, the Department of
Corrections, Division of Motor Vehicles, and the Department
of Administration.
Project #45328
Fingerprint Card AST Case Image Archive
$700,000
Mr. Spencer reported that currently there were 500,000
fingerprint cards stored at the Department of Public
Safety. The funding would provide for digitization of
those and future cards.
9:25:07 AM
Co-Chair Stedman voiced appreciation for the Department's
prioritized list. He noted that the Information Technology
(IT) projects are intermixed.
Senator Dyson referred to a question previously asked about
laptops belonging to state troopers. He thought the
technology was not in place yet. Mr. Spencer agreed.
Senator Huggins inquired about the status of Alaska Land
Mobile Radio (ALMR) and where it might be most
appropriately listed. Mr. Spenser reported that
yesterday's DPS conversation was about hand held radios
that are compatible with ALMR.
Senator Elton thought that ALMR should be a part of the EIT
process.
Senator Dyson commented on the ALMR system. He called it a
high priority.
Senator Huggins agreed with the importance of having a
system in place so that it works effectively, is cost
effective, and can be sustained over time.
9:30:58 AM
DIVISION OF ELECTIONS
GAIL FENUMIAI, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF
THE LIEUTENANT GOVERNOR, reported on one allocation,
Project #385224, Polling Place Accessibility Improvements
under the Federal Help America Vote Act (HAVA). It is a
request to expend $100,000 in federal funds received from
the U.S. Health and Human Services Department.
DEPARTMENT OF LAW
9:32:05 AM
BETTY MARTIN, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT
OF LAW, explained the Project #45361 request for an
appropriation for $200,000 for the CRIMES Database Upgrade.
The system provides comprehensive case management, which
includes schedule management, generation of case documents,
and tracking of case statistics, as well as defendant,
victim, and witness information. She provided the history
of the system and how the upgrade would be accomplished.
9:34:17 AM
DEPARTMENT OF ADMINISTRATION
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF ADMINISTRATION, noted that the
Department had prioritized its comprehensive list.
Project #45399
Palmer State Office Building
$15,725,000 Gen Fund
Mr. Swanson provided the history of the facility and the
objective to transform it from a hospital to an office
building.
Senator Huggins asked how much the request was for
negotiating early buy-out of existing contracts. Mr.
Swanson replied that it was about $1 million.
Project #45546
Facility Deferred Maintenance
$7,618,000 ASLC Bonds
Mr. Swanson explained that the request was for funding for
deferred maintenance in public and non-public building fund
projects. He listed the projects and several examples of
the kind of work to be done.
Co-Chair Stedman asked about the State Museum's roof
completion.
9:38:59 AM
TANCI MINTZ, STATE LEASE/FACILITIES MANAGER, DIVISION OF
GENERAL SERVICES, DEPARTMENT OF ADMINISTRATION, detailed
the two phases of the roof completion project. Co-Chair
Stedman asked if the Palmer State Office Building was the
same as in the number one appropriation request. Ms. Mintz
said it was. Mr. Swanson explained that the reason it was
listed again was due to a mold problem discovered after the
initial request. Ms. Mintz said that was correct.
Co-Chair Stedman asked about the expense for the Governor's
house and if any other maintenance was needed. He
requested more information about possible deferred
maintenance needed on the Governor's house. Mr. Swanson
agreed to do that.
Senator Elton asked how much would be the state's
responsibility and how much would fall to non-profit
fundraising. Mr. Swanson offered to provide that
information.
Senator Huggins asked what the Community Building was. Mr.
Swanson clarified that it was in Juneau and houses the
Department of Commerce, Community and Economic Development.
9:41:23 AM
Project #45396
AOGCC Reservoir Depletion Studies Prior to Major Gas
$1,500,000 AK Cap Inc
Mr. Swanson noted that the Commissioner of AOGCC was
available to answer questions.
Co-Chair Hoffman requested more information about the next
project allocation on the list.
Mr. Swanson listed the building deferred maintenance
projects.
Project #45583
Atwood Building Deferred Maintenance Projects
$2,710,000 ASLC Bonds
Mr. Swanson explained that the Atwood Project was part of
the $7.6 million allocation. He continued to list all of
the deferred maintenance projects and their amounts.
Senator Elton requested more information about the Court
Plaza Building Deferred Maintenance Project. He asked if
the roof had already been replaced. Ms. Mintz replied that
it had not been replaced; it was the original roof.
Mr. Swanson returned to the AOGCC Reservoir Depletion
Studies item.
9:45:21 AM
CATHY FORESTER, COMMISSIONER, ALASKA OIL AND GAS
CONSERVATION COMMISSION (AOGCC), DEPARTMENT OF
ADMINISTRATION, explained that the request is for studies
of North Slope gas supplies for Prudhoe Bay and for Point
Thomson. The results of the studies will help to determine
appropriate offtakes.
Co-Chair Stedman asked how the study related to the
Department of Natural Resource's study. Ms. Forester did
not know.
Senator Huggins requested more information about the gas
offtake in Prudhoe Bay. Ms. Forester said the answer at
Prudhoe Bay depends on when the gas pipeline starts up and
what has happened in the meantime to mitigate for oil
losses and to accelerate oil depletion.
9:48:42 AM
Project #45354
Microsoft Directory Project Phase 3
$1,750,000 Info Svc
Mr. Swanson discussed the allocation for the Microsoft
Directory Project Phase 3 to build out the Microsoft Active
Directory, choose locations where deployment of
consolidated file and print servers makes sense, move data
from all file servers to Windows file servers, and
decommission legacy file and print servers.
Project #45391
Maintenance Projects for Facilities Outside the Public
Building Fund
$250,000 Gen Fund
Mr. Swanson reported on the Maintenance Projects for
Facilities Outside the Public Building Fund annual request,
which somewhat overlaps the facilities maintenance project.
The funding sources are different. He listed the
facilities covered.
Co-Chair Stedman questioned the Governor's mansion project
cost and the status of the building. Mr. Swanson offered
to provide more information.
Senator Elton asked about the $250,000 request as it
compares to the priority list. Mr. Swanson thought the
intent was to do lower cost projects first.
Ms. Mintz agreed with Mr. Swanson's answer.
9:52:34 AM
Project #45357
Public Building Fund Deferred Maintenance
$2,500,000 Public Bldg
Mr. Swanson spoke about the request for Public Building
Fund Deferred Maintenance, which is an annual request. The
funds are collected through rent for the buildings.
Project #45348
Web Based Banking Services
$325,000 Info Svc
Mr. Swanson reported on the allocation for Web Based
Banking Services to enhance and improve the functionality,
reliability, and security of Enterprise Technology
Service's (ETS) Enterprise Banking Web Services. These
services allow for customers to use credit cards for
payments.
Project #45395
Division of Motor Vehicles Alaska License and Vehicle
Information Network Replacement
$2,500,000 Rcpt Svcs
Mr. Swanson explained the allocation for the Division of
Motor Vehicles Alaska License and Vehicle Information
Network Replacement, which is needed to replace ALVIN
because the entire system is out of date. He pointed out
that the total cost would be for $10 million, the remainder
of which would be requested over the next two years.
9:55:43 AM
Project #45400
Retirement and Benefits Combined Retirement System Upgrade
$350,000 various fund sources
Mr. Swanson reported on the request for Retirement and
Benefits Combined Retirement System Upgrade. The existing
CRS is outdated.
Co-Chair Stedman asked if the system was developed in the
80's. Mr. Swanson thought that was true.
Project #45653
Cost of Living Survey
$400,000 Gen Fund
Mr. Swanson explained that the survey is required by
statute every five years.
9:58:08 AM
Mr. Swanson reviewed several IT requests.
Project #45376
Network Security
$2,000,000 Info Svc
Mr. Swanson reported that the request was in order to work
on a firewall zone or DMZ and Network Admission Component
(NAC) to keep the network secure.
Project #45346
Asset Management
$500,000 Info Svc
Mr. Swanson explained that the funding was also
appropriated last year.
Co-Chair Stedman noted that the three IT projects were
integrated on the prioritized list. Mr. Swanson said they
were.
Project #45352
Facilities Remediation
$2,700,000 Info Svc
Mr. Swanson reported that the funding is needed for the
Juneau and Anchorage Data Centers, as well as for the
Atwood Building and in rural areas. The remediation work
includes air conditioning, fire suppression, power
distribution, and some reconfiguration of physical space.
Equipment can be damaged if it is not kept at the right
temperature.
10:01:18 AM
Senator Thomas asked what percentage of IT projects the
funding requests cover. Mr. Swanson did not know. He
offered to provide that information.
Senator Dyson underscored the importance of the
deteriorating data base. He encouraged the importance of
keeping up the archives. Senator Elton noted an
appropriation for that item in the Department of
Education's budget.
AT-EASE: 10:04:00 AM
RECONVENE: 10:06:33 AM
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
JOHN CRAMER, ACTING DEPUTY COMMISSIONER & DIRECTOR,
DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF MILITARY
AND VETERANS AFFAIRS, explained the first allocation for
the Alaska Aviation Safety Project.
Project #40060
Alaska Aviation Safety Project
$500,000 Gen Fund
Mr. Cramer explained that the AASP is a multi-faceted,
multi-year research project funded by NASA. Its mission is
to reduce aircraft related fatalities in Alaska. He shared
statistics related to air crashes. He explained how
simulators would be used to train pilots.
Senator Olson asked where the simulators will be located
and who would have access to them. Mr. Cramer replied that
the simulators are currently at the Medallion Foundation in
Anchorage and access is available to private as well as
commercial pilots. Senator Olson inquired if student
pilots could use them. Mr. Cramer said they could. He
reported on a new, pending technology consisting of home
use of the simulation. He said there were currently three
simulators. Senator Olson asked if there was any chance of
decentralizing the simulators for greater access. Mr.
Cramer replied that there has been discussion about that.
10:09:43 AM
Senator Elton asked about the relationship between air
safety and this program and how it compares to the Capstone
program. Mr. Cramer reported that there has been a lot of
discussion on that topic. Capstone and Medallion have been
working together. This technology is greatly reducing the
number of crashes and fatalities in Alaska. Senator Thomas
echoed Senator Elton's concerns about coordinating the two
programs.
Project #45205
Anchorage Armory Roof Replacement
$2,000,000 Fed Rcpts
$2,000,000 G/G Match
Mr. Cramer said that the Anchorage National Guard Armory
Roof located on the Fort Richardson Army Base needs
replacement because it leaks.
Project #42900
Army Guard Facilities Projects
$750,000 Fed Rcpts
$750,000 G/F Match
Mr. Cramer talked about the Army Guard Facilities Projects
request. There are 237 Army National Guard buildings with
a backlog of maintenance needs.
Senator Dyson noted that he and Senator Olson researched
VPSO facilities. He shared the positive outcomes.
Project #43330
Compliance Cleanup Site Restoration
$5,000,000 Fed Rcpts
Mr. Swanson discussed the request to deal with cleanup
liability estimated to be $33.9 million. The funds would
be used to investigate and clean up contaminated armory
sites.
Project 45174
Improved Communications for Emergency Response (ICER)
$3,200,000 Fed Rcpts
$800,000 G/F Match
Mr. Swanson reported on the Improved Communications for
Emergency Response (ICER). The state has been notified by
the Congressional delegation of a new interoperable
emergency communications grant to states starting in FY 09
and continuing for a minimum of five years.
Senator Elton asked that the federal receipts and the
general fund match be used to enhance the ALMR
communication system. Mr. Swanson replied that ALMR has
been looked at and this funding would not be used for it at
this time. Senator Elton asked if the systems would be
compatible. Mr. Swanson said they would be.
Co-Chair Hoffman asked if the program would be focused on
areas that are not currently covered by ALMR. Mr. Swanson
said that was true.
Project #35774
Military Youth Academy Deferred Maintenance, Renewal and
Replacement
$1,000,000 Gen Fund
Mr. Swanson explained the allocation is for the facility at
Camp Carroll on Fort Richardson which has 23 buildings.
The funds will address inadequacies that include basic
life-safety issues, outdated heating systems, toilets,
showers, and laundry facilities.
Project #42898
National Guard Counterdrug Support System
$100,000 Fed Rcpts
Mr. Swanson discussed that the purpose of the funding is to
deter crime by depriving criminals of profits and proceeds
from their illegal activities.
10:16:44 AM
Project #42901
State Homeland Security Grant Program
$9,500,000 Fed Rcpts
Mr. Swanson turned to the State Homeland Security Grant
Program allocation. He explained that the federally funded
program is awarded annually. He described the programs
that are included. It is mandated that 80 percent of the
funds go to first responders.
Project #45547
Military and Veterans Affairs Deferred Maintenance Projects
$6,142,000 ASLC Bonds
$1,769,915 Fed Rcpts
Mr. Swanson referred to a prioritized list of projects. He
explained that Project #45549 for the Alaska Military Youth
Academy is for more deferred maintenance projects. He
spoke of hazardous material cleanup work that has to be
done.
10:20:08 AM
Senator Elton asked how this Military Youth Academy
Deferred Maintenance Project is related to allocation
#35774. Mr. Swanson explained that #45549 would reduce the
allocation for #34774.
Project #45551
Alcantra Armory (Wasilla) Roof Replacement and Painting,
Security Installation, and Equipment
$1,120,000 ASLC Bonds
$250,000 Fed Rcpts
Mr. Swanson explained that the allocation is a deferred
maintenance request. He shared that there are security
problems.
Project 45554
Bethel Readiness Center Stairwell, Fire Escape, Fuel Tank
and Building Repair
$42,500 ASLC Bonds
$42,500 Fed Rcpts
Mr. Swanson discussed the deferred maintenance request.
10:23:02 AM
Project #45559
Camp Carroll Building Upgrades for Code Compliance
$625,000 ASLC Bonds
Mr. Swanson talked about the need to upgrade buildings to
code.
Project #45553
Camp Denali Security System
$174,877 ASLC Bonds
$268,015 Fed Rcpt
Mr. Swanson addressed the need for a security system inside
the armory.
Project #45560
Fairbanks Readiness Center Roof Replacement
$177,500 ASLC Bonds
$322,500 Fed Rcpts
Mr. Swanson reported on the history of leakage in the
facility.
10:24:31 AM
Project #45562
Nome Readiness Center Water, Sewer and Energy
Efficiencies
$1,300,000 ASLC Bonds
$400,000 Fed Rcpts
Mr. Swanson explained the allocation which would include
installation of water and sewer lines and secure heating
for the storage building.
Project #45565
Kotzebue Readiness Center Roof Replacement, Building
Repair, and Fuel Tank Replacement
$718,100 ASLC Bonds
$486,900 Fed Rcpts
Mr. Swanson turned to the last request, which would be used
to upgrade an old facility in Kotzebue.
Co-Chair Stedman noted the Department's list. He
questioned how items related to military youth and Alaska
aviation fit into the list. Mr. Cramer said the list he
provided was prioritized.
10:26:49 AM
Senator Thomas asked about prevention methods regarding the
clean up and site restoration project. Mr. Cramer replied,
"What we don't know today, may crop up tomorrow." He
thought the types of fuel tanks and reservoirs being used
would be preventative.
AT-EASE: 10:28:29 AM
RECONVENE: 10:40:00 AM
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT
SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, addressed the Departments allocations.
Project #38946
Community Block Grants
$6,030,000 Fed Rcpts
$70,000 G/F Match
Mr. Thomas itemized the four major components of the
grants: Community Services, Food and Nutrition, Community
Development, and Emergency Shelter.
Project #45296
Licensing Document Imaging and Archival System
$1,200,000 Rcpt Svcs
Mr. Thomas discussed the threefold purpose of the project:
replace hardcopy documents, integrate digitized
information, and streamline document access.
Project #45298
Investigation System Integration
$450,000 Rcpt Svcs
Mr. Thomas reported that the project consolidates the
departments various investigation systems into one system.
10:46:36 AM
Project #45292
Public Information System Security
$250,000 Blic & Corp
$250,000 Rcpt Svcs
Mr. Thomas addressed the request to provide administrative
support to all divisions and agencies for secure IT
services.
Project #43293
Professional Licensing Website Development
$400,000 Rcpt Svcs
Mr. Thomas explained that the funding would bring 32
professional licensing programs online.
Project #38950
Alaska Energy Authority Energy Projects
$10,000,000 AK Cap Inc
$30,000,000 Fed Rcpts
$500,000 I/A Rcpts
$500,000 Stat Desig
Mr. Thomas described the multiple federally funded energy
programs: Bulk Fuel Upgrades, Rural Power Systems Upgrades,
Alternative Energy and Energy Efficiency Projects.
Project #40056
Organization Grants
$200,000 Gen Fund
Mr. Thomas discussed the request for a grant to Wrangell to
defray the cost of incorporation.
Project #45409
Tourism Economic Impact Study
$100,000 Gen Fund
Mr. Thomas spoke of the request for funds to prepare the
study which promotes economic development and job
employment.
10:51:58 AM
Senator Elton asked why this is not funded by ATIA.
CARYL MCCONKIE, TOURISM PROGRAM MANAGER, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT, explained
that ATIA conducts market research and the state conducts
tourism visitor studies and economic impact studies. She
stressed the importance of the state's involvement in the
economic impact studies.
Senator Elton asked if the Department provides this
information for other industries such as seafood, mining,
timber, or transportation. Ms. McConkie replied that the
state does some research for the fisheries and mining
industries. Senator Elton inquired if existing staff are
doing surveys for other industries. Ms. McConkie explained
that as resources allowed, that was true. One industry
specialist is working for each of the industries. The
appropriation would be used for the specialist to manage a
contract to obtain the data.
SB 221 was set aside.
RECESSED: 10:57:06 AM
RECONVENED: 1:50:47 PM
Co-Chair Hoffman took over as chair of the meeting.
CS FOR HOUSE BILL NO. 310(FIN) am
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date."
CS FOR HOUSE BILL NO. 312(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."
1:52:35 PM
Senator Huggins reviewed the three subcommittees he
chaired: Department of Education and Early Development,
Department of Military and Veterans Affairs, and Department
of Natural Resources. He noted that the subcommittee
complied with the co-chair's request to follow three
guidelines: no new programs, no overall position growth,
and no backfill of federal funds with general funds. This
resulted in an overall savings of $4.3 million: $1.488
million in the EED; $1.7 million in MVA; and $2.4 million
in DNR.
Department of Education and Early Development
Senator Huggins reviewed the budget actions for the
Department of Education and Early Development.
The Senate Finance Budget Subcommittee for the Department
of Education and Early Development submits an operating
budget to the full Senate Finance Committee for FY 09 as
follows:
Fund Source Sen Sub Gov Amd Adj to Sen Sub
General Funds $935,467.3 -$l,488.1
Federal Funds $214,566.9 0
Other Funds $36,033.4 50.0
Total $1,186,067.6 -$1,438.1
Positions
PFT 328 -1
PPT 14 0
Temp 0 0
Total 342 -1
The Subcommittee held three meetings with the Department
and took the following action:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments, decrements and budget
amendments submitted by the Governor.
Following are the highlights of the budget action:
Highlights:
Adopted
$373.1 GF for Alaska Challenge Youth
Academy (formula funded program)
$750.0 GF for Graduation Qualifying Exam
Contractual Increase
$414.0 GF for Work Ready/College Ready
Initiative
$350.0 GF for Mt. Edgecombe Boarding
School Food Services and Dorm Management
Services Contractual Increase (amended
Gov's original
request of $450.0 GF)
$200.0 GF EED Facilities Rent - New
Archives Lease for Built-to-Suit
Building
(amended Gov's original request of
$250.0 GF)
$432.1 GF for WWAMI Program Expansion
$600.0 GF Head Start - Govs amendment
$300.0 GF for Alaska Longitudinal Data
System (Govs proposed increment was
$610.0 to backfill federal dollars with
general funds,)
TRS corrections from the FY08 conference
committee action $1,007.1 GF
Various transactions for Unrealized Fund
Sources for Salary Adjustments GGU
$357.4 GF
Denied
$235.0 GF School District Improvement
Plan Implementation (potential fiscal
note funding - SB 285)
$500.0 GF Alaska Statewide Mentoring
Program Funded at FY 08 level of $4.5
million
$407.1 GF for Early Learning Programs
Senate Subcommittee Recommended Increments
• Senate Subcommittee recommends an
increase to AMEREF's base budget by
$50.0 for a total budget of $100.0 GF.
(In FY08 this program was funded at
$100.0)
$40.0 GF Match - Alaska State Council
on the Arts-State match to obtain
federal
funds.
$100.0 GF - Education Support Services,
School Finance & Facilities, Charter
School Grant Funds. This appropriation
is for the three smallest Charter
Schools in the State.
Items of Concern
Subcommittee Issues of Concern
a.The House and Senate structure are not the same
for the Head Start/Early Learning Program. The
House renamed the program for Head Start/Early
Learning to Early Learning Coordination.
Language and Wordage
The Subcommittee recommends deleting $2.5 million GF for
the School Performance Incentive Program and
recommends adding $2.5 million GF from the numbers
section to the language section. $2.5 million GF was
requested by the Governor in the FY 09 budget
numbers section with open-ended wordage in the
language section to fund this program.
2. The Subcommittee recommends standard wordage be
added for receipts from the teacher certification
fees for Teaching and Learning Support.
3. The House added intent language for the $600.0 GF
increment for Head Start. This language maintains
that the $600.0 GF funding for Head Start be
distributed as grants to providers who match these
grants dollar for dollar and who will use these
funds to enroll additional children in the program.
The Senate Subcommittee did not adopt the intent
language relating to Head Start.
4. The Subcommittee adopted intent language stating
that $100.0 of the total amount appropriated for
charter schools be divided among the three smallest
charter schools based on the average daily
membership of each school.
1:55:59 PM
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Education and Early Development. There
being NO OBJECTION, it was so ordered.
1:56:25 PM
Senator Huggins reviewed the budget actions for the
Department of Military and Veterans Affairs.
Fund Source Sen. Sub Gov Amd Adj to Sen Sub
General Funds $11,062.3 -$1,692.5
Federal Funds $21,173.2 0
Other Funds $12,748.9 0
Total $44,984.4 0
The Senate Finance Budget Subcommittee on the Department of
Military and Veterans Affairs met two times and took the
following action from FY 09 adjusted base:
Budget Action
1. Adopted the FY 09 Adjusted Base
2. Moved the National Guard Naval Militia Retirement
System contributions to direct Appropriation to
Retirement. $986.6 GF decrement requested in FY 09 and
a $735.9 decrement in the base budget.
3. Accepted other increments/decrements proposed by
the Governor.
4. Accepted Governor's Amendment to transfer PCN 09-00
12 Engineer/Architect II to Department of
Transportation and Public Facilities. Position will
remain at Ft. Richardson and be paid for by an RSA
from DMVA. The hope is that DOT/PF will be more
successful in filling the position since there is
career path within that department.
The subcommittee adopted these amendments and included them
in the Proposed FY 09 Senate structure.
Subcommittee Increment Accepted
1. Veterans' Services $30.0 GF - Increase grants
for Veterans Outreach Programs/Veterans
Service Organizations.
Language
The committee adopts the following language under
section 14 of the operating bill:
"Five percent of the market value of the average
ending balances in the Alaska veterans' memorial
endowment fund (AS 37.14.700) for the fiscal years
ending June 30, 2006, June 30, 2007, and June 30,
2008, is appropriated from the Alaska veterans'
memorial endowment fund to the Department of Military
and Veterans' Affairs for the purposes specified in AS
37.14.730(b) for the fiscal year ending June 30,
2009."
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Military and Veterans Affairs. There
being NO OBJECTION, it was so ordered.
1:57:16 PM
Senator Huggins reviewed the budget actions for the
Department of Natural Resources:
The Senate Finance Budget Subcommittee for the Department
of Natural Resources submits an operating budget to the
full Senate Finance Committee for FY 09 as follows:
Fund Source Sen Sub Gov Amd Adj to Sen Sub
General Funds 68,778.5 -2,237.5
Federal Funds 15,676.8 17.1
Other Funds 45,443.0 -311.0
Total 129,898.3 -2,531.4
Positions Sen Sub Gov Amd Adj to Sen Sub
PFT 786 -25
PPT 253 6
Temp 75 0
The Subcommittee held five meetings with the Department and
took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed the increments, decrements and budget
amendments proposed by the Governor. All budget
amendments proposed by the Governor were accepted.
Following are the highlights of the budget action:
Highlights Adopted
- $1,318.1 GF for Oil & Gas Development.
- $464.4 GF for Expanded Audit Function passed in
fiscal note for HB 2001.(2 new positions)
- $300.0 Stat Desig for Increased Royalty
Modification Applications.
- $90.0 CIP Rcpts for Alaska Coastal & Ocean
Management- federally funded Capital Projects.
- $200.0 CIP Rcpts for Non Emergency Hazard
Mitigation Projects(USFS).
- $500.0 GF for the North Latitude Plant Material
Center - GF replaces unrealizable Federal Receipts
in order to continue the foundation seed program.
The Senate subcommittee adopted the $500.0 GF as
an IncOTI
- $225.0 GF Gov's amendment for the Certified
Seed Production. Will provide pathogen tested and
certified potato seed.
- $1,684.1 MHTAAR for Mental Health Trust Land
Office Admin Budget.
- $1,037.7 GF Fire Suppression Preparedness
Aviation Contract Cost Increase.
- $50.0 GF for Claims, Permits & Leases - Guide
Services Initiative Phase I (Senate subcommittee
amended the original request of $100.0 GF. - (1
new position)
- $523.0 GF Gov's amendment for the Petroleum
Systems Integrity Office this is in the language
section of the bill funding is through June 20,
2009.
Denied
- $391.7 GF for AGIA implementation support. (3
new positions)
- $216.7 GF for Oil & Gas exempt employees salary
parity with AOGCC staff
- $85.0 GF for Claims, Permits & Leases, for
increased mining activity/coal regulatory
program. (1 position)
- $308.3 GF for Water Development - increased
Mining Activity and workload, (3 positions)
- $95.0 GF for Geological Development Hydrology
Research Program. (1 new position)
- $700.0 GF/CIP Rcpts for Parks Management
Partial implementation of Long Term Strategic
Plan for State Parks, (2 new PFT positions, 4
PPT to PFT)
- $90.0 GF-. Agriculture Development Senate
Subcommittee eliminated 90.0 GF and 1 position.
This funding is equivalent to the property
manager position for Mat Maid properties. The
Mat Maid properties should be sold soon or be
placed under property management under the
state building fund.
Fund Source
The Senate subcommittee denied $250.7 in fund source
changes to general funds due to salary adjustments. $21.2
in general funds was accepted.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Natural Resources. There being NO
OBJECTION, it was so ordered.
2:00:24 PM
Senator Olson presented the Senate Finance Subcommittee
reports for the Department of Health and Social Services
and Department of Transportation and Public Facilities. He
reported that there was $34.8 million in Health and Social
Services, $1.9 million in Public Safety, and $255,000 in
Transportation in General Fund savings below the Governor's
proposed budget. There was a total savings of all funds of
$58 million less than the Governor's proposed budget.
Senator Olson reviewed the Senate Finance Subcommittee
budget actions for Department of Health and Social
Services.
2:03:27 PM
Senator Olson itemized recommendations that were not
funded.
Co-Chair Hoffman said that although General Fund was
reduced, the overall request is an increase from last year.
The Senate Finance Sub-committee for the Department of
Health and Social Services submits an operating budget for
FY 2009 to the full Senate Finance Committee as follows:
Sen Sub Difference
(Includes language) (Gov Amd/Sen Sub)
Gen Funds $903,309.1 $(34,858.4)
Fed Funds 1,006,582.3 (23,901.1)
0th Funds 171,446.7 175.8
Total $2,081,338.1 $(58,529.7)
Position Changes
FT 3,436 (23)
PT 98
NP 136 1
Budget Action
The Senate Finance Sub-Committee budget authorizes
$58,729.7 less in total, $34,858.4 less in General Funds
(GF), than the Governor's Amended Budget Request. The
differences are shown in summary and in detail in the
attached reports.
The Governor's Amended budget request was accepted with
some differences and comments as follows:
Adopted $67,914.9 of GF ($94,525.1 in total funds) for --
to name the biggest items -- Federal Medical Assistance
Percentage (FMAP) rate change from 52.48% to 50.53%,
projected Medicaid formula growth, various provider rate
increases, the State Children's Health Insurance Program
(SCHIP) shortfall, and various Medicaid cost containments.
Reduced funding by $23,000.0 in GF ($46,000.0 in total
funds) for an unallocated reduction to general Medicaid
rebasing.
Adopted $17,962.9 of GF ($158.3 in total funds) due to the
elimination of ProShare financing.
Amended and adopted $1,613.4 of CF/Mental Health ($18,378.0
in total funds) for Mental Health Trust and other non-GF
funding sources.
Adopted $20,345.4 of GF to fund the Senior Benefits Payment
Program.
Adopted $11,656.8 of GF ($12,894.8 of total funding) for
cost increases and program growth in other non-Medicaid
existing programs, which includes additional base grant
funding for core services with an emphasis on substance
abuse treatment, additional statewide community based youth
development programs, and additional community based grants
to invest in home and community based supports for seniors.
Adopted $1,929.0 of GF for increases to the youth
facilities across the state for additional front line
staffing and safety and security.
Added decrements to disband the Office of Faith Based &
Community Initiatives (reduction of $256.3 in GF and 503.0
in federal funds), to reduce the Commissioner's Office by
$100.0 in GF, and to reduce the Public Affairs Office by
$570.8 in GF.
Other changes are shown in the reports included with this.
With so many essential services to our most vulnerable
Alaskans funded by this budget, there were many worthy and
important requests that we were not able to fund. An
example is a request for $13 million of funding to
strengthen and expand the Community Health Centers (CHCs).
Although they are an alternative to more expensive care
provided in hospitals, and have received the highest rating
possible from the federal Office of Management and Budget
for efficiency and quality, unfortunately it was not
possible to include an expansion such as this in this
budget recommendation.
There were some technical changes included to move some
components to different places in the budget. Those are:
"Suicide Prevention Council" is now under the "Behavioral
Health" RDU, "Rate Review" is now under "Health Care
Services" RDU, and "Health Plan and Infrastructure" is now
under "Public Health" RDU. In addition, new components were
added: "Senior Benefits Payment Program" was added to the
"Public Assistance" RDU, "Agency-wide Unallocated
Reduction" was added to "Departmental Support Services"
RDU. Finally, a new RDU and Component were added, both
titled "Community Initiative Matching Grants".
It is also our intention to allow Legislative Finance to do
technical adjustments if any are needed.
Items of Concern
Clearly, the biggest concern for this budget is the size of
the budget itself, and whether continued increases, such as
are included this year, can be sustained and continue to be
added each year. This budget funds some of the most
essential services of state government and not only are the
costs of all the programs escalating, but in addition,
there continues to be growth in the programs as the elderly
population increases, poverty levels increase, and
substance abuse and other behavioral health problems
abound.
Another concern for this budget is the continuing change to
the FMAP rate and other federal programs, which cost tens
of millions each year as federal funds are replaced with
GF.
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Health and Social
Services.
Senator Dyson asked what would not be done because of the
monies not committed to the budget. Co-Chair Hoffman
requested the Senator Olson review increments requested and
items that have been reduced or eliminated.
AT EASE: 2:06:25 PM
RECONVENE: 2:07:28 PM
There being NO further OBJECTION, the Department of Health
and Social Services Subcommittee report was adopted.
Senator Olson reviewed the Senate Finance Subcommittee
budget actions for Department of Public Safety:
Sen Sub
Gen Funds $112,990.2
Fed Funds 11,573.7
0th Funds 23,033.5
Total 147,376.8 Difference $(l,944.4)
Position Changes
FT 833 (13)
PT 17
PPT 12
Budget Action
The Senate Finance Sub-Committee budget authorizes $1,944.4
less in total than the Governor's Amended Budget Request.
The differences are shown in summary and in detail in the
attached reports.
Per your direction, the increased fuel and utility cost,
which would have increased CF by $635.0, were removed from
this budget request, to be dealt with by the full Finance
Committee.
The Governor's Amended budget request was accepted with
some additional differences and comments as follows:
Adopted $150.0 for increased lease costs
Added $1,595.9 to increase VPSO salaries, to add 15
additional VPSOs with 9 months of funding, and to add a
stipend to each community with a VPSO(s)
Adopted $435.5 of PFD Felon Receipts for Council on
Domestic Violence and Sexual Assault, and amended it by
reducing GF by $100.0
Added $220.0 to assist, develop and regulate fire standards
training
Added $200.0 for Victims for Justice
Amended and adopted a reduction of $734.5 to GF for various
funding source changes (Gov Amd request was for a reduction
of $688.7)
Amended and adopted $500.0 for Anchorage prisoner transport
(Gov Amd request was $656.3)
Amended and adopted $227.5 for increased prisoner transport
(Gov Amd request was $455.0)
Amended and adopted $96.1 for enhanced training (Gov Amd
request was $192.3)
Amended and adopted $546.0 for increased vehicle costs (Gov
Amd request was for $1,092.3)
Other changes are shown in the reports included with this.
The Sub-Committee also recommended language and conditional
funding to be included in the "numbers section" of the CS
for the Rural Alcohol Interdiction Team.
Structure Changes
There are some name changes included in this proposal. The
appropriation previously called "Fire Prevention" is now
titled "Fire and Life Safety". Other allocation name
changes are: "Fire Prevention Operations" to "Fire and Life
Safety Operations", "Fire Services Training" to "Education
Bureau", and "Judicial Services Bureau - Anchorage" to
Alaska Bureau of Judicial Services", Finally, a new RDU
and Component were added, both titled "Victims for
Justice".
2:11:08 PM
Items of Concern
Perhaps the biggest concern for this budget is the
continuing problem with vacant VPSO positions. With the
vacancy rate as high as it is and has been, it is difficult
to protect Alaskans and provide public safety in the rural
areas of the state. The increased funding contained in this
proposal is the first of several such increases expected in
this budget over the next few years. One of the items being
funded is a pay increase for the VPSOs. It is hoped that
the rise in salary will have a positive impact on
recruitment and retention efforts. The VPSO Task Force also
recommended including funding for CPI increases annually on
par with increases requested for the Alaska State Troopers,
and adding funding for 15 additional positions over this
and the next 3 years. This proposal is a start toward
strengthening public safety in the rural areas of the
state.
The other concern that remains with this budget is the
possible loss of funding for the Rural Alcohol Interdiction
Team. The Governor's budget included a request for $870.0
of funding contingent on a similar loss of federal funding.
Our recommendation does reduce the federal receipts, but
includes the GF funding for this component and $400.0 that
would go to the Department of Law for program related
attorney services, as contingent language since it is too
early to know whether or not they have a problem. By doing
so, only if the federal funding is not received will the
Department have the GF funding available.
It is also our intention to allow Legislative Finance to do
technical adjustments if any are needed.
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Public Safety.
2:12:12 PM
Senator Dyson appreciated the enhancement to the VPSO
program. The commissioner is working on a program to
implement a certification for troopers. He noted the
support for more troopers. He said he is not willing to
support less for the troopers.
Senator Olson thanked Senator Dyson for his participation
on the VPSO Task Force. Senator Olson provided some
history of the funding for troopers, as compared to VPSOs.
He wanted to clarify comments that it is not a matter of
funding one or the other.
2:16:06 PM
Senator Dyson responded saying it was not his intention to
communicate taking funds from one to the other. He
maintained the state needs the strength of both the
troopers and the VPSOs.
Senator Dyson MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Elton, Huggins, Olson, Hoffman, Stedman
OPPOSED: Dyson
Senator Thomas was absent.
There being NO further OBJECTION, the Subcommittee report
for the Department of Public Safety was adopted.
2:17:28 PM
Senator Olson reviewed the Senate Finance Subcommittee
budget actions for Department of Transportation and Public
Facilities.
The Senate Finance Sub-committee for the Department of
Transportation and Public Facilities submits an operating
budget to the full Senate Finance Committee for FY 09 as
follows:
Gen. Funds $209,291.5 Difference
Fed Funds $4,086.3
Other Funds $291,109.4
Total $504,487.2 $2,304.7
Position Changes
FT 3,187 (4)
PT 445 (1)
PPT 199 (15)
Budget Action
The Senate Finance Sub-Committee budget authorizes $2,304.7
more in total than the Governor's Amended Budget Request.
This increase derives from the partial restoration of ferry
service to southwest communities by the M/V Kennecott. This
service is necessitated by the extended lay up of the MV
Tustumena for major repairs and refitting. $2,297,000 in
general funds and $1,950,000 in Marine Highway Funds were
added as one time items (OTI) for the Kennecott's
operations during the Tustemena's down time.
2:21:08 PM
Per your direction, the increased fuel and utility cost
were removed from this budget request, to be dealt with by
the full Finance Committee.
The other main differences between the Governor's Amended
budget request and that of the sub-committee's proposal are
as follows:
Removed $42.0 GF of training and travel funds from the
Maintenance Management System increment.
Denied the $180.0 GF increment for desk top computer
support in the transportation and security component.
Reduced the GF increment for the Road Weather Info
System by $54.0 down to $200.0.
Denied the $200.0 GF increment for ongoing funding of
the new non-federally funded bridge program while
sustaining the $150.0 OF start up increment for non-
federally funded bridges.
Changed the $70.0 GF increment for a new Weights and
Measures Inspector Trainee position to receipt supported
services (RSS) fund source.
Changed the $15.0 GF increment for the Chena Pump
Campground maintenance in the Northern Region Facilities
component to I/A fund source with the Department of
Natural Resources.
Reduced $280.0 GF for three new maintenance positions in
the Northern Region Facilities component down to $ lOO.0
one position.
Denied $950.0 GF for 15 positions in the new Equipment
Operator Training Program.
Denied $200.0 GF increment for environmental clean-up
and compliance in the Northern Highways and Aviation
component.
Denied $95.0 GF and $250.0 GF increments for wayside and
pullout maintenance and bike path maintenance,
respectively, in the Northern Highways and Aviation
component.
Reduced the increment for two clerical positions for
Southeast Highways and Aviation to one position and
$30.0 GF.
Throughout the budget, increased GF requests for
personnel cost adjustments or for short falls in receipt
supported funding levels have been denied.
The Sub-Committee recommends the addition of conditional
language for expenditures of traffic fines collected up AS
28.90.030 and Whittier Tunnel toll receipts. There is also
language for lapsing Southeast Region Highways and Aviation
funds.
2:22:02 PM
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Transportation
and Public Facilities.
There being NO OBJECTION, it was ADOPTED.
AT EASE: 2:22:29 PM
RECONVENE: 2:23:08 PM
2:24:03 PM
Co-Chair Stedman reviewed the Senate Finance Subcommittee
budget actions for Department of Law. He reported a
reduction in general funds of $10,396,000 from the
Governor's proposed budget.
The Senate Finance Budget Subcommittee for the Department
of Law submits an Operating Budget to the Senate Finance
Committee for FY 09 as follows:
General Funds 45,930.3
Federal Funds 3,054.6
Other Funds 23,388.2
Positions
PFT 542
PPT 9
Temp 0
The Subcommittee held two meetings with the Department and
took the following actions:
Budget Action
Accepted the Governors amended proposal with the
following adjustments and comments.
Reduced the Governor's request for GF to
replace the Community Gun Violence federal
grant that ended on 12/31/06. The request was
reduced 50% from $121.6 to $60.8.
Reduced the Governor's request for two new
positions in the Anchorage Special Offenders
Unit. The request was reduced 50% from $343.6
to $171.8.
Denied $260.0 in GF increments for the Criminal and Civil
Divisions the Governor requested as a result of a
reduction in federal funds from the Juvenile
Accountability Block Grant program. This funding has
historically come from DH&SS as 1/A receipts. The
subcommittee recommends this funding be restored in the
DH&SS budget with continued I/A receipts issued to the
Department of Law.
Denied the $400.0 GF increment for the Rural Alcohol
Interdiction Program in the Criminal Division's Fourth
Judicial District and Criminal Appeals/Special Litigation
Component. This funding has historically come from DPS as
I/A receipts. Funding for this program has been restored
in the FY 09 DPS budget and it is the intent of the
subcommittee that funding for the program will continue
to come from DPS in the form of I/A receipts.
Reduced the Governor's request for a new PFT Associate
Attorney for adult restitution cases. The request was
reduced 50% from $111.5 to $55.8. The subcommittee
recommends the Department use this funding to continue
hiring temporary staff to address the backlog.
Denied the Governor's multi-year request for $9,600.0
from the Alaska Capital Income Fund for work related to
the state gas pipeline and replaced it with a S5,00.0 GF
one time increment. This increment was moved from the
Department of Law to the Governor's Office under Branch-
wide Oil and Gas Development. The subcommittee recommends
the Department request additional funds in the FY 10
budget as needed.
Denied the Governor's request for a new PFT Associate
Attorney for electronic records and discovery requests.
Wordage
The subcommittee recommends the wordage as referenced on
the wordage report listed.
Language
The subcommittee denied the following language under the
Department of Law:
"The sum of $9,600,000 is appropriate from the
Alaska capital income find (AS 37.05.565) to the
Department of Law, oil, gas and mining section, for
work related to the gas pipeline and to bringing
North Slope natural gas to market, and to other oil
and gas projects, for the fiscal years ending June
30, 2009 and June 30, 2010."
2:27:09 PM
Co-Chair Stedman addressed restoration of funds for the
Criminal Division's Anchorage Special Offenders Unit and
for the Civil Division's permanent, full-time, associate
attorney for adult restitution.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Law.
There being NO OBJECTION, it was so ordered.
2:28:54 PM
Co-Chair Stedman reviewed the Senate Finance Subcommittee
budget actions for Department of Revenue.
The Senate Finance Budget Subcommittee for the Department
of Revenue submits the following FY 09 Operating Budget
Recommendations to the Senate Finance Committee:
Fund Source Sen Sub Difference
General Funds $ 17,057.9 $(1,867.4)
Federal Funds $ 37,040.3 $9.1
Other Funds $208,243.9 $(558.4)
Positions Difference
PFT 868 (5)
PPT 50 0
Temp 17 0
The Subcommittee held two meetings with the Department and
took the following actions:
Budget Action
Accepted the Governor's amended budget and fund source
changes for salary increases with the following exceptions:
TAX DIVISION
Approves $800 k in GF for full funding of Audit Master
positions authorized in the passage of HB 2001 during last
year's special session on oil tax.
Approves increment of $120.9 to hire a Programmer Analyst
V for the oil & gas production tax database system.
Approves one-time increment of $540 k in GF for funding 2
contract auditors at $100 per hour, 40 hours a week with
30% additional for transportation, lodging and other
related expenses. The original request was for 3 contract
auditors and $1,013.2 GF.
TREASURY DIVISION
Approves $360 increment ($126.0 GF/ $234 Inter Agency
Receipts) to increase in house fixed-income portfolio
investment capabilities.
Approves $25 k increment in Retiree Health Insurance Fund
Receipts to cover increased costs of investment management
services.
Approves $250 k increment in Statutory Designated Program
Receipts to bring the retained fees for the State Bond
Committee's financial advisor services "on-budget". This
provides more transparency and accountability with regard
to the costs of these services.
ALASKA RETIREMENT MANAGEMENT BOARD (ARMB)
Accepts a one-time increment of $300 k GF for
conducting an independent audit of the state's
actuary.
ADMINISTRATIVE & SUPPORT
Accepts House recommendation to delete position
transferred from the Alaska Natural Gas line
Development Authority. ($33.3 GF/$55.6 Inter Agency
Receipts).
MENTAL HEALTH TRUST OPERATIONS
Approves a $254k increment in Mental Health Trust
Receipts to allow for increased positions as
recommended in the Board of Trustees operating plan.
ALASKA HOUSING FINANCE OPERATIONS
Approves increment of $893.0 in AHFC Receipts to
correct unrealizable fund sources for salary
adjustments. A corresponding decrement of $759.4
Federal Receipts and -$133.6 CIP Receipts in included.
Approves $11.4 in Fed Receipts for the project based
contract administration expenses.
Approves $180.0 in AHFC Receipts for scheduled
computer & printer replacements.
Approves $505.7 in AHFC Receipts for costs associated
with increased business activity.
Decrements $400.0 in AHFC Receipts for reduced private
lease space in the Atwood building.
ALASKA PERMANENT FUND CORP OPERATIONS
Denies a $83.6 increment in Perm Fund Corp Receipts to
hire 1 new Accountant.
Denies a $95.3 increment in Perm Fund Corp Receipts to
hire 1 new Investment Associate.
Denies a $63.5 increment in Perm Fund Corp Receipts to
hire 1 new IT Technician.
Denies a $70.1 increment in Perm Fund Corp Receipts to
hire 1 new Administrative Specialist.
Approves $180.9 in Perm Fund Corp Receipts to hire 1
Attorney to provide in-house legal counsel necessary
due to the growth and complexity of the Corporations
activities.
Approves $41.2 in Perm Fund Corp Receipts for
increased travel costs.
Approves $89.0 in Perm Fund Corp Receipts for the
increased cost of contractual services.
Approves $272.3 in Perm Fund Corp Receipts for salary
management plan increases.
Accepts $15.8 decrement in Perm Fund Corp Receipts for
reduced commodity and equipment spending plans.
APFC CUSTODY AND MANGEMENT FEES
Approves a $18,615 k increment in Perm Fund Receipts
to pay for increased custody arid management fees.
2:34:56 PM
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Revenue.
There being NO OBJECTION, it was so ordered.
2:35:28 PM
Co-Chair Stedman reviewed the Senate Finance Subcommittee
budget actions for University of Alaska. He noted the
decreases and the increases in funds. He explained the
subcommittee was unable to meet its overall objective.
The Senate Finance Budget Subcommittee for the University
of Alaska submits the following FY 09 Operating Budget
Recommendations to the full Finance Committee:
General Funds $309,585.5
Difference ($464.5)
Budget Action
The Subcommittee reviewed all of the increments and
decrements submitted by the Governor and recommends the
following budget actions:
General Fund Spending: The subcommittee's recommended
budget is a $464.5 k General Fund reduction (less than
1.0%) from the Governor's amended adjusted request.
Appropriation Structure: The subcommittee is recommending a
different appropriation structure than was requested by the
Governor.
Over the last several years, the University has received a
single appropriation from the Legislature.
The House recommended breaking this into 3 appropriations
this year:
Statewide Programs & Services
University of Alaska Campuses and
Small Business Development Center. This item has
traditionally been in the Capital Budget but this
year it has been moved into the operating budget and
given a separate appropriation.
The Senate Subcommittee accepted the House's recommendation
to move the Small Business Development Center to its own
appropriation in the operating budget and to fund it with
Business License Receipts instead of General Funds.
The Senate Subcommittee is recommending that the single
University of Alaska Campuses appropriation be broken into
4 separate appropriations:
University of Alaska Anchorage
University of Alaska Fairbanks
University of Alaska Southeast
University of Alaska Community Campuses
A similar appropriation structure was used by the
Legislature prior to FY 05 and is still used by the
University.
Transaction Detail:
Budget Reductions/Additions: The subcommittee left 3
transactions in the Systemwide Budget Reductions &
Additions appropriation but recommends that the full
Committee consider distributing these as appropriate over
the new appropriation structure.
Accepted the House recommendation to add $1.0 mill
GF for library, IT, and other operating costs. This
was $128.9 GF less than the Governor's request.
Accepted a $3.201 mill GF salary increment for Non-
Represented grid increases.
Accepted a $300 k GF increment for Distance
Education Faculty Training. This will enhance the i-
teach and i-design programs and enhance distance
faculty development.
Accepted a $202.2 GF salary increment in Statewide Services
for Non-Represented grid increases.
Accepted the House recommendation to decrement $757.0 GF as
a 5% unallocated reduction within Statewide Services.
Denied $1.320 mill GF of utility cost increases. Utility
cost increases are expected to be addressed in future
supplemental appropriations and through the "trigger"
language in the operating budget.
Approved the Board of Regent's full $5.776 GF increment to
help prepare Alaskan's for jobs in the health, engineering
and fisheries professions. The committee included $1.0
million to create a new bachelor of fisheries program and
restored the $300.0 k health care decrement made in the
House.
Denied $966.4 GF for University research in the areas of
climate impact and natural resources.
Accepted the House's recommendation to add a $300.0 k GF
increment for tutoring and distance learning within the
Alaska Native Science & Engineering Program.
Accepted the House's recommendation to add a $320.0 GF and
$273.4 University Receipts for the College of Arts &
Sciences general education requirements.
Approved an $80.0 k GF increment for a Career Counselor
position at the Mat-Su College.
Approved a $350.0 k GF to stabilize Cooperative Extension
Program funding.
Approved a $1.5 mill ($500 k GF Match/$1.0 Federal
Receipts) increment to create a research center in
Fairbanks to address rural energy and alternative energy
programs.
2:41:20 PM
Co-Chair Hoffman referred to the transaction detail
budget reductions/additions. He pointed out that the
subcommittee left three transactions in the Systemwide
appropriation, but recommended that the full Committee
address them after the public hearing process.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the University of Alaska.
There being NO OBJECTION, it was so ordered.
2:42:02 PM
Senator Elton reviewed the Senate Finance Subcommittee
budget actions for Department of Corrections.
Re: FY 09 Senate Budget Subcommittee Recommendations
The Senate Finance Budget Subcommittee for the
Department of Corrections submits an operating budget
to the full Senate Finance Committee for FY 09 as
follows:
General Funds $207,988,200
Federal Funds $2,990,500
Other Funds $30,651,900
The subcommittee met multiple times with the
department and took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base, with
the exception of certain changes
to the position adjustments and
transfers that reestablish
funding for correctional officer
premium pay. Those changes are
described below.
2. Reviewed each of the increments (24
GF, 2 Mental Health) and
decrements (0) submitted by the
governor and adopted the
following:
Increments:
Added a one-time increment of $50.0 ($25.0 GF, $25.0
MHTAAR) for a study of evidence-based options to lower
crime and corrections costs in Alaska.
Adopted two net-zero add/delete transactions to realign
positions within the department.
Amended and adopted an increment for the file imaging
program to provide one-time funding of $180.0 GF.
Adopted an increment of $30.9 GF for increased space at the
Palmer office building.
Amended and adopted an increment for increased travel and
contractual expenses associated with new prison expansions.
The subcommittee provided $180.0 in CIP receipts.
Adopted a Facility Maintenance increment of $2,500.0 I/A
receipts to reflect increased expenses in the department's
facilities.
Adopted an increment of $801.0 (451.8 General Fund, 349.2
PFD Crim) to begin implementation of an outpatient
substance abuse program within correctional facilities.
Adopted $310.0 GF for sex offender treatment within
correctional facilities.
Adopted $30.0 GF for educational materials.
Adopted an increment of $331.8 PFD Crim to pay increased
costs of the Residential Substance Abuse Treatment program.
Adopted $343.0 GF for the increased bed rate at the Arizona
contract facility.
Adopted $150.0 GF to begin a sex offender treatment program
in the Arizona contract facility.
Adopted $1,000.0 GF to replace a decrement of $1,000.0 Fed
for decreasing federal prisoner days.
Adopted $1,853.9 GF in 12 transactions to eliminate the
vacancy factor in 24-hour facilities.
The subcommittee approved 20 of the 30 positions the
department eliminated in the 09 adjusted base in order to
fund correctional officer premium pay and adjusted fund
transfers accordingly. The department has completed a
posting study that shows filling five additional positions
at Pt. Mackenzie, 1 in the Anchorage Correctional Complex,
two in Palmer, one at Hiland Mountain, and one at Yukon-
Kuskokwim Correctional Center will reduce overtime by as
much or more than the costs associated with filling those
positions.
Reduced and adopted an increment for Community Residential
Centers. The subcommittee approved $750.0 GF. This is
$250.0 below the governor's request.
Adopted an increment of $260.0 ($50.0 GF, $210.0 MHTAAR) to
implement the Assess, Plan, Identify, Coordinate (APIC)
model as part of the Mental Health Trust Authority's
Disability Justice initiative. The subcommittee applauds
the department and the Trust for working collaboratively on
this program. as directed by the senate's FY 08 operating
budget intent language.
Adopted an increment of $446.0 ($223.0 GF, $223.0 MHTAAR)
for mental health services, The subcommittee again applauds
the department and the Trust for joining forces to reduce
recidivism, costs, and overall crime.
Adopted an increment of $2,126.9 (PFD Crim) for inmate
health care.
Adopted an increment of $106.7 and one PFT to create a
health care manager. This position will dramatically
increase the health systems information available to the
department so it can begin to realize efficiencies in-and
reduce the cost ofinmate health care and health
management.
Adopted an increment of $169.0 in interagency receipts to
hire two mental health clinicians to support mental health
courts.
Amendment Action
The governor did not submit amendments for the
Department of Corrections budget.
Personnel
Reviewed the position count for the Department of
Corrections. The position
count for FY 07 was: 1502PFT, 8PPT,
3Temp
The requested position count for FY 09 is:
1524PFT, 5PPT,
OTemp
The subcommittee recommends:
1505PFT, 4PPT,
OTemp
Items of Concern
Subcommittee issues of concern about the Department of
Corrections include:
1. The subcommittee encourages the department to work
collaboratively with federal agencies to stem the
reduction of federal prisoner days.
2. The historic rate of increase in Community
Residential Center contract costs, reflected in the
FY 09 request for a 6.3% increase in GF, is
unsustainable.
3. The department's FY 08 difficulties in constructing
additional small housing units led the subcommittee
to exclude increments for similar units in FY 09.
Including the construction costs in the capital
budget is more appropriate, so the legislature can
consider future staffing and operations costs once
the facilities are built. We recommend the
construction costs by part of the capital budget.
Wordage Recommendations
The subcommittee recommends correcting the statutory
reference in the governor's conditional carry forward
language related to the Prisoner Employment Program.
Closing Comments
The subcommittee thanks the Department of Corrections
employees for their dedication to justice and service
to Alaska. Theirs is an often dangerous and usually
thankless job. We also thank Billie Jo Gehring of the
Legislative Finance Division for her hard work and
dedication to fiscal policy work. We appreciate her
eye for budgetary detail and willingness to put in
long hours serving our state.
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Corrections.
There being NO OBJECTION, it was so ordered.
2:46:34 PM
Senator Elton reviewed the Senate Finance Subcommittee
budget actions for Courts. The Senate Finance Budget
Subcommittee for the Alaska Court System submits an
operating budget to the full Senate Finance Committee for
FY 09 as follows:
General Funds $78,624,100
Federal Funds $1,675,600
Other Funds $1,493,800
The subcommittee met multiple times with the courts and
took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments (19 GF, 6 Mental Health)
and decrements (0) submitted by the governor on behalf of
the court system and adopted the following:
Increments:
Adopted $100.0 GF for Ketchikan security screening.
Reduced an increment for implementation of the magistrate
salary study's findings to $152.0 GF. This increment is 50
percent implementation.
Reduced two judicial vacancy rate increments from $1089.0
GF to $250.0.
Adopted $76.0 GF for a custody investigator in the first
judicial district, initially part of a larger increment
requested to improve services in the trial courts. The
original request included an additional $182.7 for a second
new position and four position upgrades.
Amended and adopted $550.0 for wellness court contractual
increases. This increment is $300.0 GF and $250.0 MHTAAR.
The subcommittee particularly appreciates the Mental Health
Trust Authority's assistance in ramping up Alaska's
therapeutic courts, which have been a high priority of both
the legislature and court system. This helps fulfill the
goal of crime reduction.
Reduced an increment for juror process enhancement to $69.0
GF. This increment excludes an additional $288.0 the court
system requested to fund juror parking in the Municipality
of Anchorage.
Amended and adopted $43.5 GF for lease increases at several
rural court locations. In most cases the increased lease
costs remain significantly below executive branch costs per
square foot in the same cities. This increment does not
include $25.8 to lease a parking lot in Kenai.
Reduced an increment to expand the Homer courthouse to
$76.9 GF. This is $77.5 below the court system's request,
to reflect the FY 07 increment in that amount, which was
reallocated without legislative approval for two fiscal
years.
Added an increment of $100.0 GF for the Multi-Agency
Justice Integration Consortium. By integrating information
systems among courts, corrections, state and local law
enforcement, and others, MAJIC enhances the entire criminal
justice system by making complete, timely, accurate
information available where and when it is needed.
Adopted six MHTAAR increments in the Mental Health Trust
Authorits Disability Justice Initiative:
$236.3 for Fairbanks Juvenile Mental Health Court
$204.4 for Juneau Mental Health Court
$25.0 for neuropsychiatric evaluations for therapeutic
court participants
$99.4 for Anchorage Mental Health Court capacity
increase
$147.7 for safeguards to prevent financial
victimization
$25.0 to train prosecutors and defense attorneys.
Adopted an increment of $1.7 GF to bring the Alaska
Commission on Judicial Conduct's capital outlay authority
to $5.0.
Adopted an increment of $2.0 GF to maintain the
commission's vacancy rate at three percent.
Adopted an increment of $64.5 GF to allow the Judicial
Council to accommodate the sustained increase in the number
of judicial vacancies and applicants for each vacancy.
Amendment Action
The governor did not submit amendments for the court system
budget.
Personnel
Reviewed the position count for the Alaska Court System.
The position count for
FY 07 was: 724PFT, 58PPT, 33Temp
The requested position count for FY 09 is:
774PFT, 56PPT, 32Ternp
The subcommittee recommends:
728 PFT, 61PPT, 32Temp
Items of Concern
Subcommittee issues of concern about the Alaska Court
System include:
1. The subcommittee encourages the court system to partner
with the Municipality of Anchorage and City of Kenai to
find parking solutions that reflect the significant
costs the state bears in handling municipal offenses.
General fund appropriations for parking in every large
municipality would be unsustainable. General fund
appropriations for parking in only certain
municipalities would be inequitable.
2. The legislature approved a three percent vacancy rate
for the judicial conduct commission in FY 08. The
subcommittee encourages the Division of Legislative
Finance to work collaboratively with the Office of
Management and Budget and the Administrative Director of
the court system to reflect this policy decision in the
agency's adjusted base budget.
Wordage Recommendations
The subcommittee recommends removing the governor's
transmittal language.
Closing Comments
The subcommittee thanks the Alaska Court System's employees
for their dedication to justice and service to Alaska. We
also thank Billie Jo Gehring of the Legislative Finance
Division for her hard work and dedication to fiscal policy
work. We appreciate her eye for budgetary detail and
willingness to put in long hours serving our state.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Courts.
There being NO OBJECTION, it was so ordered.
2:50:16 PM
Senator Elton reviewed the Senate Finance Subcommittee
budget actions for the Department of Environmental
Conservation. He pointed out that the budget is $103,600
more than the Governor's in general funds due to a one-time
amount of $184,000 that should be funded in the FY 09
operating budget rather than in the supplemental as the
Governor had initially requested.
The Senate Finance Budget Subcommittee for the Department
of Environmental Conservation submits an operating budget
to the full Senate Finance Committee for FY 09 as follows:
Fund Source 08 Mgt Plan 09 Gov Amd Adj Sen Sub
Gen Fund $17,893,000 $18,652,900 $18,756,500
Fed Fund $20,533,700 $21,006,600 $21,035,400
Other Funds $28,783,300 $32,542,400 $32,543,000
Personnel
Positions 08 mgt plan 09 Gov Amd Adj Sen. Sub
PFT 527 531 529
PPT 1 1 1
Temp 4 4 4
The subcommittee met with DEC multiple times, including
joint meetings with the House subcommittee, and took the
following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments (2) and decrements (1)
submitted by the governor and adopted the following:
Increments:
Adopted an increment of $523.7 ($261.9 Fed, $261.8
GF Match) to obtain drinking water primacy. This
is the final of three increments, phased over
three fiscal years, to obtain primacy in drinking
water.
Adopted $2,800.0 (Commercial Passenger Vessel
Environmental Compliance) for the ocean ranger
program. This amount includes the governor's
original request of $2,600.0 as well as a
governor's amendment, described below.
Added an increment of $80.0 (GF) for Paralytic
Shellfish Poisoning testing.
Added a one-time increment of $184.0 (GF) for FY 09
work of the governor's climate impact sub-
cabinet. This funding is the FY 09 portion of
what the governor requested in the FY 08
supplemental budget as a multi-year
appropriation. The subcommittee recommends this
transaction to align the appropriations with the
fiscal year in which expenditures are made.
Approved three positions added in the management
plan to the facility construction program, and
one position for Village Safe Water
accountability work. These positions are all
funded from CIP receipts.
Approved one maintenance position added in the
management plan to the DEC lab. This position was
funded by reducing maintenance contracts, based
on the department's determination that a second
maintenance employee is a more cost effective way
to meet the laboratory's needs.
Decrements:
Accepted a decrement of $16.7 in Oil and Hazardous
Materials Response funds in the environmental
health lab.
Decremented $131.0 from the water division and
deleted two positions vacant since the middle of
calendar year 2005.
Decremented $1,547,900 from the National Pollutant
Discharge Elimination System primacy effort. A
language section, described below, reinstates the
funding if certain conditions are met.
3. Realigned Oil and Hazardous Materials Response funds,
replacing $619.3 previously in the contaminated sites
program with GF, and replacing a like amount of GF in
the industry preparedness/pipeline operations
allocation with Oil/Haz funds. This is a net zero
realignment.
Amendment Action
The governor submitted an amendment to increase the
Commercial Passenger Vessel Environmental Compliance
funds authorization for the Ocean Ranger program by
$200.0. The subcommittee accepted this amendment, as
described above.
Personnel
Reviewed the position count for the Department of
Environmental Conservation.
The position count for FY 07 was: 515 PFT, 0 PPT, 4
Temp
The requested position count for FY 09 is: 531 PFT,
1 PPT, 4 Temp
The subcommittee recommends: 529 PFT, 1 PPT, 4 Temp
Items of Concern
The subcommittee understands the department plans to
add two additional employees to implement the Ocean
Ranger program. The department did not seek
legislative authorization for these positions.
Wordage Recommendations
The subcommittee recommends intent language matching
the House. This includes attached intent language
addressing accountability when state agencies spill
oil or hazardous materials.
Language
The subcommittee recommends conditional language that
expenditures for the Ocean Ranger program not exceed
receipts.
The subcommittee recommends language appropriating
$1,547,900 for NPDES primacy contingent on the
transfer of full authority for the program to DEC.
Closing Comments
The subcommittee thanks the department's employees for
their service to Alaska. We also thank Danith Watts
of the Legislative Finance Division for her hard work
and dedication to sound fiscal policy. We appreciate
her encyclopedic knowledge of the state budget system
and ability to put fiscal detail in layman's terms.
Senator Dyson remarked that the Attorney General has
ignored the intent language.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Environmental Conservation.
There being NO OBJECTION, it was so ordered.
2:55:18 PM
Senator Thomas reviewed the Senate Finance Subcommittee
budget actions for the Department of Commerce, Community
and Economic Development:
The Senate Finance Budget Subcommittee for the Department
of Commerce, Community and Economic Development submits an
Operating Budget to the Senate Finance Committee for FY 09
as Follows:
08 Mgt Adj Gov
Fund Source
Plan Amd Sen Sub Difference
General
Funds 10,800.8 10,819.4 9,523.8 -1,295.6
Federal
Funds 50,489.1 54,388.0 54,315.9 -72.1
Other Funds 95,842.6 102,916.0 100,947.6 -1,968.4
08 Mgt Adj Gov
Positions
Plan Amd Sen Sub
PFT 509 516 515
PPT 3 1 1
Temp 4 15 15
The Subcommittee held four meetings and took the following
actions:
The Subcommittee adopted the FY 09 adjusted base as the
starting point for comparison with the Governor's FY 09
budget request. The following are highlights of actions
taken by the Subcommittee:
• Deleted a special assistant to the Commissioner to fund
the Development Manager position in the Office of
Economic Development.
• Funded a new grant administrator in the Division of
Community and Economic Development. The number of grants
overseen by each administrator has reached an
unmanageable level.
• Added funding for the Alaska Legal Services Corporation
to offset loss of federal funding for legal assistance to
victims of domestic violence.
• Deleted the Independent Traveler grant to ATIA, the
Qualified Trade Association.
• Added six positions and $3 million in Federal funding to
the Alaska Aerospace Development Corporation, to support
three additional launches.
• Included full funding for Power Cost Equalization.
• Added $250.0 in General Funds to the Alaska Seafood
Marketing Institute to match federal funds for overseas
marketing.
• Added two positions and receipt supported services
funding to the Division of Banking and Securities for the
second year of the fiscal note for HB 162, the mortgage
lending bill that passed last session. Also, the
Subcommittee authorized the banking division to use an
additional $180.0 in RSS funds for enforcement and legal
costs.
• Added $503.0 in receipt supported services funds to the
Division of Insurance for investigation and enforcement.
• Added $1,000.0 in RCA receipts for the legal costs of the
Regulatory Commission of Alaska.
The Subcommittee did not accept the Governor's request for
General Funds to offset unrealizable federal and other
funds, in the Office of Economic Development.
The Subcommittee also declined the requested $500.0
increment for increases in Department of Administration
charges for core services between FY 05 and FY 08.
Finally, the Subcommittee did not include the $200.0
General Fund increment for the new Energy Coordinator
position in AIDEA/AEA. This was a late amendment and the
Subcommittee defers it to the full committee.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Commerce, Community and Economic
Development.
There being NO OBJECTION, it was so ordered.
2:58:52 PM
Senator Thomas reviewed the Senate Finance Subcommittee
budget actions for the Department of Labor and Workforce
Development:
The Senate Finance Budget Subcommittee for the Department
of Labor and Workforce Development submits an Operating
Budget to the Senate Finance Committee for FY 09 as
Follows:
08 Mgt Adj Gov
Fund Source
Plan Amd Sen Sub Difference
General
Funds 23,380.2 26,176.0 28,210.5 2,034.5
Federal
Funds 86,256.2 85,701.9 85,731.9 30.0
Other Funds 51,471.6 54,926.7 54,843.9 -82.8
08 Mgt Adj Gov
Positions
Plan Amd Sen Sub
PFT 835 835 834
PPT 106 105 105
Temp 46 44 44
The Subcommittee held five meetings and took the following
actions:
The subcommittee adopted the FY 09 adjusted base as the
starting point for comparison with the Governor's FY 09
budget request.
The Governor's FY 09 operating budget request proposes a
significant increase in general funds to cover unrealizable
fund sources due to the GGU negotiated contract. Five
components, Labor Market Information, Data Processing,
Employment and Training Services, Unemployment Insurance,
and Client Services, totaled $2,064.6 million in General
Funds. The subcommittee accepted the fund source changes
in these components recognizing the significant impacts on
workforce services without this change. The subcommittee
declined requested General Fund fund source changes in two
components: the Commissioner's Office and Management
Services.
The Governor's FY 09 operating budget request proposes
spending $1,080.0 General Funds for Alaska Gasline
Inducement Act (AGIA) related services. This
recommendation creates a separate Results Delivery Unit
(RDU) for the AGIA related services in the Governor's
Office. This will allow for transparency in the budget
process this year and in future years as the State of
Alaska moves closer to the construction of a natural gas
pipeline and ensuring that Alaska has the workforce to
support this project.
The subcommittee recommendation also transfers $3.5 million
General Funds for the Alaska Construction Academies from
the Capital to the Operating Budget.
In total, the subcommittee recommendation would increase
the FY 09 Governor's Amended Request by approximately
$2,034.5 General Funds, largely due to the $3.5 million
transferred from the Capital Budget for the Alaska
Construction Academies. The proposal is $293.5 GF greater
than the House proposal due to the inclusion of funding for
Labor Market Information salary increases and the Southwest
Alaska Vocational Technical Center. The following actions
were taken by the subcommittee:
Commissioner and Administrative Services
Commissioner's Office
Declined to accept the $5.4 GF increment to correct
the unrealizable fund source for salary adjustments.
Office of Citizenship Assistance
Deleted $159.6 GF and one PFT in the Office of
Citizenship Assistance, eliminating all funding for
that office.
Management Services
Declined to accept the $75.0 GF/Match increment to
correct the unrealizable fund source for salary
adjustments.
Labor Market Information
Accepted the $98.5 GF increment to correct the
unrealizable fund source for salary adjustments.
Accepted a $95.0 GF increment for 1 PFT Economist II
for AGIA Training Program and Regional Economic
Analysis. The FY 09 request was $110.0 GF. This is a
decrement of $15.0 GF from the FY 09 request. This
funding is transferred to the new AGIA RDU in the
Governor's Office.
Workers' Compensation and Safety:
WC Benefits Guaranty Fund
Accepted the increment of $200.0 Workers' Compensation
Benefit Guaranty Funds for the purpose of allowing
additional benefit payments.
Wage and Hour Administration
Accepted the increment of $50.0 GF for the maintenance
of the Certified Payroll System.
Mechanical Inspection
Accepted the increment of $41.5 Building Safety Fund
to support reclassification of an administrative
position to a Boiler Inspector.
Occupational Safety and Health
Accepted the increment of $61.0 Workers' Safety
Account to correct the unrealizable fund source for
salary adjustments.
Accepted the increment of $46.5 Workers' Safety
Account for the cost to change an administrative
position to a Safety Compliance Officer.
Workforce Development
Employment and Training Services
Accepted the increment of $775.8 GF to correct the
unrealizable fund source for salary adjustments.
Accepted the increment of $10.0 Statutory Designated
Receipts for the Performance Assessment Network
Agreement.
Accepted the $950.0 I/A Receipt authorization for
Alaska Youth First Initiative.
Accepted the increment of $400.0 Federal Reed Act
Authorization to offset the decrement of $400.0 in
general federal receipt authorization.
Unemployment Insurance
Accepted the increment of $734.6 GF to correct the
unrealizable fund source for salary adjustments.
Accepted the increment of $60.0 Statutory Designated
Receipts to allow Memorandums of Agreement with State
Municipalities.
Accepted the increment of $956.1 Federal Reed Act
Authorization to offset the decrement of $956.1 in
general federal receipt authorization.
Adult Basic Education
Accepted the transfer of $528.8 GF to GF/Match to
reflect the federal Maintenance of Effort Requirement.
Workforce Investment Board
Accepted the deletion of 1 PFT and reduced I/A Receipt
Authority to align with anticipated receipts.
Business Services
Accepted the increment of $1,247.9 STEP fund
authorization.
Alaska Vocational Technical Center
Accepted the increment of $163.5 TVEP authorization.
Declined to accept the increment of $135.0 GF for AGIA
Training Program Implementation, which included a
Recruiter and Vocational Instructor Training.
Kotzebue Technical Center
Accepted the increment of $81.7 TVEP authorization.
SW AK Vocational Education Center
Accepted the increment of $29.7 TVEP authorization.
Accepted the $195.0 GF increment to replace reduced
federal funding and maintain SAVEC operations.
Yuut Learning Center (The People's Learning Center)
Accepted the increment of $29.7 TVEP authorization.
Construction Academy Training
Construction Academy Training
Added a new RDU for the Alaska Construction Academies
and $3.5 million GF. This matches the amount
appropriated in the FY 08 Capital Budget and the
Governor's FY 09 capital budget request. The nature of
the activity is operational rather the capital. This
will maintain construction academies in Anchorage,
Fairbanks, Kenai, Mat-Su, Juneau and Ketchikan.
Vocational Rehabilitation
Client Services
Accepted the increment of $267.4 GF/Match to correct
the unrealizable fund source for salary adjustments.
Accepted the transfer of $257.2 GF to GF/Match to
reflect the federal Maintenance of Effort Requirement.
Accepted the decrement of $93.4 I/A Receipts to align
with anticipated receipts.
Independent Living Rehab
Accepted the increment of $39.5 GF for Independent
Living Services in Rural Alaska.
Special Projects
Accepted the increment of $7.1 for interpreter
referral services.
Accepted the decrement of $500.0 Federal Receipts due
to completion of customized employment grant.
Assistive Technology
Accepted the increment of $68.1 I/A Receipts to
support a program coordinator position.
New Governor's Office RDU: AGIA Workforce Training Program
New Component: Labor Market Information Services
Accepted a $95.0 GF increment for 1 PFT Economist II
for AGIA Training Program and Regional Economic
Analysis. The FY 09 request was $110.0 GF. This is a
decrement of $15.0 GF from the FY 09 request.
New Component: Workforce Training Info Services
Accepted $50.0 GF for web and print based Alaska
Training Program guide.
New Component: Regional Training Center Development
Accepted $340.0 GF to fund 1 PFT program coordinator
and grant authority for training 70 apprentices.
Decrement of $70.0 GF.
New Component: Cooperative Training
Accepted $375.0 GF to fund cooperative training
agreements with business and industry for AGIA
specific industries.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Labor and Workplace Development. There
being NO OBJECTION, it was so ordered.
3:07:51 PM
JOHN WEISE, STAFF, SENATOR LYMAN HOFFMAN, reviewed the
Senate Finance Subcommittee budget actions for the
Department of Administration:
The Senate Finance Budget Subcommittee for the Department
of Administration submits an operating report to the full
Senate Finance Committee for FY 09 as follows:
Fund Source
O8 Mgt Gov Amd
Plan Plan Sen Sub Difference
GF 63,344.1 68,283.9 67,769.3 -514.6 -.8%
FED 2825.4 2,775.4 2,775.5 0.1
Other 199,336.2 204,744.6 205,299.1 554.5 3%
Total 265,505.7 275,8O3.9 275,843.9
Personnel
1. Reviewed the authorized position count for the
Department. The Governor requested 10 new positions.
The subcommittee is recommending 4 new hires.
Position Summary
Gov Amd Senate
08 Mgt Adj Sub
Plan
PFT 1,042 1,052 1,046
PPT 23 23 23
Temp 32 32 32
Total 1,097 1,107 1,101
The Subcommittee held three meetings with the Department
and took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments (16), decrements (1)
submitted by the Governor. Accepted the Governor's
proposed salary adjustment fund changes with the
following exceptions:
$12.5 for Administrative Hearings
$4.6 for Commissioner's Office
$53.8 for Administrative Services
$39.2 for Information Technology Support
$29.0 for Central Mail
$0.1 for AOGCC
3. Adopted $496.8/CIP Receipts for Finance, Time &
Attendance, but denied 5 new positions. The
subcommittee recommends the department use existing
positions.
4. Amended and Adopted $420.7/GF for Finance, ALDER
(requested $530.7). The Governor requested 2 new
positions. The subcommittee is recommending 1 new
hire.
5. Amended and Adopted $150.0/GF for Personnel
(requested $365.5). The Governor was requesting
general funds in this component, which is mostly
operated with Interagency Receipts.
6. Adopted $962.0 for Facilities with amended fund
source of $762.0/GF and $200.0/Public Building Fund
(1147).
7. Reduced the base budget appropriation to Enterprise
Technology Services by $250.0 GF with the intent
that the decrement be absorbed in the ALMR/SATS
program.
8. The subcommittee reviewed the House Finance
Committee's $400.0/GF increment to Public
Broadcasting - Radio component - and recommends
accepting this increment and amending the fund
source to a "one-time increment."
Amendment Action
1. Reviewed amendments (5) submitted by the Governor
through February 29, 2008. Accepted amendments for the
following:
$44.0 for Office of Administrative Hearings
$2,400.0 for Office of Public Advocacy
$820.0 for Public Defender
$139.6 for Alaska Public Offices Commission
$8.5 decrement for Violent Crimes Compensation Board
Items of Concern
1. The subcommittee reviewed the functions of the State
Travel Office (STO). The STO continues to be
unpopular with a considerable number of state
employees. It appears that the STO is effective in
saving the State significantly in terms of Medicaid-
related travel; however, there is room for
improvement in terms of ease and flexibility of use
for other employees. The State now has documented
travel expenditures that can be compared to agencies
budgets and should be. The subcommittee reviewed the
use of airline bonus miles by the STO and noted that
STO has done well in reducing the backlog of air
miles from approximately 18 million to 8 million.
This trend should be continued. In summary, the
subcommittee continues to be concerned about the
function of the STO, but agrees with the department
that this relatively new centralized operation
should be given another year to improve.
2. DOA should revise their fiscal note for HB 281 to
reflect the funding of the Governor approved
amendment that provides APOC an increment of
$139.6/GF.
3. The subcommittee amended the request for increments
related to the Time and Attendance System to use
existing positions and approved one new position for
the ALDER operations. Back-up provided by the
department indicated that these positions would be
filled with long-term experienced employees
currently employed by the department and yet did not
transfer out their positions from their previous
assignments. There is concern with the total cost of
the ongoing replacement of the state's accounting
and payroll systems (AKSAS and AKPAY). The
subcommittee urges the department to control the
massive cost of replacing these aging computer
systems.
4. The subcommittee reviewed the ALMR/SATS program.
There is concern of the reduced federal
participation and the future cost of the program.
The department is currently working on the total
cost of operation (TOC). Initially, the department
projected that the TOC was going to be submitted to
the Legislature by March 2008. That date has been
extended to sometime after the Legislature adjourns.
The subcommittee recommends for future tracking, a
budget structure change to add an allocation under
ETS appropriation for ALMR/SATS in 2010.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Administration.
There being NO OBJECTION, it was so ordered.
3:12:50 PM
TIM GRUSSENDORF, STAFF, SENATOR LYMAN HOFFMAN, reviewed the
Senate Finance Subcommittee budget actions for the
Department of Fish and Game.
The Senate Finance Budget Subcommittee for the Department
of Fish and Game submits an Operating Budget to the Senate
Finance Committee for FY 09 as Follows:
Fund Source Gov Amd Sen Sub
Difference
General Funds $52,569.4 $52,138.4 $(431.0)
Federal Funds $54,748.9 $54,748.9 $ 0
Other Funds $65,536.8 $64,360.3
$(1,176.5)
Staffing adjustments recommended by department, no new
positions requested.
The Subcommittee held two meetings with the Department and
took the following actions:
Budget Action
Accepted the Governors amended proposal with the
following adjustments and comments.
Accepted the Proposed fund source changes for salary
increases.
Accepted the Governors amendment for $7,228.4 to replace
Federal Funds with GF in the base. These funds are
proposed to replace lost federal grants that the
department has traditionally received through the
National Marine Fisheries Service, It should be noted
that these funds have never been in the base budget of
NMFS, but have been inserted by Alaska's congressional
delegation. The Western Region Fisheries Management GF of
$1,043.7 and the Wildlife Conservation Special Project of
$1,180.0 will not be added to the base but will be
General Fund One Time Only.
Legislative Intent to close the commercial fisheries and
sport fish offices in Soldotna and transfer staff to
regional office in Anchorage that is accompanied by a
corresponding GF reduction of $80.0 for lease space for
these offices.
Reduce Governors budget for Public Shooting Ranges
$676.5 (F&G funds) following through on the Legislative
intent from last year.
Removed all $500.0 from the AK sport fish enterprise
account from the numbers section of Sport Fisheries'
budget. This funding is derived from a surcharge on the
sale of fish licenses and must be used for hatcheries
operations. The entire $500.0 will be put in a language
section and the appropriation will be contingent upon
passage of the re-appropriation for hatcheries in the FY
08 fast track supplemental bill.
Denied $151.0 increment for commercial fisheries
crewmember and seafood buying database support.
Reduce Sport fish Services GF allocation by $100.0.
Reduce Wildlife Conservation Services GF allocation by
$100.0.
Areas of Concern
Use of Commercial Fisheries Revolving Loan Fund:
The Governor's proposed budget includes $1,326.3 of
funding from the Commercial Fisheries Revolving Loan
Fund in the Department of Commerce. This is of great
concern to the committee because it is eating into the
principal of the fund. The fund and the associated
program in the Division of Investments are very
effective in assisting Alaskans to invest in the
industry, Apart from encouraging the increase in
Alaskan ownership in the North Pacific fishing
industry, the health of the CFRLF may soon be
particularly critical to help the industry respond to
federal mandates for emission controls for diesel
engines. The committee recommends that the Department
of Fish and Game present a budget for FY 10 that does
not include any use of funds from the CFRLF.
Salaries
The Department has indicated for several years that
retaining key fisheries and game management personnel
is becoming more and more difficult because state
salaries are not competitive with the salaries paid to
equivalent positions in the federal government. The
departure of experienced biologists with critical
knowledge of the Alaskan fishing industry and game
resources will leave the department with deficiencies
in its core functions. This issue was included in the
FY 08 subcommittee report yet nothing has changed, so
it remains a major item of concern.
Hunter Education Shooting Ranges
It is the intent of the Legislature that ADFG transfer
ownership of the three shooting ranges in Fairbanks,
Anchorage and Juneau to those municipalities or
appropriate private entities.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Fish and Game.
There being NO OBJECTION, it was so ordered.
3:16:10 PM
Mr. Grussendorf reviewed the Senate Finance Subcommittee
budget actions for the Office of the Governor.
The Senate Finance Budget Subcommittee for the Department
of Fish and Game submits an Operating Budget to the Senate
Finance Committee for FY 09 as follows:
Fund Source Gov Amd Sen Sub Sen to
Gov
General Funds $52,860.6 $55,637.9 $2,777.2
Federal Funds $ 179.0 $ 179.0
Other Funds $ 1,336.0 $ 1,336.0
Positions
PFT 155 152 3
PPT 0 0 0
Temp 46 46 0
The Subcommittee held one meeting with the Department and
took the following actions:
Budget Action
Accepted the Governor's amended proposal with the following
adjustments.
Denied the Increment of $521.9 k to the Division of
Elections for 3 new positions.
Agreed with the House to combine the AGIA related branch
wide O & G Development appropriations into the Governor's
office budget for a clearer picture of how these funds are
used and to keep funds from blending into agencies bases.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Office of the Governor.
There being NO OBJECTION, it was so ordered.
3:18:30 PM
Mr. Grussendorf reviewed the Senate Finance Subcommittee
budget actions for the Legislatures FY 09 Operating Budget
Recommendations.
The Senate Finance Budget Subcommittee for the
Legislature's Operating Budget submits this recommendation
to the Senate Finance Committee for FY 09 as follows:
Fund Source Gov Amd Sen Sub
Difference
General Funds $60,772.6 $59,234.0
$(1,538.6)
Other Funds $ 968.6 $ 963.6 $ (5.0)
Positions
PFT 243 245 2
PPT 278 281 3
Temp 0 0 0
Budget Action
Accepted the Governor's amended proposal with the following
adjustments.
Accepted the reductions of OTO funds brought forward by
LAA.
Deny Increment of $21.1 k to the Select Committee on
Ethics, which included a one range pay increase and added
9.0 k for 6 months of additional casual labor.
Added Increment of $80.0 k to Legislative Council
Administrative Services for additional Maintenance Employee
for Capital and Old Masonic Lodge.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Legislatures FY 09 Operating Budget Recommendations.
There being NO OBJECTION, it was so ordered.
AT EASE: 3:21:56 PM
RECONVENED: 3:22:37 PM
3:23:23 PM
Senator Thomas referred to the Commerce Subcommittee Report
language section of the operating budget as it relates to
the NPR appropriation and voiced disagreement with the
Administration regarding the 2006 legislation, SB 171,
relating to the National Petroleum Reserve. The bill
requires 25 percent of the gross of the NPR revenue
deposited into the Permanent Fund, unless there are
insufficient funds to do so. He reported that the
Subcommittee has asked the Department to provide a letter
of their interpretation of SB 171.
AT EASE: 3:24:51 PM
RECONVENED: 3:49:45 PM
Co-Chair Stedman MOVED to ADOPT SCS CSHB 310 (FIN) am, work
draft 25-GH2015\L, dated 3/14/08. There being NO OBJECTION,
it was so ordered.
Co-Chair Stedman MOVED to ADOPT SCS CSHB 312 (FIN), work
draft version\M. There being NO OBJECTION, it was so
ordered.
CSHB 310 (FIN) am and CSHB 312 (FIN) were heard and HELD in
Committee for further consideration.
AT EASE: 3:50:46 PM
RECONVENED 3:51:02 PM
[Recording difficulties occurred]
3:51:32 PM
SENATE BILL NO. 221
"An Act making appropriations, including capital
appropriations, supplemental appropriations, and
appropriations to capitalize funds; and providing for
an effective date."
Co-Chair Stedman asked the departments to provide
prioritized lists.
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Project #41789
Kodiak Launch Complex Infrastructure
$14,000,000 Fed Rcpts
$3,500,000 Gen Fund
DALE NASH, CEO, ALASKA AEROSPACE DEVELOPMENT CORPORATIONS,
presented an overview of the request. He observed that the
state has contributed $16 million and they have received
$140 million in capital infrastructure from the federal
government. He pointed out that $80 million has been
generated from launch activities and there is a five year
contract with the missile defense agency, which is taking
up most of their capacity. The Kodiak Launch Complex is an
established all-weather, state-of-the-industry spaceport
with 12 successful launches to date. He observed that the
complex is nearing capacity and an additional launch pad is
needed. There will be four launches in 2009. State support
will facilitate additional federal funds.
3:56:42 PM
Co-Chair Stedman clarified that a capital request is not in
the CS at the moment. The intent is to determine the
reliability of federal funding. The general fund component
is $3.4 million and the federal is $14 million. Mr. Nash
noted that they had good indications that the federal funds
would be forthcoming.
3:57:45 PM
GENERAL TOM CASE, PRESIDENT, KODIAK LAUNCH COMPLEX,
provided information on the request. He observed that he
has worked in the aerospace industry for most of his life.
He stressed that space supports national security. One of
the key vocations from project base to operational
responsive and affordable space launch is critical to the
nation. The third launch pad would make Alaska competitive.
Aerospace can be a large part of Alaska's economy in the
future. He spoke in support of the project and concluded
that the commercial and military demand would allow the
Kodiak Launch Complex to be a national spaceport.
4:00:58 PM
Senator Elton expressed interest in what measures are, or
would be taken, as a result of the recent security breach.
4:01:52 PM
Project #40242
Manufacturing Extension Program
$806,401 Gen Fund
SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, reviewed the departments funding requests. He
observed that the request would support Alaska's small and
medium-sized manufacturers by providing them access to
specialists throughout the United States. The local match
is one-third. There are 350 locations nationwide. Rural
Alaskans would be able to receive assistance.
Project #41959
Arctic Winter Games Team Alaska
$250,000 Gen Fund
Mr. Thomas explained that the request would provide funding
for a non-profit, statewide organization to organize and
select, uniform, and transport 150 of Alaska's young
athletes to the Arctic Winter Games.
4:05:18 PM
Project #45654
Alaska Travel Industry Association
$3,000,000 Vehicle Rental Tax
Mr. Thomas observed that the funds would be appropriated to
the Alaska Travel Industry Association and includes $1.5
million of the unexpended and unobligated balance from June
30, 2008. The funds would not be needed if HB 140
legislation is passed to change the match requirement.
Senator Elton asked if the request was the entire amount
collected under the vehicle tax. Mr. Thomas affirmed.
4:06:33 PM
Project #38948
Language Section: NPR-A Impact Grant Program
$5,600,000 NPR Fund
Mr. Thomas observed that he would provide the list of
grantees.
4:08:22 PM
Project #32590
Language Section: Electrical Emergencies
$250,000 Gen Fund
Mr. Thomas observed that the request would address
electrical emergencies.
Senator Elton referred to the request for Project #45654,
Alaska Travel Industry Association (AITA), $3,000,000
Vehicle Rental Tax. He clarified that the tax is on cruise
line passengers. The cruise line simply collects the tax.
He did not want to provide a rationale for cruise lines to
reduce their contributions to ATIA, but only to collect the
tax.
AT EASE: 4:11:53 PM
RECONVENED: 4:12:57 PM
Mr. Thomas continued to explain Project #32590 regarding
technical support when electricity is lost and the need to
have a back-up when this occurs.
Co-Chair Stedman requested that Mr. Thomas prioritize the
list.
4:16:20 PM
DEPARTMENT OF CORRECTIONS
AT EASE: 4:16:52 PM
RECONVENED: 4:17:27 PM
Co-Chair Stedman noted that there was a handout of a
prioritized list.
SHARLEEN GRIFFIN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS, introduced the
Department's projects.
Project #45637
Annual Facilities Maintenance and Repairs
$3,000,000 Gen Fund
Ms. Griffin pointed out that the list identifies 24
different projects that are priorities within the request.
Project #41925
Deferred Maintenance, Renewal, Replacement, Renovation
$8,678,000 ASLC Bonds
Ms. Griffin described Project #45599 for $800,000 in ASLC
Bonds as the roof repair of the Anchorage Correctional
Complex.
Ms. Griffin listed Project #45600 for $1,044,000 for the
Anvil Mountain Correctional Center.
Ms. Griffin detailed Project #45601, the Combined Hiland
Mountain Correction Center Projects for $800,000 in ASLC
Bonds.
Ms. Griffin discussed Project #45602, the Fairbanks
Correctional Center Projects for $600,000 in ASLC Bonds.
Ms. Griffin related details about Project #45603, the
Ketchikan Correctional Center Project for $1,000,000 in
ASLC Bonds.
Ms. Griffin explained Project #45604, the Lemon Creek
Correctional Center Project for $350,000 in ASLC Bonds.
Ms. Griffin listed Project #45605, the Palmer Correctional
Center Projects for $782,000 in ASLC Bonds.
4:23:55 PM
Ms. Griffin continued with Project #45609, the Point
MacKenzie Correctional Farm Project for $130,000 in ASLC
Bonds.
Ms. Griffin discussed Project #45606, Spring Creek
Correctional Center Project for $1,200,000.
Co-Chair Stedman inquired about the Point MacKenzie
Project. He wondered if the existing generators are being
upgraded for a heavier load. Ms. Griffin explained that
the generators don't support the electrical loads currently
placed on them. Co-Chair Stedman requested more
information.
4:25:17 PM
Ms. Griffin explained Project #45607, the Wildwood
Correctional Center Project for $85,000 in ASLC Bonds.
Ms. Griffin detailed Project #45608, the Yukon-Kuskokwim
Correctional Center for $1,887,000 in ASLC Bonds. She
noted it was the number one roofing project request.
Ms. Griffin explained Project #41515, the Institution
Equipment Replacement for $1,000,000 in General Funds.
Ms. Griffin explained Project #45208 for Inmate Health Care
Medical and Dental Equipment for $133,700 in General Funds.
Senator Elton asked if the dental chairs listed would have
been covered in last year's capital appropriation for
$55,000 that the Governor vetoed.
DWAYNE PEEPLES, DEPUTY COMMISSIONER, DEPARTMENT OF
CORRECTIONS, explained that the dental chairs are mid-range
priced. One was scheduled for Hiland and one for Wildwood
correctional facilities and were different projects than
last year's.
Ms. Griffin discussed Project #41516 for Community Jail
Repairs, Renovations, and Equipment for $200,000 in General
Funds.
Ms. Griffin concluded with Project #45247 for Information
Technology Systems Implementation and Replacement for
$1,750,000 in General Funds.
AT EASE: 4:30:06 PM
RECONVENED: 4:30:23 PM
Mr. Peeples explained that the request was to replace
servers and photo ID systems, purchase a medical record
system, and upgrade and renew the OTIS information system.
Co-Chair Stedman noted that item was priority three on the
list.
4:32:42 PM
Senator Elton pointed out that the language in the
justification makes it sound like the $250,000 component
with the base code would be a sole-sourced contract by a
software services company. He wondered if that was
allowable.
Mr. Peeples clarified that the OTIS system is owned by a
consortium of states and it would involve a government to
government relationship contract. Senator Elton asked if
that was allowed under the procurement code. Mr. Peeples
said it was acceptable with approval by the Department of
Administration.
AT EASE: 4:34:53 PM
RECONVENED: 4:36:28 PM
COURT SYSTEM
CHRIS CHRISTENSEN, DEPUTY ADMINISTRATIVE DIRECTOR, ALASKA
COURT SYSTEM, explained that the Court System has presented
a list of projects directly to the legislature and the
Office of Budget and Management. The Administration did
insert several projects from the list into the capital
budget. He referred to a deferred maintenance request for
$3,276,000 that was placed in the Governor's bill, as well
as $5 million worth of other prioritized projects. The
current CS does not include these projects. He proceeded
to identify the original nine items in the list as well as
those that exceeded the $5 million cap.
Co-Chair Stedman noted that they were prioritized. Mr.
Christenson explained which list he was working off of.
AT EASE: 4:38:19 PM
RECONVENED: 4:39:20 PM
Mr. Christensen referenced the list entitled Capital
Projects Six Year Plan Form CP2.
Anchorage Campus Project Renovation
$23,507,600 Gen Fund
Mr. Christensen explained the history of the Anchorage
court campus project and the need for the renovations. He
pointed out that it would be more efficient to complete all
of the phases at this time, rather than over a period of
years.
CourtView Enhancements
$1,708,100 Gen Fund
Mr. Christensen pointed out that this is the court systems
only IT project and is the second priority. It is a three-
year program to enhance the court's case management system.
Co-Chair Stedman asked if this item was the number two
priority on the list. Mr. Christensen said it was.
Mr. Christensen provided several examples as to why the
system was needed. It would allow information to be
accessible on line for enforcement agencies.
4:43:09 PM
Co-Chair Stedman recalled conversations in the past which
highlighted the lack of a case management system as a
concern. He agreed that it was important to have such a
system in place.
Mr. Christensen highlighted the advantages of providing
CourtView for external agencies and the public. He
referred to the "Magic Committee" a group made up of 20 law
enforcement agencies. Co-Chair Stedman voiced concern that
there is no cross-referencing.
4:45:29 PM
Court Security Projects
$1,586,900 Gen Fund
Mr. Christensen described the request for a variety of
security projects around the state. A priority was for
$150,000 to fund an integrated security system in the
Ketchikan Court House. Another piece of the request was
for $350,000 for the Palmer Court House.
Co-Chair Stedman noted that the request for $150,000 was
reduced from the original submission. Mr. Christensen
reported that there was an additional request for
$1,350,000 of which $350,000 would fund the Department of
Public Safety's space in the Palmer Court House.
4:49:53 PM
Building Equipment and Systems Replacement
$591,000
Co-Chair Stedman defined the process the committee would
use to make its decisions.
Mr. Christensen reported that the building equipment and
systems replacement involves statewide replacement of
equipment and system components that have exceeded their
useful life expectancy.
Deferred Maintenance Projects
$3,276,000 Gen Fund
Mr. Christensen reported that included in these projects is
the Ketchikan Court and Office Building, the Anchorage
Boney Courthouse, Delta Courthouse, Ft. Yukon Court, Dimond
Court.
Mr. Christensen moved on to items that did not make it into
the Governor's budget.
Senator Elton referred to the deferred maintenance of the
Dimond Court and Office Building. He thought the Court
System was a part of the public building pool fund source.
Mr. Christensen said that was true. He offered to find out
more about it and get back to the committee. He pointed
out that most of the buildings mentioned are owned by the
Executive Branch.
4:52:41 PM
Senator Elton asked if the Court System's deferred
maintenance criteria is different than the Governor's. Mr.
Christensen said the same definition is used by all.
4:53:57 PM
Statewide Remodeling Projects
$2,155,000
Mr. Christensen reported that these were renovation
projects to increase staff efficiency, improve access for
the public, and accommodate new technology. Projects
included in the request would be to remodel the judicial
benches and in-court stations, and complete the remodel of
the fifth floor of the Fairbanks Courthouse.
Provide and Replace Worn Furnishings and Specialized
Finishes in Court Public Use Spaces
$650,000 Gen Fund
Mr. Christensen noted that all of the money is for public
courthouses.
4:56:36 PM
Statewide Building Code and Energy Upgrade for Court
Buildings
$850,000 Gen Fund
Mr. Christensen described the upgrades planned for
statewide building codes and energy efficiencies.
Vehicles and Forklift Replacement
$90,000
Mr. Christensen explained the use of funds to replace two
court automobiles and a warehouse forklift.
AT EASE: 4:58:31 PM
RECONVENED: 4:59:44 PM
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, said he had a presentation that summarized the
Department's priorities and a proposed net zero
reallocation of funding. The revisions revolve around the
Alaska Vocational Technical Center (AVTEC). Recently,
revised cost estimates were received for the priority
projects previously submitted in the capital budget. The
funding has been reallocated because of those revised
estimates and one of the projects has been dropped.
5:01:48 PM
Project #43045
AVTEC Culinary Building Replacement and Instructional
Equipment
$7,119,000
Mr. Bell said the project would demolish the old building
and build a new one adjacent to the student cafeteria. He
requested that a deferred maintenance project, the remodel
of the cafeteria, be included as part of this project. He
referred to a schematic which showed the location of the
buildings.
5:04:42 PM
Project #45285
AVTEC Maritime Safety Training Facility
$2,000,000 Gen Funds
$1,350,000 G/F Match
Mr. Bell explained that it would fund the building of a
basic training facility for mariners.
5:06:05 PM
Project #45246
Alaska Labor Exchange System Enhancement and Gas Pipeline
Skills Inventory
$600,000
Mr. Bell noted that this is an IT project that will upgrade
the Alaska Labor Exchange System.
Project #49453
AVTEC Deferred Maintenance
$1,486,000 ASLC Bonds
$3,900,000 Gen Fund
Mr. Bell reported that this is a revised project and was
originally for remodeling the cafeteria and the 35-year old
dormitory. The cafeteria remodel has now been proposed to
be included with the building of a new culinary center. It
has also been determined that it would cost less to
demolish the dormitory and rebuild it than to remodel it.
Mr. Bell withdrew the request to remodel the dormitory
building and will readdress the project in FY 2010.
Mr. Bell proposed to take the remainder of the deferred
maintenance budget and reallocate the funds to other high
priority deferred maintenance projects at AVTEC.
Co-Chair Stedman requested a re-prioritized list.
5:11:25 PM
Project #45287
AVTEC Student Database System
$400,000 Gen Fund
Mr. Bell explained the request for funds to replace the
student database system. It would allow for a web-based
system and better student record keeping.
Project #45289
Business Services Management Information System
$3,700,000 Gen Fund
Mr. Bell reported that the request is an IT project to
replace a management information system. The current
system is over 10 years old. There would a $150,000
savings due to this project.
5:13:20 PM
Project #45221
Labor Standards Certified Payroll System Enhancements
$160,700 Gen Fund
Mr. Bell explained that the request is for funds in order
for the Division to have an enhancement to the existing on-
line system that would track public construction projects.
It would allow for electronic fee payment and the filing of
Notices of Work and Completion.
Project #45284
Vocational Rehabilitation Accounting Interface with AKSAS
#250,000 Gen Fund
Mr. Bell reported that the allocation would provide the
ability to transfer client related payments from the
Division's system to the state accounting system.
5:14:55 PM
Project #45288
AVTEC Student Records Archival System
$100,000 Gen Fund
Mr. Bell said that the funds would be used to acquire
electronic imaging equipment and software to store student
records on an electronic media source.
Project #AMD41944
Alaska Works Partnership Fairbanks Pipeline Training
$3,000,000 Gen Fund
$3,000,000 Fed Rcpts
Mr. Bell explained that the request was from the Governor's
amended budget. The purpose is to complete funding for
Fairbanks pipeline training center. He showed pictures of
the training center and spoke of prior appropriations. He
stressed that the project is a partnership.
5:17:04 PM
Co-Chair Hoffman noted that there are several labor
construction projects all around rural Alaska. He wondered
why there was not any assistance from the Department to
complete them. He pointed out the high unemployment rates
found in rural areas.
5:17:38 PM
Mr. Bell reported that the Department does provide
assistance to rural Alaska. He pointed to AVTEC as an
example of a program that draws students from rural Alaska.
Co-Chair Hoffman thought that there should be jobs and
projects provided in rural areas where the workers live.
Mr. Bell said the Department tries to work closely with
regional training centers around Alaska. He offered to
provide documentation.
Co-Chair Hoffman emphasized that the topic under discussion
was the capital budget. He questioned why the state was
not seeking completion of capital projects in rural Alaska.
Mr. Bell offered to provide an answer for the committee.
SB 221 was heard and HELD in Committee for further
consideration.
ADJOURNMENT
The meeting was adjourned at 5:20.
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