Legislature(2013 - 2014)SENATE FINANCE 532
02/05/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB42 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| = | SB 42 | ||
| + | SB 29 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 5, 2013
9:08 a.m.
9:08:25 AM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 9:08 a.m.
MEMBERS PRESENT
Senator Pete Kelly, Co-Chair
Senator Kevin Meyer, Co-Chair
Senator Anna Fairclough, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Karen Rehfeld, Director, Office of Management and Budget,
Office of the Governor
SUMMARY
SB 42 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS
SB 42 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 42
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; repealing appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
9:09:35 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, provided a spreadsheet and summary
page for the FY13 Supplemental Bill, SB 42 (copies on
file).
Ms. Rehfeld looked at the summary, and stated that there
was a reduction in general funds requests of $2.877
million; a designated general funds request increase of
$4,200; other funds requests totaled $24.464 million; and
federal funds requests totaled $2.864 million. She noted
that the total operating supplemental request showed a
decrease of $3.344 million. She remarked that the governor
had asked for an additional $5.3 million, based on the
estimates of fire suppression activities for FY13. She
pointed out a request of $3.4 million in disaster relief;
and $900,000 of that request was related to the previous
winter's storms and an anticipation of spring flooding. She
pointed out the $25 million general fund decrement in the
Medicaid decrement. There was a debt service reduction of
approximately $6 million in general funds; and eight
judgments and settlements from the Department of Law (DOL).
The total capital supplemental items totaled $27.8 million,
of which $3.8 million was general funds.
Ms. Rehfeld highlighted the 19 sections of SB 42. She
stated that Section 1 was the operating numbers portion of
the bill. Section 2 was the funding summary by department
for the individual items. Section 3 was the capital
summary, followed by a funding summary in Section 4.
Section 5 was the funding summary for all items contained
in both the operating and capital supplemental budget.
9:13:17 AM
Ms. Rehfeld stated that the language sections began on page
8 of SB 42. Section 6 related to Department of Fish and
Game (DFG) for a scope change and additional industry
receipts. Section 7 was directed for the Department of
Health and Social Services (DHSS) to provide some carry-
forward of some bonus payments for DHSS received as a
result of their performance managing the Children's Health
Insurance Program. Section 8 related to DOL, with items
related to the settlements mentioned earlier. There was a
request for an increase in appropriation for litigation
related to the fast ferry engines, and to extend the lapse
date of that appropriation through June 30, 2014. Section 9
was for the Department of Natural Resources (DNR) to extend
a lapse date on an oil and gas appropriation through Jun
30, 2015. Section 10 related to Department of Public Safety
(DPS) for reappropriation of Aircraft, Hangar, and
Statewide Facilities Maintenance to a statewide aircraft
hangar improvement project. Section 11 had two items for
Department of Revenue (DOR): reappropriating funding for
Loussac Manor project to be combined with other funding
sources for the San Roberto Mountain View Development; and
a request to reappropriate prior funds for payment card
security for oil and gas fiscal systems analysis.
Ms. Rehfeld looked at the two parts of Section 12: ongoing
litigation for the Ruth Burnett Sport Fish Hatchery; and
compliance language for federal right-of-way receipts.
Section 13 related to debt and other obligations, with a
request to replace general funds with a general obligation
(GO) bond debt service with approximately $1 million in
debt retirement funds. Section 13 also requested a shift
for the international airports to balance the utilization
of their construction funds, with the receipts that were
received from their airport customers; and a reduction of
$5 million debt service for school debt reimbursement.
Ms. Rehfeld stated that Section 14 outlined a request of
$3.4 million for disaster relief. Section 15 was for fund
transfers to allow compliance with some federal audit
findings regarding revenue that was collected from shooting
ranges, waterfowl conservation stamps, and sanctuary access
permits in the DFG fund. Section 16 was specific to a
ratification for fire suppression from the FY12 budget,
because it was difficult to predict the actual expenditures
for fire suppression year by year. Section 17 was a lapse
of appropriations, and pointed out that the
reappropriations would have a capital project lapse.
Section 18 was the retroactivity piece related to fire
suppression, with an effective date of June 30, 2012; and
the DOT right-of-way receipts were retroactive to June 30,
2012. Section 19 was the effective date of SB 42: April 14,
2013.
9:18:46 AM
Ms. Rehfeld highlighted the items listed in the FY13
Supplemental Bill spreadsheet. Lines 2 and 3 were for the
Alcoholic Beverage Control (ABC) Board. The requests were
program receipts requested specific to legal assistance,
and maintaining an underage drinking enforcement program.
Both of the requests were in the FY14 budget. She looked at
line 4, which was a request for the Alaska Industrial
Development and Export Authority (AIDEA). She explained
that AIDEA requested to participate and assist in several
large project development and financing options; and were
seeking some additional capacity to hire some technical
expertise. The $200,000 in AIDEA receipts was also
requested in the governor's FY14 budget. She explained that
line 5 related to the DFG appropriation for the waterfowl
and sanctuary access permit fees from DFG funds rather than
from program receipts. She stated that line 6 was in
compliance with federal findings. She pointed out that
$303,000 was requested to deposit shooting range fees into
the fish and game fund. She explained that lines 7 and 8
were for the DHSS, and were for food service, laundry, and
janitorial contracts at the Pioneer Homes. She explained
that line 9 was a request for security upgrades at the
Office of Children Services Anchorage Regional Office in
response to recent security threats, and furthered that
there was a request in the FY14 budget related to that
item. Ms. Rehfeld stated that line 10 was a request to
maintain services for child protection programs. She
furthered that line 11 was a request for social worker
class study implementation. That study is now complete.
This request is included in the governor's FY14 budget.
9:23:44 AM
Ms. Rehfeld explained that line 12 was a request from DHSS
for social security income and child support for children
in State custody. There is additional Social Security
Income and child support receipts for protective custody
available. There is also a reduction of federal funds. This
request was included in the governor's FY14 budget. She
stated that line 13 was a fund source. She relayed that
line 14 was a request from DHSS for increased medical costs
for clients in the Division of Juvenile Justice. This
request is included in the governor's FY14 budget. She
explained that line 15 was for an increase federal receipt
authority to provide cash assistance and work services to
low-income families with children to help them with basic
needs while they work toward becoming self-sufficient. This
request, and the request on line 16, was included in the
FY14 Governor's budget.
Ms. Rehfeld reported that line 19 was a request from DHSS
for Health Care Access and Service Delivery Evaluation and
System Development Funds were available from the Children's
Health Insurance Program Reauthorization Act of 2009
(CHIPRA) based on the Department of Health and Social
Services' performance in managing the CHIP program. These
funds would be used to help oversee and manage health care
services and Medicaid programs through evaluation of health
care services and delivery. Studies to evaluate and
determine the most cost efficient and effective delivery of
health care services and systems and equipment to help
achieve increased efficiency and effectiveness of health
care delivery and reporting capabilities are included in
this request. The impact of this supplemental request was
being considered for a FY14 budget amendment.
Ms. Rehfeld explained that line 20 was for a $25 million
decrement for savings from Medicaid cost containment
measures. She communicated that line 21 was from the
Department of Labor and Workforce Development (DLWD) for
department-wide unavoidable lease cost increases. She
explained that line 22 was from DNR for fire suppression
activity.
9:27:13 AM
Ms. Rehfeld announced that line 23 was from DPS to replace
federal pass-through funds from the Alaska Highway Safety
Office, which would cover both Driving Under the Influence
(DUI) and non-DUI related activities. A similar request is
included in the FY14 governor's budget in the amount of
$2.937 million. She shared that line 25 was from the
Department of Transportation and Public Facilities
(DOT/PF, and was a request for legal fees related to Old
Quihaguk Airport; line 26 was for storm water compliance;
and line 27 was for maintenance and operations of New
Akutan Airport. She shared that line 28 was for retiree
health insurance increases for Alaska Marine Highway
Systems unions, and furthered that certain retirees in the
Alaska Marine Highway System bargaining units can elect to
remain covered under their active health plan through the
North West Marine Welfare Trust. Recalculations of premiums
occur annually, based on claims and number of participants.
Bargaining Units include the Inland Boatmen's Union
representing the Unlicensed Marine Unit; Marine Engineer's
Beneficial Association; and International Organization of
Masters, Mates, and Pilots. She explained that line 29 was
from the Alaska Court System (COURT) to provide reasonable
accommodations to assist a hearing impaired judge who was
appointed to the superior court bench in Bethel. She stated
that line 32 was from Department of Commerce, Community and
Economic Development (DCCED) for the Petersburg Borough
organization grant, and was a one-time request. She
announced that line 33 was from DOR for the Alaska Housing
Finance Corporation (AHFC) San Roberto Mountain View
development project.
Ms. Rehfeld concluded her presentation, and offered to
answer questions.
9:31:56 AM
AT EASE
9:36:00 AM
RECONVENED
9:36:06 AM
Senator Dunleavy looked at line 23, and wondered if the
request was in place because the federal government
withdrew funds. Ms. Rehfeld replied that DOT/PF would still
receive funding from the federal government, but DPS would
not receive the federal money to continue the efforts of
the Alaska Highway Patrol.
Senator Hoffman looked at line 27, and wondered how the
funds would be utilized. Ms. Rehfeld replied that the funds
were specific to the operations of the airport on Akun
Island. She furthered that there were a number of issues
associated with the transportation between of the airport
on Akun and the City of Akutan.
Vice-Chair Fairclough joined the meeting.
Senator Hoffman wondered if there would be recommendations
to the committee to address Federal Aviation Administration
requirements for ease of access to the Akutan Airport. Ms.
Rehfeld replied that conversations and work regarding the
Akutan Airport was ongoing.
Co-Chair Kelly requested that the Office of Management and
Budget keep Senator Hoffman informed regarding his request.
Ms. Rehfeld agreed to continue to provide that information.
9:39:48 AM
Co-Chair Meyer wondered why there was a request for
additional $62,500 for the ABC Board. Co-Chair Kelly
furthered that he would like a history of the moving of the
ABC Board from DPS to DCCED. Ms. Rehfeld explained that the
way that the cost allocations were different between DPS
and DCCED.
Co-Chair Meyer remarked that there was some debate in the
year prior regarding the ABC Board. He did not recall an
issue regarding extra costs. Ms. Rehfeld replied that there
was some discussion of the difference in how the costs
would be allocated in DCCED's fiscal note. She understood
that the amount of legal that was required may not have
been fully addressed in the fiscal note.
Vice-Chair Fairclough emphasized that she was against
moving the ABC Board from DPS to DCCED. While the ABC Board
was in DPS, the businesses would be treated punitively.
Because of the lack of education, businesses were often
punished, because of their ignorance. In the previous
legislature, some felt that it would better serve the
businesses to be overseen by DCCED.
9:44:57 AM
Senator Bishop looked at line 7, and wondered if the
request was for the Pioneer homes statewide or for just one
location. Ms. Rehfeld replied that the request was
statewide.
Senator Bishop wondered if DHSS did not foresee the
increase in service costs. Ms. Rehfeld responded that DHSS
knew there would be cost increases, felt in the prior
budget that those costs would be managed properly, but some
unrealized receipts resulted in this supplemental request.
Senator Hoffman looked at line 20, and wondered if the
request was a one-time request or ongoing. Ms. Rehfeld
replied that those efforts were expected to continue.
Senator Olson looked at line 9, and wondered if the request
would be ongoing. Ms. Rehfeld replied in the affirmative.
Senator Olson felt that a construction expense should be
one-time. Ms. Rehfeld replied that there would be pieces
of the construction that would be one-time requests like
surveillance cameras, but there would be ongoing costs.
Co-Chair Kelly wondered what the status was for the fish
hatchery in Fairbanks Ms. Rehfeld replied that there would
two pieces in SB 42 related to with page 8, line 19 of the
bill.
9:49:06 AM
Co-Chair Kelly wondered where that would be located in the
spreadsheet. Ms. Rehfeld replied that it was on page 9,
line 39. She shared that there was a total $4.775 million
requested for settlements and judgments; $3.638 million of
that request was for the contractor that performed the work
on the hatchery. There was an additional request to cover
ongoing litigation to attempt to recover some of the costs
from the company that worked on the building.
Senator Olson looked at line 36 of the spreadsheet. He felt
that engine maintenance should be considered an operating
expense, rather than a capital request. He expressed that
the Capstone request should not be appropriated, because
there should be more a focus on safety. Ms. Rehfeld replied
that DFG could provide detailed information regarding
Senator Olson's concerns. She shared that the areas where
the aircrafts were operated, did not have the Capstone
capability.
Senator Olson restated that he did not agree with the
Capstone reappropriation.
Senator Olson looked at line 51, and queried the status of
the significant erosion issue in Kivalina. Ms. Rehfeld
responded that she did not know, but agreed to provide that
information.
SB 42 was HEARD and HELD in committee for further
consideration.
Co-Chair Kelly discussed housekeeping.
ADJOURNMENT
9:55:43 AM
The meeting was adjourned at 9:55 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| FY2013 Supplemental Requests 1-28-13.pdf |
SFIN 2/5/2013 9:00:00 AM |
SB 42 |
| FY2013 Supplemental Summary.pdf |
SFIN 2/5/2013 9:00:00 AM |
SB 42 |
| 2 6 13 Sen Kelly Sen Meyer_Kivalina Disaster Relief and Erosion.pdf |
SFIN 2/5/2013 9:00:00 AM |
SB 42 |