Legislature(2015 - 2016)JNUCAP519

05/30/2015 01:14 PM Senate FINANCE


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01:14:12 PM Start
01:14:47 PM HB2001
04:49:22 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                 SENATE FINANCE COMMITTEE                                                                                       
                  SECOND SPECIAL SESSION                                                                                        
                       May 30, 2015                                                                                             
                         1:14 p.m.                                                                                              
                                                                                                                                
[Note: The meeting was held in Anchorage, Alaska at the                                                                         
Anchorage Legislative Information Office]                                                                                       
                                                                                                                                
1:14:12 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Kelly called the Senate Finance Committee meeting                                                                      
to order at 1:14 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Pete Kelly, Co-Chair                                                                                                    
Senator Peter Micciche, Vice-Chair                                                                                              
Senator Click Bishop                                                                                                            
Senator Mike Dunleavy                                                                                                           
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
James Armstrong, Staff, Senator Pete Kelly; David Teal,                                                                         
Director, Legislative Finance Division.                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 2001   APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          SB 2001 was SCHEDULED but not HEARD.                                                                                  
                                                                                                                                
CSHB 2001(FIN)am                                                                                                                
          APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          CSHB 2001(FIN)am was HEARD and HELD in committee                                                                      
          for further consideration.                                                                                            
                                                                                                                                
                                                                                                                                
CS FOR HOUSE BILL NO. 2001(FIN) am                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;  making   appropriations  for   the                                                                    
     operating   expenses   of    the   state's   integrated                                                                    
     comprehensive   mental  health   program;  capitalizing                                                                    
     funds    and     repealing    appropriations;    making                                                                    
     appropriations under art.  IX, sec. 17(c), Constitution                                                                    
     of the State of  Alaska, from the constitutional budget                                                                    
    reserve fund; and providing for an effective date."                                                                         
                                                                                                                                
1:14:47 PM                                                                                                                    
                                                                                                                                
JAMES ARMSTRONG, STAFF, SENATOR  PETE KELLY, stated the bill                                                                    
would  fully-fund the  K-12 foundation  formula, at  roughly                                                                    
$16.5  million for  than HB  72. The  bargaining units  were                                                                    
restored and  funded. He  stated that  page 64  approved the                                                                    
language,  and  Sections  4 through  6  listed  the  funding                                                                    
sources. The  draft had  a provision  for pay  increases for                                                                    
non-covered employees  contingent on the governor's  veto of                                                                    
HB 176,  which was $11.8  million. There was  an unallocated                                                                    
reduction on page  25, lines 24 through 25  of $29.8 million                                                                    
that   corresponded  with   the   covered  and   non-covered                                                                    
increases. If a supermajority vote  was not obtained then K-                                                                    
12 foundation funds  would be prorated at the  same level in                                                                    
HB 72;  all of the  bargaining units would be  rejected, and                                                                    
the cost  of living pay  increases would not be  funded; and                                                                    
there would be an unallocated  reduction of $9.8 million. He                                                                    
explained  that  there  was  an  amendment  that  added  $15                                                                    
million in CBR  funds for the following  items: $700,000 for                                                                    
Parents as  Teachers; $2 million Pre-K  grants; $2.5 million                                                                    
for Office  of Children's  Services (OCS)  front-line social                                                                    
workers;  $2.8  million  for the  senior  benefits  program;                                                                    
$1.750  million for  the Alaska  Marine  Highway System;  $5                                                                    
million  for  the University  of  Alaska;  and $250,000  for                                                                    
public broadcasting.  The amendment  also added  $681,700 in                                                                    
federal  funds,  and limited  the  FY  15  CBR access  to  a                                                                    
maximum of $500 million.                                                                                                        
                                                                                                                                
Co-Chair Kelly  remarked that  the governor  did not  have a                                                                    
fully-funded budget,  which was  the reason for  the current                                                                    
special  session. He  wondered  if the  current  bill was  a                                                                    
fully-funded budget.                                                                                                            
                                                                                                                                
1:18:17 PM                                                                                                                    
                                                                                                                                
DAVID TEAL, DIRECTOR,  LEGISLATIVE FINANCE DIVISION, replied                                                                    
that the current version did  not fully fund the budget. The                                                                    
FY 16  supermajority vote  gave access  to $15  million, and                                                                    
was the maximum that could be withdrawn from the CBR.                                                                           
                                                                                                                                
Co-Chair  Kelly wondered  what was  needed from  the savings                                                                    
account  to fully  fund the  budget. Mr.  Teal replied  that                                                                    
approximately  $3 billion  was  required to  fully fund  the                                                                    
budget.                                                                                                                         
                                                                                                                                
Co-Chair Kelly  stated that the  budget was $3  billion, and                                                                    
only $15 million would be available.                                                                                            
                                                                                                                                
1:19:05 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
4:49:22 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 4:49 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

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