Legislature(2009 - 2010)SENATE FINANCE 532

03/24/2009 09:00 AM FINANCE


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09:10:07 AM Start
09:10:25 AM HB83
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 81 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+ HB 83 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Close-out Reports
+ Bills Previously Heard/Scheduled TELECONFERENCED
                   SENATE FINANCE COMMITTEE                                                                                     
                       March 24, 2009                                                                                           
                          9:10 a.m.                                                                                             
                                                                                                                                
9:10:07 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Hoffman called the Senate Finance Committee                                                                            
meeting to order at 9:10 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Charlie Huggins, Vice-Chair                                                                                             
Senator Johnny Ellis                                                                                                            
Senator Donny Olson                                                                                                             
Senator Joe Thomas                                                                                                              
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Gene  Therriault;  Tim  Benintendi,  Staff,  Senator                                                                   
Olson;   Denise   Liccioli,   Staff,   Senator   Olson;   Tim                                                                   
Grussendorf, Staff,  Co-Chair Hoffman; David  Teal, Director,                                                                   
Legislative  Finance Division;  Jessie  Kiehl, Staff,  Senate                                                                   
District B.                                                                                                                     
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 81(FIN) am(brf sup maj fld)                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     loan program  expenses of state government,  for certain                                                                   
     programs, and  to capitalize funds;  making supplemental                                                                   
     appropriations;  making reappropriations;  and providing                                                                   
     for an effective date."                                                                                                    
                                                                                                                                
     CSHB 81 (FIN) was HEARD and HELD in Committee for                                                                          
     further consideration.                                                                                                     
                                                                                                                                
CSHB 83(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  83  (FIN) was  HEARD  and  HELD in  Committee  for                                                                   
     further consideration.                                                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 81(FIN) am(brf sup maj fld)                                                                             
                                                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     loan program  expenses of state government,  for certain                                                                   
     programs, and  to capitalize funds;  making supplemental                                                                   
     appropriations;  making reappropriations;  and providing                                                                   
     for an effective date."                                                                                                    
                                                                                                                                
CS FOR HOUSE BILL NO. 83(FIN)                                                                                                 
                                                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     capital    expenses    of   the    state's    integrated                                                                   
     comprehensive mental  health program; and  providing for                                                                   
     an effective date."                                                                                                        
                                                                                                                                
                                                                                                                                
9:10:25 AM                                                                                                                    
                                                                                                                                
Senator Olson presented the Senate Committee Recommendation                                                                     
for Department of Administration (DDOA).                                                                                        
                                                                                                                                
TIM BENINTENDI, STAFF, SENATOR OLSON, reviewed the                                                                              
Subcommittee recommendations.                                                                                                   
                                                                                                                                
     DEPARTMENT OF ADMINISTRATION                                                                                               
                                                                                                                                
     FUND SOURCE:                                                                                                               
                    FY09 Mgt Gov Amd+ Sen Sub                                                                                   
          Difference                                                                                                            
                    Plan Rev                       SenSub to                                                                    
     GovAm+                                                                                                                     
                                                                                                                                
     GENERAL FUNDS: 73,634.6 74,165.0 73,589.4                                                                                  
          (575.6)                                                                                                               
     FEDERAL FUNDS:   2,776.3   2,782.4   2,878.1                                                                               
     95.7                                                                                                                       
     OTHER FUNDS:     205,890.4     216,295.0     216,789.9                                                                     
           494.9                                                                                                                
                                                                                                                                
     TOTAL  FUNDS:              282,301.3           293,242.4                                                                   
     293,257.4             15.0                                                                                                 
                                                                                                                                
     PERSONNEL:                                                                                                                 
     We  reviewed   the  authorized  position  count.     The                                                                   
     Department has  increased 22 PFT positions  since FY09CC                                                                   
     through  position  adjustments,  reclassifications  from                                                                   
     PPT  to  PFT,  and  the addition  of  positions  due  to                                                                   
     legislation.    The  Subcommittee  recommends  that  the                                                                   
     department  search to  eliminate five  PFT positions  to                                                                   
     reduce the overall authorized position count.                                                                              
                                                                                                                                
                    FY09       Gov Amd+       Sen Sub   CC                                                                      
                    PFT             1,046             1,068                                                                     
          1,063                                                                                                                 
     PPT               23                 20                                                                                    
     20                                                                                                                         
     TEMP              32                 33                                                                                    
     33                                                                                                                         
                                                                                                                                
     TOTAL:         1,101              1,121         1,116                                                                      
                                                                                                                                
                                                                                                                                
     OTHER SUBCOMMITTEE ACTION:                                                                                                 
     The  Subcommittee  approves an  increment  of $250.0  GF                                                                   
     for the Alaska Public                                                                                                      
     Broadcasting Commission  / Radio, for  station operating                                                                   
     grants.                                                                                                                    
                                                                                                                                
     The  Subcommittee  approves a  funding  level of  $130.0                                                                   
     GF, which includes  the addition of $65.0  GF to replace                                                                   
     expiring federal funds for Partners For Progress,                                                                          
     a non-profit entity which supports Therapeutic Courts.                                                                     
                                                                                                                                
9:13:06 AM                                                                                                                    
                                                                                                                                
     The Subcommittee  approves a fund switch  in Centralized                                                                   
     Administrative Services  / Finance to replace  $220.0 GF                                                                   
     with Capital Improvement Project receipts.                                                                                 
                                                                                                                                
     The Subcommittee  approves a  GF increment of  $140.0 in                                                                   
     Centralized   Administrative  Services   /  Finance   to                                                                   
     support  the Alaska  Data  Enterprise Reporting  (ALDER)                                                                   
     data   warehouse  ($100.0),   and  for  vacancy   factor                                                                   
     reductions ($40.0).                                                                                                        
                                                                                                                                
     The Subcommittee  denies a  request for an  increment of                                                                   
     $300.0  GF  to  pay  operations   and  maintenance  cost                                                                   
     increases  for  the  Alaska   Telecommunications  System                                                                   
     (SATS).                                                                                                                    
                                                                                                                                
9:13:58 AM                                                                                                                    
                                                                                                                                
     Regarding  a  request  for  salary  and  health  benefit                                                                   
     increases within  Centralized Administrative  Services /                                                                   
     Subcommittee  approved  a request  for  two fund  source                                                                   
     changes to  GF to avoid an increase in  chargeback rates                                                                   
     paid by agencies  - for $472.2 and  $415.9 respectively.                                                                   
     Furthermore, in  order to provide cost recovery  of non-                                                                   
     general  funds,  the Subcommittee  agrees  to  authorize                                                                   
     replacement  of $66.4 GF  with a variety  of non-general                                                                   
     fund sources  for Centralized Administrative  Services /                                                                   
     Personnel,  and would  replace another  $97.2 GF  with a                                                                   
     variety  of  non-general  fund  sources  for  Enterprise                                                                   
     Technology  Services.    Wordage  is  also  included  to                                                                   
     allow distribution  of these  funds to user  agencies in                                                                   
     order to pay increased service costs.                                                                                      
                                                                                                                                
9:15:23 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     The  Subcommittee  reviewed  the status  of  the  Alaska                                                                   
     Land   Mobile  Radio  system   (ALMR),  and   recognized                                                                   
     improved  managerial control  of the  program since  the                                                                   
     issuance  in 2006,  of Legislative  Audit  #09-30021-06.                                                                   
     Of  significance   is  the  completion  of   the  report                                                                   
     entitled,  "Total   Cost  Of  Ownership  Study."     The                                                                   
     Subcommittee   recommends  that   the  Department   take                                                                   
     action  to  ensure  that   participating  municipalities                                                                   
     begin to pay  their share of operations  and maintenance                                                                   
     costs.                                                                                                                     
                                                                                                                                
     The  Subcommittee reviewed  a request  for a lapse  date                                                                   
     extension   by  the   AOGCC   for  Reservoir   Depletion                                                                   
     Studies.     The  carry  forward  is  estimated   to  be                                                                   
     $1,450.6.   No action was  taken by the  Subcommittee in                                                                   
     anticipation of  a policy discussion by the  full Senate                                                                   
     Finance   Committee  when   it  considers   supplemental                                                                   
     spending legislation.                                                                                                      
                                                                                                                                
9:17:49 AM                                                                                                                    
                                                                                                                                
     Senator Olson                                                                                                              
     GOVERNOR'S AMENDMENTS:                                                                                                     
     The   Subcommittee   approves    the   governor-proposed                                                                   
     decrement  of  -$7.5 GF  in  Centralized  Administrative                                                                   
     Services   /   Personnel   for   the   State   officers'                                                                   
     Compensation Commission.                                                                                                   
                                                                                                                                
     The   Subcommittee   approves    the   governor-proposed                                                                   
     increment  of  $1,000.0 GF  in  the Legal  and  Advocacy                                                                   
     Services   /  Public  Defender   Agency  for   projected                                                                   
     caseload increases.                                                                                                        
                                                                                                                                
Co-Chair  Stedman   MOVED  to   ADOPT  FY10  Senate   Finance                                                                   
Committee  Operating Subcommittee  Report for the  Department                                                                   
of   Administration    as   presented   with    corresponding                                                                   
legislative  finance reports.  There being  NO OBJECTION,  it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
9:18:04 AM                                                                                                                    
                                                                                                                                
DENISE LICCIOLI, STAFF, SENATOR DONALD OLSON, presented the                                                                     
Senate Subcommittee Committee Recommendation for the                                                                            
Department of Health and Social Services (DHSS).                                                                                
                                                                                                                                
     HEALTH & SOCIAL SERVICES SUB-COMMITTEE                                                                                     
                                                                                                                                
     Fund Source                                                                                                                
                                                                                                                                
               09 Mgt Plan       Gov Amd     Sen          Sub                                                                   
          Difference                                                                                                            
     GF        $  903,587.9    $   866,345.5 $   848,593.5                                                                      
          $(17,752.0)    (2.0) %                                                                                                
     Federal         1,008,215.0      1,057,652.1                                                                               
     1,057,081.1       (    571.0) (0.1) %                                                                                      
     Other              171,864.8      159,584.6                                                                                
     160,784.6      1,200.0     0.8  %                                                                                          
               ----------------     ----------------    ----                                                                    
     ------------                                                                                                               
     Total          $2,083,667.7    $2,083,582.2                                                                                
          $2,066,459.2                                                                                                          
                                                                                                                                
     Position Summary                                                                                                           
                                                                                                                                
               09 CC           Gov Amd   Sen Sub                                                                                
     PFT        3,436             3,465       3,455                                                                             
     PPT             98                95          95                                                                           
     Temp          136               111    111                                                                                 
                ------            -------     -------                                                                           
     Total           3,670             3,671       3,661                                                                        
                                                                                                                                
     FY    2010   Senate    Finance   Sub-Committee    Budget                                                                   
     Recommendations for H&SS /March 19, 2009                                                                                   
                                                                                                                                
     Personnel                                                                                                                  
                                                                                                                                
     The  authorized position  count for  the department  was                                                                   
     reviewed; the  overall number of positions  stayed about                                                                   
     the same,  although we  did not approve  all of  the new                                                                   
     PFT positions.                                                                                                             
                                                                                                                                
9:19:27 AM                                                                                                                    
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The  GF in  this budget  was reduced  from the  previous                                                                   
     year by  $54.8 million, largely  due to Federal  Medical                                                                   
     Assistance  Percentage (FMAP)  changes  which result  in                                                                   
     the federal  share of  expenditures increasing,  and the                                                                   
     State's  share decreasing.   Although funding  increased                                                                   
     $13.7 million  in total, including the FMAP  changes and                                                                   
     other adjustments  to Medicaid  in this budget  request,                                                                   
     the GF  portion went  down $82.6  million.  In  addition                                                                   
     to  a reduction  of GF  for Medicaid,  the Adult  Public                                                                   
     Assistance  Program  and  the  Senior  Benefits  Payment                                                                   
     Program  were  each  reduced  $500  thousand  due  to  a                                                                   
     decline  in   the  number  of  people   receiving  these                                                                   
     services compared to what was previously projected.                                                                        
                                                                                                                                
9:20:34 AM                                                                                                                    
                                                                                                                                
     This  is   fortunate  since   it  did  allow   for  some                                                                   
     necessary  increases in  other areas,  which we  believe                                                                   
     to be  basic and  integral to  the services provided  by                                                                   
     this budget,  and consider them to be essential  to what                                                                   
     government does  for its citizens.   And so  this budget                                                                   
     proposal  funds basic support  needed for children,  the                                                                   
     frail  and   other  Alaskans  who  cannot   provide  for                                                                   
     themselves.     Notable  increases  that   are  approved                                                                   
     include:                                                                                                                   
                                                                                                                                
     Approximately  $6.2   million  of  GF,  and   nearly  $2                                                                   
     million  in Mental  Health  Trust Funds,  was added  for                                                                   
     various  services provided  to  our children,  including                                                                   
     front  line  Social  Workers,  Child  Advocacy  Centers,                                                                   
     autism,  early  intervention  and infant  learning,  and                                                                   
     other  services that  are  part of  the  Bring the  Kids                                                                   
     Home efforts.                                                                                                              
                                                                                                                                
9:21:24 AM                                                                                                                    
                                                                                                                                
     $500  million  for  the   Juvenile  Justice  Facilities,                                                                   
     mostly to increase  front line staffing but  also to add                                                                   
     a  nurse   and  maintenance  position,  and   funds  for                                                                   
     additional operating costs.                                                                                                
                                                                                                                                
9:23:16 AM                                                                                                                    
                                                                                                                                
Ms.  Liccioli   informed  that  the  proposed   budget  funds                                                                   
essential services  as program costs escalate  and population                                                                   
groups  increase.  She  stressed   concern  about  continuing                                                                   
changes  to the  FMAP  rate that  affect  Medicaid and  other                                                                   
programs  within  the  department.  This  year,  Alaska  will                                                                   
spend less  state and  more federal  money, but the  opposite                                                                   
is often  true. A small  change in the  budget can  result in                                                                   
additional state expense.                                                                                                       
                                                                                                                                
Senator  Ellis expressed  appreciation  for the  Subcommittee                                                                   
chair  and  staff for  their  willingness  to work  with  all                                                                   
legislative  members.  He  reminded   the  committee  of  the                                                                   
incredible stress  placed on non-profit organizations  due to                                                                   
the downturn in the economy.                                                                                                    
                                                                                                                                
Co-Chair  Stedman   MOVED  to   ADOPT  FY10  Senate   Finance                                                                   
Operating Subcommittee  Report for  the Department  of Health                                                                   
and Social  Services (DHSS)  as presented with  corresponding                                                                   
legislative  finance reports.  There being  NO OBJECTION,  it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
9:25:34 AM                                                                                                                    
                                                                                                                                
Ms.    Liccioli    presented    the    Senate    Subcommittee                                                                   
Recommendation for the Department of Public Safety.                                                                             
                                                                                                                                
9:26:56 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     DEPARTMENT OF PUBLIC SAFETY                                                                                                
                                                                                                                                
     Fund Source                                                                                                              
                                                                                                                                
                                                                                                                                
               09 Mgt Plan          Gov Amd   Sen         Sub                                                                   
          Difference                                                                                                            
     GF          $116,401.8         $128,945.0                                                                                  
          $125,095.1     $(3,849.9)      (  3.0)%                                                                               
     Federal              15,257.6           15,191.2                                                                           
     11,540.0   (3,651.2)      (24.0)%                                                                                          
     Other                23,135.9           29,777.2                                                                           
     30,542.9       765.7         2.6 %                                                                                         
               ----------------          -------------- ----                                                                    
     ----------                                                                                                                 
     Total            $154,795.3         $173,913.4                                                                             
          $167,178.0                                                                                                            
                                                                                                                                
     Position Summary                                                                                                         
                                                                                                                                
               09 CC           Gov Amd   Sen Sub                                                                                
     PFT         836                857            844                                                                          
     PPT           17                 16             16                                                                         
     Temp          12                 14             14                                                                         
                ------             ------             ------                                                                    
     Total            865                887            874                                                                     
                                                                                                                                
                                                                                                                                
     Personnel                                                                                                                
                                                                                                                                
     Reviewed   the  authorized   position   count  for   the                                                                   
     department.   The Governor  requested 20 new  positions.                                                                   
     The sub-committee authorizes 7 of those.                                                                                   
                                                                                                                                
     Budget Action                                                                                                            
                                                                                                                                
     The  sub-committee   was  reopened  to  allow   for  one                                                                   
     additional  transaction  to occur.    After the  initial                                                                   
     close-out,  we discovered  that additional PFD  Criminal                                                                   
     Receipts  would be  available.   Thus the  sub-committee                                                                   
     was reopened  and all of the sub-committee  members were                                                                   
     polled  in addition  to the department  to determine  if                                                                   
     the  budget  should  be  changed;  no  one  objected  to                                                                   
     taking  this action.    Thus,  there was  a fund  source                                                                   
     adjustment  done  to  remove   $881.9  of  GF  from  the                                                                   
     Council   on  Domestic  Violence   and  Sexual   Assault                                                                   
     (CDVSA)  and to  replace it  with a like  amount of  PFD                                                                   
     Criminal  Receipts.   Legislative  Finance  has  updated                                                                   
     all  the  reports  and,   with  the  exception  of  this                                                                   
     paragraph and  the one describing changes  to the CDVSA,                                                                   
     the remainder of this memo is identical to the one                                                                         
     used at close-out.                                                                                                         
                                                                                                                                
        · Held 4 public meetings with the department to                                                                         
             discuss and explain the budget;                                                                                    
        · Adopted the FY10 Adjusted Base; and                                                                                   
        · Reviewed each of the increments and decrements                                                                        
             submitted by the Governor, including                                                                               
             amendments.                                                                                                        
                                                                                                                                
9:28:09 AM                                                                                                                    
                                                                                                                                
   The Governor  made  public  safety  a  priority  and  this                                                                   
   budget is one of the few with some  significant increases.                                                                   
   The Senate Finance  Sub-Committee  approved most  of those                                                                   
   increases.  Notable increases to GF that are approved:                                                                       
                                                                                                                                
     · $3,343.9 of the Governor's request for $4,165.1 to                                                                       
        fully fund commissioned officers is approved.  These                                                                    
        increases are in multiple components of the                                                                             
        department.  They are needed due to the success with                                                                    
        recruitment and the resulting low vacancy rate that                                                                     
        the department has experienced, causing them to be                                                                      
        short of personal services.                                                                                             
     · $2,470.3 is approved for the VPSO program to                                                                             
        annualize the funding for positions authorized last                                                                     
        year, to add 15 additional positions this year, and                                                                     
        for COLA and merit increases.  This follows the                                                                         
        recommendations of the Senate VPSO Task Force from                                                                      
        2008.  The department is already seeing success with                                                                    
        the implementation of the first of those                                                                                
        recommendations, in a similar way as with the                                                                           
        Troopers, with more applicants for VPSO positions,                                                                      
        and less turnover.  These increases are necessary if                                                                    
        they are to continue and build on this success and                                                                      
        ensure public safety for rural Alaskans as well.                                                                        
     · $1,439.5 is approved of the total $1,963.6 requested                                                                     
        by the Governor for cost increases in various                                                                           
        existing programs of the department.  This includes                                                                     
        leases, utilities, insurance, medical exams,                                                                            
        vehicles, fuel and airline costs, and supplies.                                                                         
        Most if not all of these increases are beyond the                                                                       
        control of the department and must be funded if                                                                         
        services are to continue.                                                                                               
                                                                                                                                
9:28:15 AM                                                                                                                    
                                                                                                                                
      o $287.0 is approved for other items, including                                                                           
         Anchorage prisoner transportation, Central                                                                             
             Region facilities maintenance, and DNA                                                                             
             collection kits.  $28.0 is not funded of the                                                                       
             total requested for Central Region facilities                                                                      
             maintenance.                                                                                                       
                                                                                                                                
9:28:41 AM                                                                                                                    
                                                                                                                                
   Non-GF increases were requested and with one exception,                                                                      
   all are approved.  Included in this group is:                                                                                
                                                                                                                                
     · An increase to the Council on Domestic Violence and                                                                      
        Sexual Assault (CDVSA) out of PFD Criminal Receipts                                                                     
        for $1,677.9.  The Sub-Committee also adds an                                                                           
        additional $1,381.9 of PFD Criminal Receipts since                                                                      
        additional funds are expected to be available, and                                                                      
        offsets that increase with a corresponding decrease                                                                     
        to GF.                                                                                                                  
     · Another significant requested increase in non-GF is                                                                      
        for 13 positions and $4,800.0 of CIP receipts for                                                                       
        the Bureau Highway Patrol.  The Sub-Committee                                                                           
        approves $4,102.9 for that request, but does not                                                                        
        approve an increase to positions; the department                                                                        
        should use existing positions.                                                                                          
                                                                                                                                
9:29:45 AM                                                                                                                    
                                                                                                                                
   Items which were requested but which are not funded                                                                          
   include:                                                                                                                     
                                                                                                                                
     · Essentially all of the fund source switches                                                                              
        requested to replace non-GF with GF due to salary                                                                       
        adjustments for Bargaining Unit agreements is                                                                           
        denied.  These are each relatively small amounts                                                                        
        that should be absorbed by the department.                                                                              
     · No funds for additional moves by trooper positions                                                                       
        are approved; $800.0 was requested.                                                                                     
     · The request for $3,660.2 of federal funds for CDVSA                                                                      
        is not approved since those are continuing funds                                                                        
        which will not lapse until June 30, 2010.                                                                               
                                                                                                                                
9:30:48 AM                                                                                                                    
                                                                                                                                
     The Sub-Committee also recommends language and                                                                             
     conditional funding to be included in the "language                                                                        
     section" of  the CS for  the Rural Alcohol  Interdiction                                                                   
     Team   for   $1,270.0;   and  for   Drug   and   Alcohol                                                                   
     Enforcement for $1,393.2.                                                                                                  
                                                                                                                                
     Other  changes are  shown in the  reports included  with                                                                   
     this.   It is  also our intention  to allow  Legislative                                                                   
     Finance to do technical adjustments if any are needed.                                                                     
                                                                                                                                
     Items of Concern                                                                                                         
                                                                                                                                
     The Department  is to  be commended  for its efforts  in                                                                   
     recruiting   and   retaining   trooper   positions   and                                                                   
     bringing the  vacancy rate down.   Should  those efforts                                                                   
     continue and  result in all  positions being  filled for                                                                   
     the full  twelve months,  a supplemental request  may be                                                                   
     needed   next  year   for  both   Troopers  and   VPSOs.                                                                   
     However,  even  though  the  results so  far  have  been                                                                   
     remarkable,   history  tells  us   that  it   is  highly                                                                   
     unlikely that  0% vacancy will  ever be achieved.   That                                                                   
     said,  this  budget  recommendation  funds most  of  the                                                                   
     department  requests and clearly  the majority  of those                                                                   
     increases relate  to that improvement in  recruiting and                                                                   
     retention, which we wholeheartedly support.                                                                                
                                                                                                                                
9:32:03 AM                                                                                                                    
                                                                                                                                
     Another concern  is that by replacing so much  of the GF                                                                   
     funding  for the CDVSA  with PFD  Criminal Receipts,  it                                                                   
     is expected  that a  large GF  increment will  be needed                                                                   
     in the  future to  sustain the  shelters funded  by this                                                                   
     budget  component.   For  now,  while the  receipts  are                                                                   
     available,  it makes  good sense  to use those  receipts                                                                   
     in  lieu of  GF; but  as  the PFD  amounts decrease,  so                                                                   
     will the available  PFD Criminal Receipts  and they must                                                                   
     inevitably  be  replaced   with  GF.    The  only  other                                                                   
     alternative  is  to  drastically   reduce  the  services                                                                   
     offered  throughout the  State  by the  funding in  this                                                                   
     component, and that is unacceptable.                                                                                       
                                                                                                                                
9:32:59 AM                                                                                                                    
                                                                                                                                
     Approximately $5  million in GF, in addition  to another                                                                   
     $5 million  in Mental Health Trust Funds,  was added for                                                                   
     substance   abuse  and   mental   health  programs   and                                                                   
     services.                                                                                                                  
                                                                                                                                
     $5  million  of GF  was  added  to maintain  the  Alaska                                                                   
     Heating Assistance  Program, which is important  to many                                                                   
     Alaskans who need help with their fuel bills.                                                                              
                                                                                                                                
     Finally,  $10.1 million  was added  for cost  increases.                                                                   
     $1.3  million  is  for  rate  increases  for  Subsidized                                                                   
     Adoptions   and   for  Dental   Rates   for   non-Tribal                                                                   
     providers.   $4.3 million is for grantee  cost increases                                                                   
     for  many of the  department's programs.   $1.7  million                                                                   
     is  for  cost  increases  to  various  programs  in  the                                                                   
     department  such  as  the Birth  Defects  registry,  the                                                                   
     Cancer  registry,  and  Therapeutic  Courts.    Finally,                                                                   
     $2.8  million of  this  amount is  due  to correcting  a                                                                   
     previous  error in  how the  Public  Health Nurses  were                                                                   
     charging to the Medicaid program.                                                                                          
     FY    2010   Senate    Finance   Sub-Committee    Budget                                                                   
     Recommendations for H&SS /March 19, 2009                                                                                   
                                                                                                                                
     Significant  items which were  requested, but  which are                                                                   
     not funded, include:                                                                                                       
                                                                                                                                
     The  Governor requested  $500  thousand  and 1  position                                                                   
     for   the  Health   Care  Commission   she  created   by                                                                   
     Administrative Order.                                                                                                      
                                                                                                                                
     The Governor  requested $498.4 thousand and  2 positions                                                                   
     for her health initiative, "Live Well Alaska".                                                                             
                                                                                                                                
     The  Governor requested  $3  million in  GF to  increase                                                                   
     the  child care  rate for  working  families.   However,                                                                   
     since  the Governor's  budget was  submitted, funds  for                                                                   
     Child  Care   Assistance  have  been  included   in  the                                                                   
     federal  economic stimulus budget.   The department  may                                                                   
     request  an increase next  year if  those funds  are not                                                                   
     sufficient or  at such time  as the funds are  no longer                                                                   
     available to them.                                                                                                         
                                                                                                                                
     Detail  on these  and  other changes  are  shown in  the                                                                   
     reports included with this.                                                                                                
                                                                                                                                
     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  it  can  be                                                                   
     sustained.     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.                                                                   
     This  year  we  were fortunate  because  the  FMAP  rate                                                                   
     increased, but  it can just as easily go  the other way,                                                                   
     especially  when  the  economic stimulus  funds  are  no                                                                   
     longer  available.    Even   a  small  increase  in  the                                                                   
     State's share will cost tens of millions.                                                                                  
                                                                                                                                
Co-Chair  Stedman   MOVED  to   ADOPT  FY10  Senate   Finance                                                                   
Operating Subcommittee  Report for  the Department  of Public                                                                   
Safety as  presented with  corresponding legislative  finance                                                                   
reports. There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
9:33:58 AM                                                                                                                    
                                                                                                                                
Senator Ellis presented the Senate Committee Recommendation                                                                     
for the Department of Corrections (DOC).                                                                                        
                                                                                                                                
     DEPARTMENT OF CORRECTIONS                                                                                                  
                                                                                                                                
     Fund Source:                                                                                                               
                                                                                                                                
      FY09        FY10         FY 10 Senate Difference                                                                          
                Management Governor's Subcommittee (Governor                                                                    
                Plan        Amended                    to Senate                                                                
                            Adjusted                   Sub)                                                                   
                            Base                                                                                                
 General    210,982.0   214.041.4    213,819.2     -222.2 (-                                                                    
     Funds                                             0.1%)                                                                  
     Federal    2,990.5     3,174.4      3,187.3       12.9                                                                     
     Funds                                             (0.4%)                                                                 
Other      30,560.0    31,985.1     31,977.0      -8.1     (-                                                                   
     Funds                                             0.0%)                                                                  
 Total      244,532.5   249,200.9    248,983.5     -217.4 (-                                                                    
                                                       0.1%)                                                                  
                                                                                                                                
     Personnel:                                                                                                                 
                                                                                                                                
     The  Subcommittee   reviewed  the  authorized   position                                                                   
     count  for  the  Department.    The  Governor's  amended                                                                   
     budget  proposal  requested three  new  positions.   The                                                                   
     Subcommittee is recommending three new positions.                                                                          
                                                                                                                                
                    FY09            FY10           FY 10 Senate                                                                 
 Position       Authorized      Governor's     Subcommittee                                                                   
     Summary                        Amended                                                                                     
                                    Adjusted Base                                                                               
     Permanent      1512            1513           1513                                                                       
     Full Time                                                                                                                  
     Permanent      4               3              3                                                                          
     Part Time                                                                                                                  
     Temporary      0               0              0                                                                          
     Total          1516            1516           1516                                                                       
                                                                                                                                
                                                                                                                                
9:35:31 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     Adopted the Fiscal Year 2009 Adjusted Base.                                                                                
                                                                                                                                
     Reviewed each  of the increments (9) and  decrements (0)                                                                   
     submitted by  the Governor.  Recommends the  adoption of                                                                   
     the Governor's proposal with the following exceptions:                                                                     
                                                                                                                                
     Deny Inc 302.2  GF "1/4 Year Operating  Costs for 80-bed                                                                   
     conversion  in   FY09"  to  the  Wildwood   Correctional                                                                   
     Center   allocation   of   the   Population   Management                                                                   
     appropriation.                                                                                                             
     Remove   897.7   GF   "Incomplete    Wildwood   Building                                                                   
     Conversion"  from base of  Wildwood Correctional  Center                                                                   
     allocation of the Population Management appropriation.                                                                     
                                                                                                                                
     Deny  Inc 485.3  PFD  Crim  "Costs Associated  with  Sex                                                                   
     Offender  Treatment and Polygraph  Examinations"  in the                                                                   
     Inmate  Health  Care  allocation of  the  Inmate  Health                                                                   
     Care   appropriation.     The  Subcommittee   recommends                                                                   
     approval of Inc 242.6 PFD Crim for the same purpose.                                                                       
                                                                                                                                
     Deny  Inc  500  GF  "Expand   Institutional  Out-Patient                                                                   
     Substance  Abuse  Program"  in the  Inmate  Health  Care                                                                   
     allocation  of  the Inmate  Health  Care  appropriation.                                                                   
     The  Subcommittee recommends  approval of  Inc 257.3  GF                                                                   
     and Inc 242.7 PFD Crim for the same purpose.                                                                               
                                                                                                                                
     Adopt  IncOTI  1,225.0 GF  "Secured  Detoxification  and                                                                   
     Treatment  for Involuntary  Substance Abuse  Commitment"                                                                   
     in  the Inmate  Health  Care  allocation  of the  Inmate                                                                   
     Health Care appropriation.                                                                                                 
                                                                                                                                
     Adopt  TrOut  -13,608.4  from  the  Inmate  Health  Care                                                                   
     allocation of  the Inmate Health Care  appropriation and                                                                   
     TrIn   13,608.4  to   a  new   Behavioral  Health   Care                                                                   
     allocation in the Inmate Health Care appropriation.                                                                        
                                                                                                                                
     Adopt  TrOut  -24.528.9  from  the  Inmate  Health  Care                                                                   
     allocation of  the Inmate Health Care  appropriation and                                                                   
     TrIn 24,528.9  to a new Physical Health  Care allocation                                                                   
     in the Inmate Health Care appropriation.                                                                                   
                                                                                                                                
     Amendment Action:                                                                                                          
                                                                                                                                
     Reviewed  and   recommends  the  adoption   of  the  two                                                                   
     operating  budget  amendments  (one  increment  and  one                                                                   
     decrement)  submitted by  the Governor through  February                                                                   
     29th, 2009.                                                                                                                
                                                                                                                                
9:36:20 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     Items of Concern:                                                                                                          
                                                                                                                                
     For  many years  the  expansion of  the  Yukon-Kuskokwim                                                                   
     Correctional Center  in Bethel has been  a high-priority                                                                   
     project  for the Legislature,  leading to its  inclusion                                                                   
     in  2004's Senate  Bill 65, which  authorized the  state                                                                   
     to   assist  communities   in   building  or   expanding                                                                   
     correctional  facilities.    While the  construction  of                                                                   
     the  Goose  Creek  Correctional  Center  in  the  Mat-Su                                                                   
     Valley is  underway, and  a number of smaller  expansion                                                                   
     projects  in   facilities  like  Wildwood   Correctional                                                                   
     Center   in  Kenai  have   taken  place,  YKCC   remains                                                                   
     incomplete.   The Subcommittee discussed this  issue and                                                                   
     the   lack  of  progress   over   the  years  with   the                                                                   
     Department,   and  is  committed   to  continuing   this                                                                   
     discussion  until  the  community  and  legislators  are                                                                   
     satisfied with the Department's progress in Bethel.                                                                        
                                                                                                                                
9:37:09 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     The  Governor's  amended  budget proposal  combines  all                                                                   
     behavioral  health  treatment  programs under  a  single                                                                   
     heading  in   the  Inmate  Health  Care   appropriation.                                                                   
     While the  Subcommittee understands and  appreciates the                                                                   
     need  for organizational  coherence and efficiency,  the                                                                   
     lack  of clarity on  how dollars  are spent within  this                                                                   
     appropriation  raises  questions.    The  Inmate  Health                                                                   
     Care  appropriation  currently   consists  of  just  one                                                                   
     allocation  with a  budget  of over  $37  million.   The                                                                   
     Subcommittee   is   concerned  that   unexpected   major                                                                   
     medical  events  and the  increasing  cost of  providing                                                                   
     basic  physical  health care  could  be threats  to  the                                                                   
     maintenance  of  these priority  programs  without  some                                                                   
     measure  of Legislative  control  over  the movement  of                                                                   
     funds within  the appropriation.   The Commissioner  and                                                                   
     his staff  assured the Subcommittee of  the Department's                                                                   
     commitment  to   maintaining  and  expanding   substance                                                                   
     abuse and  sex offender  treatment programs,  along with                                                                   
     their   other  behavioral   health   initiatives.     By                                                                   
     recommending  the Inmate  Health  Care appropriation  be                                                                   
     split  into two separate  allocations, the  Subcommittee                                                                   
     intends  to reinforce the  importance of these  programs                                                                   
     to  the  long-term  goals  of  reducing  recidivism  and                                                                   
     inmate population.                                                                                                         
                                                                                                                                
9:38:12 AM                                                                                                                    
                                                                                                                                
                                                                                                                                
     The    increment   for    Secure   Detoxification    and                                                                   
     Involuntary Substance  Abuse Treatment funds  the second                                                                   
     year  of a  three-year pilot  program based  out of  the                                                                   
     Salvation Army's  Clitheroe Center in Anchorage.   Under                                                                   
     existing  statute,  judges  have the  ability  to  order                                                                   
     public  inebriates who  are  a danger  to themselves  or                                                                   
     their  community  to  take  part  in  secured  substance                                                                   
     abuse  treatment  programs.   Between  state  and  local                                                                   
     police,  local   sleep-off  centers,  state   and  local                                                                   
     Health   and   Social   Services   programs,   and   the                                                                   
     Department   of  Corrections,   these  individuals   are                                                                   
     responsible  for  an  inordinate  proportion  of  public                                                                   
     spending.    This pilot  program  is a  coordinated  and                                                                   
     proactive  response to a  continuing problem,  and could                                                                   
     provide  a breakthrough in  combating the public  health                                                                   
     and  safety risks  posed by this  population.   Alaska's                                                                   
     program  is based  on the successful  result of  similar                                                                   
     programs   on  the   county  level   in  the  state   of                                                                   
     Washington.                                                                                                                
                                                                                                                                
9:38:51 AM                                                                                                                    
                                                                                                                                
     In  the last  few  years,  there have  been  significant                                                                   
     advances  in the development  of results-based  programs                                                                   
     that   can   reduce   recidivism   and  cut   costs   by                                                                   
     diminishing  the inmate population.   The Institute  for                                                                   
     Social  and  Economic  Research   at  UAA  and  the  Pew                                                                   
     Foundation  for  the  States have  released  reports  in                                                                   
     recent  months  detailing  Alaska's need  for  increased                                                                   
     education, job  training, and substance  abuse treatment                                                                   
     programs,  and the potential  for significant  long-term                                                                   
     cost  savings   as  a  result.    The   Subcommittee  is                                                                   
     committed  to  working  with the  Commissioner  and  the                                                                   
     Department  to  both  monitor  the  success  of  current                                                                   
     programs   to  ensure  that   they  are  providing   the                                                                   
     necessary   results,   and   investing   in   additional                                                                   
     programs   with   results   supported   by   statistical                                                                   
     evidence.                                                                                                                  
                                                                                                                                
Co-Chair  Stedman   MOVED  to   ADOPT  FY10  Senate   Finance                                                                   
Operating   Subcommittee  Report   for   the  Department   of                                                                   
Corrections  as  presented  with   corresponding  legislative                                                                   
finance  reports.  There  being   NO  OBJECTION,  it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
9:40:02 AM                                                                                                                    
                                                                                                                                
Senator Ellis presented the Senate Committee Recommendation                                                                     
for the Department of Environmental Conservation (DEC).                                                                         
                                                                                                                                
     DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                   
                                                                                                                                
     Fund Source:                                                                                                               
                                                                                                                                
      FY09        FY10         FY 10 Senate Difference                                                                          
                Management Governor's Subcommittee (Governor                                                                    
                Plan        Amended                    to Senate                                                                
                            Adjusted                   Sub)                                                                   
                            Base                                                                                                
General    18,891.4    19,140.5     19,144.2      3.7 (0.0%)                                                                  
     Funds                                                                                                                      
     Federal    21,396.8    21.497.6     21,497.6      0 (0%)                                                                 
     Funds                                                                                                                      
     Other      33,086.8    33,496.9     33,516.9      20.0                                                                     
     Funds                                             (0.0%)                                                                 
     Total      73,375.0    74,135.0     74,158.7      23.7                                                                   
                                                       (0.0%)                                                                 
                                                                                                                                
     Personnel:                                                                                                                 
                                                                                                                                
     The  Subcommittee   reviewed  the  authorized   position                                                                   
     count  for  the  Department.    The  Governor's  amended                                                                   
     budget  proposal  requested   one  new  position.    The                                                                   
     Subcommittee is recommending three new positions.                                                                          
                                                                                                                                
                    FY09            FY10           FY 10 Senate                                                                 
 Position       Authorized      Governor's     Subcommittee                                                                   
     Summary                        Amended                                                                                     
                                    Adjusted Base                                                                               
     Permanent      529             532            534                                                                        
     Full Time                                                                                                                  
     Permanent      1               1              1                                                                          
     Part Time                                                                                                                  
     Temporary      4               5              5                                                                          
     Total          534             538            540                                                                        
                                                                                                                                
     Budget Action:                                                                                                             
                                                                                                                                
     The   Subcommittee   held   three  meetings   with   the                                                                   
     Department and took the following actions:                                                                                 
                                                                                                                                
     Adopted the Fiscal Year 2009 Adjusted Base.                                                                                
                                                                                                                                
     Reviewed each  of the increments (2) and  decrements (2)                                                                   
     submitted by  the Governor.  Recommends the  adoption of                                                                   
     the Governor's proposal with the following exceptions:                                                                     
                                                                                                                                
     Deny   Inc   184.0  GF   "Climate   Change   Sub-Cabinet                                                                   
     Activity"   to  the  Air   Quality  allocation   of  the                                                                   
     Environmental Health Appropriation.                                                                                        
                                                                                                                                
     Adopt  Inc 187.7 GF  "Add Two  New Environmental  Health                                                                   
     Officer  Positions  and Related  Costs  for Food  Safety                                                                   
     Inspections"   to  the   Food   Safety  and   Sanitation                                                                   
     allocation of the Environmental Health appropriation.                                                                      
9:41:19 AM                                                                                                                    
                                                                                                                                
     Adopt   Inc  20.0  Cruise   Ship  "Paralytic   Shellfish                                                                   
     Poisoning   Testing"   to    the   Laboratory   Services                                                                   
     allocation of the Environmental Health appropriation.                                                                      
                                                                                                                                
                                                                                                                                
     Amendment Action:                                                                                                          
                                                                                                                                
     The   Governor   did   not   submit   operating   budget                                                                   
     amendments for DEC.                                                                                                        
                                                                                                                                
     Items of Concern:                                                                                                          
                                                                                                                                
     The Subcommittee  had considerable discussion  regarding                                                                   
     the  deficiency of  the food  safety inspection  program                                                                   
     and  the  disparity  between  the  Department's  funding                                                                   
     level  and  the expectations  of  the public  at  large.                                                                   
     Even  with the addition  of two  food safety  inspectors                                                                   
     and  related   costs  included  in   the  Subcommittee's                                                                   
     recommendation,  the Department expects it  will be able                                                                   
     to  inspect just  under 40%  of  permitted food  service                                                                   
     establishments  and processers in  FY10, up from  35% in                                                                   
     FY09.  The  federal Food and Drug  Administrations Model                                                                   
     Food  Code   recommends  a  minimum  of  one   to  three                                                                   
     inspections   each  year.      This  serious   shortfall                                                                   
     threatens  the health  and safety  of people across  the                                                                   
     state,  but  is felt  strongest  in rural  areas,  where                                                                   
     costs  drive  inspection   rates  even  lower  than  the                                                                   
     statewide average.                                                                                                         
                                                                                                                                
9:42:34 AM                                                                                                                    
                                                                                                                                
     The  growth of the  wild and  farmed shellfish  industry                                                                   
     in  Southeast  and  Southcentral   Alaska  threatens  to                                                                   
     outstrip  the  ability  of  the  Department  to  provide                                                                   
     testing,  which is necessary  to advance the  permitting                                                                   
     process that  is vital to  the continued health  of this                                                                   
     profitable   and   sustainable   fishery.     With   the                                                                   
     recommended  increment, the Department  will be  able to                                                                   
     expand testing to support new and expanded harvests.                                                                       
                                                                                                                                
9:43:02 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman   MOVED  to   ADOPT  FY10  Senate   Finance                                                                   
Operating   Subcommittee  Report   for   the  Department   of                                                                   
Environmental  Conservation as  presented with  corresponding                                                                   
legislative  finance reports.  There being  NO OBJECTION,  it                                                                   
was so ordered.                                                                                                                 
                                                                                                                                
9:43:50 AM                                                                                                                    
                                                                                                                                
Co-Chair    Stedman    presented   the    Senate    Committee                                                                   
Recommendation for the Department of Law.                                                                                       
                                                                                                                                
     DEPARTMENT OF LAW                                                                                                          
                                                                                                                                
                      09     Adj                                                                                                
         Fund Source Base        Gov Amd    Sen Sub    Difference                                                             
         General                                                                                                                
                                 $56,825.4                                                                                      
         Funds        $45,021.1             $54,309.1 $(2,516.3)                                                              
         Federal       $         $           $                                                                                  
         Funds        3,233.7    3,880.3    3,880.3    0                                                                      
                                                        $                                                                       
       Other Funds $24,715.0 $25,176.8 $25,193.1 16.3                                                                         
                                                                                                                                
         Total                   $85,235.9                                                                                    
                      $72,969.8             $83,382.5                                                                           
                                                                                                                                
                      09     Adj                                                                                                
         Positions    Base       Gov Amd    Sen Sub   Difference                                                              
         PFT               549      549      549          0                                                                   
                                                                                                                                
         PPT          7          7          7                  0                                                              
                                                                                                                                
         Temp         0          0          0                  0                                                              
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     CRIMINAL DIVISION                                                                                                          
     Approved  a  one-time  increment of  $646,000  for  U.S.                                                                   
     Department  of   Justice  federal  grants   to  continue                                                                   
     funding   attorneys  and  paralegals   to  aid   in  the                                                                   
     prosecution  of domestic violence  as well as  adult and                                                                   
     child  sexual   assault  cases.  Funding  is   split  as                                                                   
     indicated below:                                                                                                           
     Second Judicial District - $90,000                                                                                         
     Fourth Judicial District - $285,000                                                                                        
     Criminal   Appeals  &  Special   Litigation  Section   -                                                                   
     $271,600                                                                                                                   
                                                                                                                                
     Approved  an increment  of $292,400  GF for  anticipated                                                                   
     lease  cost increases  for the  Third Judicial  District                                                                   
     office  space  in  the  Whale  and  Brady  Buildings  in                                                                   
     Anchorage.                                                                                                                 
                                                                                                                                
     Within  Criminal  Justice  Litigation, approved  a  one-                                                                   
     time  increment  of  $12,500   in  Mental  Health  Trust                                                                   
     Receipts  to  provide Disability  Justice  training  for                                                                   
     prosecutors  to  allow  them to  better  understand  and                                                                   
     more  efficiently handle  cases  involving persons  with                                                                   
     mental health disorders or cognitive impairments.                                                                          
                                                                                                                                
     CIVIL DIVISION                                                                                                             
     Approved an  increment of $398,800 (50% GF  & 50% Inter-                                                                   
     agency  Receipts) for anticipated  lease cost  increases                                                                   
     for the  Deputy Attorney  General's office space  in the                                                                   
     Whale and Brady Buildings in Anchorage.                                                                                    
                                                                                                                                
     Approved  a one-time  increment of  $165,000 in  Tobacco                                                                   
     Education  & Cessation Funds  for the Commercial  & Fair                                                                   
     Business group  to continue  work on resolving  a Master                                                                   
     Settlement dispute  between the State of  Alaska and the                                                                   
     tobacco companies.                                                                                                         
                                                                                                                                
     Denied  a  fund  source  change  from  Oil  &  Hazardous                                                                   
     Response   Funds    to   General   Funds    related   to                                                                   
     unrealizable  salary  adjustments in  the  Environmental                                                                   
     Law group.                                                                                                                 
                                                                                                                                
9:45:15 AM                                                                                                                    
                                                                                                                                
     Approved  a  one-time  increment of  $5.109  million  GF                                                                   
     within  the   Oil,  Gas  &  Mining  section   for  legal                                                                   
     services  related  to ongoing  Pt.  Thomson  litigation,                                                                   
     FERC  proceedings  relating   to  Trans-Alaska  Pipeline                                                                   
     tariffs and corporate income tax matters.                                                                                  
                                                                                                                                
     Denied a  one-time increment  of $1.9 million  GF within                                                                   
     the Oil,  Gas &  Mining section  for legal work  related                                                                   
     to Trans-Alaska Pipeline strategic reconfiguration                                                                         
                                                                                                                                
     Approved  an  $187,000  GF  increment  within  Statehood                                                                   
     Defense   for  legal  counsel   related  to   continuing                                                                   
     statehood entitlement work.                                                                                                
                                                                                                                                
     Denied  a  $600,000  one-time GF  increment  within  the                                                                   
     Statehood  Defense section for  work related  to federal                                                                   
     Endangered  Species  Act  action regarding  Polar  Bears                                                                   
     and Beluga Whales.                                                                                                         
                                                                                                                                
9:45:28 AM                                                                                                                    
                                                                                                                                
     Recommended   that   the  Department's   $150,000   FY09                                                                   
     Supplemental  request for  Endangered  Species Act  work                                                                   
     within  the Statehood  Defense section  be increased  to                                                                   
     $750,000  and given  a FY2010  lapse  date. This  should                                                                   
     provide  the section  with operating  funds through  the                                                                   
     end of FY2010.                                                                                                             
                                                                                                                                
     ADMINISTRATION & SUPPORT                                                                                                   
     Approved   an   increment   of   $101,200   in   Capital                                                                   
     Improvement  Project  Receipts  for  the  Administrative                                                                   
     Services   section  to   continue   funding  a   network                                                                   
     specialist to  operate and maintain the  Case Management                                                                   
     System.                                                                                                                    
                                                                                                                                
9:45:51 AM                                                                                                                    
                                                                                                                                
     BP CORROSION                                                                                                               
     Approved  a one-time  increment  of $3.5  million GF  to                                                                   
     continue   the  pursuit   of  claims   against  BP   for                                                                   
     penalties  and   lost  revenues  related  to   the  2006                                                                   
     Prudhoe   Bay   pipeline   corrosion   and   maintenance                                                                   
     problems   which  resulted  in   spills  and   lost  oil                                                                   
     production.                                                                                                                
                                                                                                                                
Co-Chair Stedman noted a lack of change within the position                                                                     
count.                                                                                                                          
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for the  Department                                                                   
of Law  as presented with  corresponding legislative  finance                                                                   
reports. There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
9:46:59 AM                                                                                                                    
                                                                                                                                
Co-Chair    Stedman    presented   the    Senate    Committee                                                                   
Recommendation for the Department of Revenue (DOR).                                                                             
                                                                                                                                
     DEPARTMENT OF REVENUE                                                                                                      
                                                                                                                                
                      09     Adj                                                                                                
         Fund Source Base         Gov Amd     Sen Sub     Difference                                                          
         General       $          $            $                                                                                
         Funds        17,118.5    20,414.8    18,164.1    $(2,250.7)                                                          
    Federal       $          $            $           $                                                                         
         Funds        37,926.1    39,588.3    39,611.0    22.7                                                                
                                                                                                                                
         Other Funds $207,072.3 $189,797.8 $191,562.7  $ 1,764.9                                                              
                                                           $(                                                                   
         Total        $262,116.9 $249,800.9 $249,337.8 463.1)                                                                 
                                                                                                                                
                      09     Adj                                                                                                
         Positions    Base       Gov Amd      Sen Sub   Difference                                                            
         PFT              867        867          866       -1                                                                
         PPT                41       41             41      0                                                                 
         Temp               17       17             17      0                                                                 
         Total            925        925          924       -1                                                                
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     TAX DIVISION                                                                                                               
     Approved  a   $50k  fund  source  change   from  Capital                                                                   
     Improvement  Project  Receipts  to  GF  to  prepare  the                                                                   
     statutorily   required   annual  Alaska   Salmon   Price                                                                   
     Report.                                                                                                                    
                                                                                                                                
     Approved  a  one-time  increment   of  $270,000  GF  for                                                                   
     contract  audit assistance.  The Governor's request  was                                                                   
     for $540,000.                                                                                                              
                                                                                                                                
     Approved  a $200,000  GF  increment to  fund the  fourth                                                                   
     master auditor  position that was authorized  during the                                                                   
     2007 ACES legislation.                                                                                                     
                                                                                                                                
     TREASURY DIVISION                                                                                                          
     Approved  $81,700 in  fund source  changes necessary  to                                                                   
     comply  with  changes  made  by  the  Alaska  Retirement                                                                   
     Management  Board  to  the   structure  of  the  Retiree                                                                   
     Health Care  Trust Fund.  The old "Retiree  Health Care"                                                                   
     designation   is  being   replaced   with  the   broader                                                                   
     designation of "Benefit System Receipts".                                                                                  
                                                                                                                                
     Approved  $420,000 in fund  source changes necessary  to                                                                   
     bring  the  Treasury  Division's  cost  allocation  plan                                                                   
     into compliance.                                                                                                           
                                                                                                                                
     Approved  a $152,000  GF increment  to recover  Treasury                                                                   
     management  costs  that under  the  new cost  allocation                                                                   
     plan, can't be allocated to unbudgeted RSAs in FY2010.                                                                     
                                                                                                                                
9:47:30 AM                                                                                                                    
                                                                                                                                
     ALASKA RETIREMENT MANAGEMENT BOARD (ARMB)                                                                                  
     Approved  $113,000 in fund  source changes necessary  to                                                                   
     comply  with  changes  made  by  the  Alaska  Retirement                                                                   
     Management  Board  to  the   structure  of  the  Retiree                                                                   
     Health Care  Trust Fund.  The old "Retiree  Health Care"                                                                   
     designation   is  being   replaced   with  the   broader                                                                   
     designation of Benefit System Receipts.                                                                                    
                                                                                                                                
     Approved  $74,600 in  fund source  changes necessary  to                                                                   
     bring  the  Treasury  Division's  cost  allocation  plan                                                                   
     into compliance.                                                                                                           
                                                                                                                                
     Approved  a $249,500  increment of  Group Health  Life &                                                                   
     Benefit  Receipts  to  fund  increased  measurement  and                                                                   
     consulting  costs  associated with  the  addition of  15                                                                   
     new   investment   options   within   the   Supplemental                                                                   
     Annuity,     Deferred    Compensation     and    Defined                                                                   
     Contribution plans.                                                                                                        
                                                                                                                                
     Approved  a $900,000  increment of  Group Health  Life &                                                                   
     Benefit   Receipts    to   cover   increased    Treasury                                                                   
     management  costs   associated  with   the  Supplemental                                                                   
     Annuity and the Deferred Compensation Plan.                                                                                
                                                                                                                                
     Approved  a $150,000  one-time  increment of  retirement                                                                   
     trust  funds  to  engage   a  contractor  to  audit  the                                                                   
     Board's performance consultant, Callan Associates.                                                                         
                                                                                                                                
9:47:48 AM                                                                                                                    
                                                                                                                                
     ARMB CUSTODY AND MANAGEMENT FEES                                                                                           
     Approved  an $8.547 mill  decrement of retirement  trust                                                                   
     funds to  reflect lower investment  manager fees  due to                                                                   
     the  decline   in  the  retirement   portfolio's  market                                                                   
     value.                                                                                                                     
                                                                                                                                
9:48:26 AM                                                                                                                    
                                                                                                                                
     PERMANENT FUND DIVIDEND DIVISION                                                                                           
     Approved   a  $101,000  increment   of  Permanent   Fund                                                                   
     Dividend funds  to cover cost increases  associated with                                                                   
     an increased number of applicants and public inquires.                                                                     
                                                                                                                                
     CHILD SUPPORT SERVICES DIVISION                                                                                            
     Denied a  $1.9 million fund  source change  from Receipt                                                                   
     Supported  Services  to GF  to increase  state  matching                                                                   
     funds.  The  Department  testified  that  they  wouldn't                                                                   
     need  this  change after  all  due  to relief  that  was                                                                   
     anticipated   in  the  federal   stimulus  bill   -  the                                                                   
     American Recovery and Reinvestment Act (ARRA).                                                                             
                                                                                                                                
Co-Chair  Stedman commented  that the portion  of the  report                                                                   
concerning  child  support was  not  in the  bill  as it  was                                                                   
presented to  the finance committee,  meaning that  the state                                                                   
requires  an additional  $400  thousand in  general funds  if                                                                   
the $612 thousand  of federal stimulus money  is accepted. He                                                                   
encouraged committee  members to  realize the issue  requires                                                                   
a solution.                                                                                                                     
                                                                                                                                
9:49:23 AM                                                                                                                    
                                                                                                                                
     ADMINISTRATIVE & SUPPORT                                                                                                   
     Denied  $22,700   in  fund  source  changes   from  CSSD                                                                   
     receipts  to  General  Funds   related  to  unrealizable                                                                   
     salary  adjustments  in the  Commissioner's  Office  and                                                                   
     the Administrative Services group.                                                                                         
                                                                                                                                
     Accepted   the  House  recommendation   to  delete   the                                                                   
     special assistant  to the commissioner  position. ($46.4                                                                   
     GF/$72.6 Inter Agency Receipts)                                                                                            
                                                                                                                                
     MENTAL HEALTH TRUST OPERATIONS                                                                                             
     Approved $2.65  mill in Mental Health Trust  Receipts to                                                                   
     fund  the Board  of Trustees  approved FY2010  operating                                                                   
     plan.  This  is  a  $150,400   increase  over  the  FY09                                                                   
     management plan.                                                                                                           
                                                                                                                                
     LONG TERM CARE OMBUDSMAN'S OFFICE                                                                                          
     Denied an  $11,600 fund source change  from Inter-Agency                                                                   
     Receipts   to   GF  related   to   unrealizable   salary                                                                   
     adjustments.                                                                                                               
                                                                                                                                
     ALASKA HOUSING FINANCE OPERATIONS                                                                                          
     Approved   a   $674,300    fund   source   change   from                                                                   
     Corporation  Receipts to  Federal Receipts  in order  to                                                                   
     maximize  available  federal  Dept  of Housing  &  Urban                                                                   
     Development funding.                                                                                                       
                                                                                                                                
     Approved a  $959,700 increment in Fed Receipts  to cover                                                                   
     increased utility costs from rate increases.                                                                               
                                                                                                                                
     Approved   a   $254,400   increment   ($50.9   Fed/$80.5                                                                   
     CIP/$123.0  AHFC  Receipts)  for costs  associated  with                                                                   
     increased business activity.                                                                                               
                                                                                                                                
9:49:59 AM                                                                                                                    
                                                                                                                                
     ALASKA PERMANENT FUND CORP OPERATIONS                                                                                      
     Denied a  $74,100 increment  in Perm Fund  Corp Receipts                                                                   
     for increased travel.                                                                                                      
                                                                                                                                
     APFC CUSTODY AND MANGEMENT FEES                                                                                            
     Approved  a  $10.0  mill  decrement in  Perm  Fund  Corp                                                                   
     Receipts  to reflect lower  investment manager  fees due                                                                   
     to  the decline  in  the retirement  portfolio's  market                                                                   
     value.                                                                                                                     
                                                                                                                                
Co-Chair Stedman stated that next year's report will                                                                            
include increments on management fees.                                                                                          
                                                                                                                                
Co-Chair  Stedman MOVED  to ADOPT  the FY  10 Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for the  Department                                                                   
of Revenue  with corresponding  legislative finance  reports.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
9:51:07 AM                                                                                                                    
                                                                                                                                
Co-Chair    Stedman    presented   the    Senate    Committee                                                                   
Recommendation for Department of Transportation and Public                                                                      
Facilities (DOT/PF).                                                                                                            
                                                                                                                                
     DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES                                                                           
                                                                                                                                
                      09 Adj                                                                                                    
         Fund Source Base         Gov Amd     Sen Sub     Difference                                                          
    General                  $                        $                                                                         
         Funds        $205,345.1  221,616.8  $230,238.5  8,621.7                                                              
    Federal       $          $            $           $                                                                         
         Funds        3,996.1   3,987.0       3,988.2     1.2                                                                 
                                  $                        $                                                                    
         Other Funds $295,741.6 293,057.2     $296,571.2 3,514.0                                                              
                                  $                        $                                                                    
         Total        $505,083.0 518,661.0    $530,797.9 12,136.9                                                             
                                                                                                                                
                      09 Adj                                                                                                    
         Positions    Base       Gov Amd      Sen Sub   Difference                                                            
                                                                                                                                
         PFT              3,200     3,202     3,202           0                                                               
                                                                                                                                
         PPT          438               444 436              -8                                                               
                                                                                                                                
         Temp                           199                   0                                                               
                      199                     199                                                                               
                                                                                                                                
         Total            3,837     3,845     3,837          -8                                                               
                                                                                                                                
     BUDGET HIGHLIGHTS:                                                                                                         
                                                                                                                                
     The subcommittee approved $4.033 million GF for salary                                                                     
     and benefit adjustments for the recently concluded                                                                         
     Alaska Marine Highway System bargaining agreements:                                                                        
                                                                                                                                
        · $2.320 mill - Inlandboatman's Union of the                                                                            
          Pacific (IBU)                                                                                                         
        · $0.924 mill - Master, Mates & Pilots (MMP)                                                                            
        · $0.789 mill - Marine Engineers Beneficial                                                                             
          Association (MEBA)                                                                                                    
                                                                                                                                
     The subcommittee approved $12.7 mill in additional                                                                         
     funding for facilities, highway and aviation                                                                               
     maintenance statewide. This will allow the regions to                                                                      
     provide a higher level of service in recognition of                                                                        
     lost purchasing power over the past several years.                                                                         
                                                                                                                                
        · $6.239 mill - Northern Region                                                                                         
        · $4.816 mill - Central Region                                                                                          
        · $1.667 mill - Southeast Region                                                                                        
                                                                                                                                
9:52:21 AM                                                                                                                    
                                                                                                                                
     Specific Budget Action                                                                                                     
                                                                                                                                
     The Subcommittee held four meetings with the                                                                               
     Department and accepted the Governor's appended budget                                                                     
     transactions with the following exceptions:                                                                                
                                                                                                                                
                                                                                                                                
     AGENCY WIDE                                                                                                                
        · Denied 29 separate transactions requested agency-                                                                     
          wide to charge $1.015 million in unrealizable                                                                         
     salary adjustments to the General Fund from other                                                                          
          funding sources.                                                                                                      
                                                                                                                                
                                                                                                                                
     CENTRAL REGION FACILITIES                                                                                                  
        · Added a $54,800 GF increment to bring equipment,                                                                      
          utilities, facilities maintenance and repair                                                                          
          funding authority up to FY09 spending levels.                                                                         
                                                                                                                                
        · Added a $496,400 GF operational increment to                                                                          
          allow the region to provide a higher level of                                                                         
          service in recognition of lost purchasing power                                                                       
          over the past several years.                                                                                          
                                                                                                                                
                                                                                                                                
     NORTHERN REGION FACILITIES                                                                                                 
        · Denied a $141,200 GF increment for janitorial                                                                         
      contract cost increases at various facilities in                                                                          
          the Northern Region to include Tok, Delta                                                                             
          Junction and Fairbanks.                                                                                               
                                                                                                                                
        · Added an $116,700 GF increment to bring                                                                               
      equipment, utilities, facilities maintenance and                                                                          
          repair funding authority up to FY09 spending                                                                          
          levels.                                                                                                               
                                                                                                                                
        · Added a $709,900 GF operational increment to                                                                          
          allow the region to provide a higher level of                                                                         
      service in recognition of lost purchasing power                                                                           
          over the past several years.                                                                                          
                                                                                                                                
                                                                                                                                
     SOUTHEAST REGION FACILITIES                                                                                                
        · Added a $104,500 GF operational increment to                                                                          
          allow the region to provide a higher level of                                                                         
      service in recognition of lost purchasing power                                                                           
          over the past several years.                                                                                          
                                                                                                                                
     9:53:02 AM                                                                                                               
                                                                                                                                
   CENTRAL REGION HIGHWAYS AND AVIATION                                                                                         
     · Approved a $200,000 GF increment for fuel and                                                                            
    equipment operational costs related to sidewalk snow                                                                        
        removal in Anchorage. The Governor's original                                                                           
        request included an additional $300,000 in                                                                              
        associated personal services that was denied.                                                                           
                                                                                                                                
     · Denied an $116,300 GF increment for anticipated                                                                          
        street sweeping contract cost increases in the                                                                          
        region.                                                                                                                 
                                                                                                                                
     · Added a $1.618 mill GF increment to bring equipment,                                                                     
    utilities, facilities maintenance and repair funding                                                                        
        authority up to FY09 spending levels.                                                                                   
                                                                                                                                
     · Added a $2.647 mill GF operational increment to                                                                          
        allow the region to provide a higher level of                                                                           
    service in recognition of lost purchasing power over                                                                        
        the past several years.                                                                                                 
                                                                                                                                
                                                                                                                                
   NORTHERN REGION HIGHWAYS AND AVIATION                                                                                        
     · Added a $554,000 GF increment to bring equipment,                                                                        
    utilities, facilities maintenance and repair funding                                                                        
        authority up to FY09 spending levels.                                                                                   
                                                                                                                                
     · Added a $4.858 mill GF operational increment to                                                                          
        allow the region to provide a higher level of                                                                           
        service in recognition of lost purchasing power over                                                                    
        the past several years.                                                                                                 
                                                                                                                                
                                                                                                                                
   SOUTHEAST REGION HIGHWAYS AND AVIATION                                                                                       
     · Approved a $20,000 GF increment for fuel and                                                                             
        equipment operational costs related to sidewalk snow                                                                    
        removal in Juneau. The Governor's original request                                                                      
        included an additional $27,100 in associated                                                                            
        personal services that was denied.                                                                                      
                                                                                                                                
     · Added a $378,500 GF increment to bring equipment,                                                                        
        utilities, facilities maintenance and repair funding                                                                    
        authority up to FY09 spending levels.                                                                                   
                                                                                                                                
     · Added a $1.184 mill GF operational increment to                                                                          
        allow the region to provide a higher level of                                                                           
        service in recognition of lost purchasing power over                                                                    
        the past several years.                                                                                                 
                                                                                                                                
                                                                                                                                
   WHITTER ACCESS & TUNNEL                                                                                                      
     · Denied a $2.0 mill fund source change from Capital                                                                       
        Improvement Project Receipts to Cruiseship Gambling                                                                     
        Tax Receipts (GF) for the maintenance and operations                                                                    
        of the Whittier Tunnel. CIP Receipts are still an                                                                       
        appropriate fund source for this item                                                                                   
                                                                                                                                
     · Approved a $500,000 increment of Regional Cruise                                                                         
        ship Impact Fund Receipts to extend the operating                                                                       
        hours of the Whittier Tunnel during the summer                                                                          
        tourism season. The Governor's original request                                                                         
        proposed using Cruise ship Gambling Tax Receipts                                                                        
        (GF) instead.                                                                                                           
                                                                                                                                
9:53:49 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman stated that DOT has come in higher                                                                             
(approximately $10 million) than requested by the governor.                                                                     
The increases are in the area of maintenance and the                                                                            
chairman felt that there is a need to increase DOT's                                                                            
presence in all regions of the state to address maintenance                                                                     
of streets and roads.                                                                                                           
                                                                                                                                
      Positions    09 CC    Amd.         Sub                                                                                    
      PFT          915      910          910                                                                                    
      PPT          767      767          767            0                                                                       
                                                                                                                                
      Temp         58       62           62                                                                                     
     Restored a portion of one-time funding for pinniped                                                                        
     research related to the E.S.A. $930.0 CIP Receipts                                                                         
                                                                                                                                
     Reduced funding to Public Shooting Ranges in the                                                                           
     Hunter Education Division. -$114.1 GF (F/G)                                                                                
                                                                                                                                
     Funded two existing Habitat Biologist positions via                                                                        
     RSAs with DNR for Oil & Gas pre-application work.                                                                          
     $180.0 I/A Receipts                                                                                                        
                                                                                                                                
9:56:50 AM                                                                                                                    
                                                                                                                                
Mr.  Grussendorf read  the intent  language  relating to  the                                                                   
fish  and  game  board  advisory   committees.  The  language                                                                   
informed that  meetings held by  the board of  fisheries with                                                                   
a primary  topic or proposal  concerning a regional  area are                                                                   
held in that regional area.                                                                                                     
                                                                                                                                
Co-Chair  Hoffman added  that  discussion on  the Bering  Sea                                                                   
crab  resumed,  although  he  alleged  that  the  item  is  a                                                                   
federal responsibility requiring further discussion.                                                                            
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Operating  Subcommittee  Report for  the  Department of  Fish                                                                   
and  Game   as  presented   with  corresponding   legislative                                                                   
finance  reports.  There  being   NO  OBJECTION,  it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
9:58:20 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  informed that the members of  the Office of                                                                   
the  Governor  subcommittee included  himself,  Senator  Gary                                                                   
Stevens, and Senator Albert Kookesh.                                                                                            
                                                                                                                                
Mr. Grussendorf discussed the Subcommittee recommendations.                                                                     
                                                                                                                                
     OFFICE OF THE GOVERNOR                                                                                                     
                                                                                                                                
                   09     mgt.                                                                                                  
      Fund Source plan          FY10 Gov Amd Sen Sub       Gov to Sen                                                           
      General       $          $             $           $                                                                      
      Funds        25,381.4     22,886.5      22,485.0     -(401.5)                                                             
      Federal       $             $                $                                                                            
      Funds        184.9        187.6         187.6                                                                             
                    $             $             $                                                                               
      Other Funds                                                                                                               
              1,979.7      834.5         834.5                                                                                  
                                                                                                                                
                                                                                                                                
      Positions    09 CC        10 Gov Amd. Sen. Sub      Gov to Sen                                                            
      PFT          156          156           155         -1                                                                    
      PPT          0            0             0           0                                                                     
      Temp         46           23            23          0                                                                     
                                                                                                                                
     Budget Action:                                                                                                             
     Accepted the Governors amended proposal with the                                                                           
     following adjustments.                                                                                                     
                                                                                                                                
     Reduction of FY 09 carry forward of $350.0 in the                                                                          
     Executive Office and $50.0 in the Lt. Gov's Office.                                                                        
                                                                                                                                
     Language:                                                                                                                  
     Fund FY 2010 Branch wide fuel increase of $24,000.0                                                                        
     Branch wide fuel/utility cost reduction of ($1,000.0)                                                                      
                                                                                                                                
9:59:07 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for  the Office  of                                                                   
the  Governor  as presented  with  corresponding  legislative                                                                   
finance  reports.  There  being   NO  OBJECTION,  it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
9:59:46 AM                                                                                                                    
                                                                                                                                
Mr.    Grussendorf    presented    the    Senate    Committee                                                                   
Recommendation for the Legislature.                                                                                             
                                                                                                                                
     LEGISLATURE                                                                                                                
                                                                                                                                
                   09   mgt. 10     Gov                                                                                         
  Fund Source plan        Amd        Sen Sub    Difference                                                                      
      General         $        $           $                                                                                    
    Funds        64,248.5  65,943.2  64,962.7   $(980.5)                                                                        
      Federal                                                                                                                   
      Funds              0               0    0             0                                                                   
                           $                                                                                                    
      Other Funds 963.6       $1,142.3  $1,107.3   $(35.0)                                                                      
                                                                                                                                
                              10    Gov             Sen    to                                                                   
      Positions    09 CC      Amd.       Sen. Sub   Gov                                                                         
      PFT          246        246        246        0                                                                           
      PPT          278        280        280        0                                                                           
      Temp         0          0          0          0                                                                           
                                                                                                                                
10:00:12 AM                                                                                                                   
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     Accepted  the   Governors  amended  proposal   with  the                                                                   
     following adjustments.                                                                                                     
     The  final budget  request  for the  Legislative  Budget                                                                   
     and  Audit   Committee,  Legislative  Affairs   for  the                                                                   
     Legislative  Council were  approved  as submitted  which                                                                   
     included  non discretionary  adjustments  for wages  and                                                                   
     other contractual obligations.                                                                                             
     Approximately   $2.3   million   in   one-time   project                                                                   
     appropriations  that were  included in  the FY09  budget                                                                   
     were removed from the FY10 request.                                                                                        
     The FY10 request  was increased by the  amount estimated                                                                   
     to implement  the legislative pay adjustment  in January                                                                   
     2010                                                                                                                       
     Allows  a   one  time  only  increment   to  Legislative                                                                   
     Council account for casual labor costs.                                                                                    
                                                                                                                                
10:00:52 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Operating  Subcommittee   Reports  for  the   Legislature  as                                                                   
presented  with corresponding  legislative  finance  reports.                                                                   
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
10:01:22 AM                                                                                                                   
                                                                                                                                
Co-Chair    Hoffman    presented   the    Senate    Committee                                                                   
Recommendation for the University.                                                                                              
                                                                                                                                
     UNIVERSITY                                                                                                                 
                                                                                                                                
                   09     mgt.                                                                                                  
      Fund Source               Fy10 Gov Amd Sen Sub       Sen to Gov                                                           
                   plan                                                                                                         
      General       $          $             $           $                                                                      
      Funds        31,516.6     52,860.6      55,637.8     2,777.2                                                              
      Federal       $             $                $                                                                            
                                                                                                                                
      Funds        178.8        179.0         179.0                                                                             
                    $            $              $                                                                               
      Other Funds 1,896.2       1,336.0       1,336.0      -                                                                    
                                                                                                                                
                                                                                                                                
      Positions    09 CC        10 Gov Amd. Sen. Sub      Sen to Gov                                                            
      PFT          ?            4697          4694        -3                                                                    
      PPT          ?            222           222         0                                                                     
      Temp         0            0             0           0                                                                     
                                                                                                                                
     Changed  structure  from one  appropriation  in Gov  Amd                                                                   
     and the House to seven appropriations (matching FY09)                                                                      
                                                                                                                                
     Began by adopting Adjusted Base as a starting point                                                                        
                                                                                                                                
     Accepted  the  Total  Compensation  increases  of  $14.5                                                                   
     million  but switched  funding to  50% General Fund  and                                                                   
     50%  non-GF;  also  added   Intent  regarding  Executive                                                                   
     salary pay increases                                                                                                       
                                                                                                                                
     Reduced  University  Receipts  by  ($1,750.0)  for  non-                                                                   
     Personal  Services   Fixed  Cost  Increases   (including                                                                   
     Athletics  Travel, Academic/Research Travel,  Facilities                                                                   
     Maintenance and  Repair, and Other Fixed  Cost Increases                                                                   
     in contractual services and commodities)                                                                                   
                                                                                                                                
     Added   $1,750.0  University   Receipts   to  fund   the                                                                   
     Integrated   Sciences   Building  (ISB)   New   Facility                                                                   
     Operating  and   Maintenance  Costs  on   the  Anchorage                                                                   
     Campus;  also allowed  $500.0 GF  for the ISB,  bringing                                                                   
     the  total  funding  to   $2,250.0  to  allow  for  full                                                                   
     opening  of the  facility  for the  Fall 2009  semester;                                                                   
     also added Intent regarding the opening of the ISB                                                                         
                                                                                                                                
     Accepted  increases  for   New  Facility  Operating  and                                                                   
     Maintenance  Costs  for the  Virology  Lab in  Fairbanks                                                                   
     ($150.0 GF)  and for the  Bragaw Building  Lease ($350.0                                                                   
     GF) in Anchorage                                                                                                           
                                                                                                                                
     Added funding  for two Energy and  Cooperative Extension                                                                   
     Service Programs (One-Time Increments) as follows:                                                                         
                                                                                                                                
10:04:07 AM                                                                                                                   
                                                                                                                                
     (1)  UAF  Alaska  Center  for Energy  and  Power  (ACEP)                                                                   
     $500.0  GF, $400.0 Federal  Receipts, $918.4  University                                                                   
     Receipts, totaling $1,818.4;                                                                                               
     (2)  UAF   Cooperative  Extension  Service   and  Energy                                                                   
     Outreach  $450.0  GF, $500.0  Federal  Receipts,  $850.0                                                                   
     University Receipts, totaling $1,800.0                                                                                     
                                                                                                                                
     Funding   is  not  included   for  expansion   of  other                                                                   
     University programs                                                                                                        
                                                                                                                                
     Retained   the   same   permanent   full-time   position                                                                   
     authorization count as FY09 Conference Committee                                                                           
                                                                                                                                
     Accepted all decrements for excess receipt authority                                                                       
     proposed by the University ($48 million total)                                                                             
                                                                                                                                
     Accepted the Mental Health Trust Authority decrements                                                                      
     proposed in the Governor's Amended request ($328.5                                                                         
     MHTAAR)                                                                                                                    
                                                                                                                                
     Accepted $2.2 million GF (switched from Capital to                                                                         
     Operating     Request)      for     Graduate     Medical                                                                   
     Education/Family Practice Residency Program                                                                                
                                                                                                                                
10:04:57 AM                                                                                                                   
                                                                                                                                
Mr.  Grussendorf announced  that  the total  approved  budget                                                                   
for the  University of  $820.9 million  included an  increase                                                                   
of  $13 million  in general  funds  plus an  increase of  $10                                                                   
million of non general funds over FY09.                                                                                         
                                                                                                                                
Co-Chair  Hoffman   inquired  about  tuition   increases.  He                                                                   
reminded that  the subcommittee  made adjustments to  the $48                                                                   
million   of  University   receipts   deemed   unrecoverable,                                                                   
resulting in $16.1  million rescinded by the  legislature. He                                                                   
asked about the  accuracy of the amounts  presented regarding                                                                   
receipt authority.                                                                                                              
                                                                                                                                
DAVID   TEAL,   DIRECTOR,   LEGISLATIVE   FINANCE   DIVISION,                                                                   
answered that  the reduction  in receipt authority  submitted                                                                   
by  the  University   was  in  response  to   the  Office  of                                                                   
Management and Budget  (OMB) and the effort  to reduce hollow                                                                   
federal authority.  In this case, the University  requested a                                                                   
reduction in authority  by $16 million because  they were not                                                                   
generating the receipts  in their budget. The  University did                                                                   
increase   tuition.  The   budget   passed   by  the   Senate                                                                   
subcommittee  spends the same  amount of University  receipts                                                                   
as  the governor's  budget.  To the  extent  that the  budget                                                                   
request is  accurate, there  are not  hollow receipts  in the                                                                   
subcommittee's budget.                                                                                                          
                                                                                                                                
Co-Chair  Hoffman  asked  about the  $16  million  subtracted                                                                   
from receipt  authority for FY09.  The receipt  authority for                                                                   
FY09  was $358  million. The  budget presented  here is  $368                                                                   
million making the  amount of receipt authority  greater than                                                                   
that presented  by Mr.  Grussendorf. There  is an  additional                                                                   
$10 million  in receipt authority.  The university  should be                                                                   
able to  fund the Integrated  Science building as  its number                                                                   
one priority with  a request for $2.1 million  along with the                                                                   
$1.75  million included  in the  budget. He  opined that  the                                                                   
University should  accomplish their  goal with the  presented                                                                   
budget.                                                                                                                         
                                                                                                                                
10:09:10 AM                                                                                                                   
                                                                                                                                
Mr.  Teal commented  that he  did not  know the  University's                                                                   
budget  well enough  to know what  the effects  will be.  The                                                                   
subcommittee  opined that  the University  should be  able to                                                                   
fund their  number one priority.  The subcommittee  spends no                                                                   
more  receipt authority  than  requested  by the  University.                                                                   
The  University  may move  money  from one  appropriation  to                                                                   
another.  He  opined   that  money  was  available   for  the                                                                   
University to open the Integrated Science Building.                                                                             
                                                                                                                                
Senator  Ellis   appreciated  the  work  on   the  Integrated                                                                   
Science  Building  for  the Anchorage  campus.  He  suggested                                                                   
that  he  did  not understand  the  reference  to  the  $1.75                                                                   
million   and  the   $2.2   million  in   Mr.   Grussendorf's                                                                   
presentation.  He stated  that  one budget  review unit  from                                                                   
the University  has been  divided into  seven separate  units                                                                   
causing  concern   that  receipt  authority  for   the  $1.75                                                                   
million to  open the Integrated  Sciences Building  this year                                                                   
will  mean compromising  existing programs  on the  Anchorage                                                                   
campus.  He  asked  if  the  report  denied  an  increase  in                                                                   
executive salaries.                                                                                                             
                                                                                                                                
Co-Chair Hoffman  reminded the committee about  the letter of                                                                   
intent for $450 thousand received from the university.                                                                          
                                                                                                                                
Senator Ellis  stated that there  are newly liberated  funds.                                                                   
He  noted the  UAA campus  and  their need  to meet  existing                                                                   
student  demand  and  industry's  need  to  educate  students                                                                   
interested  in   health  fields.  He  noted   a  construction                                                                   
project  with  a  proposal  before  the  SFC.  He  asked  for                                                                   
further detail regarding health training programs.                                                                              
                                                                                                                                
10:13:42 AM                                                                                                                   
                                                                                                                                
Mr.   Grussendorf  stated   that   the  low   price  of   oil                                                                   
necessitated  the  need  to  limit   expansion  for  existing                                                                   
programs.  The existing  program  is  held harmless.  If  the                                                                   
market  recovers in  the near  future,  the legislative  body                                                                   
might consider the  expansion of some programs.  He commented                                                                   
that  the subcommittee  supports  the program  as it  exists,                                                                   
but there is not  extra money to take the program  beyond the                                                                   
current  plan. Co-Chair  Hoffman asked  about the actions  of                                                                   
the other body  regarding the funding of the  health training                                                                   
programs.  Mr. Grussendorf  answered  that  the House  funded                                                                   
fifty percent of the request at approximately $1 million.                                                                       
                                                                                                                                
Senator Olson  stated that the  amount proposed by  the House                                                                   
was  $930  thousand.   He  supposed  that   midlevel  medical                                                                   
practitioners  are required  in rural  areas to serve  elders                                                                   
dependent    on    physician's     assistants    and    nurse                                                                   
practitioners.                                                                                                                  
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for the  University                                                                   
as   presented   with   corresponding   legislative   finance                                                                   
reports.                                                                                                                        
                                                                                                                                
Senator  Ellis  OBJECTED.  He  hesitated  due  to  conflicted                                                                   
feelings  and  requested  further  discussion  regarding  the                                                                   
Integrated   Sciences  Building   and  the  health   training                                                                   
programs following public testimony.                                                                                            
                                                                                                                                
Senator Ellis Removed his OBJECTION                                                                                             
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
10:17:27 AM                                                                                                                   
                                                                                                                                
JESSIE  KIEHL,  STAFF,  SENATE   DISTRICT  B,  presented  the                                                                   
Senate  Committee   Recommendation   for  the  Alaska   Court                                                                   
System.                                                                                                                         
                                                                                                                                
     ALASKA COURT SYSTEM                                                                                                        
                                                                                                                                
                   FY09   mgt.                                                                                                  
      Fund Source plan          FY10 Gov Amd Sen Sub       Sen to Gov                                                           
      General       $          $             $           $                                                                      
      Funds        84,485.8     89,627.1      86,991.0     -2,636.1                                                             
      Federal       $            $              $                                                                               
                                                           -                                                                    
      Funds        1,675.6      1,675.6       1,675.6                                                                           
                    $            $              $                                                                               
                                                             -                                                                  
      Other Funds 1,493.8       981.3         981.3                                                                             
                                                                                                                                
                                                                                                                                
                                FY10     Gov                                                                                    
      Positions    FY09 CC      Amd.          Sen. Sub    Sen to Gov                                                            
      PFT          728          754           730         -24                                                                   
      PPT          62           61            62          1                                                                     
      Temp         32           28            28          0                                                                     
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     Accepted  the  governor's   amended  proposal  with  the                                                                   
     following adjustments.                                                                                                     
                                                                                                                                
     Reduced  a request  for workstations,  office  equipment                                                                   
     and replacement furniture from $117.8 to $50.0.                                                                            
                                                                                                                                
     Reduced  a  two  transaction request  to  eliminate  the                                                                   
     vacancy  savings  requirement   for  judicial  positions                                                                   
     from $639.4 system wide to $200.0 in the trial courts.                                                                     
                                                                                                                                
     Reduced  a request  for $879.1  and  13 PFT  for the  No                                                                   
     Dark  Courtrooms   initiative  to  $250.0   and  no  new                                                                   
     positions.     The  courts  will  hire   employees  into                                                                   
     existing vacant positions.                                                                                                 
                                                                                                                                
     Reduced  a  request  for   $214.0  to  add  and  upgrade                                                                   
     positions  in the First Judicial  District to  $155.0 to                                                                   
     add  a  Juneau  magistrate  and upgrade  a  position  in                                                                   
     Haines.     The   courts   will  use   existing   vacant                                                                   
     positions.                                                                                                                 
                                                                                                                                
     Denied $436.5  for new positions  in the  Third Judicial                                                                   
     District.                                                                                                                  
                                                                                                                                
     Reduced a  request for $268.3  for Public  Building Fund                                                                   
     lease costs  and an expanded Nenana facility  to $223.3,                                                                   
     which pays only the Public Building Fund needs.                                                                            
                                                                                                                                
     Denied a request  for $147.4 to increase the  pay of pro                                                                   
     tem judges.                                                                                                                
                                                                                                                                
     Reduced  a  $75.0  request  for  staff  development  and                                                                   
     sustained systems training to $50.0.                                                                                       
                                                                                                                                
     Denied a  request for $250.0 for life-cycle  replacement                                                                   
     of computer systems.                                                                                                       
                                                                                                                                
     Denied  a request  for  $125.0 for  transcription  costs                                                                   
     for criminal proceedings.                                                                                                  
                                                                                                                                
     Denied  a  request  for $411.9  and  five  positions  in                                                                   
     administration.                                                                                                            
                                                                                                                                
     Created  a new  allocation  for therapeutic  courts  and                                                                   
     transferred funding to it.                                                                                                 
                                                                                                                                
10:19:29 AM                                                                                                                   
                                                                                                                                
     Adopted  intent  language  directing  therapeutic  court                                                                   
     funding  in the FY  11 cycle  be transferred from  other                                                                   
     agencies to the Court System budget.                                                                                       
                                                                                                                                
     Mr. Kiehl  noted that the  ///. The clerks added  in the                                                                   
     courtroom  to add information.  Make sure that  clerical                                                                   
     staff depletion  does not hold up the process.  He spoke                                                                   
     of increasing  the court system hours. With  the new and                                                                   
     efficient.    The   Alaska    judicial   council.    The                                                                   
     recommendation is lower than the governor's request.                                                                       
                                                                                                                                
10:21:31 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating  Subcommittee   Report  for  the  Alaska                                                                   
Court  System  as presented  with  corresponding  legislative                                                                   
finance  reports.  There  being   NO  OBJECTION,  it  was  so                                                                   
ordered.                                                                                                                        
                                                                                                                                
10:22:02 AM                                                                                                                   
                                                                                                                                
Mr. Kiehl presented the Senate Committee Recommendation for                                                                     
the Department of Education and Early Development (DEED).                                                                       
                                                                                                                                
                                                                                                                                
     DEPARTMENT OF EDUCATION & EARLY DEVELOPMENT                                                                                
                                                                                                                                
                   09     mgt. Fy 10 Gov                                                                                        
      Fund Source                             Sen Sub      Sen to Gov                                                           
                   plan         Amd                                                                                             
      General       $          $             $           $                                                                      
      Funds        49,381.8     55,842.2      54,492.2     -2350.0                                                              
      Federal      $             $           $                                                                                  
                                                           -                                                                    
      Funds        214,567.9    214,958.5     214,958.5                                                                         
                    $          $             $                                                                                  
                                                           -                                                                    
      Other Funds 36,744.2      35,190.2      3 5 , 1 9 0 . 2                                                                   
                                                                                                                                
                                                                                                                                
      Positions    09 CC        10 Gov Amd. Sen. Sub      Sen to Gov                                                            
      PFT          329          332           332         -                                                                     
      PPT          14           15            15          -                                                                     
      Temp         0            0             0           -                                                                     
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     Accepted  the   Governors  amended  proposal   with  the                                                                   
     following adjustments:                                                                                                     
                                                                                                                                
     Denied  a request  for $150.0  to  audit intensive  need                                                                   
     students.                                                                                                                  
                                                                                                                                
     Reduced  the  requested   increment  to  Early  Learning                                                                   
     Coordination  to serve additional  children in  the Head                                                                   
     Start   program.    The   subcommittee's  increment   is                                                                   
     $600.0.     The  subcommittee  recommends   the  Finance                                                                   
     committee  appropriate  an   additional  $1  million  to                                                                   
     serve  additional  Head Start  children  in  communities                                                                   
     with chronically  underperforming school  districts. The                                                                   
     Finance committee  may wish  to use language  similar to                                                                   
     the following:                                                                                                             
                                                                                                                                
10:23:50 AM                                                                                                                   
                                                                                                                                
     The   sum  of   $1,000,000   is  appropriated   to   the                                                                   
     Department of  Education & Early Development  to provide                                                                   
     expanded  Head Start services  in communities  served by                                                                   
     chronically underperforming school districts.                                                                              
                                                                                                                                
10:24:45 AM                                                                                                                   
                                                                                                                                
     Denied a request  for $2 million in the  formula program                                                                   
     for  a  Pre-Kindergarten  education pilot  program.  The                                                                   
     subcommittee    recommends    the   Finance    committee                                                                   
     appropriate   this  amount   with  contingent   language                                                                   
     ensuring  a  substantial  portion  of the  funds  go  to                                                                   
     serve  children  in chronically  underperforming  school                                                                   
     districts.    The  Finance  committee may  wish  to  use                                                                   
     language similar to the following:                                                                                         
                                                                                                                                
     1)  The  sum  of  $1,000,000   is  appropriated  to  the                                                                   
     Department of  Education & Early Development  for a Pre-                                                                   
     Kindergarten education pilot program.                                                                                      
     2)  The  sum  of  $1,000,000   is  appropriated  to  the                                                                   
     Department of  Education & Early Development  for a Pre-                                                                   
     Kindergarten  education pilot  program serving  children                                                                   
     in chronically underperforming school districts.                                                                           
                                                                                                                                
10:25:43 AM                                                                                                                   
                                                                                                                                
Mr. Kiehl stated that the subcommittee believed that                                                                            
underperforming children require attention at the beginning                                                                     
of the education process.                                                                                                       
                                                                                                                                
Co-Chair Hoffman  stated that one of the  caucus's priorities                                                                   
remained  completing  the  commitment to  fund  increases  in                                                                   
education regarding  the BSA intensive needs.  The governor's                                                                   
requests are included  although they have been  modified with                                                                   
an additional $800 thousand for Pre-K.                                                                                          
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for the  Department                                                                   
of  Education   and  Early  Development  as   presented  with                                                                   
corresponding  legislative finance  reports.  There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
                                                                                                                                
10:28:06 AM                                                                                                                   
                                                                                                                                
Senator    Huggins    presented    the    Senate    Committee                                                                   
Recommendation for the Department of Natural Resources.                                                                         
                                                                                                                                
     DEPARTMENT OF NATURAL                                                                                                      
                                                                                                                                
                      Senate Subcommittee Budget Comparisons                                                                  
     Operating   General    Federal    Other      Total                                                                       
          Budget      Fund                                                                                                      
          FY10         $66,436,700 $13,939,900 $44,544,800 $124,921,400                                                       
          Adjusted                                                                                                              
          Base                                                                                                                  
          FY10    Gov $71,679,200 $13,804,300 $48,144,600 $133,628,100                                                        
          Amend +                                                                                                               
          (HFS)        $73,969,700 $14,054,300 $50,286,100 $138,310,100                                                       
          Recommend                                                                                                             
          (SFS)             $73, $13,804,300 $50,013,900 $*137,660,100                                                        
          Recommend       841,900                                                                                               
          (Table No. 1)                                                                                                         
                                                                                                                                
                     Senate Subcommittee Position Summary                                                                     
                       Permanent  Full Permanent  Part Temporary                                                              
                       Time            Time                                                                                     
     FY  10   Adj       778             245          73                                                                       
          Base                                                                                                                  
     Gov Amend +        779             246          76                                                                       
     (HSF)              780             246          76                                                                       
          Recommend                                                                                                             
     (SFS)              764             245          76                                                                       
          Recommend                                                                                                             
          (Table No. 2)                                                                                                         
                                                                                                                                
     The Budget  Subcommittee recommends an  operating budget                                                                   
     that authorizes  *$137,660,100*.  While Table  1 shows a                                                                   
     number that  is $4,032,000  greater than the  Governor's                                                                   
     amended request,  it includes $3.2 million  for gas line                                                                   
     implementation,  which  was a  capital  item that  moved                                                                   
     into  the operating  budget,  and $2.5  million for  the                                                                   
     Petroleum  Systems  Integrity  Office, which  was  moved                                                                   
     from  the language  section to the  numbers section.  As                                                                   
     such, these  two items do  not represent an  increase to                                                                   
     the  budget.  Therefore, the  subcommittee's  authorized                                                                   
     operating  budget   reflects  an  actual   reduction  of                                                                   
     $1,668,000 from  the Governor's amended  budget request.                                                                   
     The subcommittee's  recommended budget also  includes 15                                                                   
     fewer permanent  full time  employees than the  Governor                                                                   
     requested.                                                                                                                 
                                                                                                                                
                   Subcommittee Recommendations                                                                               
                                                                                                                                
     The subcommittee  held six meetings with  the Department                                                                   
     and reviewed  all aspects  of the Department  of Natural                                                                   
     Resources' budget,  including a three-year  look back to                                                                   
     review the  growth in the Department's budget  from FY07                                                                   
     to the FY10 Governor's Amended proposal.                                                                                   
                                                                                                                                
                                                                                                                                
     The subcommittee took the following actions:                                                                               
                                                                                                                                
        1. Adopted the FY10 Adjusted Base.                                                                                      
                                                                                                                                
     2. Reviewed the increments, decrements, and budget                                                                         
          amendments proposed by the Governor.                                                                                  
                                                                                                                                
    3. Reviewed and discussed the significant issues as                                                                         
          outlined   in  the  Legislative   Finance  Division                                                                   
          Fiscal   Analyst's  Overview   of  the   Governor's                                                                   
          request,  i.e.,  oil  and  gas  initiatives;  North                                                                   
          Latitude   Plant   Material    Center;   Geological                                                                   
          Development,    Mineral    Survey    and    Volcano                                                                   
          Observatory;   statehood   entitlement   transfers;                                                                   
          fire  suppression   preparedness;  and   the  Guide                                                                   
          Service Initiative.                                                                                                   
                                                                                                                                
     4. Reviewed the increments, decrements, and budget                                                                         
          amendments   recommended  by   the  House   Finance                                                                   
          Subcommittee and passed by the House.                                                                                 
                                                                                                                                
     5. Adopted the Governor's proposed amended budget                                                                          
          with the following exceptions:                                                                                        
                                                                                                                                
          ·  Funded Oil  and Gas  contract auditors  ($200.0)                                                                   
             and outside  legal  ($500.0)  positions as  one-                                                                   
             time items (OTI).                                                                                                  
                                                                                                                                
          ·   Reduced   the   Petroleum    System   Integrity                                                                   
        Office's (PSIO) budget request by $261,500.                                                                             
                                                                                                                                
          ·  Denied  the   budget   request   for  a   Grants                                                                   
             Administrator position  and  reduced $64,000  in                                                                   
             CIP funding  in  the  Alaska Coastal  and  Ocean                                                                   
             Management component.                                                                                              
                                                                                                                                
          ·  Funded the  Guide Services  Initiative, Phase  1                                                                   
             Continued, as a one-time item (OTI).                                                                               
                                                                                                                                
          ·  Denied  the  budget   request  for   a  seasonal                                                                   
             position for  the  Chilkoot  River Bear  Viewing                                                                   
             Area and $55,000  in General Funds in  the Parks                                                                   
             Management component.                                                                                              
                                                                                                                                
          ·  Denied the budget  request for authorization  to                                                                   
             utilize $510,000 in  CIP funds for  positions in                                                                   
             the Parks and Recreation Access component.                                                                         
                                                                                                                                
          ·  Approved an  unallocated  reduction of  $109,100                                                                   
             in General Funds  in the Personal  Services line                                                                   
             item.                                                                                                              
                                                                                                                                
          ·  Approved   an  unallocated   reduction   of   10                                                                   
             positions from the Department.                                                                                     
                                                                                                                                
          ·  Noted  $3.2  million   in  the  Governor's   Gas                                                                   
             Pipeline  Implementation  component  reflects  a                                                                   
             capital project that was moved  to the operating                                                                   
             budget  and,  as such,  does  not  increase  the                                                                   
             budget.                                                                                                            
                                                                                                                                
          ·  Noted that  the  $2.5  million increase  in  the                                                                   
             Pipeline   Coordinator   was  moved   from   the                                                                   
             language section to the numbers  section and, as                                                                   
             such, does not increase the budget.                                                                                
                                                                                                                                
          · Recommended that the full Senate review the                                                                         
             $2.7 million lapse extension for AGIA                                                                              
             implementation when it is included in the FY09                                                                     
             Supplemental Bill.                                                                                                 
                                                                                                                                
      · Recommended changing the new component in the                                                                           
             budget entitled "State Coordinator - Gas                                                                           
             Pipeline" to "Gas Pipeline Implementation" and                                                                     
             to replace all references of the former term                                                                       
             with the latter.                                                                                                   
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance                                                                         
Committee Operating Subcommittee Report for the Department                                                                      
of Natural Resources as presented with corresponding                                                                            
legislative finance reports. There being NO OBJECTION, it                                                                       
was so ordered.                                                                                                                 
                                                                                                                                
10:30:16 AM                                                                                                                   
                                                                                                                                
Senator Huggins presented the Senate Committee                                                                                  
Recommendation for the Department of Military and Veterans                                                                      
Affairs.                                                                                                                        
                                                                                                                                
Senator Huggins  highlighted the $1.668 million  reduction in                                                                   
the subcommittee's  recommendation  reflecting fifteen  fewer                                                                   
employees  than  requested  by the  governor.  The  committee                                                                   
held  six separate  committee  meetings while  arriving at  a                                                                   
conclusion.   Ten   of   the    recommended   positions   are                                                                   
unallocated  to the  department. The  $2.7 million  extension                                                                   
of AGIA will  be in the FY09 supplemental bill.  He mentioned                                                                   
a  recommended change  in  the new  component  of the  budget                                                                   
entitled  state coordinator  to  be changed  to gas  pipeline                                                                   
implementation for consistent language.                                                                                         
                                                                                                                                
     DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                
                                                                                                                                
     Fund        09 Mgt Plan 10 Gov Amd Sen Sub         Gov    Amd                                                              
     Source                   Adj                       Adj     to                                                              
                                                        Sen Sub                                                               
     General     $11,328,400 $11,276,900 $11,276,900  0.0                                                                     
     Funds                                                                                                                      
     Federal     $21,264,600 $22,235,300 $22,235,300 0.0                                                                      
     Funds                                                                                                                      
     Other       $12,782,700 $13,005,400 $13,005,400 0.0                                                                      
     Funds                                                                                                                      
     TOTAL       $45,375,700 $46,517,600 $46,517,600 0.0                                                                      
                                                                                                                              
                                                                                                                                
     Positions 09 Mgt Plan 10 Gov Amd Sen Sub           Gov    Amd                                                            
                              Adj                       Adj     to                                                              
                                                        Sen Sub                                                               
     PFT         283          283           283         0.0                                                                   
     PPT         2            2             2           0.0                                                                   
     Temp        1            1             1           0.0                                                                   
     TOTAL       286          286           286         0.0                                                                   
                                                                                                                                
     The Budget  Subcommittee recommends an  operating budget                                                                   
     that  authorizes $100,000  more in  general funds  and 0                                                                   
     fewer  employees  than  the   Governor's  FY2010  budget                                                                   
     request.                                                                                                                   
                                                                                                                                
     Subcommittee Recommendations                                                                                               
                                                                                                                                
     The   subcommittee    held   one   joint    House/Senate                                                                   
     subcommittee  meeting with the  Department and  took the                                                                   
     following actions:                                                                                                         
                                                                                                                                
     Reviewed the FY09 Management Plan.                                                                                         
     Reviewed the FY10 Adjusted Base.                                                                                           
     Reviewed   the   increments,  decrements,   and   budget                                                                   
     amendments proposed by the Governor.                                                                                       
     Reviewed  a three-year look-back  at budget  growth from                                                                   
     FY07 to the Governor's FY10 request.                                                                                       
     Reviewed  the House Subcommittee  report, which  adopted                                                                   
     the Governor's request as amended.                                                                                         
     Adopted the Governor's request as amended.                                                                                 
                                                                                                                                
     The  Subcommittee  considered the  educational  benefits                                                                   
     section of  the budget, which  is an area that  has been                                                                   
     a concern to  past subcommittees.  The  $328.5 reduction                                                                   
     is a  reduction to the  DMVA budget; however,  the Guard                                                                   
     tuition funding  reappears in the Governor's  University                                                                   
     budget request.                                                                                                            
                                                                                                                                
     The  subcommittee  also   considered  and  accepted  the                                                                   
     Department's   rationale   for  removing   the   funding                                                                   
     request  for  the  Veterans Cemetery  in  the  Fairbanks                                                                   
     region at this time.                                                                                                       
                                                                                                                                
     The   committee  considered   the  $50.0  General   Fund                                                                   
     increment  in the  Veterans' Services  component of  the                                                                   
     budget   for  increasing   grants   for  the   Veterans'                                                                   
     Outreach Program.                                                                                                          
                                                                                                                                
10:32:14 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     Lastly,  the subcommittee  reviewed the $185.2  increase                                                                   
     in  the Alaska  Youth  Military Academy's  authority  to                                                                   
     receive I/A  funding from  DEED, due to the  anticipated                                                                   
     $100 increase in the Base Student Allocation.                                                                              
                                                                                                                                
     The subcommittee  notes that  the Department  budget has                                                                   
     been  relatively   flat  for   the  past  three   years.                                                                   
     Changes   in  mission  and   organization  have,   where                                                                   
     possible,   been   absorbed    by   reorganization   and                                                                   
     reassignment of personnel where needed.                                                                                    
                                                                                                                                
10:32:41 AM                                                                                                                   
                                                                                                                                
Senator Olson  asked about the  status of disaster  relief to                                                                   
handle crisis situations in rural Alaska.                                                                                       
                                                                                                                                
Senator  Huggins  responded that  the  National  Guard has  a                                                                   
statewide  search and rescue  mission.  He stressed that  the                                                                   
funding  capability  for  the   project  remains  robust  and                                                                   
present in the budget.                                                                                                          
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for the  Department                                                                   
of   Military  and   Veterans  Affairs   as  presented   with                                                                   
corresponding  legislative finance  reports.  There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
10:34:55 AM                                                                                                                   
                                                                                                                                
Senator    Thomas    presented     the    Senate    Committee                                                                   
Recommendation  for  the Department  of  Commerce,  Community                                                                   
and Economic Development.                                                                                                       
                                                                                                                                
     COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                               
                                                                                                                                
     Fund Source                                                                                                                
                    FY09 Mgt Plan Rev    FY10 Gov Amd+ FY10                                                               
     Senate    Gov to Senate                                                                                                
                                                                                                                                
     General Fund          14,997.9             19,495.2                                                                        
          19,361.9 -133.3                                                                                                       
     Federal               55,091.9             64,592.7                                                                        
          64,592.7   0                                                                                                          
     Other               102,148.8       103,920.1                                                                              
          71,893.4 -32,026.7                                                                                                    
                                                                                                                                
                                                                                                                                
     Personnel                                                                                                                  
                                                                                                                                
     PFT            521             525            525                                                                          
          0                                                                                                                     
     PPT                2                    2                                                                                  
     2         0                                                                                                                
     Temp             16              12             12                                                                         
          0                                                                                                                     
                                                                                                                                
     Budget Action:                                                                                                             
                                                                                                                                
     The most significant items in the Governor's request                                                                       
     are:                                                                                                                       
                                                                                                                                
        · Increments to allow agencies to pay for increased                                                                     
          core services charges by other departments and                                                                        
          for revisions to the department's internal cost                                                                       
          allocation plan.                                                                                                      
                                                                                                                                
        · Continuation of FY09 funding for the Legal                                                                            
     Services Corporation and two grant administrators                                                                          
          in the Division of Community and Regional                                                                             
          Affairs.  These were one-time items in FY09 and                                                                       
          are included as increments in the FY 10 budget.                                                                       
                                                                                                                                
10:36:10 AM                                                                                                                   
                                                                                                                                
     · Continuation of funding for the Alaska Energy                                                                            
        Authority's executive director and program managers                                                                     
        with General Funds.  In FY09, these positions were                                                                      
        funded from a capital project entitled "Alaska                                                                          
        Energy Authority Projects and Development of a                                                                          
        Statewide Energy Plan."  The Subcommittee believes                                                                      
        the AEA executive director and program management                                                                       
        are operating budget activities, and that billing                                                                       
        them to capital projects creates legal and                                                                              
        administrative difficulties.                                                                                            
                                                                                                                                
     · A 57.7 increase in AIDEA funding for the Alaska                                                                          
        Regional Development Organizations (ARDORS) to                                                                          
        provide for a newly created ARDOR.                                                                                      
                                                                                                                                
     · A substantial increase in anticipated federal                                                                            
        funding for local communities through Payment in                                                                        
        Lieu of Taxes and National Forest Receipts.  The                                                                        
        Payment in Lieu of Taxes increment is 3,673.4 and                                                                       
        the National Forest Receipts increment is 6,300.0.                                                                      
                                                                                                                                
     · Replacement of 1,878.0 of the Alaska Seafood                                                                             
        Marketing Institute's uncollectable federal funds                                                                       
        and program receipts with General Funds.                                                                                
                                                                                                                                
10:37:15 AM                                                                                                                   
                                                                                                                                
     The Subcommittee  did not accept the  Governor's request                                                                   
     to  substitute General  Funds  for  1,971.3 in  Business                                                                   
     License Receipts  that funded the Division  of Community                                                                   
     and Regional  Affairs.  The  amount of Business  License                                                                   
     Receipts  collected in FY10  will decline  substantially                                                                   
     due  to  the   reduction  in  the  license   fee.    The                                                                   
     Subcommittee  restored DCRA  program funding with  1,838                                                                   
     in  General   Funds  and   133.3  in  Business   License                                                                   
     Receipts.   The  Subcommittee anticipates  that the  use                                                                   
     of  133.3 in Business  License Receipts  will leave  the                                                                   
     department  with  approximately  400.0  of  receipts  to                                                                   
     cover the  budget in case  license revenue  declines due                                                                   
     to the economic  downturn.  Business License  revenue is                                                                   
     historically  volatile,  and the  Subcommittee  believes                                                                   
     it would  be unwise  to provide a  cushion of  less than                                                                   
     400.0.                                                                                                                     
                                                                                                                                
10:38:11 AM                                                                                                                   
                                                                                                                                
     The Subcommittee  recommends full funding  of Power Cost                                                                   
     Equalization,  but  supports   elimination  of  the  PCE                                                                   
     Capitalization  Fund  as  an intermediate  step  in  the                                                                   
     flow  of funds from  the PCE  Endowment and the  General                                                                   
     Fund, to  the department for distribution  to utilities.                                                                   
     The Subcommittee  concurs with the House  recommendation                                                                   
     to route PCE funds directly to the department.                                                                             
                                                                                                                                
     Finally,   the   Subcommittee    recommends   that   the                                                                   
     Governor's  requested wordage be  amended to  remove old                                                                   
     legislative  intent that  directed the Alaska  Aerospace                                                                   
     Development  Corporation  to fully  pay  its portion  of                                                                   
     core  services and  department cost  allocations.   This                                                                   
     issue has been resolved.                                                                                                   
                                                                                                                                
10:38:42 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for the  Department                                                                   
of Commerce, Community and Economic Development as presented                                                                    
with corresponding legislative finance reports. There being                                                                     
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
10:39:17 AM                                                                                                                   
                                                                                                                                
Senator    Thomas    presented     the    Senate    Committee                                                                   
Recommendations for the Department of Labor and Workforce                                                                       
Development.                                                                                                                    
                                                                                                                                
     DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                              
                                                                                                                                
     Fund Source                                                                                                                
                    FY09 Mgt Plan Rev    FY10 Gov Amd+ FY10                                                                     
     Senate    Gov to Senate                                                                                                    
                                                                                                                                
     General Fund        29,822.8        29,176.8                                                                               
          29,791.8 615.0                                                                                                        
     Federal             85,866.2        87,638.2                                                                               
          87,638.2 0                                                                                                            
     Other               56,832.4        60,240.5                                                                               
          60,420.5 180.0                                                                                                        
                                                                                                                                
     Personnel                                                                                                                  
                                                                                                                                
     PFT            833             825            827                                                                          
          2                                                                                                                     
     PPT            108             115            115                                                                          
          0                                                                                                                     
     Temp            37               23            23                                                                          
          0                                                                                                                     
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The Subcommittee  adopted the  FY 10 Adjusted  base, and                                                                   
     then  accepted the increments,  decrements, fund  source                                                                   
     changes  and wordage in  the Governor's Amended  budget,                                                                   
     with the adjustments mentioned below.                                                                                      
                                                                                                                                
     The  most significant  items in  the Governor's  request                                                                   
     are  continuations  of  one-time  items  from  the  FY09                                                                   
     budget  as increments  to  the base,  including  funding                                                                   
     for the  Alaska Construction Academy Training  and SAVEC                                                                   
     (Southwest Alaska Vocational and Education Center.)                                                                        
                                                                                                                                
10:40:15 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
     The  Governor  requested  continuation  of  funding  for                                                                   
     three gas  line-related, one-time items in  the language                                                                   
     section  (section 16)  of her  bill.   Those items  are:                                                                   
     Business  Services gas line  job training oversight  and                                                                   
     instruction,  the Workforce  Investment Board  education                                                                   
     skills  coordinator, and  the  Labor Market  Information                                                                   
     gas line  training program guide and  regional workforce                                                                   
     data  distribution.    The  Subcommittee  moved  partial                                                                   
     funding  for both  the Business  Services increment  and                                                                   
     the  Workforce  Investment   Board  increment  into  the                                                                   
     numbers  section  of  the department  budget,  with  the                                                                   
     recommendation  that  all three  items  be removed  from                                                                   
     the  language  section,  and  that the  balance  of  the                                                                   
     Governor's  request for  these items  be funded  through                                                                   
     the reappropriation  of unexpended FY09 AGIA  funding in                                                                   
     the Governor's supplemental request.                                                                                       
                                                                                                                                
10:41:04 AM                                                                                                                   
                                                                                                                                
     This  above action  deletes  $860.0 GF  from the  bill's                                                                   
     language  section,   while  adding  $550.0   GF  to  the                                                                   
     numbers section  of the department  budget, for  a total                                                                   
     GF reduction to the Governor's budget of $310.0.                                                                           
                                                                                                                                
     The Subcommittee  made an additional $25.0  decrement to                                                                   
     Data    Processing   within    the   Commissioner    and                                                                   
     Administrative  Services appropriation, to remove  a one                                                                   
     time item from a FY09 fiscal note.                                                                                         
                                                                                                                                
     The   Subcommittee  also   added  two   wage  and   hour                                                                   
     investigators  to  the  Wage   and  Hour  Administration                                                                   
     allocation,  to be  funded  with $90.0  from the  Worker                                                                   
     Safety  Fund and  $90.0  from the  General  Fund.   This                                                                   
     increment  will allow  the  department to  significantly                                                                   
     increase visits  to job sites  to enforce  minimum wage,                                                                   
     child labor  and resident hire  laws, as well  as ensure                                                                   
     that employers  have the required workers'  compensation                                                                   
     coverage  and  that  they   are  correctly  categorizing                                                                   
     their  workers' for workers  compensation purposes  each                                                                   
     year.                                                                                                                      
                                                                                                                                
     Finally,  the Subcommittee  recommends  that the  Senate                                                                   
     Finance  Committee  reappropriate  or extend  the  lapse                                                                   
     date   for   the   unexpended  balance   of   the   FY09                                                                   
     appropriation  for Alaska Construction  Academy Training                                                                   
     made in section  1, chapter 27 of SLA 2008.   This roll-                                                                   
     forward would provide the necessary funding to expand                                                                      
     Construction Academy training in rural Alaska.                                                                             
                                                                                                                                
10:41:57 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  MOVED to  ADOPT  the FY10  Senate  Finance                                                                   
Committee  Operating Subcommittee  Report for the  Department                                                                   
of  Labor  and   Workforce  Development  as   presented  with                                                                   
corresponding  legislative finance  reports.  There being  NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
                                                                                                                                
CSHB 81  (FIN) was  HEARD and HELD  in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
                                                                                                                                
10:42:46 AM         AT EASE                                                                                                   
10:43:58 AM         RECONVENED                                                                                                
                                                                                                                                
                                                                                                                                
Co-Chair Hoffman  provided members with a  proposed committee                                                                   
substitute,  work draft  work  draft #26-GH1002\W  for HB  81                                                                   
and  a  proposed   committee  substitute,  work   draft  #26-                                                                   
GH1004\S for HB 83 (copies on file).                                                                                            
                                                                                                                                
Mr.  Teal explained  the HB  83  language is  similar to  the                                                                   
House  version with  the  exception  of one  capital  project                                                                   
placed  into  language.  Typically  the  House  proposes  one                                                                   
project  while the Senate  removes one  project and  proposes                                                                   
all other mental  health projects allowing all  to be subject                                                                   
Conference  Committee  recommendations.  The  normal  capital                                                                   
budget process  undergoes review  with Conference  Committees                                                                   
responding to  the capital  budget recommendations.   Section                                                                   
8,  page  18  shows a  capital  project  for  an  information                                                                   
technology project.                                                                                                             
                                                                                                                                
Mr. Teal  informed on HB 81  language changes in  Section 11,                                                                   
Page  61. He  explained that  the  education funding  changes                                                                   
replace  the  House  appropriation  of  $2  million  with  $1                                                                   
million  allocated  for  Pre-K  and $1  million  targeted  to                                                                   
chronically  underperforming   school  districts.   Similarly                                                                   
there   is  $1   million  in   Section   C  targeted   toward                                                                   
chronically   underperforming  school   districts  and   head                                                                   
start. He  mentioned Section  21 on  Page 67 concerning  fund                                                                   
transfers with  the actual change  on Page 68  showing $115.9                                                                   
million of  general funds  to the  debt retirement  fund. The                                                                   
change reflects an error in compiling the House bill.                                                                           
                                                                                                                                
10:47:20 AM                                                                                                                   
                                                                                                                                
Mr.  Teal  discussed   Section  25,  Page  73   and  concerns                                                                   
regarding  shared  taxes, specifically  commercial  passenger                                                                   
vessel  tax  in Section  C,  Page  74.  The language  was  an                                                                   
oversight.  The  final  change   is  on  Section  27  in  the                                                                   
Constitutional Budget Reserve (CBR).                                                                                            
                                                                                                                                
10:49:31 AM                                                                                                                   
                                                                                                                                
Mr. Teal  reviewed the  reverse sweep on  Section 27  A, Page                                                                   
77,  dependent on  unpaid  liability to  the  CBR, where  all                                                                   
sub-funds  of the general  fund along  with the general  fund                                                                   
itself are  swept into  the CBR. The  money is then  replaced                                                                   
as stated  in Section  27 A,  Page 77.  The section  normally                                                                   
appears each year.                                                                                                              
                                                                                                                                
Co-Chair  Hoffman  asked for  the  purpose of  including  the                                                                   
language  in the  budget for  forward  funding of  education.                                                                   
The  House did  not  pass the  CBR  language,  but the  other                                                                   
operating  departments  are  adequately  funded in  the  FY10                                                                   
budget.  He recommended  changes be addressed  when the  bill                                                                   
is brought for concurrence with the House.                                                                                      
                                                                                                                                
Co-Chair  Stedman   MOVED  to  ADOPT  a   proposed  committee                                                                   
substitute,  work  draft  #26-GH1002\W  for  HB  81,  Bailer,                                                                   
3/24/09. There being NO OBJECTION, it was so ordered.                                                                           
                                                                                                                                
Co-Chair  Stedman   MOVED  to  ADOPT  a   proposed  committee                                                                   
substitute,  work draft  #26-GH1004\S for  HB 83 There  being                                                                   
NO OBJECTION, it was so ordered.                                                                                                
                                                                                                                                
CSHB 83  (FIN) was  HEARD and HELD  in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
10:52:56 AM                                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:53 AM.                                                                                          
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB81 DOA Senate Subcommittee Report.pdf SFIN 3/24/2009 9:00:00 AM
HB 81
Workdraft SenateCSforCSfor HB83(FIN)Version26-GH1004S 032409.pdf SFIN 3/24/2009 9:00:00 AM
SFIN 3/25/2009 9:00:00 AM
SFIN 3/26/2009 9:00:00 AM
HB 83
WorkdraftSenateCSfor CSforHB81(FIN)Version26-GH1002W 032409.pdf SFIN 3/24/2009 9:00:00 AM
SFIN 3/25/2009 9:00:00 AM
SFIN 3/26/2009 9:00:00 AM
HB 81