Legislature(2017 - 2018)SENATE FINANCE 532

02/28/2017 09:00 AM FINANCE

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Audio Topic
09:03:07 AM Start
09:04:11 AM SB22 || SB24
10:03:44 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 22 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
*+ SB 24 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ FY18 Operating Amendments TELECONFERENCED
Pat Pitney, Directory, Office of Management and
Budget
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 28, 2017                                                                                          
                         9:03 a.m.                                                                                              
                                                                                                                                
9:03:07 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Hoffman called the Senate Finance Committee                                                                            
meeting to order at 9:03 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Mike Dunleavy                                                                                                           
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
Pat  Pitney,  Director,  Office of  Management  and  Budget,                                                                    
Office  of  the  Governor; Kelly  O'Sullivan,  Chief  Budget                                                                    
Analyst,  Office of  Management and  Budget; Rob  Carpenter,                                                                    
Budget Analyst, Legislative Finance Division.                                                                                   
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 22     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          SB 22 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 24     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          SB 24 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SENATE BILL NO. 22                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;   repealing    appropriations;   making                                                                    
     supplemental  appropriations and  reappropriations, and                                                                    
     making  appropriations  under   art.  IX,  sec.  17(c),                                                                    
     Constitution  of   the  State   of  Alaska,   from  the                                                                    
     constitutional budget  reserve fund; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
SENATE BILL NO. 24                                                                                                            
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
9:04:11 AM                                                                                                                    
                                                                                                                                
PAT  PITNEY,  DIRECTOR,  OFFICE OF  MANAGEMENT  AND  BUDGET,                                                                    
OFFICE  OF   THE  GOVERNOR,  looked  at   the  presentation,                                                                    
"Governor's  Budget  Amendments; Senate  Finance  Committee"                                                                    
(copy  on  file). She  began  her  presentation on  slide  4                                                                    
"FY2018 Operating Amendments":                                                                                                  
                                                                                                                                
     Line 1                                                                                                                     
     Department: Administration                                                                                                 
     Component: Office of the Commissioner                                                                                      
     Description:Delete  Deputy  Commissioner (02-1040)  No                                                                    
     Longer  Needed Delete  a full-time  Deputy Commissioner                                                                    
     (02-1040),  range  28,  located   in  Juneau,  and  the                                                                    
     position's   associated  funding.   The  Commissioner's                                                                    
     Office will  continue to  have one  Deputy Commissioner                                                                    
     to assist in the  oversight of divisions and department                                                                    
     initiatives.                                                                                                               
     UGF: ($173.6)                                                                                                              
     DGF: $0.0                                                                                                                  
     Other: ($15.5)                                                                                                             
     Federal: ($0.0)                                                                                                            
     Total: ($189.1)                                                                                                            
     Fund  Source: 1004  Gen Fund  ($173.6); 1007  I/A Repts                                                                    
     ($15.5)                                                                                                                    
                                                                                                                                
Co-Chair Hoffman wondered whether the position was vacant.                                                                      
Ms. Pitney replied in the affirmative.                                                                                          
                                                                                                                                
Ms. Pitney looked at lines 2 and 3, which were technical                                                                        
changes:                                                                                                                        
                                                                                                                                
     Line 2                                                                                                                     
     Department: Administration                                                                                                 
     Component: SATS                                                                                                            
     Description:      Transfer     State      of     Alaska                                                                    
     Telecommunications  System  to  Office  of  Information                                                                    
     Technology    Transfer    the     State    of    Alaska                                                                    
     Telecommunications   System   (SATS)  from   Enterprise                                                                    
     Technology Services  to the  new Office  of Information                                                                    
     Technology.  This transfer  is  necessary  in order  to                                                                    
     align  all  information  technology functions  under  a                                                                    
     Chief Information Officer.                                                                                                 
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $0.0                                                                                                                
                                                                                                                                
     Line 3                                                                                                                     
     Department: Administration.                                                                                                
     Component: ALMR                                                                                                            
     Description:  Transfer  Alaska  Land  Mobile  Radio  to                                                                    
     Office of  Information Technology Transfer  Alaska Land                                                                    
     Mobile   Radio   (ALMR)  from   Enterprise   Technology                                                                    
     Services to  the new Office of  Information Technology.                                                                    
     This  transfer  is  necessary in  order  to  align  all                                                                    
     information   technology   functions  under   a   Chief                                                                    
     Information Officer.                                                                                                       
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $0.0                                                                                                                
                                                                                                                                
     Line 4                                                                                                                     
     Department: Administration                                                                                                 
     Component: Motor Vehicles                                                                                                  
     Description:   New  Federal   Grant   to  Comply   with                                                                    
     Commercial   Motor    Vehicle   Safety    Act   Federal                                                                    
     regulations enacted  in July 2015 require  the Division                                                                    
     of Motor  Vehicles (DMV)  to audit  Commercial Driver's                                                                    
     License                                                                                                                    
     (CDL) examiners  and trainers every two  years. To meet                                                                    
     this new  regulation, DMV  applied for  the competitive                                                                    
     Federal  Motor  Carrier Safety  Administration  (FMCSA)                                                                    
     grant in April 2016 and  was awarded a three-year grant                                                                    
     totaling  $1,434.6 in  September  2016. This  amendment                                                                    
     provides   FY2018   funding    based   on   an   FY2017                                                                    
     supplemental item of $301.5.                                                                                               
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $500.0                                                                                                              
     Federal: $500.0                                                                                                            
     Total: 1002 Fed Repts $500.0                                                                                               
                                                                                                                                
Vice-Chair Bishop  looked at line  4, and surmised  that the                                                                    
federal grant  was intended  for the state  to check  with a                                                                    
third-party testing  facility, which provided  CDL training,                                                                    
to  ensure  that there  was  compliance  in training.    Ms.                                                                    
Pitney replied in the affirmative.                                                                                              
                                                                                                                                
9:08:58 AM                                                                                                                    
                                                                                                                                
Ms. Pitney continued to discuss the amendments.                                                                                 
                                                                                                                                
     Line 5                                                                                                                     
     Department: Corrections                                                                                                    
     Component: Office of the Commissioner                                                                                      
     Description:  Community  Resource  for  Justice  Grants                                                                    
     from Community  Resource for Justice  Incorporated will                                                                    
     be  used to  support implementation  of justice  reform                                                                    
     efforts. This is  a new request for FY2018  and was not                                                                    
     included  in the  FY2018  governor's  request as  these                                                                    
     grant funds were not available  at the time. The Alaska                                                                    
     Criminal  Justice  Commission  approved  this  item  in                                                                    
     January 2017.                                                                                                              
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $117.4                                                                                                              
     Federal: $0.0                                                                                                              
     Total: $117.4                                                                                                              
     Fund Source 1109 Stat Desig. $117.4                                                                                        
                                                                                                                                
     Line 6                                                                                                                     
     Department: Education and Early Development                                                                                
     Component: Student and School Achievement                                                                                  
     Description: Alaska Technical  and Vocational Education                                                                    
     Formula  Funding The  Alaska  Technical and  Vocational                                                                    
     Education Program (TVEP), is  funded by 0.16 percent of                                                                    
     employee  contributions to  the unemployment  insurance                                                                    
     trust fund.  The taxable wages collected  have declined                                                                    
     more rapidly  than originally anticipated.  A reduction                                                                    
     in  TVEP   authority  is  required  in   order  to  not                                                                    
     overspend the fund.  This is a new item  for FY2018. It                                                                    
     was not  included in the  FY2018 Governor's  Budget due                                                                    
     to timing of updated revenue collection projections.                                                                       
     UGF: $0.0                                                                                                                  
     DGF: ($52.8)                                                                                                               
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $52.8                                                                                                               
     Fund Source: 1151 VoTech Ed ($52.8)                                                                                        
                                                                                                                                
Ms. Pitney noted line 7:                                                                                                        
                                                                                                                                
     Line 7                                                                                                                     
     Department: Education and Early Development                                                                                
     Component:  Child   Nutrition  Description:  Additional                                                                    
     Child  Nutrition  Grants  from  the  US  Department  of                                                                    
     Agriculture  Due to  increased growth  in the  National                                                                    
     School  Lunch Program,  School  Breakfast Program,  and                                                                    
     Summer Food Service  Program additional federal receipt                                                                    
     authorization is needed for  acceptance of the increase                                                                    
     in  United  States  Department  of  Agriculture  (USDA)                                                                    
     grant  funds. These  are  100% USDA  funds  and do  not                                                                    
     require  an   increase  in   state  general   funds  or                                                                    
     additional staff. This is a  new request for FY2018. It                                                                    
     was  not  included  in   the  FY2018  Governor  request                                                                    
     because  at  the  time of  budget  development  it  was                                                                    
     unknown   whether  an   amendment   request  would   be                                                                    
     necessary  due to  pending  information  from the  U.S.                                                                    
     Department of Education.                                                                                                   
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $10,172.6                                                                                                         
     Total: $10,172.6                                                                                                           
     Fund Source: 1002 Fed Repts $10,172.6                                                                                      
                                                                                                                                
Ms. Pitney addressed line 8:                                                                                                    
                                                                                                                                
     Line 8                                                                                                                     
     Department: Education and Early Development                                                                                
     Component: Loan Servicing                                                                                                  
     Description:  FY2018  Health  Insurance  Rate  Increase                                                                    
     Alaska Student  Loan Corporation (ASLC)  contracts with                                                                    
     the  Alaska   Commission  on   Postsecondary  Education                                                                    
     (ACPE) for  loan servicing and pays  for these services                                                                    
     with ASLC  receipts. The health insurance  increase was                                                                    
     added  to  ACPE's   interagency  receipt  funding  line                                                                    
     within  the appropriation  but  not  within the  ASLC's                                                                    
     appropriation,   which  funds   ACPE.  This   amendment                                                                    
     provides   FY2018   funding    based   on   an   FY2017                                                                    
     supplemental request of $115.1.                                                                                            
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $197.3                                                                                                              
     Federal: $0.0                                                                                                              
     Total: $197.3                                                                                                              
     Fund Source: 1106 ASLC Repts $197.3                                                                                        
                                                                                                                                
9:11:18 AM                                                                                                                    
                                                                                                                                
Ms. Pitney highlighted lines 9, 10, and 11:                                                                                     
                                                                                                                                
     Line 9                                                                                                                     
     Department: Fish and Game                                                                                                  
     Component: SE Region Fisheries Mgmt.                                                                                       
     Description:  Coho Salmon  and Dive  Fisheries Research                                                                    
     Projects This will allow  support from private industry                                                                    
     to  support various  escapement, stock  assessment, and                                                                    
     survey projects. This  is a new request  for FY2018. It                                                                    
     was  not  included  in  the  FY2018  Governor's  budget                                                                    
     because  the scope  of the  projects  were still  being                                                                    
     identified.                                                                                                                
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $191.0                                                                                                              
     Federal: $0.0                                                                                                              
     Total: $191.0                                                                                                              
     Fund Source: 1108 Stat Desig $191.0                                                                                        
                                                                                                                                
     Line 10                                                                                                                    
     Department: Fish and Game                                                                                                  
     Component: Central Region                                                                                                  
     Description:Bristol  Bay  Science  Research  Institute                                                                    
     Watershed Projects (FY18-FY19)  This will allow support                                                                    
     from  Bristol   Bay  Science  and   Research  Institute                                                                    
     (BBSRI)   to  support   various  escapement   and  test                                                                    
     projects. This is a new  request for FY2018. It was not                                                                    
     included  in  the   FY2018  Governor's  budget  because                                                                    
     discussions on the agreement were still ongoing.                                                                           
     UGF:$0.0                                                                                                                  
     DGF:$0.0                                                                                                                  
     Other:$800.0                                                                                                              
     Federal:$0.0                                                                                                              
     Total:$800.0                                                                                                              
     Fund Source: 1108 Stat Desig $800.0                                                                                        
                                                                                                                                
Co-Chair MacKinnon queried the  controls to ensure that best                                                                    
practices  were used  in the  research.  Ms. Pitney  replied                                                                    
that there was  research by the state  biologists, and would                                                                    
be done  within the standards  of the state  assessment. The                                                                    
value  to the  group was  more available  fishing stock  and                                                                    
better management.                                                                                                              
                                                                                                                                
Senator  Olson  noted  the rapidly  declining  revenue,  and                                                                    
remarked that other  programs may be added  to the Technical                                                                    
Vocational  Education  Program  (TVEP)  funds.  He  wondered                                                                    
whether the  administration was in  support of  moving those                                                                    
programs.   Ms. Pitney  replied that the  administration had                                                                    
no   position   on   the    additional   programs   in   the                                                                    
reauthorization.                                                                                                                
                                                                                                                                
Senator  Olson asked  whether there  had been  discussion on                                                                    
that issue. Ms. Pitney replied in the negative.                                                                                 
                                                                                                                                
Senator von  Imhof wondered how  the Department of  Fish and                                                                    
Game (DFG)  requests fit into  the greater  research efforts                                                                    
for DFG. Ms. Pitney deferred to the commissioner of DFG                                                                         
                                                                                                                                
9:15:46 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy wondered whether  the DFG research would be                                                                    
conducted  by  the  state's procedures  and  practices,  and                                                                    
funded   by  the   outfits.  Ms.   Pitney  replied   in  the                                                                    
affirmative.                                                                                                                    
                                                                                                                                
Senator Micciche  felt that the  projects were  not research                                                                    
projects, rather  they were in season  stock and enumeration                                                                    
studies  that were  conducted every  year in  the sport  and                                                                    
commercial  river  systems.  He remarked  that  the  private                                                                    
industry had agreed  to fund these programs in  the past. It                                                                    
simply allowed for  commercial fishing to take  place in the                                                                    
state.                                                                                                                          
                                                                                                                                
Ms. Pitney looked at page 6, lines 11, 12, 13, 14, and 15:                                                                      
                                                                                                                                
     Line 11                                                                                                                    
     Department: Fish and Game                                                                                                  
     Component: Statewide Fisheries Management                                                                                 
     Description: Stock Assessment Projects                                                                                     
     This  will  allow  support  from  private  industry  to                                                                    
     support stock  assessments. This  is a new  request for                                                                    
     FY2018. It  was not  included in the  FY2018 Governor's                                                                    
     budget  because the  scope of  the projects  were still                                                                    
     being identified.                                                                                                          
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $183.0                                                                                                              
     Federal: $0.0                                                                                                              
     Total: $183.0                                                                                                              
     Fund Source: 1108 Stat Desig $183.0                                                                                        
                                                                                                                                
     Line 12                                                                                                                    
     Department:Labor & Workforce                                                                                              
     Component: Workforce Development                                                                                           
     Description: Alaska Technical  and Vocational Education                                                                    
     Formula Funding                                                                                                            
     The Alaska Technical and Vocational Education Program                                                                      
     (TVEP),  is   funded  by   0.16  percent   of  employee                                                                    
     contributions  to  the   unemployment  insurance  trust                                                                    
     fund. The  taxable wages  collected have  declined more                                                                    
     rapidly than originally anticipated.                                                                                       
     A reduction in  TVEP authority is required  in order to                                                                    
     not overspend the fund. This  is a new item for FY2018.                                                                    
     It  was not  included in  the FY2018  Governor's Budget                                                                    
     due   to   timing   of   updated   revenue   collection                                                                    
     projections.                                                                                                               
     UGF:$0.0                                                                                                                  
     DGF: ($448.6)                                                                                                              
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: ($448.6)                                                                                                            
     Fund Source: 1151 VoTech Ed ($448.6)                                                                                       
                                                                                                                                
     Line 13                                                                                                                    
     Department: Labor & Workforce                                                                                              
     Component: AVTEC                                                                                                           
     Description: Alaska Technical  and Vocational Education                                                                    
     Formula Funding                                                                                                            
     The Alaska Technical and Vocational Education Program                                                                      
     (TVEP),  is   funded  by   0.16  percent   of  employee                                                                    
     contributions  to  the   unemployment  insurance  trust                                                                    
     fund. The  taxable wages  collected have  declined more                                                                    
     rapidly  than originally  anticipated.  A reduction  in                                                                    
     TVEP authority  is required in  order to  not overspend                                                                    
     the fund.  This is a  new item  for FY2018. It  was not                                                                    
     included in the FY2018  Governor's Budget due to timing                                                                    
     of updated revenue collection projections.                                                                                 
     UGF: $0.0                                                                                                                  
     DGF: ($224.3)                                                                                                              
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: ($224.3)                                                                                                            
     Fund Source: 1151 VoTech Ed ($224.3)                                                                                       
                                                                                                                                
     Line 14                                                                                                                    
     Department: Public Safety                                                                                                  
     Component: Domestic Viol/Sexual Assault                                                                                    
     Description:   Omnibus    Crime   Law    &   Procedure;                                                                    
     Corrections Ch36 SLA2016 (SB91)                                                                                            
     Implement  reforms identified  by  the Alaska  Criminal                                                                    
     Justice  Commission  to  address  violence  prevention,                                                                    
     services, and  victims' rights. This  is a  new request                                                                    
     for  FY2018.   It  was  not  included   in  the  FY2018                                                                    
     Governor's budget due to oversight.                                                                                        
     UGF: $0.0                                                                                                                  
     DGF: $1,000.0                                                                                                              
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $1,000.0                                                                                                            
     Fund Source: 1246 Recid Redu $1,000.0                                                                                      
                                                                                                                                
     Line 15                                                                                                                    
     Department: Transportation                                                                                                 
     Component: Various                                                                                                         
     Description: Capital Program Positions                                                                                     
     The department is pursuing  an organizational review to                                                                    
     ensure  optimized   delivery  of  its   capital  design                                                                    
     program.  This  change  amends  the  previous  language                                                                    
     associated  with deleting  positions in  the Governor's                                                                    
     budget.                                                                                                                    
                                                                                                                                
9:18:59 AM                                                                                                                    
ATEASE                                                                                                                          
                                                                                                                                
9:19:58 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:20:03 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman looked at line 15. He felt that Vice-Chair                                                                     
Bishop should meet with the department to further review                                                                        
the issue.                                                                                                                      
                                                                                                                                
                                                                                                                                
Vice-Chair Bishop shared that he had worked on examining                                                                        
these positions in his subcommittee.                                                                                            
                                                                                                                                
Co-Chair Hoffman queried the location of the proposal.                                                                          
                                                                                                                                
Vice-Chair Bishop replied that it was on page 16.                                                                               
                                                                                                                                
Co-Chair Hoffman queried a detail of the department's                                                                           
proposal.                                                                                                                       
                                                                                                                                
9:22:21 AM                                                                                                                    
                                                                                                                                
Ms. Pitney looked lines 16 and 17:                                                                                              
                                                                                                                                
     Line 16                                                                                                                    
     Department: Transportation                                                                                                 
     Component: Marine Vessel Operations                                                                                        
     Description:  Alaska  Care  Rate  Increase  for  Alaska                                                                    
     Marine Highway System Revised Estimate                                                                                     
     Alaska  Marine  Highway  System health  insurance  rate                                                                    
     increase  to   $1,555  per   member  per   month.  This                                                                    
     amendment is  an adjustment from the  previous estimate                                                                    
     submitted in the FY2018 Governor's scenario.                                                                               
     UGF: $0.0                                                                                                                 
     DGF:$241.4                                                                                                                
     Other: $0.0                                                                                                               
     Federal: $0.0                                                                                                              
     Total: $241.4                                                                                                              
     Fund Source: 1076 Marine Hwy $241.4                                                                                        
                                                                                                                                
     Line 17                                                                                                                    
     Department: University of Alaska                                                                                           
     Component: System wide Reduction/Additions                                                                                 
     Description: Alaska Technical  and Vocational Education                                                                    
     Formula Funding                                                                                                            
     The Alaska Technical and Vocational Education Program                                                                      
     (TVEP),  is   funded  by   0.16  percent   of  employee                                                                    
     contributions  to  the   unemployment  insurance  trust                                                                    
     fund. The  taxable wages  collected have  declined more                                                                    
     rapidly  than originally  anticipated.  A reduction  in                                                                    
     TVEP authority  is required in  order to  not overspend                                                                    
     the fund.  This is a  new item  for FY2018. It  was not                                                                    
     included in  the FY2018 Governor request  due to timing                                                                    
     of updated revenue collection projections                                                                                  
     UGF: $0.0                                                                                                                  
     DGF: ($593.5)                                                                                                              
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: ($593.5)                                                                                                            
     Fund Source: 1151 VoTech Ed ($593.5)                                                                                       
                                                                                                                                
9:22:55 AM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop shared that he recommended discontinuing                                                                      
the sunset extension, and no increases in TVEP.                                                                                 
                                                                                                                                
Ms. Pitney looked at line 18, 19, 20, 21, 22, and 23:                                                                           
                                                                                                                                
     Line 18                                                                                                                    
     Department: Judiciary                                                                                                      
     Component: Therapeutic Courts                                                                                              
     Description: Mat-Su Foundation Grants and Awards from                                                                      
     Other Sponsors                                                                                                             
     Additional receipt authority  will enable acceptance of                                                                    
     anticipated  grants  from  the  Mat-Su  Foundation  and                                                                    
     other sponsors. This  amendment provides FY2018 funding                                                                    
     based on a FY2017 supplemental request of $51.2.                                                                           
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $400.0                                                                                                              
     Federal: $0.0                                                                                                              
     Total: $400.0                                                                                                              
     Fund Source: 1108 Stat Desig $400.0                                                                                        
                                                                                                                                
     Line 19                                                                                                                    
     Department: Judiciary                                                                                                      
     Component: Commission on Judicial Conduct                                                                                  
     Description: Correct FY2018 Alaska Care Increase                                                                           
     Correct Alaska Care salary adjustment.                                                                                     
     UGF:($12.6)                                                                                                              
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: ($12.6)                                                                                                             
     Fund Source: 1004 Gen Fund ($12.6)                                                                                         
                                                                                                                                
     Line 20                                                                                                                    
     Department: Judiciary                                                                                                      
     Component: Commission on Judicial Conduct                                                                                  
     Description: Personal Service Expenses                                                                                     
     Adjustment to  fully fund personal services.  This is a                                                                    
     new  request for  FY2018. It  was not  included in  the                                                                    
     FY2018 Governor request due to oversight.                                                                                  
     UGF: $23.8                                                                                                                 
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $23.8                                                                                                               
     Fund Source: 1004 Gen Fund $23.8                                                                                           
                                                                                                                                
     Line 21                                                                                                                    
     Department: Judiciary                                                                                                      
     Component: Judicial Council                                                                                                
     Description: Correct FY2018 Alaska Care Increase                                                                           
     Correct Alaska Care salary adjustment.                                                                                     
     UGF: $12.6                                                                                                                 
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $12.6                                                                                                               
     Fund Source: 1004 Gen Fund $12.6                                                                                           
                                                                                                                                
     Line 22                                                                                                                    
     Department: Debt Service                                                                                                   
     Component: Int Airport Revenue Bonds                                                                                       
     Description: FY2018 Payments                                                                                               
     The amount  for FY2018  debt service was  not finalized                                                                    
     until  after the  submission of  the FY2018  Governor's                                                                    
     budget. This amendment adds  an appropriation for early                                                                    
     redemption  and  reduces  the amount  to  be  paid  for                                                                    
     normal  debt  service.  A supplemental  to  change  the                                                                    
     amount of early redemption  has also been submitted for                                                                    
     FY2017.                                                                                                                    
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $27,687.3                                                                                                           
     Federal: $0.0                                                                                                              
     Total: $27,687.3                                                                                                           
     Fund Source: 1027 Int Airprt $27,687.3                                                                                     
                                                                                                                                
     Line 23                                                                                                                    
     Department: Debt Service                                                                                                   
     Component: Int Airport Revenue Bonds                                                                                       
     Description:   International   Airport   General   Fund                                                                    
     Borrowing Appropriation                                                                                                    
     This language addresses  a cash-flow deficiency related                                                                    
     to  federal  international  airport  projects.  Similar                                                                    
     language will be added to the FY2017 Governor's                                                                            
     amended supplemental budget.                                                                                               
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $0.0                                                                                                                
                                                                                                                                
9:26:10 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman wondered  whether the  reimbursement would                                                                    
always   cover  100   percent   reimbursement.  Ms.   Pitney                                                                    
responded  that it  might be  under recovery,  but it  would                                                                    
only affect the Airport Systems Funds.                                                                                          
                                                                                                                                
Senator  Olson asked  whether  the funds  were  used on  any                                                                    
other airports,  other than the  three that  were considered                                                                    
"International Airports."  Ms. Pitney  replied that  it only                                                                    
affected the International Airport Funds.                                                                                       
                                                                                                                                
Senator   Olson   wondered   whether  the   funds   in   the                                                                    
International  Airport   general  fund  used   for  airports                                                                    
besides the three designated airports.  Ms. Pitney agreed to                                                                    
follow up  with the Department of  Transportation and Public                                                                    
Facilities (DOT/PF).                                                                                                            
                                                                                                                                
Ms. Pitney looked at line 24:                                                                                                   
                                                                                                                                
     Line 24                                                                                                                    
     Department: Fund Transfers                                                                                                 
     Component: Oil & Haz Sub Rel Preventn Acct                                                                                 
     Description: FY2018 Estimated Collections                                                                                  
     This change makes  the timing of the  transfer from the                                                                    
     refined fuel  surcharge consistent  with the  timing of                                                                    
     the   transfers  of   other  sources   that  fund   the                                                                    
     prevention account. A  supplemental revising the FY2017                                                                    
     operating bill language is also being submitted                                                                            
     UGF: $400.0                                                                                                                
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $400.0                                                                                                              
     Fund Source: 1004 Gen Fund $400.0                                                                                          
                                                                                                                                
                                                                                                                                
Ms. Pitney addressed lines 25 and 26:                                                                                           
                                                                                                                                
     Line 25                                                                                                                    
     Department: various                                                                                                        
     Component: various                                                                                                         
     Description: Salary and Benefits Adjustment                                                                                
     Add the collective bargaining units affected by FY2018                                                                     
     Alaska Care health insurance salary adjustments.                                                                           
                                                                                                                                
     Line 26                                                                                                                    
     Department: N/A                                                                                                            
     Component: N/A                                                                                                             
     Description: Alaska Industrial Development and Export                                                                      
     Authority Dividend                                                                                                         
     The amount of the dividend was announced after the                                                                         
     release of the Governor's budget.                                                                                          
                                                                                                                                
9:30:23 AM                                                                                                                    
                                                                                                                                
Senator  Micciche  corrected   his  previous  statement.  He                                                                    
stated  that the  three DFG  research  requests included  an                                                                    
investment   from  the   Mat-Su  borough   municipality.  He                                                                    
remarked that other  industry might look at  the model, with                                                                    
state services  directly serving  their industry  they might                                                                    
invest in the process.                                                                                                          
                                                                                                                                
Senator Dunleavy looked  at page 5, line 8,  and queried the                                                                    
reason the  funds were considered  "other" and not  "UGF" or                                                                    
"DGF."  Ms. Pitney  replied that  there was  a continuum  of                                                                    
restriction on  funding. She stated  that UGF was  the least                                                                    
restrictive, DGF had an  assigned purpose with restrictions,                                                                    
and other funds carried  an additional level of restriction.                                                                    
She stated that federal funds  were the most restricted. She                                                                    
stated that the other funds  were in the Student Loan Funds,                                                                    
and those were receipts because  of interest on loans. Those                                                                    
were directed  for use within  the Student  Loan Corporation                                                                    
Fund.                                                                                                                           
                                                                                                                                
Senator Dunleavy  surmised that it was  revenue generated by                                                                    
the corporation that would pay  for insurance related to the                                                                    
corporation. Ms. Pitney replied in the affirmative.                                                                             
                                                                                                                                
Senator  Dunleavy  wondered  if  the  insurance  was  always                                                                    
funded  by  other  funds  in  the  corporation.  Ms.  Pitney                                                                    
replied in the affirmative.                                                                                                     
                                                                                                                                
                                                                                                                                
Senator  Micciche  remarked  on the  changes  Department  of                                                                    
Health  and Social  Services (DHSS)  on  Medicaid rates.  He                                                                    
wondered why that request was  not included in the operating                                                                    
budget.  Ms. Pitney  responded that  the administration  had                                                                    
prioritized  five administrative  actions to  reduce by  $30                                                                    
million.  She  stated that  there  might  be a  $15  million                                                                    
increase   to   finish   FY  18.   She   stated   that   the                                                                    
administration was looking at other savings options.                                                                            
                                                                                                                                
9:36:09 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman surmised that  not requesting the funds put                                                                    
additional pressure on the department to "fill the gap."                                                                        
                                                                                                                                
Senator  Micciche   remarked  that  the  efforts   were  not                                                                    
documented,  but hoped  that the  effort  would actually  be                                                                    
made.                                                                                                                           
                                                                                                                                
Ms. Pitney addressed page 9, "Capital Amendments."                                                                              
                                                                                                                                
Ms. Pitney highlighted line 1:                                                                                                  
                                                                                                                                
     Line 1                                                                                                                     
     Department: Administration                                                                                                 
     Component: Appropriation                                                                                                   
     Description: Alaska Land Mobile Radio System                                                                               
     The   Alaska   Land   Mobile   Radio   (ALMR)   is   an                                                                    
     interoperable  system that  provides  radio service  to                                                                    
     local,  state   and  federal  agencies.   This  project                                                                    
     contributes  towards  the  necessary upgrades  to  911-                                                                    
     dispatch and public  safety radio communications system                                                                    
     components in  order to  meet the  state's requirements                                                                    
     for  its  share  of  the   ALMR  system.  This  project                                                                    
     provides a portion  of the total funds  needed to bring                                                                    
     the State components current.  An additional $3 million                                                                    
     is  included  in  the  Governor's  FY2017  Supplemental                                                                    
     Budget, bringing the combined  project funding total to                                                                    
     $4,534,600.                                                                                                                
     UGF: $1,534.6                                                                                                              
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $1,534.6                                                                                                            
     Fund Source: 1004 Gen Fund $1,534.6                                                                                        
                                                                                                                                
Ms. Pitney looked at line 2:                                                                                                    
                                                                                                                                
     Line 2                                                                                                                     
     Department: Administration                                                                                                 
     Component: Appropriation                                                                                                   
     Description: Case Management Database System                                                                               
     This project replaces the  Public Defender Agency (PDA)                                                                    
     and  the   Office  of  Public  Advocacy's   (OPA)  case                                                                    
     management database system. The  current system is over                                                                    
     nine years  old and has  been operating without  an on-                                                                    
     going maintenance contract  since December 2012. Should                                                                    
     the current system fail,  it would significantly impact                                                                    
     PDA and OPA's ability to meet client's needs.                                                                              
     UGF: $665.0                                                                                                                
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $0.0                                                                                                              
     Total: $665.0                                                                                                              
     Fund Source: 1004 Gen Fund $665.0                                                                                          
                                                                                                                                
Ms. Pitney looked at lines 3, 4, 5, and 6.                                                                                      
                                                                                                                                
     Line 3                                                                                                                     
     Department: Commerce                                                                                                       
     Component: Appropriation                                                                                                   
     Description:  National   Petroleum  Reserve   -  Alaska                                                                    
     Impact Grant Program                                                                                                       
     This  request  amends  the original  Governor's  FY2018                                                                    
     capital  budget request  by removing  $1,861,964 for  a                                                                    
     new requested  total of $1,378,346. This  change is due                                                                    
     to updated revenue estimates  for FY2018, which results                                                                    
     in FY2018  National Petroleum Reserve -  Alaska (NPR-A)                                                                    
     recommended awards to communities  being lower than the                                                                    
     estimate  provided in  the  original Governor's  FY2018                                                                    
     capital request.  The NPR-A program provides  grants to                                                                    
     communities   for  public   facilities  and   services.                                                                    
     Priority  is given  to  those  communities directly  or                                                                    
     severely impacted by the leases  and development of oil                                                                    
     and  gas  within  the NPR-A.  Funding  comes  from  the                                                                    
     federal government as a share  of the funds received on                                                                    
     leases issued within NPR-A.                                                                                                
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: ($1,862.0)                                                                                                        
     Total: ($1,862.0)                                                                                                          
     Fund Source: 1063 NPR Fund -$1,862.0                                                                                       
                                                                                                                                
     Line 4                                                                                                                     
     Department: Commerce                                                                                                       
     Component: Allocation                                                                                                      
     Description:   City  of   Barrow  -   Local  Government                                                                    
     Operations                                                                                                                 
     This  request  amends  the original  Governor's  FY2018                                                                    
     capital  budget  request  by  adding  allocation  level                                                                    
     funding of $899,392.  This change is due  to the timing                                                                    
     of approval of individual  National Petroleum Reserve -                                                                    
     Alaska grants.  This project  is to  continue providing                                                                    
     essential  public  and  municipal  services  to  Barrow                                                                    
     residents:   cemeteries,   recreation  facilities   and                                                                    
     activities,  business  licensing, alcohol  registration                                                                    
     services, taxicab  regulation services,  community boat                                                                    
     ramps,  multi-use  facilities   and  gathering  places,                                                                    
     Department of  Motor Vehicles (DMV)  services, passport                                                                    
     services,   and  municipal   monitoring  of   laws  and                                                                    
    regulations pertaining to aboriginal Inupiat lands.                                                                         
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $899.4                                                                                                            
     Total: $899.4                                                                                                              
     Fund Source: 1063 NPR Fund $899.4                                                                                          
                                                                                                                                
     Line 5                                                                                                                     
     Department: Commerce                                                                                                      
     Component: Allocation                                                                                                      
     Description:  City  of  Wainwright -  Local  Government                                                                    
     Operations                                                                                                                 
     This  request  amends  the original  Governor's  FY2018                                                                    
     capital  budget  request  by  adding  allocation  level                                                                    
     funding of $222,123.  This change is due  to the timing                                                                    
     of approval of individual  National Petroleum Reserve -                                                                    
     Alaska  grants.  This  project  is  to  supplement  the                                                                    
     operations   and   maintenance   costs   necessary   to                                                                    
     successfully   operate   the    local   government   of                                                                    
     Wainwright: to provide  continued municipal services to                                                                    
     Wainwright  residents,  to  provide staff  support  and                                                                    
     meeting space  for industry and  town meetings,  and to                                                                    
     organize   and   support  cultural   and   recreational                                                                    
     activities.                                                                                                                
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $222.1                                                                                                            
     Total: $222.1                                                                                                              
     Fund Source: 1063 NPR Fund $222.1                                                                                          
                                                                                                                                
     Line 6                                                                                                                     
     Department: Commerce                                                                                                       
     Component: Allocation                                                                                                      
     Description: City of Anaktuvuk Pass - Local Operations                                                                     
     This  request  amends  the original  Governor's  FY2018                                                                    
     capital  budget  request  by  adding  allocation  level                                                                    
     funding of $256,831.  This change is due  to the timing                                                                    
     of approval of individual  National Petroleum Reserve -                                                                    
     Alaska grants.  This project is to  support the general                                                                    
     operations of the City of  Anaktuvuk Pass, enabling the                                                                    
     city to  continue to build  capacity for  effective and                                                                    
     efficient  local government  operation during  a period                                                                    
    of increased NPRA related oil and gas development.                                                                          
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $256.8                                                                                                            
     Total: $256.8                                                                                                              
     Fund Source: 1063 NPR Fund $256.8                                                                                          
                                                                                                                                
Ms. Pitney addressed page 10, lines 7 and 8:                                                                                    
                                                                                                                                
     Line 7                                                                                                                     
     Department: Environ Conservation                                                                                           
     Component: Appropriation                                                                                                   
     Description:   Fairbanks   PM2.5   Nonattainment   Area                                                                    
     Voluntary Heating Device Change Out Program                                                                                
     This  project  continues  a  voluntary  heating  device                                                                    
     change-out  program  for  residents  in  the  Fairbanks                                                                    
     North  Star Borough's  fine particulate  matter (PM2.5)                                                                    
     nonattainment area. The program  is aimed at minimizing                                                                    
     particulate matter emissions  and improving air quality                                                                    
     in the  Borough. The Borough  has the  highest recorded                                                                    
     levels of PM2.5 in the nation. Federal grant funds are                                                                     
     anticipated  from the  Environmental Protection  Agency                                                                    
     (EPA) through the Targeted Air Shed Program.                                                                               
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $0.0                                                                                                                
     Federal: $2,477.3                                                                                                          
     Total: $2,477.3                                                                                                            
     Fund Source: 1002 Fed Rcpts $2,477.3                                                                                       
                                                                                                                                
     Line 8                                                                                                                     
     Department: Transportation                                                                                                 
     Component: Appropriation                                                                                                   
     Description: State Equipment Fleet Replacement                                                                             
     This  project is  for replacement  and/or refurbishment                                                                    
     of equipment  and vehicles which  have reached  the end                                                                    
     of their  useful life cycles, and  continued conversion                                                                    
     of  vehicles to  alternate fuel  and related  alternate                                                                    
     fuel  program  expenses.  Replacing  assets  with  high                                                                    
     operational costs  or safety  concerns with  new assets                                                                    
     maintains  the overall  health of  the fleet  and keeps                                                                    
     rental rates that are charged to agencies low.                                                                             
     UGF: $0.0                                                                                                                  
     DGF: $0.0                                                                                                                  
     Other: $15,000.0                                                                                                           
     Federal: $0.0                                                                                                              
     Total: $15,000.0                                                                                                           
     Fund Source: 1026 Hwy Capitl $15,000.0                                                                                     
                                                                                                                                
9:40:06 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hoffman wondered  whether  it  was a  pass-through                                                                    
grant. Ms. Pitney replied in  the affirmative, and explained                                                                    
that  DEC had  qualified for  the grant  to be  used by  the                                                                    
Fairbanks Borough.                                                                                                              
                                                                                                                                
Ms. Pitney noted that there was  an amount of $15 million to                                                                    
25 million for fleet replacement,  which was not included in                                                                    
the original budget.                                                                                                            
                                                                                                                                
Vice-Chair Bishop remarked  that it was good  to replace the                                                                    
oldest equipment in the fleet.                                                                                                  
                                                                                                                                
Ms. Pitney  looked at page  11, which  was a summary  of the                                                                    
supplemental requests for FY 17.                                                                                                
                                                                                                                                
Co-Chair  Hoffman looked  at  the  supplemental request  for                                                                    
fire  suppression.  He  wondered  whether  an  extreme  fire                                                                    
season was anticipated,  or was the money to  be utilized at                                                                    
a  future  date. Ms.  Pitney  replied  that there  were  two                                                                    
components to  the $15  million: 1)  what was  already spent                                                                    
for FY 17;  and 2) the projected amount for  the spring. She                                                                    
stated  that the  projected  amount  was approximately  $6.5                                                                    
million.                                                                                                                        
                                                                                                                                
9:45:08 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman wondered  if the request would  be used for                                                                    
state lands. Ms. Pitney replied in the affirmative.                                                                             
                                                                                                                                
                                                                                                                                
Co-Chair Hoffman  did not see  a request for  federal funds.                                                                    
He wondered whether  all the fires in the  previous fall and                                                                    
upcoming spring  would be  on only  state lands.  Ms. Pitney                                                                    
responded that  there was budget  language that  allowed for                                                                    
federal receipt  authority. She agreed to  provide the exact                                                                    
amount of federal funds.                                                                                                        
                                                                                                                                
Co-Chair  Hoffman  queried  the split  between  federal  and                                                                    
state  expenditures  compared  to  the  amount  of  land  on                                                                    
federal  and state  land fires.  Ms.  Pitney responded  that                                                                    
there was an  extensive process that ruled  the cost sharing                                                                    
between federal and state land.                                                                                                 
                                                                                                                                
Vice-Chair Bishop  agreed to provide  an in depth  report on                                                                    
Co-Chair Hoffman's concerns.                                                                                                    
                                                                                                                                
Ms. Pitney addressed page 12. She  stated that lines 2 and 3                                                                    
were  technical  amendments  related  debt  service  in  the                                                                    
general  obligations  bonds.   The  amendments  matched  the                                                                    
budget  with  the  accounting  on  issuing  the  bonds.  She                                                                    
remarked  that line  5  was  a request  from  the Office  of                                                                    
Public Advocacy.                                                                                                                
                                                                                                                                
Senator Dunleavy wondered  what the language in  lines 2 and                                                                    
3  allowed to  happen.  He wondered  whether the  amendments                                                                    
allowed for a  sunset extension. Ms. Pitney  replied that it                                                                    
did not  allow more bonding,  but allowed for the  timing of                                                                    
the bonding.                                                                                                                    
                                                                                                                                
Senator  Dunleavy  wondered  whether   it  would  allow  for                                                                    
additional bonding capacity.                                                                                                    
                                                                                                                                
9:50:41 AM                                                                                                                    
                                                                                                                                
KELLY   O'SULLIVAN,   CHIEF   BUDGET  ANALYST,   OFFICE   OF                                                                    
MANAGEMENT   AND  BUDGET,   stated  that   the  bonds   were                                                                    
outstanding,  but were  sold periodically.  The bonds  would                                                                    
have additional issuances beyond the expectation.                                                                               
                                                                                                                                
Co-Chair Hoffman wondered whether  there was a cost overrun.                                                                    
Ms. O'Sullivan responded  that the bonds were  not all sold,                                                                    
so  the bonds  would continue  to  be sold,  because of  the                                                                    
longer length of the projects.                                                                                                  
                                                                                                                                
Senator Dunleavy asked whether there  was a date specific to                                                                    
the  bond.  Ms. O'Sullivan  replied  that  there was  not  a                                                                    
termination date, because it was a capital request.                                                                             
                                                                                                                                
Senator  Dunleavy  wondered  why   there  was  an  extension                                                                    
request. Ms. Pitney  replied that it was a  reduction in the                                                                    
amount  of   funding  in  FY   17,  because  there   was  an                                                                    
expectation that a certain amount  of bonds would be sold at                                                                    
a certain  cost. The  bonds were not  all sold,  because the                                                                    
bonds did  not need to  be sold until the  projects required                                                                    
the money. The spending was less than anticipated.                                                                              
                                                                                                                                
9:52:51 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:54:35 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
9:54:48 AM                                                                                                                    
                                                                                                                                
ROB   CARPENTER,   BUDGET   ANALYST,   LEGISLATIVE   FINANCE                                                                    
DIVISION, explained that  there was originally authorization                                                                    
to  issue  the  2012  Transportation BO  Bond  package.  The                                                                    
original  supplemental   request  from   OMB  had   a  lapse                                                                    
extension  provision for  the money,  but the  provision had                                                                    
already lapsed in  2016. He stated that line  2 reversed the                                                                    
request from  OMB in the  original supplemental  request. He                                                                    
stated that line 3 was  the request for an addition $745,000                                                                    
from the GO Bond premium.                                                                                                       
                                                                                                                                
Co-Chair Hoffman  queried the  total amount  of the  2012 GO                                                                    
Bond. Mr.  Carpenter replied that it  was approximately $300                                                                    
million.                                                                                                                        
                                                                                                                                
Co-Chair  Hoffman queried  the net  effect of  the two  line                                                                    
items. Mr. Carpenter replied that  there was a lapse of $2.3                                                                    
million that was lapsed ending FY 16.                                                                                           
                                                                                                                                
Senator Dunleavy remarked that the  issue did not have to do                                                                    
with the governor-vetoed road projects.                                                                                         
                                                                                                                                
Co-Chair Hoffman stated that the  governor could not veto GO                                                                    
bonds.                                                                                                                          
                                                                                                                                
Ms. Pitney looked at page 13,  line 6, which was the request                                                                    
for the fire suppression activity.                                                                                              
                                                                                                                                
                                                                                                                                
Co-Chair  Hoffman queried  the total  on the  extension. Ms.                                                                    
Pitney replied  that there was a  remainder of approximately                                                                    
$700,000                                                                                                                        
                                                                                                                                
Ms. Pitney  looked at line 8,  which was a reduction  in the                                                                    
early redemption amount in FY 17 by $21 million.                                                                                
                                                                                                                                
Co-Chair Hoffman  wanted to examine  that issue,  because he                                                                    
had put the original funding in that program.                                                                                   
                                                                                                                                
10:01:03 AM                                                                                                                   
AT                                                      EASE                                                                    
                                                                                                                                
10:01:20 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
10:01:23 AM                                                                                                                   
                                                                                                                                
Co-Chair MacKinnon  discussed the  agenda for  the following                                                                    
day.                                                                                                                            
                                                                                                                                
Senator   Dunleavy   queried   the  "game   plan"   by   the                                                                    
administration  to  work with  the  Senate  to decrease  the                                                                    
budget, when  the administration was increasing  the budget.                                                                    
Ms. Pitney  responded that  administration had  attempted to                                                                    
reduce the budget.                                                                                                              
                                                                                                                                
Senator Dunleavy  noted that the supplemental  requests were                                                                    
increases in the budget.                                                                                                        
                                                                                                                                
Senator Olson felt  that there was tension  between the cuts                                                                    
and the people affected by the cuts.                                                                                            
                                                                                                                                
SB  22  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
SB  24  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:03:44 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:03 a.m.                                                                                         

Document Name Date/Time Subjects
022817 SFIN Governor's Amendments 2-28-17.pdf SFIN 2/28/2017 9:00:00 AM
Budget Amendments FY 18