Legislature(2017 - 2018)SENATE FINANCE 532

04/03/2017 01:30 PM FINANCE

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Audio Topic
01:33:15 PM Start
01:34:15 PM HB57
02:27:30 PM Department of Administration Amendments
02:32:58 PM Department of Commerce, Community and Economic Development Amendments
02:35:13 PM Department of Education and Early Development Amendments
02:43:42 PM Department of Health and Social Services Amendments
02:47:03 PM Department of Natural Resources Amendments
02:49:03 PM Department of Public Safety Amendments
03:02:15 PM Department of Transportation and Public Facilities Amendments
03:05:06 PM Executive Branch-wide Appropriations Amendments
03:06:51 PM Legislature
03:09:00 PM Permanent Fund Dividend
03:19:01 PM Fund Transfers
03:36:15 PM HB59
03:37:59 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 57 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved SCS CSHB 57(FIN) Out of Committee
+= HB 59 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved SCS CSHB 59(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                       April 3, 2017                                                                                            
                         1:33 p.m.                                                                                              
                                                                                                                                
1:33:15 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Hoffman called the Senate Finance Committee                                                                            
meeting to order at 1:33 p.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                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
James Armstrong, Staff, Senator Lyman Hoffman; David Teal,                                                                      
Director, Legislative Finance Division;                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSHB 57(FIN) am(brf sup maj fld)(efd fld)                                                                                       
          APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          SCS CSHB 59 (FIN) was REPORTED out of committee                                                                       
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
CSHB 59(FIN)                                                                                                                    
          APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          SCS CSHB 59(FIN) was REPORTED out of committee                                                                        
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 57(FIN) am(brf sup maj fld)(efd fld)                                                                    
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;   capitalizing   funds;   repealing                                                                    
     appropriations; and  making supplemental appropriations                                                                    
     and reappropriations."                                                                                                     
                                                                                                                                
1:34:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon MOVED  to ADOPT  the proposed  committee                                                                    
substitute for  CSHB 57(FIN) am(brf  sup maj  fld)(efd fld),                                                                    
Work Draft 30-GH1855\M (Wallace, 3/31/17).                                                                                      
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
1:34:33 PM                                                                                                                    
                                                                                                                                
JAMES  ARMSTRONG, STAFF,  SENATOR  LYMAN HOFFMAN,  explained                                                                    
the  committee substitute.  He referred  to a  document from                                                                    
the Legislative Finance Division  (LFD), "Summary of Changes                                                                    
Senate   Committee  Substitute   2   and  Senate   Committee                                                                    
Substitute  3" (copy  on file).  The  document outlined  the                                                                    
changes to the technical CS and the current CS.                                                                                 
                                                                                                                                
Co-Chair Hoffman stated that he would pause for questions.                                                                      
                                                                                                                                
1:35:58 PM                                                                                                                    
                                                                                                                                
Mr. Armstrong discussed the document:                                                                                           
                                                                                                                                
     Section 1 (Numbers) of Operating and Mental Health                                                                         
     Bill Department of Administration                                                                                          
          1. Public  Broadcasting Commission  restores $46.7                                                                    
          UGF, to the Governor's requested level.                                                                               
          2. Public  Broadcasting - Radio  restores $2,036.6                                                                    
          UGF, to the Governor's requested level.                                                                               
          3.  Public  Broadcasting  - T.V.  restores  $633.3                                                                    
          UGF, to the Governor's requested level.                                                                               
          4. Satellite  Infrastructure restores  $160.0 UGF,                                                                    
          to the Governor's requested level.                                                                                    
                                                                                                                                
     Department of Corrections                                                                                                  
          1.   Office  of   the  Commissioner   adds  $175.0                                                                    
          Statutory Designated Program  Receipt authority to                                                                    
          receive reimbursement from  Community Resource for                                                                    
          Justice  for  a  Diversion Planner  as  a  onetime                                                                    
          increment.                                                                                                            
                                                                                                                                
     Department of Natural Resources                                                                                            
          1.  Mental   Health  Trust   Lands  Administration                                                                    
          restores  $250.0   MHTAAR  for   Public  Relations                                                                    
          Contracting, to the Governor's requested level.                                                                       
          2. Mining, Land and  Water adds $1 million Federal                                                                    
          Receipt   authority   for    the   Hunting   Guide                                                                    
          Concession  Program   as  a   Temporary  Increment                                                                    
          (FY18-FY19).                                                                                                          
                                                                                                                                
     Department of Public Safety                                                                                                
          1.  Council   on  Domestic  Violence   and  Sexual                                                                    
          Assault  adds intent  language as  follows "It  is                                                                    
          the  intent  of  the legislature  that  recidivism                                                                    
          reduction funding appropriated  in this allocation                                                                    
          may be used to fund victim services programs."                                                                        
                                                                                                                                
     Department of Revenue                                                                                                      
          1.  Child  Support  Services Division  adds  $50.0                                                                    
          General Fund/Program Receipts  (1005) to section 1                                                                    
          for  Paternity Testing.  This addition  replaces a                                                                    
          language  section appropriation  with an  estimate                                                                    
          of $46.0 General Fund/Program Receipts (1005).                                                                        
          2. Mental Health  Trust Operations restores $150.0                                                                    
          A/D T  and P Funds  (1180) for the  FASD Campaign,                                                                    
          to the Governor's requested level.                                                                                    
          3. Mental  Health Trust Operations adds  $43.3 MHT                                                                    
          Admin (1094)  for increase travel  and contractual                                                                    
          services.                                                                                                             
                                                                                                                                
    Department of Transportation and Public Facilities                                                                          
          1. Marine  Vessel Operations replaces  $40 million                                                                    
          UGF  (1004)  with  Alaska  Marine  Highway  System                                                                    
          Funds (1076).                                                                                                         
          2. Marine Vessel  Operations replaces $4,750.0 UGF                                                                    
          (1004)   with  Transportation   Maintenance  Funds                                                                    
          (1249) from the Capital and Mental Health Budget.                                                                     
                                                                                                                                
     University of Alaska                                                                                                       
          1.  Budget  Reductions  and  Additions  adds  $1.0                                                                    
          Special License  Plate Receipts (1234)  to section                                                                    
          1 for  University of Alaska Special  License Plate                                                                    
          collections.  This  addition replaces  a  language                                                                    
          section  appropriation with  an  estimate of  $0.6                                                                    
          Special License Plates Receipts (1234).                                                                               
                                                                                                                                
     Legislature                                                                                                                
          1.  Salaries and  Allowances deletes  $1,135.8 UGF                                                                    
          for House and Senate per diem for 90-day session.                                                                     
          2. Special Session/Contingency  deletes $378.6 UGF                                                                    
          for House  and Senate per diem  for 30-day special                                                                    
          session.                                                                                                              
          3. New  appropriation - House Session  per diem a.                                                                    
          New  allocation -  90-day  Session funds  $275/day                                                                    
          per diem with $977.6 UGF b. New allocation - 30-                                                                      
          day Extended Session funds  $275/day per diem with                                                                    
          $325.9 UGF                                                                                                            
          4. New appropriation - Senate Session per diem                                                                        
               a. New allocation - 90-day Session funds                                                                         
               $275/day per diem with $488.8 UGF                                                                                
               b. New allocation - 30-day Extended Session                                                                      
               funds $275/day per diem with $162.9 UGF                                                                          
                                                                                                                                
1:40:39 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman surmised that the language gave the                                                                            
department as much flexibility as possible. Mr. Armstrong                                                                       
agreed.                                                                                                                         
                                                                                                                                
Mr. Armstrong looked at Section 4:                                                                                              
                                                                                                                                
     Section 4 (Numbers) of Operating Budget                                                                                    
          Personal  Services  reductions totaling  $16,791.2                                                                    
          UGF  -  includes   the  following  language  "Each                                                                    
          commissioner   or   commissioner  equivalent   may                                                                    
          transfer    the    unrestricted   general    funds                                                                    
          appropriated in  section 4  between appropriations                                                                    
          within the specified department or agency."                                                                           
                                                                                                                                
    Section 4 (Capital/Numbers) of Mental Health Budget                                                                         
          Department    of    Transportation   and    Public                                                                    
          Facilities                                                                                                            
           Adds   a  Governor's   requested  Mental   Health                                                                    
          capital    project     titled    MH    Coordinated                                                                    
          Transportation and Vehicles  and funds the project                                                                    
          with $1 million  General Fund/Mental Health (1037)                                                                    
          instead   of   Transportation  Maintenance   Funds                                                                    
          (1249).  It also  maintains  $300 thousand  Mental                                                                    
          Health Trust Authority  Authorized Receipts (1092)                                                                    
          for the  project. This fund source  change removes                                                                    
          all  Transportation  Maintenance  Funds  from  the                                                                    
          Mental Health Bill.                                                                                                   
                                                                                                                                
1:41:30 PM                                                                                                                    
                                                                                                                                
Mr. Armstrong addressed the language section:                                                                                   
                                                                                                                                
     Language Sections                                                                                                          
                                                                                                                                
     1.  Page 65  - adds  an appropriation  transferring the                                                                    
     unexpended  and unobligated  balance,  estimated to  be                                                                    
     $17  million,   from  the  Anchorage,   U-Med  district                                                                    
     northern access  appropriation to the  Public Education                                                                    
     Fund in FY17 (supplemental).                                                                                               
                                                                                                                                
     2. Page 67  - deletes a language  appropriation with an                                                                    
     estimate  of $46.0  General  Fund/Program Receipts  for                                                                    
     Paternity  Testing   in  the  Child   Support  Services                                                                    
     Division.  $50.0 General  Fund/Program Receipts  (1005)                                                                    
     is added to section 1 for this purpose.                                                                                    
                                                                                                                                
     3. Page 67  - deletes a language  appropriation with an                                                                    
     estimate  of  $0.6   Special  License  Plates  Receipts                                                                    
     (1234) for  University of Alaska Special  License Plate                                                                    
     collections.  $1.0  Special   License  Plates  Receipts                                                                    
     (1234) is added to section 1 for this purpose.                                                                             
                                                                                                                                
     4.  Page   67,  Section  20(a)-(c)  -   changes  are  a                                                                    
     technical correction  fixing the backstop  language for                                                                    
     the Department of  Transportation and Public Facilities                                                                    
     and   Department   of    Public   Safety.   Section   1                                                                    
     appropriates  funding related  to  the  Motor Fuel  Tax                                                                    
     legislation;  if a  bill  fails to  pass,  then UGF  is                                                                    
     appropriated through  these sections and  are estimated                                                                    
     to be zero.                                                                                                                
                                                                                                                                
     5. Page 75, Section 25 -                                                                                                   
                                                                                                                                
          a. Subsection  (g) deposits $1,090,093.9  UGF into                                                                    
          the Public  Education Fund for  Foundation Program                                                                    
          -  funding 94.3  percent in  FY18 (a  reduction of                                                                    
          $86,383.7  from  the  Governor's  requested  level                                                                    
          when  combined with  the $17  million UGF  deposit                                                                    
         into the Public Education Fund in FY17).                                                                               
                                                                                                                                
          b. Subsection (h) deposits  $79,029.6 UGF into the                                                                    
          Public Education  Fund for Pupil  Transportation -                                                                    
          funding  100  percent  in  FY18  (an  increase  of                                                                    
          $6,409.8 from the Governor's requested level).                                                                        
                                                                                                                                
     6.  Page  76,  Section   25(j)  -  adds  an  open-ended                                                                    
     appropriation for  the amount necessary to  pay medical                                                                    
     insurance  premiums   and  the  Department   of  Public                                                                    
     Safety's costs associated  with administering the peace                                                                    
     officer and  firefighter survivors' fund,  estimated to                                                                    
     be  $70.1 UGF.  Normally this  item would  be a  fiscal                                                                    
     note   appropriation   but  open-ended   appropriations                                                                    
     cannot  be  placed  in  the   numbers  section  of  the                                                                    
     operating bill.  This appropriation is  contingent upon                                                                    
     a  bill passing  and being  signed into  law.   Section                                                                    
     35(e)  also   adds  contingency  language   related  to                                                                    
     passage of the legislation.                                                                                                
                                                                                                                                
     7. Page  78, Section  26(c) - appropriates  $30 million                                                                    
     from  the  unrestricted  general  fund  to  the  Marine                                                                    
     Highway Fund in  FY17 (supplemental). Backstop language                                                                    
     is also  included in Section  35(f) which  would reduce                                                                    
     the appropriation to only the  amount available in FY17                                                                    
     (the  amount available  from the  Constitutional Budget                                                                    
     Reserve to the general  fund cannot exceed $100 million                                                                    
     in FY17  for additional appropriations made  during the                                                                    
     2017 session).                                                                                                             
                                                                                                                                
     8.  Page 84,  Section 31(c)  - adds  CBR borrowing  and                                                                    
     interest repayment language.                                                                                               
                                                                                                                                
     9. Page  84, Section 34(b)  and (c) -  adds retroactive                                                                    
     effective date clauses.                                                                                                    
                                                                                                                                
     10. Page 85, Section  35(c) - adds contingency language                                                                    
     which provides  that if the Motor  Fuel Tax legislation                                                                    
     is  less than  the  level the  Governor proposed,  then                                                                    
     section 20(b) is effective.                                                                                                
                                                                                                                                
     11. Page 85, Section  35(d) - adds contingency language                                                                    
     which provides  that if the Motor  Fuel Tax legislation                                                                    
     fails, then 20(c) is effective.                                                                                            
                                                                                                                                
     12. Page 85, Section  35(e) - adds contingency language                                                                    
     that if  the Peace  Officer and  Firefighter Survivors'                                                                    
     Fund legislation fails, then 25(j) is not effective.                                                                       
                                                                                                                                
     13.  Page 85,  Section 35(f)  - Adds  backstop language                                                                    
     reducing  the  appropriation  for $30  million  to  the                                                                    
     Alaska  Marine Highways  Fund in  26(c)  by the  amount                                                                    
     necessary  to  appropriate  no  more  than  the  amount                                                                    
     available  in  FY17  (the  amount  available  from  the                                                                    
     Constitutional Budget Reserve to the general fund                                                                          
     cannot exceed $100 million in FY17 for additional                                                                          
     appropriations made during the 2017 session).                                                                              
                                                                                                                                
     Legislative Legal made editorial and technical changes                                                                     
     throughout the bill that are not included in this                                                                          
     list.                                                                                                                      
                                                                                                                                
1:46:37 PM                                                                                                                    
                                                                                                                                
Mr. Armstrong looked at Document  1 from LFD (copy on file).                                                                    
He explained that the document  spoke to all funds. He noted                                                                    
that column 5  was the Senate subcommittee  version 3 total.                                                                    
The current  version was  on the bottom  of column  5, which                                                                    
proposed to spend the total  agency and statewide operations                                                                    
of  $8,417,364,400.  He  noted  that  column  5  on  page  2                                                                    
captured the dividend amount. The  dividend was based on the                                                                    
number  contained   in  SB  26,   with  total   spending  at                                                                    
$9,433,321,400.                                                                                                                 
                                                                                                                                
Co-Chair  Hoffman surmised  that the  dividend appropriation                                                                    
was  not  contingent  on passage  of  the  legislature.  Mr.                                                                    
Armstrong agreed.                                                                                                               
                                                                                                                                
Mr. Armstrong looked at Document  2 from LFD (copy on file).                                                                    
The  document  reflected  unrestricted  general  fund  (UGF)                                                                    
spending. He noted that the  total spending of UGF in column                                                                    
5  was $4,014,498,200.  He stated  that it  reflected a  UGF                                                                    
reduction  from  the  management plan  in  the  supplemental                                                                    
totals of approximately $337 million.  He noted that page 2,                                                                    
column 5 showed  the draw for FY 18 from  the Permanent Fund                                                                    
Earnings  Reserve  Account   (ERA)  for  dividends  totaling                                                                    
$4,733,455,200 of UGF.                                                                                                          
                                                                                                                                
Senator  Micciche  surmised  that  the  total  included  the                                                                    
dividend payout. Mr. Armstrong agreed.                                                                                          
                                                                                                                                
1:50:30 PM                                                                                                                    
                                                                                                                                
Mr. Armstrong looked at Document  3 from LFD (copy on file).                                                                    
He stated that  he already spoke to the  changes outlined in                                                                    
the document.                                                                                                                   
                                                                                                                                
Mr. Armstrong looked at Document  4 from LFD (copy on file).                                                                    
He  stated  that  the document  contained  the  supplemental                                                                    
items in the committee substitute.                                                                                              
                                                                                                                                
                                                                                                                                
Mr.  Armstrong  looked  at  Item 6,  which  was  the  intent                                                                    
language in recidivism.                                                                                                         
                                                                                                                                
Co-Chair Hoffman WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
1:53:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:57:41 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:57:46 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  announced that  the budget did  not look                                                                    
like  a budget  for a  smaller organization.  She looked  at                                                                    
Schedule 1,  and noted the  Department of Health  and Social                                                                    
Services  (DHSS) section.  She  looked at  the $354  million                                                                    
cut, and  the Senate did not  cut that money from  DHSS. She                                                                    
requested a discussion about that  number. She remarked that                                                                    
Schedule 1  looked at  all funds, and  Schedule 2  looked at                                                                    
UGF.  She  stressed  that  there   was  a  reason  for  that                                                                    
separation.                                                                                                                     
                                                                                                                                
1:59:15 PM                                                                                                                    
                                                                                                                                
DAVID   TEAL,   DIRECTOR,  LEGISLATIVE   FINANCE   DIVISION,                                                                    
explained that the number was  a large apparent cut, but the                                                                    
comparison  with the  FY 18  budget was  tied to  the FY  17                                                                    
spending. He noted that column 2 showed supplemental funds.                                                                     
                                                                                                                                
Co-Chair  MacKinnon stressed  that  the impact  on the  DHSS                                                                    
budget may not  be known until the following  year. Mr. Teal                                                                    
agreed.                                                                                                                         
                                                                                                                                
Co-Chair MacKinnon  wondered whether the funds  were federal                                                                    
or UGF. Mr. Teal replied that it was mostly federal funds.                                                                      
                                                                                                                                
Co-Chair  Hoffman  looked  at   Schedule  2,  and  requested                                                                    
information  about the  29.8 percent  for the  Department of                                                                    
Commerce,  Community and  Economic  Development (DCCED);  23                                                                    
percent for  Department of Natural Resources  (DNR); and the                                                                    
57.8  percent for  Department of  Transportation and  Public                                                                    
Facilities  (DOT/PF). He  wondered  why  those numbers  were                                                                    
relatively  high.  Mr.  Armstrong  replied  that  the  DCCED                                                                    
budget  was funding  for  tourism that  was  moved into  the                                                                    
Capital Budget.                                                                                                                 
                                                                                                                                
Co-Chair  Hoffman   queried  the  budget  for   the  tourism                                                                    
section.  Mr.  Armstrong  replied  that the  number  was  $3                                                                    
million.  He  furthered  that  the   reduction  to  DNR  was                                                                    
associated to  firefighting efforts in the  current year. He                                                                    
looked at  the DOT/PF  budget, which  showed a  57.8 percent                                                                    
reduction. He remarked that there  was a fund source switch,                                                                    
as it was combined with the motor fuel tax.                                                                                     
                                                                                                                                
There  being NO  further OBJECTION,  the proposed  committee                                                                    
substitute was ADOPTED.                                                                                                         
                                                                                                                                
2:04:35 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  explained that  there was a  new amendment                                                                    
process.                                                                                                                        
                                                                                                                                
Senator  Dunleavy queried  the actual  reductions, excluding                                                                    
supplemental,   from  FY   17  to   the  current   committee                                                                    
substitute.  Mr.  Teal  replied that  the  comparisons  were                                                                    
different, depending on fund source.                                                                                            
                                                                                                                                
Senator  Dunleavy  queried  the   UGF  reduction.  Mr.  Teal                                                                    
replied that there was a reduction of $336.9 million.                                                                           
                                                                                                                                
Senator Dunleavy wondered whether  the $262 million included                                                                    
the motor fuels tax. Mr. Teal replied in the affirmative.                                                                       
                                                                                                                                
Senator Dunleavy queried the amount  of the motor fuels tax.                                                                    
Mr. Teal replied that it was $70 million.                                                                                       
                                                                                                                                
Mr.  Teal  explained that  the  reduction  was $337  million                                                                    
minus   $75  million,   totaling  $262   million.  He   then                                                                    
subtracted  $70 million  from  $262  million, equaling  $192                                                                    
million.                                                                                                                        
                                                                                                                                
2:09:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:23:27 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:23:34 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman  noted there was a  new document addressing                                                                    
the current budget reductions in general fund.                                                                                  
                                                                                                                                
Mr. Teal shared the comparisons.                                                                                                
                                                                                                                                
Co-Chair Hoffman queried the  definition of the supplemental                                                                    
budget.  He  surmised  that  it  was  expenditures  in  real                                                                    
dollars   in   the   fiscal  year,   but   were   originally                                                                    
unanticipated. Mr. Teal replied in the affirmative.                                                                             
                                                                                                                                
Co-Chair Hoffman announced that  it was impossible to ignore                                                                    
supplemental items.                                                                                                             
                                                                                                                                
^DEPARTMENT OF ADMINISTRATION AMENDMENTS                                                                                      
                                                                                                                                
2:27:30 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy  MOVED to  ADOPT Amendments  S DOA  11, 13,                                                                    
15, 17 (copies on file):                                                                                                        
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy                                                                                                              
OPPOSED:  Micciche,  Olson,  Von   Imhof,  Bishop,  Hoffman,                                                                    
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
Senator Dunleavy  MOVED to  ADOPT Amendments  S DOA  14, 16,                                                                    
18, and 12 (copies on file). He explained the amendments.                                                                       
                                                                                                                                
Co-Chair Hoffman  OBJECTED for DISCUSSION. He  stressed that                                                                    
the communication components were essential to Alaskans.                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy                                                                                                              
OPPOSED:  Micciche,  Olson,  Von   Imhof,  Bishop,  Hoffman,                                                                    
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
2:31:24 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:32:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
^DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT                                                                   
AMENDMENTS                                                                                                                    
                                                                                                                                
2:32:58 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman WITHDREW. Amendment S CED 4.                                                                                   
                                                                                                                                
Senator Dunleavy MOVED to ADOPT Amendment S CED 5 (copy on                                                                      
file).                                                                                                                          
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Co-Chair Hoffman OBJECTED.                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy                                                                                                              
OPPOSED: Micciche, Olson, Bishop, Hoffman, MacKinnon                                                                            
                                                                                                                                
Senator Von Imhof was absent from the vote.                                                                                     
                                                                                                                                
The MOTION FAILED (5/1).                                                                                                        
                                                                                                                                
^DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT AMENDMENTS                                                                     
                                                                                                                                
2:35:13 PM                                                                                                                    
                                                                                                                                
Senator Olson MOVED to ADOPT Amendments S DOE 15, DOE 16                                                                        
(copies on file).                                                                                                               
                                                                                                                                
Senator Olson explained the amendments.                                                                                         
                                                                                                                                
Co-Chair Hoffman remarked that there was an attempt to not                                                                      
expand programs until the fiscal issues were resolved.                                                                          
                                                                                                                                
Senator Olson stated that he had filed a related bill.                                                                          
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Olson                                                                                                                 
OPPOSED: Micciche, Dunleavy, Von Imhof, Bishop, Hoffman,                                                                        
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
2:37:47 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:38:01 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
2:38:04 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy MOVED to ADOPT Amendment S DOE 17 (copy on                                                                     
file):                                                                                                                          
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Co-Chair Hoffman MAINTAINED his objection.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy, Olson                                                                                                       
OPPOSED: Micciche, Von Imhof, Bishop, Hoffman, MacKinnon                                                                        
                                                                                                                                
The MOTION FAILED (5/2).                                                                                                        
                                                                                                                                
2:39:52 PM                                                                                                                    
                                                                                                                                
Senator Olson MOVED to ADOPT Amendments S DOE 18, DOE 19                                                                        
(copy on file):                                                                                                                 
                                                                                                                                
Senator Olson explained the amendments.                                                                                         
                                                                                                                                
Co-Chair Hoffman OBJECTED.                                                                                                      
                                                                                                                                
Senator Olson stressed that these were important programs.                                                                      
                                                                                                                                
Co-Chair Hoffman felt that the senate may consider these                                                                        
issues in the future.                                                                                                           
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Olson                                                                                                                 
OPPOSED: Micciche, Dunleavy, Von Imhof, Bishop, Hoffman,                                                                        
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES AMENDMENTS                                                                          
                                                                                                                                
2:43:42 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy MOVED to ADOPT  Amendment S HSS 19 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Co-Chair  Hoffman  queried  comments from  the  subcommittee                                                                    
chair.                                                                                                                          
                                                                                                                                
Senator  Micciche  stated  that   he  did  not  support  the                                                                    
amendment.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy                                                                                                              
OPPOSED:  Micciche,  Olson,  Von   Imhof,  Bishop,  Hoffman,                                                                    
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
^DEPARTMENT OF NATURAL RESOURCES AMENDMENTS                                                                                   
                                                                                                                                
2:47:03 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy  MOVED to  ADOPT Amendment S  DNR 3,  DNR 4                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Co-Chair   Hoffman  surmised   that   the  amendments   were                                                                    
combined.                                                                                                                       
                                                                                                                                
Senator Dunleavy agreed.                                                                                                        
                                                                                                                                
Vice-Chair Bishop  stated that  the subcommittee  found that                                                                    
it was prudent to support the amendment.                                                                                        
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy                                                                                                              
OPPOSED:  Micciche,  Olson,  Von   Imhof,  Bishop,  Hoffman,                                                                    
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
^DEPARTMENT OF PUBLIC SAFETY AMENDMENTS                                                                                       
                                                                                                                                
2:49:03 PM                                                                                                                    
                                                                                                                                
Senator Olson  MOVED to ADOPT  Amendments S DPS 18,  19, 20,                                                                    
21 (copy on file):                                                                                                              
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Olson explained the amendments.                                                                                         
                                                                                                                                
Co-Chair  Hoffman  queried  comments from  the  subcommittee                                                                    
chair.                                                                                                                          
                                                                                                                                
Senator Micciche  explained that there  was a full  focus on                                                                    
the  charge  and mission  through  the  changes. The  agency                                                                    
received increased funding.                                                                                                     
                                                                                                                                
Senator Olson pointed  out that there should  be funding for                                                                    
protection of the most vulnerable people.                                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Olson                                                                                                                 
OPPOSED:  Micciche,  Dunleavy, Von  Imhof, Bishop,  Hoffman,                                                                    
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
2:54:39 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:01:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Hoffman stated that Amendments  DOT 15, 16, 17, and                                                                    
18 have been withdrawn.                                                                                                         
                                                                                                                                
^DEPARTMENT   OF   TRANSPORTATION  AND   PUBLIC   FACILITIES                                                                  
AMENDMENTS                                                                                                                    
                                                                                                                                
3:02:15 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy MOVED to ADOPT  Amendment S DOT 19 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Vice-Chair  Bishop remarked  that there  was a  reduction in                                                                    
the fund,  and the commercial  vehicle rates were  raised by                                                                    
the department.                                                                                                                 
                                                                                                                                
Mr.  Armstrong  explained  that there  was  a  reduction  of                                                                    
approximately  two-thirds.  He did  not  feel  that the  $28                                                                    
million could be "absorbed."                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy, MacKinnon                                                                                                   
OPPOSED: Micciche, Olson, Von Imhof, Bishop, Hoffman                                                                            
                                                                                                                                
The MOTION FAILED (5/2).                                                                                                        
                                                                                                                                
^EXECUTIVE BRANCH-WIDE APPROPRIATIONS AMENDMENTS                                                                              
                                                                                                                                
3:05:06 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy MOVED  to ADOPT Amendment S RED  1 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Co-Chair  Hoffman explained  that  there was  still work  to                                                                    
reduce  the  budget  further.  The  governor  stressed  that                                                                    
unallocated reductions were difficult  to manage. He opposed                                                                    
the amendment.                                                                                                                  
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy                                                                                                              
OPPOSED:  Micciche,  Olson,  Von   Imhof,  Bishop,  Hoffman,                                                                    
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
^LEGISLATURE                                                                                                                  
                                                                                                                                
3:06:51 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy MOVED to ADOPT Amendment S LEG 10 (copy on                                                                     
file):                                                                                                                          
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Co-Chair Hoffman noted that the Legislative Council was a                                                                       
joint committee of the House and the Senate. He opposed the                                                                     
amendment.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy, Von Imhof, MacKinnon                                                                                        
OPPOSED: Micciche, Olson, Bishop, Hoffman                                                                                       
                                                                                                                                
The MOTION FAILED (4/3).                                                                                                        
                                                                                                                                
^PERMANENT FUND DIVIDEND                                                                                                      
                                                                                                                                
3:09:00 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy MOVED to ADOPT Amendment S PFD 1 (copy on                                                                      
file):                                                                                                                          
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
3:09:19 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:15:09 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Dunleavy explained the amendment.                                                                                       
                                                                                                                                
Mr. Armstrong stated that PFD 1 was the fund source change.                                                                     
                                                                                                                                
Senator Dunleavy was mistaken.                                                                                                  
                                                                                                                                
3:16:32 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:17:07 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Senator Dunleavy WITHDREW his motion.                                                                                           
                                                                                                                                
Senator Dunleavy  MOVED to  ADOPT Amendments S  PFD 1  and 2                                                                    
(copy on file):                                                                                                                 
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
Senator Dunleavy explained the amendments.                                                                                      
                                                                                                                                
IN FAVOR: Dunleavy                                                                                                              
OPPOSED:  Micciche,  Olson,  Von   Imhof,  Bishop,  Hoffman,                                                                    
MacKinnon                                                                                                                       
                                                                                                                                
The MOTION FAILED (6/1).                                                                                                        
                                                                                                                                
^FUND TRANSFERS                                                                                                               
                                                                                                                                
3:19:01 PM                                                                                                                    
                                                                                                                                
Senator Dunleavy MOVED  to ADOPT Amendment S XFR  1 (copy on                                                                    
file):                                                                                                                          
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
IN FAVOR: Dunleavy, Olson                                                                                                       
OPPOSED: Micciche, Von Imhof, Bishop, Hoffman, MacKinnon                                                                        
                                                                                                                                
The MOTION FAILED (5/2).                                                                                                        
                                                                                                                                
Mr. Armstrong  thanked the committee  staff for the  work on                                                                    
the budget.                                                                                                                     
                                                                                                                                
Co-Chair  Hoffman  stressed  that  there  was  a  monumental                                                                    
budget  deficit.   He  stated  that  the   legislature  must                                                                    
continue to reduce the budget and spending.                                                                                     
                                                                                                                                
Co-Chair    MacKinnon   disclosed    her   close    economic                                                                    
relationship  regarding  her  husband and  the  Construction                                                                    
Education Foundation.                                                                                                           
                                                                                                                                
Vice-Chair Bishop thanked the subcommittee members.                                                                             
                                                                                                                                
3:23:36 PM                                                                                                                    
                                                                                                                                
Senator  Micciche   remarked  that  the   agency  operations                                                                    
reductions  were $211  million,  which moved  closer to  the                                                                    
budget goal.  He felt that  the reductions were close  to 50                                                                    
percent from the operating and capital budgets.                                                                                 
                                                                                                                                
Senator Dunleavy felt  that the Senate had  worked to reduce                                                                    
the  budget,  and  felt  that there  needed  to  be  further                                                                    
reductions.                                                                                                                     
                                                                                                                                
Co-Chair MacKinnon  MOVED to REPORT  SCS HB 57 (FIN)  out of                                                                    
committee with individual recommendations.                                                                                      
                                                                                                                                
SCS HB  57 (FIN) was  REPORTED out  of committee with  a "do                                                                    
pass" recommendation.                                                                                                           
                                                                                                                                
3:29:29 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:31:34 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon stressed that  there are multiple ways to                                                                    
cut the budget.                                                                                                                 
                                                                                                                                
CS FOR HOUSE BILL NO. 59(FIN)                                                                                                 
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive mental health  program; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
3:36:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon MOVED  to ADOPT  the proposed  committee                                                                    
substitute   for  CSHB   59(FIN),  Work   Draft  30-GH1856\R                                                                    
(Wallace, 3/31/17).                                                                                                             
                                                                                                                                
Co-Chair Hoffman OBJECTED for DISCUSSION.                                                                                       
                                                                                                                                
JAMES  ARMSTRONG, STAFF,  SENATOR  LYMAN HOFFMAN,  explained                                                                    
the committee substitute.                                                                                                       
                                                                                                                                
Co-Chair  Hoffman WITHDREW  his  OBJECTION.  There being  NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair MacKinnon MOVED to REPORT SCS CSHB 59 (FIN) from                                                                       
committee with individual recommendations. There being NO                                                                       
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
SCS CS HB was REPORTED out of committee with a "do pass"                                                                        
recommendation.                                                                                                                 
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:37:59 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:37 p.m.