Legislature(2005 - 2006)
04/11/2005 06:08 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| HB66 || HB67 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
`MINUTES
SENATE FINANCE COMMITTEE
April 11, 2005
6:08 p.m.
CALL TO ORDER
Co-Chair Wilken convened the meeting at approximately 6:08:23 PM.
PRESENT
Senator Lyda Green, Co-Chair
Senator Gary Wilken, Co-Chair
Senator Con Bunde, Vice Chair
Senator Fred Dyson
Senator Bert Stedman
Senator Lyman Hoffman
Senator Donny Olson
Also Attending: MAJOR GENERAL CRAIG CAMPBELL, Adjutant
General/Commissioner, Department of Military and Veterans Affairs;
JAMES ARMSTRONG, Staff to Senator Gary Wilken; DAN SPENCER,
Director, Division of Administrative Services, Department of Public
Safety; NANCY SLAGLE, Director, Division of Administrative
Services, Department of Transportation and Public Facilities; SUSAN
TAYLOR, Director, Division of Administrative Services, Department
of Revenue; MIKE MAHER, Director, Division of Information and
Administrative Services, Department of Environmental Conservation;
PORTIA PARKER, Deputy Commissioner, Department of Corrections;
CHRIS CHRISTENSEN, Deputy Administrative Director, Alaska Court
System
Attending via Teleconference: There were no teleconference
participants.
SUMMARY INFORMATION
HB 66-APPROP: MENTAL HEALTH BUDGET
HB 67-APPROP: OPERATING BUDGET/LOANS/FUNDS
The Committee heard the Subcommittees' Operating Budget
recommendations for the Department of Military and Veterans
Affairs, the Department of Public Safety, the Department of
Transportation and Public Facilities, the Department of Health and
Social Services, the Department of Revenue, the Department of
Administration, the Department of Law, the Office of the Governor,
the Department of Environmental Conservation, the Department of
Corrections, the Alaska Court System, the Legislature, and the
Department of Education and Early Development. Draft committee
substitutes were provided, and the bills were held in Committee.
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 66(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."
CS FOR HOUSE BILL NO. 67(FIN)(brf sup maj fld)
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; and providing for an effective date."
This was the second hearing for these bills in the Senate Finance
Committee.
Co-Chair Wilken communicated that this hearing would conclude the
Subcommittees' reports to the full Committee. Draft committee
substitutes are being finalized with the anticipation that any
changes brought forward during this hearing would be "technical in
nature". The goal would be to have the new committee substitutes
available prior to the public testimony hearing scheduled for April
12, 2005.
Co-Chair Wilken requested that, rather than the Subcommittee
discussions concentrating on small budget details, the reports
would speak to general fund allocations exceeding $50,000 and any
significant federal funding issues. Missions and Measures
information and pertinent intent language should also be presented.
Department of Military and Veterans Affairs
Senator Fred Dyson, Chair
Senator Charlie Huggins
Senator Johnny Ellis
Subcommittee Budgetary Highlights
GF Total
FY 05 Management Plan = $9,175,800 $35,758,600
Adjusted Base = $9,404,400 $36,358,800
GovA+Ed = $12,315,300 $40,415,800
Changes Recommended by subcommittee
General Fund = $2,910.900 over Adjusted Base
= No change from Governor's Amended
All Funds = $3,814,800 over Adjusted Base
= $ 242,200 below Governor's Amended
Senator Dyson, Chair of the Department of Military and Veterans
Affairs (DMVA) Subcommittee, voiced appreciation for the
"transparency and integrity" shown by the Department during the
subcommittee meetings. Subcommittee members' "hard questions" were
answered in an honest and direct manner. The Subcommittee
supported, with one exception, the entirety of the Department's
requested budget increments. That lone exception, which pertained
to the funding for the Local Emergency Planning Committees (LEPCs),
was the result of confusion on the part of the Subcommittee in
regards to the funding mechanism of the program. The LEPCs had been
provided $325,000 in FY 04, $300,000 in FY 05, and had requested
$300,000 for FY 06. As a consequence of the Subcommittee's funding
mechanism misunderstanding, the program would only receive $57,800
resulting from the three-percent of the balance of the Oil and
Hazardous Substance Release Prevention and Response Fund formula.
The Subcommittee "shorted the program $242,000". To that point, he
requested that the Department's budget be adjusted upward to
compensate for that shortage.
MAJOR GENERAL CRAIG CAMPBELL, Adjutant General/Commissioner,
Department of Military and Veterans Affairs, affirmed that $300,000
would be required to support the program in FY 06.
Co-Chair Wilken informed the Committee that the LEPC program would
be provided for through a separate Department of Environmental
Conservation budgetary item.
JAMES ARMSTRONG, Staff to Co-Chair Wilken, affirmed. A $150,000
decrement from the Department of Environmental Conservation Oil and
Gas Funding would be applied, via an amendment, to the LEPC
program. This amendment has not of yet been drafted.
Senator Dyson appreciated that action, but pointed out that the
program would continue to be short approximately $100,000. The
program must be fully funded in order to be effective or be
abandoned otherwise. This program would allow local communities to
plan for emergencies such as fires in addition to Homeland Security
measures.
Major General Campbell noted that approximately 20 LEPCs exist in
the State; in large communities such as the Municipality of
Anchorage, the LEPC program works in conjunction with local
officials to develop appropriate emergency plans. However, in small
communities, the LEPC might be the sole emergency-planning
organizer. "These are important committees" and more communities
are asking to participate.
Co-Chair Wilken noted that he and his staff would work with Senator
to identify additional non-general fund money to support the
program.
Senator Dyson communicated that many of the Missions and Measures
efforts conducted by the Department are "impressive". 92-percent of
The Alaska Military Youth Academy participants are achieving their
High School Graduation Equivalency Degree (GED), and 92-percent are
also continuing their education. Other Missions and Measures
activities are being advanced.
6:16:38 PM
Co-Chair Wilken understood that the Subcommittee included a funding
recommendation in support of a new Youth Academy platoon.
Major General Campbell affirmed. The most significant increase in
the FY 06 budget would be the addition of $800,000 to support a new
platoon in Anchorage. The goal would be to expand the program to
the Fairbanks area; the Department has determined that an increase
of up to 400 cadets a year could be expected.
Co-Chair Wilken understood that complete funding of the Alaska Land
Mobile Radio (ALMR) would also be provided in the Subcommittee's
budget recommendation.
Major General Campbell affirmed.
Senator Dyson noted that the State's support of the Youth Academy
would consist of the standard education funding formula. The
balance of the Youth Academy funding needs would be provided by
federal funds. While the State's education funding formula money
would follow the youth in whichever public education program they
enrolled, the federal funds would only be available for youth in
the Youth Academy program.
Senator Hoffman asked which of the 17 new positions specified for
the Department would be supported by general funds.
Senator Dyson responded that ten of the 17 new positions relate to
the Youth Academy and would therefore qualify for federal match
support. One new position would be added to the Veterans
Administration (VA) Education Office; two positions would be added
in the communications field; and five positions would be transfers
from other divisions.
Major General Campbell specified that while the ten Youth Academy
positions would be supported by general funds in FY 06, the
education funding formula would support those positions the
following year. The State's VA position would be funded by the
federal VA. A combination of State general funds (GF) and Capital
Improvement Project (CIP) receipts would fund the statewide
communications positions. The five positions being transferred to
the Department's ALMR program from the Department of Administration
(DOA) are currently in the budget and supported by a combination of
GF and federal funds. Therefore their expense would be offset by a
detriment in the DOA budget.
Department of Public Safety
Senator Fred Dyson, Chair
Senator John Cowdery
Senator Gene Therriault
Senator Hollis French
6:20:06 PM
Budget Report
A. Budgetary Highlights
FY 05 Management Plan = $116,081,000
Adjusted Base = $116,586,700
GovA+Ed = $123,283,600
Changes recommended by subcommittee:
General Fund = $5,734,100 over Adjusted Base
=$ 728,500 below Governor's
Amended
All Funds = $6,092,900 over Adjusted Base
= $ 604,000 below Governor's
Amended
B. Jet
The Department requested $1.4 million GF to lease a new jet.
The subcommittee recommends denying this request.
C. Rural Trooper Housing
The department requested $517,800 GF plus $356,400 Other Funds
to subsidize 28 leased housing units in rural Alaska.
The subcommittee recommends approving the Other Funds, but
recommends limiting the GF increase to $350,000.
Senator Dyson shared that the Subcommittee thoroughly discussed
whether the entirety of the housing funds being requested would be
required in light of the fact that the Department had 28 division
vacancies in addition to 12 vacancies at The Alaska Military Youth
Academy. The decision therefore, as agreed upon by the
Commissioner, was to reduce that increment from $874,000 to
$706,000.
D. Additional Fuel Costs
The department requested $482,400 GF to cover anticipated
increases in cost of fuel for vehicles, heating, marine,
diesel, and aviation fuel.
The subcommittee recommends limiting the increase to $400,000
GF.
Senator Dyson stated that the fuel expense request was reduced to
$400,000 in order to reflect anticipated usage even though it was
noted that fuel prices have increased.
E. Additional Recruiting Costs.
The department requested $150,000 GF to enhance and expand
recruitment of troopers and VSPOs.
The subcommittee recommends limiting the increase to $100,000
GF.
Senator Dyson commented that while there is continuing concern in
regards to recruitment, the decision was to reduce the funding of
those efforts from $150,000 to $100,000.
Senator Dyson informed that the Subcommittee recommended funding
the Alcohol Beverage Control Board license renewals increment at
the requested $135,000 level as such things as "background checks
on people applying for new licenses" is important.
F. Aircrew Training
The department requested $200,000 GF to provide pilot training
to troopers.
The subcommittee recommends limiting the increase to $150,000
GF.
Senator Dyson observed that this was an interesting request, and
that the Subcommittee agreed with the Department's decision to
provide additional training to existing staff having aviation
experience. Doing so would allow those staffers to garner advanced
ratings and thereby do more of the Department's flying.
Nonetheless, that budget was reduced from $200,000 to $150,000.
Senator Dyson informed the Committee that the Department's
Information Security Office, like its counterparts in other
departments, is attempting to develop more automated programs and
do more things online. There are "very significant security issues
and much of the information that they store and must disseminate
upon request is quite secure information and very timely". Having
to depend on other entities for computer assistance could be, "at
times very awkward"; therefore the subcommittee concurred with the
Department "that their own in-house person" would be required.
H. Concealed Handgun Program & Sex Offender Registry
Underfunding
The department requested $76,500 GF to compensate for reduced
revenues from elimination of the concealed handgun permitting
program.
The subcommittee recommends limiting the increase to $41,500
GF. Further, it is the intent of the subcommittee that the
additional funds be used for the sex offender registry
program.
Additionally, the subcommittee requested the department to
perform further analysis in an attempt to find ways for the
Concealed Handgun and Security Guard Licensing program to be
come self-sustaining.
Senator Dyson stated that even though the Department has
experienced "a significant reduction" in Concealed Handgun Permit
receipts due to changes resulting from recent Legislative action
that database must continue to be maintained and renewals must be
addressed. There is also an increasing demand to keep the sex
offender registry current and its information available to the
public and prospective employers. The Subcommittee opted to
increase this budget by $41,500 instead of the $76,500 requested by
the Department with consideration being given to increasing the fee
structure of handgun renewals and other programs, as the original
intent was for the program to be primarily supported by program
receipts.
G. Additional Troopers
The department requested $803,500 GF to fund 5 troopers to
improve rural road system traffic enforcement and other law
enforcement services.
The subcommittee recommends a conditional denial of this
request. The subcommittee offered the department the
opportunity to bring further justification back to the
subcommittee before the subcommittee presents its
recommendations to the Senate Finance Committee. If the
justification is compelling, Senator Dyson, as chair of the
subcommittee, will propose a partial or full restoration of
the request.
During subcommittee hearings, the department provided various
estimated levels of vacancies, from a low of 20 troopers to a
high of 35 troopers, and varying costs per trooper from
$107,000 to $160,000. Given the large number of vacancies, the
subcommittee questioned whether the department would be able
to fill the 5 positions requested. The subcommittee requested
the department to provide the following information:
(1) How many trooper vacancies are in the department?
(2) Provide a history, for at least the past couple of years,
of:
(a) Turnover
(b) Number of vacancies
(c) Fill rate
(d) Number of troopers authorized
(e) Account for funds authorized for new troopers but not
spent on new troopers.
Senator Dyson stressed that the Subcommittee supported increasing
the number of Alaska State Troopers. However, the Department was
asked to provide a response to the question of whether the
Department could recruit, train, equip, and activate enough
troopers to fill the current 28 vacant positions within FY 06. A
Department response is expected shortly. In the meantime, the
request for $803,000 was denied even though the Committee
recognized the need for more Troopers as being valid.
6:26:06 PM
Senator Dyson stated that the Department's requested amount for the
Council on Domestic Violence and Sexual Assault (CDVSA) program was
approved but the $200,000 additional funding included in the House
of Representatives FY 06 operating budget was denied.
Senator Dyson informed that the Subcommittee recommended full
funding of the Department's new personnel contracts.
I. Victims for Justice
The department did not request funds for the Victims for
Justice.
The subcommittee recommends adding $125,000 GF for this
program.
Senator Dyson informed that the subcommittee adopted an amendment
to fund the Victims for Justice at a $125,000 level.
Co-Chair Green questioned this funding increment, as the Victims
for Justice Committee had been transferred to a different
department.
DAN SPENCER, Director, Division of Administrative Services,
Department of Public Safety, affirmed that the Victims for Justice
program was transferred to the Department of Law a few years
earlier; however, the program has not been funded by that
Department. This increment would be provided in the form of a Named
Recipient Grant in support of that program.
Co-Chair Wilken communicated that this issue would be further
reviewed.
Senator Hoffman spoke to the decision to reduce funding for Rural
Housing, as he understood that that increment "was the Department's
number one request". The lack of housing in Rural Alaska is one of
the obstacles in recruiting new troopers. Therefore a reduction in
Rural Housing funding fuels "the vicious circle" relating to
recruitment difficulties.
Senator Dyson responded that the reduction in housing funding was
prompted by the fact that there are currently 28 vacant Trooper
positions. The Department has determined that it would be
"improbable" that the entirety of those positions would be filled
and training completed in FY 06. The authorization approving five
more Trooper positions would increase the number of vacant
positions to 33. Therefore, while the housing needs are valid, the
decision to reduce those funds was based on the fact that there
would be an insufficient number of troopers available to utilize
the entire requested amount.
Mr. Spencer affirmed that increasing the number of troopers in
Rural areas and improving recruitment efforts are Department
priorities. The Department's budget request indicates that
additional funds are been sought in that regard. However, while
proposals for Rural Trooper housing needs are currently being
advertised, "the reality is" that fulfillment of that need could
not be accomplished by July 1, 2006. Furthermore, new Trooper
recruits could not be fully trained by that date either. The goal
therefore would be to have housing available by the time new
recruit training is completed.
6:31:30 PM
Senator Dyson communicated that the Department's annual budget
includes a vacancy factor.
Mr. Spencer affirmed that approximately $1.5 million, which is the
equivalent of approximately 15 full-time Trooper positions, is
factored into the budget.
Senator Dyson declared that having 15 vacant Trooper positions is
not desired. To that point, he asked the number of sworn officers
in the Department.
Mr. Spencer responded that there are approximately 300 sworn
officers.
Senator Hoffman understood that there are currently seven vacant
Trooper positions in Bethel. "That makes a big difference in the
service" that is provided to the area. This is the reason he is
questioning the Department's priorities.
Co-Chair Green asked what was included in the "Other Funds" that
support the Trooper housing request.
Mr. Spencer informed that "Other Funds" relates to the revenue
generated from the Troopers, as they pay a portion of their rent.
Co-Chair Green reminded the Committee that approximately six
million dollars is included in the Alaska Housing Finance
Corporation budget for a housing and loan assistance program for
teachers, health, and public safety professionals.
Senator Olson asked, in regards to the aforementioned aviation
training program request, the number of State Troopers who are
currently licensed pilots.
Mr. Spencer responded that the number would be provided as he did
not have that information with him.
Senator Olson, himself a pilot and the operator of a business that
hires pilots, pointed out that most pilots must pay for their own
training. He agreed that training is important; however, he was
concerned that the State would be paying for such training. He
stated that were a licensed airplane pilot trained to fly
helicopters, the State would be utilizing a helicopter pilot with a
low number of hours. This might result in an increase of accidents.
Therefore, he questioned this endeavor.
Mr. Spencer understood the concern. However, he noted that efforts
to recruit pilots and train them to be State Troopers have not been
successful. The Department has determined that it would be easier
to recruit a Trooper and then teach them to fly. Previous efforts
to get troopers to acquire their own pilot licenses were initially
successful, but that is not currently the case. The Department has
determined that this approach would be in the Department's "best
interests". It would provide for a more effective police force
throughout the State. While he understood the concern regarding low
time pilots, the fact of the matter is that the pilots "would be
working pilots" and would fly quite a bit.
Senator Dyson understood that whenever a flight is required, a
Trooper must wait for a pilot. Victim or prisoner space would be
limited in a Super Cub airplane, were it to carry both a Trooper
and pilot. Having a Trooper who could fly would be beneficial.
Senator Olson declared that it would be dangerous for a lone
Trooper to be responsible for piloting the plane as well as being
required to subdue a prisoner.
Senator Bunde observed that, based on the Department's historical
accident rate, "Troopers don't always make good pilots".
Department of Transportation and Public Facilities
Senator Lyda Green, Chair
Senator John Cowdery
Senator Charlie Huggins
Senator Albert Kookesh
Senate Finance Subcommittee Closeout Summary for the
Department of Transportation and Public Facilities
FY 06 FY 06
Sen SC Gov. Req
GF 166,558,900 GF 111,132,600
Fed 3,539,500 Fed 3,539,500
Other 245,490,000 Other 302,512,600
Total $415,588,400 Total $417,184,700
The subcommittee accepted all budget related changes that
are included in the FY06 Adjusted Base scenario as requested
by the Governor.
The subcommittee accepted all 'fixed cost' increments as
requested by the Governor.
$12,881,300 GF Department wide, the fixed costs
include: fuel, steel, gravel, human
4,238,700 GF resources, maintenance due to increased
15,000 Federal lane miles, maintenance due to increased
8,627,600 Other airport safety, and risk management.
The subcommittee requests the following changes to the
Governor's FY06 request:
Advisory Boards
$20.0 GF was not accepted because HB209 and SB133 have
been introduced to make the Aviation Advisory Board
permanent. This request could be accommodated
through a fiscal note.
$37.0 I/A Rcpts was not accepted because the Marine
Transportation Advisory Board has not had
legislation introduced to make it permanent yet
should be treated similar to the Aviation Advisory
Board. I/A Rcpts can be accommodated through agency
process without legislative approval.
Transportation Management and Security
$275.0 GF was accepted as a one-time-item for a new program
for equipment operator training. The following
intent language is offered upon Senate Finance
Committee acceptance of this new program:
It is the intent of the Legislature that the DOT&PF
establish a formal equipment operator training and
certification program and adopt common business
rules with the goal of reducing accidents and
preventable damage to equipment. The successful
implementation of this program must show measurable
reductions in damage repair and accidents by June
1, 2006."
$95.0 GF was accepted for a new program for integrated
vegetation management. The following intent
language is offered upon Senate Finance Committee
acceptance of this new program:
It is the intent of the Legislature that the DOT&PF
adopt an Integrated Vegetation Management approach
for controlling problem and invasive plants on
state owned property along highways and airports.
The successful implementation of this program will
be establishing IVM plans and acquiring the
necessary ADEC environmental permits by June 1,
2006.The IVM plans must also include outcomes to
measure DOT&PF maintenance cost savings and
improved road safety."
$200.0 GF was accepted for anti-icing improvements to
Matanuska and Kenai Peninsula highways. The
following intent language is offered upon Senate
Finance Committee acceptance of this program
expansion:
It is the intent of the Legislature that the DOT&PF
provide a cost report identifying the savings on
abrasives and road maintenance hours by using the
anti-icing agents on specific road miles compared
to the increased costs of chemical use."
$3,500.0 GF was accepted for an increased level of service on
the Dalton Highway. More than $73 million is
requested/approved for Dalton Highway road
improvements and the maintenance costs of the
highway are expected to increase 2-3 million per
year. The additional road maintenance may be better
funded through toll or weigh station fees. The
following intent language is offered upon Senate
Finance Committee acceptance of this program
expansion:
It is the intent of the Legislature that the DOT&PF
consider the impact of toll fee stations and/or
weigh stations at or near Seven Mile (Yukon River
crossing or Arctic Circle crossing), Chandalar
(Dalton Highway mid point), and Deadhorse (Prudhoe
Bay or Bullen Point Road).The purpose of the
potential collection points is to help offset costs
of road maintenance for heavy equipment use on the
Dalton Highway and for tourist related highway use.
Highway use data should be collected in association
with the fee collection.
Parks Highway Increased Maintenance
$115.0 GF was accepted for increased maintenance on the
Parks Highway for the Cantwell maintenance station.
$115.0 GF was accepted for increased maintenance on the
Parks Highway for the Chulitna maintenance station.
Snow Haul and Traffic Signal Management for Municipality of
Anchorage
$316.8 GF was not accepted for the increased traffic signal
management contract with the Municipality of
Anchorage.
$700.0 GF was not accepted for increased sidewalk clearing
and snow hauls in the Anchorage bowl.
Increased Airport Services
$35.0 GF was not accepted for the purchase of E36 and Urea
for the Bethel Airport.
$115.0 GF was accepted at one-half of the Governor's
requested level for extended operational hours at
Bethel and Dillingham airports.
$190.0 GF was accepted at one-half of the Governor's
requested level for extended operational hours at
Nome and Kotzebue airports.
$182.5 GF was accepted at one-half of the Governor's
requested level for extended operational hours at
Wrangell and Petersburg airports.
$68.0 GF was accepted as a one-time-item for the increased
cost share agreement for the King Salmon tower
contract.
TSA Airport Security
$102.0 GF was accepted for a new TSA Security
Administrative Liaison position in the Northern
Region.
$98.0 GF was accepted for a new TSA Security
Administrative Liaison position in the Southeast
Region.
Alaska Marine Highway System
Reservations and Marketing
$500.0 AMHSF was accepted for the new marketing and
promotion program. The following intent language is
offered upon Senate Finance Committee acceptance of
this program expansion:
It is the intent of the Legislature that the
Department of Transportation and Public Facilities
establish a clear performance measures for this
marketing program and establish a tracking system
that will record the increase in revenues generated
by this appropriation.
Vessel Operations
$4,100.0 MHF was accepted for additional mainline service
related to the M/V Kennicott.
Vessel Operations
Fund Change
$56,985.6 GF
($56,985.6) AMHSF
This fund source change directly appropriates the general
funds that are typically provided in the language section
to the operating budget. There is no change to the total
amount of funding appropriated to the AMHS. This dollar
amount includes the AMHS bargaining unit contract
increases that were requested after the Governor's
amended budget was offered. The reason for this funding
change is to better identify what portion of the AMHS
budget is funded by the General Fund or funded by AMHS
passenger and sales receipts.
Co-Chair Green, the Subcommittee chair, pointed out that the
Subcommittee's Department of Transportation and Public Facilities
(DOT) operating budget recommendations reflected a GF increase of
approximately $50,000,000 as compared to the Governor's proposed
budget, as the result of transferring $56,985,600 from the Alaska
Marine Highway (AMH) Fund money to the General Fund.
6:38:49 PM
Co-Chair Green continued that this action would allow for "a full
review of what's there, what's being spent, and how that is being
accounted for" as otherwise, when money is debited to the AMH Fund
is it never reviewed. Historically, money has simply been added to
the Fund when its balance was low. Thus, while the Subcommittee's
GF recommendation might look alarming, it is "neutral in the final
analysis".
Co-Chair Green also noted that the Subcommittee recommended the
addition of one GF position in the Integrated Vegetation Management
Program, one GF position in the Equipment Operator Program, six GF
positions for the Expanded Rural Airport Program "to keep Rural
airports open longer and to address safety issues"; two GF regional
Transportation Safety Agency (TSA) liaison positions, 14 GF
positions for the Dalton Highway, including an increase in
supervisory positions required for the Way Stations; and two GF
positions for the Cantwell and Chulitna Road maintenance.
Co-Chair Green noted that there is quite a bit of Intent Language
included in this budget. While the Subcommittee adopted the fixed
cost increments requested by DOT, some changes were made to the
Governor's FY 06 request, including the adoption of common based
business rules with the goal of reducing accidents and preventable
damages to equipment as noted in the intent language in the
Transportation Management and Security component.
Co-Chair Green reviewed the components of the Subcommittee Report
and specifically noted the Intent Language pertinent to the anti-
icing improvements to the Matanuska and Kenai Peninsula highways
and the expected results for the Highway Vegetation program. She
respectfully submitted the report.
6:42:55 PM
Senator Bunde asked the reason for increasing the TSA airport
security administration liaison as some characterize the TSA
program as "thousands standing around".
Co-Chair Green pointed out that one of the positions is specific to
the Northern Region and one is specific to the Southeast Region.
NANCY SLAGLE, Director, Division of Administrative Services,
Department of Transportation and Public Facilities, voiced that the
Department views these positions as being critical because, even
though the federal TSA program might have a lot of people at the
airports, "more and more stringent activities and review of what is
going on" is occurring at each of the State's certificated
airports. As a result of individual airport quarterly reviews and
other TSA requirements, the burden on current State staff is
expanding, and, as a result, other things such as Federal Aviation
Administration (FAA) requirements and other airport issues are
being neglected. These individuals would work with TSA on an on-
going basis, and would allow other staff to address other workload
needs.
Senator Stedman asked regarding the Subcommittee's recommendation
to deny $37,000 for the Marine Advisory Transportation Board;
specifically whether the intention is to abolish the Board or
whether Statutory changes should be made to it.
Co-Chair Green commented that the Board is not a permanent Board.
The I/A receipts that support it could be accommodated without
legislative approval.
Senator Stedman acknowledged the explanation.
Senator Bunde stated that imposing a Haul Road fee-based weight
station is an excellent suggestion.
6:46:30 PM
Department of Health and Social Services
Senator Lyda Green, Subcommittee Chair
Senator Ben Stevens
Senator Gary Stevens
Senator Bettye Davis
Senate Finance Subcommittee Closeout Summary for the
Department of Health and Social Services
FY06 FY06
Sen SC Gov Req
GF 609,521,600 GF 622,575,300
Fed 996,231,400 Fed 999,570,300
Other 205,334,700 Other 206,889,700
Total $1,811,087,700 Total $1,829,035,300
The subcommittee accepted all budget related changes that are
included in the FY06 Adjusted Base scenario as requested by
the Governor.
The subcommittee accepted all fixed-cost, formula/entitlement
program, and life-safety increments as requested by the
Governor.
$151,005,000 Department wide, the fixed costs include:
fuel, human resources, working reserve
86,829,900 GF fund resources, and risk management.
62,748,400 Federal Entitlement and life-safety programs
1,426,700 Other include: Pioneer Home safety, Medicaid,
public assistance programs, facility
growth needs, and poison control center
services.
The subcommittee requests the following changes to the
Governor's FY06 request:
Alaska Pioneer Homes Appropriation
$82.5 GF was not accepted for Veterans' beds in the Palmer
Pioneer Home due to a later than anticipated home
modification completion date.
The following intent is offered to provide program
guidance.
It is the intent of the Legislature that all
pioneers' homes and veterans' homes applicants
shall complete any forms to determine eligibility
for supplemental program funding, such as Medicaid,
Medicare, SSI, and other benefits as part of the
application process. If an applicant is not able to
complete the forms him/herself, or if relatives or
guardians of the applicant are not able to complete
the forms, Department of Health and Social Services
staff may complete the forms for him/her, obtain
the individuals' or designees' signature and submit
for eligibility per AS 47.25.120
Behavior Health Appropriation
$80.0 Receipt Supported Services was accepted for
additional collections anticipated for the FASD
Summit. The Summit costs $162.5 to put on.
Approximately 800 attendees are charged $100 each
and the balance paid from federal funding.
$596.0 GF was not accepted as federal back fill for
alcohol related programs.
$2,000.0 I/A Rcpts (TANF Bonus Award) was accepted but is
contingent on the following intent and department
performance.
The following intent language is offered upon
Senate Finance Committee acceptance of this new
TANF Bonus Award funded program:
The Department of Health and Social Services will
establish specific "evidence based" prevention
programs at the community level through a
competitive Request for Proposal (RFP). The
department will also develop a clear plan for
evaluation and program outcomes to better document
the successes of Alaska's prevention efforts. The
Plan must be presented to the Legislative Budget
and Audit Committee prior to the beginning of the
2006 legislative session, or to the House and
Senate Finance Committees by February 1, 2006 for
approval. Upon approval of the Plan, up to $2,000.0
in TANF Bonus award funding may be made available
for alcohol and drug program expansion. The amount
of the funding will be prorated based on timing and
realistic use of funds.
$204.5 GF/MH and
$204.5 Fed Rcpts was accepted for the 'Keep' the Kids
Home assessment and care coordination.
$268.2 GF was not accepted because it was originally
included in this budget as a one time item through
a reappropriation.
Children's Services Appropriation
Technical corrections:
$120.0 fund change from GF to GF/Match in Child
Services Management
$3,700.0 fund change from GF to GF/Match in Front Line
Social Workers
Front Line Social Workers
$220.4 GF/M and
$188.8 Fed Rcpts was accepted as a one-time-item to
enhance the $1.2 million already budgeted for Child
Services Training. One year of enhanced training is
needed to retrain all staff regarding new
regulations and program changes.
$830.5 GF/M and
$2,197.6 Fed Rcpts was accepted for 31 new Front Line Social
Worker positions.
Family Preservation
$135.3 GF was accepted at a reduced amount because this
programming function is not accepted under the
state's Medicaid State Plan for federal
reimbursement.
Family Preservation
$173.0 GF/M and
$58.0 Fed Rcpts was not accepted for a new attorney in the
Nome DA office for Child In Need of Aid cases.
Foster Care Special Need
$75.0 GF/M and
$25.0 Fed Rcpts was accepted for increased resource family
recruitment effort.
Subsidized Adoption and Guardianship
$187.5 GF/M and
$62.5 Fed Rcpts was not accepted for enhanced post
adoption services.
$120.0 GF/M and
$37.5 Fed Rcpts was accepted for unified home studies for
both foster and adoption home placements.
Health Care Services Appropriation
Medicaid Services
$50.2 GF and
($4.1) Fed Rcpts was not accepted for Medicare Part
A&B
premium cost increase due to projected savings
through the Medicaid PCA regulation changes.
Medicaid Services
$5,301.0 GF/M was not accepted for Medicare Part D
Clawback adjustment that is premature at this time.
Juvenile Justice Appropriation
Nome Youth Facility
$451.8 GF was accepted for the Nome youth facility
expansion.
Probation Services
$1,070.0 GF was accepted for increased efforts to
address juvenile crime.
Public Assistance Appropriation
Adult Public Assistance
$3,180.0 Fed Rcpts was accepted for increased TANF
Bonus
Award receipts.
$1,180.0 Fed Rcpts was not accepted for reduced
expenditure of the TANF Bonus Award.
($2,000.0 in TANF Bonus Award spending will
be made available based on the Department's
performance related to the contingency
language adopted in the Behavioral Health
appropriation.)
Adult Public Assistance
$317.3 GF and
$296.0 Fed Rcpts and
$70.7 I/A Rcpts was accepted for the anticipated increase
of APA caseload costs.
Adult Public Assistance
The following intent is offered to provide program
guidance.
It is the intent of the Legislature that the
Interim Assistance cash payments be restricted to
those individuals who agree to repay the State of
Alaska in the event SSI does not determine the
individual eligible for cash assistance. It is the
intent of the Legislature that the DHSS make all
attempts possible to recover the Interim Assistance
cash payments in the event an individual is not SSI
eligible after receiving Interim Assistance.
General Relief Assistance
$0 The Increment and Decrement of $143.6 GF from General
Relief Assistance to Public Assistance Field Services
is accepted.
Public Health Appropriation
Women, Children and Family Health
$500.0 GF was not accepted for increased Breast and
Cervical Cancer screening.
$1,300.0 GF was not accepted for increased Breast and
Cervical Cancer screening.
The following intent is offered to provide
program guidance.
It is the intent of the Legislature that the
Department of Health and Social Services
maintain fiscal accountability for Alaska's
Breast and Cervical Cancer screening
population by amending the age eligibility
criteria based on the amount of federal
resources appropriated on an annual basis. It
is incumbent upon the Department of Health and
Social Services to revise criteria
appropriately to ensure that federal resources
remain the sole source of financial support
for this program.
Women Children and Family Health
$20.0 GF and
$480.0 I/A Rcpts (TANF Bonus Award) was not accepted
for the Statutory Rape Reduction public
information campaign.
Certification and Licensing
$3.3 GF was not accepted because there is an
anticipated
increase in fee collections, therefore the
additional General Funds are not needed.
Epidemiology
$270.0 Tob Ed/Ces was not accepted for smoking
cessation program enhancements.
Community Health Grants
$0 Fund change from Tob Ed/Ces to GF is not accepted.
State Medical Examiner
$100.0 GF was not accepted for expanded work that
includes surveillance through death investigations.
Tobacco Prevention and Control
$1,230.0 Tob Ed/Ces was not accepted for increased
tobacco prevention and cessation activities.
Senior and Disability Services Appropriation
Senior and Disabled Medicaid Services
$2,000.0 GF and
$2,000.0 Fed Rcpts was reduced for cost containment efforts
achieved through changes in PCA regulations. Additional
savings should be realized in FY07.
The following intent is offered to provide program
guidance.
It is the intent of the Legislature that the
Department of Health and Social Services implement
regulation changes to 7 AAC 43.750-795 to control
and reduce costs of the Personal Care Attendant
(PCA) program by: 1) clearly defining recipient
eligibility in the "purpose and scope" section
where, absent PCA assistance, an individual would
require hospitalization or nursing home care; 2)
clearly defining recipient eligibility in the
"purpose and scope" section where, absence of PCA
assistance would result in the individual's loss of
employment; 3) deleting "stand-by" assistance as an
allowable PCA task; 4) clearly stating that
Instrumental Activities of Daily Living (IADLs) are
not allowable unless specifically related to an
approved task for an Activity of Daily Living (ADL)
need; 5) adopting an objective client assessment
tool that results in a reliable and consistent care
plan to be used by PCA providers, PCA agencies and
the department; 6) requiring physical certification
of an individual's condition as stated in the PCA
assessment to confirm need for services; 7)
requiring that if more than one PCA recipient
resides in the same home, only one PCA provider is
allowed for both recipients; 8) tightening
enrollment criteria for all providers to require
specific training and experience; 9) requiring
Medicaid certification for PCA provider agencies;
10) requiring that the owner/manager of a PCA
agency meet specified minimum level of education
and administrative or business experience in a
related field; 11) clearly stating that an
individual's assessment function will be conducted
by department staff or the department's designee;
12) requiring prior authorization by department
staff or the department's designee for all PCA
services; 13) including a new regulation that
prevents the individual solicitation of clients by
PCA agencies and provides consequences for such
actions; and 14) review consumer directed services
to determine processes or procedures to improve
program effectiveness.
Senior and Disabled Medicaid Services
$200.0 GF and
$600.0 Fed Rcpts was accepted for increased audit services
on Medicaid Personal Care Attendant providers that
is not part of the PERM project. This audit will
also provide the oversight required to determine
adherence to the new regulations based on the above
listed intent.
Senior and Disability Services Administration
$225.0 GF was not accepted to replace federal funds that
are no longer available for transitioning
individuals from nursing homes to home/community
placement.
$68.9 GF was not accepted for increased service for the
Adult Protective Services program.
Protection Community Services
$750.0 GF was not accepted for increased costs associated
with providing safe homes for vulnerable adults who
are removed from their homes.
Departmental Support Services
Information Technology
$125.0 GF and
$275.0 Fed Rcpts was accepted for routine replacement
of the information technology hardware program.
Information Technology
$150.0 GF and
$50.0 Fed Rcpts was not accepted for replacing aged
computers and peripherals for ORCA.
Information Technology
$134.0 GF and
$44.6 Fed Rcpts was accepted for additional ORCA
programmer support.
Boards and Commissions
Governor's Council on Faith-Based Communities
$315.0 GF and
$105.0 I/A Rcpts was not accepted for the formation
of the Faith-Based and Community Initiatives
Council per Administrative Order 221.
Co-Chair Green, Subcommittee Chair, commented that one of the most
important actions of the Subcommittee was their inclusion to Intent
Language in the report in an effort "to help the Department" and
the reporting process in the future.
Co-Chair Green noted that the Subcommittee recommended a reduction
in the Governor's GF amended budget by approximately $13,000,000.
Nonetheless, the GF amount recommended exceeds the FY 05 amount by
approximately $70,000,000.
Co-Chair Green noted that Intent Language was included in regards
to the Alaska Pioneer Homes Appropriations in an effort to further
Department action in seeking other benefit coverage afforded to its
residents. She read the Intent Language included in the report.
Co-Chair Green also read the Intent Language pertinent to the
Behavior Health Appropriations, and noted that one component of
that language would require that definitive program results be
provided to the Legislature.
Co-Chair Green also referenced the Intent Language accompanying the
Adult Public Assistance program, the Breast and Cervical Cancer
screening in the Public Health Appropriation, as well as the Senior
and Disability Services Appropriation Personal Care Attendants. She
noted that a concern addressed by the Breast and Cervical Cancer
program Intent Language was the clarification that the State would
not backfill lost federal funds. The State has one of "the more
generous" and one of the broadest age criteria programs in the
country in that, while its original entry age was women over the
age of 55, that age requirement has been expanded to include
younger women. This has resulted in an increase in the number of
program applicants. The women to whom the program was originally
intended should receive priority. The Intent Language regarding
Personal Care Attendants was included as that program's costs have
been escalating. Fourteen items are included in the Intent Language
for the Department to review in order to determine eligibility and
establish guidelines for the program.
Co-Chair Wilken expressed that the Department of Health and Social
Services budget is the State's most complicated budget, and he
thanked Co-Chair Green for her longevity and dedication to it. This
Department's budget would continue to have tremendous impact on the
budget considerations each year.
Co-Chair Green thanked the Department for assisting in the
development of the Subcommittee's budget recommendation report.
Department of Revenue
Senator Bert Stedman, Subcommittee Chair
Senator Thomas Wagoner
Senator Gretchen Guess
FY 06 Operating Budget Closeout
Introduction
The Department of Revenue subcommittee used the FY 06 adjusted
base when determining appropriation levels. The subcommittee
accepted all departmental budget transactions from FY 05
Management Plan to the FY 06 adjusted base.
The Department of Revenue subcommittee adopted the following
motions at its close out meeting on April 7, 2005. This
narrative lists the proposed changes to the Governor's FY 06
requested budget. Those components not listed in this
narrative are proposed at the same level as the Governor's FY
06 amended operating budget request.
Departmental Spending Levels
Senate Chg 05 Governor's Governor
Subcomm Adj Base Proposed to Subcomm
General Funds $ 8,641,200 7.8% $ 9,954,500 (13.2%)
Federal Funds $38,133,700 0.1% $ 38,133,700 0.0%
Other Funds $134,227,700 14.5% $133,114,400 0.8%
Totals $181,002,600 9.8% $181,232,600 (0.1%)
Subcommittee Recommendations
In the Tax Division, the subcommittee switched $973,500 of
General Funds to Permanent Fund Receipts in recognition of the
fact that seventy percent of the division's efforts are in
corporate oil and gas revenue collections. Twenty-five percent
of these revenues flow directly into the Permanent Fund. As
the Department ramps up its efforts to increase corporate oil
and gas revenue, it's important that the associated costs be
appropriately allocated.
In the Tax Division, a General Fund increment of $370,100 was
accepted to fund the addition of five new revenue auditors and
one new tax technician as part of the division's corporate
audit revitalization program. To fully fund these positions,
the GF increment will be combined with $78,500 of Permanent
Fund Receipts.
Also in the Tax Division, an increment of $150,000 in General
Funds to hire two economists was denied. The subcommittee
recognized that a considerable amount of money is being
appropriated elsewhere in the state to acquire economic
expertise in oil and gas.
Also in the Tax Division, a General Fund increment of $288,700
was accepted to support the contract services portion of the
division's corporate tax revitalization program. This
increment will be combined with $61,300 in Permanent Fund
Receipts to fund training program development, audit risk
assessment and data mining.
Also in the Tax Division, a General Fund increment of $50,000
for contract services was denied. These funds had been
requested for the division to begin advance planning on
possible broad based, statewide taxes.
Positions Analysis
The subcommittee approved an addition of 13 permanent full-
time positions for FY 06. Six of these positions are funded
with general funds and seven are funded with a combination of
General Funds, Permanent Fund Receipts and Interagency
Receipts.
· In the Tax Division, a General Fund increment of $778,900
was accepted to fund the addition of six tobacco tax
enforcement staff positions. These positions were
authorized by legislation passed during last year's
special legislative session.
· Also in the Tax Division, a General Fund increment of
$370,100 was accepted to fund the addition of five new
revenue auditors and one new tax technician as part of
the division's corporate audit revitalization program. To
fully fund these positions, the GF increment will be
combined with $78,500 of Permanent Fund Receipts.
· In the Treasury Division, a General Fund increment of
$43,000 was accepted to fund one additional staff person
in the investment compliance group. To fully fund the
position, this
· increment will be combined with $69,600 of Interagency
Receipts.
Missions and Measures
The subcommittee spent a brief amount of time reviewing the
department's top-level missions and measures. The subcommittee
recognized the need for the department to regularly review its
mission statement and to adjust its performance metrics as
necessary. The subcommittee established no new results,
targets or measures for the department during this budget
cycle.
FY 05 and FY 06 Intent Language
FY 05 - The department had the following intent language in
the FY 05 budget.
It is the intent of the legislature to give notice as
permitted by AS 15.13.145, and regulations of the Alaska
Public Offices Commission, that the Alaska Permanent Fund
Corporation may use amounts appropriated for operations
of the corporation within the corporation's fiscal Year
2004 and 2005 budgets to educate voters concerning the
Percent of Market Value Amendment to the Alaska
Constitution and the reasons why the Trustees recommended
this change in law. It is further the intent of the
legislature that the Alaska Permanent Fund Corporation
not advocate a position on the ballot question, must
permit persons with all viewpoints to participate in a
public forum, and shall present all known effects that
the Percent of Market Value proposal could have on the
Alaska Permanent Fund.
The 24th Legislature did not pass POMV legislation, so the
proposed ballot item to which this language refers did not
appear on the 2004 general election ballot. Consequently, the
Alaska Permanent Fund Corporation did not take any action
under this intent language.
FY 06 - The subcommittee added no intent language for the FY
06 budget.
Senator Stedman, the Subcommittee Chair, read the Subcommittee
report and specifically noted the their recommendation to replace
$972,000 of GF monies, as recommended in the Governor's budget
proposal, with Permanent Fund Receipts.
6:55:00 PM
Senator Stedman noted that, over the years, the Department's Tax
Division auditing staff has decreased from 14 auditors to four, and
two of those four would be retiring soon. Efforts must be taken to
increase the auditing staff with the understanding that doing so
should generate more revenue than the expense generated by doing
so. New revenues should also offset the increased expense resulting
from the addition of other staff positions.
Senator Hoffman asked the total number of positions that would be
added to the Department.
Senator Stedman expressed that a thorough discussion about the
increased number of positions occurred. The Department's number one
priority was to fully fund positions that had been previously
allotted. He deferred to the Department to provide further
information.
Senator Hoffman asked that the Department also discuss, for
evaluation purposes, the revenue benchmark that would be expected
as a result of the additional positions.
SUSAN TAYLOR, Director, Division of Administrative Services,
Department of Revenue, stated that, as proposed in the Subcommittee
budget recommendations, the Tax Division would experience an
increase of six tobacco tax enforcement positions, that should
result in substantial revenue increases. The exact amount of
revenue anticipated could be provided. The tax division would be
increased by five positions. The Department's proposal is that at
the end of the five-year program, incremental revenue of five
million dollars a year should be experienced. The Department would
provide a report to the Legislature detailing the anticipated
revenue as the programs develop.
Ms. Taylor affirmed that numerous discussions occurred in regards
to the corporate audit revitalization increment. In 1990, the Tax
Division had 43 auditors; ten years later, there were 26 auditors.
Some of the reductions, such as the reduction of auditors involved
in Oil and Gas disputes, were understandable as those issues were
resolved. However, the position of the Department is that the
number of auditors "has shrunk too far".
Ms. Taylor stressed that the State's tax system, being one of
voluntary compliance, is the least costly method of receiving tax
dollars; however, national studies indicate that the best response
to voluntary compliance is "the perception by the taxpayer that if
they pay the required tax" the risk of their being audited is
reduced. Having to pay the tax and as well as penalties for non-
compliance is a factor in decreasing non-compliance. There is also
the consideration that audits must be conducted within a certain
timeframe, as there is a statute of limitations in this regard. In
addition, a well-administered agency with competent employees would
benefit rather than inconvenience taxpayers. She noted that the Tax
Division management has conveyed to her that there are Fortune 500
companies operating in the State that are not always compliant. The
limited resources currently being experienced by the Division is
detrimental to the revenues of the State. She noted that Senator
Stedman made it clear that the Department must be able to
substantiate the need for the positions.
7:02:56 PM
Senator Stedman stated that the goal of increasing the Department
by five new corporate auditor positions and one technician would be
to realize five million dollars in revenue over the next five years
as the result of such things as correcting inadvertent errors and
omissions. The Department estimates that for each dollar of effort
toward the Tobacco Tax Enforcement Effort, ten dollars in revenue
might be received. The experience realized in this regard would be
interesting. While he was initially surprised at the requested
increase in staff positions, revenue targets to offset the expense
have been established.
Co-Chair Wilken conveyed that he "had heard the Commissioner's
plea" and the Department's assurance that revenue would be
generated as a result of the staff increases.
Senator Hoffman requested that the anticipated revenue be provided
in written form.
Ms. Taylor stated that the Department would "be happy to provide"
that information.
Department of Administration
Senator Fred Dyson, Subcommittee Chair
Senator Charlie Huggins
Senator Kim Elton
Subcommittee Report
Department of Administration FY06 Op. Budget
1. Introduction
The subcommittee wishes to commend Commissioner
Matiashowski and his staff for their cooperation and
assistance during this review process. We are impressed
with the quality of people that comprise this department,
with their dedication, and with their willingness to go
beyond merely what is required. We especially commend
Ms. Mila Cosgrove, Director, Division of Personnel.
2. Budget Report
A. Budgetary Highlights
FY05 Management Plan = $208,060,600
Adjusted Base = $210,374,100
GovA+Ed = $221,963,800
Changes recommended by subcommittee:
General Fund = $4,470,900 over
Adjusted Base
= $1,660,900 below
Governor's
Amended
All Funds (including GF) = $10,485,000 over
Adjusted Base
= $1,104,700 below
Governor's Amended
B. Enterprise Technology Services (ETS)
ETS requested that $3,656,600 associated with two-way
radios and SATS be changed from ETS charge backs to
General Funds.
The subcommittee recommends limiting the fund switch to
$3,000,000 GF.
C. Office of Public Defender
The agency initially requested a GF increase of $624,000.
They subsequently submitted an amendment for an
additional $887,200.
The subcommittee recommends limiting the GF increase to
$700,000 of the $1,511,200 requested.
D. Office of Public Advocacy
The agency initially requested a GF increase of $288,000.
They subsequently submitted an amendment for an
additional $205,500.
The subcommittee recommends limiting the GF increase to
$300,000 of the $493,500 requested.
E. Public Defender Participation in Wellness Court
(1) The agency submitted an amendment requesting
approval to accept $20,000 Statutory Designated
Receipts from the Juneau Office of the National
Council on Alcoholism and Drug Dependence.
The subcommittee concurs with the amount.
(2) The House recommended a GF transfer of $50,000
from the Department of Corrections to the
Department of Administration
The subcommittee recommends increasing the
Department of Administration's budget by $50,000 GF
to complete the action initiated by the House.
Because the increase in the Department of
Administration is offset by a decrease in the
Department of Corrections there is no net change in
funding.
F. Non-Public Building Maintenance & Fuel Costs
The agency initially requested a GF increase of
$130,000. They subsequently submitted an amendment for
an additional $312,200.
The subcommittee recommends limiting the increases to
$180,000 GF plus $112,200 Inter-Agency Receipts.
3. Changes in Staffing
A. 9 PFT transferred into Administrative Services as
a result of consolidation of accounting support
services. Primary funding is Inter-Agency Receipts.
B. 1 New Administrative Clerk to provide full time
receptionist support to Alaska Oil and Gas Conservation
Commission. Funded by AOGCC Receipts.
C. 5 New positions in Motor Vehicles; funded through
Receipt Services.
4. Significant Missions and Measures
The department presented a detailed overview of the
department's mission, desired results, and measures. The
subcommittee proposed a number of alternative desired results
for the department to consider. Discussions are ongoing
between the department and the subcommittee chair.
5. Adherence to FY05 Intent Language
In last year's bill the legislature included the following
intent language intended to apply to all departments:
It is the intent of the legislature that the amounts
appropriated by this Act are the full amounts that will
be appropriated for those purposes for the fiscal year
ending June 30, 2005.
The Office of Public Defender has requested supplemental
funding in 13 of the past 14 years, and this year submitted a
request for $887,200 to supplemental FY05 funding.
The Office of Public Advocacy has also consistently
requested supplemental funding.
It should be noted however that the original FY06 budget
requests for both agencies were substantially greater than in
years past. Additionally, they each submitted amendments
equal to this year's supplement request in anticipation of
avoiding a supplemental request next year. If either agency
is not fully funded as requested there is a chance they will
submit a supplemental request next year.
6. FY06 Conditional Language
A. Carry-Forward Language
The department has requested "Carry-Forward" language for:
Centralized Administrative Services; Leasing; and the Alaska
Oil & Gas Conservation Commission.
The subcommittee concurs.
B. Capitalized Funds
The department requested that funds in the Information
Services Fund be capitalized and not lapse.
The subcommittee concurs.
7. Other Actions
The department's amended request includes a $100,0000
increment for SDPR (Statutory Designated Program Receipts),
noted as "Credit Card Rebates." In addition, the FY06 Base
funding for this allocation includes $112,600 SDPR for a grand
total request of $212,600 SDPR. Legislative Finance has
determined this funding source to be in error.
SDPR is a funding source defined in AS 37.05.146, which states
that these can only be receipts that are received by the state
via a third party contract that restricts the funds to a
specific use. In the situation discussed herein, the
Division of Finance anticipates the receipt of these FY06
funds as a rebate. There is no contract restricting the use
of the funds. Therefore, Legislative Finance advises that
these funds should be reclassified to their correct fund
source of GF/PR.
A net zero fund change between SDPR and GF/PR in the amount
of $212,600 will correct this error. The House has already
taken this action. The subcommittee recommends the Senate
also make this change.
Senator Dyson, the subcommittee chair, reviewed the summary.
7:05:34 PM
Senator Dyson noted that historically the Public Defender Agency
has requested an Operating Budget amount similar to the level
requested the previous year, and then traditionally requested a
significant amount in Supplemental Budget bill. The Department was
requested to present a realistic comprehensive operating budget
"this year based upon history and what they reasonably expect". The
subcommittee struggled with the FY 06 requested budget, and, in a
public policy call, denied approximately $800,000 of the additional
funding request. The expectation would be that this amount would
reappear in the FY 06 Supplemental bill.
Senator Dyson noted that a similar public policy call occurred in
regards to the Public Advocacy program-funding request.
7:10:42 PM
Department of Law
Senator Bert Stedman, Subcommittee Chair
Senator Ralph Seekins
Senator Hollis French
Finance Subcommittee Department of Law Budget Closeout Report
Introduction
The Department of Law subcommittee used the FY 06 adjusted
base when determining appropriation levels. The subcommittee
accepted all departmental budget transactions from FY 05
Management Plan to the FY 06 adjusted base.
The Department of Law subcommittee adopted the following
motions in its close out meeting on April 7, 2005. This
narrative lists the proposed changes to the Governor's FY 06
request budget. Those components not listed in the narrative
are proposed at the same level as the Governor's FY 06 amended
operating budget request.
Departmental Spending Levels
Senate Chg 05 Governor's Governor
Subcomm Adj Base Proposed to Subcomm
General Funds $32,380,700 3.2% $33,275,600 (2.7%)
Federal Funds $ 2,603,000 236.2% $ 2,603,000 0.0%
Other Funds $21,498,200 1.3% $21,498,200 0.0%
Totals $56,481,900 5.8% $57,376,800 (1.6%)
Subcommittee Recommendations
In the Third Judicial District, the subcommittee denied a
General Fund increment of $161,400 to fund an anticipated
shortfall in federal Byrne Grant funding.
In the Criminal Appeals/Special Litigation Component, a
General Fund increment of $353,200 was denied. This request
was to fund a new cybercrime unit including one attorney and
one paralegal.
In the Civil Division, a General Fund increment of $430,300
was denied. This request was to fund a new senior fraud unit
including one attorney and one investigator.
Positions Analysis
The subcommittee approved an addition of 14 full-time
positions for FY 06. Twelve of these positions are funded with
federal funds and two are funded with Interagency Receipts
from the Department of Health and Social Services.
· In the Criminal Division, an increment of $1,9487,614 in
new U.S. Department of Justice grant funds was accepted
for enhanced rural prosecution ($697,447) and domestic
violence & sexual assault programs ($1,269,167). These
grants will fund six new attorneys, four paralegals, one
law office assistant and one grants administrator. The
subcommittee added intent language (see below) concerning
these new programs.
· In the Civil Division, an increment of $400,000 of
Department of Health and Social Services Interagency
Receipts was accepted to allow the Human Services Section
to improve the state's ability to collect its fare share
of Medicaid liens. This increment will fund one new
attorney and one new paralegal.
Missions and Measures
The subcommittee spent a brief amount of time reviewing the
department's top-level missions and measures. The subcommittee
recognized the need for the department to regularly review its
missions statement and to adjust its performance metrics as
necessary. It is apparent that the department has devoted a
considerable amount of time to trying to improve its ability
to monitor its effectiveness. The attorney General noted that
it is particularly difficult to set performance targets and
measures for the Civil Division. The department plans to
continue its efforts in pursing software solutions that may
help in this regard. The department's FY 06 Capital budget
includes a $1,000,000 request for software designed to improve
its case management and tracking abilities. This productivity
investment could provide the department and the legislature
with top level dashboard style metrics with which to better
monitor the department's efforts. The subcommittee established
no new results, targets or measures for the department during
this budget cycle.
FY 05 and FY 06 Intent Language
FY 05 - The department had no intent language in the FY 05
budget.
FY 06 - The subcommittee added the following intent language
for the FY 06 budget:
It is the intent of the legislature that the Department
of Law's FY 06 expansion of its Rural Prosecution and
Statewide Sexual Assault Program be exclusively funded
with U.S. Department of Justice Grants. If federal
funding is unavailable to fully sustain these programs in
the future, state general fund revenue is not assured.
Senator Stedman, the Subcommittee Chair, read the summary. He noted
in regard to the addition of the two positions in the Civil
Division that in the case of Medicaid litigation, "the federal
government doesn't cut its portion back on a negotiated settlement.
The compaction comes at the State's expense. There needs to be more
oversight at the State level to insure that the State isn't just
automatically squeezed because no one is looking after the State's
interest to just get a settlement to enrich the parties involved in
the litigation".
Office of the Governor
Senator Gary Wilken, Subcommittee Chair
Senator Ben Stevens
Senator Gene Therriault
Senator Albert Kookesh
[NOTE: A Subcommittee narrative report was not provided for this
Department.]
Co-Chair Wilken, the Subcommittee Chair, stated that the Office of
the Governor's FY 05 budget was $19,075,000. The Subcommittee
recommended a FY 06 budget of $15,601,600; for a decrement of
$3,473,400,400. The primary reason for the budget decrease was due
to this not being an election year.
Co-Chair Wilken stated that absent the election year obligations,
the major increments were $245,000 in Services, and other minor
funding categories for a total increase of $340,000.
7:15:30 PM
Department of Environmental Conservation
Senator Gary Wilken, Subcommittee Chair
Senator Gene Therriault
Senator Johnny Ellis
Department of Environmental Conservation Subcommittee Budget
Closeout
Introduction
The Department of Environmental Conservation subcommittee used
the FY 06 adjusted base when determining appropriation levels.
The subcommittee accepted all department budget transactions
from the FY 05 Management Plan to the FY 06 adjusted base.
Our subcommittee, composed of myself, Senators Therriault and
Ellis, reviewed the following motions and adopted them at our
close out meeting on April 7, 2005. This narrative lists the
proposed changes to the Governor's FY 06 requested budget.
Those components not listed in this narrative are proposed at
the same level as the Governor's FY 06 requested budget.
FY 06 Spending Levels
Senate Subcommittee Governor's Proposed
General Funds $13,364,100 $13,545,100
Federal Funds $17,488,800 $17,468,900
Other Funds $25,410,500 $25,472,700
Totals $56,263,400 $56,472,700
Subcommittee Recommendations
In the Information and Administrative Services section, an
increment of $234,200 of CIP receipts for Village Safe Water
Accounting Program was accepted.
In the same section, a general fund decrement of $12,000 for
procurement and administrative overhead was accepted.
In the DEC buildings and Maintenance section, a general fund
increment of $44,600 was accepted. These funds, coupled with
an increment of $44,600 in inter-agency receipts, will fund a
permanent maintenance position for the new DEC Health
Laboratory.
In the Food Safety and Sanitation section, an increment of
$255,800 in receipt supported services was accepted to
increase seafood monitoring and inspection.
In the same section, a general fund program receipt increment
of $30,000 was accepted. These funds, coupled with an
increment of $30,000 in inter-agency receipts, will fund a
position that will increase DEC's efforts in PSP/vibrio
shellfish outbreak testing.
In the Laboratory Services section, a general fund increment
of $66,900 for an assistant state veterinarian position was
denied. An increment of $48,500 in federal funding for the
position was adopted.
In the Air Quality section, $295,400 in interagency receipts
was accepted to fund the maintenance of the statewide
inspections and maintenance module. Intent language, listed
below, was also adopted for this transaction.
In the Water Quality section, a general fund decrement of
$50,000 was accepted.
In the Prevention and Emergency Response section, a decrement
of $150,000 in oil and hazardous prevention fund was accepted.
Positions Analysis
The subcommittee approved the addition of 14 permanent
positions. 12 of these positions were funded with non-general
fund sources.
Missions and Measures
The subcommittee recommends that the department revisit their
seafood testing measures and report back to the subcommittee
on their targets for food borne related illnesses in regulated
facilities. This request is in response to the increased level
of funding for these efforts and by the implementation of HB
378 that was adopted by the legislature in 2004.
FY 05 and FY 06 Intent Language
FY 05 - The department did not have any FY 05 intent language
FY 06 - the subcommittee adopted the following language:
It is the intent of the Legislature that the Municipality
of Anchorage and the Fairbanks North Star Borough take
the appropriate measures to fund one-half of the yearly
maintenance costs associated with the Vehicle Information
Database.
Closing Remarks
The subcommittee recommends that $150,000 of oil and hazardous
waste funding be appropriated to the Department of Military
and Veterans Affairs budget for Local Emergency Planning
Committee Efforts at the full Finance committee.
Co-Chair Wilken, Subcommittee Chair, noted that while the
Governor's proposed FY 06 GF budget was $13,545,100, the
Subcommittee recommended a GF budget of $13,364,100. He read the
Subcommittee recommendations and the Positions Analysis.
Co-Chair Wilken noted that as specified in the Missions and
Measures section of the Report, legislation that was adopted by the
Legislature in the year 2004, provided the Department "an increased
profile in seafood testing" for the State's aquaculture. The
Subcommittee requested that the Department concentrate on that
"important issue" and provide a report on that effort during FY 06.
Co-Chair Wilken noted that Intent Language was adopted by the
Subcommittee in regards to the Municipality of Anchorage and the
Fairbanks North Star Borough's financial participation in the
Vehicle Information Database, for he recognized that as being "a
local function" that the State has been funding.
Co-Chair Wilken noted that language under "Closing Remarks" affirms
his earlier statement pertaining to the $150,000 decrement to this
budget that would be transferred to the Department of Military and
Veterans Affairs to support the Local Emergency Planning
Committees.
7:19:07 PM
Senator Bunde referenced the Subcommittee recommendation in support
of increasing the Department by 14 new positions as he recalled
testimony that the State is experiencing difficulty in recruiting
skilled people for many positions. To that point, he asked whether
difficulty in filling these new positions might be anticipated.
MIKE MAHER, Director, Division of Information and Administrative
Services, Department of Environmental Conservation, explained that
some of the 14 positions would serve to replace positions that had
been erroneously deleted the previous year. A few positions would
be added to the Joint Pipeline Office, one position would be a
Homeland Security position, and three would be for the Village Safe
Water Program in regards to implementing accounting procedures.
There should be no issue in filling the positions.
Mr. Maher noted that the largest overall recruitment issue could
result from the Department of Administration's endeavor to conduct
a class study regarding 273 positions in the Department of
Environmental Conservation Division of Environmental Sciences. It
is anticipated that the bulk of those positions would be
downgraded. This would create recruitment and retention problems
for the Department.
Senator Bunde stated that that would be different than the
retirement system changes that might prove to be an obstacle to
recruitment.
Mr. Armstrong, Staff to Co-Chair Wilken, pointed out that a
technical change must be made in the Subcommittee Recommendations
section of the report: the $30,000 program receipt increment
specified as an increment of the Food Safety and Sanitation section
should be changed to be a Laboratory Services component.
Co-Chair Wilken acknowledged.
Department of Administration
Co-Chair Wilken revisited the Department of Administration
Subcommittee Closeout Report. [NOTE: The Department of
Administration report begins shortly after Time Stamp 7:02 PM.] He
noted that Mr. Josh Fink, Director, Office of Public Advocacy, had
endeavored, with some success, to implement cost containment
efforts. To that point, he asked Senator Dyson, the Department's
Subcommittee Chair, whether Intent Language should be included in
the report "that would ask Public Defenders what their options"
might be for cost containment as this has been a continual
challenge.
Senator Dyson responded that he was very impressed with what Mr.
Fink had done in this regard. Instead of contracting for services,
the Office hired a few people. That action saved approximately
$350,000. Such an effort "should be replicated".
7:23:18 PM
Co-Chair Wilken asked therefore, whether the inclusion of Intent
Language in that regard would be appropriate.
Senator Dyson responded that the Subcommittee had endeavored to
include this effort into the Department's Missions and Measures;
however, he would "be glad" to further pertinent Intent language.
Co-Chair Wilken voiced appreciation for that effort and suggested
that it be included in the final bill.
Co-Chair Green recalled a comment being made during the Department
of Administration Subcommittee report that a supplemental request
would be anticipated. She advised against giving the impression
that "it would be okay to present a supplemental". She spoke
against including language to the effect of "if this isn't enough,
come back" in the final budget language.
Senator Dyson appreciated that position; he voiced uncertainty as
to whether the FY 05 Supplemental Bill "reflected that kind of
policy intent". The Subcommittee's actions would be reviewed to
verify that such intent was not advanced.
7:24:55 PM
Department of Corrections
Senator Lyda Green, Subcommittee Chair
Senator John Cowdery
Senator Gary Stevens
Senator Kim Elton
Senate Finance Subcommittee Closeout Summary for the
Department of Corrections
FY06 FY06
Sen SC Gov Req
GF $166,133,300 GF $166,512,900
Fed 4,498,600 Fed 4,498,600
Other 21,524,300 Other 21,524,300
Total $192,156,200 Total $192,535,800
The subcommittee accepted all budget related changes that
are included in the FY06 Adjusted Base scenario as requested
by the Governor.
The subcommittee accepted all changes as requested by the
Governor and included the following intent for new program
accountability:
Administration and Support
Office of the Commissioner
It is the intent of the Legislature that the Department
of Corrections engage in an active recruitment campaign
to fill correctional officer and probation officer
vacancies and to reduce the use of overtime
agencywide."
Office of the Commissioner
It is the intent of the Legislature that the Alaska
Correctional Industries Commission established under AS
33.32.07 conduct its quarterly board meetings in a more
cost effective manner by utilizing teleconference
electronic communication and no longer use Correctional
Industries funds for travel or per diem expenses. It is
the intent of the Legislature that the Alaska
Correctional Industries Commission support the efforts
of the Commissioner to develop a plan that creates
self-sufficiency and an independent workforce by
providing employment opportunities to incarcerated
offenders."
Community Jails
$379.6 GF is reduced for the additional prisoner transport
costs incurred when the Kotzebue Jail was not
participating as a community jail.
It is the intent of the Legislature that the funding
appropriated for the Kotzebue Jail contract be made
available to the department only at the time the
contract is signed. If Kotzebue fails to enter into an
agreement with the Department of Corrections to provide
jail services, $350,000 General Funds shall be made
available for prisoner transport and $450,000 will be
reduced in the FY06 supplemental bill during the 2006
Legislative Session."
Co-Chair Green, Subcommittee Chair, pointed out that the
Subcommittee's budget report included substantial Intent Language.
Continuing, she shared that while the Subcommittee kept the
majority of the Governor's proposed budget components intact, it
had recommended a GF reduction of approximately $395,000 to that
proposed by the Governor.
Co-Chair Green noted that, with the Department's assistance, Intent
Language was included that would allow for increased recruitment
efforts in order to reduce Correctional staff overtime and provide
for improved monetary efficiencies. Intent Language also specified
that the Alaska Correctional Industries should be conducted in a
more cost effective manner by utilizing such tools as
"teleconferencing, electronic communication, and that in the
future, no longer use Correctional Industries funds for travel or
per diem expenses".
Co-Chair Green also read the Intent Language associated with
prisoner transfer expenses associated with the contract conditions
between the Department and Kotzebue Jail.
Senator Hoffman asked the State's "long-term solution" to operating
a jail in the City of Kotzebue, were use of the current community
jail unavailable.
PORTIA PARKER, Deputy Commissioner, Department of Corrections,
responded that were the City of Kotzebue to decide against signing
an agreement with the State for the use of its community jail,
efforts between the Department of Corrections and the Department of
Public Safety would be coordinated to transport prisoners to Nome's
Yukon-Kuskokwim Correctional Center.
Senator Hoffman asked for confirmation that that would be the
Department's long-term solution.
Ms. Parker affirmed that that was the plan at this time.
Senator Hoffman interpreted that reply to reflect a short-term
solution. Therefore, he again inquired as to the long-term
solution.
Ms. Parker responded that other options are being considered;
however, cooperative agreements would be required between the
Department of Public Safety and the City of Kotzebue. While the
terms have not of yet been finalized, the desire would be that the
Kotzebue Jail would be utilized.
Senator Hoffman repeated his question as to what the State's long-
term solution might be were the City of Kotzebue to decide against
signing a contract and providing that service to the State.
Ms. Portia assured that several options could be considered. None
of them, however, are currently being advanced, as negotiations
between the Department of Public Safety and Kotzebue are occurring.
Were a contract not forthcoming, other options would be explored.
Co-Chair Green noted that the Department "is not in a position to"
respond as thoroughly as Senator Hoffman might desire, as the
contract is currently being negotiated.
Court System
Senator Lyda Green, Subcommittee Chair
Senator Ralph Seekins
Senator Gretchen Guess
7:29:53 PM
FY 06 OPERATING BUDGET REQUEST: ALASKA COURT SYSTEM
The Senate Finance Subcommittee on the Court System's FY 06
Operating Budget met April 6, 2005, and adopted the attached
recommendations as shown on the summary and transaction
sheets prepared by the Legislative Finance Division. The
overall Court System FY 06 budget recommendation is $2671.7
below the Governor's requested amount and an increase of
approximately $2089.8 above the FY 06 Base. The following
actions were taken to arrive at this recommendation:
Court Component
FY 05 Management Plan $57,812.8
FY 06 GF Funding Request $62,331.1
FY 06 Senate Subcommittee Close-out $59,945.4
Increment Accepted
Funding Required for Positions Approved in the FY 05
Budget
Experience Pay for Deputy Clerk Positions
Increased Utility Costs
Upgrade Bethel Magistrate to Bethel District Court
Judge
Mental Health Wellness Court (MHTAAR)
Adult Guardianship and Caregiver Mediation Pilot
Project (MHTAAR)
Federal Grant Funding Increase
Other Grant Funding Increase
Increased Authority for Statutory Designated Receipts
Drug/DUI Case Manager
Anchorage Court - Boney Janitorial
Increment Modified
New Positions within the Trial Courts
Life-Cycle Replacement of Computer Systems
Staff Development & Sustained System's Training
Lease Expenses in Bethel, Unalaska, Unalakleet and
Homer
Increment Denied
2% Salary Increase for Non-Union State Employees
Expand Court's Salary Schedule to Include "G" Step
Increased Hourly Pay for Court-Appointed Attorneys
Bethel Court Security Screening
Increased Lease Expense in Emmonak
Juror Process Enhancement
PERS Rate Increase
Workstations, Office Equipment and Replacement Furniture
Alaska Judicial Council Component
FY 05 Management Plan $753.2
FY 06 GF Funding Request $962.3
FY 06 Senate Subcommittee Close-out $682.8
Increment Accepted
Increased Costs for Judicial Selection and Judicial
Retention
Employer Provided Benefits
Increment Modified
Personal Services-subcommittee eliminated two staff
positions (see intent language)
Increment Denied
2% Salary Increase for Non-Union Employees
Baseline Recidivism for Alaska Offenders
Personal Services Underfunding
Computer Network and Website Maintenance
Alaska Commission on Judicial Conduct Component
FY 05 Management Plan $251.2
FY 06 GF Funding Request $267.7
FY 06 Senate Subcommittee Close-out $263.2
Increment Accepted
Office Space Rent
Increment Denied
2% Salary Increase for Non-Union State Employees
Intent Language Adopted:
(1) It is the intent of the legislature that all agencies of
the Judicial Branch work with the Office of Management
and Budget in order to bring their Missions and Measures
into compliance with the philosophy and format
recommended by OMB.
(2) It is the intent of the legislature that the Judicial
Council delete PCNs 410010 (Research Analyst) and 410003
(Staff Attorney) in order to comply with reduced
appropriations in this allocation.
Co-Chair Green, the Subcommittee Chair, reviewed the Subcommittee's
total budget recommendation and noted that the Court System
traditionally has a "very long list of wants, needs, and wishes".
The Subcommittee endeavored to address those needs "to the greatest
extent possible" though a prioritization effort that ranked
Statewide needs the highest. She noted that the Subcommittee Report
details the various increments that were accepted, modified, and
denied.
Co-Chair Green specified that in the Alaska Judicial Council
Component there was a reduction of approximately $165,200 including
two staff reductions.
Co-Chair Green reviewed the list of increments accepted under the
Court Component and characterized the majority of the items as
being "fairly small increments".
Co-Chair Green noted that efforts were made to satisfy both the
Department's and the Subcommittee's desires.
Co-Chair Wilken asked whether the budget specified for the Judicial
Council was correct on the Subcommittee Report Summary Sheet, as he
calculated the reduction to be $83,700.
Co-Chair Green acknowledged that the sheet might be incorrect. A
reduction amounting to $165,200 should be depicted as an
approximate $90,000 position and a $71,000 position were
eliminated.
In response to a question from Co-Chair Wilken, Co-Chair Green
expressed that the budget recommendations of both the House and the
Senate should be approximately the same.
CHRIS CHRISTENSON, Deputy Administrative Director, Alaska Court
System, voiced the understanding that a decrement of approximately
$165,000 occurred in the Personal Services component of the Alaska
Judicial Council. Intent language in this regard is specified in
Item (2) under the "Intent Language Adopted" section of the report.
Continuing, he noted that an increment of approximately $85,000 was
included in the Contractual component to address the fact that "a
record number" of 33 judges would be "standing for retention" in FY
06.
Co-Chair Wilken ascertained, therefore, that the net reduction for
the Alaska Judicial Council budget component is reflected in the
report.
Senator Hoffman asked how recently non-union State employees had
received a salary adjustment.
Mr. Christenson responded that the most recent salary increase for
non-union Court System employees occurred at the same time the
collective bargaining employees last received one. "It was several
years ago." The increase being requested for FY 06 would align
those employees' wages with those of union employees.
In response to a question from Senator Hoffman, Mr. Christenson
stated that he could not recall the specific year the last increase
had been provided.
Legislature
7:36:43 PM
Senator Gary Wilken, Subcommittee Chair
Senator Ben Stevens
Senator Gene Therriault
Senator Lyman Hoffman
[NOTE: A Subcommittee narrative report was not provided for this
Department.]
Co-Chair Wilken, Subcommittee Chair, expressed that the
Subcommittee's FY 06 recommendation is for $42,366,600; a 2.5
percent increase over the FY 05 budget of $41,344,000. The increase
would primarily address the $78.00 per month per employee increase
in health insurance premiums and a two and two-thirds percent
increase in the Working Reserve Fund contribution.
Senator Hoffman asked the number of new employees being budgeted.
Co-Chair Wilken responded that ten part-time positions were
eliminated and no full-time positions were added.
7:38:26 PM
Department of Education and Early Development
Senator Gary Wilken, Subcommittee Chair
Senator Gary Stevens
Senator Bettye Davis
Senate Finance Subcommittee Report for the Department of
Education and Early Development
Introduction
The Senate Finance subcommittee for the Department of
Education and Early Development considered the Governor's FY
06 operating budget proposal. The table below summarizes the
subcommittee's recommendation for the Department's FY 06
budget. Proposed funding to help offset increases in the
Public Employees' Retirement System and the Teachers'
Retirement System will be considered through separate
legislation.
Operating General
Budget Purpose Federal Other Total
FY06 Adj Base
$32,743.9 $151,181.1 $18,418.2 $202,343.2
FY06 Gov Amd+Ed
$35,612.7 $193,098.3 $18,616.1 $247,327.1
(S) Recommendation
$35,091.9 $193,098.3 $18,616.1 $246,806.3
Note: Contractual GF salary increase of $237,000 is
included in the above amounts, but the language section
recommendation ($300.0 to address Moore v. State) is not
included
Funding for the K-12 Foundation Program and Pupil
Transportation is included in Senate Bill 98, the Fast Track
Supplemental, and therefore, this funding request was not
included in the general operating budget. The previously
approved financial support in SB 98 (March 30,2005) funds a
$4,919 Base Student Allocation, and additional $343 per
student.
Subcommittee Recommendations
The subcommittee reviewed the general purpose proposed changes
in the Governor's FY 06 budget and accepted the changes with
the following exceptions:
Executive Administration
Approved a partial general purpose increment request for
$13,400 to provide PFT funding for a Special Assistant to
the Commissioner, from a 10-month employee to a 12-month
employee
Denied an additional $100,000 general purpose request to
help fund the State Board of Education's priorities;
federal discretionary funds can be used to support the
Board goals.
Mt. Edgecumbe Boarding School
Approved a general purpose increment request for $745,800
to support additional residential operating costs
incurred with 30-60 new students; additional operating
costs ($254,200) will be supported through the foundation
formula
Library Operations
Approved a partial general purpose increment request for
$125,000 to fund operational increases due to previous
charge backs
Museum Operations
Approved a partial general purpose increment request for
$75,000 to fund operational increases due to previous
charge backs.
Position Analysis: Full-time and Part-time
In FY 05, the Department of Education and Early Development
had 294 full-time and 37 part-time employees. In the proposed
FY 06 operating budget, one part-time 10-month employee
becomes a 12-month full-time employee, funded by general
purpose dollars; final employee count - 295 full-time and 36
part-time.
Previous Legislative Intent
The following intent was included in the FY 05 operating
budget:
It is the intent of the legislature that the Department
of Education and Early Development make every effort to
reduce interagency charge back between divisions and that
the department advance a general fund appropriation from
executive administration, including the State Board of
Education and early Development and the commissioner's
office in the Governor's FY 2006 budget request.
In response, the department requests a fund change from
interagency receipts to general purpose dollars in the amount
of $551,100. The subcommittee recommends the adoption of this
fund source change.
Mission and Measures Analysis
The department's main mission is to ensure quality standards-
based instruction to improve academic achievement for all
students. The measurement of this mission is "Reduce the
number of schools that do not demonstrate Adequate Yearly
Progress (AYP)." The number of schools demonstrating AYP
increased from 206 schools to 290 schools, a 40 percent
increase.
However, several schools are having difficulty meeting the
standards set by the federal government under "No Child Left
Behind" and will be facing very tough decisions during the
next school year. The subcommittee recognizes the enormous
task facing these school districts and recommends active
involvement by the department with all interested
stakeholders. The subcommittee requests to be kept informed on
the progress of the schools designated as a "Level 5 School."
Co-Chair Wilken, the Subcommittee Chair, referenced the Previous
Legislative Intent section of the report and noted that that
language was developed to address the "burden" that interagency
receipts had become to many department components due to department
downsizing; specifically museum and archive operations "because
they were shouldering a disproportionate share of the interagency"
receipts. The Subcommittee accepted the Administration's request to
replace Interagency Receipts with $551,000 of GF. That action
"would relieve the burden on the museum, archives and libraries".
Co-Chair Wilken also noted that the Subcommittee recommended
funding to support an additional 18 students at the Fort Richardson
Alaska Military Youth Academy. This recommendation differs from
that of the House as the Senate limited its' funding to support the
residential housing component.
Co-Chair Wilken stated that the Subcommittee also recommended the
acceptance of $30,000,0000 in increased federal funds for special
and supplemental services.
Co-Chair Wilken remarked that while the Governor had proposed one
million dollars for Mt Edgecumbe School, the Subcommittee's
recommended $745,800. The Governor's request was based on the FY 05
Base Student Allocation, which is anticipated to be increased to a
minimum of $4,919 in FY 06; that increase would account for the
difference in the budget recommendations. Another factor would be
that the Subcommittee funded the residential component; however,
elected not to fund certain educational components such as busing
and things traditionally included in a school budget. The
Subcommittee requested that those things be accounted for in the
Student dollar.
Co-Chair Wilken pointed out that while the Governor had included
$300,000 for Library and Museum operations, the Subcommittee
recommended $200,000 with the caveat being an additional $164,000
of GF to replace the Interagency Receipts. The inclusion of this
money would serve to increase the funding above the Governor's
requested level.
Co-Chair Wilken informed the Committee that the Governor's budget
proposal was an increase of 10.5 percent over the FY 05 management
plan; the Subcommittee's recommendations would amount to an eight-
percent increase.
Co-Chair Wilken read the "Position Analysis" section of the report;
and noted that, as reflected in the "Missions and Measures
Analysis' section of the Report, several schools in the State are
"in peril" of being "taken over" by the State due to their Level 5
School designation under the federal "No Child Left Behind"
standards. The Department has been asked to provide the
Subcommittee updates on the status of those eight schools,
specifically in regards to how the Department is assisting those
schools in improving their status designation.
This concluded the Subcommittee reports.
7:43:26 PM
Co-Chair Wilken summarized that the total FY 06 Governor's Proposed
Operating Budget would exceed the FY 05 budget by $290,800,000 with
75-percent of that increase being attributed to fixed costs. The
Committee's Subcommittees have reduced that 25-percent balance of
approximately $76,800,000 to approximately $38,300,000: a 50-
percent reduction.
Co-Chair Wilken informed the Committee that a summary of the
overall Committee budget information, as well as a summary
comparing the Committee's Subcommittee recommendations to those of
the Governor's and the House's operating budget proposals would be
provided.
Co-Chair Wilken stated that public testimony on the Operating
Budget is scheduled for April 12 and 13, 2005. The suggested
deadline for amendments would be noon, April 13th with debate of
the amendments scheduled for April 14th.
Senator Hoffman asked whether the amendment deadline could be
extended until after the public testimony in order to provide
adequate consideration of public concerns.
Co-Chair Wilken concurred. The "soft" goal would be to have all
amendments submitted by noon on April 13th.
7:46:28 PM
Co-Chair Wilken communicated that, in an effort to make this
process more efficient in the future, over the Interim he and his
staff would attempt to develop a common format for the Subcommittee
budget reports.
Mr. Armstrong distributed work draft committee substitutes, SCS CS
HB 66 (FIN) Version 24-GH1075\Y and SCS CS HB 67 (FIN) Version 24-
GH1073\L [copies on file].
ADJOURNMENT
Co-Chair Wilken adjourned the meeting at 07:47 PM.
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