Legislature(2015 - 2016)SENATE FINANCE 532
03/11/2015 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB27 | |
| Overview: Fy 16 Budget Department of Education and Early Development | |
| Overview: Fy 16 Budget Department of Law | |
| Overview: Fy 16 Budget Department of Commerce, Community and Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 27 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 11, 2015
9:05 a.m.
9:05:03 AM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 9:05 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
Michael Hanley, Commissioner, Department of Education and
Early Development; Heidi Teshner, Director, Administrative
Services, Department of Education and Early Development;
James Cantor, Deputy Attorney General, Department of Law;
Dave Blaisdell, Director, Administrative Services Division,
Department of Law; Richard Svobodny, Deputy Attorney
General, Criminal Division, Department of Law; Catherine
Reardon, Administrative Services Director, Department of
Commerce, Community and Economic Development.
SUMMARY
SB 27 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 27 was HEARD and HELD in committee for further
consideration.
FY 16 BUDGET OVERVIEWS:
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
DEPARTMENT OF LAW
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT
SENATE BILL NO. 27
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, making
reappropriations, and making appropriations under art.
IX, sec. 17(c), Constitution of the State of Alaska,
from the constitutional budget reserve fund; and
providing for an effective date."
9:06:07 AM
^OVERVIEW: FY 16 BUDGET DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT
9:06:07 AM
MICHAEL HANLEY, COMMISSIONER, DEPARTMENT OF EDUCATION AND
EARLY DEVELOPMENT, discussed the PowerPoint, "Alaska
Department of Education and Early Development, FY2016
Budget Overview" (copy on file).
Commissioner Hanley looked at slide 5, "Department of
Education and Early Development, FY 2016 Governor Amended
Budget." He stated that the slide gave the overview in the
Department of Education and Early Development (DEED). He
remarked that DEED was the smallest department, aside from
the Governor's office. He stated that there were 359 total
employees, with 126 in the "Goldbelt" who actually run
DEED.
Co-Chair Kelly queried the number of students at Mt.
Edgecumbe High School. Commissioner Hanley responded that
there were approximately 400 students at Mt. Edgecumbe.
Commissioner Hanley highlighted slide 6, "Budget by Core
Services." He noted that 80 percent of the DEED budget was
public school funding, which was distributed in a formula
to the state's public schools. He remarked that 14 percent
of the budget was for fiscal accountability, compliance,
and oversight. He explained that DEED worked with the
school districts on accountability for the received state
and federal funds. He stated that 2 percent of the budget
was for school effectiveness programs, which helped to
provide coaches, mentors, and other support programs for
the schools. Lastly, 4 percent of the budget was for active
partnerships, for programs like Best Beginnings and Parents
as Teachers.
Commissioner Hanley addressed slide 7, "Department of
Education and Early Development, FY 2016 Governor Amended
Budget by Fund Source." The DEED budget was divided into
two components: K-12 formula programs, $1.4 billion; and
agency operations at $324 million. He noted that $211
million of the $324 million was federal funds. The only GF
component for DEED was the approximately $73 million. The
federal programs within the budget were title programs like
the free and reduced lunch programs; services for homeless
and impoverished students; and low performing students. The
bottom of the slide displayed the budget by fund source: 85
percent of the overall budget was GF; 13 percent was
federal funds; and 2 percent was other funds that came from
interagency receipts, the Mental Health Trust Board, and
certificate renewals.
9:11:01 AM
Commissioner Hanley highlighted slide 8, "General Funds
Only." The graph represented the relationship between the
DEED agency and the overall budget. He stressed that 95
percent of the GF only budget was for K-12 formula
programs.
Commissioner Hanley discussed slide 9, "All Fund Sources by
Line Item." He noted that 94 percent of the funding was
distributed in grants. He remarked that the 4 percent of
other lines were for assessment contracts for mentors and
coaches. He noted that 2 percent of the budget was for
personal services.
Commissioner Hanley looked at slide 10, "Department of
Education and Early Development Agency Operations." He
remarked that the 63 percent of the agency budget was
federal funding through the title programs. He stressed
that the money did not necessarily stay within the
department. The federal funding was considered agency
funds, but most of the federal funds were distributed to
the districts.
Co-Chair Kelly surmised that the federal funds were
distributed in the form of grants. Commissioner Hanley
agreed.
Commissioner Hanley highlighted slide 11, "Department of
Education and Early Development, FY 2015 Management Plan
vs. FY 2016 Governor Amended." He pointed out that the
budget was formulated to reflect a $95 million reduction.
He noted that the $95 million represented the one-time
funding from the FY 15 budget. He remarked that it was not
a true "reduction", but rather represented an adjustment.
He explained that DEED was working extensively in
determining true reductions to the agency and districts. He
noted that there were two permanent full-time positions
eliminated, and three non-permanent positions from a
federal program funding.
Co-Chair MacKinnon opined that the full-time employment
positions were not currently filled. Commissioner Hanley
responded that the three non-permanent positions were
complete, and the other two positions were vacant.
Vice-Chair Micciche asked for an explanation of the
reduction of the $1.88 million in federal receipts.
9:15:13 AM
HEIDI TESHNER, DIRECTOR, ADMINISTRATIVE SERVICES,
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT, did not know
why there was a reductions of $1.88 million in federal
receipts. She agreed to provide further information.
Vice-Chair Micciche remarked that it looked like the
reduction was in the governor's amended budget.
Commissioner Hanley discussed slide 12, "Department of
Education and Early Development, FY 2016 Governor Amended
Budget Highlights":
Student and School Achievement
•($53.7) UGF & ($8.0) Federal reduction to remove
one PFT position
•($100.0) UGF reduction to remove the Alaska
Mineral and Energy Resource Education Fund
(AMEREF) grant funding
•($300.0) UGF reduction to the Alaska Native
Science & Engineering Program (ANSEP) grant
funding
Alaska Learning Network (AKLN)
•($250.3) UGF reduction to the AKLN program
funding
Early Learning Coordination
•($50.0) UGF reduction for Best Beginnings grant
funding
•($20.0) UGF reduction for Parents As Teachers
base grant funding
Commissioner Hanley looked at slide 13, "Department of
Education and Early Development, FY 2016 Governor Amended
Budget Highlights":
Pre-Kindergarten
•($100.0) UGF reduction for Pre-K grant funding
State Facilities Rent
•$200.0 UGF one-time item increase for dual
occupancy in the last three months of FY2016
Co-Chair Kelly surmised that the administration was
requiring lease payments. Commissioner Hanley replied that
there were some facilities in the State Office Building. He
wondered if they were all state facilities. Ms. Teshner
replied that the leases were paid through the public
building fund.
Co-Chair Kelly understood that the payments were not actual
rent payments. He felt that there could be adjustments in
administration. Commissioner Hanley agreed.
Commissioner Hanley continued to discuss slide 13:
Library Operations
•($66.3) UGF reduction to remove one PFT position
•($33.8) UGF reduction to reduce one inter-
library loan assistant position to half-time
•($2,000.0) UGF reduction to the Broadband grant
funding from HB278
9:20:31 AM
Co-Chair MacKinnon understood that the federal government
required a high level of broadband, but DEED was only
attempting to meet the lowest level. Commissioner Hanley
replied that the federal guidelines had a higher levels
than the base for most of Alaska.
Co-Chair MacKinnon remarked that Alaska was facing a $3.7
billion deficit. She felt that there would be a recurring
cost in future years. She remarked that there should be a
prioritization of programs, rather than decreasing each
program a small amount.
Co-Chair Kelly felt that eliminating vacant positions were
not the best option for reducing the budget. Co-Chair
MacKinnon agreed.
Senator Dunleavy remarked that the House Finance Committee
finalized their operating budget. He anticipated a final
recommendation that would greatly reduce the budget.
9:25:53 AM
Senator Olson addressed the broadband issues, and wondered
how much of the reduction caused a loss of federal funding.
Commissioner Hanley replied that, currently, the governor's
request would have zero impact on federal funding. He
furthered that the House Finance Committee removed all the
funding, but $3.6 million was restored. That number would
represent approximately what the combination of GF and
federal funding would purchase.
Senator Olson wondered how the following year's budget
would affect the federal funds. Commissioner Hanley replied
that the e-rate would be leveraged, if the funds remain
intact.
Senator Olson wondered why the affectivity was not analyzed
based on individual programs, rather than cutting parts of
separate programs. Commissioner Hanley replied that DEED
had conducted an analysis of the program affectivity.
Vice-Chair Micciche wondered if DEED was making an effort
to create public/private partnerships fore. Commissioner
Hanley replied that those programs represent private
partnerships.
9:30:12 AM
Commissioner Hanley discussed slide 14, "Department of
Education and Early Development, FY 2016 Governor Amended
Budget Highlights":
Online With Libraries (OWL)
•($42.0) UGF reduction to reduce funding for one
University of Alaska position to half-time
Alaska Commission on Postsecondary Education
(ACPE);
Program Administration and Operations
•$13,802.0 I/A Receipts (Other) for budget
structure modification to represent ACPE costs
paid by ASLC
•($13,802.0) ACPE Receipts (Other) for transfer
of receipts from ACPE to the new ASLC
appropriation
Alaska Student Loan Corporation (ASLC); Loan Servicing
•$13,802.0 ACPE Receipts (Other) for transfer of
receipts from ACPE to the new ASLC appropriation
Commissioner Hanley highlighted slide 15, "Department of
Education and Early Development, FY2016 Capital Budget":
School Construction Grants -Total $4,604.4 UGF
-Kivalina K-12 Replacement School -new facility
design, $4,604.4 UGF
9:33:12 AM
Senator Dunleavy queried the origin of the $63 million for
the Kivalina School. Commissioner Hanley replied that the
total cost of the school was between $63 million and $68
million. The Northwest Arctic Borough School District had
20 percent local contribution, so the state's share was
approximately $48 million.
Senator Dunleavy wondered if the school was designed to be
$63 million, or if the budget was only an approximation.
Commissioner Hanley replied that the figure was based on
design plans, which following specific DEED statutes and
regulations. There were various criteria that included
square footage, and other aspects. He noted that the
original proposal was $100 million, and DEED worked
extensively with the district to determine the final budget
cost.
Senator Dunleavy asked how many students were currently
enrolled in the Kivalina School. Commissioner Hanley
replied that there were 130 students. He furthered that it
was one of the few schools that had shown slight increases
to the student population. The current school was built for
65 students.
Senator Dunleavy queried the balance in the school
construction account. Commissioner Hanley wondered if
Senator Dunleavy referred to the Regional Educational
Attendance Area (REAA) account.
Senator Dunleavy queried the balance in the REAA account.
Commissioner Hanley replied that the Kivalina was not a
part of the REAA. The school required a specific
appropriation.
Senator Dunleavy asked if there were any construction funds
in other categories for total school construction. Ms.
Teshner replied that there was approximately $40 million in
the school construction fund, and she would provide the
exact available balance at a later date.
Senator Bishop asked if the road construction was included
in the $63 million. Commissioner Hanley stated that it was
not included.
9:37:09 AM
Senator Olson wondered if the Kasialie Case included
ancillary costs related to building a school. Commissioner
Hanley replied that the case did not include ancillary
costs. The case examined the top five projects on the CIP
list, and determined that they would be named in the
Kasialie Case. He furthered that prior to the settlement,
the Kivalina School was the top school.
Senator Olson stated that it was his understanding that
there were considerations for ancillary costs to the
building of the school. Commissioner Hanley stated that in
the year that it took to settle the case, an amount or
price was not negotiated.
Senator Olson asked if there was a penalty to the state for
not abiding to the Kasialie Case in a timely manner.
Commissioner Hanley responded that the settlement
determined that the state would fund the school in the
current year. He stated that the case would not be
reopened, as long as the school was funded in a timely
manner. He felt that there was a moral and legal obligation
to honor the settlement. He did not believe the state would
benefit from depositing money into an account that could
not be accessed for many years.
9:40:55 AM
Co-Chair Kelly felt that $63 million for a school and a $35
million for a road that would only benefit 130 students was
absurd.
Senator Dunleavy estimated that the cost per student was
$484,615 per student, which was $16,153 per student over
thirty years - not including the operating costs.
Commissioner Hanley concurred that the cost of the school
was hugely expensive. He remarked that the cost per student
in the rural schools was more expensive than the urban
schools.
Co-Chair MacKinnon stated that she felt a subcommittee
should be formed to examine how schools were being
constructed, and perhaps streamline some features in order
to save costs. She referred to design and development as
an area to look for ways to decrease costs.
Commissioner Hanley noted that there was a study in the
previous year that was tasked to examine the benefits and
disadvantages of a prototypical school design. He study
would be released in June.
Co-Chair MacKinnon surmised that the study was awarded to
the engineers that would benefit from the individual
design. She expected that the study would suggest that
every school must be a standalone project, so the engineers
may not consider Alaska's interests or the cost of the
standalone projects.
Senator Hoffman noted a provision from a bill in the
previous year, and echoed concerns with the high cost of
construction in rural Alaska. Commissioner Hanley concurred
that Senator Hoffman's comments were correct.
9:48:07 AM
Co-Chair Kelly asked Senator Hoffman to restate his
question.
Senator Hoffman wondered if the formula for urban schools
would be reflected in the rural school formulas.
Commissioner Hanley replied in the affirmative.
Senator Hoffman commented that the Kasialie Case settlement
was specific. He noted that the Kivalina School was the
last on the list, but it did not mean that the state would
quit funding the construction rural schools.
Senator Dunleavy opined that a larger committee should be
formed to look at overall education policy. He remarked
that construction was over a $1 billion operation cost
item. He felt that issue was not specific to the Kivalina
School, but the cost of education was extremely costly. He
remarked that the focus should be on providing a quality
education with decreasing funds.
Co-Chair Kelly felt that the legislature had lost its right
to appropriate funds. He furthered that the legislature did
not have to fund the schools according to the court's
settlement. He felt that the subcommittee should not only
address school funding, but the rights of the legislature.
Senator Dunleavy shared that there may be an additional
$220 million for education in Ketchikan.
9:53:38 AM
Senator Olson remarked that rural education was expensive.
He furthered that Alaska did not want federal overreach. He
noted that there was a mine near Kivalina, which provided
taxes and revenues to the state. He declared that the
hesitancy to educate children in Kivalina was not unlike
the colonial days.
Co-Chair Kelly announced that the people of Kivalina had
subservice rights that he did not enjoy. He felt that the
people of Kivalina had many rights that other people in the
state did not have. He said that the people of Kivalina did
not "necessarily need a school, they need an education." He
remarked that there should be money in distance learning.
Senator Olson felt that the courts were involved in order
to determine what the communities were constitutionally
assured.
Vice-Chair Micciche felt that the decisions were not
logical. He remarked that schools in urban areas were built
based on population density, not because another part of
the state had a school. He felt that the courts were not
logical in determining that a school should be built in a
smaller populated area.
Co-Chair Kelly stressed that there should be quality
education in rural Alaska.
9:57:56 AM
Commissioner Hanley continued to discuss slide 15:
School Major Maintenance Grants -Total $13,491.2 UGF
($3,491.2 UGF direct appropriation and a
reappropriation not to exceed $10,000.0)
-Petersburg Middle/High School Boiler Repair,
$24.5 UGF
-Andrew K Demoski K-12 School Renovation, Nulato,
$10,637.7 UGF
-Nome City School District -Districtwide Lighting
Replacement, $192.8 UGF
-Bethel Campus Boiler Replacement, $2,636.1 UGF
Co-Chair MacKinnon remarked that the legislature wanted
quality education for Alaskan students. She noted that the
court determined that the legislature must allocated $38
million to a school. She surmised that the money could be
allocated to Kivalina, and the money would stay there for
several years. The committee could, however, set that money
aside with the plaintiffs and move forward on other
maintenance projects.
Senator Olson looked at slide 15, and wondered what would
happen if the aerospace reappropriation was not approved.
Commissioner Hanley replied that the first lest would be
approved, and only part of the second project.
Senator Olson wondered if there would be enough money to
being the maintenance of Nulato. Commissioner Hanley
responded that there would be enough money to begin Nulato.
Senator Dunleavy remarked that there were 329 positions
authorized within DEED, and queried the recommendations if
there were a 7 percent or 10 percent reduction.
Commissioner Hanley replied that there were conversations
about further reductions. He stated that most of the
Commission on Postsecondary Education (CPE) positions
operated under receipts, so reducing a position there would
have very little gain for the state. He stressed that he
wanted to protect Mt. Edgecumbe, but would look at reducing
the Goldbelt and library archive museums. He stated that
there would be a reduction of services in support for the
school district. He would work directly with the division
directors.
Senator Dunleavy queried the most expensive programs in
DEED that did not directly address the core mission.
Commissioner Hanley responded that there were some
partnerships that were not core to the K-12 mission. He
stressed, however, that they were very valuable programs.
He announced that Alaska Native Science and Engineering
Program (ANSEP) was very expensive program, but felt that
it was not a core mission. He announced that Best
Beginnings was expensive, but not core to the mission. He
stressed that they were valuable programs. He stated that
there was a $2 million Pre-K program, which had not yet
expanded. He felt that the mission should fall below
kindergarten. He stated that there was a mentor program
that supported new teachers, and he felt that the program
was core to the mission. The program had shown results in
both retention and recruitment of teachers, as well as
student improvement.
10:06:23 AM
Senator Dunleavy wondered if Mt. Edgecumbe fell under the
core mission of DEED. Commissioner Hanley replied in the
affirmative. He furthered that residential schools were
core to the mission of DEED. He furthered that those
schools were tremendous residential programs.
Senator Dunleavy felt that the committee should reexamine
the education policy. He noted that the students at Mt.
Edgecumbe would be able to go to a different school, if Mt.
Edgecumbe were to close. He stressed that Alaska did not
have the luxury of determining the benefits of each
program. He remarked that there was a vast deficit in the
state, so the conversations needed to occur immediately. He
felt that there would be reductions of programs.
Senator Dunleavy wondered what amount of the federal
funding went directly to the schools. Ms. Teshner replied
that 90 was delivered to schools through grants, and 5
percent was delivered through contracts.
10:09:59 AM
AT EASE
10:16:10 AM
RECONVENED
^OVERVIEW: FY 16 BUDGET DEPARTMENT OF LAW
10:16:43 AM
JAMES CANTOR, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF
LAW, introduced himself.
Co-Chair Kelly stated that he would be leaving the meeting
early.
DAVE BLAISDELL, DIRECTOR, ADMINISTRATIVE SERVICES DIVISION,
DEPARTMENT OF LAW, discussed slide 4 of the PowerPoint,
"Department of Law Senate Finance Committee Department
Overview" (copy on file). He stated that the governor's
budget was $84.443 million, which was a reduction of
approximately $7 million from the FY 15 budget. The
reduction was in overall funds, with $5.4 million in the
civil division; $1.4 million in the criminal division; and
$172,000 in administrative services.
Mr. Blaisdell looked at slide 5, "Potential Impacts of
Client Agency Budgets":
34 percent of the Department's budget is funded from
sources other than undesignated general fund.
Substantially all of those funds are from other
agencies.
As other departments draw down or eliminate programs,
the amount of legal support required may be reduced.
However, past experience indicates that program
elimination or downsizing generally has a short-term
uptick in level of legal work that is necessary.
-Legal efforts required by other agencies are not
predictably parallel to reductions -an area of
concern is that sister agencies may "cut corners"
when seeking Law's expertise, potentially leading
to greater legal trouble in the future.
Mr. Blaisdell addressed slide 6, "Budget Comparison: UGF
Only." The Civil Division saw an 18.9 percent reduction,
which factored a $2 million multi-year appropriation in
2015. The Criminal Division had a 4.7 percent reduction.
The Administrative Services saw a 7.3 percent reduction.
There was a total reduction of 11.6 percent for FY 16. The
largest piece of GF were oil, gas, and mining; child
protection; labor and state affairs; and natural resources.
Mr. Blaisdell looked at slide 7, "FY 14 Criminal Division
Actuals." He stated that personal services was the largest
cost driver at 84 percent. The core services for the
Department of Law was 10 percent of the budget. He
furthered that the travel was divided between employee and
non-employee, because over half of the travel budget was
for non-employee travel as related to moving witnesses to
and from court.
10:21:26 AM
Mr. Blaisdell discussed slide 8, "FY 14 Civil Division
Actuals." He stated that adding the outside council to the
personal services percentage totaled approximately 85
percent of the budget. He noted the 10 percent for the core
services chargeback. He stressed that most of the
reductions would be from personal services.
Mr. Blaisdell addressed slide 9, "FY 16 Budget
Development." He noted that in the previous year for one-
time items there was $5.315 million. He explained that
there was $15 million from the Mental Health Budget for
training dollars. The $5.3 million included $3.8 million
for outside council for oil, gas, and mining matters; and
$1.5 million for gas line activity. The $2 million was a
multi-year appropriation for the Flint Hills litigation.
There were statewide items that included the automatic
healthcare and salary increases, totaling $1.318 million.
The adjusted base for the Department of Law was $89.405
million
10:26:57 AM
Co-Chair MacKinnon wondered if those eliminated positions
were currently filled. Mr. Blaisdell replied that the
department had recently implemented a policy to keep some
positions available. He stated that the Criminal Division
had 15 open positions, but 14 of those positions were
filled in the current year. The Civil Division had 9 vacant
positions, but 8 of those positions were filled in the
previous year.
Mr. Cantor furthered that there would be some filled
positions reduced. He remarked that there were some shifts
in positions.
Co-Chair MacKinnon stressed that she did not want anyone to
lose their jobs. She wondered if there was a strategy to
balance the positions. Mr. Cantor responded that the
department was currently adjusting the positions.
Co-Chair Kelly handed the gavel to Co-Chair MacKinnon.
Mr. Blaisdell discussed slide 10, FY 15 to FY 16 Department
Comparison." The slide showed a $7 million reduction in the
budget, with $2.3 million from personal services. The $4.4
million from contractual services was from a one-time prior
year appropriation.
Mr. Blaisdell addressed slide 11, "Personal Services
Distribution." He remarked that there would be a loss of 19
positions, with 10 in the Civil Division and 9 in the
Criminal Division.
10:31:50 AM
Senator Olson wondered how the $3.4 million for outside
council for oil and gas compared to years past. Mr.
Blaisdell replied that the number was substantially higher
four or five years prior. The number depended on the
current cases. The number showed a reduction associated
with the Strategic Reconfiguration Case, which did not
require much outside council.
Senator Olson wondered if the outside council was from
outside of the state. Mr. Blaisdell replied that there was
some council from both in the state and from outside the
state.
Senator Hoffman looked at slide 7, and wondered if the
travel included the travel of state troopers. Mr. Cantor
responded that the budget did not include state trooper
travel.
Senator Hoffman wondered who would cover the costs of
someone who needed to travel from Goose Creek to Bethel.
Mr. Blaisdell deferred to Mr. Svobodny
RICHARD SVOBODNY, DEPUTY ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, explained that individuals in
custody that were transferred for trial from Goose Creek to
Bethel would be covered by the Department of Public Safety
(DPS). He stated that the witness travel would be covered
by the Department of Law.
Senator Hoffman wondered if the individuals could be
transferred under contract with someone with a less
salaried position. Mr. Svobodny replied that he did not
know the answer.
Senator Hoffman reiterated that there may be other areas
that could reduce personnel costs.
10:36:13 AM
Senator Bishop wondered if most cases were included in the
budget. Mr. Cantor replied that the state was not backing
away from the cases, but would continue to work with people
outside the section. The department was constantly working
with the best lawyers for particular cases. There was a
reduction from an Endangered Species Act position, but
there was still expertise in the department. He stated that
a statehood defense positions was reduced, because it was a
remnant of the days when there was a section called
"Statehood Defense." The caseload would still be managed in
the same way. The IRS2477 was complicated, because the
funding was established four years prior through the
Department of Natural Resources (DNR), which would pay for
the research of the trails. He stressed that the case must
move forward with the entire unit.
Vice-Chair Micciche remarked that most law firms had few
upper level partners, and many lower level employees. He
wondered if the Department of Law had a higher proportion
of higher level staff. Mr. Cantor replied that the
department had steps and grades within the attorneys in the
department. The Attorney 5 position had fewer than the
Attorney 3 position.
10:41:17 AM
AT EASE
10:41:31 AM
RECONVENED
^OVERVIEW: FY 16 BUDGET DEPARTMENT OF COMMERCE, COMMUNITY
AND ECONOMIC DEVELOPMENT
10:42: 14 AM
CATHERINE REARDON, ADMINISTRATIVE SERVICES DIRECTOR,
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
(DCCED), discussed the PowerPoint, "Department Overview
Presented to Senate Finance Committee" (copy on file). She
shared that the department has a positive effect on
Alaskans, and their daily lives. She understood, however,
that the department must see how it impacts the over $3
billion deficit.
Ms. Reardon highlighted slide 2, "Department Organization."
She shared that the bottom represented the six core
divisions and the six corporate entities. The department
employed 578 Alaskans.
Ms. Reardon looked at slide 3, "Department Budget." She
stated that UGF was only 17 percent of the DCCED budget.
She remarked that the department represented a very small
portion, 2.37 percent, of the entire state's GF budget. She
noted that there was a 3.9 percent cut in the overall
budget, 12.3 percent of that cut came from the GF budget.
She pointed out that the percentage cuts included an
addition of a significant cost to the department: the cost
of regulating marijuana. The 12.3 percent cut was outlined,
while the department absorbed $1.5 million of new costs for
the effective regulation of marijuana, therefore the actual
cuts in other areas were more substantial than they may
appear.
Ms. Reardon addressed slide 4, "Summary of Budget Changes."
She noted that the plan removed the following one-time
items:
AEA - Reverse prior-year multi-year projects: Data
Collection, Affordable Energy
AGDC - Reverse operating costs previously included in
language section.
DCRA , DED - Reverse prior-year one-time-item named
recipient grants (Kawerak for Diomede Essential Air
Service, Bering Sea Fishermen, Alaska Marine Safety
Education Association, Ilisagvik College, Alaska
Native Arts Marketing)
CBPL, AIDEA - Reverse Fiscal Notes - SB23 AIDEA LNG,
HB4 AGDC, SB138 AGDC, HB328 Massage Therapists, HB160
Athletic Trainers, HB361 Behavior Analysts, HB32 Lines
of Business on a Business License
RCA - Remove prior-year language item for the Railbelt
independent electric utilities system determination
Ms. Reardon highlighted slide 5, "Summary of Budget
Changes." She noted the changes in the adjusted base to
work in progress;
Unallocated reduction
CBPL - Fiscal Note Year 2 - Board/Licensing of Massage
Therapists
DCRA / DED - Restore named recipient grants (Kawerak
for Diomede Essential Air Service, Bering Sea
Fishermen, Alaska Marine Safety Education Association,
Ilisagvik College, Alaska Native Arts Marketing)
DCRA - Transfer named recipient grants previously
funded in the Capital budget (Marine Exchange of
Alaska, Alaska Air Carriers - Medallion Foundation)
AIDEA - Project Management, Legal and Project Support
Services, Building Maintenance
AEA - Multi-Year Emerging Energy Technology Fund Data
Collection - FY2016 to FY2018
AGDC - Restore operating costs for FY2016 previously
included as language
RCA - Delete American Reinvestment and Recovery Act
(ARRA) funding no longer available
10:48:01 AM
Ms. Reardon looked at slide 6, "Summary of Budget Changes."
She noted that the slide was a work in progress.
Ms. Reardon discussed slide 7, "Summary of Budget Changes."
She looked at the department's reductions, which were
mostly in the GF budget:
DAS - Reduce personal services, eliminate vacant
positions
AEA / AIDEA - Reduce personal services for AEA staff
in AIDEA component
AIDEA - Reduce building maintenance request to
estimated actuals
ASMI - Reduce Alaska Seafood Marketing Institute
DED - Remove named recipient grant for Alaska Native
Arts Marketing
DED - Reduce economic development activities
DED - Reduce tourism marketing activities and
contracts
Co-Chair MacKinnon extended a "Happy Birthday" to the
committee assistant, Doniece Gott.
SB 27 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:50:54 AM
The meeting was adjourned at 10:50 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 030215 DEED Budget Overview.pdf |
SFIN 3/11/2015 9:00:00 AM |
SB 27 |
| 030215 DCCED Budget Overview.pdf |
SFIN 3/11/2015 9:00:00 AM |
SB 27 |
| 031115 LAW_FY16_SFIN_Full_Overview.pdf |
SFIN 3/11/2015 9:00:00 AM |
SB 27 |
| 031115 DCCED Summary of Changes 03 02 2015- Legal Size.pdf |
SFIN 3/11/2015 9:00:00 AM |
SB 27 |