Legislature(2015 - 2016)JNUCAP519
05/31/2015 01:13 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB2001 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
SECOND SPECIAL SESSION
May 31, 2015
1:13 p.m.
[Note: The meeting was held in Anchorage, Alaska at the
Anchorage Legislative Information Office]
1:13:06 PM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 1:13 p.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
James Armstrong, Staff, Senator Pete Kelly; Senator Cathy
Giessel; Senator Bert Stedman; Representative Tammie
Wilson; Representative Les Gara; Representative Sam Kito;
Representative Lynn Gattis.
SUMMARY
SB 2001 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 2001 was SCHEDULED but not HEARD.
CSHB 2001(FIN)am
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 2001(FIN)am was REPORTED out of committee
with a "do pass" recommendation.
CS FOR HOUSE BILL NO. 2001(FIN) am
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; making appropriations for the
operating expenses of the state's integrated
comprehensive mental health program; capitalizing
funds and repealing appropriations; 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."
1:13:23 PM
Co-Chair MacKinnon MOVED to ADOPT Committee Substitute for
CSHB 2001(FIN)am, Work Draft 29-LS0960\G, (Wallace,
5/30/15). There being NO OBJECTION, it was so ordered.
1:14:07 PM
AT EASE
1:17:41 PM
RECONVENED
JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, stated that the
committee substitute (CS) was identical to SB 2001 that was
considered by the committee the previous week. He explained
that the new bill restored the vetoes of items that were
contained in HB 72, and the combination of the two bills
within the CS would restore funding to the conference
committee levels.
Mr. Armstrong referred to the document "2015 Legislature -
Operating Budget; Agency Summary - FY 16 Post-CC St
Structure" (copy on file), which depicted agency totals but
not statewide provisions.
1:18:59 PM
Co-Chair Kelly stated that the CS was a product of the
entire budget process, including the conference committee
as well as adjustments after the governor's vetoes of
certain line items. He specified that the committee cut
about $900 million from the budget. He discussed the
nuances of the previous vote on using funds from the
Constitutional Budget Reserve (CBR). He discussed the
budget process and mentioned a forthcoming amendment. He
opined that the three-quarters vote engendered dysfunction
within the process and allowed a small group of people to
stop a constitutionally mandated process.
1:23:06 PM
Co-Chair Kelly mentioned Amendment 1. He spoke to future
challenges that would come, and thought that the
significant cut that was made would be difficult to
duplicate in future years. He spoke to the significantly
reduced capital budget. He stated that the committee had
tried to protect education, and characterized it as the
most widely distributed benefit that came from the state as
well as a constitutional mandate. He discussed the changing
fiscal environment in Alaska and emphasized the need for
"buy-in" from public and from the committee. He remarked on
upcoming bipartisan work and compromise that would be
needed in conference committee. He pointed out that state
employee pay increases were not included in the budget.
1:27:13 PM
Co-Chair MacKinnon commented that the State of Alaska was
facing its largest deficit in history. She referred to the
state's dependence on oil revenues. She expressed
appreciation for attendance at the committee meeting. She
discussed the compromise needed to pass a budget and a
three-quarters vote to access the CBR. She discussed
priorities of the committee to include establishing goals,
setting education as the highest priority, prioritizing
state employees, and negotiating in good faith in
conference committee. She discussed the state's savings
account and expenditures, and stressed the importance of
frugality.
Co-Chair MacKinnon continued to discuss the fiscal
situation. She referred to the Alaska Cost of Living
Allowance (COLA) for state employees and noted the
contention of the issue. She thanked Co-Chair Kelly for
bringing forward a Committee Substitute to work through
budgetary challenges.
1:31:21 PM
Vice-Chair Micciche acknowledged the people in the
audience. He discussed the budget process and CBR funding.
He reminded Alaskans of the $4 billion fiscal gap, and
asserted that the state would run out of savings in 2017.
He expressed that the members valued the work of the other
body and were looking toward working out issues in
conference committee. He noted that he valued compromise
and thanked the committee for its hard work.
Senator Olson stated that he saw the CS as an opportunity
to move forward from what could be considered a stalemate.
He used a football analogy to illustrate the importance of
making appropriate choices.
Co-Chair Kelly spoke to the importance of the narrative in
the press. He expressed that the CS was a strategy to get
to conference committee, where all options would be
discussed.
1:36:53 PM
AT EASE
1:39:03 PM
RECONVENED
Co-Chair Kelly stated that there was an amendment before
the committee to consider, and noted that Senator Olson was
a co-sponsor of the amendment.
Co-Chair MacKinnon MOVED to ADOPT Amendment 1, 29-
LS0960\G.1 (Wallace, 5/30/15):
Page 30, following line 28:
Insert a new bill section to read:
"*Sec. 10. DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT. The sum of $16,121,850 is appropriated
from the general fund to the Department of Education
and Early Development to be distributed as state aid
to districts according to the average daily membership
for each district adjusted under AS 14.17.41 O(b )(1
)(A) - (D) for the fiscal year ending June 30, 2016."
Renumber the following bill sections accordingly.
Page 31, line 10:
Delete "11" in both places
Insert "12" in both places
Page 31, line 17:
Delete "12, and 13"
Insert "13, and 14"
Page 31, line 18:
Delete "Section 11"
Insert "Section 12"
Page 31, line 19:
Delete "secs. 14 and 15"
Insert "secs. 15 and 16"
Vice-Chair Micciche OBJECTED for discussion.
1:39:38 PM
AT EASE
1:40:35 PM
RECONVENED
Mr. Armstrong discussed Amendment 1. He explained that HB
278 [education initiative legislation offered by the
Parnell Administration that passed in 2014] had established
a myriad of education funding over a three-year period. He
detailed that approximately $32.3 million had been
established outside of the foundation formula for FY 16. He
elaborated that Governor Walker's supplemental budget had
removed $32 million from FY 16 and $19 million for FY 17.
The amendment would restore half of the funding outside of
the formula for FY 16 in the amount of $16,121,850.
1:41:38 PM
Co-Chair MacKinnon clarified that the members were
preparing for a conference committee, and her intent by
adding her name to the amendment was to allow the
conversation about education funding to take place. She
referred to the problem of recurring costs faced by the
state, as well as expenses such as the COLA increase and
the Base Student Allocation (BSA). She related these issues
to accessing the CBR, and the need for flexibility in the
conversation about education funding.
1:42:55 PM
AT EASE
1:43:31 PM
RECONVENED
Co-Chair MacKinnon stated that if the House concurred with
the Senate, education would have $32 million.
Vice-Chair Micciche WITHDREW his OBJECTION.
There being NO further OBJECTION, Amendment 1 was ADOPTED.
1:44:20 PM
AT EASE
1:44:45 PM
RECONVENED
Mr. Armstrong made an observation that he had never
testified on three different versions of the operating
budget before. He thanked staff from the Legislative
Finance Division and Legislative Legal and Research
Services.
1:45:27 PM
Co-Chair MacKinnon MOVED to REPORT SCS CSHB 2001(FIN)am out
of committee with individual recommendations. There being
NO OBJECTION, it was so ordered.
SCS CSHB 2001(FIN)am was REPORTED out of committee with a
"do pass" recommendation.
1:46:36 PM
RECESSED
7:10:31 PM
RECONVENED
ADJOURNMENT
7:15:22 PM
The meeting was adjourned at 7:12 p.m.
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