Legislature(2015 - 2016)
03/11/2016 03:56 PM Senate FIN
| Audio | Topic |
|---|---|
| Start | |
| SB139 || SB140 | |
| HB256 || HB257 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE FINANCE COMMITTEE
March 11, 2016
3:56 p.m.
3:56:52 PM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 3:56 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; David Teal,
Director, Legislative Finance Division
SUMMARY
SB 139 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 139 was HEARD and HELD in committee for
further consideration.
SB 140 APPROP: MENTAL HEALTH BUDGET
SB 140 was HEARD and HELD in committee for
further consideration.
CSHB 256(FIN)
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 256(FIN) was HEARD and HELD in committee for
further consideration.
CSHB 257(FIN)
APPROP: MENTAL HEALTH BUDGET
CSHB 257(FIN) was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 139
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, making
reappropriations, making supplemental appropriations,
and making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
SENATE BILL NO. 140
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
3:57:37 PM
AT EASE
3:58:44 PM
RECONVENED
3:59:12 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 22 (copy on
file):
DEPARTMENT: Corrections
APPROPRIATION: Administration and Support
ALLOCATION: Office of the Commissioner
DELETE: $164,500 Unrestricted General Funds (1044)
POSITIONS: Delete 1 PFT Public Information Officer
DEPARTMENT: Education & Early Development
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Student and School Achievement
DELETE: $13 8,400 Unrestricted General Funds (1004)
POSITIONS: Delete 1 PFT Information Officer III
DEPARTMENT: Environmental Conservation
APPROPRIATION: Administration
ALLOCATION: Office of the Commissioner
DELETE: $6,500 Unrestricted General Funds (1004)
POSITIONS: Delete 1 PFT Information Officer III
DEPARTMENT: Health & Social Services
APPROPRIATION: Departmental Support Services
ALLOCATION: Public Affairs
DELETE: $52,000 Unrestricted General Funds (I 004)
POSITIONS: Delete 1 PFT Information Officer III
DEPARTMENT: Natural Resources
APPROPRIATION: Oil & Gas
ALLOCATION: Oil & Gas
POSITIONS: Delete I PFT Information Officer III
DEPARTMENT: Public Safety
APPROPRIATION: Alaska State Troopers
ALLOCATION: AST Detachments
DELETE: $157,300 Unrestricted General Funds (1004)
POSITIONS: Delete 1 PFT Information Officer III
DEPARTMENT: Transportation & Public Facilities
APPROPRIATION: Administration and Support
ALLOCATION: Central Support Services
POSITIONS: Delete l PFT Information Officer III
DEPARTMENT: Transportation & Public Facilities
APPROPRIATION: Administration and Support
ALLOCATION: Northern Support Services
POSITIONS: Delete 1 PFT Information Officer III
ADD INTENT LANGUAGE:
It is the intent of the legislature that the duties
performed by the deleted Information Officers are
absorbed within the Office of the Governor.
EXPLANATION:
This amendment deletes eight Information Officer III
positions and $518, 700 Unrestricted General Funds
(1004) from various agencies.
Co-Chair Kelly OBJECTED for DISCUSSION.
JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, stated that the
committee must address Amendment 20.
Co-Chair MacKinnon MOVED to RESCIND the action to adopt
Amendment 20.
Vice-Chair Micciche OBJECTED for DISCUSSION.
3:59:57 PM
Co-Chair Kelly explained the rescinding of the amendment.
He stated that the amendment included PCN numbers, but it
was not the intention to eliminate PCN numbers in the
budget, rather it was related to the separation of powers.
4:00:33 PM
AT EASE
4:00:40 PM
RECONVENED
Co-Chair MacKinnon MOVED to ADOPT Amendment 22 (copy on
file).
Vice-Chair Micciche OBJECTED.
A roll call vote was taken on the motion.
IN FAVOR: Hoffman, Micciche, Olson, Kelly, Bishop, Dunleavy
OPPOSED: None
The MOTION PASSED (7/0). There being NO OBJECTION,
Amendment 22 was adopted.
Co-Chair Kelly explained the anticipated schedule for the
upcoming weekend.
4:02:34 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 23 (copy on
file):
DEPARTMENT: Administration
DELETE INTENT LANGUAGE: At the discretion of the
Commissioner of the Department of Administration, up
to $750,000 may be transferred between appropriations
within the Department of Administration. A written
report documenting all transfers of funds between
appropriations shall be provided to the legislature by
January 31, 2017.
DEPARTMENT: Education and Early Development
DELETE INTENT LANGUAGE: At the discretion of the
Commissioner of the Department of Education and Early
Development, up to $500,000 may be transferred between
appropriations within the Department of Education and
Early Development. A written report documenting all
transfers of funds between appropriations shall be
provided to the Legislature by January 31, 2017.
EXPLANATION: This amendment deletes intent language
within the Department of Administration and the
Department Education and Early Development.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong explained Amendment 23.
Co-Chair Kelly WITHDREW his objection. There being NO
OBJECTION, Amendment 23 was adopted.
4:03:34 PM
AT EASE
4:04:39 PM
RECONVENED
Co-Chair MacKinnon MOVED to ADOPT Amendment 24 (copy on
file):
DEPARTMENT: Commerce Community & Economic Development
APPROPRIATION: Alaska Seafood Marketing Institute
ALLOCATION: Alaska Seafood Marketing Institute
ADD: $1,028,500 General Fund Match (I 003)
EXPLANATION: This amendment restores the Alaska
Seafood Marketing Institute's General Fund Match (UGF)
to the FYI 7 Governor's requested level of $3,428,400.
DEPARTMENT: Commerce, Community & Economic Development
APPROPRIATION: Tourism Marketing & Development
ALLOCATION: Tourism Marketing
ADD: $2,129,000 Unrestricted General Funds (1004)
EXPLANATION: This amendment restores Tourism Marketing
Unrestricted General Funds (UGF) to the FYI 7
Governor's requested level of $4,528,900.
Senator Dunleavy OBJECTED for discussion.
Senator Hoffman explained Amendment 24.
Co-Chair Kelly explained that the amendment was a 41.7
percent reduction to the previous year's number, which was
a $3.5 million cut to tourism marketing. He queried the
reduction to the Alaska Seafood Marketing Institute (ASMI)
Senator Hoffman replied that they were each reduced by 30
percent.
4:05:51 PM
AT EASE
4:06:15 PM
RECONVENED
Senator Dunleavy MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Hoffman, Olson, Bishop, Kelly
OPPOSED: Dunleavy, Micciche, MacKinnon
The MOTION PASSED (4/3). There being NO further OBJECTION,
Amendment 24 was ADOPTED.
4:06:48 PM
AT EASE
4:08:51 PM
RECONVENED
Vice-Chair Micciche MOVED to ADOPT Amendment 25
29GS2740\W.7, Wallace, 3/10/16 (copy on file):
Page 75, lines 22 - 23:
Delete all material.
Reletter the following subsections accordingly.
Page 81, line I:
Delete "secs. l l(e), l 9(a), 23(d), 230), and 24(c)"
Insert "secs. l l(e), 19(a), 23(d), and 23(j)"
Page 81, line 2:
Delete "secs. 11 (e), l 9(a), 23(d), 23(j), and 24(c)"
Insert "secs. l l(e), I 9(a), 23(d), and 23(j)"
Page 81, line 6:
Delete "Sections l l(e), l 9(a), 23(d), 23(j), 24(c),
30, and 32(b)"
Insert "Sections l l(e), l9(a), 23(d), 23(j), 30, and
32(b)"
There being NO OBJECTION, it was so ordered.
Mr. Armstrong explained Amendment 25.
Co-Chair Kelly remarked that it was important to include
this, and similar amendments in understanding the
transferring of money.
Vice-Chair Micciche MOVED to ADOPT Amendment 26, 29-
GS2740\W.12, Wallace, 3/11/16 (copy on file):
Delete "$75,205,117"
Insert "$99, 166,576"
Page 77, lines 15 - 21:
Delete all material and insert:
"(b) The sum of $116,699,959 is appropriated from the
general fund to the Department of Administration for
deposit in the defined benefit plan account in the
teachers retirement system as an additional state
contribution under AS 14.25.085 for the fiscal year
ending June 30, 2017."
Co-Chair MacKinnon OBJECTED for discussion.
Mr. Armstrong explained Amendment 26.
Co-Chair MacKinnon WITHDREW her OBJECTION. There being NO
further OBJECTION, Amendment 26 was ADOPTED.
4:11:43 PM
Vice-Chair Micciche MOVED to ADOPT Amendment 27, 29-
GS2740\W.14, Wallace, 3/11/16 (copy on file):
Delete "23(o)"
Insert "23(n)"
Page 73, lines 11 - 15:
Delete all material and insert:
"(h) The amount necessary to fund the total amount for
the fiscal year ending June 30, 2017, of state aid
calculated under the public school funding formula
under AS 14.17.41 O(b ), estimated to be $I, 163,
984,500, is appropriated from the general fund to the
public education fund(AS14.17.300)."
Page 73, linesl9-20:
Delete all material.
Reletter the following subsections accordingly.
Page 74, line 2:
Delete "(o)"
Insert "(n)"
Page 75, line 20:
Delete "(p)"
Insert "(o)"
Page 81, line 1:
Delete "secs. 1l(e),19(a), 23(d), 23(j), and 24(c)"
Insert "secs. l l(e), 19(a), 23(d), and24(c)"
Page 81, line 2:
Delete "secs. 11 (e), l 9(a), 23(d), 23(j), and 24(c)"
Insert "secs. l l(e), 19(a), 23(d), and 24(c)"
Page 81, line 6:
Delete "Sections 11 (e), l 9(a), 23(d), 23(j), 24(c),
30, and 32(b)"
Insert "Sections 11 (e), I 9(a), 23(d), 24(c), 30, and
32(b)"
Co-Chair MacKinnon OBJECTED for discussion.
Mr. Armstrong explained Amendment 27.
Co-Chair MacKinnon REMOVED her OBJECTION. There being NO
further OBJECTION, Amendment 27 was ADOPTED.
4:12:36 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 28, 29-
GS2740\W.13, Wallace, 3/11/16 (copy on file):
Page 77, following line 14:
Insert a new subsection to read:
"(b) The sum of $114,000,000 is appropriated from the
general fund to the Department of Administration for
deposit in the defined benefit plan account in the
public employees' retirement system as an additional
state contribution for the fiscal year ending June 30,
2017."
Reletter the following subsections accordingly.
Page 77, following line 21:
Insert a new subsection to read:
"(d) The sum of $228,000,000 is appropriated from the
general fund to the Department of Administration for
deposit in the defined benefit plan account in the
teachers' retirement system as an additional state
contribution for the fiscal year ending June 30,
2017."
Reletter the following subsections accordingly.
Page 81, line 4:
Delete "sec. 29 of this Act takes effect"
Insert "secs. 25(b), 25(d), and 29 of this Act take
effect"
Page 81, line 5:
Delete "sec. 29 of this Act is"
Insert "secs. 25(b), 25(d), and 29 of this Act are"
Page 81, line 8:
Delete "Sections 29, 32(a), and 32(c)"
Insert "Sections 25(b), 25(d), 29, 32(a), and 32(c)"
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong explained the amendment.
Co-Chair Kelly remarked that there was an anticipation of
getting nearly $20 million in savings over several years
from the amendment.
Mr. Armstrong shared that the savings was only an estimate.
Co-Chair Kelly WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 28 was adopted.
4:13:59 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 29 (copy on
file):
DELETE:
Language section 9(c) under Alaska Permanent Fund.
Page 60, lines I 0-14
Delete all material.
REPEAL
Ch 23, SLA 2015, Section l l(b)
Page 67, lines 12-16
Delete all material.
EXPLANATION:
This amendment deletes the FYI 7 inflation proofing
appropriation and repeals the FYI 6 inflation proofing
appropriation for the Alaska Permanent Fund.
• FY16 inflation proofing is estimated to be $47
million
• FYI 7 inflation proofing is estimated to be $896
million
Senator Dunleavy OBJECTED for DISCUSSION.
Mr. Armstrong explained the amendment.
Co-Chair Kelly stated that the governor's bill included the
amendment, the house inserted it, so now it would be a
conferenceable item.
4:14:47 PM
AT EASE
4:15:18 PM
RECONVENED
4:15:23 PM
Co-Chair Kelly explained that there was a deposit made in
the year prior intended for inflation proofing. He stated
that the state was going into an inflationary period. He
stated that the FY 17 estimate was much higher than the
year prior.
Senator Dunleavy wondered if there was an estimate that the
corpus would meet or exceed the current inflation rate. Co-
Chair Kelly replied that the deposits were made to
inflation-proof the fund.
Senator Dunleavy WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment 29 was ADOPTED.
4:16:51 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 30 (copy on
file):
PART A
Add the following wordage to the section 1 lead-in
text (page 1 following line 6):
At the discretion of the head of each executive
branch agency, up to five percent of the
unrestricted general funds appropriated to each
agency for FY20 I 7 may be transferred between
appropriations within each agency.
It is the intent of the legislature that the
Office of Management and Budget submit a report
of transfers between appropriations that occurred
in the first half of FY2017 by January 30, 2017,
and a report of transfers in the second half of
FY2017, by October 1, 2017, to the House and
Senate Finance Committees and the Legislative
Finance Division.
Explanation: To provide some flexibility, part A
allows for the transfer of up to 5 percent of the
department's UGF between appropriations within the
departments.
PART B
DEPARTMENT: Executive Branch-wide Unallocated
Appropriations
APPROPRIATION: Executive Branch-wide Unallocated
ALLOCATION: Branch-Wide Unallocated
DELETE: $100,000,000 Gen Funds (I 004)
EXPLANATION: Part B is a $100 million unallocated
reduction to be spread throughout executive branch
agencies.
Co-Chair Kelly OBJECTED for discussion. He explained that
the amendment would be a $100 million reduction. He felt
that the amendment should be considered a "place holder",
because there were many pieces that were required before
the reduction could occur. He remarked that the amendment
allowed for the governor flexibility to adjust
appropriations.
4:18:00 PM
AT EASE
4:19:35 PM
RECONVENED
4:19:39 PM
Co-Chair Kelly clarified that it appropriations would occur
within departments.
Co-Chair Kelly REMOVED his OBJECTION. There being NO
further OBJECTION, Amendment 30 was adopted.
Co-Chair Kelly looked at Amendment 28, and remarked that it
was a deposit to the PERS/TRS capitalization. He noted that
it may be a $16 million to $20 million spending reduction.
He queried the actuarial analyses on the amendment.
Vice-Chair Micciche wondered why the amendment did not show
an increase in spending.
4:21:39 PM
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained that the FY 16 money was not intended to reduce
FY 17 spending. He stressed that the amendment was an
appropriated reduction.
Vice-Chair Micciche felt that Amendment 28 had some
potential for misunderstanding.
4:22:44 PM
AT EASE
4:34:39 PM
RECONVENED
4:34:58 PM
Co-Chair Kelly thanked the committee staff.
SB 139 was HEARD and HELD in committee for further
consideration.
SB 140 was HEARD and HELD in committee for further
consideration.
4:37:15 PM
AT EASE
4:38:16 PM
RECONVENED
CS FOR HOUSE BILL NO. 256(FIN)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; repealing appropriations; making
supplemental appropriations; and providing for an
effective date."
CS FOR HOUSE BILL NO. 257(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making
supplemental appropriations; and providing for an
effective date."
4:39:00 PM
Co-Chair Kelly noted the bills.
Senator Dunleavy stressed that the passage of the bills did
not indicate the end of the legislative process.
Co-Chair Kelly remarked that there was still plenty of time
left in the session.
Vice-Chair Micciche stressed that both legislative bodies
were moving quickly, and thanked the departments for their
work on the budget.
CSHB 256(FIN) was HEARD and HELD in committee for further
consideration.
CSHB 257(FIN) was HEARD and HELD in committee for further
consideration.
4:40:52 PM
RECESSED UNTIL 8:30am March 12, 2016.
| Document Name | Date/Time | Subjects |
|---|