Legislature(2017 - 2018)SENATE FINANCE 532
02/28/2017 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB22 || SB24 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 22 | TELECONFERENCED | |
| *+ | SB 24 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 28, 2017
9:03 a.m.
9:03:07 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:03 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Mike Dunleavy
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
None
ADJOURNMENT
Pat Pitney, Director, Office of Management and Budget,
Office of the Governor; Kelly O'Sullivan, Chief Budget
Analyst, Office of Management and Budget; Rob Carpenter,
Budget Analyst, Legislative Finance Division.
SUMMARY
SB 22 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 22 was HEARD and HELD in committee for further
consideration.
SB 24 APPROP: MENTAL HEALTH BUDGET
SB 24 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 22
"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 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."
SENATE BILL NO. 24
"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."
9:04:11 AM
PAT PITNEY, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, looked at the presentation,
"Governor's Budget Amendments; Senate Finance Committee"
(copy on file). She began her presentation on slide 4
"FY2018 Operating Amendments":
Line 1
Department: Administration
Component: Office of the Commissioner
Description:Delete Deputy Commissioner (02-1040) No
Longer Needed Delete a full-time Deputy Commissioner
(02-1040), range 28, located in Juneau, and the
position's associated funding. The Commissioner's
Office will continue to have one Deputy Commissioner
to assist in the oversight of divisions and department
initiatives.
UGF: ($173.6)
DGF: $0.0
Other: ($15.5)
Federal: ($0.0)
Total: ($189.1)
Fund Source: 1004 Gen Fund ($173.6); 1007 I/A Repts
($15.5)
Co-Chair Hoffman wondered whether the position was vacant.
Ms. Pitney replied in the affirmative.
Ms. Pitney looked at lines 2 and 3, which were technical
changes:
Line 2
Department: Administration
Component: SATS
Description: Transfer State of Alaska
Telecommunications System to Office of Information
Technology Transfer the State of Alaska
Telecommunications System (SATS) from Enterprise
Technology Services to the new Office of Information
Technology. This transfer is necessary in order to
align all information technology functions under a
Chief Information Officer.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $0.0
Line 3
Department: Administration.
Component: ALMR
Description: Transfer Alaska Land Mobile Radio to
Office of Information Technology Transfer Alaska Land
Mobile Radio (ALMR) from Enterprise Technology
Services to the new Office of Information Technology.
This transfer is necessary in order to align all
information technology functions under a Chief
Information Officer.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $0.0
Line 4
Department: Administration
Component: Motor Vehicles
Description: New Federal Grant to Comply with
Commercial Motor Vehicle Safety Act Federal
regulations enacted in July 2015 require the Division
of Motor Vehicles (DMV) to audit Commercial Driver's
License
(CDL) examiners and trainers every two years. To meet
this new regulation, DMV applied for the competitive
Federal Motor Carrier Safety Administration (FMCSA)
grant in April 2016 and was awarded a three-year grant
totaling $1,434.6 in September 2016. This amendment
provides FY2018 funding based on an FY2017
supplemental item of $301.5.
UGF: $0.0
DGF: $0.0
Other: $500.0
Federal: $500.0
Total: 1002 Fed Repts $500.0
Vice-Chair Bishop looked at line 4, and surmised that the
federal grant was intended for the state to check with a
third-party testing facility, which provided CDL training,
to ensure that there was compliance in training. Ms.
Pitney replied in the affirmative.
9:08:58 AM
Ms. Pitney continued to discuss the amendments.
Line 5
Department: Corrections
Component: Office of the Commissioner
Description: Community Resource for Justice Grants
from Community Resource for Justice Incorporated will
be used to support implementation of justice reform
efforts. This is a new request for FY2018 and was not
included in the FY2018 governor's request as these
grant funds were not available at the time. The Alaska
Criminal Justice Commission approved this item in
January 2017.
UGF: $0.0
DGF: $0.0
Other: $117.4
Federal: $0.0
Total: $117.4
Fund Source 1109 Stat Desig. $117.4
Line 6
Department: Education and Early Development
Component: Student and School Achievement
Description: Alaska Technical and Vocational Education
Formula Funding The Alaska Technical and Vocational
Education Program (TVEP), is funded by 0.16 percent of
employee contributions to the unemployment insurance
trust fund. The taxable wages collected have declined
more rapidly than originally anticipated. A reduction
in TVEP authority is required in order to not
overspend the fund. This is a new item for FY2018. It
was not included in the FY2018 Governor's Budget due
to timing of updated revenue collection projections.
UGF: $0.0
DGF: ($52.8)
Other: $0.0
Federal: $0.0
Total: $52.8
Fund Source: 1151 VoTech Ed ($52.8)
Ms. Pitney noted line 7:
Line 7
Department: Education and Early Development
Component: Child Nutrition Description: Additional
Child Nutrition Grants from the US Department of
Agriculture Due to increased growth in the National
School Lunch Program, School Breakfast Program, and
Summer Food Service Program additional federal receipt
authorization is needed for acceptance of the increase
in United States Department of Agriculture (USDA)
grant funds. These are 100% USDA funds and do not
require an increase in state general funds or
additional staff. This is a new request for FY2018. It
was not included in the FY2018 Governor request
because at the time of budget development it was
unknown whether an amendment request would be
necessary due to pending information from the U.S.
Department of Education.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $10,172.6
Total: $10,172.6
Fund Source: 1002 Fed Repts $10,172.6
Ms. Pitney addressed line 8:
Line 8
Department: Education and Early Development
Component: Loan Servicing
Description: FY2018 Health Insurance Rate Increase
Alaska Student Loan Corporation (ASLC) contracts with
the Alaska Commission on Postsecondary Education
(ACPE) for loan servicing and pays for these services
with ASLC receipts. The health insurance increase was
added to ACPE's interagency receipt funding line
within the appropriation but not within the ASLC's
appropriation, which funds ACPE. This amendment
provides FY2018 funding based on an FY2017
supplemental request of $115.1.
UGF: $0.0
DGF: $0.0
Other: $197.3
Federal: $0.0
Total: $197.3
Fund Source: 1106 ASLC Repts $197.3
9:11:18 AM
Ms. Pitney highlighted lines 9, 10, and 11:
Line 9
Department: Fish and Game
Component: SE Region Fisheries Mgmt.
Description: Coho Salmon and Dive Fisheries Research
Projects This will allow support from private industry
to support various escapement, stock assessment, and
survey projects. This is a new request for FY2018. It
was not included in the FY2018 Governor's budget
because the scope of the projects were still being
identified.
UGF: $0.0
DGF: $0.0
Other: $191.0
Federal: $0.0
Total: $191.0
Fund Source: 1108 Stat Desig $191.0
Line 10
Department: Fish and Game
Component: Central Region
Description:Bristol Bay Science Research Institute
Watershed Projects (FY18-FY19) This will allow support
from Bristol Bay Science and Research Institute
(BBSRI) to support various escapement and test
projects. This is a new request for FY2018. It was not
included in the FY2018 Governor's budget because
discussions on the agreement were still ongoing.
UGF:$0.0
DGF:$0.0
Other:$800.0
Federal:$0.0
Total:$800.0
Fund Source: 1108 Stat Desig $800.0
Co-Chair MacKinnon queried the controls to ensure that best
practices were used in the research. Ms. Pitney replied
that there was research by the state biologists, and would
be done within the standards of the state assessment. The
value to the group was more available fishing stock and
better management.
Senator Olson noted the rapidly declining revenue, and
remarked that other programs may be added to the Technical
Vocational Education Program (TVEP) funds. He wondered
whether the administration was in support of moving those
programs. Ms. Pitney replied that the administration had
no position on the additional programs in the
reauthorization.
Senator Olson asked whether there had been discussion on
that issue. Ms. Pitney replied in the negative.
Senator von Imhof wondered how the Department of Fish and
Game (DFG) requests fit into the greater research efforts
for DFG. Ms. Pitney deferred to the commissioner of DFG
9:15:46 AM
Senator Dunleavy wondered whether the DFG research would be
conducted by the state's procedures and practices, and
funded by the outfits. Ms. Pitney replied in the
affirmative.
Senator Micciche felt that the projects were not research
projects, rather they were in season stock and enumeration
studies that were conducted every year in the sport and
commercial river systems. He remarked that the private
industry had agreed to fund these programs in the past. It
simply allowed for commercial fishing to take place in the
state.
Ms. Pitney looked at page 6, lines 11, 12, 13, 14, and 15:
Line 11
Department: Fish and Game
Component: Statewide Fisheries Management
Description: Stock Assessment Projects
This will allow support from private industry to
support stock assessments. This is a new request for
FY2018. It was not included in the FY2018 Governor's
budget because the scope of the projects were still
being identified.
UGF: $0.0
DGF: $0.0
Other: $183.0
Federal: $0.0
Total: $183.0
Fund Source: 1108 Stat Desig $183.0
Line 12
Department:Labor & Workforce
Component: Workforce Development
Description: Alaska Technical and Vocational Education
Formula Funding
The Alaska Technical and Vocational Education Program
(TVEP), is funded by 0.16 percent of employee
contributions to the unemployment insurance trust
fund. The taxable wages collected have declined more
rapidly than originally anticipated.
A reduction in TVEP authority is required in order to
not overspend the fund. This is a new item for FY2018.
It was not included in the FY2018 Governor's Budget
due to timing of updated revenue collection
projections.
UGF:$0.0
DGF: ($448.6)
Other: $0.0
Federal: $0.0
Total: ($448.6)
Fund Source: 1151 VoTech Ed ($448.6)
Line 13
Department: Labor & Workforce
Component: AVTEC
Description: Alaska Technical and Vocational Education
Formula Funding
The Alaska Technical and Vocational Education Program
(TVEP), is funded by 0.16 percent of employee
contributions to the unemployment insurance trust
fund. The taxable wages collected have declined more
rapidly than originally anticipated. A reduction in
TVEP authority is required in order to not overspend
the fund. This is a new item for FY2018. It was not
included in the FY2018 Governor's Budget due to timing
of updated revenue collection projections.
UGF: $0.0
DGF: ($224.3)
Other: $0.0
Federal: $0.0
Total: ($224.3)
Fund Source: 1151 VoTech Ed ($224.3)
Line 14
Department: Public Safety
Component: Domestic Viol/Sexual Assault
Description: Omnibus Crime Law & Procedure;
Corrections Ch36 SLA2016 (SB91)
Implement reforms identified by the Alaska Criminal
Justice Commission to address violence prevention,
services, and victims' rights. This is a new request
for FY2018. It was not included in the FY2018
Governor's budget due to oversight.
UGF: $0.0
DGF: $1,000.0
Other: $0.0
Federal: $0.0
Total: $1,000.0
Fund Source: 1246 Recid Redu $1,000.0
Line 15
Department: Transportation
Component: Various
Description: Capital Program Positions
The department is pursuing an organizational review to
ensure optimized delivery of its capital design
program. This change amends the previous language
associated with deleting positions in the Governor's
budget.
9:18:59 AM
ATEASE
9:19:58 AM
RECONVENED
9:20:03 AM
Co-Chair Hoffman looked at line 15. He felt that Vice-Chair
Bishop should meet with the department to further review
the issue.
Vice-Chair Bishop shared that he had worked on examining
these positions in his subcommittee.
Co-Chair Hoffman queried the location of the proposal.
Vice-Chair Bishop replied that it was on page 16.
Co-Chair Hoffman queried a detail of the department's
proposal.
9:22:21 AM
Ms. Pitney looked lines 16 and 17:
Line 16
Department: Transportation
Component: Marine Vessel Operations
Description: Alaska Care Rate Increase for Alaska
Marine Highway System Revised Estimate
Alaska Marine Highway System health insurance rate
increase to $1,555 per member per month. This
amendment is an adjustment from the previous estimate
submitted in the FY2018 Governor's scenario.
UGF: $0.0
DGF:$241.4
Other: $0.0
Federal: $0.0
Total: $241.4
Fund Source: 1076 Marine Hwy $241.4
Line 17
Department: University of Alaska
Component: System wide Reduction/Additions
Description: Alaska Technical and Vocational Education
Formula Funding
The Alaska Technical and Vocational Education Program
(TVEP), is funded by 0.16 percent of employee
contributions to the unemployment insurance trust
fund. The taxable wages collected have declined more
rapidly than originally anticipated. A reduction in
TVEP authority is required in order to not overspend
the fund. This is a new item for FY2018. It was not
included in the FY2018 Governor request due to timing
of updated revenue collection projections
UGF: $0.0
DGF: ($593.5)
Other: $0.0
Federal: $0.0
Total: ($593.5)
Fund Source: 1151 VoTech Ed ($593.5)
9:22:55 AM
Vice-Chair Bishop shared that he recommended discontinuing
the sunset extension, and no increases in TVEP.
Ms. Pitney looked at line 18, 19, 20, 21, 22, and 23:
Line 18
Department: Judiciary
Component: Therapeutic Courts
Description: Mat-Su Foundation Grants and Awards from
Other Sponsors
Additional receipt authority will enable acceptance of
anticipated grants from the Mat-Su Foundation and
other sponsors. This amendment provides FY2018 funding
based on a FY2017 supplemental request of $51.2.
UGF: $0.0
DGF: $0.0
Other: $400.0
Federal: $0.0
Total: $400.0
Fund Source: 1108 Stat Desig $400.0
Line 19
Department: Judiciary
Component: Commission on Judicial Conduct
Description: Correct FY2018 Alaska Care Increase
Correct Alaska Care salary adjustment.
UGF:($12.6)
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: ($12.6)
Fund Source: 1004 Gen Fund ($12.6)
Line 20
Department: Judiciary
Component: Commission on Judicial Conduct
Description: Personal Service Expenses
Adjustment to fully fund personal services. This is a
new request for FY2018. It was not included in the
FY2018 Governor request due to oversight.
UGF: $23.8
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $23.8
Fund Source: 1004 Gen Fund $23.8
Line 21
Department: Judiciary
Component: Judicial Council
Description: Correct FY2018 Alaska Care Increase
Correct Alaska Care salary adjustment.
UGF: $12.6
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $12.6
Fund Source: 1004 Gen Fund $12.6
Line 22
Department: Debt Service
Component: Int Airport Revenue Bonds
Description: FY2018 Payments
The amount for FY2018 debt service was not finalized
until after the submission of the FY2018 Governor's
budget. This amendment adds an appropriation for early
redemption and reduces the amount to be paid for
normal debt service. A supplemental to change the
amount of early redemption has also been submitted for
FY2017.
UGF: $0.0
DGF: $0.0
Other: $27,687.3
Federal: $0.0
Total: $27,687.3
Fund Source: 1027 Int Airprt $27,687.3
Line 23
Department: Debt Service
Component: Int Airport Revenue Bonds
Description: International Airport General Fund
Borrowing Appropriation
This language addresses a cash-flow deficiency related
to federal international airport projects. Similar
language will be added to the FY2017 Governor's
amended supplemental budget.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $0.0
9:26:10 AM
Co-Chair Hoffman wondered whether the reimbursement would
always cover 100 percent reimbursement. Ms. Pitney
responded that it might be under recovery, but it would
only affect the Airport Systems Funds.
Senator Olson asked whether the funds were used on any
other airports, other than the three that were considered
"International Airports." Ms. Pitney replied that it only
affected the International Airport Funds.
Senator Olson wondered whether the funds in the
International Airport general fund used for airports
besides the three designated airports. Ms. Pitney agreed to
follow up with the Department of Transportation and Public
Facilities (DOT/PF).
Ms. Pitney looked at line 24:
Line 24
Department: Fund Transfers
Component: Oil & Haz Sub Rel Preventn Acct
Description: FY2018 Estimated Collections
This change makes the timing of the transfer from the
refined fuel surcharge consistent with the timing of
the transfers of other sources that fund the
prevention account. A supplemental revising the FY2017
operating bill language is also being submitted
UGF: $400.0
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $400.0
Fund Source: 1004 Gen Fund $400.0
Ms. Pitney addressed lines 25 and 26:
Line 25
Department: various
Component: various
Description: Salary and Benefits Adjustment
Add the collective bargaining units affected by FY2018
Alaska Care health insurance salary adjustments.
Line 26
Department: N/A
Component: N/A
Description: Alaska Industrial Development and Export
Authority Dividend
The amount of the dividend was announced after the
release of the Governor's budget.
9:30:23 AM
Senator Micciche corrected his previous statement. He
stated that the three DFG research requests included an
investment from the Mat-Su borough municipality. He
remarked that other industry might look at the model, with
state services directly serving their industry they might
invest in the process.
Senator Dunleavy looked at page 5, line 8, and queried the
reason the funds were considered "other" and not "UGF" or
"DGF." Ms. Pitney replied that there was a continuum of
restriction on funding. She stated that UGF was the least
restrictive, DGF had an assigned purpose with restrictions,
and other funds carried an additional level of restriction.
She stated that federal funds were the most restricted. She
stated that the other funds were in the Student Loan Funds,
and those were receipts because of interest on loans. Those
were directed for use within the Student Loan Corporation
Fund.
Senator Dunleavy surmised that it was revenue generated by
the corporation that would pay for insurance related to the
corporation. Ms. Pitney replied in the affirmative.
Senator Dunleavy wondered if the insurance was always
funded by other funds in the corporation. Ms. Pitney
replied in the affirmative.
Senator Micciche remarked on the changes Department of
Health and Social Services (DHSS) on Medicaid rates. He
wondered why that request was not included in the operating
budget. Ms. Pitney responded that the administration had
prioritized five administrative actions to reduce by $30
million. She stated that there might be a $15 million
increase to finish FY 18. She stated that the
administration was looking at other savings options.
9:36:09 AM
Co-Chair Hoffman surmised that not requesting the funds put
additional pressure on the department to "fill the gap."
Senator Micciche remarked that the efforts were not
documented, but hoped that the effort would actually be
made.
Ms. Pitney addressed page 9, "Capital Amendments."
Ms. Pitney highlighted line 1:
Line 1
Department: Administration
Component: Appropriation
Description: Alaska Land Mobile Radio System
The Alaska Land Mobile Radio (ALMR) is an
interoperable system that provides radio service to
local, state and federal agencies. This project
contributes towards the necessary upgrades to 911-
dispatch and public safety radio communications system
components in order to meet the state's requirements
for its share of the ALMR system. This project
provides a portion of the total funds needed to bring
the State components current. An additional $3 million
is included in the Governor's FY2017 Supplemental
Budget, bringing the combined project funding total to
$4,534,600.
UGF: $1,534.6
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $1,534.6
Fund Source: 1004 Gen Fund $1,534.6
Ms. Pitney looked at line 2:
Line 2
Department: Administration
Component: Appropriation
Description: Case Management Database System
This project replaces the Public Defender Agency (PDA)
and the Office of Public Advocacy's (OPA) case
management database system. The current system is over
nine years old and has been operating without an on-
going maintenance contract since December 2012. Should
the current system fail, it would significantly impact
PDA and OPA's ability to meet client's needs.
UGF: $665.0
DGF: $0.0
Other: $0.0
Federal: $0.0
Total: $665.0
Fund Source: 1004 Gen Fund $665.0
Ms. Pitney looked at lines 3, 4, 5, and 6.
Line 3
Department: Commerce
Component: Appropriation
Description: National Petroleum Reserve - Alaska
Impact Grant Program
This request amends the original Governor's FY2018
capital budget request by removing $1,861,964 for a
new requested total of $1,378,346. This change is due
to updated revenue estimates for FY2018, which results
in FY2018 National Petroleum Reserve - Alaska (NPR-A)
recommended awards to communities being lower than the
estimate provided in the original Governor's FY2018
capital request. The NPR-A program provides grants to
communities for public facilities and services.
Priority is given to those communities directly or
severely impacted by the leases and development of oil
and gas within the NPR-A. Funding comes from the
federal government as a share of the funds received on
leases issued within NPR-A.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: ($1,862.0)
Total: ($1,862.0)
Fund Source: 1063 NPR Fund -$1,862.0
Line 4
Department: Commerce
Component: Allocation
Description: City of Barrow - Local Government
Operations
This request amends the original Governor's FY2018
capital budget request by adding allocation level
funding of $899,392. This change is due to the timing
of approval of individual National Petroleum Reserve -
Alaska grants. This project is to continue providing
essential public and municipal services to Barrow
residents: cemeteries, recreation facilities and
activities, business licensing, alcohol registration
services, taxicab regulation services, community boat
ramps, multi-use facilities and gathering places,
Department of Motor Vehicles (DMV) services, passport
services, and municipal monitoring of laws and
regulations pertaining to aboriginal Inupiat lands.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $899.4
Total: $899.4
Fund Source: 1063 NPR Fund $899.4
Line 5
Department: Commerce
Component: Allocation
Description: City of Wainwright - Local Government
Operations
This request amends the original Governor's FY2018
capital budget request by adding allocation level
funding of $222,123. This change is due to the timing
of approval of individual National Petroleum Reserve -
Alaska grants. This project is to supplement the
operations and maintenance costs necessary to
successfully operate the local government of
Wainwright: to provide continued municipal services to
Wainwright residents, to provide staff support and
meeting space for industry and town meetings, and to
organize and support cultural and recreational
activities.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $222.1
Total: $222.1
Fund Source: 1063 NPR Fund $222.1
Line 6
Department: Commerce
Component: Allocation
Description: City of Anaktuvuk Pass - Local Operations
This request amends the original Governor's FY2018
capital budget request by adding allocation level
funding of $256,831. This change is due to the timing
of approval of individual National Petroleum Reserve -
Alaska grants. This project is to support the general
operations of the City of Anaktuvuk Pass, enabling the
city to continue to build capacity for effective and
efficient local government operation during a period
of increased NPRA related oil and gas development.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $256.8
Total: $256.8
Fund Source: 1063 NPR Fund $256.8
Ms. Pitney addressed page 10, lines 7 and 8:
Line 7
Department: Environ Conservation
Component: Appropriation
Description: Fairbanks PM2.5 Nonattainment Area
Voluntary Heating Device Change Out Program
This project continues a voluntary heating device
change-out program for residents in the Fairbanks
North Star Borough's fine particulate matter (PM2.5)
nonattainment area. The program is aimed at minimizing
particulate matter emissions and improving air quality
in the Borough. The Borough has the highest recorded
levels of PM2.5 in the nation. Federal grant funds are
anticipated from the Environmental Protection Agency
(EPA) through the Targeted Air Shed Program.
UGF: $0.0
DGF: $0.0
Other: $0.0
Federal: $2,477.3
Total: $2,477.3
Fund Source: 1002 Fed Rcpts $2,477.3
Line 8
Department: Transportation
Component: Appropriation
Description: State Equipment Fleet Replacement
This project is for replacement and/or refurbishment
of equipment and vehicles which have reached the end
of their useful life cycles, and continued conversion
of vehicles to alternate fuel and related alternate
fuel program expenses. Replacing assets with high
operational costs or safety concerns with new assets
maintains the overall health of the fleet and keeps
rental rates that are charged to agencies low.
UGF: $0.0
DGF: $0.0
Other: $15,000.0
Federal: $0.0
Total: $15,000.0
Fund Source: 1026 Hwy Capitl $15,000.0
9:40:06 AM
Co-Chair Hoffman wondered whether it was a pass-through
grant. Ms. Pitney replied in the affirmative, and explained
that DEC had qualified for the grant to be used by the
Fairbanks Borough.
Ms. Pitney noted that there was an amount of $15 million to
25 million for fleet replacement, which was not included in
the original budget.
Vice-Chair Bishop remarked that it was good to replace the
oldest equipment in the fleet.
Ms. Pitney looked at page 11, which was a summary of the
supplemental requests for FY 17.
Co-Chair Hoffman looked at the supplemental request for
fire suppression. He wondered whether an extreme fire
season was anticipated, or was the money to be utilized at
a future date. Ms. Pitney replied that there were two
components to the $15 million: 1) what was already spent
for FY 17; and 2) the projected amount for the spring. She
stated that the projected amount was approximately $6.5
million.
9:45:08 AM
Co-Chair Hoffman wondered if the request would be used for
state lands. Ms. Pitney replied in the affirmative.
Co-Chair Hoffman did not see a request for federal funds.
He wondered whether all the fires in the previous fall and
upcoming spring would be on only state lands. Ms. Pitney
responded that there was budget language that allowed for
federal receipt authority. She agreed to provide the exact
amount of federal funds.
Co-Chair Hoffman queried the split between federal and
state expenditures compared to the amount of land on
federal and state land fires. Ms. Pitney responded that
there was an extensive process that ruled the cost sharing
between federal and state land.
Vice-Chair Bishop agreed to provide an in depth report on
Co-Chair Hoffman's concerns.
Ms. Pitney addressed page 12. She stated that lines 2 and 3
were technical amendments related debt service in the
general obligations bonds. The amendments matched the
budget with the accounting on issuing the bonds. She
remarked that line 5 was a request from the Office of
Public Advocacy.
Senator Dunleavy wondered what the language in lines 2 and
3 allowed to happen. He wondered whether the amendments
allowed for a sunset extension. Ms. Pitney replied that it
did not allow more bonding, but allowed for the timing of
the bonding.
Senator Dunleavy wondered whether it would allow for
additional bonding capacity.
9:50:41 AM
KELLY O'SULLIVAN, CHIEF BUDGET ANALYST, OFFICE OF
MANAGEMENT AND BUDGET, stated that the bonds were
outstanding, but were sold periodically. The bonds would
have additional issuances beyond the expectation.
Co-Chair Hoffman wondered whether there was a cost overrun.
Ms. O'Sullivan responded that the bonds were not all sold,
so the bonds would continue to be sold, because of the
longer length of the projects.
Senator Dunleavy asked whether there was a date specific to
the bond. Ms. O'Sullivan replied that there was not a
termination date, because it was a capital request.
Senator Dunleavy wondered why there was an extension
request. Ms. Pitney replied that it was a reduction in the
amount of funding in FY 17, because there was an
expectation that a certain amount of bonds would be sold at
a certain cost. The bonds were not all sold, because the
bonds did not need to be sold until the projects required
the money. The spending was less than anticipated.
9:52:51 AM
AT EASE
9:54:35 AM
RECONVENED
9:54:48 AM
ROB CARPENTER, BUDGET ANALYST, LEGISLATIVE FINANCE
DIVISION, explained that there was originally authorization
to issue the 2012 Transportation BO Bond package. The
original supplemental request from OMB had a lapse
extension provision for the money, but the provision had
already lapsed in 2016. He stated that line 2 reversed the
request from OMB in the original supplemental request. He
stated that line 3 was the request for an addition $745,000
from the GO Bond premium.
Co-Chair Hoffman queried the total amount of the 2012 GO
Bond. Mr. Carpenter replied that it was approximately $300
million.
Co-Chair Hoffman queried the net effect of the two line
items. Mr. Carpenter replied that there was a lapse of $2.3
million that was lapsed ending FY 16.
Senator Dunleavy remarked that the issue did not have to do
with the governor-vetoed road projects.
Co-Chair Hoffman stated that the governor could not veto GO
bonds.
Ms. Pitney looked at page 13, line 6, which was the request
for the fire suppression activity.
Co-Chair Hoffman queried the total on the extension. Ms.
Pitney replied that there was a remainder of approximately
$700,000
Ms. Pitney looked at line 8, which was a reduction in the
early redemption amount in FY 17 by $21 million.
Co-Chair Hoffman wanted to examine that issue, because he
had put the original funding in that program.
10:01:03 AM
AT EASE
10:01:20 AM
RECONVENED
10:01:23 AM
Co-Chair MacKinnon discussed the agenda for the following
day.
Senator Dunleavy queried the "game plan" by the
administration to work with the Senate to decrease the
budget, when the administration was increasing the budget.
Ms. Pitney responded that administration had attempted to
reduce the budget.
Senator Dunleavy noted that the supplemental requests were
increases in the budget.
Senator Olson felt that there was tension between the cuts
and the people affected by the cuts.
SB 22 was HEARD and HELD in committee for further
consideration.
SB 24 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:03:44 AM
The meeting was adjourned at 10:03 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 022817 SFIN Governor's Amendments 2-28-17.pdf |
SFIN 2/28/2017 9:00:00 AM |
Budget Amendments FY 18 |