HB 1005: "An Act making, amending, 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."
00HOUSE BILL NO. 1005 01 "An Act making, amending, and repealing appropriations; making appropriations 02 under art. IX, sec. 17(c), Constitution of the State of Alaska, from the 03 constitutional budget reserve fund; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that 06 (1) the members of the Long Range Financial Planning Commission (LRFPC) 07 who were jointly appointed by the governor and the legislature, conducted hearings across the 08 state, raising the awareness of and educating Alaskans about the fiscal gap; 09 (2) the state has spent more than it has collected in annually recurring revenues 10 during six of the past nine fiscal years; 11 (3) the state's fiscal year 1996 fiscal gap between revenues and expenditures 12 is estimated to be $238,000,000; 13 (4) petroleum revenue currently accounts for about 80 percent of unrestricted 14 general funds and Alaska's petroleum production is projected to decline by one-third during
01 the next 10 years; 02 (5) the fiscal gap is projected to grow steadily if the state does not effectively 03 address annually recurring revenues and expenditures in the context of a long range plan; 04 (6) without changes in projected revenues and expenditures, current reserves 05 in the Constitutional Budget Reserve fund may be depleted by fiscal year 2000; 06 (7) the LRFPC and other fiscal policy forums around the state have identified 07 various fiscal tools that can be employed in a long range plan, including expenditure 08 reductions, revenue increases, use of reserves, and use of permanent fund earnings; 09 (8) in these fiscal policy forums, the conclusion has been that no single tool 10 is sufficient to address the fiscal gap and that several tools must be used in combination in 11 any viable plan to bring about state economic stability; 12 (9) the Alaska permanent fund is a cornerstone of the state's economic future 13 and should continue to grow as well as to provide reliable dividends to the general public. 14 (b) The legislature intends that a ten year plan to address the state's budget gap will 15 (1) put the state on firm fiscal ground for at least the next 10 years (fiscal year 16 1997 through 2006) and strike a balance between current public service needs and protection 17 of the permanent fund for future generations; 18 (2) close the fiscal gap between annually recurring revenues and expenditures 19 by the end of fiscal year 2001; 20 (3) use a combination of fiscal tools such as budget cuts, new development 21 revenues, income tax, other taxes, and use of reserves and permanent fund earnings; 22 (4) disclose and review all funding sources, not just general funds. 23 (5) deposit $1,288,000,000 from the permanent fund earnings Reserve to the 24 fund's principal; 25 (6) fully inflation-proof the principal of the permanent fund; 26 (7) maintain Permanent Fund dividends; 27 (8) consider future use of permanent fund earnings with a vote of the people 28 in 1998; 29 (9) cut the budget not less than $100,000,000 during fiscal years 1997-99, 30 acknowledging the additional impact of absorbing inflation; 31 (10) use the Alaska Department of Labor's population and inflation estimates
01 and Department of Education's school enrollment projections; 02 (11) fully fund the equivalent of the current K-12 foundation formula, 03 including increases for enrollment; 04 (12) recommend streamlining measures and legislation each year as part of the 05 budget process; 06 (13) endorse a six year capital plan that addresses schools, transportation, water 07 and sewer, prisons and other basic needs with a stable level of funding from year to year; 08 (14) plan for adequate maintenance of facilities and other infrastructure; 09 (15) use Department of Revenue mid-case projections for existing revenues 10 such as oil and gas revenues and, corporate taxes; 11 (16) include new development revenues beginning in fiscal year 1998; 12 (17) diversify state revenues to reduce dependence on volatile oil and gas 13 revenues through measures such as increased user fees, income tax, and increased excise taxes; 14 (18) dedicate fuel taxes; 15 (19) maintain a balance of at least $1,500,000,000 in the Constitutional Budget 16 Reserve until the budget gap is eliminated and then conduct a policy review of the state's 17 reserve level to ensure that an appropriate amount of liquid reserves is available to deal with 18 revenue volatility and emergencies; 19 (20) include projections for new oil and gas settlements of $800,000,000 to be 20 deposited in the reserve over the next four years; 21 (21) manage the reserve with a goal of achieving at least a 6.5 percent return 22 in fiscal year 1997; 23 (22) fix the reserve's sweep and payback provisions through constitutional 24 amendment; and 25 (23) develop a cash management and reserves policy to be implemented by 26 statute in 1997. 27 (c) The legislature intends to work with the governor and with all parties to implement 28 this long range financial plan and meet the needs of Alaskans. 29 (d) The legislature urges all Alaskans to become knowledgeable about Alaska's fiscal 30 situation and to support actions necessary to close the fiscal gap. 31 (e) The legislature thanks all members of the Long Range Financial Planning
01 Commission for their hard work and efforts to address the state's fiscal future and assist the 02 legislature and governor in addressing the economic challenges we face as a state. 03 * Sec. 2. (a) Amounts equal to the deposits in the budget reserve fund (art. IX, sec. 17, 04 Constitution of the State of Alaska) for fiscal year 1996, that were made by operation of art. 05 IX, sec. 17(d) to repay appropriations from the budget reserve fund are appropriated from the 06 budget reserve fund to the funds and accounts from which they were transferred. 07 (b) If the unrestricted state revenue available for appropriation in fiscal year 1997 is 08 insufficient to cover the general fund appropriations made for fiscal year 1997, the amount 09 necessary to balance revenue and general fund appropriations is appropriated to the general 10 fund from the budget reserve fund (art. IX, sec. 17, Constitution of the State of Alaska). 11 (c) The appropriations made by (a) and (b) of this section are made under art. IX, 12 sec. 17(c), Constitution of the State of Alaska. 13 * Sec. 3. The sum of $739,511 is appropriated from the general fund to the Department 14 of Transportation and Public Facilities, Alaska Marine Highway System, to implement the 15 monetary terms of the collective bargaining agreement with the Inland Boatmen's Union of 16 the Pacific, representing the unlicensed marine unit, for the period October 10, 1994 through 17 May 31, 1996. 18 * Sec. 4. The sum of $80,847 is appropriated from the general fund to the Department of 19 Transportation and Public Facilities, Alaska Marine Highway System, to implement the 20 monetary terms of the collective bargaining agreement with the International Organization of 21 Masters, Mates, and Pilots, Pacific Maritime Region, representing the Masters, Mates, and 22 Pilots Unit, for the period April 1, 1994 through June 30, 1996. 23 * Sec. 5. The sum of $864,657 is appropriated to the University of Alaska to satisfy the 24 monetary terms of the 1995 collective bargaining agreement between the University and the 25 Alaska Classified Employees Association for the fiscal years ending June 30, 1995, and 26 June 30, 1996, from the following funding sources: 27 General fund receipts $852,095 28 Federal receipts 4,819 29 U/A dormitory/food/auxiliary service 2,899 30 Student fees 2,225 31 University receipts 2,619
01 * Sec. 6. The sum of $499,108 is appropriated to the University of Alaska to satisfy the 02 monetary terms of the collective bargaining agreement between the University and the Alaska 03 Community College Federation of Teachers for the fiscal year ending June 30, 1996, from the 04 following funding sources: 05 General fund receipts $466,207 06 Federal receipts 2,099 07 Student fees 26,302 08 University receipts 4,500 09 * Sec. 7. The sum of $720,000 is appropriated from the general fund to the Department 10 of Transportation and Public Facilities for Copper River Highway restoration and other costs 11 required by the consent decree in United States v. State of Alaska Department of 12 Transportation and Public Facilities (A92-24CIV). 13 * Sec. 8. The sum of $250,000 is appropriated from the general fund to the Alaska Marine 14 Highway System fund (AS 19.65.060). 15 * Sec. 9. (a) The unexpended and unobligated balance, not to exceed $1,500,000 of the 16 general fund appropriation made in sec. 47, ch. 94, FSSLA 1995, page 22, line 10 and 17 allocated on line 20 is reappropriated to the Department of Health and Social Services to be 18 used for an interdepartmental initiative to improve home and community care for the elderly, 19 for operating costs for the fiscal year ending June 30, 1997. 20 (b) The unexpended and unobligated balance, not to exceed $1,500,000, of the general 21 fund appropriation made to medical assistance in the department of Health and Social Services 22 in sec. 47, ch. 94, FSSLA 1995, page 22, line 10 and allocated on line 11 lapses into the 23 general fund June 30, 1997. 24 (c) The sum of $3,500,000 is appropriated to the Department of Health and Social 25 Services, division of medical assistance, Medicaid program to restore occupational therapy, 26 optometrist service & eyeglasses, speech, hearing and language disorders, and adult dental 27 services from the Medicaid services list (AS 47.07.035) for mental health trust beneficiaries 28 for the fiscal year ending June 30, 1997, from the following sources: 29 Mental Health Trust 30 Authority authorized receipts $1,000,000 31 Federal receipts 2,500,000
01 * Sec. 10. (a) The sum of $11,008,900 is appropriated to the Office of the Governor, 02 office of management and budget, to implement the monetary terms of the collective 03 bargaining agreements listed in (b) of this section and for salary adjustments for executive- 04 branch employees who are not members of a bargaining unit for the fiscal year ending June 05 30, 1997, from the following funding sources: 06 Federal receipts $1,310,200 07 General fund match 319,600 08 General fund 5,249,400 09 General fund program receipts 484,100 10 Inter-agency receipts 621,600 11 Alaska advance college tuition payment fund 100 12 Federal incentive payments 23,000 13 Benefit system receipts 16,200 14 Agricultural loan fund 9,400 15 State corporation receipts 215,000 16 FICA administration fund account 600 17 Fish and game fund 170,400 18 Science and technology endowment 10,300 19 Highway working capital fund 168,000 20 International airport revenue fund 351,500 21 Public employees retirement fund 17,700 22 Second injury fund reserve account 1,800 23 Disabled fisherman's reserve account 1,800 24 Surplus property revolving fund 2,300 25 Teachers' retirement system fund 16,300 26 Veterans revolving loan fund 1,500 27 Commercial fishing loan fund 13,800 28 General fund/mental health 199,200 29 Real estate surety fund 900 30 Judicial retirement system 400 31 Public Law 81-874 1,000
01 National guard retirement system 300 02 University receipts 300 03 Training and building fund 7,700 04 Permanent fund dividend fund 36,900 05 Rural development initiative fund 900 06 Oil/hazardous prevention/response 67,500 07 Investment loss trust fund 100 08 Interagency receipts/oil and hazardous waste 13,000 09 Capital improvement project receipts 955,100 10 Power project loan fund 4,400 11 Public school fund 600 12 Mining revolving loan fund 100 13 Fisheries enhancement revolving loan fund 500 14 Residential energy conservation loan fund 100 15 Bulk fuel revolving loan fund 600 16 Alaska clean water loan fund 2,100 17 Marine highway system fund 573,200 18 Gifts/grants/bequests 1,200 19 Storage tank assistance fund 9,000 20 Information services fund 125,800 21 Mental health trust settlement income 3,400 22 (b) This section applies to the following collective bargaining agreements: 23 (1) Alaska State Employees Association, for the General Government Unit; 24 (2) Alaska Public Employees Association, for the Supervisory Unit; 25 (3) Public Employees Local 71, for the Labor, Trades, and Crafts Unit; 26 (4) Inland Boatmen's Union of the Pacific, representing the unlicensed marine 27 unit; 28 (5) International Organization of Masters, Mates, and Pilots, Pacific Maritime 29 Region, for the Masters, Mates, and Pilots Unit; 30 (6) Public Safety Employees Association, representing state troopers and other 31 commissioned law enforcement personnel;
01 (7) Alyeska Correspondence School Education Association, representing 02 teachers at the Alyeska Central School; 03 (8) Alaska Vocational Technical Center Teachers' Association, representing 04 teachers at the Alaska Vocational Technical Center. 05 * Sec. 11. The sum of $592,000 is appropriated from the general fund to the Alaska Court 06 System to satisfy the monetary terms of the collective bargaining agreement with the 07 International Brotherhood of Electrical Workers, representing nonjudicial, nonsupervisory, 08 classified employees of the Alaska Court System for the fiscal year ending June 30, 1997. 09 * Sec. 12. The sum of $1,202,600 is appropriated from the general fund to the Alaska 10 Court System for salary adjustments for employees of the court system who are not members 11 of a collective bargaining unit for the fiscal year ending June 30, 1997. 12 * Sec. 13. The sum of $320,000 is appropriated from the general fund to the Alaska State 13 Legislature for salary adjustments for legislative employees who are not members of a 14 bargaining unit for the fiscal year ending June 30, 1997. 15 * Sec. 14. The sum of $224,100 is appropriated to the University of Alaska to satisfy the 16 monetary terms of the collective bargaining agreement between the University and the Alaska 17 Classified Employees Association for the fiscal year ending June 30, 1997, from the following 18 funding sources: 19 General fund receipts $220,900 20 Federal receipts 1,200 21 U/A dormitory/food/auxiliary service 800 22 Student fees 600 23 University receipts 600 24 * Sec. 15. The sum of $1,013,189 is appropriated to the University of Alaska to satisfy the 25 monetary terms of the collective bargaining agreement between the University and the Alaska 26 Community College Federation of Teachers for the fiscal year ending June 30, 1997, from the 27 following funding sources: 28 General Fund Receipts $946,400 29 Federal Receipts 4,261 30 Student Fees 53,393 31 University Receipts 9,135
01 * Sec. 16. The sum of $1,389,600 is appropriated from the general fund to the University 02 of Alaska for salary adjustments for University employees who are not members of a 03 bargaining unit for the fiscal year ending June 30, 1997. 04 * Sec. 17. The unexpended and unobligated balances of the allocation made in SLA 80, 05 ch. 50, page 63, line 23 (Fairbanks Youth Facility - $200,000); the appropriation made in SLA 06 80, ch. 50, page 82, line 15 (Rural Airport Improvements Airport Lighting - $4,719,000); the 07 appropriation made in SLA 84, ch. 24, page 14, line 4 (Ruby Runway Improvements - 08 $350,000); the appropriation made in SLA 86, ch. 128, page 12, line 17 (Payment of 09 Construction Claims - $100,000); the appropriation made in SLA 90, ch. 208, page 69, line 10 14 (Glennallen Combined Office Facility Replacement - $327,200); the allocation made in 11 SLA 90, ch. 208, page 109, line 4 (Whittier Breakwaters Repairs - $1,500,000); and the 12 appropriation made in SLA 90, ch. 208, page 109, line 10 (Lemon Road Seal Coat - $200,000) 13 are repealed and reappropriated to the Department of Transportation and Public Facilities for 14 Bethel seawall construction. 15 * Sec. 18. The sum of $650,000 is reappropriated from the Power Project Fund otherwise 16 subject to lapse into the general fund as of June 30 and August 10, 1994, in accordance with 17 former AS 44.83.170(g), to the Department of Transportation and Public Facilities for Bethel 18 seawall construction. 19 * Sec. 19. The fund balance in the Rural Electrification Revolving Loan Fund on 20 June 30, 1996, otherwise subject to lapse into the general fund (AS 42.45.020(g)), is 21 appropriated to the Department of Transportation and Public Facilities for Bethel seawall 22 construction. 23 * Sec. 20. The unexpended and unobligated balance, not to exceed $1,000,000 of the 24 general fund appropriation made by sec. 47, ch. 94, SLA 1995, page 21, line 32 (Department 25 of Health and Social Services, Assistance Payments - $176,370,000) and allocated on line 33 26 (Aid to Families with Dependent Children) is reappropriated to the Department of Health and 27 Social Services for final design, site preparation and construction of the Johnson Youth Center 28 treatment facility. 29 * Sec. 21. An amount not to exceed $2,500,000, representing reimbursement received by 30 the State of Alaska from the federal government for the state's overpayment of its Medicaid 31 matching money related to services previously paid by the state and provided by Alaska public
01 schools to Medicaid-eligible children, is appropriated from the federal receipts to the principal 02 of the Alaska Children's Trust (AS 37.14.200). 03 * Sec. 22. The unexpended and unobligated balance on June 30, 1996, not to exceed 04 $300,000, of the appropriation made in sec. 47, ch. 94, SLA 1995, page 15, line 29 (Longevity 05 Bonus Grants - $72,152,600) is reappropriated to the Department of Administration, division 06 of personnel, to continue personnel records automation and developing changes to the state's 07 personnel management system for the fiscal year ending June 30, 1997. 08 * Sec. 23. The unexpended and unobligated balance, not to exceed $250,000, of the general 09 fund appropriation made to Medical Assistance in the Department of Health and Social 10 Services in sec. 47, ch. 94, FSSLA 1995, page 22, line 10 and allocated on line 12 is 11 reappropriated to the Department of Corrections for conversion of Harborview to correctional 12 facility. 13 * Sec. 24. (a) Legislative Findings and Purpose. The legislature finds that 14 (1) as a result of the judgment entered by the United States District Court in 15 the criminal case United States of America v. Exxon Shipping Company and Exxon 16 Corporation, No. A90-015 CR, the state received $50,000,000 in restitution "to be used by the 17 State of Alaska . . . exclusively for restoration projects, within the State of Alaska, relating 18 to the Exxon Valdez oil spill"; 19 (2) the judgment defines restoration as including "restoration, replacement, and 20 enhancement of affected resources; acquisition of equivalent resources and services, and long- 21 term environmental monitoring and research programs directed to the prevention, containment, 22 cleanup and amelioration of oil spills; 23 (3) the money received by the state in restitution is held in the Exxon Valdez 24 oil spill restoration fund, established by the Department of Revenue, to implement the form 25 of the judgment; 26 (4) the appropriation in (b) of this section is made in order to achieve the 27 purposes in the court's restitution order. 28 (b) The sum of $750,000 of the interest accrued before June 30, 1997, on the 29 restitution payment described in (a) of this section is appropriated to the Department of 30 Administration for payment as a grant under AS 37.05.315 to the Kenai Peninsula Borough 31 for the construction of the Kenai River Center in Soldotna, Alaska.
01 * Sec. 25. The unexpended and unobligated balance, not to exceed $100,000, of the Alaska 02 Debt retirement fund (AS 37.15.011) is appropriated to the Department of Natural Resources, 03 for the state land status geographic information system. 04 * Sec. 26. The sum of $400,000 is reappropriated from the unexpended and unobligated 05 balance of the appropriation made in sec. 47, ch. 94, SLA 1995, page 15, line 12 (Executive 06 Operations - $7,441,300) to the Office of the Governor, executive office, for operations for 07 the fiscal year ending June 30, 1997. 08 * Sec. 27. The balance on June 30, 1996, of the Alaska Public Utilities Commission 09 designated program receipts account for regulatory cost charges under AS 42.05.254 and 10 AS 42.06.286 for fiscal year 1996 is appropriated to the Alaska Public Utilities Commission 11 to meet its duties under the Federal Telecommunications Act of 1996 (P.L. 104-104). 12 * Sec. 28. Notwithstanding the failure of the vote on the effective date to the final version 13 of an Act making appropriations for the operating and loan program expenses of state 14 government (HB 412, Nineteenth Legislature, Second Session), the appropriations enacted in 15 that Act take effect July 1, 1996. 16 * Sec. 29. To meet federal compliance requirements under Public Law 81-874 for 17 educational support 18 (1) section 104(a), ch. 103, SLA 1995, is amended to read: 19 (a) The sum of 709,917,745 [$711,150,120] is appropriated from the general 20 fund and from other funds in the amounts listed to the Department of Education for 21 the purposes expressed and allocated in the amounts listed for operating expenditures 22 for the fiscal year ending June 30, 1996: 23 FUND SOURCE AMOUNT 24 General fund $651,003,445 [$652,235,820] 25 General fund/mental health 8,073,600 26 Public School Trust fund (AS 37.14.110) 5,394,700 27 School fund (AS 43.50.140) 2,655,000 28 Federal receipts - P.L. 81-874 20,791,000 29 Federal receipts - other than P.L. 81-874 22,000,000 30 PURPOSE ALLOCATION 31 Foundation program $642,169,525 [$643,401,900]
01 Child nutrition/student lunch program 22,000,000 02 Cigarette tax distribution 2,655,000 03 Tuition students 1,731,200 04 Boarding home grants 185,900 05 Youth in detention 800,000 06 Public pupil transportation 32,842,190 07 Schools for the handicapped 3,705,200 08 Community schools 600,000 09 Additional district support 3,228,730 10 (2) The sum of $1,232,375 is appropriated from the general fund to the Department 11 of Education for the fiscal year ending June 30, 1996 and allocated to the following school 12 districts in the amounts listed: 13 SCHOOL DISTRICT ALLOCATION AMOUNT 14 Alaska Gateway School District $ 45,040 15 Aleutian Region School District 5,005 16 Annette Island School District 22,795 17 Bering Strait School District 159,600 18 Chatham School District 26,840 19 Chugach School District 15,190 20 Copper River School District 45,935 21 Delta/Greely School District 49,090 22 Iditarod School District 47,895 23 Kashunamiut School District 18,100 24 Kuspuk School District 46,345 25 Lower Kuskokwim School District 335,370 26 Lower Yukon School District 138,310 27 Pribilof Islands School District 19,655 28 Southeast Island School District 35,995 29 Southwest Region School District 61,195 30 Yukon Flats School District 53,700 31 Yukon/Koyukuk School District 66,610
01 Yupiit School District 39,705 02 Total $1,232,375 03 * Sec. 30. Notwithstanding the failure of the vote on the effective dates to sections set out 04 in the final version of an Act making, amending, and repealing appropriations (SB 136, 05 Nineteenth Legislature, Second Session), the appropriations enacted in that Act take effect as 06 follows: 07 (1) the lapse of the small business assistance and development program 08 appropriation made in sec. 59, ch.8, FSSLA 1994 is retroactive to June 30, 1994; 09 (2) the amendment of section 135, ch. 103, SLA 1995, page 69, lines 31 - 32 10 changing the purpose to community facility improvement is retroactive to July 7, 1993; 11 (3) the extension of the lapse date of the appropriation made in sec. 42, ch. 3, 12 FSSLA 1994, page 28, line 38 to the Department of Military and Veterans' Affairs for disaster 13 planning and control is retroactive to July 1, 1994; 14 (4) the extension of the lapse date of the appropriation made in sec. 47, ch. 94, 15 SLA 1995, page 29, line 22 to the Department of Military and Veterans' Affairs for disaster 16 planning and control is retroactive to July 1, 1995; 17 (5) appropriations made in sections designated in that Act to take effect 18 July 1, 1996 take effect on that date; 19 (6) appropriations made in sections designated in that Act to take effect 20 immediately, take effect immediately in accordance with AS 01.10.070(c). 21 * Sec. 31. Sections 2 and 8 - 37 of this Act take effect July 1, 1996. 22 * Sec. 32. Sections 7, 17 - 20, 22 - 25, 27 and 37 of this Act are for capital projects and 23 lapse as provided in AS 37.25.020. 24 * Sec. 33. Sections 1, 3 - 7, and 29 of this Act take effect immediately under 25 AS 01.10.070(c). 26 * Sec. 34. Section 21 of this Act is made to capitalize a trust fund and does not lapse as 27 provided in AS 37.25.010. 28 (SECTION 35 OF THIS ACT BEGINS ON PAGE 14)