Legislature(2017 - 2018)SENATE FINANCE 532
06/22/2017 10:00 AM House CONFERENCE COMMITTEE ON HB57 AND HB59
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| Audio | Topic |
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| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 57 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 57(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; and making supplemental appropriations
and reappropriations."
and
SENATE CS FOR CS FOR HOUSE BILL NO. 57(FIN) am S
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; making supplemental appropriations and
reappropriations; 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."
12:19:28 PM
Chair Seaton invited Lacey Sanders of the Legislative
Finance Division to join legislators at the table. He
reported that the conference committee would be addressing
open items in HB 57 based on the motion sheets distributed
to members earlier in the day dated June 21th on the
following:
• Department of Education and Early Development
• Department of Health and Social Services
• Fund Capitalization
• Permanent Fund Dividends
• Permanent Fund ERA Appropriation
• Fund Transfers
• Language
• Supplemental Items
Vice-Chair Hoffman MOVED to ADOPT the following in the
Department of Education and Early Development budget:
Item 1 Senate and make a technical correction by
changing the second "(2)" in the language to "(3)"
Item 2 Senate
Item 3 House
Item 4 House
Item 5 House
Item 6 House
Item 7 House
Item 8 House
Item 9 House
Item 10 Senate for both lines
The increment for the warm storage of the Mt.
Edgecumbe Aquatic Center is a One-Time Increment. (The
increment is for $100.0)
Add new intent language: It is the intent of the
legislature that the $4,758,800 fund source change
from Unrestricted General Fund to Public School Trust
Fund be reversed in the FY19 budget.
Item 11 House
Item 12 House
Item 13 Senate
Item 14 House
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the action closed the
conference-able items in the Department of Education and
Early Development budget.
12:21:47 PM
Vice-Chair Hoffman MOVED to ADOPT the following in the
Department of Health and Social Services budget:
Item 27 Senate
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the action closed the
conference-able items in the Department of Health and
Social Services budget.
12:22:10 PM
Vice-Chair Hoffman MOVED to ADOPT the following in the Fund
Capitalization budget:
Item 1 House plus $20 million for a revised amount
of $57 million and add intent language per Amendment
M.A.16: It is the intent of the legislature to end the
state oil and gas tax credit purchase program during
the fiscal year ending June 30, 2018, and not to
purchase transferable tax credit certificates for
expenditures incurred on or after January 1, 2018, or
to pay refunds for payments for expenditures incurred
on or after January 1, 2018.
There being NO OBJECTION, it was so ordered.
12:23:06 PM
Vice-Chair Hoffman MOVED to ADOPT the following in the Fund
Capitalization budget:
Item 2 Adopt new language per Amendment M.A.14,
which fully funds K-12 education.
Chair Seaton OBJECTED for the purpose of discussion.
Vice Chair Hoffman explained that the estimated amount
necessary to fully fund K-12 education was $1,159,466,600.
Vice Chair Hoffman continued that after taking into
consideration the $17 million already appropriated into the
public education fund, the amendment appropriated the
remaining estimated amount necessary to fully fund K-12
education of $1,159,466,600.
12:24:02 PM
AT EASE
12:24:37 PM
RECONVENED
Vice Chair Hoffman restated that after taking into
consideration the $17 million already appropriated into the
public education fund, the amendment appropriated the
remaining estimated amount necessary to fully fund K-12
education of $1,159,466,600.
Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the actions closed the
conference-able items in Fund Capitalization.
12:25:15 PM
Vice-Chair Hoffman MOVED to ADOPT the following in
Permanent Fund Dividends:
Item 1 House minus $33,795,000 for a revised amount
of $760 million and change the language per Amendment
M.A.18, which appropriates the amount necessary,
estimated to be $760 million from the earnings reserve
account to the dividend fund to provide for a
permanent fund dividend of $1100 in FY18.
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the actions closed the
conference-able items in Permanent Fund Dividends.
12:26:03 PM
Vice-Chair Hoffman MOVED to ADOPT the following in the
Permanent Fund ERA Appropriation:
Item 1 House minus $1,611,644,400 for a revised
amount of zero.
Representative Pruitt OBJECTED.
Representative Pruitt requested the Item 1 remain open.
Vice Chair Hoffman WITHDREW his MOTION to ADOPT Item 1.
Chair Seaton indicated that conference-able Item 1 was left
open in the Permanent Fund ERA Appropriation.
12:26:59 PM
Vice-Chair Hoffman MOVED to ADOPT the following in Fund
Transfers:
Item 1 Senate
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the action closed the
conference-able Items in Fund Transfers.
12:27:14 PM
Vice-Chair Hoffman MOVED to ADOPT the following in Language
Items:
Item 4 Senate plus Amendment M.A.7
Chair Seaton OBJECTED for the purpose of discussion.
Vice Chair Hoffman explained that the amendment modified
the language in subsection (b) by citing the three FY18
appropriation bills. Language in new subsection (c)
provided for up to $200 million of other appropriations
that took effect in FY18, similar to FY17 language.
Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the actions closed the
conference-able items in Language.
12:28:00 PM
Vice Chair Hoffman MOVED to REPOEN Supplemental Items and
adopt new Supplemental Item 7, Amendment A.9.
Chair Seaton OBJECTED for the purpose of discussion.
Vice Chair Hoffman explained that the amendment added all
of the operating and capital supplemental appropriations
that were currently in the House's version of SB 23 into HB
57. Reappropriations were not included.
Vice Chair Hoffman indicated that timing was critical for
these supplemental appropriations as agencies would have to
establish accounting structures; get appropriations
recorded in the accounting system (a multi-step multi-
agency process); potentially draw/receive revenues; process
all payments; and close the agencies' FY17 accounting books
in two short months. Most agencies would stop FY17
transactions by mid-August, leaving the last two weeks to
troubleshoot and fix any issues. All agency FY17
transactions would cease on August 31, 2017.
Vice Chair Hoffman continued that rather than further
compress the timeframe, the amendment would provide agency
staff the longest amount of time to accomplish required
tasks.
Vice Chair Hoffman reported that LFD's three operating and
two capital reports were provided that list all of the
included supplementals:
$57.0 million for operating supplementals and $5.6
million for capital supplementals combined for a total
of $62.6 million of Unrestricted General Funds.
(Medicaid had nearly $27 million; Fire Suppression $15
million, Judgments and Settlements nearly $7 million
and Disaster Relief Fund capitalization of $3 million
total $52 million of the $57 million UGF for operating
supplementals.)
The supplemental combined total funds amount was
$357.8 million, of which Federal Funds comprised
$290.2 million of the combined total.
Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the action reclosed the
conference-able items in Supplemental Items.
12:30:50 PM
AT EASE
12:31:17 PM
RECONVENED
Chair Seaton indicated that the committee would recess to
the call of the chair
12:31:22 PM
RECESSED
1:01:45 PM
RECONVENNED
Vice-Chair Hoffman MOVED to ADOPT the following in the
Permanent Fund ERA Appropriation:
Item 1 House minus $1,611,644,400 for a revised
amount of zero.
There being NO OBJECTION, it was so ordered.
Chair Seaton indicated that the actions closed the
conference-able items in the Permanent Fund ERA
Appropriation.
1:02:31 PM
Vice Chair Hoffman MOVED to give Legislative Finance and
Legislative Legal Services the ability to make technical
and conforming adjustments to the Conference Committee
Substitute for House Bill 57.
There being NO OBJECTION, it was so ordered.
1:02:54 PM
Vice Chair thanked the staff of LFD for all of their hard
work. He also thanked his finance aide, James Armstrong,
for all of the hours he committed to the operating budget.
He thought the committee report had many compromises in it
from both bodies. He invited other members to make
additional comments.
Chair Seaton thanked Vice-Chair Hoffman and his aide, James
Armstrong for all of their efforts. He also wished Mr.
Armstrong a very happy retirement, as he was retiring after
the current legislative session. He also extended his
thanks to Senator MacKinnon, Senator Olson, Representative
Foster, Representative Pruitt, and to all of their staff.
He thanked David Teal and Lacey Sanders and the exceptional
LFD crew. He thanked Megan Wallace, the very talented
budget bill drafter and the rest of the staff at
Legislative Legal Services. He wished Megan a very Happy
Birthday as well. He also thanked Pat Pitney and her staff
at the Office of Management and Budget and the finance
committee assistants and secretaries. He gave a special
thank you to his staff, Joan Brown and Arnie Liebelt.
1:04:42 PM
Vice-Chair Hoffman MOVED to report CCSHB 57 out of
Committee.
Chair Seaton WITHDREW his OBJECTION.
There being NO OBJECTION, it was so ordered.
1:05:05 PM
AT EASE
1:06:28 PM
RECONVENED
CCSHB 57 was REPORTED OUT of Committee with accompanying
fiscal notes.
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