04/02/2009 03:06 PM House FIN

HOUSE BILL NO. 199                                                                                                            
                                                                                                                                
     "An Act making supplemental appropriations and capital                                                                     
     appropriations; amending appropriations; and providing                                                                     
     for an effective date."                                                                                                    
                                                                                                                                
3:06:26 PM                                                                                                                    
                                                                                                                                
Co-Chair Hawker  MOVED to ADOPT  CSHB 199 (FIN),  version 26-                                                                   
GH1260\E, Kane, 4/1/09 as a working draft.                                                                                      
                                                                                                                                
Co-Chair Stoltze OBJECTED for discussion.                                                                                       
                                                                                                                                
Co-Chair  Hawker informed  the committee  that the intent  of                                                                   
the  draft was  to forward  open  and transparent  discussion                                                                   
regarding  American  Recover   and  Reinvestment  Act  (ARRA)                                                                   
funds.  He detailed  that the  proposed committee  substitute                                                                   
(CS)  keeps all  the state's  options open  by accepting  and                                                                   
appropriating  all monies  available under  ARRA for  Alaskan                                                                   
non-transportation projects.                                                                                                    
                                                                                                                                
Co-Chair Hawker  stressed that the  CS is open  for amendment                                                                   
and further  evaluation. He noted  that one particular  item,                                                                   
Part B  of the  $20.7 million  education program, had  caused                                                                   
concern, but was  still a work in progress. In  the draft CS,                                                                   
the money  is appropriated  to the Capital  Income Fund  as a                                                                   
placeholder.  He emphasized  that  the discussion  was  still                                                                   
ahead; the  issue would be dealt  with in the  capital budget                                                                   
before the end of the legislative session.                                                                                      
                                                                                                                                
Co-Chair Hawker  acknowledged questions that had  been raised                                                                   
regarding  the potential  $15.6 million  direct deposit  into                                                                   
the unemployment  insurance (UI)  trust fund. He  pointed out                                                                   
that the  amount does not need  to be appropriated in  the CS                                                                   
as the money  will automatically be deposited  into the trust                                                                   
if separate legislation passes  revising the base periods for                                                                   
participating in unemployment insurance.                                                                                        
                                                                                                                                
3:10:12 PM                                                                                                                    
                                                                                                                                
Representative   Fairclough  requested   an  explanation   of                                                                   
legislative intent.                                                                                                             
                                                                                                                                
Co-Chair Hawker  detailed that Section  10 of the  work draft                                                                   
is an initial suggestion for legislative  intent. The section                                                                   
states in language as strong as  legally allowed that the use                                                                   
of stimulus  funds will not  create obligations to  the state                                                                   
to replace the funds, and that  existing programs will not be                                                                   
expanded.  The  intent  is  to  use  the  funds  to  continue                                                                   
existing  activities or  deal  with issues  such as  deferred                                                                   
maintenance.  He added  that another  important part  refuses                                                                   
federal  stimulus   money  that  would  violate   the  strong                                                                   
constitutional rights to privacy enjoyed by Alaskans.                                                                           
                                                                                                                                
3:11:36 PM                                                                                                                    
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
Representative Kelly  wanted an opportunity to  look over the                                                                   
proposed CS and the intent language.  Co-Chair Hawker assured                                                                   
him that  the CS is a  working document subject  to committee                                                                   
scrutiny.                                                                                                                       
                                                                                                                                
Vice-Chair  Thomas noticed  that the  Office of the  Governor                                                                   
had $1 million  in discretionary funds and asked  whether the                                                                   
legislature  could spend  the money if  the governor  refused                                                                   
the funds. Co-Chair Hawker did not believe so.                                                                                  
                                                                                                                                
3:13:41 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stoltze  WITHDREW  his OBJECTION.  There  being  no                                                                   
further objection, the work draft was adopted.                                                                                  
                                                                                                                                
HB  199  was   HEARD  and  HELD  in  Committee   for  further                                                                   
consideration.