03/19/2014 09:00 AM Senate FINANCE

CS FOR HOUSE BILL NO. 266(FIN)                                                                                                
                                                                                                                                
     "An  Act making  appropriations  for  the operating  and                                                                   
     loan  program  expenses  of  state  government  and  for                                                                   
     certain   programs,  capitalizing   funds,  and   making                                                                   
     reappropriations;   and  providing   for  an   effective                                                                   
     date."                                                                                                                     
                                                                                                                                
CS FOR HOUSE BILL NO. 267(FIN)                                                                                                
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
Co-Chair Meyer handed the gavel to Co-Chair Kelly.                                                                              
                                                                                                                                
5:13:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  MOVED to ADOPT  the committee  substitute for                                                                   
Senate  CS HB  266 (FIN),  work  draft 28-GH2671\G  (Wallace,                                                                   
3/19/14). There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
JAMES  ARMSTRONG,  STAFF,  SENATOR PETE  KELLY,  referred  to                                                                   
four   Statewide   Reports   that  were   prepared   by   the                                                                   
Legislative  Finance Division  (copies  on  file). He  stated                                                                   
that  for all  funds,  the  governor's proposal  had  $12.195                                                                   
billion  in total  spending.  The CS  had  $9.148 billion  in                                                                   
total  spending.   The  difference  between   the  governor's                                                                   
proposal and  the CS was $3.47  billion. He stressed  that $3                                                                   
billion for  PERS was not contained  in the CS. He  looked at                                                                   
the  general fund  (GF), including  designated general  funds                                                                   
(DGF)  and  undesignated  general funds  (UGF).  He  reported                                                                   
that the governor's  proposal had $5.878 billion;  and the CS                                                                   
proposed  $5.818 billion.  The  CS contained  a reduction  of                                                                   
nearly  $60 million.  He announced  that one  of the  reports                                                                   
contained the day-to-day  operations of the formula  and non-                                                                   
programs  contained  within  the budget  using  a  comparison                                                                   
using UGF.  He stated that the  comparison did not  take into                                                                   
account the $1.5 billion from statewide operations.                                                                             
                                                                                                                                
Co-Chair  Kelly wondered  if the  $1.5 billion  was DGF.  Mr.                                                                   
Armstrong  replied   that  the  $1.5  billion   was  DGF  and                                                                   
statewide operations.                                                                                                           
                                                                                                                                
Mr. Armstrong  shared that,  with the  $1.5 billion  removed,                                                                   
the  subcommittee  reports contained  $33.641  million  below                                                                   
the  governor's  proposal.  The fourth  report  examined  the                                                                   
agency  day-to-day operations,  and  removed the  non-formula                                                                   
portion of  the budget. Under  that analysis,  the governor's                                                                   
proposal was  $2.270 billion;  and the current  version spent                                                                   
$2.243  billion.  Therefore,   the  CS  was  a  reduction  of                                                                   
$26.343  million.  He  announced  that  the  current  version                                                                   
removed   K-12  formula   education   and  Medicaid   formula                                                                   
funding.  The subcommittee  work  represented  a 1.1  percent                                                                   
decrement to agency  operations against the governor's  FY 15                                                                   
budget  request.   He  announced   that  the  governor   also                                                                   
provided decrements  to the budget. He stated  that comparing                                                                   
the Senate  CS to the management  plan of FY 14, there  was a                                                                   
$53.991  million or  approximately 2.2  percent reduction  in                                                                   
day-to-day operation of state government.                                                                                       
                                                                                                                                
5:19:10 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
5:20:52 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Meyer  MOVED to ADOPT  the committee  substitute for                                                                   
Senate  CS HB  267 (FIN),  work  draft 28-GH2673\Y  (Wallace,                                                                   
3/19/14). There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
Mr. Armstrong  shared that there  were some language  changes                                                                   
in  HB  266.  He  stated  that  there  were  some  negotiated                                                                   
contract  settlements  with  the University  of  Alaska,  but                                                                   
were not  included  in the CS.  He shared  that those  issues                                                                   
would  be dealt  with at  a later  date. The  infusion of  $3                                                                   
billion  was also  not included  in  the CS.  He stated  that                                                                   
there was  intent language that  was added by the  other body                                                                   
into the language  section, but he had not  had adequate time                                                                   
to review that  language. He announced that  items related to                                                                   
crime victims'  rights, recidivism reduction,  and the Alaska                                                                   
Seafood Marketing  Institute (ASMI) program funding  would be                                                                   
addressed in the  Conference Committee. He reported  that the                                                                   
fuel  trigger   section,  which  contained  $30   million  as                                                                   
proposed by  the governor,  was reduced  by $3 million.  This                                                                   
represented  a  $9  million  reduction,   and  a  25  percent                                                                   
reduction in  the program from  the FY 14 budget.  There were                                                                   
numerous  technical and  financial changes,  and stated  that                                                                   
language  comparisons  could  be  found  on  the  Legislative                                                                   
Finance  website.   He  announced   that  the  deadline   for                                                                   
amendment  submission was  Friday, March  21, 2014 at  4:00pm                                                                   
to Co-Chair Kelly's office.                                                                                                     
                                                                                                                                
Co-Chair Kelly  encouraged the  committee members  to discuss                                                                   
the individual items that were included in the budget.                                                                          
                                                                                                                                
Mr. Armstrong announced that his was his mother's birthday.                                                                     
                                                                                                                                
CSHB 267(FIN)  was HEARD  and HELD  in committee for  further                                                                   
consideration.                                                                                                                  
                                                                                                                                
CSHB 266(FIN)  was HEARD  and HELD  in committee for  further                                                                   
consideration