Legislature(2017 - 2018)HOUSE FINANCE 519
02/16/2018 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB284 || HB285 || HB286 || HB321 | |
| HB176 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 284 | TELECONFERENCED | |
| += | HB 285 | TELECONFERENCED | |
| += | HB 286 | TELECONFERENCED | |
| += | HB 321 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 176 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 284
"An Act making appropriations, including capital
appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
HOUSE BILL NO. 285
"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."
HOUSE BILL NO. 286
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making supplemental 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."
HOUSE BILL NO. 321
"An Act making supplemental appropriations and other
appropriations; making an appropriation to capitalize
a fund; amending appropriations; and providing for an
effective date."
1:34:36 PM
PAT PITNEY, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, introduced herself.
NEIL STEININGER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT
AND BUDGET, OFFICE OF THE GOVERNOR, reviewed the details of
the handout, "FY2019 Amendments to HB 286/ SB 144 / HB 284
/ SB 142 / HB 321 / SB 168" (copy on file):
Line 2:
CHIP Reauthorization
The United States Congress re-authorized the
Children's Health Insurance Program (CHIP) and the
reauthorization was signed into law on January 25,
2018. CHIP reauthorization maintains the 88% enhanced
federal match rate through federal fiscal year 2019,
starting in federal fiscal year 2020 the enhance match
rate will be stepped down over two years until it
reaches 65% in federal fiscal year 2021.
Line 5:
Reapprop for Newtok - Mertarvik Community Development
- NTE $960,000
The Newtok Village Council is coordinating with the
Denali Commission to bring critical housing to the
community of Mertarvik. This project will match
federal Denali Commission funds of $3.84 million to
refurbish, ship, and install 13 barracks available on
Joint Base Elmendorf-Richardson to Mertarvik. The
barracks will be converted into 4- bedroom residences
and will add to the current housing stock of eight
existing homes in Mertarvik.
Line 6:
Reapprop for Enhanced Rural Safety - Est $899,711
This provides additional funding to respond to the
rural public safety crisis and continues to advance
the goals of the State's Public Safety Action Plan.
The Governor is working with the Departments of Law
and Public Safety, as well as institutions and rural
leadership most directly involved and affected, and
will seek innovative solutions to rural public safety
needs. The funding is requested in the Governor's
Office to denote the priority of solving this issue
but also allows distribution to the department that is
most able to address the specific issue. Law, Labor,
Public Safety, and Commerce could each play a part in
addressing these pressing needs.
Representative Wilson asked if the funds were out of the
general funds (GF).
Mr. Steininger responded that they were reappropriation
dollars from the GF for a capital project.
Representative Pruitt wondered asked the original location
of the reappropriated funds.
Mr. Steininger replied that it was a reappropriation from
the Susitna-Watana project.
Mr. Steininger relayed that those were the total of
negative $7 million in GF through the supplemental request.
Vice-Chair Gara asked for clarification, and surmised that
they were amendments to the 2019 budget.
1:38:36 PM
Mr. Steininger continued with the amendments:
Line 10:
Align Information Service Fund Receipts Replace
interagency receipts with Information Service Fund.
This is a technical adjustment to align the Office of
Information Technology's (OIT) budget with the most
appropriate fund source.
Line 11:
The one new Research Analyst I/II/III flex (Range
13/16/18) position will serve as a liaison to school
districts by providing technical assistance and
support for the additional data that will be
collected. In addition, this position will provide
more longitudinal and comparability data analysis
using existing and new datasets. This position will
work across divisions within the department and
increase the reporting capacity of the data management
team.
Line 12:
Add General Fund Program Receipt Authorization for the
Mt. Edgecumbe Aquatic Center In order for the state to
accept entrance fees, and other event fees, at the new
Mt. Edgecumbe High School (MEHS) Aquatic Center,
general fund program receipt (GF/PR) authorization
must be added to the MEHS Facility Maintenance budget
structure.
Representative Wilson looked at line 10, and queried the
total money in the Information Service Fund. She also
queried the age of the fund.
Ms. Pitney replied that the fund was set up around the
prior information technology organization, so the fund may
have been around for 15 years. She shared that there was an
oversight of having interagency receipt authority. She
remarked that the Information Services Fund was the same
type of money, but from an accounting change, there were
statutory rules that focused on the information technology
needs. She remarked that it was a technical accounting
change, because there was an inadvertent use of interagency
receipts. She shared that the number was the annual
anticipated operating cost.
Representative Wilson queried the total in the fund.
1:41:59 PM
Mr. Steininger continued with the amendments:
Line 13:
Establish Children's Services Safety Officer
The primary duties of the Safety Officer would include
safety policy development, workplace inspections,
accident investigations, training and coaching,
regulatory compliance, safety data management and
reporting, and workspace modification.
Line 14:
Security Guards for Kenai and Fairbanks Recent threats
and incidents has led to a growing concern for workers
safety. Security guards will be used to prevent crime,
maintain security, assist clients and employees, and
lead safety meetings and drills.
Representative Pruitt wanted to better understand the
structure of funding. He wondered if $129 was required for
matching.
Mr. Steininger replied that the Office of Children's
Services (OCS) had cost allocation plans. He shared that it
was not a direct matching requirement. He explained that
the collection of federal revenue was more dependent on the
types of children in care, and the types of activities
performed by the case workers and employees.
Representative Pruitt asked about the number of people that
would be hired.
Mr. Steininger responded that there would be one person in
the Safety Officer position; and the security guards in
Kenai and Fairbanks would be contracted through a security
firm.
Representative Pruitt wondered whether the $72,000 of
federal funds would be lost, should there be no GF funds.
Mr. Steininger replied that they would not be able to
collect the federal funds with the general funds.
Representative Wilson wondered how much authority was given
for the federal funds. She surmised that, because of the
complicated calculation, the state may not lose the federal
funding. She stressed that there was a maximum available to
each state, and Alaska may almost be at that maximum.
Ms. Pitney replied that five years prior, there were not as
many qualified families under the 4E. She explained that
the program had a much higher federal rate. She stated that
the request balanced it to what was eligible to fund, and
the balance of the state and federal funds. She remarked
that the federal funds were increasing over time, because
there was more eligibility in the 4E area versus those in
the GF.
Representative Wilson felt that it was about the number of
people enrolled in the program, and not about how many
positions were hired.
Ms. Pitney agreed. She stated that the request was a
balance of funding that would allow the contract for the
individuals, given the other commitments in that operation.
1:47:57 PM
Vice-Chair Gara understood that it was not federal money
that would be taken from other use. He felt that there was
room for additional federal funds, as the positions were
added.
Ms. Pitney agreed.
Co-Chair Seaton wondered whether it was a maintenance of
effort amount, rather than a direct federal match
percentage.
Ms. Pitney responded in the negative, and explained that it
was the amount covered in the contract amount.
Mr. Steininger continued with the amendments:
Line 15:
New Positions to Address Increased Caseloads
During FY2013 the average monthly caseload for an
eligibility technician was 569 while FY2017 is
estimated at 676. This is an increase of 18.80
percent. 41 additional positions would allow the
division to reduce the average monthly caseload per
technician and address the growing backlog.
Representative Wilson wondered whether the request was
within the same department that removed public assistance
to fund other workers.
Mr. Steininger replied that the adult public assistance
program was within the Division of Public Assistance. He
explained that the request was for Public Assistance field
services, which were people who determined eligibility for
programs like SNAP, Medicaid, and other similar programs.
Vice-Chair Gara shared that there were nearly a dozen
public assistance programs that the workers would
administer. He surmised that the request was related to the
federally funded or partially federally funded public
assistance backlog.
Mr. Steininger replied in the affirmative.
Representative Pruitt felt that the goal was to have an
influx of people to eliminate the backlog. He felt that 41
positions was more than what would be needed in the long-
term. He wondered whether the intent was to reduce the
numbers, or whether 41 was expected in perpetuity.
Ms. Pitney responded that there was a period of time as the
backlog grew, when the Alaska Mental Health Trust Authority
(AMHTA) filled several positions on a temporary basis to
help address the backlog. She stated that there was more
progress than the current situation. She anticipated that
the positions would be needed in the short-term, of three
to five years. She furthered that, if there were systems
and simplifications of processes, there would be room for
savings. She did not anticipate that the positions would
only be one or two years.
1:54:47 PM
Representative Pruitt asked how the total numbers would
change in terms of percentages. He wondered if the
department had any openings in the department.
Ms. Pitney answered that the department had openings at
present, with 6 to 7 percent increase. The vacancy rate was
higher than expected. The department needed to hire
vacancies and filling the 41 positions.
Representative Guttenberg thought it was great that the
department was getting back to adequate numbers He asked
if the department was doing anything else to ensure they
stay a long time.
Ms. Pitney did not have specifics on the particular
department.
Representative Tilton asked about the considerations taken
up in the subcommittee process.
Ms. Pitney replied that any additions in the budget were
scrutinized at a tedious level. She stressed that there had
been several reviews of the department.
2:00:54 PM
Vice-Chair Gara stated that the department wanted
additional positions. He stated that the department had
lower paying employees work overtime, which led to a 40
percent burnout rate within the first year.
Mr. Steininger continued:
Line 16:
Alaska Geospatial Council
The Alaska Geospatial Council has been funded by a
capital project that will exhaust all funds by March
2019. This allows the council and its services to
continue through the end of FY2019.
Ms. Pitney added that the last capital project started at
the end of 2015. She explained that the council began in
the early 2000s to bring the department mapping resources,
needs, and priorities under one statewide umbrella. She
stated that the request put it through the next year, with
anticipation that it would continue.
Representative Guttenberg queried the purpose.
Ms. Pitney answered that there were 3 to 4 main costs. She
explained that there was a contract with a mapping provider
that leverages money from the federal government. She
stated that it was about $400 thousand spent on an annual
basis
Mr. Steininger relayed that the total of operating
amendments was $2.652 million in UGF; $2.334 million in
federal funds; and $250,000 in DGF.
2:05:54 PM
Mr. Steininger continued with the amendments:
Line 19:
FY2019 Transfer Balance of the Mining Loan Fund No new
loans have been made from the mining loan fund since
1986 and no appropriations have been made from the
fund since FY2004. As such, the balance of this fund
is available to be transferred to the general fund.
Line 20:
FY2019 Transfer Balance of the Alternative Energy
Conservation Revolving Loan Fund No new loans are
being made from the alternative energy conservation
revolving loan fund and no appropriations have been
made from the fund since FY2004. As such, the balance
of this fund is available to be transferred to the
general fund.
Line 21:
FY2019 Transfer Balance of the Investment Loss Trust
Fund (Shows as Revenue) The balance of the investment
loss trust fund (AS 27.09.010) as of June 30, 2019,
estimated to be $2,298,862, is appropriated to the
general fund.
Line 22:
FY2019 Transfer Investment Earnings on Bond Proceeds
of the Northern Tobacco Securitization Corp (Shows as
Revenue) The amount of investment earnings on the bond
proceeds of the Northern Tobacco Securitization
Corporation as of June 30, 2019, estimated to be
$231,773, is appropriated to the general fund.
Line 23:
FY2019 Transfer Balance of The Municipal Capital
Project Matching Grant Fund (Shows as Revenue) The
balance of the Municipal Capital Project Matching
Grant Fund (AS 37.06.010) as of June 30, 2019,
estimated to be $253,500, is appropriated to the
general fund.
Line 24:
FY2019 Transfer Balance of The Unincorporated
Community Capital Project Matching Grant Fund (Shows
as Revenue) The balance of the Unincorporated
Community Capital Project Matching Grant Fund (AS
37.06.020) as of June 30, 2019, estimated to be
$646,200, is appropriated to the general fund.
Representative Pruitt wondered whether all of the items
were sunsetting.
Ms. Pitney replied that the only program that was not
sunsetting was the Norther Tobacco Securitization; and the
Investment Loss trust fund. She stated that those were
funds that were available to be deposited.;
Representative Pruitt acknowledged the work of
Representative Tilton.
2:09:20 PM
Mr. Steininger continued with the amendments:
Line 28:
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)
serious 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 have been applied for from EPA
through the Targeted Air Shed Program.
Line 29:
Seismic Data Collection
Recent federal government actions opened the 1002 area
of the Arctic National Wildlife Refuge (ANWR) to oil
and gas leasing, exploration and development.
Availability of seismic data will improve interest in
exploring for oil and gas within the 1002 area. This
funding allows the state to work with other interested
parties to provide seismic data which will enhance
state revenue from lease sales and decrease time to
drilling and production.
Line 30:
National Petroleum Reserve - Alaska Impact Grant
Program This request amends the original Governor's
FY2019 capital budget request by adding $10,233,376
for a new requested total of $11,611,722. This change
is due to updated revenue estimates for FY2019, which
results in FY2019 National Petroleum Reserve - Alaska
(NPR-A) recommended awards to communities being higher
than the estimate provided in the original Governor's
FY2019 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.
Line 31:
North Slope Borough - Monitoring Waterfowl in the NPR-
A This request amends the original Governor's FY2019
capital budget request by adding allocation level
funding of $337,550.00. This change is due to the
timing of approval of individual National Petroleum
Reserve Alaska grants. This project provides support
to the North Slope Borough Department of Wildlife
Management to monitor population trends in waterfowl
that will build upon a study that has been ongoing for
over fifteen years. This grant will fund labor, fringe
benefits, contractual, materials, supplies, freight,
travel, and 25% administration.
Line 32:
North Slope Borough - Area-Wide Air Quality Study This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$1,187,500. This change is due to the timing of
approval of individual National Petroleum Reserve
Alaska grants. The purpose of this project is to
collect base line data on air quality in areas that
are currently not developed by oil and gas industry.
This grant will fund labor, fringe benefits,
contractual, material, supplies, travel, and 25%
administration.
Line 33:
North Slope Borough - Monitoring Nearshore Fish and
their Habitats in the NPRA This request amends the
original Governor's FY2019 capital budget request by
adding allocation level funding of $562,500. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project provides support to the North Slope Borough
Department of Wildlife Management (DWM) to conduct
studies on the abundance and health of nearshore
fisheries in the NPR-A region. DWM will work with
local subsistence fisherman and collect samples across
lagoon and nearshore subsistence waters to assess the
abundance and distribution of fishes and characterize
their biological and physical habitat.
Line 34:
City of Nuiqsut - Youth Center Operations and
Maintenance This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $267,826. This change is
due to the timing of approval of individual National
Petroleum Reserve Alaska grants. This project is to
continue operations and maintenance of the youth
center. Grant funds are requested for labor, fringe
benefits, supplies, freight, maintenance, repairs,
fuel oil, communications, utilities, cultural camps,
and special events.
Line 35:
City of Nuiqsut - Local Government Operations and
Maintenance This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $949,203. This change is
due to the timing of approval of individual National
Petroleum Reserve Alaska grants. This project will
provide continued funding for local government
operations and maintenance for the city of Nuiqsut.
Grant funds are requested for labor, fringe benefits,
office equipment purchase, materials, supplies,
travel, maintenance, communications, utilities, fuel
oil, and insurance.
Line 36:
City of Wainwright - Youth Program This request amends
the original Governor's FY2019 capital budget request
by adding allocation level funding of $289,272. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project will continue the Youth Program established in
2005, which provides a safe and drug-free environment
with adult supervision for youth ages 6-18 years old.
Grant funds will be used for labor, fringe benefits,
insurance, contractual services, recreational
materials, supplies, utilities, communication, and
building maintenance and repairs.
Line 37:
City of Wainwright - Local Government Operations This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$499,251. This change is due to the timing of approval
of individual National Petroleum Reserve Alaska
grants. This project is to provide continued
operations and maintenance necessary to successfully
operate the local government of Wainwright. Grant
funds will go towards labor, fringe benefits,
insurance, contractual services, communications,
utilities, travel, materials, supplies, and
maintenance and repairs.
Line 38:
North Slope Borough - Monitoring Fish in the Colville
River for Presence of Water Mold (Saprolegnia) This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$187,500. This change is due to the timing of approval
of individual National Petroleum Reserve Alaska
grants. This project will monitor broad whitefish,
especially for presence of mold, on the Colville River
by recording catch from subsistence caught specimens
and deploy real-time data loggers to monitor
temperature on the river in six locations from break-
up to October. Grant funds will pay for labor, fringe
benefits, contractual services, materials, supplies,
freight, travel, and 25% administration.
Line 39:
City of Atqasuk - Local Government Operations and
Youth Program This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $393,061. 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 Atqasuk and provide continued services to
residents, including the Youth Program. Grant funds
will pay for labor, fringe benefits, insurance,
professional services, travel, utilities,
communications, maintenance and repairs, materials,
and supplies.
Line 40:
City of Nuiqsut - Kisik Center Maintenance Project
This request amends the original Governor's FY2019
capital budget request by adding allocation level
funding of $192,035. This change is due to the timing
of approval of individual National Petroleum Reserve
Alaska grants. This project will repair the Kisik
Community Center HVAC system, as well as fund general
maintenance to the facility such as electrical,
plumbing, and mechanical. Grant funds will be used for
contractual services and building materials.
Line 41:
City of Anaktuvuk Pass - Local Operations and
Community Center Upgrades This request amends the
original Governor's FY2019 capital budget request by
adding allocation level funding of $571,535.44. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project is to support the general operations and
renovation activities of the city of Anaktuvuk Pass,
enabling the city to continue to build capacity for
effective and efficient local government operations
during a period of increased NPR-A related oil and gas
development.
Line 42:
North Slope Borough - Community Winter Access Trails
(CWAT) This request amends the original Governor's
FY2019 capital budget request by adding allocation
level funding of $3,576,798. This change is due to the
timing of approval of individual National Petroleum
Reserve Alaska grants. This project is to establish
the North Slope Borough Winter Access Trails, develop
permits, agreements, protocol with regulatory agencies
and industrial users that will allow for local
community use. Grants funds are requested for
contractual services, equipment purchase, materials,
supplies, freight, travel, contingency and 25%
administration.
Line 43:
City of Utqiagvik - Repair of the City of Utqiagvik's
Shop Subfloor and BCI Support This request amends the
original Governor's FY2019 capital budget request by
adding allocation level funding of $160,000. This
change is due to the timing of approval of individual
National Petroleum Reserve Alaska grants. This
project is to replace the old shop floor by installing
BCI support and all new subfloors at the city's
maintenance shop. Grant funds are requested for
contractual services, materials, supplies, and
freight.
Line 44:
City of Utqiagvik - Local Government Operations This
request amends the original Governor's FY2019 capital
budget request by adding allocation level funding of
$1,890,000. This change is due to the timing of
approval of individual National Petroleum Reserve
Alaska grants. This project is to continue operations
including city council, administration cost,
maintenance department, business licensing, Department
of Motor Vehicles, taxicab regulation services,
alcohol registration services, concessions,
scholarship expenses, and recreational activities.
Line 45:
City of Utqiagvik - Purchase of New John Deere Loader
This request amends the original Governor's FY2019
capital budget request by adding allocation level
funding of $400,000. This change is due to the timing
of approval of individual National Petroleum Reserve
Alaska grants. This project will be used to purchase a
loader. Grant funds are requested for equipment
purchase and freight.
Line 46:
City of Utqiagvik - Purchase of New Tent for Existing
Hockey Facility This request amends the original
Governor's FY2019 capital budget request by adding
allocation level funding of $147,690. This change is
due to the timing of approval of individual National
Petroleum Reserve Alaska grants. This project is to
purchase a tent cover for the hockey and curling
facility. Grant funds are requested for material,
supplies, and freight.
2:11:42 PM
Representative Wilson asked about line 28. She wondered
whether the $4 million would allow the borough to look for
the grant, or whether there was another grant for the
changeout program of $4 million awaiting an appropriation.
Ms. Pitney responded that it was not in hand but was
eminent.
Representative Wilson asked whether it had the same
restrictions.
Ms. Pitney agreed to provide that information.
Co-Chair Seaton asked that
HB 284 was HEARD and HELD in committee for further
consideration.
HB 285 was HEARD and HELD in committee for further
consideration.
HB 286 was HEARD and HELD in committee for further
consideration.
HB 321 was HEARD and HELD in committee for further
consideration.
2:13:44 PM
AT EASE
2:14:18 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| DHSS Review WDR-HB176-2-6-18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| HB176 Sponsor Statement 2.13.18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| HB176 Additional Documents - HB 176 GEMT Summary 2.13.18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| HB176 Supporting Documents - LTRs of Support 2.13.18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 176 |
| Combined_Budget_Amendments_Detail_Backup_2-13-18.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 284 HB 286 |
| HB 286 HB 284 FY2019 Combined Amendment Summary and Detail.pdf |
HFIN 2/16/2018 1:30:00 PM |
|
| HB 286 HB 284 FY2018_Supplemental_Summary_Feb_13.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 284 HB 286 |
| HB 286 HB 284 FY2019_Amendment_Summary_Feb_13.pdf |
HFIN 2/16/2018 1:30:00 PM |
HB 284 HB 286 |