Legislature(2013 - 2014)HOUSE FINANCE 519
02/06/2014 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB299 | |
| Fy 14 Supplemental Budget Overview: Office of Management and Budget | |
| HB266 || HB267 | |
| Fy15 Budget Overview: Department of Law | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 266 | TELECONFERENCED | |
| += | HB 267 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 299
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; repealing appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
1:35:28 PM
^FY 14 SUPPLEMENTAL BUDGET OVERVIEW: OFFICE OF MANAGEMENT
AND BUDGET
1:35:37 PM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, presented an overview of the
supplemental bill. She spoke to 2 supporting documents: the
FY15 supplemental spreadsheet and the FY15 supplemental
summary (copy on file). She shared that the supplemental
bill totaled $53,370,100; less than $1 million was specific
to agency operations $8 million was specifically related to
fire suppression activities and disaster relief funding, $2
million was for settlements and judgments, and $2.4 million
was for emergency repairs that had not been eligible for
disaster funding.
1:37:28 PM
Ms. Rehfeld spoke to Page 1, line 2 of the spreadsheet:
Department of Administration
Office of Public Advocacy
Caseload Capacity and Appellant Backlog
Funding to accommodate case load increases and address
the appellant backlog. The impact of this supplemental
is being considered for a FY2015 budget amendment.
General Fund
$193.0
Ms. Rhefeld continued to Line 3:
Department of Administration
Public Defender Agency
Caseload Capacity and Appellant Backlog
Funding to address case load increases and the
appellant backlog. The impact of this supplemental is
being considered for a FY2015 budget amendment.
General Fund
$650.0
1:38:48 PM
Ms. Rehfeld spoke to Line 4:
Department of Military and Veterans Affairs
Alaska Military Youth Academy
Replace Unavailable Receipt Authority for
Alaska State Employees Association One- Time Payment
The Alaska Military Youth Academy (AMYA) does not
receive nor is able to request federal or interagency
receipts from the U.S. Department of Defense ChalleNGe
grant or through the Alaska Department of Education
and Early Development formula funding. The one-time
$755 lump sum payment was made to General Government
Unit employees in the second pay period of August
2013. This is a one-time request.
General Fund
48.0
Interagency
Receipts
(24.9)
Federal Receipts
(23.1)
1:39:21 PM
Ms. Rehfeld continued to Slide 5:
Department of Natural Resources
Fire Suppression Activity
FY2014 Fire Activity
This request provides general funds for expenditures
incurred under the Declaration of Disaster Emergency
process for the fall 2013 fire season. Additional
authorization for this purpose is requested each year
due to the unpredictable cost of each fire season.
General Fund
$22,769.4
1:40:14 PM
Ms. Rehfeld spoke to lines6, 7, and 8:
Department of Revenue
Treasury Division
Investment Management of Public School Trust Fund
Investment management fees are charged as a percent of
the market value of invested assets under management.
Market fluctuations affect the value of the assets and
therefore the amount of the management fees. This
amount covers the costs for the remainder of FY2014.
This is a one-time request.
Public School Trust Fund
$19.0
Department of Revenue
Treasury Division
Investment Management of Retiree Health
Insurance Fund/Long Term Care Management
Investment management fees are charged as a percent of
the market value of invested assets under management.
Market fluctuations affect the value of the assets and
therefore the amount of the management fees. This
amount covers the costs for the remainder of FY2014.
This is a one-time request.
Retiree Health Insurance Fund/Long Term Care
$7.0
Department of Revenue
Treasury Division
Investment Management of Power Cost Equalization
Endowment Fund
Investment management fees are charged as a percent of
the market value of invested assets under management.
Market fluctuations affect the value of the assets and
therefore the amount of the management fees. This
amount covers the costs for the remainder of FY2014.
This is a one-time request.
Endowment Fund
$16.0
Ms. Rehfeld spoke to capital supplemental items. She began
with Page 2, line 11:
Department of Commerce, Community, and Economic
Development
Capital
Inter-Island Ferry Authority
This funding is designed to assist the Inter-Island
Ferry Authority in providing daily service between
Ketchikan and the Prince of Whales Island given
current revenue and expenditures. These funds are not
intended to be provided annually but considered as
needed to continue this vital service.
General Fund
$500.0
1:41:51 PM
Ms. Rehfeld continued to Line 12:
Department of Transportation and Public Facilities
Capital
Northern Region Emergency Flooding Disaster May 2013
Repair damaged areas, due to flooding and ice jams,
which resulted in substantial damage to public
infrastructure. These projects are not eligible for
reimbursement from the Federal Highway Administration
or the Federal Emergency Management Agency.
General Fund
$2,408.1
Ms. Rehfeld discussed the language section beginning on
Line 16:
Department of Environmental Conservation
Capital
Reappropriate balances from several smaller
municipalities' water and sewer projects that have
been completed under budget, stalled, or canceled. The
unexpended and unobligated balances, estimated to be a
total of $3,358,421, of the following appropriations,
are reappropriated to the Department of Environmental
Conservation for Village Safe Water and Wastewater
Infrastructure Projects and Technical Assistance,
First Time Service Projects.
Federal Receipts
2,517.7
General Fund Match
200.0
Alaska Housing Finance Corporation Receipts
640.7
Ms. Rehfeld spoke to Line 17:
Department of Environmental Conservation
Capital
Scope Change: Sec1 Ch17 SLA2012 P114 L5 Haines -
Barnett and Tower Road Water Tank Replacement and
Infrastructure Improvements
This will allow roof replacement at the Tower Road
tank using excess funds appropriated for the Barnett
tank replacement which is anticipated to be completed
under budget.
General Fund
Ms. Rehfeld continued to Line 18:
Department of Health and Social Services
Capital
Reappn: Sec13 Ch29 SLA2008 P149 L14
Reappropriation for Eligibility Information System
Replacement
This will further the development of the replacement
of the eligibility system for the State's welfare
programs. The unexpended and unobligated balance,
estimated to be $81,232, of the appropriation made in
sec. 13, ch. 29, SLA 2008, page 149, lines 14 - 17
(Department of Health and Social Services, Evaluate
Eligibility Information System
Alternatives, Phase 2 - $864,300), is reappropriated
to the Department of Health and Social Services for
eligibility information system replacement.
Federal Receipts
66.4
General Fund
14.8
1:44:06 PM
Ms. Rehfeld continued to Lines 19 and 20:
Department of Law
Deputy Attorney General's Office
Judgments and Settlements
Actual judgment and settlement costs received as of
February 3, 2014.
General Fund
$1,570.2
Department of Law
Deputy Attorney General's Office
Judgments and Settlements
Actual judgment and settlement costs incurred in the
fiscal year ending June 30, 2014 but not yet included
in the previous subsection.
General Fund
1:44:55 PM
Ms. Rehfeld directed committee attention to Page 4, lines
21 through 24:
Department of Military and Veterans Affairs
Capital
Reappn: Sec1 Ch16 SLA2013 P70 L9
Reappropriation for Alcantra Facilities Projects
This Army Guard Facilities Projects allocation will
provide needed capital improvement projects at the
Alcantra Armory. The original project will be
completed using U.S. Army active duty resources that
do not flow through the state budget.
The unexpended and unobligated balance of the
appropriation made in sec. 1, ch. 16, SLA 2013, page
69, lines 23 - 24 (Army Guard Facilities Projects -
$5,589,000), and allocated on page 70, lines 9 - 10
(Fort Greely - Covered Shelter Buildings - $350,000),
estimated to be $350,000, is reappropriated to the
Department of Military and Veterans' Affairs, Army
Guard Facilities Projects, and allocated for Alcantra
Facilities Projects.
General Fund
Department of Military and Veterans Affairs
Capital
Reappn: Sec7 Ch17 SLA2012 P166 L28
Reappropriation for Eielson Covered Storage
A reappropriation of the original appropriation will
provide needed protection of assets for the 168th Wing
at Eielson Air Force Base. The original purpose of the
appropriation is no longer necessary because The
STARBASE program has been discontinued.
The unexpended and unobligated balance of the
appropriation made in sec. 7, ch. 17, SLA 2012, page
166, lines 28 - 30 (Move and Renovate STARBASE
Building - $195,000), estimated to be $195,000, is
reappropriated to the Department of Military and
Veterans' Affairs for covered storage for the 168th
Wing at Eielson Air Force Base.
General Fund
Department of Military and Veterans Affairs
Office of the Commissioner
Arbitration Settlement - ASEA v. SOA, DMVA, AMYA
The sum of $111,328 is appropriated from the general
fund to the Department of Military of Veterans'
Affairs, Office of the Commissioner, for the purpose
of paying judgments and settlements for the fiscal
year ending June 30, 2014.
General Fund
$111.3
Ms. Rehfeld spoke to Page 5, line 24:
Department of Natural Resources
Fire Suppression Activity
FY2014 Projected Spring Costs for Wildland Fire
Protection
Additional authorization for this purpose is requested
each year due to the unpredictable cost of each fire
season. It is difficult to predict the amount
necessary for spring 2014 fire suppression activity.
The estimate of $5.0 million will be adjusted based on
costs incurred through June 30, 2014.
General Fund
$5,000.0
1:46:26 PM
Ms. Rehfeld continued to Line 25:
Department of Transportation and Public Facilities
Central Design and Engineering Services
Settlement and Legal Fees Related to Old Quinhagak
Airport Litigation
In November 2013 (FY2014), a legal settlement of
$100.0 was negotiated. Associated legal fees amount to
$64.6 for a total cost of $164.6 related to the Old
Quinhagak Airport litigation. The sum of $164,617 is
appropriated from the general fund to the Department
of Transportation and Public Facilities, office of the
commissioner, for the purpose of paying costs
associated with Old Quinhagak Airport litigation for
the fiscal year ending June 30, 2014.
General Fund
$164.6
Ms. Rehfeld related the request on Line 26:
Office of the Governor
Fuel Branch-wide Unallocated
Amend: Sec22(e)(2) Ch14 SLA2013 P75 L29
Amend Fuel Allocation Percentage
This will increase the University of Alaska's fuel
trigger cap of 10% of the total appropriated plus or
minus three percent to 15% of the total plus or minus
three percent to cover an anticipated $1.6 million
shortfall for fuel and utility costs. The governor
shall allocate amounts appropriated in (a) and (b) of
this section as follows:
(2) to the University of Alaska, 15 [10] percent of
the total plus or minus three percent.
1:48:24 PM
Ms. Rehfeld stated that Lines 27 and 28 related to debt
service:
Debt Service
General Obligation
Amend Sec25(h) Ch14 SLA2013 P81 L31 through P82 L22
Fund Source Change for Series 2010AB
Federal reimbursement for eligible state bonds has
been reduced by 8.7% in FY2014. General obligation
bonds series 2010A and 2010B federal reimbursements
were reduced by a total of $414,540.
General Fund 414.6
Federal ARRA
Debt Service
General Obligation
Amend Sec25(h) Ch14 SLA2013 P81 L31through P82 L22
Series 2013 Federal Reimbursement Eligibility
General obligation bond series 2013A is eligible for
federal reimbursement, but this funding source was not
included in the FY2014 operating budget.
General Fund
(430.1)
Federal ARRA
430.1
1:49:07 PM
Ms. Rehfeld spoke to Lines 29 and 30:
Debt Service
International Airport Revenue Bonds
Repeal and reenact Sec25(i) Ch14 SLA2013
P83 L4
Debt Service Fund Source Changes
This changes fund sources relating to FY2014
International Airport debt service in order to
increase the amount of Passenger Facility Charges
(PFC) currently approved, and to change the federal
subsidy funding code from federal receipts (1002) to
federal stimulus:
ARRA 2009 (1212).
As with previous supplemental requests in years' past,
this request utilizes amounts deemed by AIAS as
surplus and available in order to help minimize the
amount of revenue needed to be collected from airport
customers while meeting debt service coverage ratios
required under the bond resolution rate covenant.
International Airports Revenue Fund
(1,962.6)
Passenger Facility Charges
2,000.0
Federal Receipts
(429.8)
Federaln ARRA
392.4
Debt Service
International Airport Revenue Bonds
Amend Sec25(m) Ch14 SLA 2013 P83 L3
Early Redemption Fund Source Change
In review of 2014 activity for its Optional Bond
Redemption plan which was initiated in 2010, the
Alaska International Airports System (AIAS) determined
the use of International Airports Revenue Fund as the
funding source for the full amount of FY2014
redemptions provided more optimal benefit in context
of updated capital improvement program needs and debt
management than does the partial funding from the AIAS
Construction Fund.
International Airports Revenue Fund
23,000.0
International Airports Construction Fund
(23,000.0)
1:49:35 PM
Ms. Rehfeld continued to Line 31:
Fund Capitalization
Disaster Relief Fund
Recovery Efforts from the 2013 Spring Flood Disaster
The sum of $19,961,480 is appropriated from the
general fund to the disaster relief fund (AS
26.23.300(a)).
General Fund
$19,961.5
1:50:07 PM
Ms. Rehfeld turned to Page 7, line 32:
Fund Capitalization
Disaster Relief Fund
Potential Disaster Relief Efforts
This language provides authorization for actual
disaster relief costs incurred in the fiscal year
ending June 30, 2014 but not included in sec14(a) of
the Governor's supplemental bill. The amount
necessary, after application of the amount
appropriated in (a) of this section, to pay for
disaster activities is appropriated from the general
fund to the disaster relief fund (AS 26.23.300(a)),
subject to AS 26.23.020 and 26.23.025, for the fiscal
year ending June 30, 2014.
General Fund
Ms. Rehfeld stated that Line 33 began the list of
ratifications, which were listed at the end of the summary
Lines 41 through 52. She said that the ratifications were
for terminated appropriations, for prior year over
expenditures, where federal funds were unrealizable or a
cost was disallowed; the allowance of the ratification
would allow for the zero balancing of the appropriations.
She shared that the description of the ratification would
indicate the fiscal year the appropriation came from.
1:51:59 PM
Ms. Rehfeld backtracked to Lines 34 through 36:
Lapse of Appropriations
The appropriations made by secs. 6, 7, 9(a) and 9(b)
of this Act are for capital projects and lapse under
AS 37.25.020.
Lapse of Appropriations
The appropriations made by sec. 14 of this Act are for
the capitalization of a fund and do not lapse.
Effective Date
This Act takes effect April 20, 2014.
1:52:45 PM
Representative Wilson asked about a major fire in Fairbanks
in 2014 that was caused by another entity. She wondered
whether the state was recouping the costs of the fire from
the responsible party. Ms. Rehfeld replied in the
affirmative. She added that the majority of the fire had
been on federal land and the costs were being recouped from
the federal government.
1:53:19 PM
Representative Wilson asked about the private land. Ms.
Rehfeld reiterated that funds were being recouped from the
federal government.
1:53:32 PM
Co-Chair Stoltze spoke to fire concerns in his area. He
asked whether discussions had occurred with the Department
of Natural Resources (DNR) concerning possible fire issues.
Ms. Rhefeld said yes. She furthered that DNR could speak to
their concerns and their game plan to mitigate risk and
train local crews.
1:55:12 PM
Co-Chair Austerman understood that the item on Line 11 had
been in the FY14 and FY15 budget requests. Ms. Rehfeld
responded in the affirmative; it had not been the intent to
make the request an annual operating expanse to the state,
but it had been recognized that the ferry provided a vital
service to Prince of Whales Island. She said that if the
authority could not provide the service, the Alaska Marine
Highway System (AMHS) would bear the burden, which would be
costly and complicated. She shared that the authority had
made significant modifications to its operations to be able
to operate without state assistance.
1:56:48 PM
Co-Chair Austerman noted that the request had been turned
down the prior year. He recalled from conversations the
previous year that the authority had been providing 7-day
per week service to Prince of Whales Island from Ketchikan.
He thought that costs could be lowered by reducing service.
He expressed disappointment with seeing the request in the
budget again, particularly since Kodiak received service
twice per week and was happy with the service. He wanted to
see something from the authority that showed they were
controlling costs. Ms. Rehfeld explained that part of the
challenge was stability issues with the AMHS providing
statewide service with an aging fleet. She asserted that
the authority was trying to generate enough revenue with
the one run to keep sailing. She explained that the
administrations concern was the degree that the state,
through AMHS, would need to reinstate any service that the
authority was unable to provide.
2:00:23 PM
Representative Gara spoke to a controversial runway at the
Anchorage airport. He wondered if the state were to ask the
city to pause the project would the state be paid a
dividend or would the airport money stay inside the
airport. Ms. Rehfeld deferred the question to the
Department of Transportation and Public Facilities
(DOT&PF). She understood that the master plan for the
runway had been a required document that updated their
annual plan, whether or not they intended to move forward
with the plan was uncertain.
2:02:30 PM
Representative Gara guessed that the airport was spending
millions of dollars on community meetings and design
discussions. He hoped the governor would look at whether
this was a wise use of money. He queried whether the fund
could be put back into the general fund. Ms. Rehfeld stated
that the funds were a component of the general fund but
were separate. She deferred the question to the department.
2:03:35 PM
Vice-Chair Neuman spoke to Line 12. He question why the
request was being made again. He referred to a previous
conversation with Commissioner Kemp, which had led him to
understand that DOT&PF had the funds for projects already
within its budget. Ms. Rehfeld deferred the question to the
commissioner of DOT&PF.
2:05:47 PM
MARY SIROKY, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES,
indicated that Commissioner Kemp had been speaking to his
operating budget needs, while this request was a capital
budget request for the funding for the actual repairs. She
asserted that the commissioner worked to clear avalanches
and patch pot holes without asking for additional operating
budget supplementals.
2:06:47 PM
Representative Gara reiterated his question about the
redistribution of funds for the airport expansion. Ms.
Siroky replied that the Federal Aviation Administration
required that revenue generated from the airport had to be
spent at the airport.
Representative Gara inquired if the state supported the
airport with any general funds. Ms. Siroky replied no.
Representative Gara inquired whether there was ever a
review by the department to see assess whether funds were
being spent appropriately. Ms. Siroky responded that one of
the highest priorities of the commissioner was to assure
that projects were examined and were shelf ready so that
funding was spent where there was the greatest need.
2:09:56 PM
Co-Chair Austerman understood that the legislature had
given DOT&PF the authority to transfer unused fund from one
project to another without coming before the legislature
for approval.
2:10:17 PM
Representative Gara said that he had heard concerns that
projects were being completed, even though they did not
need to be completed, just to assure that the department
spend the available general fund money. He expressed
concern that the department was spending money "just
because it was there", rather than because it needed to be
spent. Ms. Siroky contended that the department spent its
money as wisely as possible.
2:11:14 PM
Representative Holmes commented that the department had
done a good job reaching out to the community concerning
the potential airport expansion project.
2:12:35 PM
Representative Costello asked about how other states
addressed the need for fire suppression. She wondered if
there was an alternative way the state could accommodate
the fire suppression portion of the budget. Me. Rehfeld
responded that all western states were wresting with the
issue. She said that there were other approaches that could
be considered.
2:14:08 PM
Representative Wilson spoke to the ratifications for the
Department of Labor. She wondered whether only a part of
the request should be honored, leaving the department to
take responsibility for the rest of the mistake.
2:15:00 PM
Ms. Rehfeld stated that the ratification items had already
occurred in the fiscal year reflected in the back up for
each item. She said that there were no additional general
funds being approved for the items.
2:16:02 PM
Representative Wilson asked if the money had been paid, was
it paid by the department or the general fund. Ms. Rehfeld
stated that they were over-expenditures that were unknown
at the time; they were accounting transactions that had
already occurred and needed to be zeroed out in order to
balance the old accounts.
2:17:09 PM
Co-Chair Stoltze related a story that illustrated the point
of ratifications.
Representative Wilson asserted that she was looking for
accountability.
HB 299 was HEARD and HELD in committee for further
consideration.
2:18:35 PM
AT EASE
2:26:09 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| Dept of Law FY 15 Overview House Finance (3).pdf |
HFIN 2/6/2014 1:30:00 PM |
LAW Overview Budget HFIN |