Legislature(2011 - 2012)HOUSE FINANCE 519
03/02/2012 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB307 | |
| HJR4 | |
| HB78 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HJR 4 | TELECONFERENCED | |
| += | HB 78 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 307 | TELECONFERENCED | |
HOUSE BILL NO. 307
"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."
1:37:51 PM
Co-Chair Stoltze MOVED to ADOPT a proposed committee
substitute for HB 307, Work Draft 27-GH2601\B (Martin,
3/1/12). There being NO OBJECTION, it was so ordered.
PETE ECKLUND, STAFF, REPRESENTATIVE BILL THOMAS pointed to
a ten page document prepared by the Office of Management
and Budget (OMB): "FY12 Supplemental Schedule" (copy on
file). He addressed the operating portion and language
section initially. The following items changed: item 2
included a $50 thousand reduction from the initial $1
million request for the Public Defender Agency.
1:40:50 PM
Mr. Ecklund explained that the four co-chairs from both the
House and Senate Finance Committees worked together to
create the committee substitute. He explained that reduced
or removed items may be funded later in the session using
another vehicle. He stressed that those items that were
removed or reduced might come up again in a later
supplemental request.
Representative Doogan clarified that item 2 remained in HB
307, but was reduced by $50 million.
Mr. Ecklund responded in the affirmative. Item 4 was
reduced by $100 thousand of authority. He mentioned a note
from the Legislative Finance Division (LFD) questioning
whether the full request could be expended in the remainder
of the FY 12 fiscal year, which prompted the reduction.
Item 6, a request for $3,439,800 in general fund receipts
to the Department of Commerce, Community and Economic
Development (DCCED) was removed. Item 7 included a request
for $250 thousand for receipt supported services, which was
granted, but the funding sources were changed. The sources
were split and $210 thousand remained as Receipt Supported
Services (RSS) and $40 thousand consisted of general funds
from corporate business licensing receipts. Item 10
included a request from Department of Education and Early
Development (DEED) for $1 million, and the item was removed
pending further discussions with the subcommittee chair and
LFD.
1:43:41 PM
Mr. Ecklund continued with items 15 and 16, which had been
funded with alternate funding sources and were moved to the
language section of HB 307. Item 22 on page 3 for $250
thousand to replace unrealized program receipts at Alaska
Vocational Technical Center (AVTEC) was removed. Item 24
included $600,000 for fast ferry litigation. The item was
approved and moved to the language section of the bill and
became a multi-year appropriation encompassing FY 12 and FY
13. Item 25 was approved, but $300,000 was relocated to the
language section and funding was divided into multiple year
increments, again for FY 12 and FY 13. He moved to page 9
of the spreadsheet. Item 78 included a request by
Department of Corrections (DOC) for reappropriation of $100
thousand for the Highland Mountain Center Land Transfer.
The item was removed for further investigation to determine
whether DOC was the correct department to receive the
funds. He pointed to item 80, with a total request of
$20,770,800. He noted that $20 million was removed from
item 80, an optional retirement program for the university.
He stated that the funding was removed to allow for
discussions about alternative funding sources.
1:46:34 PM
Representative Guttenberg asked whether the university
settlement had been finalized.
Mr. Ecklund responded in the affirmative. He elaborated
that the item might be approved in the near future. He
moved on to item 89 on page 10 of the spreadsheet. He
pointed out that a provision existed in the original bill
stating that additional unspent funding was swept into the
budget reserve fund in FY 12. The provision was removed
from the bill, but would be considered in other
appropriation bills. The effective date of the bill changed
to March 15.
JOAN BROWN, STAFF, REPRESENTATIVE BILL THOMAS, discussed
that some "negative" supplemental items were added to the
language section of the bill totaling $715 thousand. The
reason for the negative items was to address funds given to
the agencies for FY12 for new positions. She stated that
DCCED had $84,100 in economic development. The Department
of Health and Social Services (DHSS) lost $200 thousand in
front-line social workers and $250 thousand in nursing for
positions remaining vacant. She noted Department of Law
(DOL) lost $21,100 for vacancy in criminal appeal special
litigation and $53,800 for a new child protection attorney
and paralegal. She mentioned the $96,200 vacancy related to
a fiscal note for SB 58, which passed the prior year. She
noted that the Department of Military and Veterans Affairs
(DMVA), $10 thousand was removed from the legislation in
the army guard maintenance component.
1:49:26 PM
Ms. Brown pointed to other changes in the legislation. The
governor's original supplemental bill included a request
for $2,620,300 to fully fund the Low Income Home Energy
Assistance Program (LIHEAP) appropriations. The request
included two contingency appropriations for FY 12 totaling
$8 million. The contingency language was deemed
ineffective. The supplemental bill repealed the contingency
appropriations and instead appropriated a flat $8.5 million
reducing the supplemental budget by $2 million. The amount
fully funded the department's expected energy assisted
heating costs. She pointed to the disaster relief fund
located in the fund capitalization (Section 14), which
increased from $3 million to $5 million in conjunction with
the governor's amendment received on March 1, 2012. She
pointed out a new repeals section in Section 16, which
included an unworkable LIHEAP contingency appropriation.
The lapse and retroactivity were adjusted accordingly.
Mr. Ecklund explained that the changes discussed were found
in the operating and language sections of the bill. He
pointed out that James Armstrong would detail the capital
portions of the bill.
JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL STOLTZE,
pointed to pages 7 and 8 of the OMB supplemental
spreadsheet. Projects 55 through 72 were removed from the
bill and would probably be included in the capital budget.
He pointed to page 10 of HB 307, which included capital
budget items. Items 12 through 18 addressed a grant to
Anchorage to replace a fire and rescue station. He
continued that items 16 through 18 included emergency
repairs to the Cordova hospital. He mentioned that lines 28
through 30 were included in the governor's capital budget
for FY 13. He explained that his office received an
amendment from OMB to accelerate the item.
1:53:38 PM
Representative Gara asked about items that had not been
adjusted. He pointed to page 4, item 33 of the spreadsheet.
He surmised that the funds had been received from the Red
Dog Mine and would be spent on the Red Dog Mine.
Mr. Ecklund responded in the affirmative. He stated that
the funds were supplied by an outside entity to the state
for a specific purpose.
Representative Gara directed attention to page 3, line 23.
He expressed that he felt like the item would never end. He
noted that it was less expensive to hire in-house employees
to do the work that had been done by outside attorneys. He
expressed concern about the hourly rates of the attorneys.
Co-Chair Thomas heard the argument every year. He explained
that the Department of Law (DOL) lost employees and needed
to contract the prior employees with expertise on a
subject. He believed that the labor was contracted only
under limited and special cases.
Representative Gara contended that a new attorney could
integrate the department's knowledge without trouble. He
believed that a new attorney could be trained to continue
litigation.
1:57:14 PM
Mr. Armstrong added that backup for the four sections he
had discussed were included in members' packets.
REPRESENTATIVE BOB HERRON, informed the committee about a
disaster over the winter break regarding the water/sewer
line in Bethel that occurred due to winter weather. He
explained that the cause of the disaster was the winter
weather. He explained that the children did not return to
school until mid-January. He appealed to the governor and
the co-chairs of the finance committees to move the item
into the capital budget.
REPRESENTATIVE DAN SADDLER, explained that excessive winter
snow had caused damage to the roof of the fire station,
high density housing, and schools in the Eagle River area.
He asked for committee consideration of the capital budget
request, which was crucial to his community.
Co-Chair Thomas stressed the immediate need for attention
to the projects discussed by Representatives Herron and
Saddler.
Co-Chair Stoltze remarked on the intentional nature of the
decision to include the emergency nature items. Non-
emergency items were moved to the FY 13 capital budget.
Co-Chair Thomas explained that the communities should not
wait for the funding for emergency items.
2:01:32 PM
Co-Chair Thomas CLOSED public testimony.
Co-Chair Thomas asked whether there were any amendments.
Co-Chair Stoltze MOVED to report CSHB 307(FIN) out of
committee with individual recommendations.
Representative Gara OBJECTED for purpose of discussion. He
pointed to page 1, line 2 of the bill. He discussed the
Office of Public Advocacy and would like to see funding
restored for the $50 thousand requested in item 2.
Co-Chair Thomas explained that funding had been requested.
He detailed that the Office of Public Advocacy was fully
funded and that the new position was filled.
Representative Gara WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
CSHB 307(FIN) was REPORTED out of committee with a "do
pass" recommendation and with no fiscal notes.
2:04:43 PM
AT EASE
2:23:03 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| Support Letter HJR4.doc |
HFIN 3/2/2012 1:30:00 PM |
HJR 4 |
| CS HJR4 WORKDRAFT FIN 27-LS0197-T-3.1.12.pdf |
HFIN 3/2/2012 1:30:00 PM |
HJR 4 |
| HJR004CS(TRA)-NEW FN-DOR-TRS-02-28-12.pdf |
HFIN 3/2/2012 1:30:00 PM |
HJR 4 |
| HB307 CS WORKDRAFT B version SUPPLEMENTAL.pdf |
HFIN 3/2/2012 1:30:00 PM |
HB 307 |
| HB307 Repot 3.2.12 Statewide Totals.pdf |
HFIN 3/2/2012 1:30:00 PM |
HB 307 |
| HB 307 SUPPLEMENTAL CS Backup.pdf |
HFIN 3/2/2012 1:30:00 PM |
HB 307 |
| Supplemental_Spreadsheet_1-31-12.pdf |
HFIN 3/2/2012 1:30:00 PM |
HB 307 |
| HB78 CS WORKDRAFT 27-LS0147-O.pdf |
HFIN 3/2/2012 1:30:00 PM |
HB 78 |