Legislature(2007 - 2008)SENATE FINANCE 532
03/14/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB221 | |
| HB312 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 221 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 310 | TELECONFERENCED | |
| += | HB 312 | TELECONFERENCED | |
| + | SB 209 | TELECONFERENCED | |
| + | SB 243 | TELECONFERENCED | |
| + | SB 254 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 310(FIN) am
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date."
CS FOR HOUSE BILL NO. 312(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."
1:52:35 PM
Senator Huggins reviewed the three subcommittees he
chaired: Department of Education and Early Development,
Department of Military and Veterans Affairs, and Department
of Natural Resources. He noted that the subcommittee
complied with the co-chair's request to follow three
guidelines: no new programs, no overall position growth,
and no backfill of federal funds with general funds. This
resulted in an overall savings of $4.3 million: $1.488
million in the EED; $1.7 million in MVA; and $2.4 million
in DNR.
Department of Education and Early Development
Senator Huggins reviewed the budget actions for the
Department of Education and Early Development.
The Senate Finance Budget Subcommittee for the Department
of Education and Early Development submits an operating
budget to the full Senate Finance Committee for FY 09 as
follows:
Fund Source Sen Sub Gov Amd Adj to Sen Sub
General Funds $935,467.3 -$l,488.1
Federal Funds $214,566.9 0
Other Funds $36,033.4 50.0
Total $1,186,067.6 -$1,438.1
Positions
PFT 328 -1
PPT 14 0
Temp 0 0
Total 342 -1
The Subcommittee held three meetings with the Department
and took the following action:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments, decrements and budget
amendments submitted by the Governor.
Following are the highlights of the budget action:
Highlights:
Adopted
$373.1 GF for Alaska Challenge Youth
Academy (formula funded program)
$750.0 GF for Graduation Qualifying Exam
Contractual Increase
$414.0 GF for Work Ready/College Ready
Initiative
$350.0 GF for Mt. Edgecombe Boarding
School Food Services and Dorm Management
Services Contractual Increase (amended
Gov's original
request of $450.0 GF)
$200.0 GF EED Facilities Rent - New
Archives Lease for Built-to-Suit
Building
(amended Gov's original request of
$250.0 GF)
$432.1 GF for WWAMI Program Expansion
$600.0 GF Head Start - Govs amendment
$300.0 GF for Alaska Longitudinal Data
System (Govs proposed increment was
$610.0 to backfill federal dollars with
general funds,)
TRS corrections from the FY08 conference
committee action $1,007.1 GF
Various transactions for Unrealized Fund
Sources for Salary Adjustments GGU
$357.4 GF
Denied
$235.0 GF School District Improvement
Plan Implementation (potential fiscal
note funding - SB 285)
$500.0 GF Alaska Statewide Mentoring
Program Funded at FY 08 level of $4.5
million
$407.1 GF for Early Learning Programs
Senate Subcommittee Recommended Increments
• Senate Subcommittee recommends an
increase to AMEREF's base budget by
$50.0 for a total budget of $100.0 GF.
(In FY08 this program was funded at
$100.0)
$40.0 GF Match - Alaska State Council
on the Arts-State match to obtain
federal
funds.
$100.0 GF - Education Support Services,
School Finance & Facilities, Charter
School Grant Funds. This appropriation
is for the three smallest Charter
Schools in the State.
Items of Concern
Subcommittee Issues of Concern
a.The House and Senate structure are not the same
for the Head Start/Early Learning Program. The
House renamed the program for Head Start/Early
Learning to Early Learning Coordination.
Language and Wordage
The Subcommittee recommends deleting $2.5 million GF for
the School Performance Incentive Program and
recommends adding $2.5 million GF from the numbers
section to the language section. $2.5 million GF was
requested by the Governor in the FY 09 budget
numbers section with open-ended wordage in the
language section to fund this program.
2. The Subcommittee recommends standard wordage be
added for receipts from the teacher certification
fees for Teaching and Learning Support.
3. The House added intent language for the $600.0 GF
increment for Head Start. This language maintains
that the $600.0 GF funding for Head Start be
distributed as grants to providers who match these
grants dollar for dollar and who will use these
funds to enroll additional children in the program.
The Senate Subcommittee did not adopt the intent
language relating to Head Start.
4. The Subcommittee adopted intent language stating
that $100.0 of the total amount appropriated for
charter schools be divided among the three smallest
charter schools based on the average daily
membership of each school.
1:55:59 PM
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Education and Early Development. There
being NO OBJECTION, it was so ordered.
1:56:25 PM
Senator Huggins reviewed the budget actions for the
Department of Military and Veterans Affairs.
Fund Source Sen. Sub Gov Amd Adj to Sen Sub
General Funds $11,062.3 -$1,692.5
Federal Funds $21,173.2 0
Other Funds $12,748.9 0
Total $44,984.4 0
The Senate Finance Budget Subcommittee on the Department of
Military and Veterans Affairs met two times and took the
following action from FY 09 adjusted base:
Budget Action
1. Adopted the FY 09 Adjusted Base
2. Moved the National Guard Naval Militia Retirement
System contributions to direct Appropriation to
Retirement. $986.6 GF decrement requested in FY 09 and
a $735.9 decrement in the base budget.
3. Accepted other increments/decrements proposed by
the Governor.
4. Accepted Governor's Amendment to transfer PCN 09-00
12 Engineer/Architect II to Department of
Transportation and Public Facilities. Position will
remain at Ft. Richardson and be paid for by an RSA
from DMVA. The hope is that DOT/PF will be more
successful in filling the position since there is
career path within that department.
The subcommittee adopted these amendments and included them
in the Proposed FY 09 Senate structure.
Subcommittee Increment Accepted
1. Veterans' Services $30.0 GF - Increase grants
for Veterans Outreach Programs/Veterans
Service Organizations.
Language
The committee adopts the following language under
section 14 of the operating bill:
"Five percent of the market value of the average
ending balances in the Alaska veterans' memorial
endowment fund (AS 37.14.700) for the fiscal years
ending June 30, 2006, June 30, 2007, and June 30,
2008, is appropriated from the Alaska veterans'
memorial endowment fund to the Department of Military
and Veterans' Affairs for the purposes specified in AS
37.14.730(b) for the fiscal year ending June 30,
2009."
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Military and Veterans Affairs. There
being NO OBJECTION, it was so ordered.
1:57:16 PM
Senator Huggins reviewed the budget actions for the
Department of Natural Resources:
The Senate Finance Budget Subcommittee for the Department
of Natural Resources submits an operating budget to the
full Senate Finance Committee for FY 09 as follows:
Fund Source Sen Sub Gov Amd Adj to Sen Sub
General Funds 68,778.5 -2,237.5
Federal Funds 15,676.8 17.1
Other Funds 45,443.0 -311.0
Total 129,898.3 -2,531.4
Positions Sen Sub Gov Amd Adj to Sen Sub
PFT 786 -25
PPT 253 6
Temp 75 0
The Subcommittee held five meetings with the Department and
took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed the increments, decrements and budget
amendments proposed by the Governor. All budget
amendments proposed by the Governor were accepted.
Following are the highlights of the budget action:
Highlights Adopted
- $1,318.1 GF for Oil & Gas Development.
- $464.4 GF for Expanded Audit Function passed in
fiscal note for HB 2001.(2 new positions)
- $300.0 Stat Desig for Increased Royalty
Modification Applications.
- $90.0 CIP Rcpts for Alaska Coastal & Ocean
Management- federally funded Capital Projects.
- $200.0 CIP Rcpts for Non Emergency Hazard
Mitigation Projects(USFS).
- $500.0 GF for the North Latitude Plant Material
Center - GF replaces unrealizable Federal Receipts
in order to continue the foundation seed program.
The Senate subcommittee adopted the $500.0 GF as
an IncOTI
- $225.0 GF Gov's amendment for the Certified
Seed Production. Will provide pathogen tested and
certified potato seed.
- $1,684.1 MHTAAR for Mental Health Trust Land
Office Admin Budget.
- $1,037.7 GF Fire Suppression Preparedness
Aviation Contract Cost Increase.
- $50.0 GF for Claims, Permits & Leases - Guide
Services Initiative Phase I (Senate subcommittee
amended the original request of $100.0 GF. - (1
new position)
- $523.0 GF Gov's amendment for the Petroleum
Systems Integrity Office this is in the language
section of the bill funding is through June 20,
2009.
Denied
- $391.7 GF for AGIA implementation support. (3
new positions)
- $216.7 GF for Oil & Gas exempt employees salary
parity with AOGCC staff
- $85.0 GF for Claims, Permits & Leases, for
increased mining activity/coal regulatory
program. (1 position)
- $308.3 GF for Water Development - increased
Mining Activity and workload, (3 positions)
- $95.0 GF for Geological Development Hydrology
Research Program. (1 new position)
- $700.0 GF/CIP Rcpts for Parks Management
Partial implementation of Long Term Strategic
Plan for State Parks, (2 new PFT positions, 4
PPT to PFT)
- $90.0 GF-. Agriculture Development Senate
Subcommittee eliminated 90.0 GF and 1 position.
This funding is equivalent to the property
manager position for Mat Maid properties. The
Mat Maid properties should be sold soon or be
placed under property management under the
state building fund.
Fund Source
The Senate subcommittee denied $250.7 in fund source
changes to general funds due to salary adjustments. $21.2
in general funds was accepted.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Natural Resources. There being NO
OBJECTION, it was so ordered.
2:00:24 PM
Senator Olson presented the Senate Finance Subcommittee
reports for the Department of Health and Social Services
and Department of Transportation and Public Facilities. He
reported that there was $34.8 million in Health and Social
Services, $1.9 million in Public Safety, and $255,000 in
Transportation in General Fund savings below the Governor's
proposed budget. There was a total savings of all funds of
$58 million less than the Governor's proposed budget.
Senator Olson reviewed the Senate Finance Subcommittee
budget actions for Department of Health and Social
Services.
2:03:27 PM
Senator Olson itemized recommendations that were not
funded.
Co-Chair Hoffman said that although General Fund was
reduced, the overall request is an increase from last year.
The Senate Finance Sub-committee for the Department of
Health and Social Services submits an operating budget for
FY 2009 to the full Senate Finance Committee as follows:
Sen Sub Difference
(Includes language) (Gov Amd/Sen Sub)
Gen Funds $903,309.1 $(34,858.4)
Fed Funds 1,006,582.3 (23,901.1)
0th Funds 171,446.7 175.8
Total $2,081,338.1 $(58,529.7)
Position Changes
FT 3,436 (23)
PT 98
NP 136 1
Budget Action
The Senate Finance Sub-Committee budget authorizes
$58,729.7 less in total, $34,858.4 less in General Funds
(GF), than the Governor's Amended Budget Request. The
differences are shown in summary and in detail in the
attached reports.
The Governor's Amended budget request was accepted with
some differences and comments as follows:
Adopted $67,914.9 of GF ($94,525.1 in total funds) for --
to name the biggest items -- Federal Medical Assistance
Percentage (FMAP) rate change from 52.48% to 50.53%,
projected Medicaid formula growth, various provider rate
increases, the State Children's Health Insurance Program
(SCHIP) shortfall, and various Medicaid cost containments.
Reduced funding by $23,000.0 in GF ($46,000.0 in total
funds) for an unallocated reduction to general Medicaid
rebasing.
Adopted $17,962.9 of GF ($158.3 in total funds) due to the
elimination of ProShare financing.
Amended and adopted $1,613.4 of CF/Mental Health ($18,378.0
in total funds) for Mental Health Trust and other non-GF
funding sources.
Adopted $20,345.4 of GF to fund the Senior Benefits Payment
Program.
Adopted $11,656.8 of GF ($12,894.8 of total funding) for
cost increases and program growth in other non-Medicaid
existing programs, which includes additional base grant
funding for core services with an emphasis on substance
abuse treatment, additional statewide community based youth
development programs, and additional community based grants
to invest in home and community based supports for seniors.
Adopted $1,929.0 of GF for increases to the youth
facilities across the state for additional front line
staffing and safety and security.
Added decrements to disband the Office of Faith Based &
Community Initiatives (reduction of $256.3 in GF and 503.0
in federal funds), to reduce the Commissioner's Office by
$100.0 in GF, and to reduce the Public Affairs Office by
$570.8 in GF.
Other changes are shown in the reports included with this.
With so many essential services to our most vulnerable
Alaskans funded by this budget, there were many worthy and
important requests that we were not able to fund. An
example is a request for $13 million of funding to
strengthen and expand the Community Health Centers (CHCs).
Although they are an alternative to more expensive care
provided in hospitals, and have received the highest rating
possible from the federal Office of Management and Budget
for efficiency and quality, unfortunately it was not
possible to include an expansion such as this in this
budget recommendation.
There were some technical changes included to move some
components to different places in the budget. Those are:
"Suicide Prevention Council" is now under the "Behavioral
Health" RDU, "Rate Review" is now under "Health Care
Services" RDU, and "Health Plan and Infrastructure" is now
under "Public Health" RDU. In addition, new components were
added: "Senior Benefits Payment Program" was added to the
"Public Assistance" RDU, "Agency-wide Unallocated
Reduction" was added to "Departmental Support Services"
RDU. Finally, a new RDU and Component were added, both
titled "Community Initiative Matching Grants".
It is also our intention to allow Legislative Finance to do
technical adjustments if any are needed.
Items of Concern
Clearly, the biggest concern for this budget is the size of
the budget itself, and whether continued increases, such as
are included this year, can be sustained and continue to be
added each year. This budget funds some of the most
essential services of state government and not only are the
costs of all the programs escalating, but in addition,
there continues to be growth in the programs as the elderly
population increases, poverty levels increase, and
substance abuse and other behavioral health problems
abound.
Another concern for this budget is the continuing change to
the FMAP rate and other federal programs, which cost tens
of millions each year as federal funds are replaced with
GF.
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Health and Social
Services.
Senator Dyson asked what would not be done because of the
monies not committed to the budget. Co-Chair Hoffman
requested the Senator Olson review increments requested and
items that have been reduced or eliminated.
AT EASE: 2:06:25 PM
RECONVENE: 2:07:28 PM
There being NO further OBJECTION, the Department of Health
and Social Services Subcommittee report was adopted.
Senator Olson reviewed the Senate Finance Subcommittee
budget actions for Department of Public Safety:
Sen Sub
Gen Funds $112,990.2
Fed Funds 11,573.7
0th Funds 23,033.5
Total 147,376.8 Difference $(l,944.4)
Position Changes
FT 833 (13)
PT 17
PPT 12
Budget Action
The Senate Finance Sub-Committee budget authorizes $1,944.4
less in total than the Governor's Amended Budget Request.
The differences are shown in summary and in detail in the
attached reports.
Per your direction, the increased fuel and utility cost,
which would have increased CF by $635.0, were removed from
this budget request, to be dealt with by the full Finance
Committee.
The Governor's Amended budget request was accepted with
some additional differences and comments as follows:
Adopted $150.0 for increased lease costs
Added $1,595.9 to increase VPSO salaries, to add 15
additional VPSOs with 9 months of funding, and to add a
stipend to each community with a VPSO(s)
Adopted $435.5 of PFD Felon Receipts for Council on
Domestic Violence and Sexual Assault, and amended it by
reducing GF by $100.0
Added $220.0 to assist, develop and regulate fire standards
training
Added $200.0 for Victims for Justice
Amended and adopted a reduction of $734.5 to GF for various
funding source changes (Gov Amd request was for a reduction
of $688.7)
Amended and adopted $500.0 for Anchorage prisoner transport
(Gov Amd request was $656.3)
Amended and adopted $227.5 for increased prisoner transport
(Gov Amd request was $455.0)
Amended and adopted $96.1 for enhanced training (Gov Amd
request was $192.3)
Amended and adopted $546.0 for increased vehicle costs (Gov
Amd request was for $1,092.3)
Other changes are shown in the reports included with this.
The Sub-Committee also recommended language and conditional
funding to be included in the "numbers section" of the CS
for the Rural Alcohol Interdiction Team.
Structure Changes
There are some name changes included in this proposal. The
appropriation previously called "Fire Prevention" is now
titled "Fire and Life Safety". Other allocation name
changes are: "Fire Prevention Operations" to "Fire and Life
Safety Operations", "Fire Services Training" to "Education
Bureau", and "Judicial Services Bureau - Anchorage" to
Alaska Bureau of Judicial Services", Finally, a new RDU
and Component were added, both titled "Victims for
Justice".
2:11:08 PM
Items of Concern
Perhaps the biggest concern for this budget is the
continuing problem with vacant VPSO positions. With the
vacancy rate as high as it is and has been, it is difficult
to protect Alaskans and provide public safety in the rural
areas of the state. The increased funding contained in this
proposal is the first of several such increases expected in
this budget over the next few years. One of the items being
funded is a pay increase for the VPSOs. It is hoped that
the rise in salary will have a positive impact on
recruitment and retention efforts. The VPSO Task Force also
recommended including funding for CPI increases annually on
par with increases requested for the Alaska State Troopers,
and adding funding for 15 additional positions over this
and the next 3 years. This proposal is a start toward
strengthening public safety in the rural areas of the
state.
The other concern that remains with this budget is the
possible loss of funding for the Rural Alcohol Interdiction
Team. The Governor's budget included a request for $870.0
of funding contingent on a similar loss of federal funding.
Our recommendation does reduce the federal receipts, but
includes the GF funding for this component and $400.0 that
would go to the Department of Law for program related
attorney services, as contingent language since it is too
early to know whether or not they have a problem. By doing
so, only if the federal funding is not received will the
Department have the GF funding available.
It is also our intention to allow Legislative Finance to do
technical adjustments if any are needed.
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Public Safety.
2:12:12 PM
Senator Dyson appreciated the enhancement to the VPSO
program. The commissioner is working on a program to
implement a certification for troopers. He noted the
support for more troopers. He said he is not willing to
support less for the troopers.
Senator Olson thanked Senator Dyson for his participation
on the VPSO Task Force. Senator Olson provided some
history of the funding for troopers, as compared to VPSOs.
He wanted to clarify comments that it is not a matter of
funding one or the other.
2:16:06 PM
Senator Dyson responded saying it was not his intention to
communicate taking funds from one to the other. He
maintained the state needs the strength of both the
troopers and the VPSOs.
Senator Dyson MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Elton, Huggins, Olson, Hoffman, Stedman
OPPOSED: Dyson
Senator Thomas was absent.
There being NO further OBJECTION, the Subcommittee report
for the Department of Public Safety was adopted.
2:17:28 PM
Senator Olson reviewed the Senate Finance Subcommittee
budget actions for Department of Transportation and Public
Facilities.
The Senate Finance Sub-committee for the Department of
Transportation and Public Facilities submits an operating
budget to the full Senate Finance Committee for FY 09 as
follows:
Gen. Funds $209,291.5 Difference
Fed Funds $4,086.3
Other Funds $291,109.4
Total $504,487.2 $2,304.7
Position Changes
FT 3,187 (4)
PT 445 (1)
PPT 199 (15)
Budget Action
The Senate Finance Sub-Committee budget authorizes $2,304.7
more in total than the Governor's Amended Budget Request.
This increase derives from the partial restoration of ferry
service to southwest communities by the M/V Kennecott. This
service is necessitated by the extended lay up of the MV
Tustumena for major repairs and refitting. $2,297,000 in
general funds and $1,950,000 in Marine Highway Funds were
added as one time items (OTI) for the Kennecott's
operations during the Tustemena's down time.
2:21:08 PM
Per your direction, the increased fuel and utility cost
were removed from this budget request, to be dealt with by
the full Finance Committee.
The other main differences between the Governor's Amended
budget request and that of the sub-committee's proposal are
as follows:
Removed $42.0 GF of training and travel funds from the
Maintenance Management System increment.
Denied the $180.0 GF increment for desk top computer
support in the transportation and security component.
Reduced the GF increment for the Road Weather Info
System by $54.0 down to $200.0.
Denied the $200.0 GF increment for ongoing funding of
the new non-federally funded bridge program while
sustaining the $150.0 OF start up increment for non-
federally funded bridges.
Changed the $70.0 GF increment for a new Weights and
Measures Inspector Trainee position to receipt supported
services (RSS) fund source.
Changed the $15.0 GF increment for the Chena Pump
Campground maintenance in the Northern Region Facilities
component to I/A fund source with the Department of
Natural Resources.
Reduced $280.0 GF for three new maintenance positions in
the Northern Region Facilities component down to $ lOO.0
one position.
Denied $950.0 GF for 15 positions in the new Equipment
Operator Training Program.
Denied $200.0 GF increment for environmental clean-up
and compliance in the Northern Highways and Aviation
component.
Denied $95.0 GF and $250.0 GF increments for wayside and
pullout maintenance and bike path maintenance,
respectively, in the Northern Highways and Aviation
component.
Reduced the increment for two clerical positions for
Southeast Highways and Aviation to one position and
$30.0 GF.
Throughout the budget, increased GF requests for
personnel cost adjustments or for short falls in receipt
supported funding levels have been denied.
The Sub-Committee recommends the addition of conditional
language for expenditures of traffic fines collected up AS
28.90.030 and Whittier Tunnel toll receipts. There is also
language for lapsing Southeast Region Highways and Aviation
funds.
2:22:02 PM
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Transportation
and Public Facilities.
There being NO OBJECTION, it was ADOPTED.
AT EASE: 2:22:29 PM
RECONVENE: 2:23:08 PM
2:24:03 PM
Co-Chair Stedman reviewed the Senate Finance Subcommittee
budget actions for Department of Law. He reported a
reduction in general funds of $10,396,000 from the
Governor's proposed budget.
The Senate Finance Budget Subcommittee for the Department
of Law submits an Operating Budget to the Senate Finance
Committee for FY 09 as follows:
General Funds 45,930.3
Federal Funds 3,054.6
Other Funds 23,388.2
Positions
PFT 542
PPT 9
Temp 0
The Subcommittee held two meetings with the Department and
took the following actions:
Budget Action
Accepted the Governors amended proposal with the
following adjustments and comments.
Reduced the Governor's request for GF to
replace the Community Gun Violence federal
grant that ended on 12/31/06. The request was
reduced 50% from $121.6 to $60.8.
Reduced the Governor's request for two new
positions in the Anchorage Special Offenders
Unit. The request was reduced 50% from $343.6
to $171.8.
Denied $260.0 in GF increments for the Criminal and Civil
Divisions the Governor requested as a result of a
reduction in federal funds from the Juvenile
Accountability Block Grant program. This funding has
historically come from DH&SS as 1/A receipts. The
subcommittee recommends this funding be restored in the
DH&SS budget with continued I/A receipts issued to the
Department of Law.
Denied the $400.0 GF increment for the Rural Alcohol
Interdiction Program in the Criminal Division's Fourth
Judicial District and Criminal Appeals/Special Litigation
Component. This funding has historically come from DPS as
I/A receipts. Funding for this program has been restored
in the FY 09 DPS budget and it is the intent of the
subcommittee that funding for the program will continue
to come from DPS in the form of I/A receipts.
Reduced the Governor's request for a new PFT Associate
Attorney for adult restitution cases. The request was
reduced 50% from $111.5 to $55.8. The subcommittee
recommends the Department use this funding to continue
hiring temporary staff to address the backlog.
Denied the Governor's multi-year request for $9,600.0
from the Alaska Capital Income Fund for work related to
the state gas pipeline and replaced it with a S5,00.0 GF
one time increment. This increment was moved from the
Department of Law to the Governor's Office under Branch-
wide Oil and Gas Development. The subcommittee recommends
the Department request additional funds in the FY 10
budget as needed.
Denied the Governor's request for a new PFT Associate
Attorney for electronic records and discovery requests.
Wordage
The subcommittee recommends the wordage as referenced on
the wordage report listed.
Language
The subcommittee denied the following language under the
Department of Law:
"The sum of $9,600,000 is appropriate from the
Alaska capital income find (AS 37.05.565) to the
Department of Law, oil, gas and mining section, for
work related to the gas pipeline and to bringing
North Slope natural gas to market, and to other oil
and gas projects, for the fiscal years ending June
30, 2009 and June 30, 2010."
2:27:09 PM
Co-Chair Stedman addressed restoration of funds for the
Criminal Division's Anchorage Special Offenders Unit and
for the Civil Division's permanent, full-time, associate
attorney for adult restitution.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Law.
There being NO OBJECTION, it was so ordered.
2:28:54 PM
Co-Chair Stedman reviewed the Senate Finance Subcommittee
budget actions for Department of Revenue.
The Senate Finance Budget Subcommittee for the Department
of Revenue submits the following FY 09 Operating Budget
Recommendations to the Senate Finance Committee:
Fund Source Sen Sub Difference
General Funds $ 17,057.9 $(1,867.4)
Federal Funds $ 37,040.3 $9.1
Other Funds $208,243.9 $(558.4)
Positions Difference
PFT 868 (5)
PPT 50 0
Temp 17 0
The Subcommittee held two meetings with the Department and
took the following actions:
Budget Action
Accepted the Governor's amended budget and fund source
changes for salary increases with the following exceptions:
TAX DIVISION
Approves $800 k in GF for full funding of Audit Master
positions authorized in the passage of HB 2001 during last
year's special session on oil tax.
Approves increment of $120.9 to hire a Programmer Analyst
V for the oil & gas production tax database system.
Approves one-time increment of $540 k in GF for funding 2
contract auditors at $100 per hour, 40 hours a week with
30% additional for transportation, lodging and other
related expenses. The original request was for 3 contract
auditors and $1,013.2 GF.
TREASURY DIVISION
Approves $360 increment ($126.0 GF/ $234 Inter Agency
Receipts) to increase in house fixed-income portfolio
investment capabilities.
Approves $25 k increment in Retiree Health Insurance Fund
Receipts to cover increased costs of investment management
services.
Approves $250 k increment in Statutory Designated Program
Receipts to bring the retained fees for the State Bond
Committee's financial advisor services "on-budget". This
provides more transparency and accountability with regard
to the costs of these services.
ALASKA RETIREMENT MANAGEMENT BOARD (ARMB)
Accepts a one-time increment of $300 k GF for
conducting an independent audit of the state's
actuary.
ADMINISTRATIVE & SUPPORT
Accepts House recommendation to delete position
transferred from the Alaska Natural Gas line
Development Authority. ($33.3 GF/$55.6 Inter Agency
Receipts).
MENTAL HEALTH TRUST OPERATIONS
Approves a $254k increment in Mental Health Trust
Receipts to allow for increased positions as
recommended in the Board of Trustees operating plan.
ALASKA HOUSING FINANCE OPERATIONS
Approves increment of $893.0 in AHFC Receipts to
correct unrealizable fund sources for salary
adjustments. A corresponding decrement of $759.4
Federal Receipts and -$133.6 CIP Receipts in included.
Approves $11.4 in Fed Receipts for the project based
contract administration expenses.
Approves $180.0 in AHFC Receipts for scheduled
computer & printer replacements.
Approves $505.7 in AHFC Receipts for costs associated
with increased business activity.
Decrements $400.0 in AHFC Receipts for reduced private
lease space in the Atwood building.
ALASKA PERMANENT FUND CORP OPERATIONS
Denies a $83.6 increment in Perm Fund Corp Receipts to
hire 1 new Accountant.
Denies a $95.3 increment in Perm Fund Corp Receipts to
hire 1 new Investment Associate.
Denies a $63.5 increment in Perm Fund Corp Receipts to
hire 1 new IT Technician.
Denies a $70.1 increment in Perm Fund Corp Receipts to
hire 1 new Administrative Specialist.
Approves $180.9 in Perm Fund Corp Receipts to hire 1
Attorney to provide in-house legal counsel necessary
due to the growth and complexity of the Corporations
activities.
Approves $41.2 in Perm Fund Corp Receipts for
increased travel costs.
Approves $89.0 in Perm Fund Corp Receipts for the
increased cost of contractual services.
Approves $272.3 in Perm Fund Corp Receipts for salary
management plan increases.
Accepts $15.8 decrement in Perm Fund Corp Receipts for
reduced commodity and equipment spending plans.
APFC CUSTODY AND MANGEMENT FEES
Approves a $18,615 k increment in Perm Fund Receipts
to pay for increased custody arid management fees.
2:34:56 PM
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Revenue.
There being NO OBJECTION, it was so ordered.
2:35:28 PM
Co-Chair Stedman reviewed the Senate Finance Subcommittee
budget actions for University of Alaska. He noted the
decreases and the increases in funds. He explained the
subcommittee was unable to meet its overall objective.
The Senate Finance Budget Subcommittee for the University
of Alaska submits the following FY 09 Operating Budget
Recommendations to the full Finance Committee:
General Funds $309,585.5
Difference ($464.5)
Budget Action
The Subcommittee reviewed all of the increments and
decrements submitted by the Governor and recommends the
following budget actions:
General Fund Spending: The subcommittee's recommended
budget is a $464.5 k General Fund reduction (less than
1.0%) from the Governor's amended adjusted request.
Appropriation Structure: The subcommittee is recommending a
different appropriation structure than was requested by the
Governor.
Over the last several years, the University has received a
single appropriation from the Legislature.
The House recommended breaking this into 3 appropriations
this year:
Statewide Programs & Services
University of Alaska Campuses and
Small Business Development Center. This item has
traditionally been in the Capital Budget but this
year it has been moved into the operating budget and
given a separate appropriation.
The Senate Subcommittee accepted the House's recommendation
to move the Small Business Development Center to its own
appropriation in the operating budget and to fund it with
Business License Receipts instead of General Funds.
The Senate Subcommittee is recommending that the single
University of Alaska Campuses appropriation be broken into
4 separate appropriations:
University of Alaska Anchorage
University of Alaska Fairbanks
University of Alaska Southeast
University of Alaska Community Campuses
A similar appropriation structure was used by the
Legislature prior to FY 05 and is still used by the
University.
Transaction Detail:
Budget Reductions/Additions: The subcommittee left 3
transactions in the Systemwide Budget Reductions &
Additions appropriation but recommends that the full
Committee consider distributing these as appropriate over
the new appropriation structure.
Accepted the House recommendation to add $1.0 mill
GF for library, IT, and other operating costs. This
was $128.9 GF less than the Governor's request.
Accepted a $3.201 mill GF salary increment for Non-
Represented grid increases.
Accepted a $300 k GF increment for Distance
Education Faculty Training. This will enhance the i-
teach and i-design programs and enhance distance
faculty development.
Accepted a $202.2 GF salary increment in Statewide Services
for Non-Represented grid increases.
Accepted the House recommendation to decrement $757.0 GF as
a 5% unallocated reduction within Statewide Services.
Denied $1.320 mill GF of utility cost increases. Utility
cost increases are expected to be addressed in future
supplemental appropriations and through the "trigger"
language in the operating budget.
Approved the Board of Regent's full $5.776 GF increment to
help prepare Alaskan's for jobs in the health, engineering
and fisheries professions. The committee included $1.0
million to create a new bachelor of fisheries program and
restored the $300.0 k health care decrement made in the
House.
Denied $966.4 GF for University research in the areas of
climate impact and natural resources.
Accepted the House's recommendation to add a $300.0 k GF
increment for tutoring and distance learning within the
Alaska Native Science & Engineering Program.
Accepted the House's recommendation to add a $320.0 GF and
$273.4 University Receipts for the College of Arts &
Sciences general education requirements.
Approved an $80.0 k GF increment for a Career Counselor
position at the Mat-Su College.
Approved a $350.0 k GF to stabilize Cooperative Extension
Program funding.
Approved a $1.5 mill ($500 k GF Match/$1.0 Federal
Receipts) increment to create a research center in
Fairbanks to address rural energy and alternative energy
programs.
2:41:20 PM
Co-Chair Hoffman referred to the transaction detail
budget reductions/additions. He pointed out that the
subcommittee left three transactions in the Systemwide
appropriation, but recommended that the full Committee
address them after the public hearing process.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the University of Alaska.
There being NO OBJECTION, it was so ordered.
2:42:02 PM
Senator Elton reviewed the Senate Finance Subcommittee
budget actions for Department of Corrections.
Re: FY 09 Senate Budget Subcommittee Recommendations
The Senate Finance Budget Subcommittee for the
Department of Corrections submits an operating budget
to the full Senate Finance Committee for FY 09 as
follows:
General Funds $207,988,200
Federal Funds $2,990,500
Other Funds $30,651,900
The subcommittee met multiple times with the
department and took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base, with
the exception of certain changes
to the position adjustments and
transfers that reestablish
funding for correctional officer
premium pay. Those changes are
described below.
2. Reviewed each of the increments (24
GF, 2 Mental Health) and
decrements (0) submitted by the
governor and adopted the
following:
Increments:
Added a one-time increment of $50.0 ($25.0 GF, $25.0
MHTAAR) for a study of evidence-based options to lower
crime and corrections costs in Alaska.
Adopted two net-zero add/delete transactions to realign
positions within the department.
Amended and adopted an increment for the file imaging
program to provide one-time funding of $180.0 GF.
Adopted an increment of $30.9 GF for increased space at the
Palmer office building.
Amended and adopted an increment for increased travel and
contractual expenses associated with new prison expansions.
The subcommittee provided $180.0 in CIP receipts.
Adopted a Facility Maintenance increment of $2,500.0 I/A
receipts to reflect increased expenses in the department's
facilities.
Adopted an increment of $801.0 (451.8 General Fund, 349.2
PFD Crim) to begin implementation of an outpatient
substance abuse program within correctional facilities.
Adopted $310.0 GF for sex offender treatment within
correctional facilities.
Adopted $30.0 GF for educational materials.
Adopted an increment of $331.8 PFD Crim to pay increased
costs of the Residential Substance Abuse Treatment program.
Adopted $343.0 GF for the increased bed rate at the Arizona
contract facility.
Adopted $150.0 GF to begin a sex offender treatment program
in the Arizona contract facility.
Adopted $1,000.0 GF to replace a decrement of $1,000.0 Fed
for decreasing federal prisoner days.
Adopted $1,853.9 GF in 12 transactions to eliminate the
vacancy factor in 24-hour facilities.
The subcommittee approved 20 of the 30 positions the
department eliminated in the 09 adjusted base in order to
fund correctional officer premium pay and adjusted fund
transfers accordingly. The department has completed a
posting study that shows filling five additional positions
at Pt. Mackenzie, 1 in the Anchorage Correctional Complex,
two in Palmer, one at Hiland Mountain, and one at Yukon-
Kuskokwim Correctional Center will reduce overtime by as
much or more than the costs associated with filling those
positions.
Reduced and adopted an increment for Community Residential
Centers. The subcommittee approved $750.0 GF. This is
$250.0 below the governor's request.
Adopted an increment of $260.0 ($50.0 GF, $210.0 MHTAAR) to
implement the Assess, Plan, Identify, Coordinate (APIC)
model as part of the Mental Health Trust Authority's
Disability Justice initiative. The subcommittee applauds
the department and the Trust for working collaboratively on
this program. as directed by the senate's FY 08 operating
budget intent language.
Adopted an increment of $446.0 ($223.0 GF, $223.0 MHTAAR)
for mental health services, The subcommittee again applauds
the department and the Trust for joining forces to reduce
recidivism, costs, and overall crime.
Adopted an increment of $2,126.9 (PFD Crim) for inmate
health care.
Adopted an increment of $106.7 and one PFT to create a
health care manager. This position will dramatically
increase the health systems information available to the
department so it can begin to realize efficiencies in-and
reduce the cost ofinmate health care and health
management.
Adopted an increment of $169.0 in interagency receipts to
hire two mental health clinicians to support mental health
courts.
Amendment Action
The governor did not submit amendments for the
Department of Corrections budget.
Personnel
Reviewed the position count for the Department of
Corrections. The position
count for FY 07 was: 1502PFT, 8PPT,
3Temp
The requested position count for FY 09 is:
1524PFT, 5PPT,
OTemp
The subcommittee recommends:
1505PFT, 4PPT,
OTemp
Items of Concern
Subcommittee issues of concern about the Department of
Corrections include:
1. The subcommittee encourages the department to work
collaboratively with federal agencies to stem the
reduction of federal prisoner days.
2. The historic rate of increase in Community
Residential Center contract costs, reflected in the
FY 09 request for a 6.3% increase in GF, is
unsustainable.
3. The department's FY 08 difficulties in constructing
additional small housing units led the subcommittee
to exclude increments for similar units in FY 09.
Including the construction costs in the capital
budget is more appropriate, so the legislature can
consider future staffing and operations costs once
the facilities are built. We recommend the
construction costs by part of the capital budget.
Wordage Recommendations
The subcommittee recommends correcting the statutory
reference in the governor's conditional carry forward
language related to the Prisoner Employment Program.
Closing Comments
The subcommittee thanks the Department of Corrections
employees for their dedication to justice and service
to Alaska. Theirs is an often dangerous and usually
thankless job. We also thank Billie Jo Gehring of the
Legislative Finance Division for her hard work and
dedication to fiscal policy work. We appreciate her
eye for budgetary detail and willingness to put in
long hours serving our state.
Co-Chair Stedman Co-Chair Stedman MOVED to ADOPT the
Subcommittee report for the Department of Corrections.
There being NO OBJECTION, it was so ordered.
2:46:34 PM
Senator Elton reviewed the Senate Finance Subcommittee
budget actions for Courts. The Senate Finance Budget
Subcommittee for the Alaska Court System submits an
operating budget to the full Senate Finance Committee for
FY 09 as follows:
General Funds $78,624,100
Federal Funds $1,675,600
Other Funds $1,493,800
The subcommittee met multiple times with the courts and
took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments (19 GF, 6 Mental Health)
and decrements (0) submitted by the governor on behalf of
the court system and adopted the following:
Increments:
Adopted $100.0 GF for Ketchikan security screening.
Reduced an increment for implementation of the magistrate
salary study's findings to $152.0 GF. This increment is 50
percent implementation.
Reduced two judicial vacancy rate increments from $1089.0
GF to $250.0.
Adopted $76.0 GF for a custody investigator in the first
judicial district, initially part of a larger increment
requested to improve services in the trial courts. The
original request included an additional $182.7 for a second
new position and four position upgrades.
Amended and adopted $550.0 for wellness court contractual
increases. This increment is $300.0 GF and $250.0 MHTAAR.
The subcommittee particularly appreciates the Mental Health
Trust Authority's assistance in ramping up Alaska's
therapeutic courts, which have been a high priority of both
the legislature and court system. This helps fulfill the
goal of crime reduction.
Reduced an increment for juror process enhancement to $69.0
GF. This increment excludes an additional $288.0 the court
system requested to fund juror parking in the Municipality
of Anchorage.
Amended and adopted $43.5 GF for lease increases at several
rural court locations. In most cases the increased lease
costs remain significantly below executive branch costs per
square foot in the same cities. This increment does not
include $25.8 to lease a parking lot in Kenai.
Reduced an increment to expand the Homer courthouse to
$76.9 GF. This is $77.5 below the court system's request,
to reflect the FY 07 increment in that amount, which was
reallocated without legislative approval for two fiscal
years.
Added an increment of $100.0 GF for the Multi-Agency
Justice Integration Consortium. By integrating information
systems among courts, corrections, state and local law
enforcement, and others, MAJIC enhances the entire criminal
justice system by making complete, timely, accurate
information available where and when it is needed.
Adopted six MHTAAR increments in the Mental Health Trust
Authorits Disability Justice Initiative:
$236.3 for Fairbanks Juvenile Mental Health Court
$204.4 for Juneau Mental Health Court
$25.0 for neuropsychiatric evaluations for therapeutic
court participants
$99.4 for Anchorage Mental Health Court capacity
increase
$147.7 for safeguards to prevent financial
victimization
$25.0 to train prosecutors and defense attorneys.
Adopted an increment of $1.7 GF to bring the Alaska
Commission on Judicial Conduct's capital outlay authority
to $5.0.
Adopted an increment of $2.0 GF to maintain the
commission's vacancy rate at three percent.
Adopted an increment of $64.5 GF to allow the Judicial
Council to accommodate the sustained increase in the number
of judicial vacancies and applicants for each vacancy.
Amendment Action
The governor did not submit amendments for the court system
budget.
Personnel
Reviewed the position count for the Alaska Court System.
The position count for
FY 07 was: 724PFT, 58PPT, 33Temp
The requested position count for FY 09 is:
774PFT, 56PPT, 32Ternp
The subcommittee recommends:
728 PFT, 61PPT, 32Temp
Items of Concern
Subcommittee issues of concern about the Alaska Court
System include:
1. The subcommittee encourages the court system to partner
with the Municipality of Anchorage and City of Kenai to
find parking solutions that reflect the significant
costs the state bears in handling municipal offenses.
General fund appropriations for parking in every large
municipality would be unsustainable. General fund
appropriations for parking in only certain
municipalities would be inequitable.
2. The legislature approved a three percent vacancy rate
for the judicial conduct commission in FY 08. The
subcommittee encourages the Division of Legislative
Finance to work collaboratively with the Office of
Management and Budget and the Administrative Director of
the court system to reflect this policy decision in the
agency's adjusted base budget.
Wordage Recommendations
The subcommittee recommends removing the governor's
transmittal language.
Closing Comments
The subcommittee thanks the Alaska Court System's employees
for their dedication to justice and service to Alaska. We
also thank Billie Jo Gehring of the Legislative Finance
Division for her hard work and dedication to fiscal policy
work. We appreciate her eye for budgetary detail and
willingness to put in long hours serving our state.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Courts.
There being NO OBJECTION, it was so ordered.
2:50:16 PM
Senator Elton reviewed the Senate Finance Subcommittee
budget actions for the Department of Environmental
Conservation. He pointed out that the budget is $103,600
more than the Governor's in general funds due to a one-time
amount of $184,000 that should be funded in the FY 09
operating budget rather than in the supplemental as the
Governor had initially requested.
The Senate Finance Budget Subcommittee for the Department
of Environmental Conservation submits an operating budget
to the full Senate Finance Committee for FY 09 as follows:
Fund Source 08 Mgt Plan 09 Gov Amd Adj Sen Sub
Gen Fund $17,893,000 $18,652,900 $18,756,500
Fed Fund $20,533,700 $21,006,600 $21,035,400
Other Funds $28,783,300 $32,542,400 $32,543,000
Personnel
Positions 08 mgt plan 09 Gov Amd Adj Sen. Sub
PFT 527 531 529
PPT 1 1 1
Temp 4 4 4
The subcommittee met with DEC multiple times, including
joint meetings with the House subcommittee, and took the
following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments (2) and decrements (1)
submitted by the governor and adopted the following:
Increments:
Adopted an increment of $523.7 ($261.9 Fed, $261.8
GF Match) to obtain drinking water primacy. This
is the final of three increments, phased over
three fiscal years, to obtain primacy in drinking
water.
Adopted $2,800.0 (Commercial Passenger Vessel
Environmental Compliance) for the ocean ranger
program. This amount includes the governor's
original request of $2,600.0 as well as a
governor's amendment, described below.
Added an increment of $80.0 (GF) for Paralytic
Shellfish Poisoning testing.
Added a one-time increment of $184.0 (GF) for FY 09
work of the governor's climate impact sub-
cabinet. This funding is the FY 09 portion of
what the governor requested in the FY 08
supplemental budget as a multi-year
appropriation. The subcommittee recommends this
transaction to align the appropriations with the
fiscal year in which expenditures are made.
Approved three positions added in the management
plan to the facility construction program, and
one position for Village Safe Water
accountability work. These positions are all
funded from CIP receipts.
Approved one maintenance position added in the
management plan to the DEC lab. This position was
funded by reducing maintenance contracts, based
on the department's determination that a second
maintenance employee is a more cost effective way
to meet the laboratory's needs.
Decrements:
Accepted a decrement of $16.7 in Oil and Hazardous
Materials Response funds in the environmental
health lab.
Decremented $131.0 from the water division and
deleted two positions vacant since the middle of
calendar year 2005.
Decremented $1,547,900 from the National Pollutant
Discharge Elimination System primacy effort. A
language section, described below, reinstates the
funding if certain conditions are met.
3. Realigned Oil and Hazardous Materials Response funds,
replacing $619.3 previously in the contaminated sites
program with GF, and replacing a like amount of GF in
the industry preparedness/pipeline operations
allocation with Oil/Haz funds. This is a net zero
realignment.
Amendment Action
The governor submitted an amendment to increase the
Commercial Passenger Vessel Environmental Compliance
funds authorization for the Ocean Ranger program by
$200.0. The subcommittee accepted this amendment, as
described above.
Personnel
Reviewed the position count for the Department of
Environmental Conservation.
The position count for FY 07 was: 515 PFT, 0 PPT, 4
Temp
The requested position count for FY 09 is: 531 PFT,
1 PPT, 4 Temp
The subcommittee recommends: 529 PFT, 1 PPT, 4 Temp
Items of Concern
The subcommittee understands the department plans to
add two additional employees to implement the Ocean
Ranger program. The department did not seek
legislative authorization for these positions.
Wordage Recommendations
The subcommittee recommends intent language matching
the House. This includes attached intent language
addressing accountability when state agencies spill
oil or hazardous materials.
Language
The subcommittee recommends conditional language that
expenditures for the Ocean Ranger program not exceed
receipts.
The subcommittee recommends language appropriating
$1,547,900 for NPDES primacy contingent on the
transfer of full authority for the program to DEC.
Closing Comments
The subcommittee thanks the department's employees for
their service to Alaska. We also thank Danith Watts
of the Legislative Finance Division for her hard work
and dedication to sound fiscal policy. We appreciate
her encyclopedic knowledge of the state budget system
and ability to put fiscal detail in layman's terms.
Senator Dyson remarked that the Attorney General has
ignored the intent language.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Environmental Conservation.
There being NO OBJECTION, it was so ordered.
2:55:18 PM
Senator Thomas reviewed the Senate Finance Subcommittee
budget actions for the Department of Commerce, Community
and Economic Development:
The Senate Finance Budget Subcommittee for the Department
of Commerce, Community and Economic Development submits an
Operating Budget to the Senate Finance Committee for FY 09
as Follows:
08 Mgt Adj Gov
Fund Source
Plan Amd Sen Sub Difference
General
Funds 10,800.8 10,819.4 9,523.8 -1,295.6
Federal
Funds 50,489.1 54,388.0 54,315.9 -72.1
Other Funds 95,842.6 102,916.0 100,947.6 -1,968.4
08 Mgt Adj Gov
Positions
Plan Amd Sen Sub
PFT 509 516 515
PPT 3 1 1
Temp 4 15 15
The Subcommittee held four meetings and took the following
actions:
The Subcommittee adopted the FY 09 adjusted base as the
starting point for comparison with the Governor's FY 09
budget request. The following are highlights of actions
taken by the Subcommittee:
• Deleted a special assistant to the Commissioner to fund
the Development Manager position in the Office of
Economic Development.
• Funded a new grant administrator in the Division of
Community and Economic Development. The number of grants
overseen by each administrator has reached an
unmanageable level.
• Added funding for the Alaska Legal Services Corporation
to offset loss of federal funding for legal assistance to
victims of domestic violence.
• Deleted the Independent Traveler grant to ATIA, the
Qualified Trade Association.
• Added six positions and $3 million in Federal funding to
the Alaska Aerospace Development Corporation, to support
three additional launches.
• Included full funding for Power Cost Equalization.
• Added $250.0 in General Funds to the Alaska Seafood
Marketing Institute to match federal funds for overseas
marketing.
• Added two positions and receipt supported services
funding to the Division of Banking and Securities for the
second year of the fiscal note for HB 162, the mortgage
lending bill that passed last session. Also, the
Subcommittee authorized the banking division to use an
additional $180.0 in RSS funds for enforcement and legal
costs.
• Added $503.0 in receipt supported services funds to the
Division of Insurance for investigation and enforcement.
• Added $1,000.0 in RCA receipts for the legal costs of the
Regulatory Commission of Alaska.
The Subcommittee did not accept the Governor's request for
General Funds to offset unrealizable federal and other
funds, in the Office of Economic Development.
The Subcommittee also declined the requested $500.0
increment for increases in Department of Administration
charges for core services between FY 05 and FY 08.
Finally, the Subcommittee did not include the $200.0
General Fund increment for the new Energy Coordinator
position in AIDEA/AEA. This was a late amendment and the
Subcommittee defers it to the full committee.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Commerce, Community and Economic
Development.
There being NO OBJECTION, it was so ordered.
2:58:52 PM
Senator Thomas reviewed the Senate Finance Subcommittee
budget actions for the Department of Labor and Workforce
Development:
The Senate Finance Budget Subcommittee for the Department
of Labor and Workforce Development submits an Operating
Budget to the Senate Finance Committee for FY 09 as
Follows:
08 Mgt Adj Gov
Fund Source
Plan Amd Sen Sub Difference
General
Funds 23,380.2 26,176.0 28,210.5 2,034.5
Federal
Funds 86,256.2 85,701.9 85,731.9 30.0
Other Funds 51,471.6 54,926.7 54,843.9 -82.8
08 Mgt Adj Gov
Positions
Plan Amd Sen Sub
PFT 835 835 834
PPT 106 105 105
Temp 46 44 44
The Subcommittee held five meetings and took the following
actions:
The subcommittee adopted the FY 09 adjusted base as the
starting point for comparison with the Governor's FY 09
budget request.
The Governor's FY 09 operating budget request proposes a
significant increase in general funds to cover unrealizable
fund sources due to the GGU negotiated contract. Five
components, Labor Market Information, Data Processing,
Employment and Training Services, Unemployment Insurance,
and Client Services, totaled $2,064.6 million in General
Funds. The subcommittee accepted the fund source changes
in these components recognizing the significant impacts on
workforce services without this change. The subcommittee
declined requested General Fund fund source changes in two
components: the Commissioner's Office and Management
Services.
The Governor's FY 09 operating budget request proposes
spending $1,080.0 General Funds for Alaska Gasline
Inducement Act (AGIA) related services. This
recommendation creates a separate Results Delivery Unit
(RDU) for the AGIA related services in the Governor's
Office. This will allow for transparency in the budget
process this year and in future years as the State of
Alaska moves closer to the construction of a natural gas
pipeline and ensuring that Alaska has the workforce to
support this project.
The subcommittee recommendation also transfers $3.5 million
General Funds for the Alaska Construction Academies from
the Capital to the Operating Budget.
In total, the subcommittee recommendation would increase
the FY 09 Governor's Amended Request by approximately
$2,034.5 General Funds, largely due to the $3.5 million
transferred from the Capital Budget for the Alaska
Construction Academies. The proposal is $293.5 GF greater
than the House proposal due to the inclusion of funding for
Labor Market Information salary increases and the Southwest
Alaska Vocational Technical Center. The following actions
were taken by the subcommittee:
Commissioner and Administrative Services
Commissioner's Office
Declined to accept the $5.4 GF increment to correct
the unrealizable fund source for salary adjustments.
Office of Citizenship Assistance
Deleted $159.6 GF and one PFT in the Office of
Citizenship Assistance, eliminating all funding for
that office.
Management Services
Declined to accept the $75.0 GF/Match increment to
correct the unrealizable fund source for salary
adjustments.
Labor Market Information
Accepted the $98.5 GF increment to correct the
unrealizable fund source for salary adjustments.
Accepted a $95.0 GF increment for 1 PFT Economist II
for AGIA Training Program and Regional Economic
Analysis. The FY 09 request was $110.0 GF. This is a
decrement of $15.0 GF from the FY 09 request. This
funding is transferred to the new AGIA RDU in the
Governor's Office.
Workers' Compensation and Safety:
WC Benefits Guaranty Fund
Accepted the increment of $200.0 Workers' Compensation
Benefit Guaranty Funds for the purpose of allowing
additional benefit payments.
Wage and Hour Administration
Accepted the increment of $50.0 GF for the maintenance
of the Certified Payroll System.
Mechanical Inspection
Accepted the increment of $41.5 Building Safety Fund
to support reclassification of an administrative
position to a Boiler Inspector.
Occupational Safety and Health
Accepted the increment of $61.0 Workers' Safety
Account to correct the unrealizable fund source for
salary adjustments.
Accepted the increment of $46.5 Workers' Safety
Account for the cost to change an administrative
position to a Safety Compliance Officer.
Workforce Development
Employment and Training Services
Accepted the increment of $775.8 GF to correct the
unrealizable fund source for salary adjustments.
Accepted the increment of $10.0 Statutory Designated
Receipts for the Performance Assessment Network
Agreement.
Accepted the $950.0 I/A Receipt authorization for
Alaska Youth First Initiative.
Accepted the increment of $400.0 Federal Reed Act
Authorization to offset the decrement of $400.0 in
general federal receipt authorization.
Unemployment Insurance
Accepted the increment of $734.6 GF to correct the
unrealizable fund source for salary adjustments.
Accepted the increment of $60.0 Statutory Designated
Receipts to allow Memorandums of Agreement with State
Municipalities.
Accepted the increment of $956.1 Federal Reed Act
Authorization to offset the decrement of $956.1 in
general federal receipt authorization.
Adult Basic Education
Accepted the transfer of $528.8 GF to GF/Match to
reflect the federal Maintenance of Effort Requirement.
Workforce Investment Board
Accepted the deletion of 1 PFT and reduced I/A Receipt
Authority to align with anticipated receipts.
Business Services
Accepted the increment of $1,247.9 STEP fund
authorization.
Alaska Vocational Technical Center
Accepted the increment of $163.5 TVEP authorization.
Declined to accept the increment of $135.0 GF for AGIA
Training Program Implementation, which included a
Recruiter and Vocational Instructor Training.
Kotzebue Technical Center
Accepted the increment of $81.7 TVEP authorization.
SW AK Vocational Education Center
Accepted the increment of $29.7 TVEP authorization.
Accepted the $195.0 GF increment to replace reduced
federal funding and maintain SAVEC operations.
Yuut Learning Center (The People's Learning Center)
Accepted the increment of $29.7 TVEP authorization.
Construction Academy Training
Construction Academy Training
Added a new RDU for the Alaska Construction Academies
and $3.5 million GF. This matches the amount
appropriated in the FY 08 Capital Budget and the
Governor's FY 09 capital budget request. The nature of
the activity is operational rather the capital. This
will maintain construction academies in Anchorage,
Fairbanks, Kenai, Mat-Su, Juneau and Ketchikan.
Vocational Rehabilitation
Client Services
Accepted the increment of $267.4 GF/Match to correct
the unrealizable fund source for salary adjustments.
Accepted the transfer of $257.2 GF to GF/Match to
reflect the federal Maintenance of Effort Requirement.
Accepted the decrement of $93.4 I/A Receipts to align
with anticipated receipts.
Independent Living Rehab
Accepted the increment of $39.5 GF for Independent
Living Services in Rural Alaska.
Special Projects
Accepted the increment of $7.1 for interpreter
referral services.
Accepted the decrement of $500.0 Federal Receipts due
to completion of customized employment grant.
Assistive Technology
Accepted the increment of $68.1 I/A Receipts to
support a program coordinator position.
New Governor's Office RDU: AGIA Workforce Training Program
New Component: Labor Market Information Services
Accepted a $95.0 GF increment for 1 PFT Economist II
for AGIA Training Program and Regional Economic
Analysis. The FY 09 request was $110.0 GF. This is a
decrement of $15.0 GF from the FY 09 request.
New Component: Workforce Training Info Services
Accepted $50.0 GF for web and print based Alaska
Training Program guide.
New Component: Regional Training Center Development
Accepted $340.0 GF to fund 1 PFT program coordinator
and grant authority for training 70 apprentices.
Decrement of $70.0 GF.
New Component: Cooperative Training
Accepted $375.0 GF to fund cooperative training
agreements with business and industry for AGIA
specific industries.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Labor and Workplace Development. There
being NO OBJECTION, it was so ordered.
3:07:51 PM
JOHN WEISE, STAFF, SENATOR LYMAN HOFFMAN, reviewed the
Senate Finance Subcommittee budget actions for the
Department of Administration:
The Senate Finance Budget Subcommittee for the Department
of Administration submits an operating report to the full
Senate Finance Committee for FY 09 as follows:
Fund Source
O8 Mgt Gov Amd
Plan Plan Sen Sub Difference
GF 63,344.1 68,283.9 67,769.3 -514.6 -.8%
FED 2825.4 2,775.4 2,775.5 0.1
Other 199,336.2 204,744.6 205,299.1 554.5 3%
Total 265,505.7 275,8O3.9 275,843.9
Personnel
1. Reviewed the authorized position count for the
Department. The Governor requested 10 new positions.
The subcommittee is recommending 4 new hires.
Position Summary
Gov Amd Senate
08 Mgt Adj Sub
Plan
PFT 1,042 1,052 1,046
PPT 23 23 23
Temp 32 32 32
Total 1,097 1,107 1,101
The Subcommittee held three meetings with the Department
and took the following actions:
Budget Action
1. Adopted the FY 09 Adjusted Base.
2. Reviewed each of the increments (16), decrements (1)
submitted by the Governor. Accepted the Governor's
proposed salary adjustment fund changes with the
following exceptions:
$12.5 for Administrative Hearings
$4.6 for Commissioner's Office
$53.8 for Administrative Services
$39.2 for Information Technology Support
$29.0 for Central Mail
$0.1 for AOGCC
3. Adopted $496.8/CIP Receipts for Finance, Time &
Attendance, but denied 5 new positions. The
subcommittee recommends the department use existing
positions.
4. Amended and Adopted $420.7/GF for Finance, ALDER
(requested $530.7). The Governor requested 2 new
positions. The subcommittee is recommending 1 new
hire.
5. Amended and Adopted $150.0/GF for Personnel
(requested $365.5). The Governor was requesting
general funds in this component, which is mostly
operated with Interagency Receipts.
6. Adopted $962.0 for Facilities with amended fund
source of $762.0/GF and $200.0/Public Building Fund
(1147).
7. Reduced the base budget appropriation to Enterprise
Technology Services by $250.0 GF with the intent
that the decrement be absorbed in the ALMR/SATS
program.
8. The subcommittee reviewed the House Finance
Committee's $400.0/GF increment to Public
Broadcasting - Radio component - and recommends
accepting this increment and amending the fund
source to a "one-time increment."
Amendment Action
1. Reviewed amendments (5) submitted by the Governor
through February 29, 2008. Accepted amendments for the
following:
$44.0 for Office of Administrative Hearings
$2,400.0 for Office of Public Advocacy
$820.0 for Public Defender
$139.6 for Alaska Public Offices Commission
$8.5 decrement for Violent Crimes Compensation Board
Items of Concern
1. The subcommittee reviewed the functions of the State
Travel Office (STO). The STO continues to be
unpopular with a considerable number of state
employees. It appears that the STO is effective in
saving the State significantly in terms of Medicaid-
related travel; however, there is room for
improvement in terms of ease and flexibility of use
for other employees. The State now has documented
travel expenditures that can be compared to agencies
budgets and should be. The subcommittee reviewed the
use of airline bonus miles by the STO and noted that
STO has done well in reducing the backlog of air
miles from approximately 18 million to 8 million.
This trend should be continued. In summary, the
subcommittee continues to be concerned about the
function of the STO, but agrees with the department
that this relatively new centralized operation
should be given another year to improve.
2. DOA should revise their fiscal note for HB 281 to
reflect the funding of the Governor approved
amendment that provides APOC an increment of
$139.6/GF.
3. The subcommittee amended the request for increments
related to the Time and Attendance System to use
existing positions and approved one new position for
the ALDER operations. Back-up provided by the
department indicated that these positions would be
filled with long-term experienced employees
currently employed by the department and yet did not
transfer out their positions from their previous
assignments. There is concern with the total cost of
the ongoing replacement of the state's accounting
and payroll systems (AKSAS and AKPAY). The
subcommittee urges the department to control the
massive cost of replacing these aging computer
systems.
4. The subcommittee reviewed the ALMR/SATS program.
There is concern of the reduced federal
participation and the future cost of the program.
The department is currently working on the total
cost of operation (TOC). Initially, the department
projected that the TOC was going to be submitted to
the Legislature by March 2008. That date has been
extended to sometime after the Legislature adjourns.
The subcommittee recommends for future tracking, a
budget structure change to add an allocation under
ETS appropriation for ALMR/SATS in 2010.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Administration.
There being NO OBJECTION, it was so ordered.
3:12:50 PM
TIM GRUSSENDORF, STAFF, SENATOR LYMAN HOFFMAN, reviewed the
Senate Finance Subcommittee budget actions for the
Department of Fish and Game.
The Senate Finance Budget Subcommittee for the Department
of Fish and Game submits an Operating Budget to the Senate
Finance Committee for FY 09 as Follows:
Fund Source Gov Amd Sen Sub
Difference
General Funds $52,569.4 $52,138.4 $(431.0)
Federal Funds $54,748.9 $54,748.9 $ 0
Other Funds $65,536.8 $64,360.3
$(1,176.5)
Staffing adjustments recommended by department, no new
positions requested.
The Subcommittee held two meetings with the Department and
took the following actions:
Budget Action
Accepted the Governors amended proposal with the
following adjustments and comments.
Accepted the Proposed fund source changes for salary
increases.
Accepted the Governors amendment for $7,228.4 to replace
Federal Funds with GF in the base. These funds are
proposed to replace lost federal grants that the
department has traditionally received through the
National Marine Fisheries Service, It should be noted
that these funds have never been in the base budget of
NMFS, but have been inserted by Alaska's congressional
delegation. The Western Region Fisheries Management GF of
$1,043.7 and the Wildlife Conservation Special Project of
$1,180.0 will not be added to the base but will be
General Fund One Time Only.
Legislative Intent to close the commercial fisheries and
sport fish offices in Soldotna and transfer staff to
regional office in Anchorage that is accompanied by a
corresponding GF reduction of $80.0 for lease space for
these offices.
Reduce Governors budget for Public Shooting Ranges
$676.5 (F&G funds) following through on the Legislative
intent from last year.
Removed all $500.0 from the AK sport fish enterprise
account from the numbers section of Sport Fisheries'
budget. This funding is derived from a surcharge on the
sale of fish licenses and must be used for hatcheries
operations. The entire $500.0 will be put in a language
section and the appropriation will be contingent upon
passage of the re-appropriation for hatcheries in the FY
08 fast track supplemental bill.
Denied $151.0 increment for commercial fisheries
crewmember and seafood buying database support.
Reduce Sport fish Services GF allocation by $100.0.
Reduce Wildlife Conservation Services GF allocation by
$100.0.
Areas of Concern
Use of Commercial Fisheries Revolving Loan Fund:
The Governor's proposed budget includes $1,326.3 of
funding from the Commercial Fisheries Revolving Loan
Fund in the Department of Commerce. This is of great
concern to the committee because it is eating into the
principal of the fund. The fund and the associated
program in the Division of Investments are very
effective in assisting Alaskans to invest in the
industry, Apart from encouraging the increase in
Alaskan ownership in the North Pacific fishing
industry, the health of the CFRLF may soon be
particularly critical to help the industry respond to
federal mandates for emission controls for diesel
engines. The committee recommends that the Department
of Fish and Game present a budget for FY 10 that does
not include any use of funds from the CFRLF.
Salaries
The Department has indicated for several years that
retaining key fisheries and game management personnel
is becoming more and more difficult because state
salaries are not competitive with the salaries paid to
equivalent positions in the federal government. The
departure of experienced biologists with critical
knowledge of the Alaskan fishing industry and game
resources will leave the department with deficiencies
in its core functions. This issue was included in the
FY 08 subcommittee report yet nothing has changed, so
it remains a major item of concern.
Hunter Education Shooting Ranges
It is the intent of the Legislature that ADFG transfer
ownership of the three shooting ranges in Fairbanks,
Anchorage and Juneau to those municipalities or
appropriate private entities.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Department of Fish and Game.
There being NO OBJECTION, it was so ordered.
3:16:10 PM
Mr. Grussendorf reviewed the Senate Finance Subcommittee
budget actions for the Office of the Governor.
The Senate Finance Budget Subcommittee for the Department
of Fish and Game submits an Operating Budget to the Senate
Finance Committee for FY 09 as follows:
Fund Source Gov Amd Sen Sub Sen to
Gov
General Funds $52,860.6 $55,637.9 $2,777.2
Federal Funds $ 179.0 $ 179.0
Other Funds $ 1,336.0 $ 1,336.0
Positions
PFT 155 152 3
PPT 0 0 0
Temp 46 46 0
The Subcommittee held one meeting with the Department and
took the following actions:
Budget Action
Accepted the Governor's amended proposal with the following
adjustments.
Denied the Increment of $521.9 k to the Division of
Elections for 3 new positions.
Agreed with the House to combine the AGIA related branch
wide O & G Development appropriations into the Governor's
office budget for a clearer picture of how these funds are
used and to keep funds from blending into agencies bases.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Office of the Governor.
There being NO OBJECTION, it was so ordered.
3:18:30 PM
Mr. Grussendorf reviewed the Senate Finance Subcommittee
budget actions for the Legislatures FY 09 Operating Budget
Recommendations.
The Senate Finance Budget Subcommittee for the
Legislature's Operating Budget submits this recommendation
to the Senate Finance Committee for FY 09 as follows:
Fund Source Gov Amd Sen Sub
Difference
General Funds $60,772.6 $59,234.0
$(1,538.6)
Other Funds $ 968.6 $ 963.6 $ (5.0)
Positions
PFT 243 245 2
PPT 278 281 3
Temp 0 0 0
Budget Action
Accepted the Governor's amended proposal with the following
adjustments.
Accepted the reductions of OTO funds brought forward by
LAA.
Deny Increment of $21.1 k to the Select Committee on
Ethics, which included a one range pay increase and added
9.0 k for 6 months of additional casual labor.
Added Increment of $80.0 k to Legislative Council
Administrative Services for additional Maintenance Employee
for Capital and Old Masonic Lodge.
Co-Chair Stedman MOVED to ADOPT the Subcommittee report for
the Legislatures FY 09 Operating Budget Recommendations.
There being NO OBJECTION, it was so ordered.
AT EASE: 3:21:56 PM
RECONVENED: 3:22:37 PM
3:23:23 PM
Senator Thomas referred to the Commerce Subcommittee Report
language section of the operating budget as it relates to
the NPR appropriation and voiced disagreement with the
Administration regarding the 2006 legislation, SB 171,
relating to the National Petroleum Reserve. The bill
requires 25 percent of the gross of the NPR revenue
deposited into the Permanent Fund, unless there are
insufficient funds to do so. He reported that the
Subcommittee has asked the Department to provide a letter
of their interpretation of SB 171.
AT EASE: 3:24:51 PM
RECONVENED: 3:49:45 PM
Co-Chair Stedman MOVED to ADOPT SCS CSHB 310 (FIN) am, work
draft 25-GH2015\L, dated 3/14/08. There being NO OBJECTION,
it was so ordered.
Co-Chair Stedman MOVED to ADOPT SCS CSHB 312 (FIN), work
draft version\M. There being NO OBJECTION, it was so
ordered.
CSHB 310 (FIN) am and CSHB 312 (FIN) were heard and HELD in
Committee for further consideration.
AT EASE: 3:50:46 PM
RECONVENED 3:51:02 PM
[Recording difficulties occurred]
3:51:32 PM
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