Legislature(2017 - 2018)HOUSE FINANCE 519
02/01/2018 01:30 PM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB321 | |
| HB287 | |
| Public Testimony | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 321 | TELECONFERENCED | |
| + | HB 176 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 287 | TELECONFERENCED | |
HOUSE BILL NO. 321
"An Act making supplemental appropriations and other
appropriations; making an appropriation to capitalize
a fund; amending appropriations; and providing for an
effective date."
1:36:37 PM
NEIL STEININGER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT
AND BUDGET, OFFICE OF THE GOVERNOR, introduced himself. He
referred to two documents distributed to committee members:
"FY2018 Supplemental Summary" and "FY2018 Supplemental Bill
Spreadsheet" (copy on file). He remarked that the total
Supplemental request was $7,895.7 million in Undesignated
General Funds (UGF) and the all funds total was negative
$5.5 million.
1:37:54 PM
Mr. Steininger moved to the document; "FY 2018 Supplemental
Spreadsheet" and explained the items in the bill. He began
with page 1, the Operating Numbers Section, line 2:
Line 2
Department of Commerce, Community, and Economic
Development
Banking and Securities Component
Financial Examiner I/II for Alaska Native Claims
Settlement Act Filings and Support
The division must timely process ANCSA corporate
filings and respond to complaints within 10 business
days. Without this position, the division would be
forced to reduce resources tasked with examinations
and enforcement activities for other programs.
UGF $0.0 DGF $103.4
Other Funds $0.0 Federal Funds $0.0
Representative Guttenberg asked about the difference
between the current supplemental budget request and the
similar item in the FY 19 operating budget request. Mr.
Steininger stated that the supplemental request allowed the
Department of Commerce, Community and Economic Development
(DCCED) to hire the position in FY 18. He reported that the
volume of filings had dramatically increased, and the
position was necessary as soon as possible.
1:39:10 PM
Mr. Steininger reviewed lines 3 and 4.
Line 3
Department of Environmental Conservation
Solid Waste Management
Increase Program Receipt Authority
The Solid Waste Management program conducted a fee
study in FY2017. Revised fee regulations have gone
through public notice, review, and comment, and were
enacted effective October 27, 2017. The Department
anticipates revenue from the new fees will exceed
general fund program receipt authority in FY2018.
UGF $0.0 DGF $35.
Line 4
Department of Environmental Conservation
Air Quality
Decrease Program Receipt Authority
The Division of Air Quality expects to under collect
general fund program receipt authority in FY2018 due
to fluctuations in the amount of Title I permit work
from year to year.
UGF $0.0 DGF ($35.0)
Other Funds $0.0 Federal Funds $0.0
Mr. Steininger turned to Line5.
Line 5
Department of Health and Social Services
Front Line Social Workers
A recent amendment to the section of the Public
Assistance Cost Allocation Plan (PACAP) covering the
Office of Children's Services (OCS) changes the
allocation methodology for the Front Line Social
Workers component, the largest personal services
component within the Office of Children's Services
budget. The estimated increase is associated primarily
with the claiming for the Title IV-E foster care,
adoption, and guardianship programs.
UGF $0.0 DGF $0.0
Other Funds $0.0 Federal Funds $6,500.0
Vice-Chair Gara asked whether the transaction assumed state
match money was available. Mr. Steininger wanted to refer
to the Department of Health and Social Services (DHSS). He
understood that the transaction reflected an attempt to
increase the amount of federal dollars or the "percent of
the expenditures that were attributable to federal money by
the division." Vice-Chair Gara did not understand the link
between PACAP and the OCS. Mr. Steininger believed the
PACAP covered more than just the Division of Public
Assistance. He deferred to DHSS for details.
1:41:17 PM
Mr. Steininger moved to Line 6.
Line 6
Department of Health and Social Services
Foster Care Base Rate
Decline in Child Support Payment Collections
The Office of Children's Services expects significant
reductions in collections of child support and social
security payments.
UGF $1,000.0 DGF $0.0
Other Funds $0.0 Federal Funds $0.0
Mr. Steininger elaborated that OCS received child support
collected by the Department of Revenue (DOR) for children
in state custody. In recent years there had been a
significant decline in child support collections that
impacted the division. He noted that OCS was experiencing a
decrease in Social Security benefits from children in its
care.
Co-Chair Seaton recognized that Representative Ortiz joined
the meeting.
Representative Pruitt asked why child support collections
were declining. Mr. Steininger replied that through
discussions with the division and DOR he discovered that
many factors lead to the decline. He elucidated that
economic factors, unemployment, and the inability to
collect from Permanent Fund Dividend (PFD) garnishments
were issues related to the decrease.
1:43:40 PM
Mr. Steininger addressed Line 7.
Line 7
Department of Health and Social Services
Foster Care Special Need
FY2017 Special Need Payments Made in FY2018
At the close of FY2017 the Office of Children's
Services pushed payments for FY2017 obligations into
FY2018 in the amount of $2,895.7.
UGF $2,895.7 DGF $0.0
Other Funds $0.0 Federal Funds $0.0
Mr. Steininger reported that at the end of FY 17 OCS had to
defer some payments to FY 18 due to a lack of funds. The
item would cover the payments that were pushed into FY 18
and prevent a "domino effect" of pushing payments into FY
19.
Representative Ortiz asked Mr. Steininger to define
"special needs." Mr. Steininger responded that special
needs for foster children would be clothing, medical care,
etc., and were above and beyond the base foster care
payments.
Vice-Chair Gara clarified that Mr. Steininger was not
talking about youth with special needs but foster children
needing things that were not included in the base rate. Mr.
Steininger responded affirmatively.
1:45:41 PM
Mr. Steininger continued to Page 2, line 8.
Line 8
Health and Social Services
Alaska Temporary Assistance Program
Temporary Assistance for Needy Families Maintenance of
Effort
The maintenance of effort (MOE) for the Temporary
Assistance for Needy Families (TANF) program, mandated
by the Federal Government, is primarily met by the
expenditures within ATAP. The state received
notification of penalty for failure to meet the MOE
obligation for federal fiscal year 2017.
UGF $2,000.0 DGF $0.0
Other Funds $0.0 Federal Funds $0.0
Mr. Steininger reported that the item reflected a notice
from the federal government that certain criteria had not
been met for TANF (maintenance of effort).
Representative Guttenberg was under the impression that the
maintenance of effort was not specific to a single program
but applied across the board to other programs. He asked
for further clarification. Mr. Steininger replied that
there were several areas where the state could meet the
maintenance of effort but TANF was the primary program. He
explained that the department was attempting to find
alternative sources to meet the maintenance of effort and
some were not successful. He offered to provide detailed
information regarding the alternate sources. The alternate
sources needed to be approved through the Center for
Medicaid Services (CMS). Representative Guttenberg
commented that he suspected that a program cut of
approximately $2 million created the problem and wanted to
explore the issue.
Vice-Chair Gara asked whether the state was incurring a $2
million penalty to the federal government for not meeting
the maintenance of effort. Mr. Steininger knew that the
transaction avoided further penalty and would provide
further detail regarding the penalty later. Vice-Chair Gara
indicated that the department had warned the legislature in
2016 that the scenario could happen. He noted that the
"committee decided not to believe the department."
Mr. Steininger reviewed Line 9.
Line 9
Department of Revenue
APFC Investment Management Fees
Investment and Custody Fees
Unanticipated market performance or manager changes
could cause the actual amount of fees paid to exceed
projections. As a prudent course of action, $5,000.0
supplemental authority for the Investment Management
Fee allocation will ensure that APFC has sufficient
funds to meet our contractual obligations.
UGF $0.0 DGF $0.0
Other Funds $5,000.0 Federal Funds $0.
1:49:36 PM
Mr. Steininger moved to the Language Section of the bill
beginning on line 18.
Line 18
Special Appropriations
Comprehensive Insurance Program
Payment from Premera to the Reinsurance Program
Adjustment to the state contribution to the calendar
year 2017 reinsurance program to reflect reimbursement
from Premera Blue Cross Blue Shield.
UGF $0.0 DGF ($25,000.0)
Other Funds $0.0 Federal Funds $0.0
Mr. Steininger elaborated that in late November or early
December 2018, Premera refunded the state $25 million for
the Alaska Comprehensive Health Insurance (ACHIA). The $25
million reduction left a total balance of $30 million in
the program. He highlighted line 19:
Line 19
Fund Capitalization
Disaster Relief Fund
Disaster Relief Funding
This increase is needed due to the low balance of the
disaster relief fund and the estimated amount needed
for spring 2018 disasters. Sufficient general fund
authority of $2,000,000 currently exists in the FY2019
budget.
UGF $2,000.0 DGF $0.0
Other Funds $0.0 Federal Funds $0.0
Mr. Steininger relayed that the spreadsheet inadvertently
omitted two bargaining agreements included in the bill that
had been completed with no impact to the budget for the
University of Alaska system.
1:51:14 PM
Mr. Steininger discussed the ratification section beginning
on page 3, line 23. He reminded committee members that the
transactions were ratifications of prior year expenditures.
Ratifications
Line 23
Department of Health and Social Services
Pioneer Homes
FY2016, AR H001 Alaska Pioneer Homes
UGF $467,693.27
Mr. Steininger reported that the item represented a
shortfall in revenue. He moved to line 24.
Line 24
Department of Health and Social Services
Public Health
FY2016, AR H007 Public Health
UGF $1,350,310.26
Mr. Steininger indicated there had been a shortfall in
revenues. He turned to item 25.
Line 25
Department of Health and Social Services
Medicaid Services
FY2016, AR H012 Medicaid Services
UGF $8,715,670.72
Mr. Steininger indicated that while there was a shortfall
in receipts in 2016 the department had recouped the
revenue, but it was posted in FY 17.
Mr. Steininger moved to Line 26 and Line 27, which were
Capital Budget items.
Line 26
Department of Health and Social Services
Capital
FY2010, AR H264 Mental Health Housing
UGF $8,824.49
Line 27
Department of Health and Social Services
Capital
FY2011, AR H260 Mental Health Home Modification and
Upgrades to Retain Housing
UGF $7,355.06
1:53:01 PM
Mr. Steininger presented line 28, which was a capital item.
Line 28
Department of Health and Social Services
Capital
FY2016, AR HUBC Unbudgeted Capital RSA's
UGF $300,310.83
Mr. Steininger reported that the item represented a
shortfall in revenues.
Representative Thompson asked what RSA meant. Mr.
Steininger answered that RSAs were Reimbursable Services
Agreements that were contracts between state agencies for
providing services.
1:53:39 PM
Mr. Steininger concluded with line 29.
Line 29
Department of Public Safety
Bureau of Highway Patrol
AR 47863-13 Bureau of Highway Patrol Special Project
UGF $4,304,930.00
Representative Pruitt asked what the initial appropriation
was for line 29. He requested additional detail.
1:54:26 PM
BRIAN FECHTER, POLICY ANALYST, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR, explained that the federal
government denied certain expenditures for a grant that was
passed through the Department of Transportation and Public
Facilities (DOT) to the Department of Public Safety (DPS).
The money was only to be used for alcohol enforcement and
was used for other things.
Representative Pruitt asked if the department was aware of
the grant requirements and "knowingly jeopardized the
federal funding." Mr. Fechter responded that it was a
matter of interpreting the original grant agreement. He
deferred to the department for further detail.
Representative Pruitt requested an answer from the
department regarding a $4 million misinterpretation.
Co-Chair Seaton asked the chairman of the DPS subcommittee
to flush the details out during subcommittee meetings.
HB 321 was HEARD and HELD in committee for further
consideration.
1:56:53 PM
AT EASE
1:57:46 PM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 321 FY2018_Supplemental_Spreadsheet_2-1-18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| HB 321 FY2018_Supplemental_Backup_2-1-2018.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| FY2018_Supplemental_Summary_1-29-18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| DHSS Review WDR-HB176-2-6-18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 176 |
| HB 321 OMB Response HFIN Meeting 2.1.18.pdf |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |
| HB 321 FY2018 Supplemental UNAC & FFU.PDF |
HFIN 2/1/2018 1:30:00 PM |
HB 321 |