Legislature(2013 - 2014)SENATE FINANCE 532
01/29/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB19 | |
| SB18 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 18 | TELECONFERENCED | |
| *+ | SB 19 | TELECONFERENCED |
SENATE BILL NO. 19
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, amending
appropriations, and making reappropriations; and
providing for an effective date."
9:03:57 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, stated that she had provided a
summary of the highlights of the bills at a previous
meeting. She referred to "Operating Budget -
UGF/DGF/Other/Fed Summary by Department; Senate Bill 19/
House Bill 65" (copy on file). She noted that the summary
included the mental health portions of the operating
budget, so the outline included both SB 18 and SB 20. The
total budget for mental health was $240.891 million. She
looked at page 2, which was a comparison of the
unrestricted general fund (UGF) changes from the FY 13
management plan to FY 14 governor proposed budget.
Co-Chair Kelly queried the total budget the mental health
portion of the budget. Ms. Rehfeld responded that the
mental health operating budget totaled $240.891 million;
which included UGF of $205.921 million.
9:06:37 AM
Ms. Rehfeld shared that the total number that was proposed
for the operating budget was $9.795 billion. The UGF was
just over 59 percent at $5.7 billion; designated general
funds (DGF) was 8 percent at roughly $777.4 million; other
funds were $1.283 billion at 13 percent; and federal funds
were approximately $2 billion at 20 percent of the total
budget. She explained that the budget process begins in
July, and it takes months to complete the budget proposals.
She remarked that the supplemental budget bill would be
introduced the following day, and the budget amendments
would be due to the legislature on the 30th day of the
session. She stressed that the budget work continued
throughout the year. The structure of SB 19 contained 36
sections, and was 67 pages long.
Ms. Rehfeld looked at Sections 1 through 3 of SB 19, which
were known as the number sections of SB 19. These sections
totaled $6.741 billion. The sections were organized by
department; and by appropriation and allocation within the
department. She remarked that some particular components in
these sections may be specific appropriation language, such
as "carry forward of program receipts." Sections 2 and 3
were the breakdowns of the funding sources. Section 2 was
funding sources by department and Section 3 was the total
of all funding sources for Section 1.
Ms. Rehfeld explained that Section 4 was the language
section of SB 19. She stated that the language section
included funding for various corporations: Alaska Aerospace
Corporation; Alaska Housing Finance Corporation (AHFC);
Alaska Permanent Fund Corporation; Alaska Industrial
Development and Export Authority (AIDEA); the state
catastrophic and working reserve funds; shared taxes under
the Department of Commerce, Community and Economic
Development (DCCED); and other various items.
Ms. Rehfeld stated that Section 13 was the particular
appropriation of $25 million for education, which was
addressed at a previous meeting. This appropriation was
specific funding that was targeted for energy costs in
school districts, but was allocated and distributed to
school districts on the adjusted average daily membership.
Ms. Rehfeld explained that Section 20 was known as the
"fuel trigger." This section was introduced some years
prior in an appropriation language, rather than building
ongoing costs into the base of agencies' budgets. The
preference was to include a fuel trigger at different
prices. The fuel trigger estimate going into FY 14 was at
$36 million; allocated twice a year. There was currently a
thorough analysis on individual departments' fuel and
utility costs, in order to determine if this particular
language should be changed.
Co-Chair Kelly wondered if the fuel trigger estimate was
$36 million. Ms. Rehfeld responded in the affirmative. She
looked at page 53 of the bill, which showed the allocation
based on $100 per barrel or more of $18 million that was
distributed twice a year. She furthered that the current
year had distributed approximately $7 million. The
departments were currently adjusting, and would provide
estimates at a later date.
9:11:44 AM
Ms. Rehfeld stated that Section 23 was the debt service
obligations. This included debt service and bond payments
for previously approved debt. One of the largest components
of this section was the School Debt Reimbursement program
on page 59, lines 17 through 21. The projection for FY 14
school debt reimbursement would be $128.263 million.
Section 24 was the federal and other program receipts
language. It was Legislative Budget and Audit (LB&A)
language that addressed federal receipts as it came to the
State and State agencies. Section 25 contained a number of
capitalizations for different funds, like disaster relief
and the replenishment of the revenue sharing program.
Section 26 outlined the fund transfers. The largest fund
transfer was the Public Education Fund transfer of $1.2
billion to forward fund education. Section 27 was specific
to the State retirement systems unfunded liability: $312.5
million for Public Employee Retirement System (PERS);
$316.8 million for the Teacher Retirement System (TRS); and
$4.5 million for the Judicial Retirement System. The
retirement system budget was roughly a $20 million over the
current year budget. Section 28 was language related to
salary and benefits for various bargaining unit agreements
in the University of Alaska. Currently, the general
government, supervisory, and confidential employees units
were under negotiations.
Co-Chair Kelly wondered if the benefits that were not up
for negotiation were ratified year by year. Ms. Rehfeld
replied that the language in the bill referred to all of
the bargaining agreements that were ratified by their
members, so the request continued those that were already
agreed upon.
Co-Chair Kelly wondered if the legislature had to approve
the benefits year by year. Ms. Rehfeld replied that the
legislature had to approve the benefits year by year.
Senator Hoffman looked at Section 27. He relayed that there
were new requirements that local governments declare their
liabilities for PERS and TRS. He wondered if Department of
Administration (DOA) had addressed this issue. Ms. Rehfeld
replied that it was a new requirement, and furthered that
the State had agreed to fund beyond the current cap of 22
percent for PERS and 12.56 percent for TRS. There was not a
final decision whether there would be a change to reflect
that increase in the State's financial statements.
9:16:46 AM
Senator Hoffman wondered if there was communication between
the municipalities and DOA regarding the possibility of
substantial liabilities on the municipalities. Ms. Rehfeld
replied that DOA had been in contact with the
municipalities about the issue, and how it would appear on
their financial statements. She shared that it was a
continuing conversation that DOA had been engaged in.
Ms. Rehfeld explained that Section 29 was for shared taxes
to local governments and other entities: the fisheries tax;
fuel tax; cost recovery; and cruise ship seven ports of
call. Section 32 was the budget reserve language, that
would allow a draw on the statutory budget reserve (SBR)
should the revenue be insufficient in FY 14 to cover the
projected expenditures. Sections 33 and 36 were the lapsing
provisions, retroactivity, and effective dates. She
remarked that the majority of SB 19 would take effect July
1, 2013 for FY 14.
Ms. Rehfeld restated that the FY 14 Operating Budget
included full-funding and forward-funding for K-12
education; Medicaid and other formula programs; Permanent
Fund appropriations for dividend and inflation-proofing;
energy assistance; tourism marketing; and the bargaining
unit components that were a work in progress.
Co-Chair Kelly requested more information regarding the
catastrophic and the working reserves. Ms. Rehfeld replied
that there were two components. There was a reimbursable
services agreement to pay for working reserve, which was
terminal leave or leave cash-in for employees. The working
reserve included a payroll deduction that was built into
the rates and the budget positions; and a reimbursable
services agreement. There was language in the appropriation
bill that would allow funds to "sweep" into working reserve
and the state catastrophic reserve.
9:21:23 AM
Co-Chair Kelly requested further information regarding the
impact of the operating budget for years out to 2020, from
the FY 08, FY 09, and FY 10. Ms. Rehfeld agreed to provide
that information.
Senator Dunleavy wondered if there was a process to
determine how much State money was needed to support the
$2.7 billion in federal receipts. He specifically queried
whether it was in addition to the budget, or if it was
written into the budget. Ms. Rehfeld replied that there
were specific match requirements and maintenance
requirements for many capital requests. The federal funds
were often matched with the State contributions. She
offered to provide more detailed information at a later
date.
Senator Dunleavy wondered whether the federal funds were
linked to the State, or the States were linked to the
federal funds. Ms. Rehfeld responded that if the state had
participated in a federal program, the state agreed to
commit a certain amount of resources in order to receive
the federal dollars.
Senator Dunleavy remarked that many Alaskans felt that the
budget was growing, but revenue was not keeping up with the
budget. He wondered if there was a discussion regarding
possible statutes or regulations that would reduce the cost
of government. Ms. Rehfeld replied that there were
conversations each year that focused on the current
priorities that were already written in statute.
SB 19 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| FY2014 Governor Capital Budget Department Summary 1 29 2013.pdf |
SFIN 1/29/2013 9:00:00 AM |
SB 18 |
| FY2014 Operating Budget - Summary by Department 01 29 2013.pdf |
SFIN 1/29/2013 9:00:00 AM |
SB 19 |
| 2 6 13_Sen Kelly Sen Meyer- State Match and Maintenance of Effort Requirements for Federal Funds.pdf |
SFIN 1/29/2013 9:00:00 AM |
SB 19 |