Legislature(2013 - 2014)SENATE FINANCE 532
02/15/2013 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB18 || SB19 || SB20 || SB42 || PRESENTATION BY OFFICE OF MANAGEMENT AND BUDGET: FY 2014 BUDGET AMENDMENTS | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
^PRESENTATION BY OFFICE OF MANAGEMENT AND BUDGET: FY 2014
BUDGET AMENDMENTS
SENATE BILL NO. 18
"An Act making appropriations, including capital
appropriations and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
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."
SENATE BILL NO. 20
"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."
SENATE BILL NO. 42
"An Act making supplemental appropriations, capital
appropriations, and other appropriations; amending
appropriations; repealing appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
9:07:21 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR (OMB), stated that she would be
presenting amendments for SB 42, SB 19, and SB 18. She
referred to documents: "Governor Amended Fiscal Summary",
"FY 2013 Supplemental Summary", "FY2013 Supplemental
Amendments", "FY 2014 Governor Amended Summary", "FY2014
Capital Amendments", and "FY2014 Operating Amendments"
(copies on file).
Ms. Rehfeld presented the "Governor Amended Fiscal
Summary." The spreadsheet compared the governor's budgets
in FY 14 versus FY 13; and stated that OMB had updated the
current year's fiscal summary. She pointed out line 3,
which was a revenue adjustment of $48.9 million for the
"Carlson Case." She explained that there had been an issue
with the differentials between what was charged for instate
and non-resident fisherman for commercial fisheries entry
licenses. There was an appropriation of over $82 million as
a settlement, but the State appealed that decision. In
December, the State was awarded back $49 million. The
Department of Revenue (DOR) would include that money in the
spring forecast. She highlighted line 10, and pointed out
the numbers that were specifically on the December
operating budget fiscal summary; line 11 showed the
supplemental requests as of January 28, 2013; and line 12
displayed the February 12, 2013 amendments. Lines 10, 11,
and 12 were intended to help the legislature track changes.
She looked at line 37, and stated that the December budget
contained a $40 billion "place holder" for FY 13. That
place holder had been removed to build in the actual
supplemental requests. She added that in FY 14, OMB
adjusted the $40 million place holder to $20 million. She
stressed that there was an overall intention to slow the
growth of government, and have each department manage their
budgets with the funding that would be appropriated. She
looked at line 68, which displayed a change in the estimate
of the draw that would be required in FY 13. The December
fiscal summary contained $410 million draw, and was
currently reduced to $322.9 million. She pointed to the FY
14 side of the fiscal summary, and stated that the proposed
amendments would reduce the amount of the governor's
spending plan by approximately $19 million. She looked at
line 7, which showed a 1.2 percent operating budget change.
Co-Chair Kelly asked for clarification of line 7. Ms.
Rehfeld responded that the comparison point on the December
fiscal summary showed a FY 13 number that was different
than the current fiscal summary percentage.
Ms. Rehfeld looked at "FY 2013 Supplemental Summary." The
top portion of the document represented the total for SB 42
as presented on January 28, 2013. The original version of
SB 42 totaled $24.456 million. The proposed amendments
added $2.365 million. The total supplemental bill would be
$26.821 million, with the proposed amendments.
Co-Chair Kelly requested that the presentation focus on the
general fund (GF).
Ms. Rehfeld looked at "FY2013 Supplemental Amendments
Submitted February 12, 2013." Line 1 was the FY 13 Alaska
Correctional Officers Salary and Benefits Increase, with a
total GF request at $1.244 million. Line 2 was a formula
program under the Department of Health and Social Services
(DHSS) for subsidized adoptions; which was a mandated
change from the Federal Child Welfare Agency for foster
care participation rates. The federal funds were reduced by
$2.5 million, so the GF would add $2.5 million to continue
the program. Lines 3 and 4 were requests for a carry-
forward of the current year redistricting appropriations.
After the budget was submitted in December, there was a
court decision to reexamine the redistricting work. Line 5
represented a request for $106,200 for a settlement related
to the Kuspuk School District; and a contaminated site
clean-up for the Aniak Vocational School.
9:17:00 AM
Ms. Rehfeld announced that the government of Japan provided
$5 million to the United States for tsunami debris cleanup;
with an anticipation of approximately $1 million for
cleanup in Alaska.
Ms. Rehfeld looked at "Governor Amended Fiscal Summary."
She stated that the total amended request was $16.179
million, which included both operating budget and capital
budget changes. The amended operating budget displayed an
overall reduction of almost $11 million, including $3
million reduction in GF.
Ms. Rehfeld looked at, "FY2014 Operating Amendments." Line
4 represented a technical correction for Department of
Commerce, Community and Economic Development (DCCED);
because the same dollar amount had been inadvertently
removed twice. Line 5 was the FY 14 amount for the Alaska
Correctional Officer's bargaining unit agreement; 2 percent
was built into the base, and 2 percent for the full year
cost for the geographic differential. Line 6 was a $305,000
request for Mt. Edgecumbe Boarding School dormitory
management contract costs. There were several recent
increase costs for Mt. Edgecumbe, and this request was
beyond the Department of Education and Early Development's
(DEED) management ability. Lines 7 and 8 were requests for
the Pioneer Homes for unrealized revenue coupled with
increased costs for food services, laundry, and janitorial
services.
Senator Dunleavy queried the cost per student in the Mt.
Edgecumbe dormitory. Ms. Rehfeld agreed to provide that
information.
Ms. Rehfeld looked at line 10, which was a request for
security upgrades in the Anchorage Office of Children
Services. Line 12 was a $2.110 million formula adjustment
for foster care rates, and a component related to a
settlement of a lawsuit. Line 13 was the $2.5 million
formula change for the calculation rate; because the
federal funds were no longer available. She pointed out
lines 15 through 20, which were related to department
structural changes. Line 22 was a $163,800 request for a
radio dispatcher class study. Line 26 was a $1.75 million
request for the redistricting board, and was a multi-year
appropriation. Line 27 displayed a decrement of $17.3
million for debt service to the general obligation (GO)
bonds; because the DOR updated their debt service estimate
based on the timing and rates at which the bonds would be
sold. Line 28 was a request to capitalize the Sustainable
Energy Transmission and Supply Development (SETS) Fund; to
transfer $125 million from the Alaska Housing Capital
Corporation into the SETS Fund. Line 29 was an $800,000
decrement, specific to the fund transfer for the Oil and
Hazardous Substance Release Prevention and Response Fund.
9:27:27 AM
AT EASE
9:29:33 AM
RECONVENED
9:29:41 AM
Ms. Rehfeld looked at "FY2014 Capital Amendments." Line 2
was a $727,000 reappropriation from the Major Maintenance
Grant List for a Tununak K-12 School major maintenance
project. She stated that there were four new requests for
federal receipts related to projects that recently
completed the STIP amendment process, and the capital
amendments included the grants under the National Petroleum
Reserve (NPR) Alaska Grant Program.
Senator Dunleavy wondered if there was a reduction in
federal funds for the NPR. Ms. Rehfeld replied that the
dollar amount in the initial budget proposal was an
estimate. She furthered that DCCED worked directly with
communities in the impacted areas for the NPR grant
allocations. Once DCCED refined the process, OMB refined
the appropriation amount.
SB 18 was HEARD and HELD in committee for further
consideration.
SB 19 was HEARD and HELD in committee for further
consideration.
SB 20 was HEARD and HELD in committee for further
consideration.
SB 42 was HEARD and HELD in committee for further
consideration.
9:32:50 AM
AT EASE
9:32:59 AM
RECONVENED
9:36:39 AM
Co-Chair Kelly discussed the week's schedule.
Co-Chair Meyer announced the following week's schedule.
Vice-Chair Fairclough expressed concern regarding the
effect of inflation on individuals' incomes. Co-Chair Kelly
agreed to address that issue at a later meeting.
| Document Name | Date/Time | Subjects |
|---|---|---|
| FY2013_Supplementals_2-12-2013_Amendments.pdf |
SFIN 2/15/2013 9:00:00 AM |
|
| FY2014_Capital_Amend_Spreadsheet.pdf |
SFIN 2/15/2013 9:00:00 AM |
|
| FY2013_Supplementals_Submitted_February_12_2013_Summary.pdf |
SFIN 2/15/2013 9:00:00 AM |
|
| FY2014_Gov_Amend_Summary.pdf |
SFIN 2/15/2013 9:00:00 AM |
|
| FY2014_Governor_Amended_Fiscal_Summary.pdf |
SFIN 2/15/2013 9:00:00 AM |
|
| FY2014_Operating_Amend_Spreadsheet.pdf |
SFIN 2/15/2013 9:00:00 AM |