02/20/2015 09:00 AM Senate FINANCE

SENATE BILL NO. 40                                                                                                            
                                                                                                                                
     "An  Act  making supplemental  appropriations,  capital                                                                    
     appropriations,   and   other  appropriations;   making                                                                    
     reappropriations;  amending  appropriations;  repealing                                                                    
     appropriations;  making  appropriations  to  capitalize                                                                    
     funds; and providing for an effective date."                                                                               
                                                                                                                                
9:51:33 AM                                                                                                                    
                                                                                                                                
Senator Dunleavy  wondered how  the budget  approach reduced                                                                    
the budget by 25 percent.                                                                                                       
                                                                                                                                
PAT  PITNEY,  DIRECTOR,  OFFICE OF  MANAGEMENT  AND  BUDGET,                                                                    
OFFICE OF THE  GOVERNOR replied that the  budget reduced the                                                                    
agency  operating budgets  by approximately  6 percent.  She                                                                    
stated that,  over a four-year  timeframe, it was  the first                                                                    
step in a  25 percent reduction. She stressed  that this was                                                                    
a first step, and remarked  that the solutions would be more                                                                    
dramatic as the pressure was building.                                                                                          
                                                                                                                                
Ms.  Pitney looked  at  line  4 of  the  FY 15  Supplemental                                                                    
Budget  Amendment Spreadsheet  (copy  on  file). She  stated                                                                    
that it  was a request  for emergency repairs for  the State                                                                    
Forest Road  System in the  Tanana Valley State  Forest. She                                                                    
shared  that it  was a  request that  had been  presented on                                                                    
multiple occasions. The need  became more apparent recently,                                                                    
which was why it did not  appear in the previous versions of                                                                    
the supplemental  budget. The request  was an  $896,000 road                                                                    
repair, which  was needed because  of the rain.  The revenue                                                                    
from the forest was approximately  $250,000 per year, so the                                                                    
repair was required to maintain the revenue.                                                                                    
                                                                                                                                
Ms. Pitney looked at line  9, which was a reappropriation of                                                                    
two  projects.  The Harbor  Program  would  not be  complete                                                                    
because of an alternative  funding source. The Glenn Highway                                                                    
ruts would  be complete, plus additional  federal funds. The                                                                    
reappropriations allowed DOT/PF to install injection wells.                                                                     
                                                                                                                                
Ms. Pitney  addressed lines  10 and  11, which  were airport                                                                    
repairs  fund source  changes. They  were originally  in the                                                                    
construction fund and were moved  to the airport fund. These                                                                    
were  net zero  changes, but  changing the  fund source  for                                                                    
project completions.                                                                                                            
                                                                                                                                
Ms. Pitney  looked at line 12  was a repeal of  $2.7 million                                                                    
for Alaska Gasline Inducement Act (AGIA).                                                                                       
                                                                                                                                
Ms.  Pitney  explained  lines  13 and  14.  The  items  were                                                                    
intended  to  note that  there  were  appropriations in  the                                                                    
previous year  that exceeded the  fund balance of  the funds                                                                    
that they were originated.                                                                                                      
                                                                                                                                
Vice-Chair  Micciche felt  that the  final operating  budget                                                                    
would result in a great amount of discomfort.                                                                                   
                                                                                                                                
SB  40  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.