Legislature(2007 - 2008)HOUSE FINANCE 519
03/10/2008 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB330 | |
| SB256 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 256 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 330 | TELECONFERENCED | |
CS FOR SENATE BILL NO. 256(FIN) am(efd fld)
An Act making supplemental appropriations, capital
appropriations, reappropriations, and other
appropriations; making an appropriation to the senior
benefits payment program; amending certain
appropriations; ratifying certain expenditures; and
making appropriations to capitalize funds.
Co-Chair Chenault highlighted his intended action for SB
256.
4:25:22 PM
SHARON KELLY, STAFF, REPRESENTATIVE MIKE CHENAULT, provided
a sectional analysis of the \V.a version of CS SB 256(FIN)
am(efd fld). She indicated that no spreadsheet is
available yet.
Ms. Kelly advised that the total general funds amount to
$4.385 billion dollars; federal funds decreased by $13.284
million dollars and other funds are decreased by $43.166
million dollars.
Sections 1-3, Pages 1-30, address salary contract funding
appropriations, including transactions for the general
government unit (GGU) & the supervisory unit. The
indicated amounts include the adjustments.
4:26:29 PM
Representative Hawker asked for an explanation of GGU. Ms.
Kelly informed it represents the general government unit,
which is one of the State's bargaining groups.
4:27:09 PM
Ms. Kelly noted Sections 4-6, Pages 31-41, system wide
adjustments between the Administration and the other
departments. It was requested by the Office of the
Governor.
Sections 7-9, Pages 42-49, contain all regular supplemental
appropriation requests. She interjected that this is the
first year, one bill contains all those requests. In the
past, there has been both a fast & a slow track
supplemental. The version before the Committee includes
all fast track items and the majority of the slow track
items. The following sections address the agency items:
DEPARTMENT OF ADMINISTRATION
Office of Public Advocacy (OPA) $2.4 million
Public Defender Agency $820 thousand
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Qualified Trade Association (QTA) adjustment
To the Independent Traveler $800 thousand
Alaska Energy Authority (AEA) $1.2 million
For PCE fund
Banking and Securities $95 thousand
Insurance Operations $140
thousand
Regulatory Commission of Alaska (RCA) $500 thousand
4:29:06 PM
DEPARTMENT OF CORRECTIONS
Correctional Academy $145.4
thousand
Institution Director's Office $1.852
million
Inmate Health Care $2.427 million
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
Ms. Kelly pointed out the three transactions that adjust
the Teacher's Retirement System (TRS) relating to fund
source adjustments from last year:
Student & School Achievement 0
Head Start Grants 0
Mt. Edgecombe Boarding School 0
4:29:49 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Behavioral Health Medicaid Services reduction
-$6.963
million
RECESS: 4:30:30 PM
RECONVENE: 4:33:39 PM
Representative Gara referenced Page 43, Line 28; he asked
if cutting services means that fewer patients are served.
Ms. Kelly explained that the amendments were provided by
the Office of the Governor and reduce authorization to
reflect current Medicaid projections. She anticipated that
the Department will determine how much could be spent and
will make the appropriate adjustments.
Foster Care Base Rate $1.456 million
Foster Care Special Need $699 thousand
Medicaid Services/Health Care Services Medicaid
Reduction -$46.548
million
Juvenile Justice
Nome Youth Facility $150 thousand
Johnson Youth Center $250
thousand
Probation Services $221 thousand
Public Assistance decrement
Adult Public Assistance -$700 thousand
Women, Infants & Children $852.3
thousand
Certification & licensing $945
thousand
Senior & Disabilities decrement -$1.654 million
4:36:57 PM
DEPARTMENT OF LAW
Oil, Gas and Mining/Civil Division $1.250 million
4:37:15 PM
DEPARTMENT OF NATURAL RESOURCES
Resource Development/Oil & Gas $85
thousand
Fire Suppression $109.2
thousand
Parks & Recreation management/ fund source change 0
4:37:46 PM
DEPARTMENT OF PUBLIC SAFETY
Fire Prevention Operations $13.1 thousand
Fire Service Training $17.7 thousand
Alaska State Trooper projects total $2.908
million
Council on Domestic Violence and Sexual Ass. $230 thousand
Statewide Support component totals $50.3 thousand
4:40:57 PM
DEPARTMENT OF REVENUE
Taxation & Treasury $15 thousand
Alaska Housing Finance Corporation $1.262 million
Alaska Permanent Fund Corporation $6 million
4:41:49 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Administration & Support total component $65
thousand
State Equipment Fleet $326 thousand
Alaska Marine Highway System $1.880 million
4:43:14 PM
ALASKA COURT SYSTEM
Judicial Council $63 thousand
4:43:30 PM
Ms. Kelly referenced Sections 10-12, Pages 50-53. Those
sections address capital projects including capital numbers
and the capital language. The capital numbers include the
$68 million dollar replacement to the General Fund for the
master lease line of credit. That fund source has no
funding available - $10 million for the build-out and
support projects, $41 million for statewide administrative
replacement systems/phase 2, financials, procurement
systems and $17 million dollars for the telephone systems.
Co-Chair Chenault asked if that request had been submitted
by the Governor. Ms. Kelly thought it had been brought
forward by the Senate.
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Ms. Kelly pointed out the $300 thousand dollar request for
organizational grants and $49.4 thousand dollars for
prescription drug monitoring.
DEPARTMENT OF NATURAL RESOURCES
Ms. Kelly noted the $117.1 thousand dollars indicated for
the Eagle River Nature Center planning and design
component.
ALASKA COURT SYSTEM
Ms. Kelly said the Fairbanks Supreme Court Justice Chambers
recommended the proposed allocation for $629.7 thousand
dollars.
DEPARTMENT OF CORRECTIONS
Ms. Kelly addressed Sections 10-12, Pages 50-53, $2.5
million dollars directed to the Point Mackenzie
Correctional Facility center pre-construction cost
reimbursement and $2 million dollars for the Kodiak Jail
expansion.
DEPARTMENT OF REVENUE
Ms. Kelly continued enumerating requests: the Alaska
Housing Energy Efficiency Program for the amount of $200
million dollars and the Alaska Housing Home Energy Rating
Rebate program for $100 million dollars.
4:45:42 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Susitna Valley High School beacon system $180
thousand
Petersburg Airport runway safety system $4.35 million
Unalaska airport analysis $1.5
million
Kipknock Airport reconstruction $9 million
Haines Ferry Terminal $3 million
Ketchikan extension completion $750
thousand
4:46:20 PM
Ms. Kelly referenced the Language Sections 16-32, Pages 77-
89, which include are the following items:
DEPARTMENT OF CORRECTIONS
Population management community jails $45 thousand
Out of State contractual $50 thousand
Fund source change from federal receipts
To General Fund for federal prisoners
Parole Board unpaid invoice $400 hundred
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
School Performance incentives $1.4 million
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Ocean Ranger program implementation $2.8
million
OFFICE OF THE GOVERNOR
Expenses for upcoming State election $584.2
thousand
4:47:40 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
One time phone purchase for Anchorage $320.6
thousand
Senior Benefits payment program $18.492
million
DEPARTMENT OF LAW
Sexual Assault/Domestic Violence earmark $127.8
thousand
rd
3 Judicial District (ASADV) earmark $399.2
thousand
th
4 Judicial District (ASADV) earmark $410 thousand
Civil Division:
Judgments and Settlements $588
thousand
Human Service and Child Protection $500 thousand
Administration and Support $3.1 thousand
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Central Region Support Services $500 thousand
Increase of cost of maintenance/Anchorage $97 thousand
4:48:53 PM
DEBT SERVICE
Reductions to Atwood Parking Garage Debt $2.9
million
GENERAL OBLIGATION BONDS (GO)
Rebate liability due to IRS GO series 2003 $4.5 million
4:49:18 PM
FUND CAPITALIZATION
Contribution to the CBR $2.6 billion
Power Cost Equalization (PCE) $1.2
million
Statutory Budget Reserve $1 billion
SPECIAL APPROPRIATIONS
White Stone community $34.3 thousand
Revenue Sharing Program $180
million
Grants to PERS employers excess contributions $13.2 million
4:50:15 PM
Oil and Gas Tax Credit Fund $125 million
4:50:40 PM
Co-Chair Chenault pointed out that Section 13 had not been
mentioned and that information from that will be presented
at the next meeting, addressing capital projects. A work
draft is currently being prepared.
4:51:10 PM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET
(OMB), offered to answer questions of the Committee.
Representative Gara inquired when excluding the capital
projects, how does the proposed budget compare to the
general fund reduction in the fast and slow track
supplemental combinations from the past couple years. Ms.
Rehfeld did not have access at this time to those numbers.
She commented that each year carries its own unique
challenges. She referenced the key area in the proposed
budget, which is tax credit in the amount of $125 million
dollars. That number is significant & that plus the Senior
Benefits changes the amount. Last year, in the fast track
supplemental, there were different items, making it
difficult to compare.
Representative Gara discussed the overall cost of the bill
and asked about backing out capital projects. Co-Chair
Chenault did not yet know the numbers but imagined they
could be "backed out". Ms. Rehfeld interjected that the
total bill amounts to $4.3 billion dollars including
capital projects, approximately $51.5 million dollars.
Representative Gara observed the cost of a $4.3 billion
dollar budget. Ms. Rehfeld corrected, the Capital Budget
Reserve (CBR) deposit was $2.6 billion dollars and $1
billion dollars would be moved into the Statutory Budget
Reserves.
In response to Representative Gara, Ms. Rehfeld explained
that the non-general fund component legislation consists of
federal funds, other funds and decrements to the federal
funds based on changes to the Medicaid program. She
anticipated that the Legislative Finance Division (LFD)
would provide a spreadsheet.
Representative Gara clarified that the supplemental
includes $67.9 million dollars in other funds. Ms. Rehfeld
reflected that the bill's total is $4.329 billion dollars,
including all funds. There is a negative number decrement
in other funds in the amount of $43 million dollars,
including a decrement of $13.2 ton federal dollars. There
have been adjustments made to other funding sources and
federal funds. Ms. Rehfeld pointed out there remains
approximately $85 million general fund dollars, which has
been broken down between Section 13, oil and gas tax credit
and revenue sharing.
4:55:44 PM
Co-Chair Chenault indicated that a spreadsheet would be
provided at the next meeting.
Representative Hawker asked how the Administration felt
about the fund source change to the master lease credit
financing. Ms. Rehfeld understood that the Administration
would support that change.
Representative Hawker commented that the use of master
lease funds is less desirable than general funds. Ms.
Rehfeld reminded members that the budget is only a planning
tool and that circumstances change and adjustments must be
made.
4:57:29 PM
Representative Gara asked for an explanation to reductions
made on Pages 43 & 44, to behavioral health services,
Medicaid health care services and senior disability
services. Ms. Rehfeld responded, the Department determines
their numbers & projections based on past experience.
Given the information through January 2008, there were
remaining funds available from the FY08 allocation. The
rest is what is remaining in the supplemental bill
proposal.
Representative Gara asked if service levels would be
changed through the reductions. Ms. Rehfeld explained that
the component represents the outcome from some of the cost
containment measures & recommended that the Department
address specific concerns.
4:59:19 PM
Representative Gara questioned what the cost containment
includes. He hoped it would not be cuts to services. He
wanted to know real cost savings versus providing less
service to fewer people. Ms. Rehfeld offered to provide
additional information.
5:00:00 PM
Representative Hawker asked the Administration's position
on the Alaska Housing Energy Program and the Weatherization
Efficiency Program. Ms. Rehfeld replied the Administration
has not yet taken a position on those proposals but that
Alaska Housing Finance Corporation (AHFC) has interest in
those programs. She did not know the dollar amount.
Representative Hawker wanted to see more clarity in the
bill, which appears to be an appropriation into actual
programs. He asked if the Administration would support
language in the bill making it clear that the appropriation
includes all the necessary costs to support the programs.
Ms. Rehfeld had not yet discussed those concerns with AHFC,
determining on-going costs.
5:02:54 PM
DAVE TRANTHAM, SENIOR CITIZEN, BETHEL (Testified via
teleconference), voiced support for SB 256, indicating his
concern with any changes to the proposed revenue sharing
component as listed on Page 80. He wanted to guarantee
funds for a three year period.
Co-Chair Meyer explained that language was taken from
Senator Lyman Hoffman's Revenue Sharing bill passed out of
Committee. It covers a three year period for the amount of
$60 million dollars, a minimum for each year. The fund is
replenished if the price of oil increase above $60 dollars
per barrel. Twenty percent (20%) of the amount above the
$60 dollars is deposited into the Revenue Sharing account
each year. As long as the price of oil stays high, the
fund will always have money for appropriations.
Mr. Trantham referenced the contribution to the Budget
Reserve Fund in the amount of $1 billion dollars as
indicated on Pages 80 & 88 and the deposit into the CBR
fund for $2.6 billion dollars. He asked if long-term
earnings from investments would always be the same.
Co-Chair Chenault said he could attempt to get that
information. There are different accounts within the CBR,
one of which draws a lower interest on short-term
investments. The majority of the CBR is invested in long
term investments. Mr. Trantham reiterated his support for
the bill.
5:07:16 PM
R. THOR WILLIAMS, BETHEL (Testified via teleconference),
noted his support for the bill, especially appropriations
to revenue sharing and retirement funding, which helps
address long-term debt in his area, identifying the Public
Employees Retirement System (PERS) issues. He added his
support for Section 33, repaying the CBR.
Representative Gara corrected comments made by Co-Chair
Meyer to Mr. Trantham. He advised that revenue sharing
caps out at $60 million dollars per year and it is not a
minimum amount. He questioned if the newly drafted version
would max out at the end of three years. Co-Chair Meyer
explained that the manner in which the fund is set up, it
will always be one third of whatever is in that fund.
Representative Gara understood that it was written so that
it would never exceed the $180 million dollar level. Co-
Chair Meyer said that was not correct.
5:09:27 PM
Representative Kelly maintained that the proposed
supplemental funding request is too large. Co-Chair
Chenault agreed, however, pointed out that the majority of
it goes to savings.
CS SB 256 (STA) was HELD in Committee for further
consideration.
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