Legislature(1993 - 1994)
03/14/1994 01:35 PM House FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 370 An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date. HB 370 was HELD in Committee for further consideration. HOUSE BILL 370 "An Act making appropriations for the operating and loan program expenses of state government and to capitalize funds; and providing for an effective date." NANCY SLAGLE, DIRECTOR, DIVISION OF BUDGET REVIEW, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, offered to provide the Committee with a letter summarizing the Governor's amendments. Ms. Slagle provided a sectional analysis of HB 370, answering questions on individual sections. * Sec. 2 Mr. Greany stated that Section #2 would empower the Legislative Budget and Audit Committee to make adjustments during the year to federal funds and program receipts. * Sec. 5 Ms. Slagle noted that Section #5 applies to the social services block grant money in the Department of Health and Social Services, under Title 20. Those funds are received from the federal government as an off-set to general fund dollars. If the full amount budgeted is not received, general fund dollars would need to be adjusted. 2 * Sec. 6 Representative Navarre asked if judgments and claims paid from the state insurance catastrophe reserve account would be listed in the annual report. Ms. Slagle replied that information would be included in the catastrophe reserve account. * Sec. 8 Representative Navarre asked if a debt retirement fund had been established. Ms. Slagle stated that in Section 10 and Section 11, those funds would be appropriated out and then back into the debt retirement fund to pay the G.O. debt. She added that Section 8 would address AHFC veteran's mortgage bonds and the state's guarantee for bonds based on voter approval. * Sec.9 - Sec. 10 - Sec. 11 Representative Brown asked if the amounts appropriated in Sections 8-11 to the state bond committee were listed on the balance sheet under the $131 million dollars debt service increment. Mr. Greany advised that amount was shown in Sections 10-11 and Section 34, and added, Section 11 had been appropriated to cover the G.O. debt. * Sec. 13 Co-Chair MacLean asked the amount of funds spent on inflation proofing and the fiscal impact should that funding not be appropriated this year. Ms. Slagle advised the amount spent was $372 million dollars. Mr. Greany added that as of June lst of each year, the actual inflation proof cost is determined by the Consumer Price Index (CPI) and the inflation rate. That amount is transferred each year into the corpus of the permanent fund. * Sec. 15 Representative Hanley asked for further information on items included to the principal of the Alaska permanent fund in Section 15. * Sec. 16 Representative Martin noted that Section 16 was new and would cover the cost of fund investment. Representative Grussendorf pointed out that these costs were previously reflected in the Department of Revenue's budget. Ms. Slagle indicated OMB's intent to place Section 16 in the front 3 section of the budget as it is specifically driven by activity of the fund. Representative Brown asked if OMB could provide a front end budget total. Ms. Slagle stated that the amount requested in Section 16 would not be included in the spending plan as it is driven by the Permanent Fund Corporation and would not be identified in the general fund spending plan. She offered to provide the Committee with the proposed total. (Tape Change, HFC 94-61, Side 2). * Sec. 17 Ms. Slagle stated that Section 17 was not new and that it would address the lapsing balance of the employment assistance and training program account. Mr. Greany added that the increase would provide a specific amount. * Sec. 19 Representative Hanley asked the balance of the commercial fishing revolving loan account. Ms. Slagle advised that before the transfer occurred, there was a balance of $15,046.0 million dollars in that account. * Sec. 20 Co-Chair MacLean referenced the balance of the oil and hazardous substance release mitigation account and noted her concern with Section 20(b). She remarked that it was inequitable that above ground storage tanks were not being addressed. Representative Brown asked if the new gasoline tax proposed by the Governor would earmark funds for the purposes of Section 20. Co-Chair Larson replied that revenue generated from that source would be under $5 million dollars. Representative Therriault pointed out that the amount requested this year is above the amount which the DEC subcommittee recommended last year. * Sec. 23 Representative Martin expressed concern with the minimal funding for costs relating to the legal proceedings and audit activity involving oil and gas revenue. He urged the Committee to consider full funding of those costs. Representative Brown asked if the Department of Law would anticipate a need for double funding in FY95. Ms. Slagle advised that the full amount requested from the Department of Law for litigation procedures was $36 million dollars. 4 * Sec. 24 Representative Therriault stated that the request for fire suppression for the fiscal year ending June 30, 1994, would be an increase of $1.9 million dollars from last year's request. * Sec. 25 Representative Brown asked the current fund balance in the information services fund in the Department of Administration. Ms. Slagle offered to provide the Committee that information. * Sec. 26 Co-Chair Larson referenced the $28,715.0 million dollars appropriated the Alaska marine highway system fund and pointed out that request was 50% (percent) less than the total operational cost. * Sec. 28 Co-Chair Larson asked the difference between Section 28, the tank registration fee program and Section 20(b), the oil and hazardous substance release mitigation account. Ms. Slagle explained that Section 28 specifically addresses receipts from the tank registration fee program. * Sec. 33 Co-Chair MacLean asked the balance of the rural electrification revolving loan fund. Ms. Slagle replied that balance would be zero (0). HB 370 was HELD in Committee for further consideration.
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