Legislature(1999 - 2000)
02/26/1999 08:05 AM House FIN
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 50
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17c, Constitution of
the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
DAN SPENCER, CHIEF BUDGET ANALYST, OFFICE OF MANAGEMENT AND
BUDGET (OMB), provided Committee members with two pieces of
information on the front section of the Governor's budget:
(Copies on File)
? A letter OMB provided to the Senate Finance
Committee (SFC) as a result of their hearings.
? A summary provided by the Legislative Finance
Division.
SECTION #1 - ALASKA HOUSING FINANCE CORPORATION
Mr. Spencer noted that Section #1 was referred to as the
Alaska Housing Finance Corporation dividend. He pointed out
that this year these funds are being placed into the Debt
Retirement Fund as opposed to the general fund.
Subsection (a) transfers the unexpected and unobligated
amount of AHFC unrestricted revenue available for
appropriation by the direction of the Board for fiscal years
ending June 30, 1999 and June 30, 2000.
Subsection (b) appropriates earnings related to AHFC as
corporate receipts. The receipts are then allocated to the
AHFC revolving fund, housing assistance loan fund and senior
housing revolving fund in accordance with procedures adopted
by the AHFC board of directors.
Subsection c identifies the amount of corporate receipts
within the revolving loan fund to be used by AHFC for
housing loan programs not subsidized by AHFC corporate
receipts which would equal $472 million and housing loan
programs and projects subsidized by AHFC corporate receipts
derived from arbitrage earnings.
SECTION #2 - ALASKA PERMANENT FUND CORPORATION
Mr. Spencer explained that Section #2 was standard language
used from year to year authorizing payments for dividends
and inflation proofing.
Representative Bunde asked for more information on the
amounts being disbursed to the Department of Corrections,
Department of Public Safety, Department of Health and Social
Services, and the Department of Revenue. Mr. Spencer noted
that the Department of Health and Social Services amounts
would be used for hold harmless situations. The amount
allocated to the Department of Corrections would be used for
probation and parole in lieu of dividends for felons and
additionally for sexual abuse counseling. The amount
allocated to Department of Public Safety will be issued to
the Council on Domestic Violence.
PETER BUSHRY, CHIEF FINANCIAL OFFICIER, PERMANENT FUND
CORPORATION, DEPARTMENT OF REVENUE, noted that the
Department would use the appropriation for the Dividend
Division to cover administrative costs.
Representative Bunde commented that those costs should be
reflected in the back section of the budget. Mr. Spencer
noted that the other amounts are specified in the back
section except for these.
SECTION #3 - ALASKA PUBLIC UTILITIES COMMISSION
Mr. Spencer explained that Section #3 indicates balances
carried forward, to be used for next year's appropriations.
He noted that this is standard carry-forward language.
SECTION #4 - ALASKA SCIENCE & TECHNOLOGY FOUNDATION
Mr. Spencer acknowledged that Section #4 was carry forward
language for balances to be used by Alaska Science and
Technology Foundation (ASTF) during the following year.
Representative Bunde questioned a memo written by Tom
Lawson, Department of Commerce and Economic Development,
regarding an incorrect analysis provided by Legislative
Finance Division.
TOM LAWSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF COMMERCE AND ECONOMIC DEVELOPMENT, explained
that this would be difficult information to understand. The
figure that Legislative Finance provided was $9.539 million
dollars. That figure is the sum of the FY2000 budget for
aerospace as well as ASTF. The roll-forward language exists
because over the course of the years, it has been difficult
to estimate how much will be received. Additionally, it has
been difficult to estimate how much money ASTF will pay out.
The proposed clause will provide a safety in the back
section of the budget, in which there will be an estimate of
how much exists for the operation of ASTF. He commented
that at the end of the year, there is often an excess of
funds in the earnings reserve. He concluded that at the
bottom of the memo, a formula had been included of how to
determine what the balance will be.
GINGER BLAISDELL, FISCAL ANALYST, LEGISLATIVE FINANCE
DIVISION, explained her understanding of the front section
portion as discussed. She advised that all of the earnings
were made up of a $100 million dollar endowment, which are
earned in the prior year and must be carried forward to be
spent in the year budgeted. The use of the front section is
provided in order that all the earnings be used. The
problem is the wording "for grant awards", which does not
allow for the rest of the money to be used. She recommended
removing that language which would provide for the full use
of those funds.
Co-Chair Therriault asked if the other dollar amounts had
been appropriated elsewhere in the budget. Ms. Blaisdell
advised that there was $2.5 million dollars in the
University budget. Co-Chair Therriault pointed out that
specific dollar amounts could create problems without
proposed generic language. Ms. Blaisdell agreed that front
section language was needed, however, that section would
require that all earnings be used during that fiscal year.
She compared the proposition to a duplicated expenditure and
recommended that the language be very broad so that it
initially would all initially go to ASTF, and at which time,
they would make the specific appropriation.
Representative J. Davies questioned why that language should
be broader than it currently is. He believed that all which
was appropriated would be obligated. He asked if that was
intended. Co-Chair Mulder recommended that the Department
and Legislative Finance Division should work together with
Office of Management and Budget to create consensus
language.
SECTION #5 - ALASKA SEAFOOD MARKETING INSTITUTE
Mr. Spencer stated that this section provided carry forward
language of revenues received for the purpose of the Alaska
Seafood Marketing Institute (ASMI).
SECTION #6 - BUDGET REDUCTION REQUIRING LEGISLATION
LONGEVITY BONUS ELIGILBILITY
Mr. Spencer noted that Section #6 refers to the Governor's
proposal for an income limit cap. He acknowledged the
action could have been accomplished with a fiscal note. The
language was added to the front section to make clear that
if that legislation were passed, there would be significant
savings to the general fund. The estimated proposed amount
was provided December 15, 1998.
Co-Chair Therriault asked why there was a saving indicated
on the hold harmless. Mr. Spencer replied that the hold
harmless payments resulted from the dividend. He did not
understand the indication and offered to provide that
information.
SECTION #7 - CONSTITUTIONAL BUDGET RESERVE FUND
Mr. Spencer stated that Section 7 indicates a difference
from last year not including a $7.1 million dollar cap.
SECTION #8 - DISASTER RELIEF
Mr. Spencer noted that Section #8 was standard,
appropriating federal receipts received for disaster relief
to the disaster relief fund. It has been included in
federal funds for the Department of Military and Veterans
Affairs in the back section of the bill.
SECTION #9 - FEDERAL AND OTHER PROGRAM RECEIPTS
Mr. Spencer pointed out that Subsection (a) is standard
language that provides for additional funding authority for
federal and other program receipts through the Legislative
Budget and Audit (LBA) Committee process. The approach
would limit LBA to a particular funding source
consideration. He reminded members that there is proposed
legislation speaking to this concern of the 45-day Rule,
although, Section #9 provides different language from that
bill, not restricting it to particular program receipt
funding sources.
Co-Chair Mulder commented that the language in Section #9
was broader than the proposed legislation and that language
would be examined in more depth during the legislative
process. He emphasized that the final decision would be a
"policy call".
Representative J. Davies remarked that the language proposed
in this section was as it had been in previous years.
SECTION #10 - FEDERAL SUBSISTENCE FUNDS
Mr. Spencer stated that Section #10 addresses the
subsistence issue for funding to be made available either to
the State or the federal government.
SECTION #11 - FISH AND GAME ENFORCEMENT
Mr. Spencer advised that Section #11 has been in existence
for 2 years. The language takes the amount of the criminal
fines for fish and game violations and places them into a
fund to be used by the Department of Public Safety and
Department of Law for enforcement costs. Subsection (b)
indicates that the amounts are explicitly appropriated back
for enforcement, investigation and prosecution of State fish
and game laws.
Representative J. Davies inquired how the funds would be
used if they amounted to more than those received in the
front section. Mr. Spencer replied that there would then be
the option of creating a RPL or supplemental.
SECTION #12 - FOUR DAM POOL TRANSFER FUND
Mr. Spencer noted that Section #12 would make the necessary
appropriation from the Four Dam Pool transfer fund to the
Southeast Energy fund, the Power Cost Equalization & Rural
Electric fund and the Power Project fund. The amount
transferred in FY97 was zero.
Representative J. Davies asked the amount available for
appropriation. Mr. Spencer replied that $3.8 million
dollars is estimated available by Power Cost Equalization
(PCE), the Southeast Energy fund has about $8 million
dollars and the Power Project fund has about $9 million
dollars.
Representative Bunde pointed out the handout addressed to
Senator Parnell, included in the packet, which speaks to
these concerns.
SECTION #13 - INFORMATION SERVICES FUND
Mr. Spencer commented that Section #13 would appropriate
statutory designated program receipts to the Information
Services fund for the Department of Administration, Division
of Information Services, for telecommunication services.
These would be inter-agency receipts.
SECTION #14 - INSURANCE AND BOND CLAIMS
CATASTROPHE RESERVE ACCOUNT
Mr. Spencer stated that Section #14 references the statute
that allows up to $5 million dollars to be swept from
lapsing general fund appropriations for the Catastrophe
Reserve account. At that time, funds would be appropriated
from that account to the Department of Administration for:
? Insurance;
? To establish reserves for the self-insurance
programs, and
? To satisfy claims or judgements.
SECTION #15 - INSURANCE FEES - REAPPROPRIATION
Mr. Spencer stated that Section #15 was carry forward
language for the Department of Commerce and Economic
Development, Division of Insurance.
SECTION #16 - LAND DISPOSAL
Mr. Spencer noted that this section would make an
appropriation to the Department of Natural Resources which
would allow them to undertake actives needed to prepare for
a land sale. Section #16 is accompanied with a two-year
lapse date, as the receipt timing is unknown.
SECTION #17 - MARINE HIGHWAY SYSTEM FUND
Mr. Spencer commented that Section #17 would make a general
fund appropriation to the Alaska Marine Highway System fund
in the amount of $27.5 million dollars. The Legislative
Finance Division has indicated an increase from the prior
year. Mr. Spencer noted that there was an additional $151
thousand general fund appropriation that went into that fund
last year to meet salary adjustments. Currently, the amount
requested is the same as that from last year.
SECTION #18 - MOTOR FUEL TAX
Mr. Spencer stated that Section #18 was not an
appropriation, but rather, indicates the amount received
from the Special Highway Tax and the Special Aviation Fuel
Tax. Both these taxes will be spent. The income was based
on the existing 8 cents per gallon tax.
SECTION #19 - OCCUPATIONAL LICENSING-REAPPROPRIATION
Mr. Spencer noted that Section #19 was carry forward
language for the operations of that program.
SECTION #20 - OIL AND HAZARDOUS SUBSTANCE RELEASE
PREVENTION ACCOUNT
Mr. Spencer deferred any questions on Section #20 to
Department of Environmental Conservation. The language
would appropriate the balance of the unreserved special
accounts in the general fund to this account.
SECTION #21 - OIL AND HAZARDOUS SUBSTANCE RELEASE
RESPONSE ACCOUNT
Mr. Spencer deferred any questions on Section #21 to the
Department of Environmental Conservation. The language
would appropriate the balance of the unreserved special
accounts in the general fund to this account.
SECTION #22 - PERFORMANCE MEASURES
Mr. Spencer noted that Section #22 was the Governors intent
language, requesting that goals, strategies, and performance
measures be stated in a separate resolution. Mr. Spencer
emphasized that the Governor does support performance
measures.
SECTION #23 - REAL ESTATE SURETY FUND
Mr. Spencer noted that Section #23 indicates that the
balance of the Real Estate Surety fund, which exceeds $500
thousand dollars, be appropriated to Department of Commerce
and Economic Development for purposes relating to that fund
for the fiscal year.
Representative Bunde asked if the amount rolled forward was
$500 thousand dollars. Mr. Spencer replied that Section #23
would provide that the excess funds over $500 thousand
dollars be appropriated as established in statute.
SECTION #24 - RETAINED FEES
Mr. Spencer stated that the language of Section #24 does
address the need to appropriate vendor compensation and/or
bankcard service fees that are not directly appropriated by
the State for vendors or banking institutions that collect
fees on behalf of the State. Mr. Spencer provided an
example of fish and game licenses.
Representative Bunde asked why no amount had been included.
Mr. Spencer advised that it is not known what that figure
will be in advance.
(Tape Change HFC 99 - 31, Side 2).
SECTION #25 - SAFETY ADVISORY COUNCIL-REAPPROPRIATION
Mr. Spencer pointed out that Section #25 would allow program
receipts not expended in FY99 to be carried forward into
FY00 for the Governor's Safety Conference.
SECTION #26 - SALARY AND BENEFIT ADJUSTMENTS
Mr. Spencer noted that Section #26 would allow for FY00 pay
increases for University of Alaska employees. The net
unknown amount would be used for three items:
? Salary adjustments;
? Health benefit adjustments;
? Changes in contribution rates for the Public
Employees Retirement System (PERS).
SECTION #27 - SALMON ENHANCEMENT TAX
Mr. Spencer noted that Section #27 would make an
appropriation to the regional association. Funds have been
collected for that purpose.
SECTION #28 - SHARED TAXES AND FEES
Mr. Spencer stated that the programs indicated Section #28
are statutorily designated. This section would appropriate
general fund dollars to Department of Revenue to refund
local governments their share of taxes and fees collected
for payment in FY99.
SECTION #29 - STATE DEBT AND OTHER OBLIGATIONS
Mr. Spencer noted that Section #29 indicates where the state
pays for CLP bonds. Following this payment, all general
obligation bonds will be paid off.
The formula used to determine the general fund appropriation
going to the debt retirement fund, is made by calculating
all other funding sources, determining the amount of known
debt, subtracting funding sources from that number, and
leaving the remainder amount to be taken from the general
fund.
SECTION #30 - STATE TRAINING & EMPLOYMENT PROGRAM
Mr. Spencer commented that Section #30 would take the lapsed
funding balance from the account and place it into the
Unemployment Compensation fund. He noted that there had
been discussion by the Governor's Office to add an amendment
to restore this language as it previously was.
SECTION #31 - STATUTORY BUDGET RESERVE
Mr. Spencer stated that Section #31 reserve fund was
established some time ago, and that there is no money in it
and no funds dedicated for it. He acknowledged that a
couple of years ago, it was recommended that the fund be
removed but no action has been taken.
SECTION #32 - STORAGE TANK ASSISTANCE FUND
Mr. Spencer deferred questions regarding Section #32 to the
Department of Environmental Conservation. Representative
Bunde asked if fees were still being collected for storage
tank assistance.
VIRGINIA STONKUS, FINANCIAL SERVICES, ADMINISTRATIVE
SERVICES, DEPARTMENT OF ENVIRONMENTAL CONSERVATION,
understood that as of December, 1998, the program would be
adjusted and that there would be an option for the fees.
She did not know which piece of the program the adjustment
would be applicable to. Ms. Stonkus offered to research
that and provide information to the Committee.
Representative J. Davies noted that the registration fees
are still collected and that the revenues received from
those fees are placed back into the Prevention Account.
SECTION #33 - STUDENT LOAN PROGRAM
Mr. Spencer noted that the fees collected from the Student
Loan Program are used to cover any defaults from death or
disability of the borrowers.
SECTION #34 - TEACHER CERTIFICATION-REAPPROPRIATION
Mr. Spencer pointed out that Section #34 was carry forward
language and would keep teacher certification fees with that
program.
SECTION #35 - TEST FISHERY RECEIPTS
Mr. Spencer deferred questions on Section #35 to the
Department of Fish and Game. He noted that this language
would allow taking receipts received during the current
fiscal year and make them available to the Department for
the Shell-Fish Onboard Observer Program.
Representative Austerman noted that Section #9 also took in
test fishery receipts. Mr. Spencer replied that Section #9
clarifies that if the State receives test fishery receipts
that exceed the appropriated amount, the Department can then
go to the LBA Committee with an Revised Program Receipt
(RPL) instead of spending the receipts. The scope of the
test fishery is not always known in advance.
Representative Bunde asked where receipts for "other"
fisheries outside of shell fish go.
KEVIN BROOKS, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF FISH AND GAME, stated that there is over $5
million dollars in test fish receipts in the Department's
commercial fisheries budget. Section #35 resulted from a
timing issue, and is included also in the back section. The
Observer Program funding is used for two different crab
fisheries and for salmon projects around the State. He
summarized, the Department will match receipts to regions
where the revenues are generated.
SECTION #36 - VALUE-ADDED TIMBER SALES
Mr. Spencer stated that Section #36 indicates an
appropriation not to exceed $250 thousand dollars general
fund receipts generated in fiscal years ending June 30, 2000
and 2001 from value-added timber sales in Southeast and in
the Tanana Valley to the Department of Natural Resources.
He noted that this appropriation amount had not been
included in the total of the Governors appropriation bill.
SECTION #37 - LAPSE DATE-FEDERAL SUBSISTENCE FUNDS
SECTION #38 - NONLAPSE OF APPROPRIATIONS
SECTION #39 - RETROACTIVITY
Mr. Spencer noted that Sections #37, #38 and #39 address
lapse dates, going into funds or capitalized funds to
appropriate the money. He added that Section #39 would make
an appropriation retroactive to June 30, 1998.
Representative Austerman asked if Section #18 would include
the marine fuel. Mr. Spencer offered to check into that,
although, believed that marine fuel had a separate account.
Representative Foster objected to Section #6 being included
in the front section analysis. Further discussion on the
objection was postponed to a later date.
HB 50 was HELD in Committee for further consideration.
| Document Name | Date/Time | Subjects |
|---|