03/26/2010 09:00 AM House FINANCE

HOUSE BILL NO. 326                                                                                                            
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
9:51:53 AM                                                                                                                    
                                                                                                                                
Co-Chair Hawker summarized previous action on the measure.                                                                      
                                                                                                                                
Co-Chair  Stoltze MOVED  to  ADOPT  Work Draft  26-GH2827\P,                                                                    
Kane, 3/25/10,  as a working document  before the committee.                                                                    
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair  Hawker summarized  documents explaining  the bill.                                                                    
He reported  that the total  increment for  the supplemental                                                                    
budget  for all  funds  was approximately  $158 million  and                                                                    
that the  general funds portion  consisted of a  little over                                                                    
$100 million. He listed items in the general funds amount:                                                                      
                                                                                                                                
   · $5 million: funds capitalization for the state-wide                                                                        
     disaster relief fund                                                                                                       
   · $35 million: fire suppression                                                                                              
   · $36 million: Medicaid entitlement                                                                                          
   · $17 million: Department of Corrections arbitration                                                                         
     award settlements and fuel                                                                                                 
                                                                                                                                
Co-Chair  Hawker emphasized  that the  amount remaining  was                                                                    
fairly small. He  stated that he and  other members remained                                                                    
concerned   that  a   number   of  items   continue  to   be                                                                    
problematic,    especially    agencies   spending    in    a                                                                    
discretionary  manner and  ask  for  funding afterwards.  He                                                                    
wanted  supplemental budgets  to  reflect unanticipated  and                                                                    
non-discretionary spending.                                                                                                     
                                                                                                                                
9:56:36 AM                                                                                                                    
                                                                                                                                
Co-Chair  Hawker  explained  differences   in  the  new  CS,                                                                    
listing items that had been added back:                                                                                         
                                                                                                                                
   · Department of Health and Social Services: IT support                                                                       
     services                                                                                                                   
   · Department     of    Natural     Resources:    pipeline                                                                    
     coordinator's office                                                                                                       
   · Department of Revenue: Permanent Fund division                                                                             
     transition to paperless systems                                                                                            
   · Department of Transportation and Public Facilities: to                                                                     
     implement standards being imposed by the federal                                                                           
     Environmental Protection Agency (EPA)                                                                                      
                                                                                                                                
Co-Chair   Hawker   stated  concerns   regarding   excessive                                                                    
unfunded federal mandates.                                                                                                      
                                                                                                                                
Representative  Kelly  concurred.   He  emphasized  concerns                                                                    
about the EPA street-sweeping requirement.                                                                                      
                                                                                                                                
Co-Chair  Stoltze shared  disdain for  federal mandates  and                                                                    
acknowledged the seriousness of the situation.                                                                                  
                                                                                                                                
Co-Chair Hawker agreed.                                                                                                         
                                                                                                                                
10:00:48 AM                                                                                                                   
                                                                                                                                
Co-Chair Hawker listed other elements finalized in the CS:                                                                      
                                                                                                                                
   · Judgment and claims number up $35,000 by the                                                                               
     Department of Law                                                                                                          
   · Provision of a "bucket" for the Cook Inlet reclamation                                                                     
     bond funding; the interest earnings appropriated to                                                                        
     the Department of Natural Resources for the bond                                                                           
   · Reappropriation of the Alaska Marine Highway System                                                                        
     excess fuel account in order to restore Aleutian                                                                           
     Island service                                                                                                             
   · Intent language regarding future arbitration decisions                                                                     
                                                                                                                                
Co-Chair Hawker acknowledged  the hard work of  staff on the                                                                    
supplemental budget.                                                                                                            
                                                                                                                                
10:05:23 AM                                                                                                                   
                                                                                                                                
Co-Chair Hawker noted that nothing  was appropriated for the                                                                    
Carlson case, which is still  under appeal. He remarked that                                                                    
there would  be continuing bargaining unit  settlements; the                                                                    
Office  of Budget  and Management  had two  settlements that                                                                    
would be  dealt with in  two amendments. He stated  that due                                                                    
to committee  concerns, a third  amendment would  remove the                                                                    
World Trade Center appropriation.                                                                                               
                                                                                                                                
Representative Gara  appreciated the  additional information                                                                    
regarding supplemental  items that  had been  questioned. He                                                                    
pointed out that $1.5 billion of the supplemental was to                                                                        
forward fund education and to pay back the Constitutional                                                                       
Budget Reserve (CBR).                                                                                                           
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 1:                                                                                     
                                                                                                                                
     DEPARTMENT:    Administration                                                                                              
    APPROP:        Centralized Administrative Services                                                                          
     ALLOCATION:    Office of the Commissioner                                                                                  
     ADD:           $12.8 General Funds (1004)                                                                                  
                                                                                                                                
     EXPLANATION:                                                                                                               
     The  sum of  $12,770 is  appropriated from  the general                                                                    
     fund  to the  Department of  Administration, office  of                                                                    
     the commissioner,  as a lump  sum payment to  the union                                                                    
     directed health  trust, to implement  the terms  of the                                                                    
     collective  bargaining  agreement   for  the  Teacher's                                                                    
     Education Association of Mt.  Edgecumbe, for the fiscal                                                                    
     year ending June 30, 2010.                                                                                                 
     Last  week  the State  reached  an  agreement with  the                                                                    
     Teachers'  Education   Association  of   Mt.  Edgecumbe                                                                    
     (TEAME). The TEAME agreement covers FY10-FY12.                                                                             
     Since  the  TEAME  agreement   is  retroactive  to  the                                                                    
     beginning  of FY10,  a  supplemental  is requested  for                                                                    
     $12,770   General   Funds   for   the   Department   of                                                                    
     Administration, office of the  commissioner, to pay the                                                                    
     agreed  upon FY10  insurance costs  to  the NEA  Health                                                                    
     Trust.                                                                                                                     
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair Hawker explained the amendment.                                                                                        
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, Amendment 1 was ADOPTED.                                                                                     
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 2:                                                                                     
                                                                                                                                
     DEPARTMENT:         Statewide                                                                                              
     ADD:                $3,668,400                                                                                             
     FUNDING SOURCE:     Multiple fund sources per change                                                                       
     records  submitted  electronically to  the  legislative                                                                    
    Finance Division and as detailed on the attachment.                                                                         
     ADD Conditional Language:                                                                                                  
     The appropriations made in  this section are contingent                                                                    
     on   ratifications   of   the   collective   bargaining                                                                    
     agreement  by the  membership of  the Public  Employees                                                                    
     Local 71, for the labor, trades and crafts unit.                                                                           
                                                                                                                                
     EXPLANATION:                                                                                                               
     The  Labor,  Trades,  and Crafts  bargaining  unit  has                                                                    
     reached  a  tentative  agreement  with  the  state  for                                                                    
     fiscal years FY2010-FY2012.                                                                                                
     In FY2010  there is a  lump sum payment  for bargaining                                                                    
     unit members ranging from $903  to $2,066, depending on                                                                    
     the  wage  grade  of   the  employee.  Bargaining  unit                                                                    
     members who  are seasonal or  part time  employees will                                                                    
     have the lump sum payment reduced to 50%.                                                                                  
     There is a lump sum payment  to the LTC Health Trust to                                                                    
     cover  the  FY2010   state's  contribution  for  health                                                                    
     insurance,  which  increased  from  $870  to  $913  per                                                                    
     employee per month.                                                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair Hawker explained.                                                                                                      
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, Amendment 2 was ADOPTED.                                                                                     
                                                                                                                                
10:09:32 AM                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 3:                                                                                     
                                                                                                                                
     Page 10, Lines 6-10: Delete all material                                                                                   
     EXPLANATION:  Grant   to  World  Trade   Center  Alaska                                                                    
     deleted from Supplemental Operating Budget.                                                                                
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair Hawker explained that the amendment deletes                                                                            
authorization for $250,000 for state participation in the                                                                       
World Trade Exposition in China.                                                                                                
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, Amendment 3 was ADOPTED.                                                                                     
                                                                                                                                
10:10:45 AM                                                                                                                   
                                                                                                                                
Co-Chair Hawker opened public testimony.                                                                                        
                                                                                                                                
MARIAN  ELLIOTT,  FAIRVIEW  SAFETY  COMMITTEE,  MAT-SU  (via                                                                    
teleconference),   requested  inclusion   of  a   pedestrian                                                                    
pathway in a Fairview project.                                                                                                  
                                                                                                                                
Co-Chair  Hawker explained  that  the item  was for  capital                                                                    
improvements and that the capital  budget was forthcoming in                                                                    
the Senate Finance Committee.                                                                                                   
                                                                                                                                
MILES  BAKER,  STAFF,   SENATE  FINANCE  COMMITTEE  provided                                                                    
dates.                                                                                                                          
                                                                                                                                
Co-Chair  Stoltze  stated  that  he did  not  oppose  safety                                                                    
improvements  and  that  he  was  working  with  the  Senate                                                                    
Finance Committee regarding the item.                                                                                           
                                                                                                                                
10:14:38 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hawker pointed  out that  the supplemental  budget                                                                    
was a historic  document because of repayment  into the CBR.                                                                    
He noted the amount for education forward funding.                                                                              
                                                                                                                                
10:17:48 AM                                                                                                                   
                                                                                                                                
Co-Chair Stoltze  MOVED to report  CSHB 326(FIN)  as amended                                                                    
out  of  Committee  with individual  recommendations.  There                                                                    
being NO OBJECTION, it was so ordered.                                                                                          
                                                                                                                                
CSHB  326(FIN) was  REPORTED  out of  Committee  with a  "do                                                                    
pass" recommendation.