Legislature(2011 - 2012)HOUSE FINANCE 519
03/05/2012 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB284 || HB285 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 284 | TELECONFERENCED | |
| += | HB 285 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 284
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, amending
appropriations, and making reappropriations; and
providing for an effective date."
HOUSE BILL NO. 285
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:41:07 PM
Co-Chair Stoltze MOVED to ADOPT proposed committee
substitute for HB 284, Work Draft 27-GH2599\X, (Bailey,
3/2/12) as a working document. There being NO OBJECTION it
was so ordered.
Co-Chair Stoltze MOVED to ADOPT proposed committee
substitute for HB285, Work Draft 27-GH2593\B, (Bailey
3/2/12) as a working document. There being NO OBJECTION it
was so ordered.
PETER ECKLUND, STAFF, REPRESENTATIVE BILL THOMAS, noted the
House Finance Budget Subcommittees began in 2012 what was
called the "Subcommittee Revamp." Co-Chair Thomas had asked
subcommittees to develop their respective agency budgets
via a five-step process:
1. Review the Mission, Core Services, and
Performance Measures to ensure alignment and that what
is important to the legislature and the public was
being measured in order to understand the benefits of
the investments in agency programs.
2. Review budget changes since FY 05, the last year
of relatively flat budgets to enable the tracking of
the general fund and total funds changes over the
eight-year period via graphs. Extensive data reports
also available.
3. Review the 10-year plan to highlight the future
budget changes anticipated by the agency. Some
agencies have shown their expectations of federal
funding reductions with an associated backfill of
general funds.
4. Review prior audit findings made by the Division
of Legislative Audit to highlight areas where
improvement was or is needed and the agency's response
to those findings.
5. Get a status update on budget changes approved
for FY 12 to indicate the agency's responsiveness to
changes incorporated in the current year budget:
projects started, positions filled, backlogs being
processed more quickly, etc.
Mr. Ecklund continued that the mission and measures of
looking back, looking forward, and looking at current year
progress, gave the subcommittees a context in which to
review the budget requests for FY 13. He thanked David Teal
and the Division of Legislative Finance staff as being an
integral part in preparing the FY 05 look-back graphs, 10-
year plan graphs, and consolidating information on current
year progress for the subcommittees. They also provided
their normal budget support function for the subcommittees.
Mr. Ecklund also thanked Karen Rehfeld, the Office of
Management and Budget staff, and the leadership of the
Executive Branch agencies for their constructive engagement
in the Subcommittee Revamp. At the January 28, 2012
training session, 140 people planned attendance with nearly
half of them from the Executive Branch. He noted that the
process was a work in progress. While providing Performance
Budget training to House Finance members and training to
all House members, staff, and the Executive Branch agency
leadership, more time was needed with agency staff to
ensure alignment of the mission, core services, performance
measures and to finalize efficient and effective
performance measures. There were only 34 days between
training and the deadline for subcommittee close-outs. He
indicated the plan to continue the work over the interim
and during the next legislative session.
Mr. Ecklund went over some of the highlights of the bill.
He pointed out that the Governor's Amended Operating Budget
totaled $9,539,000,000:
· Unrestricted general funds $5,520,000,000.
· Designated general funds $749,000,000.
· Other funds $1,200,000,000.
· Federal funds $2,000,000,000.
· Total $9,479,000,000.
The budget reflects a reduction of $60,500,000 from the
operating budget. Mr. Ecklund indicated that Joan Brown
would talk to some of the changes in the language section.
Some of the changes involved rearranging the order of items
as they were introduced.
JOAN BROWN, STAFF, REPRESENTATIVE BILL THOMAS, mentioned
some of the organizational changes to the operating bill.
After the first three standard legislative sections in the
department sections, the remaining language sections were
put in alpha order. The sections relating to the American
Recovery and Reinvestment Act of 2009, Ratifications,
Budget Reserve Fund, Lapse, Retroactivity, and Effective
Dates, are all at the end of the bill. She also indicated
that some subsections were rearranged within a few sections
and Legislative Legal incorporated a few language
improvements throughout the bill. Ms. Brown proceeded with
the changes made to the language sections:
Section 6, PERSONAL SERVICES TRANSFERS, the required
second report was changed for personal services
transfers to cover the entire year, instead of just
the last six months of the fiscal year.
Section 7, ALASKA AEROSPACE CORPORATION, there were no
changes.
Section 8, ALASKA HOUSING FINANCE CORPORATION, noted
that in subsection (d) there was a change that any
excess AHFC Dividend Funds would be deposited to the
Alaska Capital Income Fund, instead of the Budget
Reserve Fund as proposed. The change recognized the
legislature's tradition of using corporate dividends
for capital projects. No excess dividend funds were
anticipated.
Section 9, ALASKA PERMANENT FUND CORPORATION, the
Governor's budget included an open-ended language
appropriation as subsection (e), for the Permanent
Fund Corporation's investment management fees which
were originally estimated to be $108,200,000. The bill
contained a new Permanent Fund Corporation
appropriation in section 1, the "numbers" sections,
for Custody and Management Fees for the set amount of
$106,600,000. If the Corporation's obligations
exceeded that amount, then a supplemental request
could be made before the legislature.
Section 10, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY, if there should be any excess AIDEA
Dividend funds for the Alaska Housing Finance
Corporation section, the funds will be deposited into
the Alaska Capital Income Fund, instead of the budget
reserve fund as proposed. No excess dividend funds
were anticipated.
Section 11, DEPARTMENT OF ADMINISTRATION, the
Governor's amendment was accepted to delete the
"amount necessary" general fund appropriation for the
state insurance catastrophe reserve account. She noted
that was usually referred to as the Cat Fund which
ideally starts the fiscal year with a $5,000,000
balance. The account is annually replenished at the
end of each fiscal year by reallocating appropriation
lapsing balances pursuant to AS 37.05.289(b). If the
balance in the Cat Fund was insufficient to satisfy
claims or judgments due under the state insurance
program, a supplemental request would be made. The FY
11 year-end sweep did fill the fund.
Section 12, DEPARTMENT OF COMMERCE, COMMUNITY, &
ECONOMIC DEVELOPMENT, there was a change in the order
of subsections (f), (g), and (h). The appropriation
for the Alaska Seafood Marketing Institute
appropriation was moved from the section 1, the
"numbers" section, to the language subsections (j) and
(k) so it was possible to restate the funding
methodology that was implemented by the legislature
for FY 12. It appears that ASMI's program receipt
authorization increased by $5,000,000 over the
Governor's request. The legislative intent in (k)(1)
limits the expenditure amount to a $1,200,000 increase
over the Governor's request of $7,500,000. The General
Fund Program Receipts are self-imposed industry taxes.
Section 14, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
the two language subsections were consolidated with
the heating energy assistance program into one and
incorporated the Governor's amendment of $2,620,300,
for a combined language total of $10,620,300.
Section 17, DEPARTMENT OF NATURAL RESOURCES, the
existing subsections were reordered and consolidated
the former Bond Claims section language into the
Department of Natural Resources section as subsection
(c)as the bonds were all held by the department.
1:51:34 PM
Ms. Brown continued her presentation with the DEPARTMENT OF
PUBLIC SAFETY. One entire section was deleted as there were
no expectations that federal funds would have triggered the
contingency language for drug and alcohol enforcement in
(a) and rural alcohol interdiction in (b).
Section 18, DEPARTMENT OF REVENUE, the Governor's
amendments were included deleting language sections
19(a) and (b) for the Division of Child Support
Services and corrected the General Fund Match amount
from $778,700 to the required $1,044,000 and added
those funds to the numbers section.
DEPARTMENT OF TRANSPORTATION, the section was deleted
and the Governor's request was approved which moved
the estimated $510,000 of interest earnings of the
Alaska Marine Highway System Fund to section 25, the
Fund Transfers section. The request for interest
earnings of the Marine Highway Vessel Replacement Fund
was to remain with the fund.
Section 19, OFFICE OF THE GOVERNOR, the Governor's FY
12 to FY 13 carry forward appropriation was deleted as
it would be considered in a future appropriation bill.
Section 21, BANKCARD SERVICES, there were technical
corrections to the language in (a) to clarify the
fiscal year and the source of the appropriation by
adding "from the funds and accounts in which the
payments received by the state are deposited." She
indicated that the language regarding the
appropriation fiscal year in subsections (b) and (c)
was clarified.
Section 22, DEBT AND OTHER OBLIGATIONS, the
subsections were rearranged within the section,
including grouping General Obligation Bond and State
Guaranteed Transportation Revenue Bond debt provisions
into subsection (h).
Section 24, FUND CAPITALIZATION, subsections (h), (i),
and (j) were reordered and the Governor's amendment to
capitalize the Trauma Care Fund was included.
Section 25, FUND TRANSFERS, the Alaska Marine Highway
System Fund interest earnings appropriation was
transferred to the section as subsection (m) along
with legislative intent for the department to account
for the interest earnings separately from operations
revenue.
Section 26, RETIREMENT SYSTEM FUNDING, the order of
the first two subsections were switched, (a) was now
the Public Employees Retirement System subsection and
(b) was now related to the Teachers Retirement System.
The amounts were not changed. The Governor's amendment
included deleting the former subsection (c), which was
the $431,400 general fund appropriation for the Alaska
National Guard and Alaska Naval Militia Retirement
System, as that funding was not needed. Funding in
section 1, the "numbers" section, was reduced by
$143,100 per the Governor's amendment for the National
Guard Retirement System. The Governor's amendment
adding $3,785,571 general funds for the past service
costs for the Judicial Retirement System is now in
subsection (c).
1:54:38 PM
Ms. Brown continued with:
Section 27, SALARY AND BENEFIT ADJUSTMENTS, there were
no changes to the section, but highlighted the fact
that there were three bargaining units still in
negotiation. There could be amendment requests if
agreements were reached before the end of session for
the Public Employees Local 71, for the Labor, Trades,
and Crafts unit; the Alaska Correctional Officers
Association; and the Teachers' Education Association
of Mt. Edgecumbe.
Section 31, BUDGET RESERVE FUND, the language was
removed that deposited all remaining FY 13 general
funds into the Statutory Budget Reserve Fund as that
decision would be made after further discussion and
appropriation decisions.
Section 32, LAPSE OF APPROPRIATIONS, section reference
numbers were updated.
Section 33, RETROACTIVITY, a change to add a reference
for 12(j)(1), the ASMI carry forward language.
Mr. Brown indicated that there were no changes to the
language sections in the Mental Health Bill. All but one of
the capital projects was removed from the bill. Generally
the senate would restore the capital projects to its
version of the Mental Health bill, thus making the projects
subject to Conference Committee.
Mr. Ecklund added that all the reordering and rearranging
was in consultation with Legislative Finance in order to
make it more logical.
1:56:55 PM
Representative Gara asked for clarification on the Mental
Health Budget where the Governor had proposed $140,000 for
Foster Family recruitment and training. He questioned if
that would be in the Mental Health Budget or the Operating
Budget. Mr. Ecklund replied it was in the Operating Budget.
1:57:34 PM
Co-Chair Thomas announced that the Subcommittee chairs
would describe their budget highlights next.
DEPARTMENT OF FISH AND GAME
Ms. Brown presented the Department of Fish and Game and
indicated that the subcommittee held ten meetings with the
department. The Governor's amended proposal was accepted
with a few exceptions:
· Changed the $200,000 request for the Tanana River
Sonar Project operational costs to a short-term
item.
· Changed the $250,000 request for the Southeast
Alaska Demersal Shelf Rockfish Surveys to a short-
term item.
· Changed the $185,000 request for Title 16 and Title
41 Pre-project Reviews, Permitting, Monitoring and
Compliance to a one-term item.
· Changed the name of the "State Subsistence" to
"State Subsistence Research" to reflect that the
agency does not manage subsistence, but rather
conducts the research necessary for subsistence
managers in the Division of Commercial Fisheries.
Co-Chair Thomas pointed out that in Section 14 and 16, when
the Coastal Zone Management ended, the Habitat division
continued to function as habitat so some of the money
needed to be backfilled.
1:59:17 PM
Representative Guttenberg asked if the Tanana River Sonar
and Rock Fish Survey were ongoing. Ms. Brown indicated that
they were new requests. Co-Chair Thomas interjected that
the original request was for $500,000 and the commissioner
believed that for another $90,000, a new Rock Fish research
Program could be rolled in at the same time.
2:00:47 PM
OFFICE OF THE GOVERNOR
Ms. Brown continued to the Office of the Governor
subcommittee and declared that one meeting was held with
the agency. The subcommittee accepted the Governor's
amended proposal with the following adjustments:
· Changed the $3,000,000 funding request for the
Domestic Violence and Sexual Assault Initiative to a
one-time item and added intent language.
· Reduced personal services by $250,000 in the
executive office.
Ms. Brown noted the Elections budget contains $3,693,00 for
the statewide primary and general elections and is a one-
term item.
OFFICE OF THE LEGISLATURE
Mr. Ecklund moved to the Office of the Legislature noting
that the subcommittee approved the total funds spending at
$73,407,000 for the legislature's budget. The amount was
$2,240,000 below the Governor's Amended Budget Request:
· Increases for personal services, travel, per diem,
and dues.
· Allocation for a new attorney in Legal and Research
Services.
· Allocation for an intake Secretary in the Ombudsman
office.
· One-time fund for the CSG National Conference that
Alaska will host 2013.
· Reduction of the budget by $1,555,000 in Legislative
Finance to be split evenly between the House and
Senate Committees and there would be a $500,000
reduction from the Committee Expenses.
Representative Doogan requested the total amount from the
Governor's office again. Ms. Brown replied the total was
$33,134,200.
Mr. Ecklund commented that there are many reports available
online.
2:03:54 PM
DEPARTMENT OF ADMINISTRATION
Representative Neuman noted that the subcommittee for the
Department of Administration held nine meetings with the
department and analyzed all of the governor's budget
transactions. The following were the budget highlight
recommendations:
· Full funding of the Governor's FY 13 Amended Budget.
· Modified an increment under the Enterprise
Technology Services appropriation for the Alaska
Land Mobile Radio allocation for equipment,
maintenance and training. The modification would be
reflected as a one-time increment.
2:04:53 PM
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
Representative Neuman continued to the Department of Labor
and Workforce Development indicating that the subcommittee
held seven meetings with the department. The following were
budget recommendations:
· Authorized $401,800 less general funds, and
maintained the number of permanent full time and
permanent part time positions as the Governor's
Amended FY 13 Budget.
· A total increase from the FY 12 adjusted base of
$1,814,000 unrealized general funds and total
decrease of $1,235,200 designated general funds
for a total general fund change of $578,800. The
change from the adjusted base decreased by
$100,000 in other funds and increased by $100,000
in federal funds. The total change from the
adjusted base is $578,800 and showed no change in
the number of permanent full time or permanent
part time positions.
· Denied the replacement of unrealizable general
fund program receipts in the Alaska Vocational
Technical Center with unrestricted general funds.
· Denied an increment of $226,800 unrealized
general fund, $100,000 designated general fund
for the Alaska Vocational Technical Education
Center (AVTEC) proposed Registered Nurse Program.
· The Alaska Vocational Technical Center access the
Alaska Technical and Vocational Education Formula
Funding in the amount of $138,200 to fund an
information technology position.
· Supported the Governor's decision to replace the
unrealizable Workers' Compensation Administration
Account (WSCAA) authority with a general fund
match.
2:07:20 PM
DEPARTMENT OF COMMERCE
JOSH WALTON, STAFF, REPRESENTATIVE MIA COSTELLO, explained
that the House Finance Budget Subcommittee for the
Department of Commerce, Community and Economic Development
held six meetings with the department and analyzed all of
the Governor's budget transactions. The following are
budget action highlight recommendations:
· Authorized $4,796,300 more in general funds,
$2,587,400 more in other funds, $14,595,900 less
in federal funds, and the same number of full-
time positions as the Governor's Amended FY 13
request. The Subcommittee recommended authorizing
a total of $7,212,200 less than the Governor's
Amended FY13 request.
· Reiterated the movement of transactions for the
Alaska Seafood Marketing Institute into the
language section.
· Accepted the Governor's amended budget proposal
with some modifications. One change was with the
Economic Development Tourism Marking Contracts to
provide operating funds in the division's base
for a one-time increment. The second modification
was for corporations, business and professional
licensing travel for board and commission members
to change from $244,600 to $94,600.
· Accepted the Economic Development addition of the
Lower Yukon Alaska Regional Development
Organization for $62,200 in general funds.
· Authorized the Division of Economic Development
to collect and expend tourism marketing related
third part receipts of up to $2,700,000 in
Statutory Designed Program Receipts as a one-time
item and approved carry-forward language to allow
the collection and expending of any unexpended
and unobligated SDPR remaining from FY 12.
Co-Chair Thomas commented on the supplemental language in
tourism marketing. Tourism marketing came at the end of
last session and it was not known at the time if it would
need to be fixed. It has now been fixed.
2:11:38 PM
Representative Doogan pointed out that there was
$16,000,000 to spend on tourism marketing and that
$2,700,000 was money from the industry. Mr. Walton
responded that was correct.
Representative Gara expressed the same concern. He noted
that the state does not actually receive the $2,700,000,
but the money was just credited to them for advertising
their own businesses. He wondered if that was correct. Mr.
Walton responded that the $2,700,000 was for the receipt
authority for vacation planning and ad sales.
Representative Gara reiterated that the $2,700,000 was for
money to go into advertising for a tourism company. Mr.
Walton replied that was correct. Representative Gara asked
the Department of Revenue what the tourism industry, minus
the cruise ship industry, has actually paid. He asserted
that in the past three years, tourism tax payments have
been negative. He pointed out that in other states
businesses pay taxes and the tourism marketing money came
as a credit to their taxes. In Alaska there are negative
taxes and Alaska was subsidizing the tourism industry. He
voiced his concern over a subsidy that has jumped from
$3,400,000 in FY 04 to $16 million in FY 13.
2:14:30 PM
DEPARTMENT OF NATURAL RESOURCES
Mr. Walton continued that the subcommittee held six
meetings with the department and analyzed all of the
Governor's budget transactions and recommended:
· The same amount of general funds and positions as
the Governor's Amended BY13 request.
· A change to the appropriation to Mining, Land and
Water for guide concession development of
$150,000 in unrestricted general funds. Intent
language was added that all funding allocated for
Mining, Land and Water for the Guide
Concessionaire Program be used for planning and
program development purposes only. No funding
would be used for implementing the guide
concessionaire program until such time as the
legislature directly authorized the program.
Representative Costello added that she wanted to give Mr.
Walton the opportunity to talk about the change from on OTI
to base funding related to the permitting program.
Mr. Walton remarked that a change was made in the FY 12
cycle because of a severe backlog in processing permits.
There were 2500 backlogged permits that often took months
or years to issue. The Governor requested significant
increments in the numbers to improve the state's permitting
process. The subcommittee granted the decision with caveats
of intent language that required the department submit a
memo with a plan on how the money would be spent, the goals
achieved, and benchmarks in the next budget cycle. The
Division of Mining, Land and Water had been working hard to
alleviate the permitting backlog and exceeded their goals
by eliminating 21 percent of the backlog.
Representative Wilson asked if there was any money in the
base for the Guide Concession Program development. Mr.
Walton responded in the affirmative. He believed an
increment of $120,000 was in the FY 13 budget.
Representative Neuman asked whether it was the intent to
return to the legislature for approval on the Guide
concession Program. He wondered whether the item would be
in the form of legislation due to some very substantial
changes to the management of all state lands. Mr. Walton
responded that the language left the option open as well as
other options.
Co-Chair Stoltze thanked Representative Costello and Mr.
Walton for the hearings they held for the public in the
Mat-Su region. He referenced a meeting on October 31, 2011
on state licensing issues.
Representative Gara appreciated Representative Costello's
attempt to stave off a major policy change until the
legislature had the opportunity to review it. He wondered
why additional funds were needed to create a policy; he
asked why current staff could not complete the task. Mr.
Walton replied that the development of the Guide Concession
Program was a very important program with a potential large
impact and it had gone through a significant amount of
public comment.
2:23:39 PM
DEPARTMENT OF CORRECTIONS
Representative Edgmon remarked that the subcommittee held
six meetings with the department. The highlighted
recommendations:
· The ramp up of the Goose Creek Correctional center
of $29,000,000 in general funds for 192 positions.
· Authorized a decrease of $177,400 in general funds
and one less full-time position as the Governor's
Amended FY 13 request. Of the reduction, $75,000
would come from the out-of-state contractual
agreement which was an increment forwarded by the
Governor to bring out-of-state prisoners from
Colorado to the new facility in the Mat-Su valley.
· Reduced the Policy and Program position in the
commissioner's office with a savings of $132,500.
· Added an item of intent language for the department
to return and demonstrate the cost savings switching
from 12 hour to 8 hour shifts.
Representative Doogan asked if the budget allowed for the
opening of the facility. Representative Edgmon responded
that the requested money would be through the fiscal year,
but there would be additional budget requests for the
following year or later.
DEPARTMENT OF TRANSPORTATION
Representative Edgmon reported that the subcommittee held
seven meetings with the department with the following
recommendations:
· Reduced of the amount of unrestricted general funds
by $2,800,000. The overall request would be reduced
by $1,400,000.
· Denied an increment of $1,340,000 for the heating,
fuel and utility costs because they deferred to the
fuel price "trigger" that would be in the operating
budget. The department used about 65 percent of the
fuel trigger in the operating budget, therefore it
was denied.
· Switched the funding source in the central region
highways $150,000 unrestricted general funds to
vehicle rental tax. Funding was also switched for
$600,000 to the Whittier access and tunnel from
unrestricted general funds to CIP receipts.
· Recommended to the full Finance Committee that more
money be put into the Marine Highway fund. The
present fund will be at zero by the end of the
fiscal year.
2:29:09 PM
Representative Neuman reported that he read information
from the Department of Transportation that a new program
had been implemented in regard to idling of vehicles for no
more than 10 minutes to save money. He questioned if that
was in the budget. Representative Edgmon explained that the
department was in the process of testing it with the hope
that it will result in a savings. If successful, the hope
is that other departments will adopt the plan.
2:30:14 PM
Co-Chair Stoltze commented that there was an error on
funding the Public Safety that will be read as 75 percent.
DEPARTMENT OF LAW
JOE MICHEL, STAFF, REPRESENTATIVE BILL STOLTZE, reported
that the subcommittee met with the department and
recommended following numbers:
· Unrestricted general funds $55,900,000
· Designated general funds $ 2,686,000
· Other funds $27,499,000
· Federal funds $ 1,965,000
· Total $88,063,000
Between the adjusted base and the subcommittees suggestions
there was an increase of $1,463,000 in unrestricted general
funds, $26,000 in designated general funds for a total of
$1,489,000 in general funds and, in other funds, $1,172,000
difference approved. The total change was $2,661,000. He
highlighted in the other funds the $1,172,000 in inter-
agency receipts. There was $450,000 accepted by the
committee for outside council for statehood defense and
natural resources. He signified that $600,000 was allocated
for the civil division to continue its Fast Ferry
litigation. Another large item of $9,050,000 was not
included with the Governor's request for outside council in
the litigation on oil and gas. The recommendation was that
the issue would be taken up by the entire Finance
committee.
ALASKA COURT SYSTEM
Mr. Michel proceeded to the Alaska Court System with the
following numbers:
· Unrestricted general funds $106,421,000
· Designated general funds $ 518,000
· Other funds $ 1,914,000
· Federal funds $ 1,675,000
· Total fund $110,529,600
The numbers came in $1,678,400 more than last year and
there was the inclusion of six more full time positions.
There was no increase in designated general funds and
federal funds. The increase came from $717,000 in other
funds and $1,678,400 in general funds. He noted that there
was $419,000 in accepted increment for the geographic
differential for non-judicial employees and $488,400 in
general funds for the No Dark Courtrooms.
2:36:09 PM
DEPARTMENT OF PUBLIC SAFETY
RYAN MCKEE, STAFF, REPRESENTATIVE BILL STOLTZE, informed
that the subcommittee met four times with the department.
He provided the following numbers:
· Unrestricted general funds $163,730,000
· Designated general funds $ 7,322,700
· Other funds $ 19,948,400
· Federal funds $ 10,967,500
· Total $201,968,600
Mr. McKee discussed the highlight recommendations:
· A total increase from the FY 13 adjusted base of
$9,722,900 unrestricted general fund and a decrease
of $553,500 designated general fund for a total
general fund change of $9,169,400. The change from
the adjusted base in other funds was a decrease of
$190,100 and a decrease of $1,074,800 in federal
funds, totaling $ 1,264,900 in non-general fund
changes.
· Authorized 75 percent funding for the Governor's
initiative to add 15 New Village Public Safety
Officers.
Mr. McKee explained that the second change related to
interior pilot and operating costs at 75 percent; training
and support for the Governor's initiative to add 15 VPSO's
at 75 percent; and no funding was recommended for the
Maintenance Generalist Journey Position for the new
Laboratory.
Vice-chair Fairclough requested more detail on funding a
helicopter at 75 percent. Mr. McKee responded that it was
the pilot and operating costs; the helicopter was not part
of the funding.
JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL STOLTZE,
interjected that that the subcommittee recommended 75
percent and, when further needed information was provided,
there would be 100 percent funding.
Co-Chair Stoltze noted that often full funding was withheld
to encourage needed positions be filled.
2:39:26 PM
Vice-chair Fairclough asked about the status of Council of
Domestic Violence and Sexual Assault funding. Mr. McKee
replied that the amount would be fully funded.
2:40:47 PM
DEPARTMENT OF REVENUE
LAURA PIERRE, STAFF, REPRESENTATIVE ANNA FAIRCLOUGH,
discussed the Department of Revenue subcommittee
recommendations:
· Fully funded the Department of Committee Aide:
Revenue's amended budget as presented to the
legislature.
· Moved the Alaska Housing Finance Corporation's
funding for Federal Housing Assistance Payments
(Section 8 housing) from the language section to the
numbers section.
· Moved the Alaska Permanent Fund Corporation Custody
and Management Fees from the language section to the
numbers section.
The Permanent Fund Corporation was adding three new
positions within the corporation for internal management of
the fund. The change would reduce management fees by
$1,600,000.
UNIVERSITY OF ALASKA
Ms. Pierre continued to the University of Alaska
subcommittee recommendations:
· Fully funded the university budget at 100 percent at
$918,342,100.
· Inserted intent language for the University of
Alaska submit a FY 14 budget in which requests for
unrestricted general fund increments do not exceed
the amount of additional university receipts
requested for that year. It was the intent of the
legislature that future budget requests of the
University of Alaska for unrestricted general funds
move toward a long-term goal of 125 percent of
actual university receipts for the most recently
closed fiscal year.
2:43:19 PM
Representative Neuman believed that 125 percent funding was
a good goal. He asked about the number for the current
year. Ms. Pierre replied that it was 38 percent, or
$9,000,000 under. Representative Neuman asked whether the
funding level was at 125 percent or above.
Vice-chair Fairclough responded that when the governor did
not advance a portion of the dollars that the board of
regents submitted, the university had been $7,000,000 to
$10,000,000 short. She planned on offering some to help
reward the university for its efforts of moving toward the
125 percent goal.
Representative Gara asked for clarification that the amount
fully funded the governor's proposal, not the university's
proposal. Ms. Pierre responded in the affirmative.
2:45:28 PM
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Representative Wilson discussed the subcommittees
recommended budget:
· Unrestricted general funds $26,488,800
· Designated general funds $28,400
· Federal Funds $25,142,700
· Other Funds $11,589,500
· Total $63,258,400
Representative Wilson presented the highlighted
recommendations:
· Changed the request for $170,000 for emergency
generator maintenance to a one time item.
· Denied a request for $300,000 to move the Veteran's
Services Office from Joint Base Elmendorf-Richardson
to Anchorage. The position at Fairbanks was not
ready.
· Changed the request for $8 million for the Alaska
Aerospace Corporation maintenance and operations to
a one-time item.
· Eliminated excess federal authorization from the
Alaska Aerospace Corporation budget.
DEPARTMENT OF EDUCATION
Representative Wilson indicated that ten meetings were held
with the department. She disclosed that:
· Unrestricted general funds $1,206,659,600
· Designated general funds $ 15,064,300
· Other funds $ 25,087,800
· Federal funds $ 233,790,200
· Total $1,480,601,900
Representative Wilson presented the subcommittee
recommendations:
· Denied the request of $300,000 for unrestricted
general funds for support of the Statewide Literacy
Program. She commented that they did not want to
duplicate services.
· Denied the request of $1,200,000 of unrestricted
general funds for the Alaska Learning Network.
· Changed the pre-K program to $1,500,000. It is no
longer a pilot program, but a grant program.
· Reduced Statewide Mentoring Program funding.
· Removed $200,000 of rural transition services
funding, then restored it as a one-time item.
2:49:31 PM
Co-Chair Stoltze asked if the shortfall of $1.5 million did
not include the Public Employee Retirement System payment,
Teachers Retirement or fuel subsidies. Representative
Wilson agreed. She added that $10,000,000 for testing per
year needed further work.
2:50:38 PM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
VIRGINIA SMILEY, STAFF, REPRESENTATIVE REGGIE JOULE,
Department of Health and Social services held thirteen
meetings with the department. The subcommittee stated:
· Unrestricted general funds $1,216,639,200
· Designated general funds $ 72,320,100
· Other funds $ 101,528,700
· Federal funds $1,229,196,505
· Total $2,619,614.500
Ms. Smiley indicated that the subcommittee recommendations:
· Authorized $1,548,000 less general funds and the
same number of full-time positions as the Governor's
Amended FY 13 request. It included five new
positions.
· A total increase from the FY 13 Adjusted Base of
$61,129,000 undesignated general funds and a
decrease of $235,000 designated general funds for a
total general fund change of $60,894,000. The change
from Adjusted Base in other funds is $8,588,900 and
from federal funds is $87,455,200. The total change
from the Adjusted Base is $156,938,100.
Ms. Smiley presented highlights where the Formula programs
were fully funded:
· Increments of $45,300,000 for Medicaid.
· $3,100,000 for the Alaska Temporary Assistance
Program.
· $5,665,500 for the Adult Public Assistance Program.
· $540,000 for the Permanent Fund Hold Harmless.
· Fully funded all 35 Mental Health Trust Authority
authorized receipts.
· Funded $1,800,000 for the Governor's Domestic
Violence and Sexual Assault initiative.
· Funded $500,000 for positions in McLaughlin and the
Johnson Youth Centers.
· Funded $1,100,000 for Public Health Nursing
Grantees. It would reflect a three year increase.
· Funded $700,000 for immunization for children and
seniors.
· Funding for the Low Income Heating Assistance
program will be handled in the language section of
the appropriation bill.
· Decreased $1,000,000 in the Tobacco Education and
Cessation Fund.
· Reductions were made of 10 percent to 18 increments
identified as new or expanding programs.
Co-Chair Stoltze asked if the Permanent Fund Hold Harmless
continued to be permanent fund receipts. Ms. Smiley replied
that it was. Co-Chair Stoltze questioned if it was the
amount calculated and deducted before individual checks.
Ms. Smiley said it does hold them harmless and it is
program receipts. Co-Chair Stoltze stated that it would
reduce everyone's check. He wondered if dividends were
larger or more recipients. Ms. Smiley replied that there
were more recipients.
2:56:33 PM
Representative Joule questioned the reduction for Smoking
Cession Tobacco money for $1,000,000. He indicated that the
program was working and would like it to continue. It has
been successful program that has impacted people's
behaviors. He referred to the one decrement of $138,000 and
indicated there may be an amendment in that area. He felt
the budget process should start in June to better
understand what needs to be done. He felt the need to
understand Medicaid and other things much better.
Vice-chair Fairclough referred to the tobacco succession
issue and wondered if the committee had conversations
concerning on a plateau being reached for how many were
still being affected. She mentioned a claim that there was
a national plateau at 20 percent. She questioned if there
were studies that smoking was worse than chewing tobacco.
Ms. Smiley indicated that the subcommittee did not ask the
department for that information, but believed since the
program was successful, data would be available.
Representative Gara appreciated Representative Joule's
comments. He indicated it was not necessarily the numbers
of people going on Medicaid, but the bulk of the increase
cost was medical service costs. He believed all health
insurance needed to be looked at more fully. Alaska has
higher than national average costs in the medical area and
it will eventually eat away at the state's budget.
3:01:23 PM
Representative Neuman talked about not meeting the goals in
alcohol, drug, spousal, and child abuse. For about three
years the numbers dropped in people being served and money
being spent. The commissioner indicated that there were
more jobs available during that period. He believed that
jobs with insurance benefits helped the family and
community.
Co-Chair Thomas interjected that some individuals do not
pay into unemployment insurance.
Co-Chair Stoltze remarked on the Smoking Cession
commercials and that they often featured locations where
alcohol was being served. He noted that spending one state
dollar to try and stop one behavior but it was advertising
for another addictive behavior. He asked if anyone had a
concern about that. Representative Joule replied that the
commercials were about second-hand smoke.
Co-Chair Thomas asked about immunization and thought there
was legislation on the senate side. Ms. Smiley acknowledged
that there was a bill on the senate side, but she was not
sure where the bill was going. She preferred not speaking
to the senate bill.
3:05:50 PM
Vice-chair Fairclough asked if there was significant
funding for the epidemic of gonorrhea in Alaska. Ms. Smiley
replied that there was conversation of an amendment to the
issue. Vice-chair Fairclough responded that it was a large
health issue for Alaska.
Representative Joule indicated it was not included in the
base, but may be considered later. Vice-chair Fairclough
asked if the federal government was paying attention to the
numbers. Representative Joule responded he was not sure.
3:07:14 PM
Representative Doogan voiced his concern about cost of
health care. He related his personal health issues and the
very high cost. He thought that progressively more will be
either added to the budget for health care or other
programs will have to be further cut.
3:09:21 PM
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
BRODIE ANDERSON, STAFF, REPRESENTATIVE REGGIE JOULE, went
over the Department of Environmental Conservation. He
indicated a submitted budget of:
· Unrestricted general funds $21,000,000
· Designated general funds $26,900,000
· Other funds $11,200,000
· federal funds $24,200,000
· Total $83,500,000
Mr. Anderson communicated that a total increase was
recommended for $1,200,000 unrestricted general funds and
an increase of $114,000 to designated general funds. The
total change is $2,300,000. He highlighted that one full-
time position was accepted for a Microbiologist position.
HB 284 was HEARD and HELD in Committee for further
consideration.
HB 285 was HEARD and HELD in Committee for further
consideration.
3:13:12 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| CSHB285-WORKDRAFT-27GH2593-B 3.5.12.pdf |
HFIN 3/5/2012 1:30:00 PM |
HB 285 |
| CSHB284-WORKDRAFT-27GH2599-X-3.5.12.pdf |
HFIN 3/5/2012 1:30:00 PM |
HB 284 |
| AgencySummary All Funds 3.5.12.pdf |
HFIN 3/5/2012 1:30:00 PM |
HB 284 |
| AgencySummary GF Only 3.5.12.pdf |
HFIN 3/5/2012 1:30:00 PM |
HB 284 |
| HB284-StatewideTotals House 3.5.12.pdf |
HFIN 3/5/2012 1:30:00 PM |
HB 284 |