Legislature(2011 - 2012)HOUSE FINANCE 519

04/14/2012 09:30 AM House FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Continued at 7:25 p.m. --
+ SB 182 PUPIL TRANSPORTATION FUNDING TELECONFERENCED
Moved HCS CSSB 182(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 23 FILM PRODUCTION TAX CREDIT/AUDITS TELECONFERENCED
Moved HCS CSSB 23(FIN) Out of Committee
+= SB 160 BUDGET: CAPITAL TELECONFERENCED
Moved HCS CSSB 160(FIN) Out of Committee
+= SB 66 AIDEA: NEW MARKETS TAX CREDIT PROGRAM TELECONFERENCED
Moved HCS CSSB 66(FIN) Out of Committee
CS FOR SENATE BILL NO. 160(FIN)                                                                                               
                                                                                                                                
     "An Act  making and  amending appropriations,  including                                                                   
     capital  appropriations,   supplemental  appropriations,                                                                   
     and  other  appropriations;   making  appropriations  to                                                                   
     capitalize  funds;   and  providing  for   an  effective                                                                   
     date."                                                                                                                     
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  HCS  CSSB  160(FIN),                                                                   
Work  Draft  27-GS2600\T  (4/13/12,   Martin)  as  a  working                                                                   
document.                                                                                                                       
                                                                                                                                
JAMES   ARMSTRONG,   STAFF,  REPRESENTATIVE   BILL   STOLTZE,                                                                   
explained that the  CS contained a $28 million  increase over                                                                   
the  previous draft  version. He  noted that  $25 million  of                                                                   
the increase  was primarily due  to education  spending found                                                                   
on  Page  176,  Section  20.  Some  technical  changes  still                                                                   
needed  consideration.   He  requested  that   the  committee                                                                   
members  review the  CS and  corresponding reports  generated                                                                   
by the  Legislative Finance Division.  The final  draft would                                                                   
be presented to the committee during the afternoon meeting.                                                                     
                                                                                                                                
Co-Chair Stoltze OPENED public testimony.                                                                                       
                                                                                                                                
Co-Chair Stoltze CLOSED public testimony.                                                                                       
                                                                                                                                
Mr.  Armstrong indicated  that the  CS was  available to  the                                                                   
public  on  BASIS   found  under  the  bill   number  in  the                                                                   
documents box on the bill page.                                                                                                 
                                                                                                                                
10:57:21 AM                                                                                                                   
RECESSED                                                                                                                        
                                                                                                                                
3:39:51 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Vice-chair  Fairclough  MOVED  to ADOPT  HCS  CSSB  160(FIN),                                                                   
Work Draft 27-GS2600\O (4/14/12, Martin).                                                                                       
                                                                                                                                
Co-Chair Stoltze OBJECTED for purpose of discussion.                                                                            
                                                                                                                                
Mr. Armstrong  briefly described  the changes  in the  CS. He                                                                   
mentioned  that net zero  changes were  made in District  39,                                                                   
and technical  alterations completed throughout  the bill. He                                                                   
noted  an  additional  appropriation  of $4  million  to  the                                                                   
Blood Bank  of Alaska. The  total amount appropriated  in the                                                                   
Capital Budget  was $2,906,002.5 [billion.] The  total amount                                                                   
of  general   funds  appropriated   was  $1.959,   439.7  and                                                                   
$51,659.7  [million] in designated  general funds,  $66,974.4                                                                   
[million]  in other  state funds  and  $829,928.8 in  federal                                                                   
receipts. He  furthered that  a new re-appropriation  section                                                                   
of  carry forward  funds  was included  by  request from  the                                                                   
governor.                                                                                                                       
                                                                                                                                
Co-Chair  Stoltze  WITHDREW  his OBJECTION.  There  being  NO                                                                   
further OBJECTION, the committee substitute was ADOPTED.                                                                        
                                                                                                                                
Co-Chair Stoltze MOVED to ADOPT Amendment 1:                                                                                    
                                                                                                                                
     Sec.20. DEPARTMENT OF HEALTH AND SOCIAL SERVICES                                                                           
     An amount equal  to 50 percent of the  revenue collected                                                                   
     during the  fiscal year ending  June 30, 2011,  from the                                                                   
     alcoholic  beverage tax  (AS 43.60.010),  not to  exceed                                                                   
     $19,300,400,  is appropriated from  the general  fund to                                                                   
     the  Department  of  Health   and  Social  Services  for                                                                   
     behavioral  health  grants under  AS  47.37.030 for  the                                                                   
     fiscal years  ending June 30,  2013, June 30,  2014, and                                                                   
     June 30, 2015.                                                                                                             
                                                                                                                                
3:43:21 PM                                                                                                                    
                                                                                                                                
Vice-chair   Fairclough   OBJECTED   for   the   purpose   of                                                                   
discussion.                                                                                                                     
                                                                                                                                
Mr. Armstrong  explained  Amendment 1.  He reported that  the                                                                   
amendment removed  50 percent  of revenue collected  from the                                                                   
FY  2012 fiscal  year  from the  alcoholic  beverage tax  and                                                                   
appropriated  the  funds  to the  Department  of  Health  and                                                                   
Social Services  for behavioral  health  grants for the  next                                                                   
three fiscal years.                                                                                                             
                                                                                                                                
Co-Chair Stoltze  expressed concern about procedure.  He felt                                                                   
that  the amendment  was best  addressed through  legislation                                                                   
but agreed to make an exception.                                                                                                
                                                                                                                                
Vice-chair  Fairclough WITHDREW  her  OBJECTION. There  being                                                                   
NO OBJECTION, it was so ordered. Amendment 1 was ADOPTED.                                                                       
                                                                                                                                
Co-Chair Thomas MOVED to ADOPT Amendment 2:                                                                                     
                                                                                                                                
     Page 101, following line 30:                                                                                               
                                                                                                                                
     Insert new material to read:                                                                                               
     "Appropriation Items 200,000                                                                                               
     General Fund 200,000                                                                                                       
                                                                                                                                
     Takshanuk Watershed Council                                                                                                
     - Land Acquisition and Conservation (HB 5)"                                                                                
                                                                                                                                
     Adjust fund sources and totals accordingly                                                                                 
                                                                                                                                
     Delete Section 29                                                                                                          
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. Amendment  2                                                                   
was ADOPTED.                                                                                                                    
                                                                                                                                
Representative Wilson MOVED to ADOPT Amendment 3.                                                                               
                                                                                                                                
     Insert new project                                                                                                         
     on Page 85, after line 25                                                                                                  
                                                                                                                                
     Golden Valley Electrical Association - Liquefied                                                                           
     Natural                                                                                                                    
                         $3,750,000                                                                                             
     Fas Facility - Engineering and Design                                                                                      
                                                                                                                                
     Fund Source: General Funds (1004)                                                                                          
                                                                                                                                
                                                                                                                                
REPRESENTATIVE  STEVE  THOMPSON,  explained the  reasons  for                                                                   
Amendment  3.   He  communicated  that  the   amendment  adds                                                                   
$3,750,000  to  the  capital  budget  for  a  plan  to  truck                                                                   
natural  gas  into  Fairbanks.  The  funds  were  needed  for                                                                   
engineering and design work.                                                                                                    
                                                                                                                                
Representative  Wilson  added  that  the  funds  helped  keep                                                                   
energy costs  lower for rate  payers. Without  the additional                                                                   
funding  money from the  energy co-op  savings account  would                                                                   
have  been   needed.  She  thanked   the  co-chair   for  the                                                                   
amendment.                                                                                                                      
                                                                                                                                
There  being NO  OBJECTION, it  was so  ordered. Amendment  3                                                                   
was ADOPTED.                                                                                                                    
                                                                                                                                
3:47:18 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:48:22 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair   Stoltze   noted  the   compressed   schedule   for                                                                   
completion  of the  capital  budget. He  had  hoped for  more                                                                   
time  for discovery  and  public  process but  commended  the                                                                   
collaborative effort between the legislative bodies.                                                                            
                                                                                                                                
Representative Doogan  announced that he did not  support the                                                                   
FY 2013  capital budget and did  not intend to vote  in favor                                                                   
of  the bill.  He would  explain  his policy  reasons on  the                                                                   
house floor.                                                                                                                    
                                                                                                                                
Representative  Gara  commented  that  "a  lot  of  important                                                                   
things" were  contained in the  capital budget. He  also felt                                                                   
the budget was  "too big" and was uncertain how  he was going                                                                   
to vote.  He stated that  the budget  was, "too big  and good                                                                   
at the same time."                                                                                                              
                                                                                                                                
Vice-chair  Fairclough  thanked  the Co-chairs  office's  for                                                                   
all  of their  hard work  on the  budget.  She supported  the                                                                   
capital  budget with the  caveat that  future budgets  remain                                                                   
uncertain with the decline in oil production.                                                                                   
                                                                                                                                
3:53:18 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg commented that  he received  a lot                                                                   
of  feedback  on  the capital  budget.  He  opined  that  the                                                                   
capital  budget process  "may  not be  perfect  but it's  the                                                                   
best  one  around." He  felt  that  the process  "turned  the                                                                   
wealth  of  the  state  back   to  the  people."  The  budget                                                                   
accomplished a lot of good things for the state.                                                                                
                                                                                                                                
Representative Wilson  thanked the Co-chairs staff  for their                                                                   
hard work.  She thought that  the budget contained  some good                                                                   
appropriations  to   help  Fairbanks  achieve   lower  energy                                                                   
costs.                                                                                                                          
                                                                                                                                
Co-Chair  Thomas MOVED  to report  HCS CSSB  160(FIN) out  of                                                                   
committee with individual recommendations.                                                                                      
                                                                                                                                
HCS CSSB  160(FIN) was REPORTED  out of committee with  a "do                                                                   
pass" recommendation as amended.                                                                                                
                                                                                                                                
3:56:31 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:56:38 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
3:57:53 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
4:33:46 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                

Document Name Date/Time Subjects
SB182 CS WORKDRAFT 27-LS1283-O.pdf HFIN 4/14/2012 9:30:00 AM
SB 182
SB160 CS WORKDRAFT 27-GS2600-T.pdf HFIN 4/14/2012 9:30:00 AM
SB 160
SB182CS(FIN)-EED-TLS-4-13-12.pdf HFIN 4/14/2012 9:30:00 AM
SB 182
SB182CS(FIN)-EED-PEF-4-10-12.pdf HFIN 4/14/2012 9:30:00 AM
SB 182
SB182CS(FIN)-EED-K12-4-13-12.pdf HFIN 4/14/2012 9:30:00 AM
SB 182
SB182CS(FIN)-EED-ESS-4-13-12.pdf HFIN 4/14/2012 9:30:00 AM
SB 182
SB182CS(FIN)-EED-ESS-4-10-12(MillRate).pdf HFIN 4/14/2012 9:30:00 AM
SB 182
SB182CS(FIN)-EED-PEF-4-13-12-Corrected.pdf HFIN 4/14/2012 9:30:00 AM
SB 182
SB160 House District Summary.pdf HFIN 4/14/2012 9:30:00 AM
SB 160
SB160 CS WORKDRAFT O version.pdf HFIN 4/14/2012 9:30:00 AM
SB 160
SB160 Amendment 1- Stoltze-Thomas.pdf HFIN 4/14/2012 9:30:00 AM
SB 160
SB 160 AMENDMENT 2- THOMAS.pdf HFIN 4/14/2012 9:30:00 AM
SB 160
SB160 Amendment 3 -Wilson.pdf HFIN 4/14/2012 9:30:00 AM
SB 160
SB160 Support.pdf HFIN 4/14/2012 9:30:00 AM
SB 160