Legislature(2015 - 2016)HOUSE FINANCE 519
04/16/2015 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB71 | |
| SB26 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 26 | TELECONFERENCED | |
| + | SB 71 | TELECONFERENCED | |
| += | HB 81 | TELECONFERENCED | |
| + | TELECONFERENCED |
CSSB 26(FIN) "An Act making and amending appropriations, including capital appropriations, supplemental appropriations, reappropriations, and other appropriations; making appropriations to capitalize funds; making appropriations under art. IX, sec. 17(c), Constitution of the State of Alaska, from the constitutional budget reserve fund; and providing for an effective date." Co-Chair Neuman MOVED to ADOPT the proposed committee substitute for CSSB 26(FIN), Work Draft 29-GS1781\F (Martin, 4/16/15). There being NO OBJECTION, it was so ordered. JOE MICHEL, STAFF, REPRESENTATIVE STEVE THOMPSON, explained the changes in the Committee Substitute. He noted that a few changes were made to Section 1; the numbers section. He pointed to page 5, line 30 under the Department of Natural Resources (DNR): Snowmobile Trail Development Program and Grants in the amount of $250,000 and clarified that the funding was collected from the sales of snow machines and were designated program receipts and not general funds (GF). In addition, the Cooperative Water Resources Program pass through grant to the United States Geological Survey (USGS) for stream gauging projects was removed from DNR. He explained that the item was removed at the request of DNR because the project was not currently going forward. He addressed the section related to the Department of Transportation and Public Facilities (DOT) on page 14. He highlighted three substantially different changes from the governor's amendments. He pointed to line 23, the Knik Arm Crossing in the amount of $45.3 million and emphasized the item was comprised of federal receipts. The $45.3 million was originally reflected in the item on line 27 National Highway System and Non-National Highway System Pavement and Bridge Reconstruction and Refurbishment which was used as a placeholder in case the state could receive extra federal receipts. Therefore, the inclusion of the Knik Arm Crossing federal receipt authority item was a net zero. He cited line 24, Kotzebue Cape Blossom Road in the amount of $33 million, which was recently granted federal receipt authority for the total amount which eliminated the previously $4 million GF appropriation. 3:29:06 PM Mr. Michel moved to page 23, which contained the numbers section for the Supplemental Budget amendments. He cited line 22, Emergency Repair of State Forest Road Systems in the Tanana Valley State Forest in the amount of $896 thousand that was added by request of the governor. He turned to the Supplemental Operating Budget section on page 26. He referenced page 27, line 22 that included $40 million for Medicaid services in FY 15. The last item concluded the changes to the numbers sections of the bill. Mr. Michel addressed the following supplemental appropriations in the language section of the bill. He began with the Department of Administration (DOA) in Section 10 on page 32 in the amount of $3 million for paying costs associated with the Alaska Correctional Officers Association settlement for FY 15. He moved to subsection b (line 5), and stated that $1.317 million was appropriated to pay for the single audit for the Department of Health and Social Services (DHSS). He related that subsection (c) was a new item totaling $792 thousand for costs related to labor contract negotiations. He moved to the DCCED in Section 11, (line 12) in the amount of $2.3 million for the costs associated with the regulation of marijuana in FY 15 and FY 16. He noted that in subsection (b) (line 17), $57.5 million originally appropriated for the Interior Energy Project was reappropriated. He directed attention to DHSS in Section 12 (line 26) and noted that additional language had been added [to the Medicaid Services expenditure]. He read the following: No money appropriated in this appropriation may be expended for an abortion that is not a mandatory service required under AS 47.07.030(a). He moved to subsection (b) (line 10) and explained that in the prior year an oversight occurred and the appropriation language had not included the words, "general fund" which was originally a reappropriation from the Fairbanks virology laboratory. The reappropriation was for an emergency medical services match for community ambulances for the Code Blue project. He pointed to the Department of Law appropriations in Section 13 (page 33, line 18) in the amount of $8.889.9 million to pay for judgments and settlements against the state. Mr. Michel addressed Sections 14 (page 33, line 27) regarding DNR and noted the sum of $3 million appropriated for fire suppression activities. He cited the Department of Revenue (DOR) appropriations in Section 15 (page 33, line 30) and noted the amount of $50 thousand for the costs associated with updating the tax revenue management system and tax forms and drafting regulations to implement a new surcharge on refined motor fuels for the fiscal year ending June 30, 2015. He added that Section 16 (page 34, line 3) was related to reappropriations for the Department of Transportation and Public Facilities. He reported that subsections (a) and (b) dealt with the class 5 injection well compliance and remediation project in the amount of $3.4 million. He shared that subsection (c) was a reappropriation for terminal improvements and a renovation project at the Ted Stevens Anchorage International Airport. He stated that subsection (d) reappropriated funds for the Kalsin Bay maintenance station that had burned down and needed replacement. Subsection (e) was the appropriation for the Dalton Highway disaster emergency repairs totaling $5 million. He directed attention to Section 17 (page 35, line 12) regarding Debt and Other Obligations and noted that the school bond debt decreased by $5 million dollars. He reported that Section 18(page 36, line 22) contained Ratifications which reflected expenditures already paid. He added that Section 19(page 35, line 21) included language related to Medicaid. Section 20(page 36, line 27) included a fund transfer in the amount of $13.3 million to the Alaska Housing Capital Corporation account. Section 21 (page 36, line 29) reappropriated $750 thousand from the Digital Teaching Initiative three year demonstration project to the Alaska Housing Capital Corporation. Subsection (b) reappropriated $875 thousand from the Alaska Public Safety Information Network (APSIN) to the Alaska Housing Capital Corporation. He noted that Section 22(page 36, line 27) Federal and Other Program Receipts had not changed and granted Legislative Budget and Audit authority to issue Revised Program Legislation (RPL) during the interim. Section 23 (page 37, line 25) Insurance Claims authorized receipt and expenditure of settlements related to insurance claims. 3:37:26 PM Mr. Michel continued with Section 34 (page 37, line 30), National Petroleum Reserve - Alaska Impact Grant Program that granted federal money to communities related to impacts from the oil and gas activities on the North Slope. He detailed that Section 25 (page 38, line 20) Alaska Aerospace Corporation, reappropriated funds from the corporation to the Hope Community Resources, Inc., for upgrades to housing to meet state licensing requirements. Subsection (b) reappropriated $3 million to the Alaska Housing Finance Corporation for the supplemental housing program. Vice-Chair Saddler asked what amount was reappropriated to Hope Community Resources, Inc. for licensing fees. Mr. Michel answered that there was a variety of capital appropriation items Hope Community Resources requested. The state requirements for licensing would cost Hope $125 thousand, which was the amount specified in the bill. Co-Chair Thompson asked members to hold questions until after Mr. Michel ended his sectional presentation. Mr. Michel addressed subsection (c) that reappropriated funds to the Cold Climate Housing Research Center. He turned to subsection (d) that reappropriated funds to the Fairbanks North Star Borough School District for renovations at the Barnette Magnet School. Subsection (e) reappropriated funds to DOT for the Alaska Marine Highway System vessel overhaul and rehabilitation. He moved to Section 26 (page 39, line 31) Commercial Vessel Passenger Tax Account, which reappropriated lapsed funds from the account back into the passenger tax account. Section 27 (page 40, line 7) Department of Commerce, Community and Economic Development, included a reappropriation for $33 thousand from the Alaska Energy Authority (AEA) Mount Spurr Geothermal Project reappropriated to the AEA electrical emergencies program. Subsection (b) reappropriated $9.5 million from the Mount Spurr Geothermal Project to the renewable energy grant fund. He shared that subsection (d) was a reappropriation to the Denali Commission, for a federal-state partnership grant. He moved on to Section 28 (page 40 line 28) Department of Education and Early Development which included reappropriations to pay for the current year's major maintenance projects for schools. He discussed Section 29 (page 41, line 19) Department of Environmental Conservation (DEC) which included reappropriations amounting to $3.026 million for a number of DEC projects for the Department of Environmental Conservation. He specified that $800 thousand was reappropriated to the Spill Prevention and Response (SPAR) account. 3:42:03 PM Mr. Michel shared that the numbered subsections under Section 29 listed the reappropriations made for the Naknek sewer relocation and system upgrade. He stated that Section 30, (page 45, line 28) Department of Health and Social Services included reappropriations that mitigated the mistake from the prior year when the words "general fund" was inadvertently omitted from the Fairbanks Virology Laboratory reappropriation. He reported that Section 31 (page 46, line 23) Department of Natural Resources, reappropriated funds to the unified permit automation and document management system for permit streamlining. Section 32 (page 46, line 28) Department of Public Safety reappropriated funds from the video judicial conference arraignment study in the amount of $100,000 for state trooper video equipment and storage. He noted that Section 33 (page 47, line 3) House Districts, were reappropriations that changed the scope of the same projects. He stressed that the projects were not new. Section 34 (page 47, line 21) House Districts 29 - 31 reflected a change in the same project. He noted that Section 35 (page 48, line 1) House Districts 29 - 31 was a reappropriation for the Inner Island Ferry Authority in the amount of $200 thousand. He stated that Section 36 House Districts 38 - 39 reflected a reappropriation for lapsing funds for the exact same project. Subsection (b) related to a pilot project program study that would enable the Norton Sound Health Corporation to takeover a juvenile justice facility for a behavioral health or wellness center to be paid entirely by federal money. Section 37 (page 48, line 21) Office of the Governor, reappropriated $500 thousand that was designated for Arctic Policy back into the general fund; other monies were reappropriated for Artic policy. He voiced that Section 38 (page 48, line 31) Reappropriation of Legislative Appropriations reappropriated funds to the Alaska Legislature, Legislative Council, Senate Special Committee on the Arctic, for work conducted last session. Subsection (b) totaled approximately $7.5 million and reappropriated funds for the Capitol building seismic retrofit. He noted that Section 39 (page 50, line 11) Shared Taxes and Fees, reflected the amount necessary to refund to local governments and other entities their share of taxes and fees collected for various programs for the fiscal year. Section 40 (page 50, line 19) Non-general Fund Receipts which pertained to the Mental Health Budget and related to Medicaid. He read the following language from Section 40: … [for the proposed expansion of the state's Medicaid program] may not be accepted or expended without an acceptable reformation plan and appropriation approved by the legislature.] Mr. Michel referred to Section 41 (page 51, line 7) Alaska Housing Capital Corporation (AHCC), which reappropriated funds from many items and deposited the money into the AHCC account. 3:46:28 PM He highlighted that subsection (a) reappropriated the remaining funds from the Mount Spurr Geothermal Project and that subsection (b) reappropriated the remaining balance of the Alaska Aerospace Corporation launch pad construction funds into the corporation's account. He reported that subsection (c) reappropriated the remaining $250 thousand from the state ferries $2.5 million appropriation into the AHCC account. He turned to subsection (d) totaling $27,108,103 of various lapsing project funds that reappropriated the lapsing funds into the AHCC account versus depositing the capital funds back into the general fund. The AHCC account funds were expended similarly to general funds. He delineated that the purpose of the account was to keep the previous capital dollars as capital funds for future capital expenditures. Co-Chair Thompson interjected that the AHCC account was created by the legislature several years ago "as a place to park money that was not sweepable." Mr. Michel noted that there were 93 numbered subsections of capital reappropriations into the AHCC account. Mr. Michel pointed to Section 42 (page 60, line 1) Repeals, and explained that in previous versions of the bill language was inserted that referred to the Constitutional Budget Reserve and was removed from the current version. He added that subsection (a) related to whether interest accrued for Alaska Marine Highway System (AMHS) could remain in the AMHS and subsection (b) referred to one-time education money. He addressed Section 43 (page 60, line 5) Lapse, which related to the various sections with lapsing funds. Subsection (b) related to funds that did not lapse. He detailed that Subsection (d) was language that designated all of the appropriations in the bill as capital in order to prevent the appropriations to be deposited into the department's operating budget. He remarked that Section 44 (page 60, line 15) Contingency, was contingency language. Section 45 (page 60, line 18) related to the supplemental appropriations contained in the legislation. Section 46 (page 60, line 19) related to "regular appropriations." Finally, Section 47 (page 60, line 21) were effective dates for Sections 45 and 46. 3:52:07 PM Mr. Michel reverted to Section 43, subsection (c) and remembered that $1.000.075 million for redistricting purposes was removed in the original governor's budget request. Co-Chair Neuman apologized to Pat Pitney, Director, Office of Management and Budget, Office of the Governor for an occurrence during budget discussions in his office earlier in the day. Representative Wilson asked for a breakdown of capital budget totals of general funds and federal funds. Mr. Michel replied that the capital budget was comprised of $114 million in unrestricted general funds, $60.8 million of designated general funds, $70.4 million of other state funds, and $1.277.650 billion of federal funds. Representative Gara asked whether the capital budget increased compared to the prior version of the bill. Mr. Michel answered that the bill included the supplemental budget and additional supplemental requests were included after discussions between the House and Senate occurred. He delineated that the difference between the two versions of the legislation totaled $48.415 million in general funds. He noted that $40 million was appropriated as FY 15 supplemental funds for Medicaid. An additional $250 thousand in designated general funds were included in the Senate version. The Senate decreased general funds by $2.5 million in other state funds for supplemental items. Representative Gara pointed to page 14 of the bill related to Knik Arm Crossing money in the amount of $45.3 million in federal funds. He wondered where the money was included in the prior version. Mr. Michel replied that the funds represented future federal receipt authority. He cited the item on page 14, line 26, the National Highway System and Non-National Highway System Pavement and Bridge Reconstruction and Refurbishment ($109,920,000) and explained that the item had been $45.3 million higher in the previous version of the bill. 3:56:51 PM Representative Gara wondered whether there was future receipt money in the prior bill version for the Knik Arm Crossing. Mr. Michel replied in the negative. Representative Gara referenced page 14, line 23, Knik Arm Crossing, and asked whether the money was future federal receipt authority. Mr. Michel affirmed. Mr. Michel, in response to a question by, Representative Gara answered that the item on line 26 was reduced by the same amount as the federal receipt authority of $45.3 million for the Knik Arm Crossing when included in the current version. Representative Munoz asked whether the $45.3 million for Knik Arm Crossing was consistent with former Governor Parnell's budget. Mr. Michel expressed uncertainty. Representative Munoz asked for a follow up on the information and in addition information on the Juneau Access numbers as well. Representative Guttenberg wondered what the impact of dedicating the federal receipt authority of $45.3 million had on other projects. Mr. Michel replied that, in discussions with DOT he discovered that removing the Knik Arm Crossing receipt authority from the item on line 26 was appropriate. The Highway System item acted as a placeholder for future receipt authority. He did not know the direct impact but was assured by the department and governor that the remaining $109 million was sufficient. 4:00:02 PM Representative Guttenberg pointed out that when the Statewide Transportation Improvement Program (STIP) committee met the STIP would be amended and some projects would move off of the list due to the large Knik Arm receipt authority. Co-Chair Neuman asked for verification that the increment had been requested by the DOT. Mr. Michel responded in the affirmative.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 26 CS WORKDRAFT FIN 041615 F version.pdf |
HFIN 4/16/2015 1:30:00 PM |
SB 26 |