02/28/2018 01:30 PM House FINANCE

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."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 286                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     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."                                                                                                        
                                                                                                                                
2:06:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton read from a prepared statement:                                                                                 
                                                                                                                                
     Legislative  Finance  and  Legislative  Legal  Services                                                                    
     have developed  two committee  substitutes, HB  285 and                                                                    
     HB 286, based on the  amendments that were adopted. The                                                                    
     Legislative  Finance reports  are  in members'  packets                                                                    
     and will  be posted once the  new committee substitutes                                                                    
     are adopted.  In addition to these  reports Legislative                                                                    
     Finance will post their usual department reports.                                                                          
                                                                                                                                
     The total GF report shows  an increase of $71.7 million                                                                    
     over  the FY  19 governor's  amended budget  for agency                                                                    
     and  statewide  operations.  The  UGF  only  report  on                                                                    
     unrestricted general  funds shows an increase  of $39.7                                                                    
     million over  the FY 19  governor's amended  budget for                                                                    
     agency  and  statewide   operations.  The  total  funds                                                                    
     report shows an increase of  $51 million over the FY 19                                                                    
     governor's  amended  budget  for agency  and  statewide                                                                    
     operations.                                                                                                                
                                                                                                                                
     The  larger unrestricted  general fund  changes include                                                                    
     the  addition  of $19  million  for  the University  of                                                                    
     Alaska; the temporary addition of  $18 million for K-12                                                                    
     to  replace  $18 million  of  the  Public School  Trust                                                                    
     funds until  the legislation is adopted;  the temporary                                                                    
     deletion  of  $20  million  from  the  Senior  Benefits                                                                    
     Program  until   the  reauthorization   legislation  is                                                                    
     adopted and  we also adopted  intent to fully  fund the                                                                    
     program; and the addition of  $49 million to capitalize                                                                    
     the oil  and gas  tax credit fund  and the  deletion of                                                                    
     $27 million from the governor's  oil and gas tax credit                                                                    
     financing legislation.                                                                                                     
                                                                                                                                
     HB 286  includes a  4.75 percent  of market  value draw                                                                    
     from the  Permanent Fund  Earnings Reserve  Account; 67                                                                    
     percent  of the  draw  or  $1 [indecipherable]  billion                                                                    
     would be deposited  in the General Fund  and 33 percent                                                                    
     of the draw,  which is $813 million  would be deposited                                                                    
     into  the  dividend  fund  resulting  in  an  estimated                                                                    
     Permanent Fund  Dividend of $1,258.  The Constitutional                                                                    
     Budget Reserve  Fund would  contribute $1.1  billion to                                                                    
     filling  the budget  deficit and  provide $100  million                                                                    
     for future FY 19 supplementals.                                                                                            
                                                                                                                                
     Those  are  some of  the  larger  amendments that  were                                                                    
     adopted. As  all are aware  these budget bills  are not                                                                    
     the  final  bills.  The   committee  will  take  public                                                                    
     testimony  on  these  versions   of  the  budget  bills                                                                    
     tomorrow,  Friday, and  Saturday.  After  the close  of                                                                    
     public testimony amendments  on both HB 285  and HB 286                                                                    
     are  due to  the Legislative  Finance Division  via the                                                                    
     amendment  system  by  5:00 p.m.,  Saturday,  March  3.                                                                    
     Members  are strongly  encouraged to  submit amendments                                                                    
     to  Legislative Finance  before  that  deadline, so  we                                                                    
     don't  get  a  backlog  at   the  end.  Next  week  the                                                                    
     committee will  take up the new  amendments. The result                                                                    
     of that  process will be  the operating budget  that is                                                                    
     moved to the House floor.                                                                                                  
                                                                                                                                
2:08:57 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster MOVED to ADOPT the proposed committee                                                                           
substitute for HB 286, Work Draft 30-GH2564\O (Wallace,                                                                         
2/28/18). There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for HB  285,  Work  Draft 30-GH2566\O  (Wallace,                                                                    
2/27/18). There being NO OBJECTION, it was so ordered.                                                                          
                                                                                                                                
Representative Wilson  pointed to  page 62, lines  9 through                                                                    
11 of HB 286. She asked  if the increment included all three                                                                    
Eielson Air Force Base schools.                                                                                                 
                                                                                                                                
2:11:08 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:12:13 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton  relayed that the information  [requested by                                                                    
Representative Wilson]  would be provided by  the department                                                                    
at a later time.                                                                                                                
                                                                                                                                
Representative  Wilson  referenced the  Legislative  Finance                                                                    
Division   report  titled   "Multi-year  Agency   Summary  -                                                                    
Operating Budget  - FY  2019 House  Structure" for  total GF                                                                    
dated February 28,  2018 (copy on file). She  pointed to the                                                                    
Department  of  Health  and  Social  Services  (DHSS)  line,                                                                    
showing a decrease of $18,086,100.  She understood that some                                                                    
of  the  reduction was  to  account  for a  separate  senior                                                                    
benefits bill. She thought there  had been an increase of 41                                                                    
positions  for public  assistance, but  the numbers  did not                                                                    
appear to reflect that.                                                                                                         
                                                                                                                                
2:13:28 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:14:41 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
LACEY  SANDERS,   ANALYST,  LEGISLATIVE   FINANCE  DIVISION,                                                                    
replied  that  the  change  in  the DHSS  GF  budget  was  a                                                                    
combination  of  a  $20 million  reduction  for  the  Senior                                                                    
Benefits Program  and an increase  of $1.9 million  from the                                                                    
Alaska Comprehensive Health  Insurance Fund (also considered                                                                    
a designated  general fund). Additionally, there  was a $2.2                                                                    
million   increase  to   address  the   backlog  in   public                                                                    
assistance field services.                                                                                                      
                                                                                                                                
HB  285  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB 286 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Seaton reviewed the agenda for the following day.