Legislature(2019 - 2020)ADAMS ROOM 519
02/18/2020 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB205 || HB206 | |
| Department of Natural Resources | |
| Department of Labor and Workforce Development | |
| Legislature | |
| Department of Corrections | |
| Department of Commerce, Community and Economic Development | |
| Department of Law | |
| Judiciary | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 205 | TELECONFERENCED | |
| += | HB 206 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 205
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing 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."
HOUSE BILL NO. 206
"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."
9:05:51 AM
^DEPARTMENT OF NATURAL RESOURCES
9:05:58 AM
KERRY CROCKER, STAFF, REPRESENTATIVE GARY KNOPP, addressed
subcommittee recommendations for the for the Department of
Natural Resources (DNR) (copy on file):
The House Finance Budget Subcommittee for the
Department of Natural Resources submits recommended
operating budgets for FY 2021 to the House Finance
Committee.
The numbers-only budget with amendment recommendations
totals:
Fund Source: (In thousands of dollars)
Unrestricted General Funds (UGF) 65,595.0
Designated General Funds (DGF) 35,707.2
Other Funds 36,265.1
Federal Funds 15,964.6
TOTAL 153,531.9
The House Finance Budget Subcommittee for the
Department of Natural Resources held four meetings
with the Department analyzing the Governor's Budget.
The Subcommittee accepted 13 of the 16 Budget Action
Items proposed.
Positions:
Permanent Full-time 620
Permanent Part-time 247
Temporary 52
TOTAL 919
The following three items were not accepted:
• Transfer from North Latitude Plant Material
Center for business process efficiencies.
• Transfer Agriculture development allocation from
Agriculture appropriation to Fire, Land and
Water.
• Transfer to Agriculture development for business
process efficiencies.
The conversation in Committee revolved around the
impact these proposals could have on the Agriculture
Industry, which ultimately resulted in these items not
being adopted by this Subcommittee.
The following amendments were submitted to the
Department of Natural Resources House Finance
Subcommittee for consideration:
1) 5,000,000 UGF 1004 (Inc OTI) Add Funding to
create new transaction for "Fire Risk Reduction" and
Intent. Which will create a new transaction to fund
Fire Risk Reduction, create of fire risk reduction
projects including - but not limited to - fire breaks,
and maintenance of existing risk reduction projects.
2) $210,000 DGF 1021 - Agriculture Revolving Loan
Fund, adds one permanent full time position (Natural
Resource Specialist III, Range 18).
Both amendments were adopted.
ATTACHED REPORTS:
• Wordage Report
• Operating Budget Transaction Compare between
21Gov and House Sub
• Operating Budget Transaction Compare between
21Adj Base and House Sub
• Multi-year Agency Totals
9:09:34 AM
Representative LeBon referenced the natural resource
specialist III position. He asked if the department had
provided detail on the reason for adding the position
including what its function would be and what had been
missing prior to adding the position.
Mr. Crocker deferred to the Legislative Finance Division
(LFD).
ALEXEI PAINTER, ANALYST, LEGISLATIVE FINANCE DIVISION,
replied that the past year the governor had vetoed the
funding for two positions in the allocation that serviced
and provided new loans. The position would replace one of
the two positions from the previous year.
Representative Knopp added that there had been two people
servicing existing loans. He detailed there was about $8
million in the fund that was not being utilized because
there was no one there to originate and process the loans.
The position would take on the work.
Representative Sullivan-Leonard asked what fire suppression
funding had been included in the supplemental budget. She
asked what the discussion had been related to the
additional $5 million in the current budget.
Mr. Painter answered that the supplemental included $110
million for fire suppression activity. The subcommittee's
recommendations added funding to fire suppression
preparedness for upfront costs and purchases. He relayed
that the increment was paid for by a reduction of $5
million to fire suppression activity.
Representative Sullivan-Leonard asked Mr. Painter to repeat
his last statement.
Mr. Painter explained that the amendment adopted by the
subcommittee decreased fire suppression activity by $5
million and increased fire suppression preparedness by $5
million.
9:12:07 AM
Representative Wool referenced the addition of a permanent
position for the Agriculture Revolving Loan Fund. He asked
if the funding would come out of the fund and would
continue to draw the fund down. He considered the $218,000
for a salary range 18 and asked if the amount included
money above and beyond the cost of hiring the one position.
He thought the amount seemed out of balance for a range 18
position.
Mr. Painter responded that the interest rates on the loans
would pay for the position. He explained that previously
the loan program was roughly self-sustaining. He believed
the program had lost money due to the McKinley Meat and
Sausage Plant that had net losses; however, the loans
themselves had more than made up the loan administering
costs. The cost [$218,000] included the position and
services costs to pay the Administrative Services Division
for performing the technical work of servicing the loans.
Currently the division was doing the work without funding
directly from the loan program.
Vice-Chair Ortiz thought there had been a transfer of
positions for the purposes of increasing personnel to
permit mariculture projects within the DNR budget in the
current budget cycle.
Mr. Painter agreed that a governor's item had funded two
positions that had already been transferred but not yet
filled to assist with the permitting of mariculture
projects.
Vice-Chair Ortiz asked for verification the positions were
transferred in the past year and not filled.
Mr. Painter replied that the positions had been transferred
in the past few months. He believed the positions were
currently out for recruitment, but he noted that his
timeline may be a bit off.
^DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
9:14:34 AM
KERRY CROCKER, STAFF, REPRESENTATIVE GARY KNOPP, read from
a prepared budget narrative pertaining to the
subcommittee's budget recommendations for the Department of
Labor and Workforce Development (DLWD) (copy on file):
The House Finance Budget Subcommittee for the
Department of Labor and Workforce Development submits
the following recommended operating budget for FY2021
to the House Finance Committee:
Fund Source (Dollars are in thousands):
Unrestricted General Funds (UGF) $18,730.4
Designated General Funds (DGF) $38,143.5
Other Funds $17,390.7
Federal Funds $76.395.7
Total $150,660.3
Positions:
Permanent Full-time 633
Permanent Part-time 48
Temporary 22
TOTAL 733
The House Finance Budget Subcommittee for the
Department of Labor and Workforce Development held
four meetings with the Department analyzing the
Governor's Budget. The Subcommittee accepted 14 of the
15 Budget Action Items proposed.
BUDGET ACTION:
Accept the Department of Labor and Workforce
Development budget proposal, which includes these
highlights:
• Replace ($1,400.0) UGF with $1,400.0 GF/PR to
correct Categorization of certified payroll filing
fees
• Alaska Vocational Technical Center deletes positions
no longer needed after restructure ($226.7) UGF
• Close Kodiak field office and eliminate two
positions ($84.3) UGF
• Alaska Vocational Technical Center additional
authority for contract Training in response to
industry $234.1 DGF
• Budget action to reduce Labor Standards and Safety
Wage and Hour Administration (124.4) GF was not
Accepted
OTHER SUBCOMMITTEE ACTION:
The House Finance Budget Subcommittee for the
Department of Labor and Workforce Development
recommends that the committee include the following
language:
It is the intent of the Legislature that the
Department maintain fiscal year 2019 levels to sustain
or expand investigative capacity in the Wage and Hour
Administration Fairbanks Office.
ATTACHED REPORTS:
Wordage Report
Operating Budget Transaction Compare between 21Gov and
House Sub
Operating Budget Transaction Compare between 21Adj
Base and House Sub
Multi-year Agency Totals
9:17:58 AM
Vice-Chair Ortiz referenced the subcommittee's acceptance
of the governor's proposal to close the Kodiak field office
and eliminate two positions. He asked for verification that
the savings were only $84,300. He wondered if they had
heard from the department on the impact of the closure of
the Kodiak field office.
Mr. Crocker confirmed that the number was $84,000. He
relayed that the department had told the subcommittee that
the positions were not filled. He reported that the general
consensus had been that the reduction would have little to
no impact.
Vice-Chair Ortiz asked if a DLWD staff presence remained at
the Kodiak office.
Mr. Crocker answered that he did not believe there was any
staff at the location. The office would be closed.
Representative Wool referenced the subcommittee's rejection
of a $124,000 decrement proposed by the governor related to
Labor Standards and Safety Wage and Hour Administration. He
highlighted the subcommittee's recommendation to adopt
intent language to sustain or expand investigative capacity
in the Wage and Hour Administration Fairbanks Office. He
asked if the governor's proposed reduction of $124,000 was
for a Fairbanks position.
Mr. Crocker replied in the affirmative. It was the intent
of the subcommittee to add an investigator position in
Fairbanks.
Representative Wool asked if DLWD wanted to eliminate the
position.
Mr. Crocker answered that the department wanted to
eliminate an office assistant position. The subcommittee
recommended maintaining the current personnel levels in
Fairbanks.
9:20:26 AM
Representative Knopp requested to hear from the
department's administrative services director related to
the Kodiak office. He confirmed that an administrative
position had been slated for elimination. He reported that
a subcommittee member had expressed concern about all of
the work going on in Fairbanks and the need for oversight
in the wage and hour labor division. The governor's request
was to eliminate the position for $124,000. The
subcommittee had rejected the proposal and had opted to
have a position filled in the Fairbanks office for
oversight of all of the work taking place in the region. He
referenced the Kodiak field office and recalled DLWD had
reported there was no purpose for the office; it had no
business. He asked the department to elaborate on the
topic.
HANNAH LAGER, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF LABOR AND WORKFORCE DEVELOPMENT, OFFICE OF MANAGEMENT
AND BUDGET, OFFICE OF THE GOVERNOR, relayed there had been
two positions in the Kodiak office for vocational
rehabilitation - one position had been filled. The office
had been closed at the end of December and any clients in
Kodiak would receive service remotely from the Anchorage
office. She noted there was still a job service presence in
Kodiak that employed DLWD staff.
^LEGISLATURE
9:22:04 AM
RYAN JOHNSTON, STAFF, REPRESENTATIVE NEAL FOSTER, reviewed
the subcommittee recommendations for the legislature's
budget. The subcommittee recommended the acceptance of the
governor's proposed budget with two amendments. The
amendments included the addition of $100,000 UGF to the
Legislative Budget and Audit personal services line to
assist with statewide audits and intent language passed by
Legislative Council directing the legislature not to
appropriate funds to compensate the Office of Management
and Budget for accounting services. He listed the totals
for the legislature:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $64,677.4
Designated General Funds (DGF) $327.7
Other Funds $1,087.6
Federal Funds $00.0
Total $66,672.1
The Unrestricted General Fund difference from FY21
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $100.0 thousand of
Unrestricted General Funds, which is 0.02% above the
FY21 Adjusted Base.
Representative Sullivan-Leonard asked for detail on the
intent language that the legislature would not provide
funding for the Office of Management and Budget (OMB).
Mr. Johnston answered that recently OMB had started
directing departments to pay for the accounting services
provided by OMB and budget analysis while creating budgets.
He explained that the procedure was new, and he believed
Legislative Council had voted unanimously to not partake in
the practice.
9:24:32 AM
Representative LeBon looked at the addition of $100,000 UGF
for the Legislative Budget and Audit personal services
offsetting the vacancy factor. He asked if the subcommittee
lowered the vacancy factor to fund the money.
Mr. Johnston deferred the question to the Division of
Legislative Audit.
KRIS CURTIS, LEGISLATIVE AUDITOR, ALASKA DIVISION OF
LEGISLATIVE AUDIT, answered that the $100,000 was to help
reduce the division's vacancy factor. She detailed that
with the additional funds the division would have a vacancy
factor of 8.8 percent. The funds would help provide
additional resources to deal with the workload and issue
opinions on a timely basis. She elaborated that the
increment had been included in the governor's budget, but
it had been removed by OMB. She explained that the removal
of funding was similar to OMB's action taken on the Court
System budget. She found the action extremely troubling and
stated that it could be considered retaliatory in regard to
a qualified opinion. The governor's office had removed
$100,000 from its budget.
Representative LeBon referenced the phrase "offset the
vacancy factor." He asked whether the phrase meant that the
proposed vacancy factor was too high or too low.
Ms. Curtis replied that the language should say reduce the
vacancy factor.
Representative Wool asked if the division under discussion
was Ms. Curtis' division.
Ms. Curtis replied in the affirmative and clarified it was
the Division of Legislative Audit.
Representative Wool remarked that it was not to be confused
the Legislative Budget and Audit (LB&A) Committee.
Ms. Curtis replied that the Division of Legislative Audit
reports to the LB&A Committee. She noted that the LB&A
Committee had its own separate budget to preserve its
independence.
Representative Wool asked if the 0.2 percent increase to
the legislature's budget was from the $100,000.
Mr. Johnston answered affirmatively.
^DEPARTMENT OF CORRECTIONS
9:27:20 AM
ASHLEY CARRICK, STAFF, REPRESENTATIVE ADAM WOOL, addressed
subcommittee recommendations for the Department of
Corrections (DOC) with a prepared narrative (copy on file):
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $327,155.7
Designated General Funds (DGF) $13,915.7
Other Funds $25,944.8
Federal Funds $13,244.7
Total $380,260.9
The Unrestricted General Fund difference from FY20
Adjusted Base to the House Subcommittee budget
recommendation is a reduction of ($27,446.5) million
of Unrestricted General Funds, which is 9.2% below
FY20 Adjusted Base.
Permanent Full-time 2,021
Permanent Part-time 0
Temporary 0
Total 2,021
Ms. Carrick reported that the subcommittee held five
meetings and considered 36 governor's budget action items
and 6 subcommittee amendments. She reviewed action
highlights:
• Restore funding to reopen the Palmer Correctional
Center, $16,669.1 UGF
• Added intent language for the Department to open the
Palmer Correctional Center by January 1, 2021.
• Creation and consolidation of the Recruitment and
Retention Program and allocation, adding $163.2 UGF
and three new positions, and consolidating $286.8
UGF from existing allocations.
• Denied request to add authority for positions and
copy machines for photocopying incoming inmate mail;
($415.7 UGF).
• Added authority for additional drug dog to combat
contraband and federal Equitable Sharing Program
receipt authority, $253.2 UGF; $150.0 Fed.
• Denied Governor's proposal to send prisoners to
private prisons out of state; ($17,800.0 UGF).
• Added positions and authority to establish new re-
entry unit under Health and Rehabilitation Services;
$746.1 UGF and 3 new positions.
The House Finance Budget Subcommittee for the
Department of Corrections recommends that the
committee take the following actions:
• The subcommittee appropriated funding to reopen the
Palmer Correctional Center with the expectation that
the full House Finance committee will move these
funds into a language appropriation to ensure that
the funds are used for the specific purpose of re-
opening the facility in FY 21. If the full House
Finance Committee fails to move the funds to a
language appropriation, the subcommittee requests
that the Palmer Correctional Center allocation be
moved out of population management and established
as its own appropriation to prevent the transfer of
funds outside of the allocation.
• The subcommittee denied second-year funding for
House Bill 49 under the Institution Director's
Office and Physical Health Care with the expectation
that revised costs are forthcoming in the Governor's
amended budget.
9:30:59 AM
Representative Josephson asked how it was possible with the
passage of HB 49 [crime reform legislation passed in 2019]
the budget had been reduced from FY 20.
Ms. Carrick answered that the numbers received by the
governor's office had been projections from the passage of
HB 49 and needed to be updated. The Legislative Finance
Division had recommended accepting accurate numbers in the
full House Finance Committee instead of accepting the
projections.
Representative Josephson looked at the action item to
restore funding to reopen the Palmer Correctional Center.
He asked if a different word may work better. He remarked
that he was not asking to change the language but pointed
out that it was a continued request to restore funding.
Ms. Carrick agreed.
Co-Chair Johnston remarked there were two changes read by
Ms. Carrick where the zeros may have been misplaced.
Ms. Carrick agreed. She reread the first two items on page
2 of the narrative. The first was the creation and
consolidation of a recruitment and retention program
allocation for $163,200 and three new positions and the
consolidation of $286,800 UGF from existing allocations.
The second was the denial of a request to add authority for
positions and copy machines for incoming inmate mail,
resulting in a decrement of $415,700 UGF.
Representative Sullivan-Leonard asked about Ms. Carrick's
testimony regarding recalculating the governor's proposed
budget. She asked how the subcommittee knew the budget was
incorrect. She asked for clarification on what had been
changed or updated. She thought the statement that the
subcommittee had revised the governor's budget because it
was inaccurate was bold.
9:33:46 AM
KELLY CUNNINGHAM, ANALYST, LEGISLATIVE FINANCE DIVISION,
replied that the department had been communicating with
Representative Wool's office and LFD because amendments
were coming the following day. She explained that it would
give the legislature a clearer picture if the committee
waited for the amendments. The department had acknowledged
it needed to modify the institution director's office and
healthcare numbers due to changes from HB 49 and the new
fiscal year. She explained that the statement was not
accusatory. She believed the department had stated it would
be submitting related amendments.
Representative Sullivan-Leonard looked at $404,739,000
proposed by the governor. She asked for verification that
the number would be amended by forthcoming amendments.
Ms. Cunningham clarified that she had been speaking to the
$24 million difference from the governor's budget. She
detailed that the difference was primarily comprised of the
institutional director's office item plus healthcare. She
explained that it was not really a $24 million reduction,
the number accounted for increments that had not been
accepted as of yet because the committee was waiting for
amendments.
^DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
9:35:34 AM
STEPHANIE ANDREW, STAFF, REPRESENTATIVE ADAM WOOL,
addressed subcommittee recommendations for the Department
of Commerce, Community and Economic Development (DCCED)
with a prepared narrative (copy on file):
The House Finance Budget Subcommittee for the
Department of Commerce, Community and Economic
Development submits the following recommended
operating budget for FY2021 to the House Finance
Subcommittee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $8,462.9
Designated General Funds (DGF) $54,572.1
Other Funds $48,476.6
Federal Funds $21,023.5
Total $132,535.1
The Unrestricted General Fund difference from FY21
Adjusted Base to the House Subcommittee budget
recommendation is a reduction of $103.2 thousand,
which is 1.2% below FY21 Adjusted Base.
Ms. Andrew reported that the use of UGF was down 72.5
percent since FY 15 management plan. She detailed that the
subcommittee had adopted 17 of the 18 budget action items
proposed by the governor. The subcommittee had rejected a
decrement of $546,600 UGF from the Economic Development
Division. The subcommittee adopted two amendments. The
first amendment pertained to intent language relating to
Alaska Industrial Development and Export Authority (AIDEA)
and utilizing a competitive bid process. The second
amendment was a decrement of $110,300 in AIDEA receipt
authority.
^DEPARTMENT OF LAW
9:37:34 AM
CATHERINE REARDON, STAFF, REPRESENTATIVE ANDY JOSEPHSON,
addressed subcommittee recommendations for the Department
of Law (DOL) with a prepared narrative (copy on file):
The House Finance Budget Subcommittee for the
Department of Law submits the following recommended
operating budget for FY21 to the House Finance
Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $51,720.6
Designated General Funds (DGF) $2,691.0
Other Funds $32,504.0
Federal Funds $2.026.2
Total $88,941.8
Positions:
Permanent Full-time 528
Permanent Part-time 0
Temporary 0
Total 528
The budget recommended by the Subcommittee is $755
thousand lower in UGF funding than the Governor's
Requested Budget for FY21. It is $847.7 higher in UGF
funding than the FY21 Adjusted Base. This increase
from Adjusted Base is due to a fund source change from
Power Costs Equalization Endowment Funds to UGF for
costs associated with anti-crime legislation that
passed last session.
BUDGET ACTION:
The House Finance Budget Subcommittee accepted the
Governor's proposed changes to the FY2 l Adjusted Base
which include:
• $1,602.7 fund source change from PCE Endow (DGF) to
UGF to maintain ongoing Criminal Division activities
related to enactment of House Bill 49.
• $300.0 Statutory Designated Program Receipts (Other)
increment and 2 positions added to utilize funding
from the North Slope Borough to increase staffing in
the Utqiagvik District Attorney's Office
• $500.0 Federal Receipts (Fed) increment and 3
positions added to utilize grant money from the U.S.
Department of Justice for staff to focus on felony
crimes in rural Alaska.
• -$224.8 AOGCC Receipts (DGF) decrement because these
funds are no longer needed.
Ms. Reardon reported that the subcommittee had spent a
great deal of time focusing in detail on two areas that
were subjects of intent language in the FY 20 budget. The
topics were recruitment and retention difficulties,
particularly in the Criminal Division. Discussion also
included the Civil Division and the issue of outside
counsel and associated costs. The recruitment and retention
discussion included reviewing a report from the department
that had been submitted in response to the FY 20 intent
language showing that high levels of turnover and vacancy
problems continued. The issue was especially critical in
the Criminal Division and rural areas of the state. The
problem related to paralegals, support staff, and
attorneys. She noted the department had been clear that no
action by the legislature through the budget was required
or desired at present. She elaborated that it had raised
the issue of whether there was excess personal services
funding in the department, which was a concern because the
funding could be spent elsewhere as personal services could
be moved to other line items.
Ms. Reardon expounded that the subcommittee had adopted
intent language for FY 21 directing that personal services
funding should be spent on personal services and if it was
not needed, the funding should lapse rather than be used in
other areas.
The Subcommittee also made the following reductions to
the Civil Division:
• $400.0 (UGF) decrement from the Labor and State
Affairs allocation for reduced expenses for outside
counsel.
• $375.0 (UGF) decrement and deletion of three
positions from the Special Litigation allocation
reflecting high vacancy in the Civil Division and
the need to reduce state spending.
Ms. Reardon highlighted outside counsel as another major
issue of focus. The FY 20 budget included intent language
directing the department to minimize the use of outside
counsel. The subcommittee had looked closely at contracts
that had been entered into for outside counsel in the
current fiscal year - specifically 11 contracts and
$300,000 spent by the labor and state affairs allocation in
the past six months and a new contract for $600,000 entered
into by the same division. The subcommittee had reviewed
the terms of the contracts and had asked about
prioritization and negotiation of rates and had decided to
reduce the labor and state affairs allocation by $400 in
the services line.
Ms. Reardon shared that testimony from DOL indicated that
despite a reduction in funding it was likely funds would be
transferred to continue to fund some of the high dollar
contracts. As a result, the subcommittee decided to create
a separate appropriation to segregate money available to be
used for contracts for outside counsel related to the Janus
[v AFSCME U.S. Supreme Court] decision. The subcommittee
funded the new appropriation with $20,000 and renamed the
existing Civil Division appropriation to make it clear that
funding was not to be used from that appropriation for the
$600,000 contract.
9:44:29 AM
Representative Wool considered the outside contract
funding. He remarked that the subcommittee suggested that
the monies were separated and isolated and could not be
used for the Janus decision. He surmised that the action
limited the department's outside contracting money. He
asked if the action pertained to the one particular case
only.
Ms. Reardon replied that the separate appropriation was
only for the specific Janus case. She clarified that the
limit was on the expenditure for outside counsel. The
department retained its ability to use its own attorneys to
pursue whatever cases it wanted.
Representative Wool asked if the department was limited to
the same pool of money if another case arose where the
department needed outside counsel. Alternatively, he
wondered if DOL could find money elsewhere for another high
profile case such as Citizens United.
Ms. Reardon answered that the separate appropriation only
related to a limitation on contracting for interpretation
of the Janus [U.S.] Supreme Court decision. Any other
outside counsel could continue to be contracted and spent
from the Civil Division appropriation.
Representative Sullivan-Leonard stated her understanding
that the subcommittee action reduced staff within the Civil
Division and reduced the division's ability to seek
assistance from outside counsel as needed. She asked how
that would work. She did not believe it made sense to
reduce staff if the department could not seek to use
outside counsel to assist on particular issues coming
before the state. She asked for the rationale.
Ms. Reardon answered that the Civil Division underspent its
personal services budget by over $3 million in FY 19. She
noted that the money had not all been UGF. The reduction to
the special litigation allocation and the reduction of
positions related to the impression that possibly there
were more funds for other uses in the department than were
necessary, not as an attempt to reduce the department's
ability to engage in civil activities or trigger layoffs.
The decision to limit the contract expenditure on Janus
followed the $100,000 expenditure for work that already
occurred the past fall. She expounded that the subcommittee
had determined that in tight economic times, another
$20,000 was sufficient.
9:48:45 AM
Representative Josephson emphasized that the subcommittee
had found that a typical prudent vacancy rate was in the 4
percent range. He highlighted that DOL's vacancy rate was
12 percent. The subcommittee had asked the chief of staff
in two separate hearings whether the number seemed accurate
and the individual did not suggest that it was inaccurate.
The department had the revenue and the subcommittee had
tracked the spending carefully in two sections. Funds had
been used in part to fund a very expensive contract. He
detailed that DOL had obtained a reduced rate from $950 per
hour to $600 per hour from a Washington law firm. Given the
continuing large vacancy rate, the subcommittee did not
believe there would be any termination of attorneys within
DOL. As an attorney, he was predisposed to appreciate their
work and he clarified that he was not trying to pink slip
anyone.
Representative LeBon asked if the committee was going down
a slippery slope by managing the department's decision
making process by choking off funding for an issue -
through appropriation - that the subcommittee may not agree
with. He wondered if the opposite was a possibility where
the subcommittee may encourage funding for outside counsel
on an issue it agreed with and expect the department to
take that type of action. He highlighted the issue was a
two-way street and wondered whether the issue had come up
in discussion at the subcommittee level.
Ms. Reardon responded that the subcommittee had discussed
the issues in detail and with some complexity.
Representative Josephson believed Representative LeBon made
a good point that the legislature was not supposed to
micromanage the administration's ability to do largely what
it wished to do, albeit, the legislature was the
appropriating body. The subcommittee had concluded that in
tight fiscal times, "this sort of contract" was not
fiscally responsible, especially given that no other state
in the union had made the legal arguments being made in
Alaska. He noted that the administration was free to use
its own assistant attorneys general to litigate the issue
to whatever extent desired.
9:52:09 AM
Representative Merrick referenced the reduced rate of $600
per hour. She asked how the rate compared to the hourly
cost of in-house counsel.
Ms. Reardon believed DOL charged $169 per hour to
departments for services.
Representative Carpenter believed he had just heard there
was a conflict of opinion between members of the
legislature and the executive on how to apply the Janus
decision and the legislature was decrementing funds to
further its opinion. He stated that if the legislature
disagreed with how the executive was dealing with the
situation, there were other means to deal with the issue in
the legal arena. He opined that reducing funding to make it
more difficult for the department to do its job was not
appropriate. He highlighted that the committee had just
heard from another department where the governor's office
was supposedly doing the same thing to the legislature and
"we got indignant about it." He saw it as hypocrisy.
Vice-Chair Ortiz surmised that in the name of fiscal
responsibility, it seemed reasonable for the subcommittee
to act to restrain spending on contracting out for $900 per
hour. He believed committee members were all onboard with
being fiscally responsible.
Co-Chair Foster noted it was not the end of the issue and
there may be some amendments. He expected the committee to
take up amendments the following week.
^JUDICIARY
9:54:57 AM
CATHERINE REARDON, STAFF, REPRESENTATIVE ADAM WOOL,
addressed subcommittee recommendations for Judiciary with a
prepared narrative (copy on file):
The House Finance Budget Subcommittee recommends that
the budget requested by the Alaska Court System FY21
be approved in full:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $110,706.5
Designated General Funds (DGF) $518.0
Other Funds $2,206.1
Federal Funds $975.6
Total $114,406.2
Positions:
Permanent Full-time 733
Permanent Part-time 37
Temporary 5
Total 775
The Subcommittee recommends that the budget requested
by the Alaska Court System be approved by House
Finance Committee. The Court System request is
$2,902.1 thousand above the FY21 Adjusted Base in UGF
funding and $334.7 thousand UGF above the budget
submitted by the Governor.
Ms. Reardon highlighted that over $1 million of the UGF
increase was due to a fund source change from Power Cost
Equalization Endowment funds to UGF for costs associated
with anti-crime legislation that passed the previous
session.
Ms. Reardon detailed that the Judicial Branch had three
separate appropriations. The primary appropriation was the
Court System. Appropriations for therapeutic courts, the
Commission on Judicial Conduct, and the Judicial Council
were much smaller.
Ms. Reardon reported that the Court System had requested
nine changes from its adjusted base budget, which could be
grouped into increments to address the backlog in criminal
appeals, increments to maintain and strengthen the
therapeutic court system, and increments for overhead and
operational costs such as facility maintenance and leases,
payments to the executive branch for risk management and
archiving, and the services provided by the Office of
Management and Budget. She noted the last item was similar
to the topic discussed in the Legislative Branch
discussion.
Ms. Reardon relayed that the subcommittee had found the
Judicial Branch's request to be reasonable and recommended
its adoption.
Representative Knopp asked for the amendment deadline.
Co-Chair Foster replied it would most likely be the coming
Saturday. He would follow up with a set deadline.
Representative Wool asked when the committee would hear the
subcommittee report for the University budget.
Co-Chair Foster relayed that the University subcommittee
had its closeout scheduled for 5:00 p.m. that afternoon.
The committee would hear the subcommittee report at a
meeting the following morning.
HB 205 was HEARD and HELD in committee for further
consideration.
HB 206 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the schedule for the afternoon
meeting.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 205 SubC Reports DNR 021720.pdf |
HFIN 2/18/2020 9:00:00 AM |
HB 205 |
| HB 205 SubC Reports DOC 021720.pdf |
HFIN 2/18/2020 9:00:00 AM |
|
| HB 205 SubC Reports DCCED 021720.pdf |
HFIN 2/18/2020 9:00:00 AM |
|
| HB 205 SubC Reports LEG 021820.pdf |
HFIN 2/18/2020 9:00:00 AM |
HB 205 |
| HB 205 SubC Reports DLWD 021820.pdf |
HFIN 2/18/2020 9:00:00 AM |
HB 205 |
| HB 205 SubC Reports JUD 021820.pdf |
HFIN 2/18/2020 9:00:00 AM |
HB 205 |
| HB 205 SubC Reports LAW 021820.pdf |
HFIN 2/18/2020 9:00:00 AM |
HB 205 |