Legislature(2009 - 2010)

03/08/2010 03:14 PM FIN


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03:14:36 PM Start
03:15:07 PM HB302
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HOUSE BILL NO. 300                                                                                                            
                                                                                                                                
        "An Act making appropriations for the operating and                                                                     
        loan program expenses of state government, for certain                                                                  
        programs,       and   to   capitalize       funds;     making     supplemental                                          
        appropriations;           making     appropriations           under     art.    IX,                                     
        sec.    17(c),      Constitution        of    the   State     of   Alaska;      and                                     
        providing for an effective date."                                                                                       
                                                                                                                                
HOUSE BILL NO. 302                                                                                                            
                                                                                                                                
        "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."                                                                                                     
                                                                                                                                
3:15:07 PM                                                                                                                    
                                                                                                                                
Co-Chair      Hawker      noted     that    the    purpose      of   the    meeting     was                                     
to   process      amendments        to   the    operating       budget     (HB    300   and                                     
HB   302)    and   provided      a  broad     overview      of   the   amendments.        He                                    
added     that    the   committee       would     address      the   gasline      funding                                       
amendment       at   a  future     meeting.      He   explained      that    a   majority                                       
of   members     present      (six    votes)     would    be   required      to   move    an                                    
amendment from committee.                                                                                                       
                                                                                                                                
3:19:29 PM                                                                                                                    
                                                                                                                                
Amendment 1                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 1:                                                                                     
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
        Austerman, Fairclough, Joule, Kelly, Doogan                                                                             
                                                                                                                                
        Part 1:                                                                                                               
                                                                                                                                
        DEPARTMENT:                    Commerce, Community & Economic                                                       
                         Development                                                                                          
        APPROPRIATION:                 Alaska Seafood Marketing Institute                                                     
        ALLOCATION:                    Alaska Seafood Marketing Institute                                                     
        ADD:                           $500.0 GF/PR (1005)                                                                    
        DELETE:                        $500.0 RSS (1156)                                                                      
                                                                                                                              
        EXPLANATION:           $500.0        of      the      Governor's          amended                                     
        request      for    approximately         $10    million      of   RSS    was   not                                   
        switched      from    RSS    to  GF/PR     in   the    House    CS   as   part    of                                    
        the     Budget       Clarification           Project.        This      amendment                                        
        corrects       this     oversight       and     will     not    impact      ASMI's                                      
        budget.                                                                                                                 
                                                                                                                                
        Part 2:                                                                                                               
                                                                                                                                
        DEPARTMENT:                    Environmental Conservation                                                           
        APPROPRIATION:                 Environmental Health                                                                   
        ALLOCATION:                    Laboratory Services                                                                    
        DELETE:                        $100.4 GF (1004)                                                                       
                                       Plus 1 PFT position                                                                    
        APPROPRIATION:                 Environmental Health                                                                   
        ALLOCATION:                    Food Safety & Sanitation                                                               
        ADD:                           $100.4 GF (1004)                                                                       
                                       Plus 1 PFT position                                                                  
                                                                                                                                
        EXPLANATION:        This     amendment       is   a   technical       correction                                      
        to   the    allocation       selected       for    amendment       #1   that    was                                 
        offered      and     accepted       at   the     DEC    House      Subcommittee                                         
        closeout.               The       original         increment           adds       an                                    
        Environmental         Health      Technician        and    related      costs     in                                    
        support       of    the     permitting         and     inspection         of    new                                     
        shellfish       farms.         This    increment        was    placed      in   the                                     
        Laboratory         Services       allocation         but     DEC     wants      the                                     
        increment       placed      in    the    Food     Safety      and     Sanitation                                        
        allocation.               Both      allocations           are      within       the                                     
        Environmental Health appropriation in DEC.                                                                              
                                                                                                                                
        Part 3:                                                                                                               
                                                                                                                              
        DEPARTMENT:                    Fish and Game                                                                          
        APPROPRIATION:                 Sport Fisheries                                                                        
        ALLOCATION:                    Sport Fisheries                                                                        
        ADD:                           $450.1 Fish and Game Fund (1024)                                                       
        DELETE:                        $450.1 GF Program Receipts (1005)                                                      
        ADD:  The following new LANGUAGE subsection to Sec. 25:                                                             
        Fees     collected       at    boating       and    angling      access      sites                                      
        managed       by     the     Department         of     Natural        Resources,                                        
        division       of    parks      and    outdoor       recreation,         under      a                                   
        cooperative             agreement            authorized            under          AS                                    
        16.05.050(a)(6),           during      the    fiscal      year     ending      June                                     
        30,    2011,     estimated       to   be   $450,100,        are    appropriated                                         
        to the fish and game fund (AS 16.05.100).                                                                               
                                                                                                                              
        EXPLANATION:          The     U.S.      Fish      and     Wildlife        Service                                     
        expressed       concern      that    a   portion      of   the    fund    changes                                       
        associated         with      the     budget       clarification           project                                       
        provide      insufficient        tracking       of   boating      access     fees.                                      
        The    federal      government        prefers      that     boating      receipts                                       
        be   deposited       into    the   F&G    fund.     This    amendment       aligns                                      
        revenue       and    expenditures          with      federal      requirements                                          
        (see explanation below).                                                                                                
                                                                                                                                
        The    U.S.    Fish    and    Wildlife       Service      requires      that    all                                     
        user    fees    collected      on   federally       acquired      or   developed                                        
        facilities       must    be    used    for   maintenance        and    operation                                        
        of   those      facilities.        ADF&G      Sport     Fisheries        division                                       
        has     current       and     ongoing       grants       with     USFWS      which                                      
        creates      a  federal      nexus     to    these    user     fees    collected                                        
        by Department of Natural Resources (DNR).                                                                               
                                                                                                                                
        Under     U.S.    Fish     and   Wildlife       Service      (USFWS)      federal                                       
        grants,      all   user    fees     collected       on   federally       acquired                                       
        or   developed       facilities        must    be    used    for    maintenance                                         
        and     operation         of     those       facilities.          ADF&G      Sport                                      
        Fisheries       division      has   current      and   ongoing      grants     with                                     
        USFWS    which     creates     a   federal     nexus     to  these     user    fees                                     
     collected by Department of Natural Resources (DNR).                                                                        
                                                                                                                                
        A   cooperative         agreement        provides       the     mechanism       for                                     
        transfer      of   user    fees    from    DNR    to   ADF&G    Fish    and    Game                                     
        fund.      Federal        Office       of    Inspector         General       (OIG)                                      
        auditors      have    approved      this    process      and   the   deposit      of                                    
        the   fees    in   the   Fish    and   Game    fund    as   it   ensures     ADF&G                                      
        maintains       control      over    the    funds     and    the    maintenance                                         
        and operation of the facilities.                                                                                        
                                                                                                                                
        Part 4:                                                                                                               
                                                                                                                                
        DEPARTMENT:                    Natural Resources                                                                    
        APPROPRIATION:                 Resource Development                                                                   
        ALLOCATION:                    Recorder's                      Office/Uniform                                         
                                       Commercial Code                                                                          
        ADD:                           $4,470.4 GF/PR (1005)                                                                  
        DELETE:                        $4,470.4 RSS (1156)                                                                    
                                                                                                                                
        EXPLANATION:           $4,470.4       of    the    Governor's        request      of                                  
        RSS   was   not    switched      from    RSS   to   GF/PR    in   the    House    CS                                  
        as   part     of    the    Budget      Clarification         Project.          This                                     
        amendment       corrects      this    oversight       and    will    not    impact                                      
        the      Recorder's          Office/Uniform             Commercial          Code's                                      
        budget.                                                                                                                 
                                                                                                                                
        Part 5:                                                                                                               
                                                                                                                                
        DEPARTMENT:                    Public Safety                                                                          
        APPROPRIATION:                 Alaska State Troopers                                                                  
        ALLOCATION:                    Narcotics Task Force                                                                 
        DELETE:                        $25.2 Stimulus09 (1212)                                                                
                                                                                                                                
        EXPLANATION:          The     Governor        requested        a    $25.2      fund                                   
        source      change     from     one-time       ARRA    funding       to   general                                       
        funds     to   cover      salary     adjustments         for    existing       PSEA                                     
        bargaining       agreements.           The    basis    of    the   request      was                                     
        that    the    ARRA    fund     source     was    "unrealizable"          in   this                                     
        allocation in FY11.                                                                                                     
                                                                                                                                
        While    it   may   be   true    that    no   new   ARRA    receipts      will    be                                    
        available       in   FY11,     carryforward         of   $5.4     million      ARRA                                     
        receipts      is   anticipated.           In   this    situation,       the    fund                                     
        change     is   not    necessary       because      the    ARRA    fund     source                                      
        will    be    available        in   FY11.     However,       by    denying      the                                     
        agency's      request,       the   subcommittee         not   only     denied     an                                    
        increase       in   GF,    but    also    appropriated         new    FY11     ARRA                                     
        funding.                                                                                                                
                                                                                                                                
        This      amendment        eliminates          new     ARRA      authorization                                          
        (which       is      not      expected         to      be     available)          in                                    
        anticipation         of   using      a   portion      of   the    allocation's                                          
        $5.4     million       ARRA     carryforward          to    pay     the     salary                                      
        adjustments.                                                                                                            
                                                                                                                                
        Part 6:                                                                                                               
                                                                                                                                
        DEPARTMENT:                    Revenue                                                                              
APPROPRIATION:                 Child Support Services Division                                                                
ALLOCATION:                    Child Support Services Division                                                                
        DELETE:       Page,      37,    lines      6-9,      all    material,        which                                    
        reads:     The    amount      appropriated         by   this     appropriation                                          
        includes       the     unexpended        and    unobligated         balance       on                                    
        June    30,     2010,     of    the    receipts       collected       under     the                                     
        state's        share      of     child       support        collections         for                                     
        reimbursement          of    the    cost     of    the     Alaska      temporary                                        
      assistance program as provided under AS 25.27.120.                                                                        
                                                                                                                                
        EXPLANATION:            The    deleted       language       permits      CSSD     to                                  
        carry-forward          receipts       from    the     prior     year.     Because                                       
        the   CS   replaced       receipts      with    General      Fund    Match,     the                                     
        language is unnecessary.                                                                                                
                                                                                                                              
        Part 7:                                                                                                               
                                                                                                                              
        DEPARTMENT:                    Revenue                                                                              
APPROPRIATION:                 Child Support Services Division                                                                
ALLOCATION:                    Child Support Services Division                                                                
        ADD:                           $297.0 Stimulus09  (1212)                                                              
        Transaction Type:              Inc OTI                                                                                
                                                                                                                              
        EXPLANATION:         This    amendment       authorizes        expenditure        of                                  
        $297,000       of   federal      FY10     ARRA    Stimulus       Funds.        This                                     
                                                                                           st                                   
        funding      will    be   available        to   the    Division      in    the   1                                      
        quarter of state FY11.                                                                                                  
                                                                                                                                
        Part 8:                                                                                                               
                                                                                                                                
        DEPARTMENT:                    Transportation & Public Facilities                                                   
        APPROPRIATION:                 Design, Engineering & Construction                                                     
        ALLOCATION:                    SE Design and Engineering Services                                                     
        ADD:                           $50.0         General          Fund        Program                                     
                                       Receipts (1005)                                                                          
        DELETE:                        $50.0 Receipt Supported Services                                                       
                                       (1156)                                                                                   
                                                                                                                                
        EXPLANATION:           This    was   an   omission       in  the    fund    source                                    
        changes      that    are    a   part     of   the    Budget      Clarification                                          
        Project.                                                                                                                
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair      Hawker     detailed      that    Amendment       1  was    a  Legislative                                         
Finance       Services        technical        amendment         with     a    net     zero                                     
financial         effect.        The     amendment         that      would       properly                                       
classify fund sources.                                                                                                          
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, Amendment 1 was ADOPTED.                                                                                     
                                                                                                                                
3:20:19 PM                                                                                                                    
                                                                                                                                
Amendment 2                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 2 (26-GH2823\M.10,                                                                     
Bailey, 3/8/10):                                                                                                                
                                                                                                                                
        Page 65, line 30:                                                                                                       
                Delete "$35"                                                                                                    
                Insert "$50"                                                                                                    
                                                                                                                                
        Page 66, line 1, following "section":                                                                                   
           Insert ", estimated to be $13,500,000,"                                                                              
                                                                                                                                
        Page 66, line 5:                                                                                                        
                Delete "$35"                                                                                                    
                Insert "$50"                                                                                                    
                                                                                                                                
        Page 66, line 7, following "section":                                                                                   
           Insert ", estimated to be $13,500,000,"                                                                              
                                                                                                                                
        Page 66, line 17, through page 68, line 10:                                                                             
                Delete all material and insert:                                                                                 
                "$90   or   more       $20,000,000                                                                              
                89                      19,500,000                                                                              
                88                      19,000,000                                                                              
                87                      18,500,000                                                                              
                86                      18,000,000                                                                              
                85                      17,500,000                                                                              
                84                      17,000,000                                                                              
                83                      16,500,000                                                                              
                82                      16,000,000                                                                              
                81                      15,500,000                                                                              
                80                      15,000,000                                                                              
                79                      14,500,000                                                                              
                78                      14,000,000                                                                              
                77                      13,500,000                                                                              
                76                      13,000,000                                                                              
                75                      12,500,000                                                                              
                74                      12,000,000                                                                              
                73                      11,500,000                                                                              
                72                      11,000,000                                                                              
                71                      10,500,000                                                                              
                70                      10,000,000                                                                              
                69                       9,500,000                                                                              
                68                       9,000,000                                                                              
                67                       8,500,000                                                                              
                66                       8,000,000                                                                              
                65                       7,500,000                                                                              
                64                       7,000,000                                                                              
                63                       6,500,000                                                                              
                62                       6,000,000                                                                              
                61                       5,500,000                                                                              
                60                       5,000,000                                                                              
                59                       4,500,000                                                                              
                58                       4,000,000                                                                              
                57                       3,500,000                                                                              
                56                       3,000,000                                                                              
                55                       2,500,000                                                                              
                54                       2,000,000                                                                              
                53                       1,500,000                                                                              
                52                       1,000,000                                                                              
                51                         500,000                                                                              
                50                                    0"                                                                        
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
        Austerman, Fairclough, Joule, Kelly, Doogan                                                                             
                                                                                                                              
        Numbers Section                                                                                                       
                                                                                                                              
  DEPARTMENT:            Various-as shown in the table below                                                                  
        ADD:                   $17,055.3          UGF       (1004)        Unrestricted                                        
                               general funds                                                                                    
        DELETE:                $15,000.0          UGF       (1004)        Unrestricted                                        
                               general funds (estimate)                                                                         
                                                                                                                                
                                                                   Amount                                                     
                                                                 Added to                                                     
                                AgencyBase                                                                                    
        Department of Administration          22.8                                                                              
        Department of Corrections     2,655.3                                                                                   
        Department   of Education  and  Early Development                  57.2                                                 
        Department of Environmental Conservation          37.8                                                                  
        Department of Fish and Game          77.7                                                                               
        Department of Health and Social Services        600.0                                                                   
        Department   of Labor  and Workforce   Development                 35.3                                                 
        Department of Military and Veterans Affairs        327.3                                                                
        Department of Natural Resources          68.0                                                                           
        Department of Public Safety        273.9                                                                                
        Department   of Transportation  & Public Facilities         11,250.0                                                    
        University of Alaska     1,650.0                                                                                        
        Total Unrestricted General (UGF)   17,055.3                                                                         
                                                                                                                                
                                                                                                                                
        EXPLANATION:          This       amendment         revises        the     amounts                                     
        appropriated         under     the     "fuel     trigger"       provisions        of                                    
        section      21   by   increasing       the    trigger      start    point     from                                     
        $36   to   $51    dollars.      This    change      reduces      the   projected                                        
        annual      appropriations           for     high     fuel     costs      by    $15                                     
        million       annually       at    any    oil     price      above     $51.     The                                     
        reduction        appears       in    budget      reports       as     a   revised                                       
        estimate       of    the     impact      of    section       21.    The     actual                                      
        impact will depend upon fuel prices during FY11.                                                                        
                                                                                                                                
        The   amendment       also     distributes        $15   million      to   various                                       
        agencies       to   offset      the    reduction       in    funding      through                                       
        the   trigger      mechanism.       That    $15    million     is   distributed                                         
        to   agencies      in   the    same    manner     and   amount      as   occurred                                       
        in    FY10     under      the    August      1    trigger       mechanism.        In                                    
        addition,       $2,053,300       is   appropriated        to   the    Department                                        
        of   Corrections       in   order     to   align    available       funding     for                                     
        utilities        with     documented         expenditures.          The     $17.05                                      
        million will be added to agency base budgets.                                                                           
                                                                                                                                
        The   intent      of   the    amendment       is   to   shift     funding      from                                     
        contingency         (trigger)         to     base      in    recognition          of                                    
        sustained       high    oil    prices.      The    amendment       reduces      the                                     
        projected       trigger      appropriations          from     $42    million      to                                    
        $27 million.                                                                                                            
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair      Hawker     explained       that    Amendment       2  would    change     the                                     
fuel     trigger.        The     amendment        would      take     the     first     $15                                     
million      formally      allocated       under     the   fuel     trigger     when    oil                                     
was   $30    per   barrel      and   put    the   amount     into    the    base    budget                                      
of   agencies.       The    amendment       also    would     lower     the    amount     of                                    
the   contingent        appropriation         by  the    same    $15   million.      There                                      
would      be    a   net     zero     impact;       however,       analysis       of    the                                     
effectiveness           of    the     trigger       has     identified         that     the                                     
Department        of   Corrections        needed      an   additional        $2   million                                       
to   make    the    fuel    trigger      work.    He   noted     disagreement        about                                      
the issue.                                                                                                                      
                                                                                                                                
Co-Chair       Stoltze       WITHDREW       his    OBJECTION.        There      being     NO                                    
further OBJECTION, Amendment 2 was ADOPTED.                                                                                     
                                                                                                                                
3:22:15 PM                                                                                                                    
                                                                                                                                
Amendment 3                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 3:                                                                                     
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
        Austerman, Fairclough, Joule, Kelly, Doogan                                                                             
                                                                                                                              
        Transfer         In      $2,230.8         to     Alaska        Court        System                                    
        Therapeutic Courts                                                                                                    
                                                                                                                              
        DEPARTMENT:            Alaska Court System                                                                            
        APPROPRIATION: Therapeutic Courts (new appropriation)                                                               
        ALLOCATION:            Therapeutic Courts                                                                             
        TRANSFER IN:           General Funds 1004                     $1,356.3                                                
       GF/MH 1037                             $   357.2                                                                         
                               Alcohol and Other                                                                                
                               Drug Abuse Treatment                                                                             
       & Prevention Fund 1180                 $   517.3                                                                         
        ADD:    Intent:      It   is   the   intent     of   the    legislature        that                                   
        contracts         to      purchase        services         associated          with                                     
        therapeutic        courts      be    based      loosely      on    the    amounts                                       
        transferred            from        other        agencies           into        this                                     
        appropriation.          Contractual         agreements        should       be   for                                     
        amounts      determined        by   the    Court     System     to    be   in   the                                     
        best    interest       of    operating       therapeutic         courts     in    an                                    
        efficient and effective manner.                                                                                       
                                                                                                                              
        EXPLANATION:          This      amendment         will      consolidate         all                                   
        funding         for       Therapeutic           Courts        into        a     new                                     
        appropriation         in   the    Alaska     Court    System.        Funds     will                                     
        be   transferred        from     the    Departments        of   Law    ($364.7),                                        
        Health      and     Social      Services        ($1,663.7),         Corrections                                         
        ($252.2),       and    Administration          ($355.0)       and    the    Alaska                                      
        Court     System/Therapeutic            Court's      component        ($2,018.3)                                        
        in      an       effort         to      enhance         coordination            and                                     
     accountability for the Therapeutic Courts programs.                                                                        
                                                                                                                                
        Transfer Out  $364.7                                                                                                  
                                                                                                                                
        DEPARTMENT:            Department of Law                                                                              
        APPROPRIATION: Criminal Division                                                                                      
                                 rd                                                                                             
        ALLOCATION:            3 Judicial District/Anchorage                                                                  
        TRANSFER OUT:  $300.3 General Funds 1004                                                                              
        ADD:                   $300.3 I/A Receipts (1007)                                                                     
                                 th                                                                                             
        ALLOCATION:            4 Judicial District                                                                            
        TRANSFER OUT:  $64.4 GF 1004                                                                                          
        ADD:                   $64.4 I/A Receipts (1007)                                                                      
                                                                                                                                
        Transfer Out  $1,258.9                                                                                                
                                                                                                                                
        DEPARTMENT:            Department of Health & Social Services                                                         
        APPROPRIATION: Behavioral Health                                                                                      
        ALLOCATION:            Behavioral Health Grants                                                                       
        TRANSFER OUT: General Funds 1004                              $  272.0                                                
                               GF/MH 1037                             $  150.0                                                  
                               Alcohol and Other                                                                                
                               Drug Abuse Treatment                                                                             
                               & Prevention Fund 1180                 $  450.0                                                  
        ADD:                   $872.0 I/A Receipts (1007)                                                                     
  ALLOCATION:            Alcohol & Substance Abuse Programs                                                                   
        TRANSFER OUT: General Funds 1004                              $ 319.6                                                 
                               Alcohol and Other                                                                                
                               Drug Abuse Treatment                                                                             
                               & Prevention Fund 1180                 $   67.3                                                  
        ADD:                   $254.7 I/A Receipts (1007)                                                                     
                                                                                                                                
        Transfer Out  $252.2                                                                                                  
                                                                                                                                
        DEPARTMENT:            Department of Corrections                                                                      
        APPROPRIATION: Inmate Health Care                                                                                     
        ALLOCATION:            Behavioral Health Care                                                                         
        TRANSFER OUT:  $207.2 GF/MH 1037                                                                                      
        ADD:                    $207.2 I/A Receipts (1007)                                                                    
        APPROPRIATION: Population Management                                                                                  
        ALLOCATION:            Statewide Probation and Parole                                                                 
        TRANSFER OUT:  $45.0 General Funds 1004                                                                               
        ADD:                   $45.0. I/A Receipts (1007)                                                                     
                                                                                                                              
        Transfer Out  $355.0                                                                                                  
                                                                                                                                
        DEPARTMENT:            Department of Administration                                                                   
        APPROPRIATION: Legal & Advocacy Services                                                                              
        ALLOCATION:            Public Defender Agency                                                                         
        TRANSFER OUT:  $290.0 General Funds 1004                                                                              
        ADD:                   $290.0 I/A Receipts (1007)                                                                     
  ALLOCATION:            Therapeutic Courts Support Services                                                                  
        TRANSFER OUT:  $65.0 General Funds (1004)                                                                             
        ADD:                   $65.0 I/A Receipts (1007)                                                                      
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair      Hawker      explained       that    Amendment       3  would     implement                                        
the    establishment         of   therapeutic        courts     as   an   Alaska     Court                                      
System      appropriation.           Money      that     has    been     used     for     or                                    
appropriated         for     intended       use    by    the    therapeutic         courts                                      
would     be   taken     out    of   the    Departments        of    Law,    Health     and                                     
Social     Services,       Corrections,         and    Administration;          money     in                                    
the    agencies       would     be   replaced       with     receipt      authority       so                                    
that      the      court       system        could       buy      services        through                                       
reimbursable         services       agreements        (RSAs).      The    court     system                                      
would      be    directed       as    much     as    possible        to    procure      the                                     
services        from     the     agencies        from     which      the     money      was                                     
secured.       He   underlined        the    legislature's          commitment        to    a                                   
more centralized management of the therapeutic courts.                                                                          
                                                                                                                                
Co-Chair       Stoltze       WITHDREW       his    OBJECTION.        There      being     NO                                    
further OBJECTION, Amendment 3 was ADOPTED.                                                                                     
                                                                                                                                
3:24:20 PM                                                                                                                    
                                                                                                                                
Amendment 4                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 4:                                                                                     
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
        Austerman, Fairclough, Joule, Kelly, Doogan                                                                             
                                                                                                                              
        DEPARTMENT:            Revenue                                                                                        
        APPROPRIATION: Alaska Permanent Fund Corporation                                                                      
        ALLOCATION:            APFC Custody and Management Fees                                                               
                                                                                                                                
        Section 1, Page 38, Line 3:                                                                                             
        Convert        the      APFC       Custody        and      Management          Fees                                     
        allocation into a separate appropriation.                                                                               
                                                                                                                                
        EXPLANATION:           This     amendment        will      restrict       use     of                                  
        APFC      Custody       and     Management         Fees      to     their      sole                                     
        intended       purpose       by    placing       them     in    a   stand-alone                                         
        appropriation.                                                                                                          
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair       Hawker     detailed       that     Amendment       4   would     create      a                                   
separate       appropriation          within      the     Department        of    Revenue                                       
budget      for    the    Alaska     Permanent        Fund    that     would     separate                                       
management        and   custodial       fees    from     the   internal       operations                                        
of   the    fund     corporation.         He   emphasized        that    the    item    had                                     
nothing      to    do   with     the    dividend,       but    would      restrict      the                                     
management funds.                                                                                                               
                                                                                                                                
Co-Chair       Stoltze       WITHDREW       his    OBJECTION.        There      being     NO                                    
further OBJECTION, Amendment 4 was ADOPTED.                                                                                     
                                                                                                                                
3:25:38 PM                                                                                                                    
                                                                                                                                
Amendment 5                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 5:                                                                                     
                                                                                                                              
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
        Austerman, Fairclough, Joule, Kelly                                                                                     
                                                                                                                              
        DEPARTMENT:            University of Alaska                                                                         
        APPROPRIATION: University of Alaska                                                                                   
        DELETE:   INTENT                                                                                                      
        It    is    the     intent      of     the    legislature         that      future                                      
        requests      by   the    University       of    Alaska     for   Unrestricted                                          
        General      Funds    move    toward     a   long-term       goal    of   125%    of                                    
        Actual      University         Receipts        for     the     most      recently                                       
        closed fiscal year.                                                                                                     
        ADD:           INTENT                                                                                                 
        It     is    the      intent       of    the      legislature          that     the                                     
        University         of     Alaska's        FY12       budget       request       for                                     
        unrestricted         general      funds     not    exceed     129    percent      of                                    
        actual     University       Receipts       for   FY10.     It   is   the    intent                                      
        of    the      legislature         that      future       requests        by    the                                     
        University        of    Alaska     for     unrestricted         general      funds                                      
        move    toward     a  long-term       goal    of   125    percent      of   actual                                      
        University         Receipts       for     the     most      recently        closed                                      
        fiscal year.                                                                                                            
                                                                                                                              
        EXPLANATION:           The    addition       of   a   specific       target     for                                   
        FY12    is   intended      to   clarify     and    limit    the   expectations                                          
        of both the University and the legislature.                                                                             
                                                                                                                                
        The    unrestricted        general       fund    (UGF)     increment       in   the                                     
        CS   was   based    on   the    ratio    of   UGF   to   designated       general                                       
        funds     (DGF).     DGF   includes       TVEP    funding      (state     funding                                       
        for   technical       and   vocational        education)       in   addition      to                                    
        University         Receipts.        Inclusion        of     TVEP     in     future                                      
        funding      ratios       would     result       in    the    state      matching                                       
        state     funds      appropriated         to    the    University.         If   the                                     
        match     ratio     used    to   determine        the    FY11    appropriation                                          
        had   used    a   ratio    of   UGF    to   University       Receipts      of   129                                     
        percent,        the     University        would       have     received        $1.5                                     
        million     less    in   unrestricted         general     funds.     Applying       a                                   
        129   percent      ratio     in   FY12    assures      movement      toward     the                                     
        long-term       goal     that     UGF     not    exceed      125    percent       of                                    
        University Receipts.                                                                                                    
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair       Hawker     reported       that    the    university's         budget      had                                    
been    considered       by   the   committee       as   a  whole,     resulting       in   a                                   
formula         for       matching         university-generated                receipts.                                        
Amendment       5    would     expand      intent     language       related       to   the                                     
ratio     not     exceeding        the    current      ratio      and    general       fund                                     
receipts      moving      towards     125    percent      of   actual     receipts      for                                     
the     previously        closed       fiscal      year.      He    noted      that     the                                     
current       ratio     was    127     percent;       the    amendment        shows     129                                     
percent      and   incorporates         a  revision       of   the   calculations         of                                    
the     university        receipts.        The    calculation         had     previously                                        
inappropriately          included      Technical       and    Vocational       Education                                        
Program      (TVEP)     funding,      which     is   state     money    that    does    not                                     
belong in the matching formula.                                                                                                 
                                                                                                                                
Representative            Gara      disagreed         with      the     approach.         He                                    
believed      the    129   percent      ratio    was   substantially         lower     than                                     
the    135   percent      ratio     that    has    existed      over    the    past    five                                     
years     for    the    university.        He   understood        the    legislature's                                          
caution        regarding        agency       growth,        but      he    viewed       the                                     
university        as    a   major     creator      of    jobs    in    the    state.      He                                    
would have preferred the historical ratio formula.                                                                              
                                                                                                                                
Co-Chair Stoltze MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
3:28:56 PM                                                                                                                    
                                                                                                                                
A  roll    call    vote    was   taken     on   the   motion     to   adopt    Amendment                                        
5.                                                                                                                              
                                                                                                                                
IN   FAVOR:     Fairclough,           Joule,        Kelly,        Salmon,         Thomas,                                       
Stoltze, Hawker                                                                                                                 
OPPOSED: Doogan, Foster, Gara                                                                                                   
Representative Austerman was absent from the vote.                                                                              
                                                                                                                                
The MOTION PASSED (7/3). Amendment 5 was ADOPTED.                                                                               
                                                                                                                                
Co-Chair      Hawker      noted    that    any    committee       member     who    wished                                      
to could add their name as a sponsor to any amendment.                                                                          
                                                                                                                                
3:31:30 PM                                                                                                                    
                                                                                                                                
Amendment 6                                                                                                                   
                                                                                                                                
Co-Chair      Hawker      MOVED    to    ADOPT    Amendment       6   (26-GH2823\M.9,                                           
Bailey, 3/8/10):                                                                                                                
                                                                                                                                
        Page 79, line 22, through Page 80, line 2:                                                                              
                Delete all material and insert:                                                                                 
        "*   Sec.    33.   CONSTITUTIONAL         BUDGET      RESERVE     FUND.     (a)   An                                    
        amount      equal     to    the    investment        earnings        that    would                                      
        otherwise       have    been    earned     by   the    budget     reserve      fund                                     
        (art.      IX,    sec.      17,    Constitution          of    the     State      of                                    
        Alaska)     on   money     borrowed      from    the   budget     reserve      fund                                     
        to   meet     general      fund     expenditures         during      the    fiscal                                      
        year    ending      June    30,    2011,      is   appropriated         from    the                                     
        general     fund    to   the   budget      reserve     fund    for   the    fiscal                                      
        year     ending       June      30,     2011,      for      the     purpose       of                                    
        compensating           the     budget        reserve        fund      for      lost                                     
        earnings."                                                                                                              
                                                                                                                                
        Page 80, line 5, following "fund":                                                                                      
                Insert "(art. IX, sec. 17, Constitution of the                                                                  
                State of Alaska)"                                                                                               
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair       Hawker      explained       that     Amendment       6   would     clarify                                       
language        in      statute        so     that      when      money       from      the                                     
Constitutional          Budget     Reserve      (CBR)    is   used     to   meet    short-                                      
term    cash-flow       requirements         of   the    general      fund,     the    loan                                     
would    be   paid    back    with    interest      in   the   amount     that    the   CBR                                     
would have made.                                                                                                                
                                                                                                                                
Co-Chair       Stoltze       WITHDREW       his    OBJECTION.        There      being     NO                                    
further OBJECTION, Amendment 6 was ADOPTED.                                                                                     
                                                                                                                                
3:32:44 PM                                                                                                                    
                                                                                                                                
Amendment 7                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 7:                                                                                     
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
      Austerman, Fairclough, Joule, Kelly, Doogan, Gara                                                                         
                                                                                                                              
        DEPARTMENT:                    Health and Social Services                                                             
        APPROPRIATION:                 Behavioral Health                                                                      
        ALLOCATION:                    AK Fetal Alcohol Syndrome Program                                                      
        ADD: Intent language at the allocation level                                                                        
        It   is    the    intent      of    the    legislature         that     AK   Fetal                                      
        Alcohol      Syndrome       Programs       located       in   Juneau,       Kenai,                                      
        Sitka, and Bethel be expanded.                                                                                        
                                                                                                                                
        EXPLANATION:           This       amendment          specifies         that       an                                  
        increment       approved      by   the   HSS   subcommittee         is   intended                                       
        to   expand     services      in   the    four    named     communities.        The                                     
        transaction         title     will     be    modified        to    reflect      the                                     
        subcommittee's intent.                                                                                                  
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair       Hawker      explained       that     Amendment       7   reflected       the                                     
intent     of   the   subcommittee         and   the   Department        of  Health     and                                     
Social     Services       in   adopting      an   increment       for    fetal    alcohol                                       
syndrome      programs      specifically         in   Juneau,     Kenai,     Sitka,     and                                     
Bethel.        The     language        had     not      been      included        in    the                                     
subcommittee budget.                                                                                                            
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, Amendment 7 was ADOPTED.                                                                                     
                                                                                                                                
3:33:45 PM                                                                                                                    
                                                                                                                                
Amendment 8                                                                                                                   
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 8:                                                                                     
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
        Austerman, Fairclough, Joule, Kelly, Doogan                                                                             
                                                                                                                              
        STATEWIDE 10% GENERAL FUND TRAVEL REDUCTION                                                                           
                                                  10%      Amendment                                                          
                   DEPARTMENTReductionReduction                                                                               
        Administration       ( 112.0)           (112.0)                                                                         
        Commerce,   Community   & Econ Dev           ( 135.2)           (135.2)                                                 
        Corrections       ( 197.4)           (197.4)                                                                            
        Education & Early Dev         ( 68.4)             (68.4)                                                                
        Environmental Conservation       ( 115.9)           (115.9)                                                             
        Fish and Game       ( 191.5)           (191.5)                                                                          
        Governor       ( 107.9)           (107.9)                                                                               
        Health & Social Services       ( 311.0)           (311.0)                                                               
        Labor & Workforce Dev         ( 66.4)             (66.4)                                                                
        Law       ( 118.4)           (118.4)                                                                                    
        Military & Veterans Affairs         ( 17.2)             (17.2)                                                          
        Natural Resources       ( 192.2)           (192.2)                                                                      
        Public Safety       ( 509.5)                -                                                                           
        Revenue         ( 48.1)             (48.1)                                                                              
        Transportation       ( 422.9)           (422.9)                                                                         
        University of Alaska    ( 1,496.8)                -                                                                     
        Alaska Court System       ( 171.9)           (171.9)                                                                    
        Legislature       ( 387.7)           (387.7)                                                                            
                                      TOTAL    ( 4,670.4)        (2,664.1)                                                  
                                                                                                                                
                                                                                                                                
        Explanation:             This         amendment           reduces           travel                                    
        authorization         in   allocations        with     budgeted      travel     and                                     
        with     general        funds.      Departments          should       prioritize                                        
        travel     and    use    existing       technology       as    appropriate        to                                    
        facilitate       meetings.       The    University        and   Public      Safety                                      
        are    excluded      from     the    reductions.        In   addition,       three                                      
        fund    codes     (PFD    Criminal      Funds,      Vehicle     Rental      Taxes,                                      
        and    VoTech     Ed)    were    excluded       because      the    legislature                                         
        fully     appropriates          these     funds.       Because      the     budget                                      
        does     not    identify        line     items      by    fund     source,      the                                     
        following       method     was    used    to    determine       the    amount     of                                    
        travel that is reduced in each allocation.                                                                              
                                                                                                                                
         Ratio of each general fund code                                                                                        
                                              10% of the FY09                                                                   
(UGF and DGF) in the House CS                                 Amount of the                                                     
                                                 actual travel                                                                  
                                         X=                                                                                   
to the total FY11 allocation's                             travel reduction                                                   
                                                expenditures                                                                    
                     funding                                                                                                    
                                                                                                                                
                                                                                                                                
        Please see the Transaction Detail report for the                                                                        
        amounts eliminated from each allocation.                                                                                
                                                                                                                                
        Note:      Combining         this      amendment        with      other      House                                      
        Finance       Committee        Actions       may     cause     negative        line                                     
        items     or   fund    sources.      Should      this    occur,     Legislative                                         
        Finance     will    make    technical       adjustments        to   the   amounts                                       
        in the travel amendment to correct these errors.                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair      Hawker     detailed      that    Amendment       8  was    the   result     of                                    
debate      about      cutting      costs.      The    2009     travel      budget      for                                     
state      agencies        was     considered         and     Legislative         Finance                                       
calculated       the    number     required       to   reduce     the    travel     budget                                      
by   ten    percent.      Travel     is   currently       a   line-item       adjustment                                        
that     does    not    require      permission        from     the    legislature        to                                    
move    around.      He  viewed     the    amendment      as   a   general     statement                                        
of    intent      for     agencies       to    prioritize         and    operate       more                                     
efficiently.           He     noted      that       the     university          and     the                                     
Department         of     Public       Safety       were      exempted         from      the                                    
reduction.                                                                                                                      
                                                                                                                                
Co-Chair       Hawker      emphasized         that     the     reduction       would      be                                    
calculated        only     on   the     general      fund     component       of    agency                                      
budgets,      not    on   travel      funded     by   federal      or   other     sourced                                       
funds. The proposed total reduction would be $2.6 million.                                                                      
                                                                                                                                
3:37:31 PM                                                                                                                    
                                                                                                                                
Co-Chair      Stoltze      noted    that    the    legislature's         travel     budget                                      
was     cut     as     well.      Co-Chair        Hawker       detailed        that     the                                     
legislature's travel budget would be reduced by $387,000.                                                                       
                                                                                                                                
Representative           Gara     thought      the     approach       was     fair,     but                                     
believed       that    employees        from    the    Alaska      Court     System     and                                     
the Department of Law often traveled because they had to.                                                                       
                                                                                                                                
Co-Chair Hawker agreed that the process would spark debate.                                                                     
                                                                                                                                
Co-Chair       Stoltze       WITHDREW       his    OBJECTION.        There      being     NO                                    
further OBJECTION, Amendment 8 was ADOPTED.                                                                                     
                                                                                                                                
3:39:07 PM                                                                                                                    
                                                                                                                                
Amendment 9                                                                                                                   
                                                                                                                                
Co-Chair      Hawker     pointed      out   that    Amendment       9  was   related      to                                    
Medicaid appropriations. He MOVED to ADOPT Amendment 9:                                                                         
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
      Austerman, Fairclough, Joule, Kelly, Doogan, Gara                                                                         
                                                                                                                              
        DEPARTMENT:  Health and Social Services                                                                               
        APPROPRIATION: Medicaid Services (new appropriation)                                                                
        ADD:       Transfer       the    following       allocations         from    their                                    
        existing        locations        to    the     newly      created        Medicaid                                       
        Services appropriation:                                                                                                 
                Behavioral Health Medicaid Services                                                                             
                Children's Medicaid Services                                                                                    
                Adult Preventative Dental Medicaid Services                                                                     
                Health Care Medicaid Services                                                                                   
          Senior and Disabilities Medicaid Services                                                                             
                                                                                                                                
        ADD: Intent language at the appropriation level                                                                       
        It     is    the      intent       of    the      legislature          that     the                                     
        Department       of   Health      and   Social      Services      identify      and                                     
        investigate        alternatives         that     could     improve       internal                                       
        administrative         management        and   accounting        controls      over                                     
        the     Medicaid         program,        including         determining          the                                     
        viability         of      outsourcing          those       activities.          The                                     
        Department       should      be   prepared      to   present      its    findings                                       
        to the legislature during the 2011 session.                                                                             
                                                                                                                                
        EXPLANATION:        Consolidate           all      Medicaid         allocations                                       
        within     the   Department       of   Health     and    Social     Services      to                                    
      the newly created Medicaid Services appropriation.                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair      Hawker      explained       that    the   amendment       would     put   all                                     
Medicaid        services        into     a    single       appropriation          in     the                                    
Department         of     Health       and     Social       Services        budget.       He                                    
provided         historical          background.           The      department          had                                     
requested       the     change.      The    2003     legislature         had    made    the                                     
decision       to    separate       the    Medicaid       components         into    their                                      
functional       categories        (including       Behavioral        Health     Medicaid                                       
Services,       Children's        Medicaid      Services,        Adult    Preventative                                          
Dental      Medicaid       Services,       Health      Care     Medicaid       Services,                                        
and   Senior     and    Disabilities        Medicaid      Services).        He   spoke    to                                    
the       evolving         process         of       centralization             and      de-                                     
centralization.          He    noted    problems       with    revenue      collections                                         
at    the    department;         he    believed       the    single      appropriation                                          
would aid the agency in establishing needed controls.                                                                           
                                                                                                                                
Co-Chair       Stoltze       WITHDREW       his    OBJECTION.        There      being     NO                                    
further OBJECTION, Amendment 9 was ADOPTED.                                                                                     
                                                                                                                                
3:41:49 PM                                                                                                                    
                                                                                                                                
Amendment 10                                                                                                                  
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 10:                                                                                    
                                                                                                                                
        OFFERED BY: Representatives Hawker, Stoltze, Thomas,                                                                  
      Austerman, Fairclough, Joule, Kelly, Doogan, Gara                                                                         
                                                                                                                                
        DEPARTMENT:            Health and Social Services                                                                     
        APPROPRIATION: Medicaid Services (new appropriation)                                                                  
                                                                                                                              
      ALLOCATION:    Behavioral Health Medicaid Services                                                                      
        DELETE:                $1,116.2 GF/MH (1037)                                                                          
        DELETE:                $1,628.1 Federal Receipts (1002)                                                               
        DELETE:                $297.1                 Stimulus09 (1212)                                                       
                                                                                                                                
        ALLOCATION:            Health Care Medicaid Services                                                                  
        ADD:                   $75.4                  GF/Match (1003)                                                         
        ADD:                   $146.5                 Federal Receipts (1002)                                                 
        ADD:                   $17.5                  Stimulus09 (1212)                                                       
                                                                                                                                
        ALLOCATION:            Senior and Disabilities Medicaid Serv.                                                         
        DELETE:                $1,616.7 GF/Match (1003)                                                                       
        DELETE:                $2,201.5 Federal Receipts (1002)                                                               
        DELETE:                $447.5                 Stimulus09 (1212)                                                       
                                                                                                                                
        EXPLANATION:            Funding          adjustments            to       Medicaid                                     
        allocations          split        the      differences           between        the                                     
        Governor's       Amended      Medicaid      request      and   projections        of                                    
        a  legislative        consultant.        The   result     is   a  reduction       of                                    
        2,657.5 in general funds.                                                                                               
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair        Hawker      explained         that     Amendment         10    was     also                                     
related      to   Medicaid      and    would    split     the    difference       between                                       
the    agency's       originally       requested       budget      for    the    Medicaid                                       
components       and    the   analysis      that    the    consultant       Janet    Clark                                      
had    presented.         He   referred        to   debate      in    committee.        The                                     
department         would     like      more     money      but     acknowledged         the                                     
problem      of  excess      authority      related      to   federal     funds,     which                                      
had    contributed        to    an   environment         of   less     control.      Since                                      
Medicaid      is   a   formula      program,      the   department        will    have    to                                    
ask    for    more     money     if   it    falls     short.      The    intent     is    to                                    
reduce     the   amount     of   general      funds    for    the   Medicaid      program                                       
in   its   totality       while    allowing       the   agency     to   move    money     to                                    
functional        areas;     $2.6     million      in    general      funds     would     be                                    
removed.                                                                                                                        
                                                                                                                                
Representative          Gara    spoke     in   support      of    the   amendment.        He                                    
clarified        that     the    amendment        would     not     cut    services       to                                    
qualified           people.         The       amendment           represented           the                                     
legislature's           best     estimate        of    how     many      people      would                                      
request      services      before     the   end   of   the    next    fiscal     year.    He                                    
thought the approach was fair.                                                                                                  
                                                                                                                                
Co-Chair       Stoltze       WITHDREW       his    OBJECTION.        There      being     NO                                    
further OBJECTION, Amendment 10 was ADOPTED.                                                                                    
                                                                                                                                
3:45:47 PM                                                                                                                    
                                                                                                                                
Amendment 11                                                                                                                  
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 11:                                                                                    
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
        Austerman, Fairclough, Joule, Kelly, Doogan                                                                           
                                                                                                                                
        DEPARTMENT:            Health and Social Services                                                                     
        APPROPRIATION: Health Care Services                                                                                   
        ALLOCATION:            Medicaid Services                                                                              
        DELETE:                $4,900.0 General Fund (1004)                                                                   
                                                                                                                                
        EXPLANATION:         Prior      to    the    Medicare        Part     D   program                                     
        implementation,            the     State       paid      prescriptions          for                                     
        Medicaid       dual-eligibles          (enrollees         in    both     Medicaid                                       
        and        Medicare)           through          Medicaid.           With        the                                     
        implementation         of   Medicare      Part    D,   the   state     no   longer                                      
        pays    for    dual     eligibles'       prescriptions          but   does     help                                     
        finance        them       through        payments         to     the      federal                                       
        government.         This      is    commonly        referred        to    as    the                                     
        "Clawback."          Payments      are    based     on   a   per    capita     cost                                     
        calculated        by   the     federal      government        and    made     on    a                                   
        monthly      basis.      The    state's      portion       is   determined        by                                    
        the Title XIX FMAP rate.                                                                                              
                                                                                                                                
        In    October      2008,      ARRA     provided       an    increase       in   the                                     
        State's      FMAP     rate;     it   was     initially       determined        that                                     
        this    higher     FMAP    rate    would     not   apply     to   the    Medicare                                       
        Part     D   Clawback        payments.           On    Feb    18,     2010,     HHS                                     
        announced      a   change     to   this    decision      and   will    now   apply                                      
        the    ARRA    FMAPs     to   the    Clawback      payments.       This     change                                      
        will     be    retroactive         to     Oct    1,     2008.     The     State's                                       
        overpayments        of   past    monthly      Clawback      will    be   refunded                                       
        in   the    form     of   a   credit      to    offset     future      payments.                                        
        Alaska's      credit     from    Oct    1,   2008    through      Dec   31,    2009                                     
        is   approximately          $5.1     million.         In   addition,        future                                      
        payments       will    be   calculated        using     the    ARRA     FMAP    and                                     
        there      will      be    savings        from      what     was      originally                                        
        budgeted       for    Clawback       payments.       The    savings      will     be                                    
        approximately         $390,000       per    month     for    the   remaining        6                                   
        months     of   SFY   2010    (Jan    1   -  June    30,    2010).     This    is   a                                   
        total     of   $7.5     million      in    savings      for    SFY    2010     from                                     
        original calculations.                                                                                                  
                                                                                                                                
        These     savings      will    continue       through      Dec   31,    2010    and                                     
        are    anticipated        to    be   further       extended       through      June                                     
        30,    2011    at    approx.      $414,000       per    month     for    a   total                                      
        SFY2011       savings       for    $4.9      million       over     12    months.                                       
        Savings      for   SFY2010      are    higher     than    those     for   SFY2011                                       
        due    to   the    credit      from     past    payments;        in   effect      21                                    
        months of savings are being realized in SFY2010.                                                                        
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair       Hawker     explained       that     Amendment       11   (also     related                                       
to   Medicaid)       reflected       a  change      to   federal     regulation        that                                     
occurred        after     the     governor's         budget      was     prepared.        An                                    
adjustment        was     made     to   amounts       reimbursed        to    the    state                                      
under     the    "Part     D"   Medicaid       prescription         drug    "Clawback."                                         
The     state       would       be    receiving         an     additional         federal                                       
reimbursement,          saving     the    state    from     spending      $4.9    million                                       
in   general     funds.     He   reported      that    the    Office     of   Management                                        
and Budget (OMB) had prepared the amendment.                                                                                    
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION.                                                                                        
                                                                                                                                
3:47:27 PM                             AT EASE                                                                                
3:48:21 PM                             RECONVENED                                                                             
                                                                                                                                
There being NO further OBJECTION, Amendment 11 was ADOPTED.                                                                     
                                                                                                                                
Amendment 12                                                                                                                  
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 12.                                                                                    
                                                                                                                                
        OFFERED      BY:    Representatives           Hawker,      Stoltze,       Thomas,                                     
      Austerman, Fairclough, Joule, Kelly, Doogan, Gara                                                                         
                                                                                                                                
        DEPARTMENT:            Health and Social Services                                                                     
                                                                                                                              
        APPROPRIATION: Office of Children's Services                                                                          
        ALLOCATION:    Children's Services Management                                                                         
        ADD:                   $165.0 General Funds (1004)                                                                    
        ALLOCATION:            Front Line Social Workers                                                                      
        ADD:                   $955.3 General Funds (1004)                                                                    
                                                                                                                                
        APPROPRIATION: Public Health                                                                                          
        ALLOCATION:            Women, Children and Family Health                                                              
        ADD:                   $347.8 General Funds (1004)                                                                    
                                                                                                                                
        APPROPRIATION: Departmental Support Services                                                                          
        ALLOCATION:            Administrative Support Services                                                                
        ADD:                   $700.0 General Funds (1004)                                                                    
        ALLOCATION:            Information Technology Services                                                                
        ADD:                   $487.5 General Funds (1004)                                                                    
                                                                                                                                
        EXPLANATION:          Replace        unrealizable           interagency         and                                   
        federal      receipts       due    to   the    loss     of   Medicaid       School                                      
        Based    Claims     funding.       Reductions       totaling      $1.5    million                                       
        in    interagency        receipts       were     accepted       in    the    House                                      
        Finance       Subcommittee           for     the     Children's          Services                                       
        Management,         Front      Line     Social       Workers,       and     Women,                                      
        Children      and   Health     allocations.         An   increase      of   $737.5                                      
        of   general       funds     was    accepted       in    the    House     Finance                                       
        Subcommittee         action       for     the    Information          Technology                                        
        Services       allocation.        These      changes      total      2,655.6      of                                    
        general funds.                                                                                                          
                                                                                                                                
Co-Chair Stoltze OBJECTED.                                                                                                      
                                                                                                                                
Co-Chair       Hawker     detailed       that    Amendment       12    represented        an                                    
item      referred       by     the     subcommittee          for     full     committee                                        
consideration           related       to    school-based          Medicaid        program                                       
problems.        Some    of    the    funds      were    not     available       and    the                                     
Department        of    Education        and    Early     Development         asked     for                                     
general       funds.       He    listed       services        affected,        including                                        
children's         services,        front-line         social       workers,        public                                      
health,        and      departmental           administrative            and      support                                       
services.       He   stated     that   he   did    not   think     individual       agency                                      
components        should       be    punished       and     that     the    funds      were                                     
needed.                                                                                                                         
                                                                                                                                
Co-Chair Stoltze WITHDREW his OBJECTION. There being NO                                                                         
further OBJECTION, Amendment 12 was ADOPTED.                                                                                    
                                                                                                                                
3:51:26 PM                                                                                                                    
                                                                                                                                
Amendment 13                                                                                                                  
                                                                                                                                
Co-Chair Hawker MOVED to ADOPT Amendment 13:                                                                                    
                                                                                                                                
        OFFERED BY: Representatives Hawker, Stoltze, Thomas,                                                                  
        Austerman, Fairclough, Joule, Kelly, Doogan                                                                           
                                                                                                                                
        DEPARTMENT:            Health and Social Services                                                                     
        APPROPRIATION:Behavioral Health and Children' Services                                                                
        ALLOCATION:   (various, see table below)                                                                              
        ADD:               $412.5 General Fund/Mental Health (1037)                                                           
                                                                                                                                
Amount Fund Fund Title                        Appropriation Allocation                                                        

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