Legislature(2009 - 2010)SENATE FINANCE 532
03/24/2009 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB83 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 81 | TELECONFERENCED | |
| + | HB 83 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 81(FIN) am(brf sup maj fld)
"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 reappropriations; and providing
for an effective date."
CS FOR HOUSE BILL NO. 83(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
9:10:25 AM
Senator Olson presented the Senate Committee Recommendation
for Department of Administration (DDOA).
TIM BENINTENDI, STAFF, SENATOR OLSON, reviewed the
Subcommittee recommendations.
DEPARTMENT OF ADMINISTRATION
FUND SOURCE:
FY09 Mgt Gov Amd+ Sen Sub
Difference
Plan Rev SenSub to
GovAm+
GENERAL FUNDS: 73,634.6 74,165.0 73,589.4
(575.6)
FEDERAL FUNDS: 2,776.3 2,782.4 2,878.1
95.7
OTHER FUNDS: 205,890.4 216,295.0 216,789.9
494.9
TOTAL FUNDS: 282,301.3 293,242.4
293,257.4 15.0
PERSONNEL:
We reviewed the authorized position count. The
Department has increased 22 PFT positions since FY09CC
through position adjustments, reclassifications from
PPT to PFT, and the addition of positions due to
legislation. The Subcommittee recommends that the
department search to eliminate five PFT positions to
reduce the overall authorized position count.
FY09 Gov Amd+ Sen Sub CC
PFT 1,046 1,068
1,063
PPT 23 20
20
TEMP 32 33
33
TOTAL: 1,101 1,121 1,116
OTHER SUBCOMMITTEE ACTION:
The Subcommittee approves an increment of $250.0 GF
for the Alaska Public
Broadcasting Commission / Radio, for station operating
grants.
The Subcommittee approves a funding level of $130.0
GF, which includes the addition of $65.0 GF to replace
expiring federal funds for Partners For Progress,
a non-profit entity which supports Therapeutic Courts.
9:13:06 AM
The Subcommittee approves a fund switch in Centralized
Administrative Services / Finance to replace $220.0 GF
with Capital Improvement Project receipts.
The Subcommittee approves a GF increment of $140.0 in
Centralized Administrative Services / Finance to
support the Alaska Data Enterprise Reporting (ALDER)
data warehouse ($100.0), and for vacancy factor
reductions ($40.0).
The Subcommittee denies a request for an increment of
$300.0 GF to pay operations and maintenance cost
increases for the Alaska Telecommunications System
(SATS).
9:13:58 AM
Regarding a request for salary and health benefit
increases within Centralized Administrative Services /
Subcommittee approved a request for two fund source
changes to GF to avoid an increase in chargeback rates
paid by agencies - for $472.2 and $415.9 respectively.
Furthermore, in order to provide cost recovery of non-
general funds, the Subcommittee agrees to authorize
replacement of $66.4 GF with a variety of non-general
fund sources for Centralized Administrative Services /
Personnel, and would replace another $97.2 GF with a
variety of non-general fund sources for Enterprise
Technology Services. Wordage is also included to
allow distribution of these funds to user agencies in
order to pay increased service costs.
9:15:23 AM
The Subcommittee reviewed the status of the Alaska
Land Mobile Radio system (ALMR), and recognized
improved managerial control of the program since the
issuance in 2006, of Legislative Audit #09-30021-06.
Of significance is the completion of the report
entitled, "Total Cost Of Ownership Study." The
Subcommittee recommends that the Department take
action to ensure that participating municipalities
begin to pay their share of operations and maintenance
costs.
The Subcommittee reviewed a request for a lapse date
extension by the AOGCC for Reservoir Depletion
Studies. The carry forward is estimated to be
$1,450.6. No action was taken by the Subcommittee in
anticipation of a policy discussion by the full Senate
Finance Committee when it considers supplemental
spending legislation.
9:17:49 AM
Senator Olson
GOVERNOR'S AMENDMENTS:
The Subcommittee approves the governor-proposed
decrement of -$7.5 GF in Centralized Administrative
Services / Personnel for the State officers'
Compensation Commission.
The Subcommittee approves the governor-proposed
increment of $1,000.0 GF in the Legal and Advocacy
Services / Public Defender Agency for projected
caseload increases.
Co-Chair Stedman MOVED to ADOPT FY10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Administration as presented with corresponding
legislative finance reports. There being NO OBJECTION, it
was so ordered.
9:18:04 AM
DENISE LICCIOLI, STAFF, SENATOR DONALD OLSON, presented the
Senate Subcommittee Committee Recommendation for the
Department of Health and Social Services (DHSS).
HEALTH & SOCIAL SERVICES SUB-COMMITTEE
Fund Source
09 Mgt Plan Gov Amd Sen Sub
Difference
GF $ 903,587.9 $ 866,345.5 $ 848,593.5
$(17,752.0) (2.0) %
Federal 1,008,215.0 1,057,652.1
1,057,081.1 ( 571.0) (0.1) %
Other 171,864.8 159,584.6
160,784.6 1,200.0 0.8 %
---------------- ---------------- ----
------------
Total $2,083,667.7 $2,083,582.2
$2,066,459.2
Position Summary
09 CC Gov Amd Sen Sub
PFT 3,436 3,465 3,455
PPT 98 95 95
Temp 136 111 111
------ ------- -------
Total 3,670 3,671 3,661
FY 2010 Senate Finance Sub-Committee Budget
Recommendations for H&SS /March 19, 2009
Personnel
The authorized position count for the department was
reviewed; the overall number of positions stayed about
the same, although we did not approve all of the new
PFT positions.
9:19:27 AM
BUDGET ACTION:
The GF in this budget was reduced from the previous
year by $54.8 million, largely due to Federal Medical
Assistance Percentage (FMAP) changes which result in
the federal share of expenditures increasing, and the
State's share decreasing. Although funding increased
$13.7 million in total, including the FMAP changes and
other adjustments to Medicaid in this budget request,
the GF portion went down $82.6 million. In addition
to a reduction of GF for Medicaid, the Adult Public
Assistance Program and the Senior Benefits Payment
Program were each reduced $500 thousand due to a
decline in the number of people receiving these
services compared to what was previously projected.
9:20:34 AM
This is fortunate since it did allow for some
necessary increases in other areas, which we believe
to be basic and integral to the services provided by
this budget, and consider them to be essential to what
government does for its citizens. And so this budget
proposal funds basic support needed for children, the
frail and other Alaskans who cannot provide for
themselves. Notable increases that are approved
include:
Approximately $6.2 million of GF, and nearly $2
million in Mental Health Trust Funds, was added for
various services provided to our children, including
front line Social Workers, Child Advocacy Centers,
autism, early intervention and infant learning, and
other services that are part of the Bring the Kids
Home efforts.
9:21:24 AM
$500 million for the Juvenile Justice Facilities,
mostly to increase front line staffing but also to add
a nurse and maintenance position, and funds for
additional operating costs.
9:23:16 AM
Ms. Liccioli informed that the proposed budget funds
essential services as program costs escalate and population
groups increase. She stressed concern about continuing
changes to the FMAP rate that affect Medicaid and other
programs within the department. This year, Alaska will
spend less state and more federal money, but the opposite
is often true. A small change in the budget can result in
additional state expense.
Senator Ellis expressed appreciation for the Subcommittee
chair and staff for their willingness to work with all
legislative members. He reminded the committee of the
incredible stress placed on non-profit organizations due to
the downturn in the economy.
Co-Chair Stedman MOVED to ADOPT FY10 Senate Finance
Operating Subcommittee Report for the Department of Health
and Social Services (DHSS) as presented with corresponding
legislative finance reports. There being NO OBJECTION, it
was so ordered.
9:25:34 AM
Ms. Liccioli presented the Senate Subcommittee
Recommendation for the Department of Public Safety.
9:26:56 AM
DEPARTMENT OF PUBLIC SAFETY
Fund Source
09 Mgt Plan Gov Amd Sen Sub
Difference
GF $116,401.8 $128,945.0
$125,095.1 $(3,849.9) ( 3.0)%
Federal 15,257.6 15,191.2
11,540.0 (3,651.2) (24.0)%
Other 23,135.9 29,777.2
30,542.9 765.7 2.6 %
---------------- -------------- ----
----------
Total $154,795.3 $173,913.4
$167,178.0
Position Summary
09 CC Gov Amd Sen Sub
PFT 836 857 844
PPT 17 16 16
Temp 12 14 14
------ ------ ------
Total 865 887 874
Personnel
Reviewed the authorized position count for the
department. The Governor requested 20 new positions.
The sub-committee authorizes 7 of those.
Budget Action
The sub-committee was reopened to allow for one
additional transaction to occur. After the initial
close-out, we discovered that additional PFD Criminal
Receipts would be available. Thus the sub-committee
was reopened and all of the sub-committee members were
polled in addition to the department to determine if
the budget should be changed; no one objected to
taking this action. Thus, there was a fund source
adjustment done to remove $881.9 of GF from the
Council on Domestic Violence and Sexual Assault
(CDVSA) and to replace it with a like amount of PFD
Criminal Receipts. Legislative Finance has updated
all the reports and, with the exception of this
paragraph and the one describing changes to the CDVSA,
the remainder of this memo is identical to the one
used at close-out.
· Held 4 public meetings with the department to
discuss and explain the budget;
· Adopted the FY10 Adjusted Base; and
· Reviewed each of the increments and decrements
submitted by the Governor, including
amendments.
9:28:09 AM
The Governor made public safety a priority and this
budget is one of the few with some significant increases.
The Senate Finance Sub-Committee approved most of those
increases. Notable increases to GF that are approved:
· $3,343.9 of the Governor's request for $4,165.1 to
fully fund commissioned officers is approved. These
increases are in multiple components of the
department. They are needed due to the success with
recruitment and the resulting low vacancy rate that
the department has experienced, causing them to be
short of personal services.
· $2,470.3 is approved for the VPSO program to
annualize the funding for positions authorized last
year, to add 15 additional positions this year, and
for COLA and merit increases. This follows the
recommendations of the Senate VPSO Task Force from
2008. The department is already seeing success with
the implementation of the first of those
recommendations, in a similar way as with the
Troopers, with more applicants for VPSO positions,
and less turnover. These increases are necessary if
they are to continue and build on this success and
ensure public safety for rural Alaskans as well.
· $1,439.5 is approved of the total $1,963.6 requested
by the Governor for cost increases in various
existing programs of the department. This includes
leases, utilities, insurance, medical exams,
vehicles, fuel and airline costs, and supplies.
Most if not all of these increases are beyond the
control of the department and must be funded if
services are to continue.
9:28:15 AM
o $287.0 is approved for other items, including
Anchorage prisoner transportation, Central
Region facilities maintenance, and DNA
collection kits. $28.0 is not funded of the
total requested for Central Region facilities
maintenance.
9:28:41 AM
Non-GF increases were requested and with one exception,
all are approved. Included in this group is:
· An increase to the Council on Domestic Violence and
Sexual Assault (CDVSA) out of PFD Criminal Receipts
for $1,677.9. The Sub-Committee also adds an
additional $1,381.9 of PFD Criminal Receipts since
additional funds are expected to be available, and
offsets that increase with a corresponding decrease
to GF.
· Another significant requested increase in non-GF is
for 13 positions and $4,800.0 of CIP receipts for
the Bureau Highway Patrol. The Sub-Committee
approves $4,102.9 for that request, but does not
approve an increase to positions; the department
should use existing positions.
9:29:45 AM
Items which were requested but which are not funded
include:
· Essentially all of the fund source switches
requested to replace non-GF with GF due to salary
adjustments for Bargaining Unit agreements is
denied. These are each relatively small amounts
that should be absorbed by the department.
· No funds for additional moves by trooper positions
are approved; $800.0 was requested.
· The request for $3,660.2 of federal funds for CDVSA
is not approved since those are continuing funds
which will not lapse until June 30, 2010.
9:30:48 AM
The Sub-Committee also recommends language and
conditional funding to be included in the "language
section" of the CS for the Rural Alcohol Interdiction
Team for $1,270.0; and for Drug and Alcohol
Enforcement for $1,393.2.
Other changes are shown in the reports included with
this. It is also our intention to allow Legislative
Finance to do technical adjustments if any are needed.
Items of Concern
The Department is to be commended for its efforts in
recruiting and retaining trooper positions and
bringing the vacancy rate down. Should those efforts
continue and result in all positions being filled for
the full twelve months, a supplemental request may be
needed next year for both Troopers and VPSOs.
However, even though the results so far have been
remarkable, history tells us that it is highly
unlikely that 0% vacancy will ever be achieved. That
said, this budget recommendation funds most of the
department requests and clearly the majority of those
increases relate to that improvement in recruiting and
retention, which we wholeheartedly support.
9:32:03 AM
Another concern is that by replacing so much of the GF
funding for the CDVSA with PFD Criminal Receipts, it
is expected that a large GF increment will be needed
in the future to sustain the shelters funded by this
budget component. For now, while the receipts are
available, it makes good sense to use those receipts
in lieu of GF; but as the PFD amounts decrease, so
will the available PFD Criminal Receipts and they must
inevitably be replaced with GF. The only other
alternative is to drastically reduce the services
offered throughout the State by the funding in this
component, and that is unacceptable.
9:32:59 AM
Approximately $5 million in GF, in addition to another
$5 million in Mental Health Trust Funds, was added for
substance abuse and mental health programs and
services.
$5 million of GF was added to maintain the Alaska
Heating Assistance Program, which is important to many
Alaskans who need help with their fuel bills.
Finally, $10.1 million was added for cost increases.
$1.3 million is for rate increases for Subsidized
Adoptions and for Dental Rates for non-Tribal
providers. $4.3 million is for grantee cost increases
for many of the department's programs. $1.7 million
is for cost increases to various programs in the
department such as the Birth Defects registry, the
Cancer registry, and Therapeutic Courts. Finally,
$2.8 million of this amount is due to correcting a
previous error in how the Public Health Nurses were
charging to the Medicaid program.
FY 2010 Senate Finance Sub-Committee Budget
Recommendations for H&SS /March 19, 2009
Significant items which were requested, but which are
not funded, include:
The Governor requested $500 thousand and 1 position
for the Health Care Commission she created by
Administrative Order.
The Governor requested $498.4 thousand and 2 positions
for her health initiative, "Live Well Alaska".
The Governor requested $3 million in GF to increase
the child care rate for working families. However,
since the Governor's budget was submitted, funds for
Child Care Assistance have been included in the
federal economic stimulus budget. The department may
request an increase next year if those funds are not
sufficient or at such time as the funds are no longer
available to them.
Detail on these and other changes are shown in the
reports included with this.
It is also our intention to allow Legislative Finance
to do technical adjustments if any are needed.
Items of Concern
Clearly, the biggest concern for this budget is the
size of the budget itself, and whether it can be
sustained. This budget funds some of the most
essential services of state government and not only
are the costs of all the programs escalating, but in
addition, there continues to be growth in the programs
as the elderly population increases, poverty levels
increase, and substance abuse and other behavioral
health problems abound.
Another concern for this budget is the continuing
change to the FMAP rate and other federal programs.
This year we were fortunate because the FMAP rate
increased, but it can just as easily go the other way,
especially when the economic stimulus funds are no
longer available. Even a small increase in the
State's share will cost tens of millions.
Co-Chair Stedman MOVED to ADOPT FY10 Senate Finance
Operating Subcommittee Report for the Department of Public
Safety as presented with corresponding legislative finance
reports. There being NO OBJECTION, it was so ordered.
9:33:58 AM
Senator Ellis presented the Senate Committee Recommendation
for the Department of Corrections (DOC).
DEPARTMENT OF CORRECTIONS
Fund Source:
FY09 FY10 FY 10 Senate Difference
Management Governor's Subcommittee (Governor
Plan Amended to Senate
Adjusted Sub)
Base
General 210,982.0 214.041.4 213,819.2 -222.2 (-
Funds 0.1%)
Federal 2,990.5 3,174.4 3,187.3 12.9
Funds (0.4%)
Other 30,560.0 31,985.1 31,977.0 -8.1 (-
Funds 0.0%)
Total 244,532.5 249,200.9 248,983.5 -217.4 (-
0.1%)
Personnel:
The Subcommittee reviewed the authorized position
count for the Department. The Governor's amended
budget proposal requested three new positions. The
Subcommittee is recommending three new positions.
FY09 FY10 FY 10 Senate
Position Authorized Governor's Subcommittee
Summary Amended
Adjusted Base
Permanent 1512 1513 1513
Full Time
Permanent 4 3 3
Part Time
Temporary 0 0 0
Total 1516 1516 1516
9:35:31 AM
BUDGET ACTION:
Adopted the Fiscal Year 2009 Adjusted Base.
Reviewed each of the increments (9) and decrements (0)
submitted by the Governor. Recommends the adoption of
the Governor's proposal with the following exceptions:
Deny Inc 302.2 GF "1/4 Year Operating Costs for 80-bed
conversion in FY09" to the Wildwood Correctional
Center allocation of the Population Management
appropriation.
Remove 897.7 GF "Incomplete Wildwood Building
Conversion" from base of Wildwood Correctional Center
allocation of the Population Management appropriation.
Deny Inc 485.3 PFD Crim "Costs Associated with Sex
Offender Treatment and Polygraph Examinations" in the
Inmate Health Care allocation of the Inmate Health
Care appropriation. The Subcommittee recommends
approval of Inc 242.6 PFD Crim for the same purpose.
Deny Inc 500 GF "Expand Institutional Out-Patient
Substance Abuse Program" in the Inmate Health Care
allocation of the Inmate Health Care appropriation.
The Subcommittee recommends approval of Inc 257.3 GF
and Inc 242.7 PFD Crim for the same purpose.
Adopt IncOTI 1,225.0 GF "Secured Detoxification and
Treatment for Involuntary Substance Abuse Commitment"
in the Inmate Health Care allocation of the Inmate
Health Care appropriation.
Adopt TrOut -13,608.4 from the Inmate Health Care
allocation of the Inmate Health Care appropriation and
TrIn 13,608.4 to a new Behavioral Health Care
allocation in the Inmate Health Care appropriation.
Adopt TrOut -24.528.9 from the Inmate Health Care
allocation of the Inmate Health Care appropriation and
TrIn 24,528.9 to a new Physical Health Care allocation
in the Inmate Health Care appropriation.
Amendment Action:
Reviewed and recommends the adoption of the two
operating budget amendments (one increment and one
decrement) submitted by the Governor through February
29th, 2009.
9:36:20 AM
Items of Concern:
For many years the expansion of the Yukon-Kuskokwim
Correctional Center in Bethel has been a high-priority
project for the Legislature, leading to its inclusion
in 2004's Senate Bill 65, which authorized the state
to assist communities in building or expanding
correctional facilities. While the construction of
the Goose Creek Correctional Center in the Mat-Su
Valley is underway, and a number of smaller expansion
projects in facilities like Wildwood Correctional
Center in Kenai have taken place, YKCC remains
incomplete. The Subcommittee discussed this issue and
the lack of progress over the years with the
Department, and is committed to continuing this
discussion until the community and legislators are
satisfied with the Department's progress in Bethel.
9:37:09 AM
The Governor's amended budget proposal combines all
behavioral health treatment programs under a single
heading in the Inmate Health Care appropriation.
While the Subcommittee understands and appreciates the
need for organizational coherence and efficiency, the
lack of clarity on how dollars are spent within this
appropriation raises questions. The Inmate Health
Care appropriation currently consists of just one
allocation with a budget of over $37 million. The
Subcommittee is concerned that unexpected major
medical events and the increasing cost of providing
basic physical health care could be threats to the
maintenance of these priority programs without some
measure of Legislative control over the movement of
funds within the appropriation. The Commissioner and
his staff assured the Subcommittee of the Department's
commitment to maintaining and expanding substance
abuse and sex offender treatment programs, along with
their other behavioral health initiatives. By
recommending the Inmate Health Care appropriation be
split into two separate allocations, the Subcommittee
intends to reinforce the importance of these programs
to the long-term goals of reducing recidivism and
inmate population.
9:38:12 AM
The increment for Secure Detoxification and
Involuntary Substance Abuse Treatment funds the second
year of a three-year pilot program based out of the
Salvation Army's Clitheroe Center in Anchorage. Under
existing statute, judges have the ability to order
public inebriates who are a danger to themselves or
their community to take part in secured substance
abuse treatment programs. Between state and local
police, local sleep-off centers, state and local
Health and Social Services programs, and the
Department of Corrections, these individuals are
responsible for an inordinate proportion of public
spending. This pilot program is a coordinated and
proactive response to a continuing problem, and could
provide a breakthrough in combating the public health
and safety risks posed by this population. Alaska's
program is based on the successful result of similar
programs on the county level in the state of
Washington.
9:38:51 AM
In the last few years, there have been significant
advances in the development of results-based programs
that can reduce recidivism and cut costs by
diminishing the inmate population. The Institute for
Social and Economic Research at UAA and the Pew
Foundation for the States have released reports in
recent months detailing Alaska's need for increased
education, job training, and substance abuse treatment
programs, and the potential for significant long-term
cost savings as a result. The Subcommittee is
committed to working with the Commissioner and the
Department to both monitor the success of current
programs to ensure that they are providing the
necessary results, and investing in additional
programs with results supported by statistical
evidence.
Co-Chair Stedman MOVED to ADOPT FY10 Senate Finance
Operating Subcommittee Report for the Department of
Corrections as presented with corresponding legislative
finance reports. There being NO OBJECTION, it was so
ordered.
9:40:02 AM
Senator Ellis presented the Senate Committee Recommendation
for the Department of Environmental Conservation (DEC).
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Fund Source:
FY09 FY10 FY 10 Senate Difference
Management Governor's Subcommittee (Governor
Plan Amended to Senate
Adjusted Sub)
Base
General 18,891.4 19,140.5 19,144.2 3.7 (0.0%)
Funds
Federal 21,396.8 21.497.6 21,497.6 0 (0%)
Funds
Other 33,086.8 33,496.9 33,516.9 20.0
Funds (0.0%)
Total 73,375.0 74,135.0 74,158.7 23.7
(0.0%)
Personnel:
The Subcommittee reviewed the authorized position
count for the Department. The Governor's amended
budget proposal requested one new position. The
Subcommittee is recommending three new positions.
FY09 FY10 FY 10 Senate
Position Authorized Governor's Subcommittee
Summary Amended
Adjusted Base
Permanent 529 532 534
Full Time
Permanent 1 1 1
Part Time
Temporary 4 5 5
Total 534 538 540
Budget Action:
The Subcommittee held three meetings with the
Department and took the following actions:
Adopted the Fiscal Year 2009 Adjusted Base.
Reviewed each of the increments (2) and decrements (2)
submitted by the Governor. Recommends the adoption of
the Governor's proposal with the following exceptions:
Deny Inc 184.0 GF "Climate Change Sub-Cabinet
Activity" to the Air Quality allocation of the
Environmental Health Appropriation.
Adopt Inc 187.7 GF "Add Two New Environmental Health
Officer Positions and Related Costs for Food Safety
Inspections" to the Food Safety and Sanitation
allocation of the Environmental Health appropriation.
9:41:19 AM
Adopt Inc 20.0 Cruise Ship "Paralytic Shellfish
Poisoning Testing" to the Laboratory Services
allocation of the Environmental Health appropriation.
Amendment Action:
The Governor did not submit operating budget
amendments for DEC.
Items of Concern:
The Subcommittee had considerable discussion regarding
the deficiency of the food safety inspection program
and the disparity between the Department's funding
level and the expectations of the public at large.
Even with the addition of two food safety inspectors
and related costs included in the Subcommittee's
recommendation, the Department expects it will be able
to inspect just under 40% of permitted food service
establishments and processers in FY10, up from 35% in
FY09. The federal Food and Drug Administrations Model
Food Code recommends a minimum of one to three
inspections each year. This serious shortfall
threatens the health and safety of people across the
state, but is felt strongest in rural areas, where
costs drive inspection rates even lower than the
statewide average.
9:42:34 AM
The growth of the wild and farmed shellfish industry
in Southeast and Southcentral Alaska threatens to
outstrip the ability of the Department to provide
testing, which is necessary to advance the permitting
process that is vital to the continued health of this
profitable and sustainable fishery. With the
recommended increment, the Department will be able to
expand testing to support new and expanded harvests.
9:43:02 AM
Co-Chair Stedman MOVED to ADOPT FY10 Senate Finance
Operating Subcommittee Report for the Department of
Environmental Conservation as presented with corresponding
legislative finance reports. There being NO OBJECTION, it
was so ordered.
9:43:50 AM
Co-Chair Stedman presented the Senate Committee
Recommendation for the Department of Law.
DEPARTMENT OF LAW
09 Adj
Fund Source Base Gov Amd Sen Sub Difference
General
$56,825.4
Funds $45,021.1 $54,309.1 $(2,516.3)
Federal $ $ $
Funds 3,233.7 3,880.3 3,880.3 0
$
Other Funds $24,715.0 $25,176.8 $25,193.1 16.3
Total $85,235.9
$72,969.8 $83,382.5
09 Adj
Positions Base Gov Amd Sen Sub Difference
PFT 549 549 549 0
PPT 7 7 7 0
Temp 0 0 0 0
BUDGET ACTION:
CRIMINAL DIVISION
Approved a one-time increment of $646,000 for U.S.
Department of Justice federal grants to continue
funding attorneys and paralegals to aid in the
prosecution of domestic violence as well as adult and
child sexual assault cases. Funding is split as
indicated below:
Second Judicial District - $90,000
Fourth Judicial District - $285,000
Criminal Appeals & Special Litigation Section -
$271,600
Approved an increment of $292,400 GF for anticipated
lease cost increases for the Third Judicial District
office space in the Whale and Brady Buildings in
Anchorage.
Within Criminal Justice Litigation, approved a one-
time increment of $12,500 in Mental Health Trust
Receipts to provide Disability Justice training for
prosecutors to allow them to better understand and
more efficiently handle cases involving persons with
mental health disorders or cognitive impairments.
CIVIL DIVISION
Approved an increment of $398,800 (50% GF & 50% Inter-
agency Receipts) for anticipated lease cost increases
for the Deputy Attorney General's office space in the
Whale and Brady Buildings in Anchorage.
Approved a one-time increment of $165,000 in Tobacco
Education & Cessation Funds for the Commercial & Fair
Business group to continue work on resolving a Master
Settlement dispute between the State of Alaska and the
tobacco companies.
Denied a fund source change from Oil & Hazardous
Response Funds to General Funds related to
unrealizable salary adjustments in the Environmental
Law group.
9:45:15 AM
Approved a one-time increment of $5.109 million GF
within the Oil, Gas & Mining section for legal
services related to ongoing Pt. Thomson litigation,
FERC proceedings relating to Trans-Alaska Pipeline
tariffs and corporate income tax matters.
Denied a one-time increment of $1.9 million GF within
the Oil, Gas & Mining section for legal work related
to Trans-Alaska Pipeline strategic reconfiguration
Approved an $187,000 GF increment within Statehood
Defense for legal counsel related to continuing
statehood entitlement work.
Denied a $600,000 one-time GF increment within the
Statehood Defense section for work related to federal
Endangered Species Act action regarding Polar Bears
and Beluga Whales.
9:45:28 AM
Recommended that the Department's $150,000 FY09
Supplemental request for Endangered Species Act work
within the Statehood Defense section be increased to
$750,000 and given a FY2010 lapse date. This should
provide the section with operating funds through the
end of FY2010.
ADMINISTRATION & SUPPORT
Approved an increment of $101,200 in Capital
Improvement Project Receipts for the Administrative
Services section to continue funding a network
specialist to operate and maintain the Case Management
System.
9:45:51 AM
BP CORROSION
Approved a one-time increment of $3.5 million GF to
continue the pursuit of claims against BP for
penalties and lost revenues related to the 2006
Prudhoe Bay pipeline corrosion and maintenance
problems which resulted in spills and lost oil
production.
Co-Chair Stedman noted a lack of change within the position
count.
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Law as presented with corresponding legislative finance
reports. There being NO OBJECTION, it was so ordered.
9:46:59 AM
Co-Chair Stedman presented the Senate Committee
Recommendation for the Department of Revenue (DOR).
DEPARTMENT OF REVENUE
09 Adj
Fund Source Base Gov Amd Sen Sub Difference
General $ $ $
Funds 17,118.5 20,414.8 18,164.1 $(2,250.7)
Federal $ $ $ $
Funds 37,926.1 39,588.3 39,611.0 22.7
Other Funds $207,072.3 $189,797.8 $191,562.7 $ 1,764.9
$(
Total $262,116.9 $249,800.9 $249,337.8 463.1)
09 Adj
Positions Base Gov Amd Sen Sub Difference
PFT 867 867 866 -1
PPT 41 41 41 0
Temp 17 17 17 0
Total 925 925 924 -1
BUDGET ACTION:
TAX DIVISION
Approved a $50k fund source change from Capital
Improvement Project Receipts to GF to prepare the
statutorily required annual Alaska Salmon Price
Report.
Approved a one-time increment of $270,000 GF for
contract audit assistance. The Governor's request was
for $540,000.
Approved a $200,000 GF increment to fund the fourth
master auditor position that was authorized during the
2007 ACES legislation.
TREASURY DIVISION
Approved $81,700 in fund source changes necessary to
comply with changes made by the Alaska Retirement
Management Board to the structure of the Retiree
Health Care Trust Fund. The old "Retiree Health Care"
designation is being replaced with the broader
designation of "Benefit System Receipts".
Approved $420,000 in fund source changes necessary to
bring the Treasury Division's cost allocation plan
into compliance.
Approved a $152,000 GF increment to recover Treasury
management costs that under the new cost allocation
plan, can't be allocated to unbudgeted RSAs in FY2010.
9:47:30 AM
ALASKA RETIREMENT MANAGEMENT BOARD (ARMB)
Approved $113,000 in fund source changes necessary to
comply with changes made by the Alaska Retirement
Management Board to the structure of the Retiree
Health Care Trust Fund. The old "Retiree Health Care"
designation is being replaced with the broader
designation of Benefit System Receipts.
Approved $74,600 in fund source changes necessary to
bring the Treasury Division's cost allocation plan
into compliance.
Approved a $249,500 increment of Group Health Life &
Benefit Receipts to fund increased measurement and
consulting costs associated with the addition of 15
new investment options within the Supplemental
Annuity, Deferred Compensation and Defined
Contribution plans.
Approved a $900,000 increment of Group Health Life &
Benefit Receipts to cover increased Treasury
management costs associated with the Supplemental
Annuity and the Deferred Compensation Plan.
Approved a $150,000 one-time increment of retirement
trust funds to engage a contractor to audit the
Board's performance consultant, Callan Associates.
9:47:48 AM
ARMB CUSTODY AND MANAGEMENT FEES
Approved an $8.547 mill decrement of retirement trust
funds to reflect lower investment manager fees due to
the decline in the retirement portfolio's market
value.
9:48:26 AM
PERMANENT FUND DIVIDEND DIVISION
Approved a $101,000 increment of Permanent Fund
Dividend funds to cover cost increases associated with
an increased number of applicants and public inquires.
CHILD SUPPORT SERVICES DIVISION
Denied a $1.9 million fund source change from Receipt
Supported Services to GF to increase state matching
funds. The Department testified that they wouldn't
need this change after all due to relief that was
anticipated in the federal stimulus bill - the
American Recovery and Reinvestment Act (ARRA).
Co-Chair Stedman commented that the portion of the report
concerning child support was not in the bill as it was
presented to the finance committee, meaning that the state
requires an additional $400 thousand in general funds if
the $612 thousand of federal stimulus money is accepted. He
encouraged committee members to realize the issue requires
a solution.
9:49:23 AM
ADMINISTRATIVE & SUPPORT
Denied $22,700 in fund source changes from CSSD
receipts to General Funds related to unrealizable
salary adjustments in the Commissioner's Office and
the Administrative Services group.
Accepted the House recommendation to delete the
special assistant to the commissioner position. ($46.4
GF/$72.6 Inter Agency Receipts)
MENTAL HEALTH TRUST OPERATIONS
Approved $2.65 mill in Mental Health Trust Receipts to
fund the Board of Trustees approved FY2010 operating
plan. This is a $150,400 increase over the FY09
management plan.
LONG TERM CARE OMBUDSMAN'S OFFICE
Denied an $11,600 fund source change from Inter-Agency
Receipts to GF related to unrealizable salary
adjustments.
ALASKA HOUSING FINANCE OPERATIONS
Approved a $674,300 fund source change from
Corporation Receipts to Federal Receipts in order to
maximize available federal Dept of Housing & Urban
Development funding.
Approved a $959,700 increment in Fed Receipts to cover
increased utility costs from rate increases.
Approved a $254,400 increment ($50.9 Fed/$80.5
CIP/$123.0 AHFC Receipts) for costs associated with
increased business activity.
9:49:59 AM
ALASKA PERMANENT FUND CORP OPERATIONS
Denied a $74,100 increment in Perm Fund Corp Receipts
for increased travel.
APFC CUSTODY AND MANGEMENT FEES
Approved a $10.0 mill decrement in Perm Fund Corp
Receipts to reflect lower investment manager fees due
to the decline in the retirement portfolio's market
value.
Co-Chair Stedman stated that next year's report will
include increments on management fees.
Co-Chair Stedman MOVED to ADOPT the FY 10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Revenue with corresponding legislative finance reports.
There being NO OBJECTION, it was so ordered.
9:51:07 AM
Co-Chair Stedman presented the Senate Committee
Recommendation for Department of Transportation and Public
Facilities (DOT/PF).
DEPARTMENT OF TRANSPORTATION & PUBLIC FACILITIES
09 Adj
Fund Source Base Gov Amd Sen Sub Difference
General $ $
Funds $205,345.1 221,616.8 $230,238.5 8,621.7
Federal $ $ $ $
Funds 3,996.1 3,987.0 3,988.2 1.2
$ $
Other Funds $295,741.6 293,057.2 $296,571.2 3,514.0
$ $
Total $505,083.0 518,661.0 $530,797.9 12,136.9
09 Adj
Positions Base Gov Amd Sen Sub Difference
PFT 3,200 3,202 3,202 0
PPT 438 444 436 -8
Temp 199 0
199 199
Total 3,837 3,845 3,837 -8
BUDGET HIGHLIGHTS:
The subcommittee approved $4.033 million GF for salary
and benefit adjustments for the recently concluded
Alaska Marine Highway System bargaining agreements:
· $2.320 mill - Inlandboatman's Union of the
Pacific (IBU)
· $0.924 mill - Master, Mates & Pilots (MMP)
· $0.789 mill - Marine Engineers Beneficial
Association (MEBA)
The subcommittee approved $12.7 mill in additional
funding for facilities, highway and aviation
maintenance statewide. This will allow the regions to
provide a higher level of service in recognition of
lost purchasing power over the past several years.
· $6.239 mill - Northern Region
· $4.816 mill - Central Region
· $1.667 mill - Southeast Region
9:52:21 AM
Specific Budget Action
The Subcommittee held four meetings with the
Department and accepted the Governor's appended budget
transactions with the following exceptions:
AGENCY WIDE
· Denied 29 separate transactions requested agency-
wide to charge $1.015 million in unrealizable
salary adjustments to the General Fund from other
funding sources.
CENTRAL REGION FACILITIES
· Added a $54,800 GF increment to bring equipment,
utilities, facilities maintenance and repair
funding authority up to FY09 spending levels.
· Added a $496,400 GF operational increment to
allow the region to provide a higher level of
service in recognition of lost purchasing power
over the past several years.
NORTHERN REGION FACILITIES
· Denied a $141,200 GF increment for janitorial
contract cost increases at various facilities in
the Northern Region to include Tok, Delta
Junction and Fairbanks.
· Added an $116,700 GF increment to bring
equipment, utilities, facilities maintenance and
repair funding authority up to FY09 spending
levels.
· Added a $709,900 GF operational increment to
allow the region to provide a higher level of
service in recognition of lost purchasing power
over the past several years.
SOUTHEAST REGION FACILITIES
· Added a $104,500 GF operational increment to
allow the region to provide a higher level of
service in recognition of lost purchasing power
over the past several years.
9:53:02 AM
CENTRAL REGION HIGHWAYS AND AVIATION
· Approved a $200,000 GF increment for fuel and
equipment operational costs related to sidewalk snow
removal in Anchorage. The Governor's original
request included an additional $300,000 in
associated personal services that was denied.
· Denied an $116,300 GF increment for anticipated
street sweeping contract cost increases in the
region.
· Added a $1.618 mill GF increment to bring equipment,
utilities, facilities maintenance and repair funding
authority up to FY09 spending levels.
· Added a $2.647 mill GF operational increment to
allow the region to provide a higher level of
service in recognition of lost purchasing power over
the past several years.
NORTHERN REGION HIGHWAYS AND AVIATION
· Added a $554,000 GF increment to bring equipment,
utilities, facilities maintenance and repair funding
authority up to FY09 spending levels.
· Added a $4.858 mill GF operational increment to
allow the region to provide a higher level of
service in recognition of lost purchasing power over
the past several years.
SOUTHEAST REGION HIGHWAYS AND AVIATION
· Approved a $20,000 GF increment for fuel and
equipment operational costs related to sidewalk snow
removal in Juneau. The Governor's original request
included an additional $27,100 in associated
personal services that was denied.
· Added a $378,500 GF increment to bring equipment,
utilities, facilities maintenance and repair funding
authority up to FY09 spending levels.
· Added a $1.184 mill GF operational increment to
allow the region to provide a higher level of
service in recognition of lost purchasing power over
the past several years.
WHITTER ACCESS & TUNNEL
· Denied a $2.0 mill fund source change from Capital
Improvement Project Receipts to Cruiseship Gambling
Tax Receipts (GF) for the maintenance and operations
of the Whittier Tunnel. CIP Receipts are still an
appropriate fund source for this item
· Approved a $500,000 increment of Regional Cruise
ship Impact Fund Receipts to extend the operating
hours of the Whittier Tunnel during the summer
tourism season. The Governor's original request
proposed using Cruise ship Gambling Tax Receipts
(GF) instead.
9:53:49 AM
Co-Chair Hoffman stated that DOT has come in higher
(approximately $10 million) than requested by the governor.
The increases are in the area of maintenance and the
chairman felt that there is a need to increase DOT's
presence in all regions of the state to address maintenance
of streets and roads.
Positions 09 CC Amd. Sub
PFT 915 910 910
PPT 767 767 767 0
Temp 58 62 62
Restored a portion of one-time funding for pinniped
research related to the E.S.A. $930.0 CIP Receipts
Reduced funding to Public Shooting Ranges in the
Hunter Education Division. -$114.1 GF (F/G)
Funded two existing Habitat Biologist positions via
RSAs with DNR for Oil & Gas pre-application work.
$180.0 I/A Receipts
9:56:50 AM
Mr. Grussendorf read the intent language relating to the
fish and game board advisory committees. The language
informed that meetings held by the board of fisheries with
a primary topic or proposal concerning a regional area are
held in that regional area.
Co-Chair Hoffman added that discussion on the Bering Sea
crab resumed, although he alleged that the item is a
federal responsibility requiring further discussion.
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Operating Subcommittee Report for the Department of Fish
and Game as presented with corresponding legislative
finance reports. There being NO OBJECTION, it was so
ordered.
9:58:20 AM
Co-Chair Hoffman informed that the members of the Office of
the Governor subcommittee included himself, Senator Gary
Stevens, and Senator Albert Kookesh.
Mr. Grussendorf discussed the Subcommittee recommendations.
OFFICE OF THE GOVERNOR
09 mgt.
Fund Source plan FY10 Gov Amd Sen Sub Gov to Sen
General $ $ $ $
Funds 25,381.4 22,886.5 22,485.0 -(401.5)
Federal $ $ $
Funds 184.9 187.6 187.6
$ $ $
Other Funds
1,979.7 834.5 834.5
Positions 09 CC 10 Gov Amd. Sen. Sub Gov to Sen
PFT 156 156 155 -1
PPT 0 0 0 0
Temp 46 23 23 0
Budget Action:
Accepted the Governors amended proposal with the
following adjustments.
Reduction of FY 09 carry forward of $350.0 in the
Executive Office and $50.0 in the Lt. Gov's Office.
Language:
Fund FY 2010 Branch wide fuel increase of $24,000.0
Branch wide fuel/utility cost reduction of ($1,000.0)
9:59:07 AM
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Office of
the Governor as presented with corresponding legislative
finance reports. There being NO OBJECTION, it was so
ordered.
9:59:46 AM
Mr. Grussendorf presented the Senate Committee
Recommendation for the Legislature.
LEGISLATURE
09 mgt. 10 Gov
Fund Source plan Amd Sen Sub Difference
General $ $ $
Funds 64,248.5 65,943.2 64,962.7 $(980.5)
Federal
Funds 0 0 0 0
$
Other Funds 963.6 $1,142.3 $1,107.3 $(35.0)
10 Gov Sen to
Positions 09 CC Amd. Sen. Sub Gov
PFT 246 246 246 0
PPT 278 280 280 0
Temp 0 0 0 0
10:00:12 AM
BUDGET ACTION:
Accepted the Governors amended proposal with the
following adjustments.
The final budget request for the Legislative Budget
and Audit Committee, Legislative Affairs for the
Legislative Council were approved as submitted which
included non discretionary adjustments for wages and
other contractual obligations.
Approximately $2.3 million in one-time project
appropriations that were included in the FY09 budget
were removed from the FY10 request.
The FY10 request was increased by the amount estimated
to implement the legislative pay adjustment in January
2010
Allows a one time only increment to Legislative
Council account for casual labor costs.
10:00:52 AM
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Operating Subcommittee Reports for the Legislature as
presented with corresponding legislative finance reports.
There being NO OBJECTION, it was so ordered.
10:01:22 AM
Co-Chair Hoffman presented the Senate Committee
Recommendation for the University.
UNIVERSITY
09 mgt.
Fund Source Fy10 Gov Amd Sen Sub Sen to Gov
plan
General $ $ $ $
Funds 31,516.6 52,860.6 55,637.8 2,777.2
Federal $ $ $
Funds 178.8 179.0 179.0
$ $ $
Other Funds 1,896.2 1,336.0 1,336.0 -
Positions 09 CC 10 Gov Amd. Sen. Sub Sen to Gov
PFT ? 4697 4694 -3
PPT ? 222 222 0
Temp 0 0 0 0
Changed structure from one appropriation in Gov Amd
and the House to seven appropriations (matching FY09)
Began by adopting Adjusted Base as a starting point
Accepted the Total Compensation increases of $14.5
million but switched funding to 50% General Fund and
50% non-GF; also added Intent regarding Executive
salary pay increases
Reduced University Receipts by ($1,750.0) for non-
Personal Services Fixed Cost Increases (including
Athletics Travel, Academic/Research Travel, Facilities
Maintenance and Repair, and Other Fixed Cost Increases
in contractual services and commodities)
Added $1,750.0 University Receipts to fund the
Integrated Sciences Building (ISB) New Facility
Operating and Maintenance Costs on the Anchorage
Campus; also allowed $500.0 GF for the ISB, bringing
the total funding to $2,250.0 to allow for full
opening of the facility for the Fall 2009 semester;
also added Intent regarding the opening of the ISB
Accepted increases for New Facility Operating and
Maintenance Costs for the Virology Lab in Fairbanks
($150.0 GF) and for the Bragaw Building Lease ($350.0
GF) in Anchorage
Added funding for two Energy and Cooperative Extension
Service Programs (One-Time Increments) as follows:
10:04:07 AM
(1) UAF Alaska Center for Energy and Power (ACEP)
$500.0 GF, $400.0 Federal Receipts, $918.4 University
Receipts, totaling $1,818.4;
(2) UAF Cooperative Extension Service and Energy
Outreach $450.0 GF, $500.0 Federal Receipts, $850.0
University Receipts, totaling $1,800.0
Funding is not included for expansion of other
University programs
Retained the same permanent full-time position
authorization count as FY09 Conference Committee
Accepted all decrements for excess receipt authority
proposed by the University ($48 million total)
Accepted the Mental Health Trust Authority decrements
proposed in the Governor's Amended request ($328.5
MHTAAR)
Accepted $2.2 million GF (switched from Capital to
Operating Request) for Graduate Medical
Education/Family Practice Residency Program
10:04:57 AM
Mr. Grussendorf announced that the total approved budget
for the University of $820.9 million included an increase
of $13 million in general funds plus an increase of $10
million of non general funds over FY09.
Co-Chair Hoffman inquired about tuition increases. He
reminded that the subcommittee made adjustments to the $48
million of University receipts deemed unrecoverable,
resulting in $16.1 million rescinded by the legislature. He
asked about the accuracy of the amounts presented regarding
receipt authority.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
answered that the reduction in receipt authority submitted
by the University was in response to the Office of
Management and Budget (OMB) and the effort to reduce hollow
federal authority. In this case, the University requested a
reduction in authority by $16 million because they were not
generating the receipts in their budget. The University did
increase tuition. The budget passed by the Senate
subcommittee spends the same amount of University receipts
as the governor's budget. To the extent that the budget
request is accurate, there are not hollow receipts in the
subcommittee's budget.
Co-Chair Hoffman asked about the $16 million subtracted
from receipt authority for FY09. The receipt authority for
FY09 was $358 million. The budget presented here is $368
million making the amount of receipt authority greater than
that presented by Mr. Grussendorf. There is an additional
$10 million in receipt authority. The university should be
able to fund the Integrated Science building as its number
one priority with a request for $2.1 million along with the
$1.75 million included in the budget. He opined that the
University should accomplish their goal with the presented
budget.
10:09:10 AM
Mr. Teal commented that he did not know the University's
budget well enough to know what the effects will be. The
subcommittee opined that the University should be able to
fund their number one priority. The subcommittee spends no
more receipt authority than requested by the University.
The University may move money from one appropriation to
another. He opined that money was available for the
University to open the Integrated Science Building.
Senator Ellis appreciated the work on the Integrated
Science Building for the Anchorage campus. He suggested
that he did not understand the reference to the $1.75
million and the $2.2 million in Mr. Grussendorf's
presentation. He stated that one budget review unit from
the University has been divided into seven separate units
causing concern that receipt authority for the $1.75
million to open the Integrated Sciences Building this year
will mean compromising existing programs on the Anchorage
campus. He asked if the report denied an increase in
executive salaries.
Co-Chair Hoffman reminded the committee about the letter of
intent for $450 thousand received from the university.
Senator Ellis stated that there are newly liberated funds.
He noted the UAA campus and their need to meet existing
student demand and industry's need to educate students
interested in health fields. He noted a construction
project with a proposal before the SFC. He asked for
further detail regarding health training programs.
10:13:42 AM
Mr. Grussendorf stated that the low price of oil
necessitated the need to limit expansion for existing
programs. The existing program is held harmless. If the
market recovers in the near future, the legislative body
might consider the expansion of some programs. He commented
that the subcommittee supports the program as it exists,
but there is not extra money to take the program beyond the
current plan. Co-Chair Hoffman asked about the actions of
the other body regarding the funding of the health training
programs. Mr. Grussendorf answered that the House funded
fifty percent of the request at approximately $1 million.
Senator Olson stated that the amount proposed by the House
was $930 thousand. He supposed that midlevel medical
practitioners are required in rural areas to serve elders
dependent on physician's assistants and nurse
practitioners.
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the University
as presented with corresponding legislative finance
reports.
Senator Ellis OBJECTED. He hesitated due to conflicted
feelings and requested further discussion regarding the
Integrated Sciences Building and the health training
programs following public testimony.
Senator Ellis Removed his OBJECTION
There being NO OBJECTION, it was so ordered.
10:17:27 AM
JESSIE KIEHL, STAFF, SENATE DISTRICT B, presented the
Senate Committee Recommendation for the Alaska Court
System.
ALASKA COURT SYSTEM
FY09 mgt.
Fund Source plan FY10 Gov Amd Sen Sub Sen to Gov
General $ $ $ $
Funds 84,485.8 89,627.1 86,991.0 -2,636.1
Federal $ $ $
-
Funds 1,675.6 1,675.6 1,675.6
$ $ $
-
Other Funds 1,493.8 981.3 981.3
FY10 Gov
Positions FY09 CC Amd. Sen. Sub Sen to Gov
PFT 728 754 730 -24
PPT 62 61 62 1
Temp 32 28 28 0
BUDGET ACTION:
Accepted the governor's amended proposal with the
following adjustments.
Reduced a request for workstations, office equipment
and replacement furniture from $117.8 to $50.0.
Reduced a two transaction request to eliminate the
vacancy savings requirement for judicial positions
from $639.4 system wide to $200.0 in the trial courts.
Reduced a request for $879.1 and 13 PFT for the No
Dark Courtrooms initiative to $250.0 and no new
positions. The courts will hire employees into
existing vacant positions.
Reduced a request for $214.0 to add and upgrade
positions in the First Judicial District to $155.0 to
add a Juneau magistrate and upgrade a position in
Haines. The courts will use existing vacant
positions.
Denied $436.5 for new positions in the Third Judicial
District.
Reduced a request for $268.3 for Public Building Fund
lease costs and an expanded Nenana facility to $223.3,
which pays only the Public Building Fund needs.
Denied a request for $147.4 to increase the pay of pro
tem judges.
Reduced a $75.0 request for staff development and
sustained systems training to $50.0.
Denied a request for $250.0 for life-cycle replacement
of computer systems.
Denied a request for $125.0 for transcription costs
for criminal proceedings.
Denied a request for $411.9 and five positions in
administration.
Created a new allocation for therapeutic courts and
transferred funding to it.
10:19:29 AM
Adopted intent language directing therapeutic court
funding in the FY 11 cycle be transferred from other
agencies to the Court System budget.
Mr. Kiehl noted that the ///. The clerks added in the
courtroom to add information. Make sure that clerical
staff depletion does not hold up the process. He spoke
of increasing the court system hours. With the new and
efficient. The Alaska judicial council. The
recommendation is lower than the governor's request.
10:21:31 AM
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Alaska
Court System as presented with corresponding legislative
finance reports. There being NO OBJECTION, it was so
ordered.
10:22:02 AM
Mr. Kiehl presented the Senate Committee Recommendation for
the Department of Education and Early Development (DEED).
DEPARTMENT OF EDUCATION & EARLY DEVELOPMENT
09 mgt. Fy 10 Gov
Fund Source Sen Sub Sen to Gov
plan Amd
General $ $ $ $
Funds 49,381.8 55,842.2 54,492.2 -2350.0
Federal $ $ $
-
Funds 214,567.9 214,958.5 214,958.5
$ $ $
-
Other Funds 36,744.2 35,190.2 3 5 , 1 9 0 . 2
Positions 09 CC 10 Gov Amd. Sen. Sub Sen to Gov
PFT 329 332 332 -
PPT 14 15 15 -
Temp 0 0 0 -
BUDGET ACTION:
Accepted the Governors amended proposal with the
following adjustments:
Denied a request for $150.0 to audit intensive need
students.
Reduced the requested increment to Early Learning
Coordination to serve additional children in the Head
Start program. The subcommittee's increment is
$600.0. The subcommittee recommends the Finance
committee appropriate an additional $1 million to
serve additional Head Start children in communities
with chronically underperforming school districts. The
Finance committee may wish to use language similar to
the following:
10:23:50 AM
The sum of $1,000,000 is appropriated to the
Department of Education & Early Development to provide
expanded Head Start services in communities served by
chronically underperforming school districts.
10:24:45 AM
Denied a request for $2 million in the formula program
for a Pre-Kindergarten education pilot program. The
subcommittee recommends the Finance committee
appropriate this amount with contingent language
ensuring a substantial portion of the funds go to
serve children in chronically underperforming school
districts. The Finance committee may wish to use
language similar to the following:
1) The sum of $1,000,000 is appropriated to the
Department of Education & Early Development for a Pre-
Kindergarten education pilot program.
2) The sum of $1,000,000 is appropriated to the
Department of Education & Early Development for a Pre-
Kindergarten education pilot program serving children
in chronically underperforming school districts.
10:25:43 AM
Mr. Kiehl stated that the subcommittee believed that
underperforming children require attention at the beginning
of the education process.
Co-Chair Hoffman stated that one of the caucus's priorities
remained completing the commitment to fund increases in
education regarding the BSA intensive needs. The governor's
requests are included although they have been modified with
an additional $800 thousand for Pre-K.
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Education and Early Development as presented with
corresponding legislative finance reports. There being NO
OBJECTION, it was so ordered.
10:28:06 AM
Senator Huggins presented the Senate Committee
Recommendation for the Department of Natural Resources.
DEPARTMENT OF NATURAL
Senate Subcommittee Budget Comparisons
Operating General Federal Other Total
Budget Fund
FY10 $66,436,700 $13,939,900 $44,544,800 $124,921,400
Adjusted
Base
FY10 Gov $71,679,200 $13,804,300 $48,144,600 $133,628,100
Amend +
(HFS) $73,969,700 $14,054,300 $50,286,100 $138,310,100
Recommend
(SFS) $73, $13,804,300 $50,013,900 $*137,660,100
Recommend 841,900
(Table No. 1)
Senate Subcommittee Position Summary
Permanent Full Permanent Part Temporary
Time Time
FY 10 Adj 778 245 73
Base
Gov Amend + 779 246 76
(HSF) 780 246 76
Recommend
(SFS) 764 245 76
Recommend
(Table No. 2)
The Budget Subcommittee recommends an operating budget
that authorizes *$137,660,100*. While Table 1 shows a
number that is $4,032,000 greater than the Governor's
amended request, it includes $3.2 million for gas line
implementation, which was a capital item that moved
into the operating budget, and $2.5 million for the
Petroleum Systems Integrity Office, which was moved
from the language section to the numbers section. As
such, these two items do not represent an increase to
the budget. Therefore, the subcommittee's authorized
operating budget reflects an actual reduction of
$1,668,000 from the Governor's amended budget request.
The subcommittee's recommended budget also includes 15
fewer permanent full time employees than the Governor
requested.
Subcommittee Recommendations
The subcommittee held six meetings with the Department
and reviewed all aspects of the Department of Natural
Resources' budget, including a three-year look back to
review the growth in the Department's budget from FY07
to the FY10 Governor's Amended proposal.
The subcommittee took the following actions:
1. Adopted the FY10 Adjusted Base.
2. Reviewed the increments, decrements, and budget
amendments proposed by the Governor.
3. Reviewed and discussed the significant issues as
outlined in the Legislative Finance Division
Fiscal Analyst's Overview of the Governor's
request, i.e., oil and gas initiatives; North
Latitude Plant Material Center; Geological
Development, Mineral Survey and Volcano
Observatory; statehood entitlement transfers;
fire suppression preparedness; and the Guide
Service Initiative.
4. Reviewed the increments, decrements, and budget
amendments recommended by the House Finance
Subcommittee and passed by the House.
5. Adopted the Governor's proposed amended budget
with the following exceptions:
· Funded Oil and Gas contract auditors ($200.0)
and outside legal ($500.0) positions as one-
time items (OTI).
· Reduced the Petroleum System Integrity
Office's (PSIO) budget request by $261,500.
· Denied the budget request for a Grants
Administrator position and reduced $64,000 in
CIP funding in the Alaska Coastal and Ocean
Management component.
· Funded the Guide Services Initiative, Phase 1
Continued, as a one-time item (OTI).
· Denied the budget request for a seasonal
position for the Chilkoot River Bear Viewing
Area and $55,000 in General Funds in the Parks
Management component.
· Denied the budget request for authorization to
utilize $510,000 in CIP funds for positions in
the Parks and Recreation Access component.
· Approved an unallocated reduction of $109,100
in General Funds in the Personal Services line
item.
· Approved an unallocated reduction of 10
positions from the Department.
· Noted $3.2 million in the Governor's Gas
Pipeline Implementation component reflects a
capital project that was moved to the operating
budget and, as such, does not increase the
budget.
· Noted that the $2.5 million increase in the
Pipeline Coordinator was moved from the
language section to the numbers section and, as
such, does not increase the budget.
· Recommended that the full Senate review the
$2.7 million lapse extension for AGIA
implementation when it is included in the FY09
Supplemental Bill.
· Recommended changing the new component in the
budget entitled "State Coordinator - Gas
Pipeline" to "Gas Pipeline Implementation" and
to replace all references of the former term
with the latter.
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Natural Resources as presented with corresponding
legislative finance reports. There being NO OBJECTION, it
was so ordered.
10:30:16 AM
Senator Huggins presented the Senate Committee
Recommendation for the Department of Military and Veterans
Affairs.
Senator Huggins highlighted the $1.668 million reduction in
the subcommittee's recommendation reflecting fifteen fewer
employees than requested by the governor. The committee
held six separate committee meetings while arriving at a
conclusion. Ten of the recommended positions are
unallocated to the department. The $2.7 million extension
of AGIA will be in the FY09 supplemental bill. He mentioned
a recommended change in the new component of the budget
entitled state coordinator to be changed to gas pipeline
implementation for consistent language.
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Fund 09 Mgt Plan 10 Gov Amd Sen Sub Gov Amd
Source Adj Adj to
Sen Sub
General $11,328,400 $11,276,900 $11,276,900 0.0
Funds
Federal $21,264,600 $22,235,300 $22,235,300 0.0
Funds
Other $12,782,700 $13,005,400 $13,005,400 0.0
Funds
TOTAL $45,375,700 $46,517,600 $46,517,600 0.0
Positions 09 Mgt Plan 10 Gov Amd Sen Sub Gov Amd
Adj Adj to
Sen Sub
PFT 283 283 283 0.0
PPT 2 2 2 0.0
Temp 1 1 1 0.0
TOTAL 286 286 286 0.0
The Budget Subcommittee recommends an operating budget
that authorizes $100,000 more in general funds and 0
fewer employees than the Governor's FY2010 budget
request.
Subcommittee Recommendations
The subcommittee held one joint House/Senate
subcommittee meeting with the Department and took the
following actions:
Reviewed the FY09 Management Plan.
Reviewed the FY10 Adjusted Base.
Reviewed the increments, decrements, and budget
amendments proposed by the Governor.
Reviewed a three-year look-back at budget growth from
FY07 to the Governor's FY10 request.
Reviewed the House Subcommittee report, which adopted
the Governor's request as amended.
Adopted the Governor's request as amended.
The Subcommittee considered the educational benefits
section of the budget, which is an area that has been
a concern to past subcommittees. The $328.5 reduction
is a reduction to the DMVA budget; however, the Guard
tuition funding reappears in the Governor's University
budget request.
The subcommittee also considered and accepted the
Department's rationale for removing the funding
request for the Veterans Cemetery in the Fairbanks
region at this time.
The committee considered the $50.0 General Fund
increment in the Veterans' Services component of the
budget for increasing grants for the Veterans'
Outreach Program.
10:32:14 AM
Lastly, the subcommittee reviewed the $185.2 increase
in the Alaska Youth Military Academy's authority to
receive I/A funding from DEED, due to the anticipated
$100 increase in the Base Student Allocation.
The subcommittee notes that the Department budget has
been relatively flat for the past three years.
Changes in mission and organization have, where
possible, been absorbed by reorganization and
reassignment of personnel where needed.
10:32:41 AM
Senator Olson asked about the status of disaster relief to
handle crisis situations in rural Alaska.
Senator Huggins responded that the National Guard has a
statewide search and rescue mission. He stressed that the
funding capability for the project remains robust and
present in the budget.
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Military and Veterans Affairs as presented with
corresponding legislative finance reports. There being NO
OBJECTION, it was so ordered.
10:34:55 AM
Senator Thomas presented the Senate Committee
Recommendation for the Department of Commerce, Community
and Economic Development.
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Fund Source
FY09 Mgt Plan Rev FY10 Gov Amd+ FY10
Senate Gov to Senate
General Fund 14,997.9 19,495.2
19,361.9 -133.3
Federal 55,091.9 64,592.7
64,592.7 0
Other 102,148.8 103,920.1
71,893.4 -32,026.7
Personnel
PFT 521 525 525
0
PPT 2 2
2 0
Temp 16 12 12
0
Budget Action:
The most significant items in the Governor's request
are:
· Increments to allow agencies to pay for increased
core services charges by other departments and
for revisions to the department's internal cost
allocation plan.
· Continuation of FY09 funding for the Legal
Services Corporation and two grant administrators
in the Division of Community and Regional
Affairs. These were one-time items in FY09 and
are included as increments in the FY 10 budget.
10:36:10 AM
· Continuation of funding for the Alaska Energy
Authority's executive director and program managers
with General Funds. In FY09, these positions were
funded from a capital project entitled "Alaska
Energy Authority Projects and Development of a
Statewide Energy Plan." The Subcommittee believes
the AEA executive director and program management
are operating budget activities, and that billing
them to capital projects creates legal and
administrative difficulties.
· A 57.7 increase in AIDEA funding for the Alaska
Regional Development Organizations (ARDORS) to
provide for a newly created ARDOR.
· A substantial increase in anticipated federal
funding for local communities through Payment in
Lieu of Taxes and National Forest Receipts. The
Payment in Lieu of Taxes increment is 3,673.4 and
the National Forest Receipts increment is 6,300.0.
· Replacement of 1,878.0 of the Alaska Seafood
Marketing Institute's uncollectable federal funds
and program receipts with General Funds.
10:37:15 AM
The Subcommittee did not accept the Governor's request
to substitute General Funds for 1,971.3 in Business
License Receipts that funded the Division of Community
and Regional Affairs. The amount of Business License
Receipts collected in FY10 will decline substantially
due to the reduction in the license fee. The
Subcommittee restored DCRA program funding with 1,838
in General Funds and 133.3 in Business License
Receipts. The Subcommittee anticipates that the use
of 133.3 in Business License Receipts will leave the
department with approximately 400.0 of receipts to
cover the budget in case license revenue declines due
to the economic downturn. Business License revenue is
historically volatile, and the Subcommittee believes
it would be unwise to provide a cushion of less than
400.0.
10:38:11 AM
The Subcommittee recommends full funding of Power Cost
Equalization, but supports elimination of the PCE
Capitalization Fund as an intermediate step in the
flow of funds from the PCE Endowment and the General
Fund, to the department for distribution to utilities.
The Subcommittee concurs with the House recommendation
to route PCE funds directly to the department.
Finally, the Subcommittee recommends that the
Governor's requested wordage be amended to remove old
legislative intent that directed the Alaska Aerospace
Development Corporation to fully pay its portion of
core services and department cost allocations. This
issue has been resolved.
10:38:42 AM
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Commerce, Community and Economic Development as presented
with corresponding legislative finance reports. There being
NO OBJECTION, it was so ordered.
10:39:17 AM
Senator Thomas presented the Senate Committee
Recommendations for the Department of Labor and Workforce
Development.
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
Fund Source
FY09 Mgt Plan Rev FY10 Gov Amd+ FY10
Senate Gov to Senate
General Fund 29,822.8 29,176.8
29,791.8 615.0
Federal 85,866.2 87,638.2
87,638.2 0
Other 56,832.4 60,240.5
60,420.5 180.0
Personnel
PFT 833 825 827
2
PPT 108 115 115
0
Temp 37 23 23
0
BUDGET ACTION:
The Subcommittee adopted the FY 10 Adjusted base, and
then accepted the increments, decrements, fund source
changes and wordage in the Governor's Amended budget,
with the adjustments mentioned below.
The most significant items in the Governor's request
are continuations of one-time items from the FY09
budget as increments to the base, including funding
for the Alaska Construction Academy Training and SAVEC
(Southwest Alaska Vocational and Education Center.)
10:40:15 AM
The Governor requested continuation of funding for
three gas line-related, one-time items in the language
section (section 16) of her bill. Those items are:
Business Services gas line job training oversight and
instruction, the Workforce Investment Board education
skills coordinator, and the Labor Market Information
gas line training program guide and regional workforce
data distribution. The Subcommittee moved partial
funding for both the Business Services increment and
the Workforce Investment Board increment into the
numbers section of the department budget, with the
recommendation that all three items be removed from
the language section, and that the balance of the
Governor's request for these items be funded through
the reappropriation of unexpended FY09 AGIA funding in
the Governor's supplemental request.
10:41:04 AM
This above action deletes $860.0 GF from the bill's
language section, while adding $550.0 GF to the
numbers section of the department budget, for a total
GF reduction to the Governor's budget of $310.0.
The Subcommittee made an additional $25.0 decrement to
Data Processing within the Commissioner and
Administrative Services appropriation, to remove a one
time item from a FY09 fiscal note.
The Subcommittee also added two wage and hour
investigators to the Wage and Hour Administration
allocation, to be funded with $90.0 from the Worker
Safety Fund and $90.0 from the General Fund. This
increment will allow the department to significantly
increase visits to job sites to enforce minimum wage,
child labor and resident hire laws, as well as ensure
that employers have the required workers' compensation
coverage and that they are correctly categorizing
their workers' for workers compensation purposes each
year.
Finally, the Subcommittee recommends that the Senate
Finance Committee reappropriate or extend the lapse
date for the unexpended balance of the FY09
appropriation for Alaska Construction Academy Training
made in section 1, chapter 27 of SLA 2008. This roll-
forward would provide the necessary funding to expand
Construction Academy training in rural Alaska.
10:41:57 AM
Co-Chair Stedman MOVED to ADOPT the FY10 Senate Finance
Committee Operating Subcommittee Report for the Department
of Labor and Workforce Development as presented with
corresponding legislative finance reports. There being NO
OBJECTION, it was so ordered.
CSHB 81 (FIN) was HEARD and HELD in Committee for further
consideration.
10:42:46 AM AT EASE
10:43:58 AM RECONVENED
Co-Chair Hoffman provided members with a proposed committee
substitute, work draft work draft #26-GH1002\W for HB 81
and a proposed committee substitute, work draft #26-
GH1004\S for HB 83 (copies on file).
Mr. Teal explained the HB 83 language is similar to the
House version with the exception of one capital project
placed into language. Typically the House proposes one
project while the Senate removes one project and proposes
all other mental health projects allowing all to be subject
Conference Committee recommendations. The normal capital
budget process undergoes review with Conference Committees
responding to the capital budget recommendations. Section
8, page 18 shows a capital project for an information
technology project.
Mr. Teal informed on HB 81 language changes in Section 11,
Page 61. He explained that the education funding changes
replace the House appropriation of $2 million with $1
million allocated for Pre-K and $1 million targeted to
chronically underperforming school districts. Similarly
there is $1 million in Section C targeted toward
chronically underperforming school districts and head
start. He mentioned Section 21 on Page 67 concerning fund
transfers with the actual change on Page 68 showing $115.9
million of general funds to the debt retirement fund. The
change reflects an error in compiling the House bill.
10:47:20 AM
Mr. Teal discussed Section 25, Page 73 and concerns
regarding shared taxes, specifically commercial passenger
vessel tax in Section C, Page 74. The language was an
oversight. The final change is on Section 27 in the
Constitutional Budget Reserve (CBR).
10:49:31 AM
Mr. Teal reviewed the reverse sweep on Section 27 A, Page
77, dependent on unpaid liability to the CBR, where all
sub-funds of the general fund along with the general fund
itself are swept into the CBR. The money is then replaced
as stated in Section 27 A, Page 77. The section normally
appears each year.
Co-Chair Hoffman asked for the purpose of including the
language in the budget for forward funding of education.
The House did not pass the CBR language, but the other
operating departments are adequately funded in the FY10
budget. He recommended changes be addressed when the bill
is brought for concurrence with the House.
Co-Chair Stedman MOVED to ADOPT a proposed committee
substitute, work draft #26-GH1002\W for HB 81, Bailer,
3/24/09. There being NO OBJECTION, it was so ordered.
Co-Chair Stedman MOVED to ADOPT a proposed committee
substitute, work draft #26-GH1004\S for HB 83 There being
NO OBJECTION, it was so ordered.
CSHB 83 (FIN) was HEARD and HELD in Committee for further
consideration.
10:52:56 AM
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB81 DOA Senate Subcommittee Report.pdf |
SFIN 3/24/2009 9:00:00 AM |
HB 81 |
| Workdraft SenateCSforCSfor HB83(FIN)Version26-GH1004S 032409.pdf |
SFIN 3/24/2009 9:00:00 AM SFIN 3/25/2009 9:00:00 AM SFIN 3/26/2009 9:00:00 AM |
HB 83 |
| WorkdraftSenateCSfor CSforHB81(FIN)Version26-GH1002W 032409.pdf |
SFIN 3/24/2009 9:00:00 AM SFIN 3/25/2009 9:00:00 AM SFIN 3/26/2009 9:00:00 AM |
HB 81 |