Legislature(2009 - 2010)SENATE FINANCE 532

04/15/2009 09:00 AM Senate FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 113 SUPPLEMENTAL/CAPITAL/OTHER APPROPRIATIONS TELECONFERENCED
Heard & Held
+= HB 199 APPROPS: NON-TRANSPORTATION STIMULUS TELECONFERENCED
Moved SCS CSHB 199(FIN) Out of Committee
+ HB 134 CRUISE SHIP WASTEWATER DISCHARGE PERMITS TELECONFERENCED
Heard & Held
+ HB 26 MEDICAID FOR ADULT DENTAL SERVICES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 199(FIN) am                                                                                             
                                                                                                                                
     "An Act making appropriations, including supplemental                                                                      
     appropriations and capital appropriations; amending                                                                        
     appropriations; and providing for an effective date."                                                                      
                                                                                                                                
9:54:12 AM                                                                                                                    
                                                                                                                                
JESSE  KIEHL,  STAFF, SENATE  DISTRICT  B addressed  HB  199,                                                                   
which  appropriates  the non  transportation  stimulus  funds                                                                   
made  available by  the  American Recovery  and  Reinvestment                                                                   
Act.  He  provided  a sectional  analysis.  Section  1  makes                                                                   
appropriations  for  operating  expenses  of  government  and                                                                   
operating grants made to a number  of school districts. These                                                                   
items initially  required answers from the  governor. Section                                                                   
1 totals approximately $118 million  in federal funds with an                                                                   
additional  $40 thousand  of general  funds matching  federal                                                                   
funds  for  health  information   technology.  He  introduced                                                                   
Section  4  containing  items   that  the  governor  accepted                                                                   
without   reservation.   The  committee   as   well  as   its                                                                   
counterpart in the other body  agreed on capital projects and                                                                   
grants.                                                                                                                         
                                                                                                                                
9:57:21 AM                                                                                                                    
                                                                                                                                
Mr. Kiehl  stated that  Section 4  addresses clean  water and                                                                   
storage tanks as well as forestry,  emergency shelter grants,                                                                   
and low income  housing. He mentioned capital  appropriations                                                                   
for the  University of Alaska's  research vessel  through the                                                                   
stimulus act. Section 4 totals  approximately $231 million in                                                                   
federal authority.                                                                                                              
                                                                                                                                
9:58:30 AM                                                                                                                    
                                                                                                                                
Mr. Kiehl  reviewed Section  7 containing  capital items  and                                                                   
grants including  the community development block  grants for                                                                   
diesel emission  reduction programs.  He noted that  one item                                                                   
in   Section  7   from   the  Department   of   Environmental                                                                   
Conservation   (DEC)   requires   an   additional   form   of                                                                   
legislation.                                                                                                                    
                                                                                                                                
9:59:23 AM                                                                                                                    
                                                                                                                                
Mr. Kiehl addressed Section 10  of the bill, which states the                                                                   
legislature's  belief that  the money  is available  one time                                                                   
only and general funds will not  be forthcoming. He noted the                                                                   
legislative  addition  of Section  11,  Page  17 adding  $200                                                                   
thousand of general  funds appropriated to the  Department of                                                                   
Administration  (DOA) for oversight  accounting. The  federal                                                                   
stimulus law requires a great  deal of accountability for the                                                                   
appropriated  funds.   The  federal  government   is  working                                                                   
closely with the legislature's audit division.                                                                                  
                                                                                                                                
10:00:48 AM                                                                                                                   
                                                                                                                                
Mr. Kiehl  reviewed Section  12, and  the receipt of  federal                                                                   
Medicaid  funds should  the match rate  increase. Section  13                                                                   
addresses   additional  federal   funds   available  to   the                                                                   
Department  of Revenue  (DOR) for  child support  collection.                                                                   
The program is  a highly efficient way to use  federal money.                                                                   
The  program was  set  to end,  yet  will continue  with  the                                                                   
stimulus act.                                                                                                                   
                                                                                                                                
Mr.  Kiehl  addressed  Section   14  as  the  largest  single                                                                   
appropriation.   Section    14   appropriates    the   fiscal                                                                   
stabilization  funds existing  in two  categories. This  bill                                                                   
appropriates  $20.7  million  to  Alaska  municipalities  for                                                                   
revenue sharing.                                                                                                                
                                                                                                                                
10:02:05 AM                                                                                                                   
                                                                                                                                
Mr. Kiehl introduced Line 8, Page  19, which appropriates the                                                                   
fiscal   stabilization  Part   A  funds,   $93  million   for                                                                   
education.  He concluded  that  the administration  advocates                                                                   
for  the spending  of stimulus  money only  on items  without                                                                   
ongoing obligations.  He stated  that the governor  will take                                                                   
great care with these funds.                                                                                                    
                                                                                                                                
10:03:43 AM                                                                                                                   
                                                                                                                                
Co-Chair  Hoffman  asked about  the  education  funds of  $93                                                                   
million  and the specific  language required  for the  school                                                                   
districts  agreeing that  the funding  is available  one time                                                                   
only.                                                                                                                           
                                                                                                                                
Mr. Kiehl  answered that  the federal  stimulus law  does not                                                                   
grant power to  require such a signed document.  He noted the                                                                   
legislative  intent   sections,  which  give   Department  of                                                                   
Education  and Early  Development (DEED)  the instruction  as                                                                   
seen on  Page 16,  Line 27. The  legislature's intent  is for                                                                   
DEED  to   ensure  that   the  individual  school   districts                                                                   
understand the nature of the funding.                                                                                           
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT  Amendment 1, 26-GH1260\PA.1,                                                                   
Kane, 4/11/09:  Co-Chair Stedman OBJECTED for  the purpose of                                                                   
discussion.                                                                                                                     
                                                                                                                                
     Page 19, line11:                                                                                                           
                                                                                                                                
          Delete "sec. 144002(a)"                                                                                               
          Insert "sec. 14002(a)(3)"                                                                                             
                                                                                                                                
10:05:35 AM                                                                                                                   
                                                                                                                                
Mr.  Kiehl  explained   Amendment  1.  He  opined   that  the                                                                   
amendment  settles  a  large  question.  He  noted  that  the                                                                   
amendment  takes  effect  on  Page 19,  Line  11  and  simply                                                                   
tightens  the reference  to the  federal  stimulus law  under                                                                   
which  the  $93   million  is  distributed.   He  noted  that                                                                   
Amendment  1  sets  the  policy  call  preferring  the  state                                                                   
distributes  the  funds  to school  districts  as  additional                                                                   
funds using the  same proportions as Title 1.  Title 1 refers                                                                   
to the  elementary and  secondary education  act, which  is a                                                                   
reasonable   method  of  statewide   fund  distribution.   He                                                                   
mentioned  the  lack  of  provision   in  Alaska's  education                                                                   
funding formula  to offset Title  1 money. With  the adoption                                                                   
of  Amendment  1, the  $93  million  will be  distributed  to                                                                   
school districts as additional monies.                                                                                          
                                                                                                                                
Co-Chair  Stedman  WITHDREW  his OBJECTION.  There  being  NO                                                                   
OBJECTION, Amendment 1 was ADOPTED.                                                                                             
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT  Amendment 2, 26-GH1260\PA.3,                                                                   
Kane, 4/14/09: Co-Chair Stedman OBJECTED for discussion.                                                                        
                                                                                                                                
     Page 7, line 26, following "2009":                                                                                         
                                                                                                                                
          Insert "Entitlement Fund and"                                                                                         
                                                                                                                                
Mr. Kiehl  described Amendment  2. He noted  Page 7,  Line 26                                                                   
and a $1  million appropriation of federal  receipt authority                                                                   
placed  in  the  office of  the  governor  reading  "American                                                                   
Recovery and Reinvestment Act."                                                                                                 
                                                                                                                                
10:09:13 AM                                                                                                                   
                                                                                                                                
Mr.  Kiehl  addressed  the  category   of  entitlement  funds                                                                   
applying most  importantly to transportation funding.  In the                                                                   
event that  the state receives  additional money in  the form                                                                   
of an  entitlement, this amendment  allows the state  to take                                                                   
it.  Co-Chair  Stedman  informed  that  the  amendment  is  a                                                                   
technical  amendment to this  amendment by  adding an  "s" to                                                                   
the end of "fund."                                                                                                              
                                                                                                                                
Co-Chair  Stedman  MOVED  to  AMEND  Amendment  2  by  making                                                                   
entitlement fund plural.                                                                                                        
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  OBJECTION.   There being  NO                                                                   
OBJECTION, Amendment 2 was ADOPTED.                                                                                             
                                                                                                                                
10:10:29 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT  Amendment 3, 26-GH1260\PA.2,                                                                   
Kane, 4/14/09: Co-Chair Stedman OBJECTED for discussion.                                                                        
                                                                                                                                
     Page 12, line 10:                                                                                                          
                                                                                                                                
          Delete "679,900"                                                                                                      
          Insert "679,936"                                                                                                      
                                                                                                                                
     Page 12, line 13:                                                                                                          
                                                                                                                                
          Delete "3,960,000" in both places                                                                                     
          Insert "3,962,565" in both places                                                                                     
                                                                                                                                
     Page 14, line 5:                                                                                                           
                                                                                                                                
          Delete "4,639,900:                                                                                                    
          Insert "4,642,501:                                                                                                    
                                                                                                                                
     Page 14, line 13:                                                                                                          
                                                                                                                                
          Delete "$63,262,600"                                                                                                  
          Insert "$63,265,201"                                                                                                  
                                                                                                                                
     Page 15, line 7:                                                                                                           
                                                                                                                                
          Delete "63,262,600"                                                                                                   
          Insert "63,265,201"                                                                                                   
                                                                                                                                
Mr. Kiehl  described Amendment  3 as  a housekeeping  effort,                                                                   
which simply updates dollar amounts.                                                                                            
                                                                                                                                
Co-Chair  Stedman  WITHDREW  his OBJECTION.  There  being  NO                                                                   
OBJECTION, Amendment 3 was ADOPTED.                                                                                             
                                                                                                                                
10:12:57 AM  AT EASE                                                                                                          
10:14:26 AM  RECONVENED                                                                                                       
                                                                                                                                
KAREN  REHFELD, DIRECTOR,  OFFICE OF  MANAGEMENT AND  BUDGET,                                                                   
OFFICE  OF  THE  GOVERNOR,  expressed  appreciation  for  the                                                                   
efforts  of both  bodies in  reviewing  the federal  stimulus                                                                   
bill. She  agreed that the  policy questions were  important.                                                                   
She  noted  that   it  is  allowable  to  make   use  of  the                                                                   
stabilization funds for the school  funding formula increases                                                                   
based on  the timing and  statutory language of  the American                                                                   
Recovery  and Reinvestment  Act.  Given  the current  revenue                                                                   
shortfall,  which was not  the case  when the school  funding                                                                   
bill  was  passed, it  is  appropriate  to bring  the  policy                                                                   
questions   forward.  She  felt   the  recommendations   were                                                                   
appropriate  for consideration.  Another policy decision  was                                                                   
chosen as indicated by the amendment proposed.                                                                                  
                                                                                                                                
10:16:20 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman clarified that  the previous finance meeting                                                                   
included recommended administrative  amendments that were not                                                                   
brought forward. (Copy on File)  He apologized to Ms. Rehfeld                                                                   
for  falling out  of  order  yesterday. He  acknowledged  Ms.                                                                   
Rehfeld  for  the  amount  of   effort  she  contributes.  He                                                                   
commended Ms. Rehfeld's staff  for their work on the stimulus                                                                   
bill policy discussions.                                                                                                        
                                                                                                                                
Co-Chair  Hoffman MOVED  to report  HB 199  out of  Committee                                                                   
with individual  recommendations and the  accompanying fiscal                                                                   
note. There being NO OBJECTION, it was so ordered.                                                                              
                                                                                                                                
CSHB NO.  199.(FIN) am was REPORTED  out of Committee  with a                                                                   
"do pass" recommendation.                                                                                                       
                                                                                                                                
10:18:13 AM  AT EASE                                                                                                          
10:21:42 AM  REONVENED                                                                                                        
                                                                                                                                

Document Name Date/Time Subjects
ACA backup.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
4 9 9 Supplemental.pdf SFIN 4/15/2009 9:00:00 AM
HB 113
HB026 Background Materials.pdf SFIN 4/15/2009 9:00:00 AM
HB 26
HB026 Sectional Analysis.pdf SFIN 4/15/2009 9:00:00 AM
HB 26
HB026 Sponsor Statement.pdf SFIN 4/15/2009 9:00:00 AM
HB 26
HB026 Testimony.pdf SFIN 4/15/2009 9:00:00 AM
HB 26
Cruise Ship Discharge Assessment Report.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
Governor's reponse to Harris 19 March 2009.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
Harris letter to governor 11 March 2009.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
Hearing Request and Sponsor Statement.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
HB134 Letters.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
HB 134 Amendment 1 SFC.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
SCS CSHB 134 (FIN) Version D.pdf SFIN 4/15/2009 9:00:00 AM
HB 134
SFC HB 199 Amendment 1 PA 1.pdf SFIN 4/15/2009 9:00:00 AM
HB 199
SFC HB 199 Amendment 2 PA 3.pdf SFIN 4/15/2009 9:00:00 AM
HB 199
SFC HB 199 Amendment 3 PA.2.pdf SFIN 4/15/2009 9:00:00 AM
HB 199
Timeline by DEC.pdf SFIN 4/15/2009 9:00:00 AM
HB 134