Legislature(2009 - 2010)SENATE FINANCE 532
03/26/2010 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB300 || HB302 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 92 | TELECONFERENCED | |
| + | SB 264 | TELECONFERENCED | |
| + | SB 234 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 300 | TELECONFERENCED | |
| += | HB 302 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 26, 2010
9:09 a.m.
9:09:59 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee meeting to
order at 9:09 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None.
ALSO PRESENT
Tim Grussendorf, Staff, Co-Chair Hoffman; David Teal, Director,
Legislative Finance Division; Karen Rehfeld, Director, Office of
Management and Budget, Office of the Governor.
SUMMARY
HB 300 APPROP: OPERATING BUDGET/LOANS/FUNDS
Senate CS for CSHB 300 (FIN) was REPORTED out of
Committee with a "do pass" recommendation.
HB 302 APPROP: MENTAL HEALTH BUDGET
Senate CS for CSHB 302 (FIN) was REPORTED out of
Committee with a "do pass" recommendation.
CS FOR HOUSE BILL NO. 300(FIN)
"An Act making appropriations for the operating and loan program
expenses of state government, for certain programs, and to
capitalize funds; and providing for an effective date."
CS FOR HOUSE BILL NO. 302(FIN)
"An Act making appropriations for the operating and cap
expenses of the state's integrated comprehensive m
health program; and providing for an effective date."
9:10:09 AM
Co-Chair Hoffman discussed housekeeping.
Co-Chair Stedman MOVED to ADOPT Amendment 1, 26-GH2823\U.5,
Baily, 3/25/10:
DEPARTMENT: Various-as shown in the table below
ADD: $17,055.3 UGF (1004) Unrestricted general
funds
DELETE: $15,000.0 UGF (1004) Unrestricted general
funds (estimate)
Amount
Added to
AgencyBase
Department of Administration 22.8
Department of Corrections 2,655.3
Department of Education and Early Development 57.2
Department of Environmental Conservation 37.8
Department of Fish and Game 77.7
Department of Health and Social Services 600.0
Department of Labor and Workforce Development 35.3
Department of Military and Veterans Affairs 327.3
Department of Natural Resources 68.0
Department of Public Safety 273.9
Department of Transportation & Public Facilities 11,250.0
University of Alaska 1,650.0
Total Unrestricted General (UGF) 17,055.3
EXPLANATION: This amendment revises the a
appropriated under the "fuel trigger" provisions of sec
22 by increasing the trigger start point from $36 to
dollars. This change reduces the projected a
appropriations for high fuel costs by $15 million annua
at any oil price above $51. The reduction appears in b
reports as a revised estimate of the impact of section
The actual impact will depend upon fuel prices during FY11.
The amendment also distributes $15 million to var
agencies to offset the reduction in funding through
trigger mechanism. That $15 million is distributed
agencies in the same manner and amount as occurred in
under the August 1 trigger mechanism. In additio
$2,053,300 is appropriated to the Department of Corrections
in order to align available funding for utilities
documented expenditures. The $17.05 million will be added
agency base budgets.
The intent of the amendment is to shift funding
contingency (trigger) to base in recognition of sustain
high oil prices. The amendment reduces the projected tri
appropriations from $42 million to $27 million.
Page 68, line 20:
Delete "$35"
Insert "$50"
Page 68, line 22, following "section":
Insert ", estimated to be $13,500,000,"
Page 68, line 26:
Delete "$35"
Insert "$50"
Page 68, line 28, following "section":
Insert ", estimated to be $13,500,000,"
Page 69, line 6, through page 70, line 30:
Delete all material and insert:
"$90 or more $20,000,000
89 19,500,000
88 19,000,000
87 18,500,000
86 18,000,000
85 17,500,000
84 17,000,000
83 16,500,000
82 16,000,000
81 15,500,000
80 15,000,000
79 14,500,000
78 14,000,000
77 13,500,000
76 13,000,000
75 12,500,000
74 12,000,000
73 11,500,000
72 11,000,000
71 10,500,000
70 10,000,000
69 9,500,000
68 9,000,000
67 8,500,000
66 8,000,000
65 7,500,000
64 7,000,000
63 6,500,000
62 6,000,000
61 5,500,000
60 5,000,000
59 4,500,000
58 4,000,000
57 3,500,000
56 3,000,000
55 2,500,000
54 2,000,000
53 1,500,000
52 1,000,000
51 500,000
50 0"
Co-Chair Hoffman OBJECTED for the purpose of discussion.
TIM GRUSSENDORF, STAFF, CO-CHAIR HOFFMAN, informed the committe
that the "fuel trigger" used in the amendment was the same
that had been adopted in the companion bill passed in the
body.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman MOVED to ADOPT Amendment 2:
STATEWIDE GENERAL FUND TRAVEL REDUCTION
Senate House
10% Amendment Amendment less
ReductionReductionReductionHouse
DEPARTMENT
Administration (112.0) ( 112.0) ( 112.0) -
Commerce, Community & Econ Dev (135.2) ( 135.2) ( 135.2)
Corrections (197.4) - ( 197.4) 19
Education & Early Dev (68.4) ( 27.4) ( 68.4) 41.0
Environmental Conservation (115.9) ( 115.9) ( 115.9) -
Fish and Game (191.5) ( 174.3) ( 191.5) 17.2
Governor (107.9) ( 107.9) ( 107.9) -
Health & Social Services (311.0) ( 311.0) ( 311.0) -
Labor & Workforce Dev (66.4) ( 66.4) ( 66.4) -
Law (118.4) ( 58.2) ( 118.4) 60.2
Military & Veterans Affairs (17.2) ( 17.2) ( 17.2) -
Natural Resources (192.2) ( 192.2) ( 192.2) -
Public Safety (509.5) -
Revenue (48.1) ( 48.1) ( 48.1) -
Transportation (422.9) ( 422.9) ( 422.9) -
University of Alaska (1,496.8) -
Alaska Court System (171.9) - ( 171.9) 17
Legislature (387.7) ( 387.7) ( 387.7) -
TOTAL (4,670.4) (2,176.4) (2,664.1) 4 87.7
Explanation: This amendment reduces travel authorization
allocations with budgeted travel and with general funds. Be
the budget does not identify line items by fund source,
following method was used to determine the amount of travel
is reduced in each allocation.
Ratio of each general fund code
10% of the FY09
(UGF and DGF) in the House CS Amount of the
actual travel
X=
to the total FY11 allocation's travel reduction
expenditures
funding
Departments exempted from the Senate's travel reduction:
Corrections, University, Public Safety and the Alaska Court
System.
Revisions to the across-the-board travel reduction were
implemented in the following agencies:
· Education and Early Development: A 50 percent reduction was
taken from the Senate CS travel line in the Executive
Administration allocation. All other allocations were held
harmless.
· Law: Funding for witness travel (totaling $60.2) was not
cut.
Fish and Game Boards and Advisory Committees: Exempt
for members of the Board of Fisheries and the Board of
to attend meetings; and for travel associated with
advisory committee meetings and participation of advi
committee representatives at the Board of Fisheries an
Board of Game meetings.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Grussendorf explained that the amendment would reduce t
authority in allocations with budgeted travel and with gen
funds.
Senator Egan queried whether the $20,000 reduction in
Department of Education budget would restrict travel
students that attended Mt. Edgecumbe High School.
Grussendorf replied no.
9:13:07 AM
Co-Chair Hoffman WITHDREW his OBJECTION. There being
OBJECTION, it was so ordered.
Co-Chair Stedman MOVED to ADOPT Amendment 3, 26-GH2823\U.8,
Baily, 3/25/10:
DEPARTMENT: Corrections
APPROPRIATION: Population Management
ALLOCATION: Institution Director's Office
DELETE: 8,000.0 General Funds (1004)
100.0 Federal Receipts (1002)
EXPLANATION: The FY10 supplemental bill includes FY11
health insurance, and geographical differential increase
for the Alaska Correctional Officers Association (
Bargaining Unit. This amendment removes the duplicated
appropriation from the operating bill.
DEPARTMENT: Corrections
APPROPRIATION: Inmate Health Care
INSERT INTENT: It is the intent of the legislature tha
Department of Corrections develop and implement
containment strategies regarding the provision of h
care, and that the Department report results of
efforts to the legislature by January 31, 2011.
DEPARTMENT: Health and Social Services
DELETE: Intent language at the department level
Sec. 1, Page 18, Lines 9-11 SCS CSHB
300(FIN)
Sec. 1, Page 4, Lines 23-25 SCS CSHB
302(FIN)
It is the intent of the legislature that the Department
of Health and Social Services continue and enhance
efforts to reduce fraud by both providers
beneficiaries of the Medicaid program.
EXPLANATION: Intent language at the department level
duplicated. This amendment removes the duplicated i
language from the Senate Operating and Mental Health bills.
DEPARTMENT: Health and Social Services
APPROPRIATION: Community Initiative Matching Grants
ALLOCATION: Community Initiative Matching Grants
DELETE: $250.0 General Funds (1004)
APPROPRIATION: Human Services Community Matching Grants
ALLOCATION: Human Services Community Matching Grants
ADD: $250.0 General Funds (1004)
EXPLANATION: Due to an error, funds were added to the
grant program. This amendment corrects that error. The
are intended for the Human Services Community Matching
program.
DEPARTMENT: Law
APPROPRIATION: Civil Division
ALLOCATION: BP Corrosion
Place the BP Corrosion allocation in a sepa
appropriation.
EXPLANATION: Funding for litigation regarding oil pip
corrosion has been in a separate appropriation in
years in order to prevent the funding from being used
other purposes. The Department requested that the funding
moved to an allocation within the Civil Division.
amendment matches the House structure-retaining the separ
appropriation within the Department of Law.
DEPARTMENT: Fish and Game
APPROPRIATION: Sport Fisheries
ALLOCATION: Sport Fisheries
TRANSFER IN: 342.6 General Funds (1004)
APPROPRIATION: Commercial Fisheries
ALLOCATION: Central Region Fisheries Management
TRANSFER OUT: 342.6 General Funds (1004)
EXPLANATION: The Department of Fish and Game has indica
that two projects included in the Senate Subcommittee b
need to be moved from Central Region Fisheries Management
Sport Fisheries. These projects are the Alexander Creek
Control (127.6) and the Susitna River Fish Pas
Restoration (215.0).
DEPARTMENT: Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Central Region Fisheries Management
DELETE: 75.0 General Funds (1004)
EXPLANATION: This amendment removes 75.0 from
operating budget for the following two projects: the Kas
River Smolt out migration counts (25.0); and the Big
Smolt outmigration count (50.0). Because funding for
projects is needed before July 1, 2010, these projects
be included in the FY10 supplemental budget.
DEPARTMENT: University of Alaska
APPROPRIATION: Budget Reductions/Additions
ALLOCATION : Budget Reductions/Additions - Systemwide
ADD INTENT: It is the intent of the legislature that
University provide a report to
legislature by February 1, 2011
specifies the amount of money transferred
from and to each allocation in reference
the 3% transfer of federal receipts
unrestricted general funds, and university
receipts into the Budget Reductions/Additions
- Systemwide appropriation.
EXPLANATION:
A total of $22.5 million (3% of federal receipt
unrestricted general funds, and university receipts)
transferred out of University of Alaska allocations (ex
for the Small Business Development Center) and transferred
into the Budget Reductions/Additions - Systemwide allocation
to increase flexibility while retaining multi
appropriations. As needed, these funds may be transferred
out to various appropriations/allocations as progr
develop and budgets are solidified in the FY11 Management
Plan.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Grussendorf explained the amendment. He said that $8 mil
had been removed from the Department of Corrections for
contracts that had been previously discussed in committee,
placing it in the supplemental budget. The second item rel
to corrections was inmate healthcare. The intent langu
requested that the department review options to reduce the
of healthcare. The third change, for the Department of H
and Social Services (HESS), was duplicate intent language
was pulled. Also related to HESS was the Community Initiative
Matching Grants, which was an error requiring a change of
title that the money would be allocated under.
9:14:49 AM AT EASE
9:15:42 AM RECONVENED
Mr. Grussendorf continued with Amendment 3. The next amendmen
fell under the Department of Law and placed the Bri
Petroleum (BP) Corrosion allocation in a separate appropriation.
He continued through the list. He continued to the Department
Fish and Game transfer. He stated that the money had
misplaced by the subcommittee, the amendment corrected
mistake. The next change was the reduction of $75,000 for
Kasilof River Smolt project and the Big Lake Smolt outmigration
count. Funding for he projects would be moved to
supplemental. The next change requested the tracking of
percent University of Alaska money from the systemwide fund.
continued with the Department of Natural Resources. The inter
earnings on the Cook Inlet Energy bond would remain with
bonds.
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION, explaine
that the next change would change the date on which a r
from the Office of Budget and Management report on perso
service transfers would be due from August 1, to October 1.
Page 61, line 23:
Delete "August 1"
Insert "October 1"
Page 61, line 25, following "2011.":
Insert "The report submitted on October 1, 2011, should
include transfers that occur as a result of the
reappropriation of operating appropriations for the fiscal
year ending June 30, 2011."
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman MOVED to ADOPT Amendment 4:
DELETE ENTIRE LANGUAGE SECTION 19. GAS PIPELINE
DEVELOPMENT. (page 8, lines 8-24)
Explanation: Replace Governor's Oil and Gas
Language appropriations with the following
numbers in Section 1 of the bill.
Gov House Tota
Agency Allocation Transaction Request House Contingent House Se
AOGCC AK Oil & Gas Conservation AOGCC Gasline Funding 1,150.9 -
Comm
Governor AK Resources Marketing and In-State Natural Gas Pipeline 6,500.0 -
Development Development
LawOil, Gas and MiningOutside Counsel and Experts 2 ,500.0 7 50.0 1 ,750.0 2 ,500.0 2 ,500.0
DNRGas Pipeline ImplementationFinancial Assessments and Modeling 2 ,300.0 6 90.0 1 ,610.
DNRGas Pipeline ImplementationOutreach and Public Education 4 77.5 1 43.3 3 34.3 4 77.5 4 77
DNRGas Pipeline ImplementationProfessional and Support Staff 1 ,440.0 4 32.0 1 ,008.0 1 ,440.0 1 ,440.0
DORTax DivisionAGIA Info Reporting System 3 00.0 1 50.0 - 1 50.0 3 00.0
DORTax DivisionFour Commercial Analyst Positions 8 00.0 - - - 8 00.0
DORNatural Gas CommercializationFiscal Systems Analysis 1 ,500.0 4 15.0 1 ,085.0 1 ,500.0 1 ,500.0
DORNatural Gas CommercializationAGIA Fund Audit 5 0.0 5 0.0 - 5 0.0 5 0.0
TOTAL
1 7,018.4 2 ,630.3 5 ,787.3 8
DEPARTMENT: Governor
APPROPRIATION: Executive Operations
ALLOCATION: AK Resources Marketing and Development
ADD: $6,500.0 General Funds (1004) - IncOTI
Explanation: To continue work related to the
development of an in-state natural gas pipeline.
DEPARTMENT: Law
APPROPRIATION: Civil Division
ALLOCATION: Oil, Gas, and Mining
ADD: $2,500.0 General Funds (1004) - IncOTI
Explanation: Legal Support
DEPARTMENT: Natural Resources
APPROPRIATION: Resource Development
ALLOCATION: Gas Pipeline Implementation
ADD: 4,217.5 General Funds (1004) - IncOTI
Four Permanent Full Time Positions
Explanation: This funding will pay for professional and
support staff for capacity ($1,440.0 & 4 pcns) and for
AGIA implementation ($2,777.5).
DEPARTMENT: Revenue
APPROPRIATION: Administration and Support
ALLOCATION: Natural Gas Commercialization
ADD: $1,500.0 General Funds (1004) - IncOTI
Explanation: Contractual fiscal systems analysis
APPROPRIATION: Taxation and Treasury
ALLOCATION: Tax Division
ADD: $300.0 General Funds (1004) - IncOTI
Explanation: AGIA information reporting syst
development
APPROPRIATION: Taxation and Treasury
ALLOCATION: Tax Division
ADD: $800.0 General Funds (1004) - Inc
Four Permanent Full Time Positions
Explanation: Four Commercial Analyst positions.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Grussendorf explained that the amendment removed
oil and gas numbers from language and relocated them in
numbers section of the legislation. The governor's
requested amounts had been retained and moved to
numbers section with the exception of the allocation
the Alaska Oil and Gas Conservation Commission.
9:19:26 AM
Co-Chair Stedman commented that it was proper budgetary
practice when managing an issue of such magnitude that
not be buried in the language section, rather placed
numeric format for easy recognition.
DepartmentPositions
Teaching and Learning
Support/Student and School Health & Personal Safety
AchievementPrevention Coordinator
Education & Early Development1200.0
Behavioral Health/Behavioral
Health GrantsFamily Wellness Warriors Initiative
Health & Social Services400.0
Behavioral Health/Community
Action, Prevention, & Multi-disciplinary Rural Community
Intervention GrantsPilot Project
Health & Social Services1,350.0
Behavioral Health/Behavioral Trauma-Informed Training for
Health GrantsBehavioral Health Providers
Health & Social Services200.0
Children's Services/Family Children's Advocacy Center
PreservationExpansion
Health & Social Services40.0
Batterer's Intervention Evaluation
and Investigation of Evidence
Domestic Violence & Sexual
Based Practice -
Assault/Domestic Violence &
Sexual Assaultone time funding
Public Safety100.0
Domestic Violence & Sexual
Assault/Domestic Violence & Planning Grants, Victimization
Sexual AssaultStudy & Evaluation
Public Safety350.0
Domestic Violence & Sexual
Assault/Domestic Violence & Universal Public Education
Sexual AssaultMarketing Campaign
Public Safety300.0
Domestic Violence & Sexual
Assault/Domestic Violence &
Sexual AssaultPro-Bono Attorney Clearinghouse
Public Safety60.0
Total13,000.0
up (over a 10-year period) prevention, victims'
services, investigations and prosecutions
significantly reduce the incidence of these crimes.
A permanent, full-time, policy-level position
coordinate the related activities of multiple stat
agencies and nonprofits is a central element of
initiative. That position is included in version U
the bill, so is not part of this amendment.
DEPARTMENT: Department of Education &
Development
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Student and School Achievement
ADD: $200.0 GF 1004 and 1 PFT
EXPLANATION: Health & Personal Safety Prevention
Coordinator - This position within the Department
Education and Early Development will work
partnership with the Council on Domestic Violence
Sexual Assault to establish guidelines for school-
based health and personal safety education programs.
In addition, this position will work with school
districts across Alaska to encourage and support thei
adoption of school-based health and personal safety
education programs.
DEPARTMENT: Department of Health & Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
ADD: $400.0 GF 1004
EXPLANATION: Family Wellness Warriors Initiative
(FWWI) - This funding will be used to implement
intervention strategies (developed by Southcentral
Foundation, FWWI) in Dillingham and Bethel. FWWI is
movement that brings together leaders of the Alaska
Native Community, the Faith community, regional
corporations and agencies, health care providers
others to help restore wellness to the Alaska Native
community; with special emphasis on addressing
forms of family violence.
ALLOCATION: Community Action, Prevention,
Intervention Grants
ADD: $1,350.0 GF 1004
EXPLANATION: Multi-disciplinary Rural Community P
Project - This initiative will identify a ru
community interested in developing a model multi-
disciplinary approach addressing DV/SA from a broa
community perspective. The pilot project will use
planning process such as the Strategic Prevention
Framework to conduct a community assessment and
review/assessment of available and missing community
resources. Based on the first two assessments,
funding will be used to develop a plan for addressing
DV/SA in a comprehensive manner, implement identified
evidence-based strategies and evaluate thes
strategies through measurable outcomes.
ALLOCATION: Behavioral Health Grants
ADD: $200.0 GF 1004
EXPLANATION: Trauma-Informed Training for Behavioral
Health Providers -
Trauma is recognized as a significant factor in a wi
range of health, behavioral health and social problems
including heart disease, cancer, chronic lung disease,
mental health and substance abuse disorders, violence
victimization and perpetration, self-injury,
homelessness, prostitution and delinquency
criminal behavior. This initiative will implement
specialized trauma-informed curriculum to assure th
community-based behavioral health providers integrate
an understanding of trauma into their programs
therapeutic approaches.
APPROPRIATION: Children's Services
ALLOCATION: Family Preservation
ADD: $40.0 GF 1004
EXPLANATION: Children's Advocacy Center Expansion
These funds will assist the community of Kodiak
develop a Children's Advocacy Center, which will
children and families impacted by child sexual
assault/abuse.
DEPARTMENT: Department of Public Safety
APPROPRIATION: Domestic Violence and Sexual Assault
ALLOCATION: Domestic Violence and Sexual Assault
ADD: $100.0 GF 1004 one time funding
EXPLANATION: Batterer's Intervention Evaluation
Investigation of Evidence Based Practice - Recognizing
the need for improved attention and service
individuals who perpetrate domestic violence against
another person, this component will review current
Batterer's Intervention Programs (BIP) and research
national evidence-based programs and practices th
are being used in other states. Through th
research, recommendations will be made for improving
Alaska's outcomes for perpetrators of DV/SA.
ALLOCATION: Domestic Violence and Sexual Assault
ADD: $350.0 GF 1004
EXPLANATION: Planning, Victimization Study
Evaluation - A portion of the funds will be available
to the DVSA Coordinator for planning. Remaining fund
will be used in partnership with the UAA Alaska
Justice Center to construct a process to collect da
to establish baseline rate of domestic violence
Alaska. Funding will also be used to design
conduct an evaluation of the success of the DV/S
Initiative.
ALLOCATION: Domestic Violence and Sexual Assault
ADD: $300.0 GF 1004
EXPLANATION: Universal Public Education Marketing
Campaign - This funding will be used to develop
implement a strategy for changing public perception
(knowledge, attitudes, beliefs and behaviors) related
to domestic violence and sexual assault via
universal, multi-strategy public education campaign
using print, radio, TV and internet.
ALLOCATION: Domestic Violence and Sexual Assault
ADD: $60.0 GF 1004
EXPLANATION: Pro-Bono Attorney Clearinghouse -
funding will contribute to the existing successful
Legal Advocacy Project Pro Bono Program of the Alaska
Network on Domestic Violence and Sexual Assault
establishing a clearinghouse for attorneys across
Alaska who want to assist indigent victims with lega
issues, mentor less experienced attorneys who ha
agreed to take a case, answer the legal information
and referral hotline, and assist with legal research.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Grussendorf explained that the amendment was the firs
step in a domestic violence prevention initiative.
amendment married the allocations to the departments th
would be involved in the initiative.
Co-Chair Hoffman clarified that the amendment took
discretion away from the governor and gave it to
intended departments.
Senator Ellis asked if there were other things that
other body included in initiative that the committee
not or vice-versa.
Mr. Teal responded that there were no differences othe
than the allocation to the departments; the total amount
remained the same. What was not in the amendment was
$200,000 for the coordinator.
Co-Chair Hoffman WITHDREW his OBJECTION. There being
OBJECTION, it was so ordered.
Co-Chair Stedman MOVED to ADOPT Amendment 6:
DEPARTMENT: Health and Social Services
APPROPRIATION: Departmental Support Services
ALLOCATION: Medicaid School Based Claims
DELETE: $5,543,800 Federal Receipts (1002)
ADD: Intent at the allocation level:
It is the intent of the legislature that
Department explain the Medicaid school based clai
program to all school districts in Alaska
encourage them to participate in the program.
ADD: language section on page 2
EXPLANATION: This amendment addresses problems
associated with federal receipt authority that has be
used to "refinance" various programs (by spreading
anticipated federal reimbursement for Medicaid school
based claims to those programs, replacing general
funds). The federal revenue failed to materialize,
causing ratifications amounting to several million
dollars of general funds.
The reimbursement amounts are unrestricted federal
funds that should not be mixed with regular federal
receipts. The receipts will be coded as unrestricted
federal receipts (code 1188) rather than as regular
federal receipts (code 1002). Although the funds
unrestricted, the federal government strongly suggests
that the money go to K-12 education.
The amendment removes $5,543,800 in restricted federal
receipts from the Medicaid School Based Claims
allocation and appropriates the funding in the sa
amount with unrestricted federal receipts.
Language sections will appropriate the amount received
for reimbursement of Medicaid School Based Claims,
estimated to be $5,543,800, as follows:
· $215,000 for program operating costs;
· An estimated $2.7 million to school districts
participating in the program; and
· An estimated $2.7 million to the K-12 foundation
program for distribution to all school districts
via the foundation formula.
The fiscal impact of the amendment includes replacing
$2.7 million of general funds transferred from
Public Education Fund to the K-12 program with thes
federal receipts, thereby reducing general fu
expenditures by $2.7 million. Although the use
federal receipts in K-12 would allow a reduction of
general fund deposit to the Public Education Fund, th
step is not taken in this amendment.
Page 65, following line 22:
Insert a new subsection to read:
"(c) The amount of federal receipts received
during the fiscal year ending June 30, 2011,
reimbursement for school-based Medicaid claims,
estimated to be $5,543,800, is appropriated for
fiscal year ending June 30, 2011, as follows:
(1) the sum of $215,000 is appropriated to
the Department of Health and Social Services, Medicaid
school-based claims allocation, for operating expenses;
(2) after deducting the amount appropriated
in (1) of this subsection, 50 percent of the remainder
is appropriated to the Department of Health and Social
Services, Medicaid school-based claims allocation,
distribution to school districts participating in
Medicaid school-based claims program;
(3) after deducting the amount appropriated
in (1) and (2) of this subsection, the remainder
appropriated to the Department of Education and Earl
Development, K-12 support, foundation program
allocation for distribution to school districts through
the foundation formula."
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Teal explained that the amendment responded
accounting problems, within HESS, tracking Medicaid school
based claims. The amendment took federal receipts
Medicaid school based claims. The federal money
unrestricted and it had been suggested that the funds
used for K-12 institutions. The blanket appropriation
$5.5 million was being divided: the allocation would ke
$215,000 for program operations; and of the remainder,
percent would be distributed to the school districts th
participated in the program, and the other 50 percent woul
be allocated through the foundation formula to K-
programs.
Co-Chair Hoffman WITHDREW his OBJECTION. There being
OBJECTION, it was so ordered.
9:25:29 AM
Co-Chair Stedman MOVED to ADOPT Amendment 7.
Transfer In $ 2,366.5 to Alaska C
System/Therapeutic Courts
DEPARTMENT: Alaska Court System
APPROPRIATION: Therapeutic Courts (new appropriation)
ALLOCATION: Therapeutic Courts
TRANSFER IN: General Funds 1004 $1,354.0
GF/MH 1037 $ 357.2
MHTAAR 1092 $ 138.0
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 517.3
ADD: Intent
It is the intent of the legislature that the Cour
System contract to purchase services associated wi
therapeutic courts in amounts it determines are in
best interest of operating therapeutic courts
efficiently and effectively. Contract amounts should
stem from the amounts transferred from other agencies
into this appropriation.
EXPLANATION: In an effort to enhance coordination
accountability for the Therapeutic Courts programs,
this amendment will consolidate all funding
Therapeutic Courts into a new appropriation in
Alaska Court System. Funds will be transferred fr
the Departments of Administration ($355.0),
Corrections ($252.2), Health and Social Services
($1,394.6) and Law ($364.7).
ADD: 1 PFT
EXPLANATION: For three years, the Court System
supported the Bethel Case Coordinator as a limited
duration position. Because of this position's
"limited duration" status, it was off-budget and
included in the Court System's position count. Th
amendment recognizes this position as a permanent
full-time position.
Transfer Out $ 355.0
DEPARTMENT: Department of Administration
APPROPRIATION: Legal & Advocacy Services
ALLOCATION: Public Defender Agency
TRANSFER OUT: $290.0 General Funds 1004
ADD: $290.0 I/A Receipts 1007
ALLOCATION: Therapeutic Courts Support Services
TRANSFER OUT: $65.0 General Funds 1004
Transfer Out $ 252.2
DEPARTMENT: Department of Corrections
APPROPRIATION: Inmate Health Care
ALLOCATION: Behavioral Health Care
TRANSFER OUT: $207.2 GF/MH 1037
ADD: $207.2 I/A Receipts 1007
APPROPRIATION: Population Management
ALLOCATION: Statewide Probation and Parole
TRANSFER OUT: $45.0 General Funds 1004
Transfer Out $1,394.6
DEPARTMENT: Department of Health & Social Services
APPROPRIATION: Behavioral Health
ALLOCATION: Behavioral Health Grants
TRANSFER OUT: General Funds 1004 $ 272.0
GF/MH 1037 $ 150.0
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 450.0
ADD: $872.0 I/A Receipts 1007
ALLOCATION: Alcohol Safety Action Program (ASAP)
TRANSFER OUT: General Funds 1004 $ 317.3
MHTAAR 1092 $ 138.0
Alcohol and Other
Drug Abuse Treatment
& Prevention Fund 1180 $ 67.3
ADD: $390.4 I/A Receipts 1007
Transfer Out $ 364.7
DEPARTMENT: Department of Law
APPROPRIATION: Criminal Division
rd
ALLOCATION: 3 Judicial District/Anchorage
TRANSFER OUT: $300.3 General Funds 1004
ADD: $300.3 I/A Receipts 1007
th
ALLOCATION: 4 Judicial District
TRANSFER OUT: $64.4 GF 1004
ADD: $64.4 I/A Receipts 1007
Co-Chair Hoffman OBJECTED for the purpose of
discussion.
Mr. Grussendorf explained the amendment was a transfer
to the court system of all the therapeutic cour
allocations. The courts would transfer the funds
the departments as necessary.
Senator Ellis voiced full support of the amendment.
Co-Chair Hoffman WITHDREW his OBJECTION. There being
NO OBJECTION, it was so ordered.
9:26:29 AM
Co-Chair Stedman MOVED to ADOPT Amendment 8:
DEPARTMENT: Transportation and Public Facilities
APPROPRIATION: Highways, Aviation and Facilities
ALLOCATION: Central Region Highways and Aviation
ADD: $2,233.4 General Funds (1004)
Explanation: Additional funding is required to
the minimum requirements of the Environmental
Protection Agency (EPA) Municipal Storm Sewer System
(MS4) permit. The MS4 permit went into effect
February 1, 2010. The Department is required
comply with this permit in its entirety beginning
FY11. The Governor's initial request was
$1,682.0. Subsequent to the amendment deadline,
contract awards came in an additional $551.4 higher
for a total need of $2,233.4.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Grussendorf explained that the amendment would address
Environmental Protection Agency (EPA) concerns regarding
Anchorage street sweeping. The state was meeting the
for the project.
Senator Egan asked how the amendment related to the capital
budget request.
Mr. Teal responded that the funds were for the operating
street sweeping equipment while adhering to
regulations.
Senator Ellis stated that street sweeping had been
contentious issue in his district in the past year.
hoped that the issue could be reasonably worked out.
Co-Chair Stedman noted concerns regarding ongoing
maintenance issues around the state. He thought th
maintenance should be taken care of adequately so that
state could focus on building infrastructure.
Co-Chair Hoffman WITHDREW his OBJECTION. There being
OBJECTION, it was so ordered.
9:29:17 AM
Co-Chair Stedman MOVED to ADOPT Amendment 9:
DEPARTMENT: Health and Social Services
APPROPRIATION: Department Support Svcs.
ALLOCATION: Information Technology
ADD: $512.5 General Fund (1004)
EXPLANATION: Combined with funding included in
Senate CS, this amendment provides a total of
million of the Governor's $1,475.0 GF request.
The proposed budget included three specific requests:
two requests were to correct funding problems with
mix of funds available for support of department
efforts and the third request was to cover increased
costs which are being experienced for new software
maintenance and ETS costs for our mainframe EIS system
which supports our eligibility system for Medicaid
other public assistance programs as well as produces
assistance payments for the many programs operated
through our Division of Public Assistance.
Proposed funding: Governor Senate
Unrealizable federal receipts $750.0 GF
$375.0 GF
Replace HCS RSA funding $225.0 GF $112.5 GF
Cost Inc Software, EIS, etc. $500.0 GF
$0 GF
Total 1475.0 GF 487.5 GF
The Department has been working to correct ma
deficiencies in the operating budget that have caused
overspending in prior years because the mix of fund
attributed to the program operations have
accurately reflected the actual amounts that can
collected from federal programs. In addition,
Department direct billed some expenses to divisions
that are not allowed under our cost allocation pl
which guides all federal revenue collections.
Governor's proposed budget was developed to partially
remedy this problem. Because the IT budget includes
primarily staffing costs and fixed contractual costs,
the result of our inability to obtain adequate funding
to maintain our operation will be the elimination
current staff. We have developed an attachment th
better outlines the systems supported throughout
department and what is potentially at risk if our
efforts are inadequate to address department needs.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Grussendorf noted that the amendment gave HESS $1
million for information technology. The amount was believed
to be adequate.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
9:30:20 AM
Co-Chair Stedman MOVED to ADOPT Amendment 10:
DEPARTMENT: Law
APPROPRIATION: Civil Division
ALLOCATION: Transportation Section
ADD: $200.0 General Funds (1004)
EXPLANATION:
The Alaska Marine Highway System (AMHS) must file
lawsuit against the contractor responsible for
design and construction of the fast ferries Fairweather
and Chenega. The suit will also name the companies
responsible for the vessels' propulsion systems. AM
must file suit now before the expiration of the statute
of limitations.
Since AMHS accepted delivery of the vessels in 2004
2005, the propulsion systems have been subject
recurrent problems. Typical of the problems encountered
with the vessels was the massive overhaul required
the Fairweather beginning in February 2006 at Ketchikan
Ship and Drydock. All four diesel engines had hairline
cracks in their steel sleeves, and there we
additional problems with bull gears, shafts
bearings. If not addressed, the propulsion system
problems will require continued maintenance, which wi
disrupt service, and will shorten the expected lifespan
of the engines.
The lawsuit is against Robert E. Derecktor, Inc.,
contractor responsible for the design and construction
of the ferries, and against MTU Friedrichshafen, Gm
and MTU Detroit Diesel, Inc., the entities responsible
for the vessels' propulsion systems.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Mr. Grussendorf explained that the amendment was a one-time
only increment to the Department of Law for $200,000
general funds to address the Alaska Marine Highway System's
lawsuit against the contractor for the M/V Fairweather
M/V Chenega.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
9:31:01 AM
Senator Ellis MOVED to ADOPT Amendment 11:
EXPLANATION: This amendment will add $200.0 to
continue funding Partners for Progress,
which provides support services
Alaska's therapeutic courts. Partners
for Progress has been an essential pa
of Alaska's therapeutic court system
11 years, and provides crucial services
that the Alaska Court System is unable
to fulfill. It is a proven, evidence-
based program that reduces recidivism
and crime in communities across
state while saving the state money.
DEPARTMENT: Alaska Court System
APPROPRIATION: Therapeutic Courts (new appropriation)
ALLOCATION: Therapeutic Courts
Add: General Funds - 1004 $200.0
DEPARTMENT: Department of Health and Human Services
APPROPRIATION: Behavioral Health
ALLOCATION: Alcohol and Substance Abuse Programs
Add: I/A Receipts - 1007 $200.0
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Senator Ellis explained that amendment would give $200,000
from the general fund to the court system to be transferred
to HESS for the group Partners for Progress.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
9:32:11 AM
Senator Egan MOVED to ADOPT Amendment 12:
APPORTION TRANSCRIPT COSTS FOR GRAND JURY PROCEEDINGS
TO APPROPRIATE AGENCIES
EXPLANATION: This amendment covers the increased
costs the Alaska Court System faces for transcribing
criminal proceedings. It will apportion funding
increases for grand jury transcripts among
Departments of Administration, Law and the Cour
System based on actual transcript requests in 2009
At present, transcription funding is centralized
within the Alaska Court System.
DEPARTMENT: Department of Administration
APPROPRIATION: Legal & Advocacy Services
ALLOCATION: Public Defender Agency
ADD: $64.3 Unrestricted General Funds 1004
ALLOCATION: Office of Public Advocacy
ADD: $53.8 Unrestricted General Funds 1004
DEPARTMENT: Department of Law
APPROPRIATION: Criminal Division
ALLOCATION: Criminal Justice Litigation
ADD: $30.4 Unrestricted General Funds 1004
DEPARTMENT: Alaska Court System
APPROPRIATION: Alaska Court System
ALLOCATION: Trial Courts
ADD: $148.5 I/A Receipts 1007
ADD: Intent
It is the intent of the Legislature that the FY
budget will appropriate all transcription funding
the agencies that order those transcripts from
Alaska Court System.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Senator Egan explained that the amendment would divide
money for transcription costs for grand jury proceedings
appropriate agencies. The amendment coved the increased
cost that the court system faced in transcribing criminal
proceedings.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
9:33:12 AM
Senator Huggins MOVED to ADOPT Amendment 13:
DEPARTMENT: Department of Environmental Conservation
APPROPRIATION: Water
ALLOCATION: Water Quality
ADD: Intent Language found on Page 14, Lines
5-7:
"It is also the intent of the legislature
that measures to address sanitation or
habitat concerns shall not reduce or
restrict opportunities for the public to
access and participate in these fisheries."
Therefore, the intent language should now read:
"It is the intent of the legislature
that the Departments of Environmental
Conservation, Fish and Game,
and Natural Resources work together to
develop a plan to remove fish waste fr
the Kenai and Kasilof
Rivers dipnet fishery and maintain a
safe and attractive riverfront. It
also the intent of the legislature th
measures to address sanitation
habitat concerns shall not reduce
restrict opportunities for the public
access and participate in thes
fisheries."
EXPLANATION: While maintaining a safe and attractive
riverfront on the Kenai and Kasilof rivers is
commendable goal, this language could be construed as
means to reduce or restrict opportunities for
public to access and participate in the fisheries
these waterways in the future.
Some habitat management and simple mitigation measures
are what are needed at this time. The beaches belo
the mean high-water mark are public domain - access
camping should not be cut off in the process
addressing sanitation and habitat concerns.
personal use fisheries are of a relatively shor
duration and any impacts can be mitigated without
interfering with the traditional use of public land
and waters or with fish harvesting.
I believe the original language included in the Senate
CS is far too broad in scope and should be narrowed
clarify the intent is to preserve and protect public
access and use of the fisheries.
Co-Chair Hoffman OBJECTED for the purpose of discussion.
Senator Huggins explained that the amendment was intent
language directed toward the Department of Environmental
Conservation, the Department of Fish and Game, and DNR
address the dipnet fishery waste problem without
restricting access to fishermen.
Co-Chair Hoffman WITHDREW his OBJECTION. There being
OBJECTION, it was so ordered.
9:34:05 AM
Senator Egan WITHDREW amendment 14:
DEPARTMENT: Fish and Game
APPROPRIATION: Wildlife Conservation
ALLOCATION: Wildlife Conservation
DELETE: 160.8; Unrestricted General Funds (1004) and
the Division Director (PCN 11-2001)
EXPLANATION: State government functions best when
high level decision makers reside and conduct the bulk
of their duties in the capital. Locating this
important position in Juneau has served the department
well for nearly twenty years, and the legislature and
the public have received no convincing explanation as
to how moving the job will enhance the management of
Alaska's wildlife.
Co-Chair Stedman MOVED to ADOPT Amendment 15:
SALARY AND BENEFIT ADJUSTMENTS. (a) The operating
budget appropriations made in sec. 1 of this
include amounts for salary and benefit adjustments
public officials, officers, and employees of
executive branch, Alaska Court System employees,
employees of the legislature, and legislators and
implement the terms for the fiscal year ending Ju
30, 2011, of the following ongoing collective
bargaining agreements:
(1) Alaska Vocational Technical Cente
Teachers' Association - National Education
Association, representing the employees of the Alask
Vocational Technical Center;
(2) Public Safety Employees Association,
representing the regularly commissioned public safet
officers unit;
(3) Inland boatmen's Union of the Pacific,
for the unlicensed marine unit;
(4) International Organization
Masters, Mates, and Pilots, for the masters, mates
and pilots unit;
(5) Marine Engineers' Beneficial
Association
(6) Public Employees Local 71, for
labor, trades, and crafts unit; and
(7) Teachers' Education Association of
Edgecumbe.
DEPARTMENT: Statewide
ADD: $8,774,300
FUNDING SOURCE: Multiple fund sources per change
records submitted electronically to the legislative
Finance Division and as detailed on the attachment.
EXPLANATION:
The Labor, Trades, and Crafts bargaining unit has
reached a tentative agreement with the state for
fiscal years FY2010-FY2012.
In FY2011, there will be a conversion to a new wage
schedule similar to that of the majority of state
employees. Health Insurance will increase to $1,088
per employee per month.
DEPARTMENT: Education and Early Childhood
Development
APPROPRIATION: Mt. Edgecumbe Boarding School
ALLOCATION: Mt. Edgecumbe Boarding School
ADD: $21.9 General Funds (1004)
$142.4 Interagency Receipts (1007)
EXPLANATION:
The State of Alaska's Department of Administration had
reached an agreement on a three-year successor
contract with the Teachers' Education Association of
Mt. Edgecumbe (TEAME) covering the period of July 1,
2009 through June 30, 2010.
The agreement contains the following FY2011
provisions:
o 5 percent Sitka, Alaska geographic differential
beginning July 1, 2010.
o Beginning July 1, 2010, bargaining unit members
will be returned to the State's Select Benefits
Health Insurance program with a monthly health
benefit of $1,088.00 per member.
This amendment funds these agreement provisions.
DEPARTMENT: Fund Transfers
APPROPRIATION: Fund Transfers
ALLOCATION: Group Health and Life Benefits Fund
ADD: $54.1 General Funds (1004)
The sum of $54,054 is appropriated from the general
fund to the Group Health and Life Fund in the
Department of Administration, division of retirement
and benefits, as a lump sum payment for health
benefits reserves, to implement the terms of the
collective bargaining agreement for the Teachers'
Education Association of Mt. Edgecumbe, for the fiscal
year ending June 30, 2011.
The TEAME bargaining unit is returning to the State's
Select Benefits Health Insurance program. This is the
agreed upon amount to be deposited to the State Health
Plan for reserves.
DEPARTMENT: Administration
APPROPRIATION: Centralized Administrative Services
ALLOCATION: Office of the Commissioner
ADD: $12.8 General Funds (1004)
EXPLANATION:
The sum of $12,770 is appropriated from the general
fund to the Department of Administration, office of
the commissioner, as a lump sum payment to the union
directed health trust, to implement the terms of the
collective bargaining agreement for the Teachers'
Education Association of Mt. Edgecumbe, for the fiscal
year ending June 30, 2010.
Last week the State reached an agreement with the
Teachers' Education Association of Mt. Edgecumbe
(TEAME). The TEAME agreement covers FY10-FY12.
Since the TEAME agreement is retroactive to the
beginning of FY10, a supplemental is requested for
$12,770 General Funds for the Department
Administration, office of the commissioner, to pay the
agreed upon FY10 insurance costs of the NEA Health
Trust.
Mr. Teal explained that the amendment detailed agreement
reached between Local 71 and the teachers at Mt. Edgecumbe.
He noted that the total cost was $8.774 million.
Co-Chair Hoffman WITHDREW his OBJECTION. There being
OBJECTION, it was so ordered.
9:35:44 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, expressed appreciation to
committee for adopting the amendments that had been
particular importance to the governor.
9:36:55 AM
Co-Chair Hoffman noted the extensive amount of public
testimony that had been heard concerning the legislation.
He informed the committee that 33 people had called into
testify on behalf of the university's Marine Advisory
Program (MAP), and highlighted that the budget included
$300,000 to address funding for that program. He stated
that 38 people had testified in support of domestic
violence and sexual assault initiatives, which resulted
Amendment 5. He furthered that 35 people had testified
support of early childhood education, which resulted
$600,000 for the Bright Beginnings program. He felt th
the committee had responded well to public concerns.
lamented that all of the concerns could not be addressed,
but believed that he overall budget would provide
services that the people of Alaska expected.
Senator Ellis noted that the University of Alaska Anchorage
Honors College had not made it into the budget.
understood why the funding had not been available
stressed that his office would seek alternative funding
sources.
9:39:31 AM
Senator Thomas commented on Amendment 14 which had be
withdrawn. He voiced his concern of the movement of stat
employee positions from the capitol city to other areas
the state.
9:41:12 AM
Senator Olson hoped that funding for the Vista Program
could be found by alternative means. He expressed
disappointment with the lack of funding for additional
Alaska State Troopers and trusted that it would
addressed in the future.
Co-Chair Stedman MOVED Senate CS for CSHB 300 (FIN)
amended out of Committee with individual recommendations
and that authorization be given to the Legislative Finance
Division and the Legislative Legal Services to make
necessary technical and/or conforming amendments.
Senate CS for CSHB 300 (FIN) was REPORTED out of Committee
with a "do pass" recommendation.
Co-Chair Stedman MOVED Senate CS for CSHB 302 (FIN)
amended out of Committee with individual recommendations
and that authorization be given to the Legislative Finance
Division and the Legislative Legal Services to make
necessary technical and/or conforming amendments.
Senate CS for CSHB 302 (FIN) was REPORTED out of Committee
with a "do pass" recommendation.
9:44:45 AM AT EASE
9:45:19 AM RECONVENED
Co-Chair Hoffman gaveled out.
ADJOURNMENT
The meeting was adjourned at 9:45 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 300 Budget Amendments 0326Pkt#1.pdf |
SFIN 3/26/2010 9:00:00 AM |
HB 300 |
| HB 300 Buget Amendment Pkt #2 0326.pdf |
SFIN 3/26/2010 9:00:00 AM |
HB 300 |
| SB 300 CS FIN 032310 Version U.pdf |
SFIN 3/26/2010 9:00:00 AM |
SB 300 |
| SB 302 CS FIN 032310 Version T.pdf |
SFIN 3/26/2010 9:00:00 AM |
SB 302 |