Legislature(2011 - 2012)SENATE FINANCE 532
03/22/2011 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB109 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 108 | TELECONFERENCED | |
| + | HB 109 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 108
"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."
HOUSE BILL NO. 109
"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."
9:06:54 AM
Co-Chair Hoffman explained the process involved during review of
the Senate Finance Committee's budget subcommittee reports.
UNIVERSITY OF ALASKA
TIM GRUSSENDORF, STAFF, CO-CHAIR HOFFMAN, began with the
University's recommendations. He listed the budget action and
other subcommittee action by region:
Fund Source 11 Mgt Plan FY12 Gov Amd Sen Sub Gov
General Funds $641,423.0 $661,634.1 $661,867.1 $233.0
Other Funds $ 76,146.0 $ 85,374.3 $ 85,334.3 ($ 40.0)
Federal Funds $132,798.7 $137,578.7 $137,953.7 $375.0
Positions 11 Mgt Plan FY12 Gov Amd Sen Sub Sen Sub to Gov
PFT 4,694 4,694 4,698 4
PPT 222 222 222 0
Temp 0 0 0 0
The Subcommittee held one meeting with the University and
took the following actions:
Budget Action Highlights
· Changed structure from one appropriation in Gov Amd to
seven appropriations (matching FY11)
· Adopted the FY12 Adjusted Base as a starting point for
subcommittee actions, which include the following in
relation to the Governor's Amended request:
o Accepted $6,568.1 DGF (University Receipts) for non-
personal services fixed cost increases; facilities
maintenance and repair, utility cost increases, and
compliance mandates
o Accepted $13,900.0 in additional U of A Receipt
Authority (comprised of $4,500.0 Federal Receipts and
$9,400.0 Other funds)
o Accepted all MHTAAR increments totaling $1,481.5
o Accepted adjustments to VoTech Ed funding (an overall
reduction of <$159.3>) to match the most recent
calculations from the Department of Labor & Workforce
Development
o Accepted $591.0 UGF for new facility operating and
maintenance costs at the UAA Health Sciences Building
o Denied $314.2 UGF for the UAA ConocoPhillips Integrated
Science Building
o Denied $150.0 UGF and $40.0 University Receipts for the
UAF Individual Technology Based Math Summer Bridge
Programs
o Denied $75.0 UGF and $45.0 University Receipts for the
UAF Summer Research Academy - Engineering Components
· Other Subcommittee Action includes the following additions:
o Full funding for contractual salaries and health
increases proposed in the Governor's original budget
request ($10,354.4) and the amended increases requested
for United Academic Adjuncts (UNAD) ($245.8) and United
Academics (UNAC) ($2,806.1) at a 1 to 1 ratio between
UGF and University Receipts
o Addition of $750.0 (including $250.0 UGF) and 2 PFT
positions - UAF Alternative Energy
o Addition of $100.0 UGF - UAF Honors Program
o Addition of $100.0 UGF - UAS Honors Program
o Addition of $104.3 (including $94.3 UGF) and 1 PFT
position - UAS Teacher Education Recruitment &
Placement Specialist
o Addition of $177.9 (including $98.1 UGF) and 1 PFT
position - UAS Instructional Designer
· Intent was further added by the subcommittee that any FY13
requests for UGF increments not exceed the amount of
additional University Receipts requested for that year and
that future requests by the University of Alaska for
unrestricted general funds move toward a long-term goal of
125 percent of actual University Receipts for the most
recently closed fiscal year.
Attached Reports (Numbers Only)
1. Agency Totals - FY 12 Operating Budget - Senate Structure
2. Appropriation/Allocation Summary (GF) - Senate Structure
3. Appropriation/Allocation Summary (all funds) - Senate
Structure
4. Transaction Comparison (Adj. Base and Senate Subcom) -
Senate Structure
5. Transaction Comparison (Gov. Amd and Senate Subcom) -
Senate Structure
6. Transaction Comparison (House and Senate Subcom) - Senate
Structure
7. Wordage Report - FY 12 Operating Budget - Senate Structure
Mr. Grussendorf discussed various position changes and the
addition and denial of various items.
9:12:27 AM
Co-Chair Stedman MOVED the subcommittee report for the
University of Alaska to the full finance committee for inclusion
in CSHB 108.
Co-Chair Hoffman OBJECTED.
Senator Ellis expressed continued concerns regarding
construction of the new health sciences building at the
University of Alaska Anchorage campus. He appreciated the co-
chair's willingness to work on the issue during the conference
committee process.
Co-Chair Hoffman removed his OBJECTION. The subcommittee report
for the University of Alaska was ADOPTED.
9:13:38 AM
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Mr. Grussendorf reviewed the subcommittee recommendations for
the Department of Commerce, Community and Economic Development.
The Senate Finance Budget Subcommittee for DCCED submits an
Operating Budget to the Senate Finance Committee for FY 12
as Follows:
Sen Sub to
Fund Source 11 Mgt Plan FY12 Gov Amd Sen Sub
Gov Amd
General Funds $71,482.4 $73,056.7 $50,409.5 ($22,647.2)
Other Funds $27,830.9 $28,878.3 $28,418.3 ($460.0)
Federal Funds $39,341.9 $37,038.9 $32,038.9 ($5,000.0)
Positions 11 Mgt Plan FY12 Gov Amd Sen Sub Sen Sub to Gov
PFT 488 488 468 (20)
PPT 3 3 3 0
Temp 13 12 12 0
The Subcommittee held two meetings with DCCED and took the
following actions:
Budget Action Highlights
Accepted
· $400.0 funding for Alaska Native Arts Marketing
· The Governors amendment to replace QTA contract CPV
tax ($3,018.2) with General Funds.
· ASMI, Replaced Industry Assessment with UGF to
maintain marketing efforts.
Denied
· The re-structuring, transfer of funding and positions
bringing the Office of Economic Development and the
Divisions of Investments into a single appropriation.
· $363.2 GF to Increase the Economic development
function.
· Reduction of $600.0 to Ilisagvik College for
workforce development
· $97.0 and 1 position to continue natural resources
specialist to provide assistance on ANSCA 14c
actions
Other Actions
· Moved ASMI with their existing 19 positions and QTA
to the Language section of the Operating Budget.
Attached Reports (Numbers Only)
8. Agency Totals - FY 12 Operating Budget - Senate
Structure
9. Appropriation/Allocation Summary (GF) - Senate
Structure
10. Appropriation/Allocation Summary (all funds) -
Senate Structure
11. Transaction Comparison (Adj. Base and Senate
Subcom) - Senate Structure
12. Transaction Comparison (Gov. Amd and Senate
Subcom) - Senate Structure
13. Transaction Comparison (House and Senate Subcom)
- Senate Structure
14. Wordage Report - FY 12 Operating Budget - Senate
Structure
9:15:43 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Department of Commerce, Community and Economic Development for
inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED.
Senator Olson commended the co-chairs for the reinstatement of
funding for the Ilisagvik College. He observed that Ilisagvik
College contributed to the atmosphere and workforce in the
northernmost areas of the state.
Co-Chair Hoffman removed his OBJECTION. The subcommittee report
for Department of Commerce, Community and Economic Development
was ADOPTED.
9:16:58 AM
OFFICE OF THE GOVERNOR
Mr. Grussendorf reviewed the subcommittee recommendations for
the Office of the Governor.
The Senate Finance Budget Subcommittee for the Office of
the Governor submits an Operating Budget to the Senate
Finance Committee for FY 12 as Follows:
Fund Source 11 mgt. plan FY12 Gov Amd Sen Sub Sen to Gov
General Funds $28,250.4 $ 28,572.3 $ 2 8 ,569.9 ( 3 , 0 02.4 )
Federal Funds $191.4 $ 1 9 5 .0 $ 1 9 5 . 0 -
Other Funds $ 865.1 $605.5 $ 605.5 -
Positions 11 mgt plan 12 Gov Amd. Sen. Sub Sen to Gov
PFT 163 162 162 -
PPT 0 0 0 -
Temp 48 27 27 -
Budget Action
The Senate Finance Budget Subcommittee on the Office of the
Governor submits an operating budget for FY12 as follows:
The Subcommittee adopted the Governors' request with 2
changes.
· Moved the $3.0 million for DVSA from the numbers section to
the language section giving the Governor $2.7 million, and
designated $300.0 for Trauma Informed Care for Victims of
Domestic Violence.
· Technical clean up of $2.4k for the personal services line
in the fiscal note for HB 369.
Attached Reports
15. Agency Totals - FY 12 Operating Budget - Senate
Structure
16. Appropriation/Allocation Summary (GF) - Senate
Structure
17. Appropriation/Allocation Summary (all funds) - Senate
Structure
18. Transaction Comparison (Adj. Base and Senate Subcom)
19. Transaction Comparison (Gov. Amd and Senate Subcom)
20. Wordage Report - FY 12 Operating Budget - Senate
Structure
21. Transaction Comparison (House. and Senate Subcom)
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Office of the Governor for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED.
Co-Chair Hoffman removed his OBJECTION. The subcommittee report
for the Office of the Governor was ADOPTED.
9:18:29 AM
LEGISLATURE
Mr. Grussendorf discussed the subcommittee report for the
Legislature.
The Senate Finance Budget Subcommittee for the Legislatures
Operating Budget submits this recommendation to the Senate
Finance Committee for FY 12 as follows:
Fund Source 11 mgt.plan 12 Gov Amd Sen Sub Difference
General Funds $67,707.7 $69,370.8 $$68,955.1 $415.7
Federal Funds 0 0 0 0
Other Funds $413.0 $413.0 $379.5.0 $(33.5)
12 Gov
Positions 11 mgt plan Amd. Sen. Sub Sen to Gov
PFT 248 248 248 0
PPT 285 285 285 0
Temp 0 0 0 0
Budget Action
The Senate Finance Budget Subcommittee on the Legislature
submits an Operating budget for FY12 as follows:
• There are no net increments
• Decreased Budget and Audits by $1,079.9gf to offset
increments as follows
• $229.3 to Legislative Council for session per diem
• $520.0 to Legislative Council for Salary allowance.
• $75.0 for 2 year fiscal note on HCR22 Northern waters
task force
• $20k for increase of range from 22 to 24 for Ethics
Administrator
• $26.3 to convert Wrangell LIO position to PPT
Attached Reports
1. Agency Totals - FY 12 Operating Budget - Senate
Structure
2. Appropriation/Allocation Summary (GF) - Senate
Structure
3. Appropriation/Allocation Summary (all funds) - Senate
Structure
4. Transaction Comparison (Adj. Base and Senate Subcom)
5. Transaction Comparison (Gov. Amd and Senate Subcom)
6. Wordage Report - FY 12 Operating Budget - Senate
Structure
7. Transaction Comparison (House. and Senate Subcom)
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Legislature for inclusion in the CS for HB 108.
Co-Chair Hoffman OBJECTED.
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered. The subcommittee report for the
Legislature was ADOPTED
9:20:32 AM
DEPARTMENT OF LAW
Co-Chair Stedman explained the subcommittee report for the
Department of Law. He explained the various additions and
denials included in the report.
The Senate Finance Budget Subcommittee for the Department
of Law submits the following FY12 Operating Budget
Recommendations to the Senate Finance Committee:
12 Adj
Unrestricted
GF $51,016.6 $56,253.3 $52,528.3 $(3,725)
Designated GF $2,296.2 $2,649.3 $2,509.3 $(140)
Other Funds $25,160.3 $25,828.5 $25,828.5 $0
Federal Funds $1,652.6 $1,947.3 $1,947.3 $0
Total $80,125.7 $86,678.4 $82,813.4 $(3,865)
12 Adj
Positions Gov Amd Sen Sub Difference
Base
PFT 560 569 567 (2)
PPT 2 2 2 0
Temp 0 0 0 0
The Subcommittee met with the Department and took the
following budget actions:
Budget Action
Approved the Governor's Amended budget requests with the
following exceptions:
CRIMINAL DIVISION
• Approved the addition of 1 permanent full time
District Attorney within the Second Judicial District in
Kotzebue. The subcommittee took the House's recommendation
to fund this position at 75% of the $210,000 GF request to
allow adequate time for the position to be filled after the
start of the FY2012 fiscal year.
• Denied the request to replace $500,000 of expiring
federal earmarks with GF. The subcommittee recommended
funding for positions in Kotzebue, Palmer, Kenai, and
Barrow that will assist with DVSA related issues.
CIVIL DIVISION
• Denied the addition of 1 permanent full time paralegal
in the Collections & Support Section to limit spending and
restrain growth of the department's position count.
• Denied the request for $175,000 for contracting
outside legal counsel for federal environmental litigation.
• Denied the Oil, Gas & Mining section's $2.7 million
request for outside legal counsel and expert services
related to the state's gas pipeline and gas
commercialization efforts. The subcommittee accepted the
House's recommendation not to fund the request, but
recognizes the department has requested funding in the
Capital and FY11 Supplemental Budgets which will be
considered in the future.
• Denied the addition of 1 permanent full time Public
Records Attorney in the Timekeeping & Litigation Section to
limit spending and restrain growth of the department's
position count.
• Approved the addition of 1 permanent full time Child
Protection Section Attorney and 1 permanent full-time
paralegal within the Child Protection Section in Palmer.
The subcommittee took the House's recommendation to fund
these positions at 75% of the $350,000 GF request to allow
adequate time for these positions to be filled after the
start of the FY2012 fiscal year.
ATTACHMENTS:
• Report 1 - Agency Totals - Senate Structure
• Report 2 - Allocation Summary Numbers - Senate
Structure
• Report 3 - Allocation Summary Numbers (GF Only) -
Senate Structure
• Report 4 - Transaction Compare - Adjusted Base &
Senate Subcommittee
• Report 5 - Transaction Compare - Gov Amend+ & Senate
Subcommittee
• Report 6 - Transaction Compare - House & Senate
Subcommittee
• Report 7 - Wordage
• Report 8 - Senate Subcommittee Worksheet
Co-Chair Stedman MOVED to ADOPT the Department of Law's
subcommittee report for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Department of Law was ADOPTED.
9:24:18 AM
DEPARTMENT OF REVENUE
Co-Chair Stedman described the subcommittee report for
Department of Revenue.
The Senate Finance Budget Subcommittee for the Department
of Revenue submits the following FY12 Operating Budget
Recommendations to the Senate Finance Committee:
12 Adj
Fund Source Base Gov Amd Sen Sub Difference
Unrestricted
GF $20,050.4 $ 29,524.1 $29,524.1 $0
Designated GF $9,210.5 $ 9,210.5 $9,210.5 $0
Other Funds $172,474.0 $ 99,738.8 $189,604.8 $ 89,866.0
Federal Funds $41,971.4 $ 41,935.2 $41,935.2 $0
Total $248,706.3 $180,408.6 $270,274.6 $ 89,866.0
12 Adj
Positions Base Gov Amd Sen Sub Difference
PFT 876 878 877 -1
PPT 40 40 40 0
Temp 20 20 20 0
Total 937 938 937 -1
The Subcommittee met with the Department and accepted the
Governor's amended budget with the following exceptions:
Budget Action
TAX DIVISION
Accepted the House recommendation to delete the
department's vacant Chief Revenue Economist position (PCN
04-3255) and move the associated $150k budget for this
position to the contractual services line. The department
has been unable to fill this classified position for almost
3-years. Moving this funding to the contractual line will
give the department more flexibility to acquire the
services necessary to accomplish their mission.
TREASURY DIVISION
Approved a $15,200 fund source change to account for
statutory changes made in the management of the Alaska
Children's Trust. The Trust will now be managed as an
endowment so the 1098 Children's Trust Earnings fund code
is no longer active. This is a net zero change.
ALASKA HOUSING FINANCE OPERATIONS
Changed the $40,000 increment for the second year fiscal
note for SB 217 dealing with state guaranteed veteran's
mortgages, from a maintenance increment to a one-time
increment. The annual operating costs of this program need
to be reviewed for each of the next several years.
ALASKA PERMANENT FUND CORP OPERATIONS
Denied a $115,000 increment in Corporation Receipts for
increased due diligence travel.
Denied a $319,000 increment in Corporation Receipts for
personal services costs related to hiring and salary
increases.
ALASKA PERMANENT FUND CUSTODY & MANAGEMENT FEES
Denied the request to move $90.3 mill in Corporation
Receipts for investment management fees from the numbers
section of the budget to the language section. This
transaction results in the Senate Subcommittee "Other
Funds" number being higher than the Governor's Amended
budget, however it will be reduced by the same amount once
the full committee removes this section from the bill
language.
ATTACHMENTS:
Report 1 - Agency Totals - Senate Structure
Report 2 - Allocation Summary Numbers - Senate Structure
Report 3 - Allocation Summary Numbers (GF Only) - Senate
Structure
Report 4 - Transaction Compare - Adjusted Base & Senate
Subcommittee
Report 5 - Transaction Compare - Gov Amend+ & Senate
Subcommittee
Report 6 - Transaction Compare - House & Senate
Subcommittee
Report 7 - Senate Subcommittee Worksheet
Co-Chair Stedman MOVED to ADOPT the subcommittee report for
Department of Revenue for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Senator Olson asked about the loss of one permanent full-time
position.
Co-Chair Stedman offered his staff's opinion.
9:27:40 AM
MILES BAKER, STAFF, CO-CHAIR STEDMAN, responded that the
reduction of the one permanent full-time position was listed at
the bottom of the first page regarding the tax division. The
money remained in the budget, but in a contractual line allowing
the Department of Revenue (DOR) to contract for services.
Senator Olson clarified that the department did not lose an
employee. The funding was made contractual, since the position
remained unfilled.
Co-Chair Stedman expressed past struggles with DOR regarding the
vacant economist position. The economist would help the
committee with policy calls particularly with matters concerning
gas and oil.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Department of Revenue was ADOPTED.
9:29:15 AM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Co-Chair Stedman detailed the subcommittee report for Department
of Transportation and Public Facilities.
The Senate Finance Budget Subcommittee for the Department
of Transportation & Public Facilities submits the following
FY12 Operating Budget Recommendations to the Senate Finance
Committee:
12 Adj
Fund Source Base Gov Amd Sen Sub Difference
Unrestricted
GF $254,178.8 $260,280.9 $258,121.7 $(2,159.2)
Designated GF 63,349.8 $ 69,301.6 $69,397.5 $95.9
Other State $254,516.0 $252,970.2 $254,736.0 $1,765.8
Federal $3,802.9 $ 3,787.8 $3,802.9 $15.1
Total $575,847.5 $586,340.5 $586,058.1 $( 282.8)
12 Adj
Positions Base Gov Amd Sen Sub Difference
PFT 3,210 3,217 3,218 1
PPT 420 420 420 0
Temp 226 226 226 0
Total 3,859 3,847 3,844 1
Specific Budget Action
The Subcommittee met with the Department and accepted the
Governor's amended budget with the following exceptions:
ADMINISTRATION & SUPPORT
· Added $258,600 in GF and reduced CIP Receipts by $124,400
within Statewide Aviation. This will facilitate an effort
to consolidate management of the Alaska Aviation Safety
Program and the Statewide Digital Mapping Imitative
(SDMI) under the currently CIP budgeted Project Manager
and move the temporary Project Coordinator position to
Permanent Full Time. This creates one new position.
Co-Chair Stedman added that throughout the report, the
subcommittee denied 13 separate transactions for a total of $2
million in general funds. The department requested these
transactions as part of the internal initiative to more
accurately reflect the actual position or personal service cost
associated with capital improvement project work. While the
committee recognized merit in the effort, it was clearly a much
broader issue throughout the entire budget. In addition, given
the department's expectation of larger than normal federal
highway money becoming more available to the state this coming
year, Capital Improvement Projects (CIP) receipts were not
increased.
· Denied two fund source changes to move $95,100 and
$179,700 in CIP Receipts to General Funds within Program
Development and Measurement Standards and Commercial
Vehicle Enforcement.
DESIGN ENGINEERING & CONSTRUCTION
· Denied two fund source changes to move $52,000 and $123,800
in CIP Receipts to General Funds within Statewide Public
Facilities and Statewide Design & Engineering, accepting
the House recommendations.
· Denied a $316,900 fund source change from CIP Receipts to
General Funds and replaced $22,500 in GF Program Receipts
with an equal amount of CIP Receipts within Central Region
Design & Engineering. Both were House recommendations.
· Denied an $189,700 fund source change from CIP Receipts to
General Funds and replaced $5,600 in GF Program Receipts
with an equal amount of CIP Receipts within Northern Region
Design & Engineering. Both were House recommendations.
· Denied a $215,100 fund source change from CIP Receipts to
General Funds and replaced $21,100 in GF Program Receipts
with an equal amount of CIP Receipts within Southeast
Region Design & Engineering. Both were House
recommendations.
· Denied a $252,800 fund source change from CIP Receipts to
General Funds within Central Region Construction & CIP
Support.
· Denied a $212,800 fund source change from CIP Receipts to
General Funds within Northern Region Construction & CIP
Support.
· Denied a $144,000 fund source change from CIP Receipts to
General Funds within Southeast Region Construction & CIP
Support.
HIGHWAYS, AVIATION & FACILITIES
· Denied a request to change $89,800 worth of CIP, Federal
and Statutory Designated Program Receipts to General Funds
within Central Region Highways and Aviation.
· Funded $667,800 or 75% of an $890,400 General Fund request
within Central Region Highways and Aviation to help off-set
State Equipment Fleet rate increases.
· Denied a $75,000 General Fund increment within Central
Region Highways and Aviation to purchase anti-icing
materials in the Kenai & Soldotna area.
· Denied a request to change $120,200 worth of CIP, Federal
and Statutory Designated Program Receipts to General Funds
within Northern Region Highways and Aviation.
· Funded $1.34 mill or 75% of a $1.79 mill General Fund
request within Northern Region Highways and Aviation to
help off-set State Equipment Fleet rate increases.
· Added $50,000 to Northern Region Highways and Aviation to
cover the costs of operating and maintaining a short-term
ice road from Kotzebue to Kiana and Noorvik each winter.
· Denied a request to change $9,300 worth of Inter-Agency and
Statutory Designated Program Receipts to General Funds
within Southeast Region Highways and Aviation.
· Funded $65,600 or 75% of a $87,400 General Fund request
within Southeast Region Highways and Aviation to help off-
set State Equipment Fleet rate increases.
· Added a $300,000 one-time increment to Southeast Region
Highways and Aviation to cover increased operations and
maintenance costs at the state owned airport in Ketchikan.
The Subcommittee also added the following conditional
language to this increment: "The increment of $300,000 for
Ketchikan Airport operations is contingent on the Ketchikan
Gateway Borough and the Department of Transportation and
Public Facilities continuing good faith negotiations to
restructure terms of their lease agreement, to find
operational efficiencies and to equitably reallocate annual
operating costs between both parties".
9:33:14 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Department of Transportation and Public Facilities.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Senator Olson appreciated the addition of $50 thousand for the
ice road from Kotzebue to Kiana and Noorvik. He added that with
the high price of oil, citizens in the area use the ice road to
transport stove oil and building materials when the river was
too low for barge transportation.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Department of Transportation and Public Facilities was
ADOPTED.
9:34:24 AM
DEPARTMENT OF ADMINISTRATION
Senator Ellis characterized the work on the subcommittee for the
Department of Administration as modest "belt tightening."
JEFF ROGERS, STAFF, SENATOR ELLIS, provided a summary of the
subcommittee report for the Department of Administration.
The Senate Finance Subcommittee on the Department of
Administration submits an operating report to the full
Senate Finance Committee for Fiscal Year 2012 as follows:
Fund Source FY11 FY12 FY 12 Difference Difference
Management Governor's Senate Sub (GovAmnd to (GovAmnd to
Plan Amended Senate Sub) Senate Sub)
Unrestricted $76,608.7 $79,988.9 $77,408.9 ($2,580.0) (3.2%)
General Funds
Designated $23,984.0 $25,064.2 $23,101.8 ($1,962.4) (7.8%)
General Funds
Other Funds $198,387.5 $201,452.4 $204,690.1 $3,237.7 1.6 %
Federal Funds $3,935.8 $4,529.2 $4,539.4 $10.2 0.2%
Total $302,916.0 $311,034.7 $309,740.2 ($1,294.5) (0.4%)
Personnel:
The Subcommittee reviewed the authorized position count for
the Department. The Governor's amended budget proposal
requested two new positions, and the Subcommittee is
recommending that those two new positions be accepted. To
compensate for these two positions, the Subcommittee has
deleted two vacant positions from the Central
Administrative Services division.
FY11 Management FY12 Governor's FY 12 Senate
Position Summary Plan Amended Subcommittee
Permanent Full 1,071 1,073 1,071
Time
Permanent Part 18 18 18
Time
Temporary 39 39 39
Total 1,128 1,130 1,128
Budget Action:
The Subcommittee held five meetings with the Department and
took the following actions:
1. Adopted the Fiscal Year 2012 Adjusted Base.
2. Reviewed each of the increments, decrements, and fund
changes submitted by the Governor. Recommends action
1
on the Governor's proposal including the following:
a. Adopt Inc $316.0 AOGCC RCTPS for two new
positions in AOGCC
b. Adopt Inc $1,000.0 FED for enhanced CDL
improvements at the DMV
c. Adopt Inc $110.0 SDPR for the Office of Public
Advocacy
d. Adopt Inc $50.0 GF/PR for the Office of
Administrative Hearings
e. Adopt Inc $112.5 GF/PR for Databasics Software
for Travel from credit card rebates
f. Adopt Inc $50.0 FED for COBRA Stimulus Funds
g. Adopt Inc $40.2 FED for the CASA program in the
Office of Public Advocacy
h. Reject Fund Change $1,475.8 UGF from various
funds for uncollectable Salary Costs
i. Adopt Dec $248.1 PFD CRIM for Violent Crimes
Compensation Board
j. Adopt Fund Change $150.0 from GF/PR to UGF for
Alaska Land Mobile Radio
3. Reviewed each of the operating budget amendments
submitted by the Governor. Recommends action on the
Governor's proposal including the following:
a. Adopt Inc $60.0 I/A for Central Mail
b. Adopt Inc $350.0 I/A for Leases
c. Adopt Inc $1,788.2 PBF for services in Public
Buildings
d. Adopt Inc $60.0 PBF for personal services in
Public Buildings
e. Reject Inc $80.0 UGF for costs in Non-Public
Buildings
f. Reject Inc $135.6 AOGCC RCPTS for AOGCC office
space lease
g. Reject Inc $200.0 AOGCC RCPTS for AOGCC office
space renovation
4. Recommends the adoption of the following increments,
decrements, and statements of intent proposed by
members of the Subcommittee:
1
Budget adjustments that are primarily technical in nature or
that authorize Mental Health Trust receipts not included.
a. Adopt Inc $300.0 UGF for Public Broadcasting:
Television
b. Adopt Dec $7.7 UGF for travel in Centralized
Administrative Services
c. Adopt Dec $9.2 UGF for travel in Enterprise
Technology Services
d. Adopt Dec $6.1 UGF for travel in Division of
Motor Vehicles
e. Adopt Dec $50.0 UGF in Lease Administration
f. Adopt Dec $750.0 UGF in Centralized
Administrative Services (Unallocated) & Delete 2
PFT positions
g. Adopt Dec $400.0 UGF in Enterprise Technology
Services
h. Adopt Dec $100.0 UGF in State Owned Facilities
(Unallocated)
i. Adopt two statements of Legislative Intent:
i. "It is the intent of the Legislature that
the reductions taken in the Enterprise
Technology Services Allocation remain in
that allocation and not be spread to either
the State of Alaska Telecommunications
System or the Alaska Land Mobile Radio
allocations."
ii. "It is the intent of the Legislature that
the Commissioner of Administration will
deliver a report on the future viability of
the Alaska Land Mobile Radio network to the
th
Legislature not later than the 15 day of
th
the second session of the 27 Alaska
Legislature. The report should address
anticipated operating and capital costs of
sustaining the system and the sources that
will be used to fund those costs. The
report should also review alternatives to
the ALMR network."
Items of Concern:
1. In order for State budgets to accurately reflect the
real expense of each State agency, costs related to
the activity of an individual State agency should be
reflected in that agency's budget rather than in
another. Salary fund source changes to replace
interagency receipts with general funds are contrary
to that objective. As with any service provider, when
the Department of Administration's costs rise, its
billing rates should rise accordingly. The
Subcommittee encourages the Office of Management and
Budget to develop a practice that anticipates the
increased cost of services delivered by the DOA in the
budgets of agencies that receive DOA services.
2. All State agencies must deliver optimized results at
minimized costs. Nowhere is this truer than in State
agencies that serve other State agencies. As
expenditures rise in critical program areas across
State government, so must expenditures be reduced in
others. To that end, Centralized Administrative
Services, Enterprise Technology Services, State Owned
Facilities, and Lease Administration must become even
more efficient at delivering mission-based results at
lower cost. Similarly, agencies must take full
advantage of modern communication technologies to
limit nonessential travel that is not supported by
receipts or other funds.
3. The Subcommittee supports the Alaska Oil and Gas
Conservation Commission's efforts to better respond to
the needs of Alaska's oil and gas industry, while also
managing Alaska's petroleum resources for the greatest
benefit of all Alaskans. The two positions and
requisite funding requested are sufficiently
justified. The Subcommittee acknowledges that
additional space may be needed, but the Commission has
failed to sufficiently demonstrate that the amount of
additional space requested in the Governor's
amendments is commensurate with that need.
4. The Subcommittee recognizes the importance of public
broadcasting across the State, particularly in rural
areas, for connecting and informing the public. State
assistance for Public Television has decreased
dramatically in recent years. The increment adopted by
the Subcommittee supports a notable statewide
cooperation between the four primary public television
stations-KYUK in Bethel, KTOO in Juneau, KUAC in
Fairbanks, and KAKM in Anchorage. The largest portion
of these funds will support two-way broadband
communications between the four stations which will
enhance efficiency by eliminating duplication of
effort, ultimately reducing the number of control
rooms necessary to manage broadcasting across the
State. A smaller portion of these funds will enhance
the development of statewide Alaskan content.
5. The Subcommittee supports accepting the recommendation
of the Legislative Fiscal Analyst to appropriate
$1,600.0 of budgeted PDF Criminal Funds to the Crime
Victims Compensation Fund so that they not lapse (Sec.
18.67.162) and appropriate $1,800.0 from that fund to
the Violent Crimes Compensation Board. This change
concurs with action taken by the House.
Documents Attached:
Reports from the Division of Legislative Finance
(numbers only):
1. Agency Totals - FY2012 Operating Budget, Senate
Structure
2. Appropriation/Allocation Summary - Senate
Structure
3. Appropriation/Allocation Summary (GF Only) -
Senate Structure
4. Transaction Comparison - Senate Structure
(Between Adjusted Base and Senate Subcommittee)
5. Transaction Comparison - Senate Structure
(Between Governor's Amended and Senate
Subcommittee)
6. Transaction Comparison - Senate Structure
(Between House and Senate Subcommittees)
7. Wordage Report - FY2012 Operating Budget, Senate
Structure
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Department of Administration.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Department of Administration was ADOPTED.
9:37:28 AM
DEPARTMENT OF CORRECTIONS
Senator Ellis informed the committee that 20 percent of the
governor's supplemental request in his budget amendments was for
the Department of Corrections. He mentioned the growing prison
population and rising health care costs as contributing factors.
He noted concerns about Goose Creek Correctional Center and the
lack of progress on regional correctional facilities. He stated
that he laid groundwork with the department and the
commissioner's team for a restructuring project of the
department's future budget for emphasis on cost effective and
evidence based treatment programs for mental health and
substance abuse for prisoners that come to the legislature at
great public expense.
Mr. Rogers provided details regarding the subcommittee's budget
work for the Department of Corrections.
The Senate Finance Subcommittee on the Department of
Corrections submits an operating report to the full Senate
Finance Committee for Fiscal Year 2012 as follows:
Fund Source FY11 FY12 FY 12 Difference Difference
Management Governor's Senate Sub (Governor to (Governor to
Plan Amended Senate Sub) Senate Sub)
Unrestricted $222,900.0 $253,642.8 $250,035.7 ($3,607.1) (1.4%)
General Funds
Designated $17,882.9 $15,211.0 $15,211.0 $0.0 0%
General Funds
Other Funds $14,368.3 $14,925.0 $14,925.0 $0.0 0%
Federal Funds $3,027.2 $3,220.6 $3,220.6 $0.0 0%
Total $258,178.4 $286,999.4 $283,392.3 ($3,607.1) (1.3%)
FY11 Authorized FY12 Governor's FY 12 Senate
Position Summary Amended Subcommittee
Permanent Full 1,509 1,509 1,509
Time
Permanent Part 2 2 2
Time
Temporary 0 0 0
Total 1,511 1,511 1,511
Personnel:
The Subcommittee reviewed the authorized position count for
the Department. The Governor's amended budget proposal
requested no new positions. The Subcommittee is
recommending no new positions.
Budget Action:
The Subcommittee held four meetings with the Department and
took the following actions:
5. Adopted the Fiscal Year 2012 Adjusted Base.
6. Reviewed each of the increments, decrements, and fund
changes submitted by the Governor. Recommends action on
2
the Governor's proposal including the following:
a. Reject Inc $3,600.0 UGF for the phase in of Goose
Creek Correctional Center
b. Adopt Inc $188.0 UGF for Community Jails in Kodiak
c. Adopt Inc $200.0 DVSA I/A for PACE Pilot Project
d. Adopt Inc $136.9 UGF for added expense related to SB
222
e. Adopt Inc $1,500.0 UGF for Inmate Health Care
f. Adopt Fund Change $1,322.0 UGF from PFD CRIM for
Inmate Health Care
g. Adopt Inc $1,300.0 UGF for statewide operation of
Community Jails
h. Adopt Inc $933.5 UGF for Community Residential
Centers
7. Reviewed each of the operating budget amendments
submitted by the Governor. Recommends action on the
Governor's proposal including the following:
a. Adopt Inc $2,136.9 UGF for Out-of-State Contractual
b. Adopt Inc $3,504.4 UGF for 24-Hour Institution
overtime and commodity costs
c. Adopt Inc $439.4 UGF ACOA Arbitration Costs (Spring
Creek Correctional)
d. Adopt Inc $257.5 UGF for Community Residential
Centers
e. Adopt Inc $2,511.5 UGF for Inmate Health Care
8. Recommends the adoption of the following statements of
intent proposed by members of the Subcommittee:
a. Adopt three statements of Legislative Intent:
i. "It is the intent of the Legislature that the
Department of Corrections will prepare its FY
13 budget request based on a current shift
relief factor applied to updated and approved
post orders; that the Department will calculate
2
Budget adjustments that are primarily technical in nature or
that authorize Mental Health Trust receipts not included.
that shift relief factor by facility and will
differentiate between mandatory and essential
posts; and that the Department will update and
approve post orders to ensure the safety of
correctional staff, the general public, and
inmates in custody."
ii. "It is the intent of the Legislature that the
Department of Corrections will develop and
promulgate construction plans that expand
capacity at the Yukon-Kuskokwim Correctional
Center and the Fairbanks Correctional Center to
accommodate current and future offender
populations, and that the Department will request
funding in its FY 13 budget for the development
and construction of those facility expansions."
iii. "It is the intent of the Legislature that the
Department of Corrections will work over the
interim to devise a budget re-prioritization and
re-investment strategy focused on research-based
cost-effective offender habilitation and reentry
measures, and that the Department will request
funding in its FY 13 budget for expanding the
Department's substance abuse treatment programs,
behavioral and mental health programs, the
Probationer Accountability with Certain
Enforcement, and the Electronic Monitoring
Program."
iv. "It is the intent of the legislature that the
Department of Corrections provides an analysis to
st
the legislature by January 31, 2012 showing the
cost differences between paying overtime to the
correctional officers versus hiring new
employees." Concurring with intent language
adopted by the House.
Items of Concern:
6. The new correctional facility at Goose Creek will bring
more than 1,000 prisoners currently held out-of-state back
to Alaska, which will invest more than $22 million of our
correctional spending in-state. Further, the capacity of
this new prison will also ease the overcapacity challenges
faced by other correctional facilities across the state.
However, the costs for Goose Creek have exceeded the
expectations of the legislators who authorized the
construction under SB 65 (2004). The Alaska Industrial
Development and Export Authority broke two state laws in
financing the construction of the utilities to the
facility. The Department's calculation of inflation
increases to authorized per-bed construction costs is
supported by a 2008 opinion from the Attorney General.
However, that opinion is not shared by all legislators, and
some believe that the Department has overstepped its
statutory authority. This is a significant issue, and it is
best resolved through a Legislative Audit of the project.
It is incumbent upon the Department and its public partners
to justify the location, construction techniques, and
financing structures of the Goose Creek as quickly and
transparently as possible.
7. In our March 10, 2011 Subcommittee Meeting, Deputy
Commissioner Sam Edwards suggested that the escape from
Palmer Correctional Facility might have been avoidable if
there had been additional staffing at the time of the
escape. This escape reminds us that insufficient staffing
has a direct effect on public safety in Alaska. The March
2010 Legislative Audit of the Department of Corrections
similarly acknowledged that Alaska's correctional
facilities are dramatically understaffed. The
miscalculation of the shift relief factor and the failure
to appropriately distinguish between various post types has
resulted in the use of abnormally large amounts of
overtime. This chronic staffing shortage has resulted in a
$3.5 million supplemental request in the FY11 budget and
also a $3.5 million amendment to the FY12 budget. Spending
millions of dollars on overtime is not in the best interest
of Alaska's correctional officers or public safety at
large. The Subcommittee looks forward to the FY13 budget
where it anticipates seeing a substantial increase in the
number of correctional officer positions, not only for the
new Goose Creek facility but also for other understaffed
facilities.
8. The Subcommittee urges the department and the Governor to
act quickly on the recommendations of Five-Year Prisoner
Reentry Strategic Plan developed by the Alaska Prisoner
Reentry Task Force. Alaska cannot afford to build another
prison the size of Goose Creek. However, with the recent
precipitous rise in the prisoner population, another large
and costly prison will be required in just a few years.
Research has proven that a comparatively small investment
in substance abuse treatment, mental/behavioral health
treatment, and innovative probation/parole programs today
will yield significant correctional savings down the road.
9. Costs for health care services are on the rise nationwide.
Hence, Alaska's expense for inmate health care is similarly
rising, which is compounded by the expanding inmate
population. The Subcommittee encourages the Department to
pursue all avenues for containing health care costs,
including the expansion of medical parole for low-level
non-violent offenders. However, the Department has
requested supplemental appropriations for inmate health
care for the past four years. Following that pattern, the
Department has requested fewer dollars per inmate for
inmate health care in FY12 than were expended in FY11 or
FY10. This suggests that the Legislature should anticipate
a supplemental appropriation request next year. The
Subcommittee encourages the Department to seek the
necessary funding for inmate health care each fiscal year
without the necessity of annual supplemental
appropriations.
10. Alaska's energy and costs are high and rising. The
subcommittee encourages the Department to pursue
opportunities to cut those costs by taking advantage of
energy efficiency and weatherization programs such as the
Alaska Energy Efficiency Revolving Loan Fund Program
(AEERLF). AEERLF provides financing for permanent energy
efficiency improvements that stand to save the State
significantly in the future.
9:40:26 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee recommendations
for the Department of Corrections for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for Department of Corrections was ADOPTED.
9:41:11 AM
DEPARTMENT OF FISH AND GAME
Senator Olson noted that the significant change between the
governor's amended budget, the budget from FY11 and the proposed
budget was greater than $1 million. He expressed concern that
the tax on the state and the ability to govern itself. He
thought that more local control proved advantageous.
NIKO BUS, STAFF, SENATOR OLSON, described the subcommittee
report for the department of Fish and Game. The close out report
accounts for the position additions for special studies. The
increases are for three commercial projects. The large increase
was based on the acreage.
The Sub-Committee for the Department of Fish & Game submits
an operating budget recommendation and report to the Senate
Finance Committee for FY12 as follows:
Fund Source 11 Mgt Plan Gov Amd Sen Sub Difference
GF $73,454.0 $78,728.1 $182,944.7 $104,216.6 132.4%
Federal $62,139.1 $2,199.7 $62,199.7 $0
Other $57,883.7 $56,392.3 $56,317.2 $(75.1) 0.1%
Total $193,476.8 $197,320.1 $301,461.6
Position 11 Mgt Plan Gov Amd Sen Sub
PFT 923 924 927
PPT 757 756 756
Temp 64 64 64
Total 1,744 1,744 1,747
Personnel
The authorized position count for the department was
reviewed; the overall number of positions remained the same
in the Governor's request, and the sub-committee added
three additional full-time positions.
Budget Action
· Held 4 public meetings with the department to discuss
and explain the budget;
· Adopted the FY12 Adjusted Base; and
· Reviewed each of the increments and decrements
submitted by the Governor, including amendments.
The GF additions in this budget recommended by the Senate
Finance Sub-committee are for various projects in
Commercial Fisheries (3), Wildlife Conservation(7),
additional meetings for the Boards and Advisory
Commissions, and a five year harvest study on Lower
Kuskokwim Caribou for State Subsistence. The Governor's
request of $103.5 GF for the Habitat Lead position for
Gasline Projects was not approved.
The F&G Subcommittee adopted an amendment to add $102,550.0
GF to the Wildlife Conservation budget. The amendment
states "It is the intent of the legislature that the
Department of Fish and Game utilize portions of this
appropriation to takes steps necessary to protect the
interests of the State of Alaska in the management of its
lands, particularly for Intensive Management programs for
game for harvest". The State of Alaska was entitled to
receive one hundred and two million five hundred and fifty
thousand acres from the public lands of the United State in
Alaska when it became a state. This appropriation
establishes a fund of $1.00 for each acre of that federal
land entitlement.
Please see the attached reports for the details on these
budget changes.
It is our intention to allow Legislative Finance to do
technical adjustments if any are needed.
Co-Chair Hoffman commented that the report was requested by
Senator Wagner with the wish that the motion excluded the
$102,550,000. He noted last year's operating budget increase to
the Department of Fish and Game (DF&G). He understood the
importance of fisheries and game management for residents of the
state. He stressed the constitutional mandate for maximum
sustained yield to manage resources. He mentioned funding the
increase of stocks of game which were included in the report. He
requested a motion excluding $102,550,000 for inclusion.
9:45:59 AM
AT EASE
9:46:36 AM
RECONVENED
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Department of Fish and Game with the exclusion of $102,550,000
general funds to the wildlife conservation budget for inclusion
in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Co-Chair Hoffman WITHDREW his OBJECTION. The Department of Fish
and Game subcommittee report was ADOPTED.
9:47:33 AM
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
Senator Olson stressed the importance of the Department of
Health and Social Services.
The Sub-Committee for the Department of Health & Social
Services submits an operating budget recommendation and
report to the Senate Finance Committee for FY12 as follows:
Fund Source 11 Mgt Plan Gov Amd Sen Sub Difference
GF $997,506.5 $ 1,083,086.4 $1,082,283.5 $(802.9)
Federal $1,165,545.1 $1,268,074.9 $1,268,663.7 $588.8
Other $94,489.5 $99,350.2 $99,880.3 $530.1
Total $2,257,541.1 $2,450,511.5 $2,450,827.5
Position 11 Mgt Plan Gov Amd Sen Sub
PFT 3,481 3,489 3,482
PPT 85 84 84
Temp 120 117 118
Total 3,686 3,690 3,684
FY 2012 Senate Finance Sub-Committee Budget Recommendations
for H&SS /March 16, 2010
Personnel
The authorized position count for the department was
reviewed; the overall number of positions increased in the
Governor's request by four, and the sub-committee reduced
the overall number by six from the Governor's amended
request.
Budget Action
· Held 5 public meetings with the department to discuss
and explain the budget;
· Adopted the FY12 Adjusted Base; and
· Reviewed each of the increments and decrements
submitted by the Governor, including amendments.
The GF in this budget was increased from the FY12 adjusted
base, predominately due to Medicaid. Medicaid growth and
projections increased the budget $167 million in total,
$56,786.9 of which is GF. We are fortunate that our
Federal Medical Assistance Percentage (FMAP) is projected
to remain the same as in FY2011, or the Medicaid increases
would have been significantly more.
Another $6.5 million of GF increases are due to growth in
adult public assistance, general relief, PFD hold harmless,
and senior benefit payments.
Other increases were made 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:
· $5.4 million of GF in the Public Health appropriation
for a variety of items, including $1.75 million to
stabilize funding to public health nursing grantees,
$1.75 million for nurses to deal with the workload,
$750.0 for Tobacco Prevention and Control, funding for
maintaining improvements in the State Medical
Examiner's Office, and funding for a variety of other
public health programs.
· $3.3 million for Senior and Disabilities Services.
· The sub-committee accepted the Governor's Mental
Health request. This included over $5.4 million in
Mental Health Trust Funds, funding for Bring the Kids
Home (BTKH) programs, FASD treatment, and substance
abuse and mental health programs and services.
In addition to not funding most of the "unrealizable fund
changes" requested, only a few items requested by the
Governor, totaling approximately $800 thousand, were not
funded in this budget.
FY 2012 Senate Finance Sub-Committee Budget
Recommendations for H&SS /March 16, 2011
Please see the attached reports for the details on these
budget changes.
It is 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 impact of the
federal stimulus funding to the State to offset the
increases FMAP funding and other federal programs. Even a
small increase in the State's share will cost tens of
millions.
Adult obesity prevalence has doubled in Alaska over the
past two decades and an obesity prevention program is
necessary to prevent drastically increased future medical
costs. No additional funding has been provided in this
budget.
9:52:00 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Department of Health and Social Services for inclusion in CSHB
108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Co-Chair Hoffman relayed a conversation between himself and
Senator Olson regarding concerns about the Low Income Home
Energy Assistance Program (LIHEAP), which was under
consideration for substantial reductions. He mentioned writing a
letter to Karen Rehfeld regarding the state's responsibility to
the program in the event of federal budget reductions and
LIHEAP.
Senator Ellis wondered about the status of the human services
matching grant programs for Fairbanks, Anchorage, and Matsu. He
wondered if the funding was increased or decreased.
Senator Olson deferred the question to Mr. Bus.
Mr. Bus stated that he would provide a response for the
committee.
Senator Thomas answered that a $200,000 increment was added to
the human service community matching grant.
Senator Ellis asked if the $200,000 increment was spread across
three communities.
Senator Thomas responded that the increment was spread across
the three communities.
9:54:36 AM
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Department of Health and Social Services was ADOPTED.
9:54:42 AM
DEPARTMENT OF PUBLIC SAFETY
Senator Olson stated that the Department of Public Safety
allowed for an opportunity to deal with the Village Public
Safety Officer (VPSO) program, which was very important to rural
Alaska.
SIDNEY SEAY, STAFF, SENATOR OLSON, described the subcommittee
report for the Department of Public Safety.
The Senate Finance Budget Sub-Committee for the Department
of Public Safety submits an Operating Budget recommendation
and report to the Senate Finance Committee for FY12 as
follows:
Fund Source 11 Mgt Plan Gov Amd Sen Sub Difference (G-S)
Unrestricted $133,855.1 $141,936.5 $141,936.5 $0.0
GF
Designated GF 15,039.2 14,205.7 14,205.7 0.0
Other 18,195.3 20,683.9 20,683.9 0.0
Federal 18,415.9 11,630.4 11,830.4 200.0
Total $185,505.5 $188,456.5 $188,656.5 $200.0
Position 11 Mgt Gov Amd Sen Sub Difference (G-S)
Summary Plan
PFT 872 881 881 9
PPT 16 16 16 0
Temp 13 13 13 0
Total 901 910 910 9
BUDGET ACTION
· Held 3 public meetings with the department to
discuss and explain the budget
· Adopted the FY12 Adjusted Base,
· Reviewed each of the increments and decrements
submitted by the Governor, including amendments,
· Reviewed the authorized position count for the
department and authorized nine (9) new positions
for the department:
Three (3) AST for VPSO Oversight
Two (2) AST for a New Rural Post in
Northwest Alaska
One (1) Community Public Safety
Communications Coordinator
One (1) DVSA Subject Matter Expert
Two (2) staff for investigations of Internet
Crimes against Children
The Senate Finance Sub-Committee accepted the Governor's
amended proposal with the following adjustments and
comments:
· The subcommittee adds one-time funding of $200.0 GF to
the Victims for Justice Appropriation. This funding
reactivates the appropriation within the Department of
Public Safety.
A correction was made to the original CDVSA request to
replace expiring federal earmark funds with general funds
in the amount of $697.4. This was tied to the wrong grant
and the department recalculated the need and the correct
amount is $497.4.
9:57:35 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee report for
Department of Public Safety for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Senator McGuire expressed appreciation for the addition of two
increased positions for the investigation unit in the internet
child pornography unit.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Department of Public Safety was ADOPTED.
9:58:42 AM
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
Senator McGuire discussed the subcommittee recommendations for
the Department of Environmental Conservation.
Michael Pawlowski, Staff, Senator McGuire, discussed the
subcommittee report for the Department of Commerce, Community
and Economic Development.
RECOMMENDATIONS:
The Senate Finance Budget Subcommittee for the Department
of Environmental Conservation submits a recommended
operating budget for FY 2012 to the Senate Finance
Committee as follows:
Unrestricted General Funds (UGF) $19,293,700
Designated General Funds (DGF) $26,334,400
Other Funds $10,576,100
Federal Funds $23,215,200
TOTAL $79,419,400
BUDGET ACTIONS:
The Senate Finance Budget Subcommittee for the Department
of Environmental Conservation held six meetings with the
Department and analyzed all of the Governor's operating
budget transactions. In comparison the Subcommittee
recommends funding levels for FY 2012 that are:
1. A decrease of $48,800 from the FY 2012 adjusted base;
including increments in unrestricted general funds
($11,600), designated general funds ($110,900) and
federal receipts ($129,200) but a decrement in other
state funds ($300,500).
2. A decrease of $1,377,100 from the Governor's Amended
budget request; including decrements in unrestricted
general funds ($257,000), designated general funds
($620,100), other state funds ($150,000) and federal
receipts ($350,000).
The subcommittee rejected 2 of the 3 requests in the
Governor's amended FY 2012 budget request for additional
personnel and eliminated one vacant position.
TRANSACTIONS: All of the following transactions are made
against the fiscal year 2012 adjusted base.
Appropriation: Administration
Allocation: Office of the Commissioner
The subcommittee recommends correcting fund sources
for unrealizable personal services increases, a line
item transfer from personal services to services
($96,200) and the elimination of a vacant position
(PCN 18-7816).
Allocation: Administrative Services
The subcommittee recommends increasing federal
authorization ($250,000) for federal grant management
and a corresponding decrement in interagency receipt
authorization.
Allocation: State Support Services
The subcommittee recommends increments in multiple
fund sources to cover increased lease costs ($488,800;
including $235,900 in designated general fund) and a
decrement in unrealizable interagency receipts
($19,900).
Appropriation: Environmental Health
Allocation: Food Safety and Sanitation
The subcommittee recommends fund changes to correct
for unrealizable fund sources for increases in
personal services costs.
Allocation: Laboratory Services
The subcommittee recommends fund changes to correct
for unrealizable fund sources for increases in
personal services costs, an increase in statutory
designated program receipts to provide laboratory
testing to outside parties, the addition of one
microbiologist and related costs to support shellfish
testing. Funding for the microbiologist position
($80,000 general fund program receipts) is to be one-
time only and corresponding intent
language has been included in the subcommittee's
wordage recommendations.
Appropriation: Environmental Health (continued)
Allocation: Laboratory Services (continued)
The subcommittee further recommends a decrement to
reduce excess federal ($$350,000) and interagency
receipt authority ($150,000).
Allocation: Drinking Water
The subcommittee recommends fund changes to correct
for unrealizable fund sources for increases in
personal services costs, and an increment in fee
authority ($30,000) to fund technical assistance
required by new federal rules.
Allocation: Solid Waste Management
The subcommittee recommends fund changes to correct
for unrealizable fund sources for increases in
personal services costs and an increment in fee
authority ($40,000) to meet increased demand for
services.
Allocation: Air Quality
The subcommittee recommends an increment ($10,000
unrestricted general fund match) to match federal
funding ($10,000) for air quality monitoring in
Fairbanks to evaluate impact of gasline construction
activities. The subcommittee also recommended
accepting an increment in fee authority ($55,000) to
support gasline and resource development air quality
permitting. While the subcommittee at this time
rejected the majority of the increments requested in
the Governor's amended FY 2012 request related to gas
pipeline activities an exception was made for these
increment due to the special circumstances confronting
Fairbanks and the normal fee supported air quality
permitting programs.
Appropriation: Spill Prevention and Response
Allocation: Industry Preparedness and Pipeline
Operations
The subcommittee recommends an increment in
interagency receipt authority ($121,100) associated
with the in-state pipeline authorized under HB 369.
The subcommittee felt that this authority was
necessary in the event that further in-state gas
pipeline funding is made available through other
funding mechanisms.
Appropriation: Water
Allocation: Water Quality
The subcommittee recommends fund changes to correct
for unrealizable fund sources for increases in
personal services costs, mining permit fees, increased
fee authority ($60,000) for the wastewater discharge
program and a reduction in Ocean Ranger funds
($620,100) to more accurately reflect department
needs.
Allocation: Facility Construction
The subcommittee recommends fund changes to correct
for unrealizable fund sources for increases in
personal services costs and a fund source change from
Alaska Clean Water Fund to federal receipts for the
Alaska Clean Water Grant Fund.
TRANSACTIONS IN THE GOVERNOR'S FY 2012 AMENDED REQUEST
THAT WERE NOT ADOPTED BY THE SUBCOMMITTEE:
Appropriation: Environmental Health
Allocation: Air Quality
The subcommittee rejected the Governor's request for
$155,000 in unrestricted general funds for costs
related to support gasline and resource development
air quality permitting. Air quality permitting is
typically supported by fees from applicants and with
the State already contributing 90% of the cost of
permitting through the AGIA process the subcommittee
felt that unrestricted general fund increments were
not warranted at this time. The subcommittee further
rejected the corresponding request for an additional
PCN to support gasline permitting.
Appropriation: Spill Prevention and Response
Allocation: Contaminated Sites Program
The subcommittee rejected the increment in
unrestricted general funds ($20,000) to inventory
contaminated sites along the pipeline route. The
subcommittee felt strongly that these costs should be
borne by the State's licensee or other project
proponents either directly or through fees.
TRANSACTIONS IN THE GOVERNOR'S FY 2012 AMENDED REQUEST
THAT WERE NOT ADOPTED BY THE SUBCOMMITTEE (continued):
Appropriation: Water Quality
Allocation: Water Quality
The subcommittee rejected the Governor's request for
an increment of $82,000 in unrestricted general funds
to support gasline related storm water and permitting.
Without additional information on the progress of the
various gasline projects there was not sufficient
justification for the request. The subcommittee also
rejected the Governor's request for a position.
ADDITIONAL RECOMMENDATIONS:
1. The subcommittee strongly felt that more
information on gasline related expenditures was
required. The subcommittee was particularly concerned
about the requests to establish permanent positions
with unrestricted general funds for what is
essentially project specific permitting. More work
with the department needs to be done to determine if
additional permitting staff is needed to ensure the
timely processing of permit applications for all
resource development.
2. The subcommittee recommends intent language
directing the department to more accurately account
for interagency receipts in the Administrative
Services Division.
3. The subcommittee recommends intent language
directing the department to work with shellfish
producers to explore methods of lowering the cost to
the public of certifying the water quality of
shellfish areas. Although the departments' fees for
water quality testing are modest there is a
significant cost to the public of collecting and
shipping samples to the department. The subcommittee
strongly supports a vibrant shellfish industry in
Alaska and would like to see continued collaboration
between the department and the industry to protect the
public health without placing unnecessary burdens on
the industry.
4. The subcommittee recommends conditional language
for the Administrative Services and Air Quality
divisions to allocate the unexpended and unobligated
balances available on June 30, 2011 of the applicable
federal or program receipts and fees available to the
divisions.
5. The subcommittee is concerned that additional work
needs to be done with the department to develop a plan
to address declining revenues to the Oil/Haz fund.
The Senate Finance Subcommittee for the Department of
Environmental Conservation thanks the department for
the continued progress they have made in developing
rational regulations to protect the public and for
their vigilance in protecting Alaska's environment
while promoting responsible resource development.
ATTACHED REPORTS:
1. Budget Action Worksheet
2. Agency Totals; Senate Structure
3. Allocation Summary; Senate Structure
4. Transaction Compare; Senate Structure; Adjusted
Base and Senate Sub
5. Transaction Compare; Senate Structure; House and
Senate Sub
6. Transaction Compare; Senate Structure; Gov.
Amended and Senate Sub
7. Wordage Report; Senate Structure
Co-Chair Stedman MOVED to ADOPT The Department of Environmental
Conservation Subcommittee report for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
10:02:39 AM
Senator Ellis wondered about additional recommendations
regarding shellfish testing. He asked if the state support or
subsidy for paralytic shellfish poisoning would continue.
Senator McGuire clarified that a subsidy for paralytic shellfish
poisoning testing would continue. She expected further
recommendations from the department regarding future parity of
subsidy. The program would continue with the addition of one
position.
Co-Chair Hoffman discussed problems with the nuclear reactor in
Japan. He encouraged Senator McGuire to observe the issues of
radiation in the salmon industry.
Co-Chair Hoffman WITHDREW his OBJECTION. The Department of
Environmental Conservation Subcommittee report was ADOPTED.
10:05:24 AM
DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Senator McGuire thanked the co-chairs for their help in her
process. She thanked her subcommittee members and their staff.
She noted the large increment listed under executive order
number 115 from the governor. Alaska would now have the Alaska
Aerospace Development Corporation's budget. She believed that
the move from the Department of Commerce, Community and Economic
Development was appropriate. She pointed out that one final item
rested on the table; due to federal uncertainty, approximately
$4 million gap existed for the benefit of the Alaska Aerospace
Development Corporation.
10:07:18 AM
Mr. Pawlowski discussed the Department of Military and Veterans
Affairs subcommittee report.
RECOMMENDATIONS:
The Senate Finance Budget Subcommittee for the Department
of Military and Veterans Affairs submits a recommended
operating budget for FY 2012 to the Senate Finance
Committee as follows:
Unrestricted General Funds (UGF) $12,656,400
Designated General Funds (DGF) $28,400
Other Funds $16,327,500
Federal Funds $51,044,900
TOTAL $80,057,200
BUDGET ACTIONS:
The Senate Finance Budget Subcommittee for the Department
of Military and Veterans Affairs held four meetings with
the Department and analyzed all of the Governor's operating
budget transactions. The Subcommittee also took testimony
from the Alaska Aerospace Development Corporation on the
transfer of the corporation to the department under
Executive Order #115. Further, the Subcommittee reviewed
the corporation's request for an additional $4 million in
operating funds for FY 2012. Although the Subcommittee did
not include an increment for the corporation, it does
recommend that the full Finance Committee consider the
corporation's request for additional operating funds. In
summary the Subcommittee recommends:
1. An overall increase of $327,100 from the adjusted base;
including an increment of $329,300 in unrestricted general
funds and a decrement of $2,200 in federal receipts.
2. An overall decrease of $181,800 from the Governor's
Amended budget; including a $181,800 decrement in other
state funds.
TRANSACTIONS: All of the following transactions are made
against the fiscal year 2012 adjusted base.
Appropriation: Military and Veteran's Affairs; Allocation:
Office of the Commissioner.
Fund source change from interagency receipts to CIP
receipts.
Amount: $78,400 CIP receipts.
Description: This is a fund source change from
interagency receipt authorization to CIP receipts
requested to cover personnel costs for administrative
and information technology services associated with
projects funded under CIP projects. In previous years
this component has been underfunded in CIP receipts.
This transaction was included in the Governor's FY
2012 request.
Appropriation: Military and Veteran's Affairs; Allocation:
Homeland Security and Emergency Management.
Fund source change from interagency receipts to CIP
receipts.
Amount: $108,200 CIP receipts.
Description: The change from interagency receipts to
capital improvement project receipts to cover an
anticipated increase in personal services that will be
billed to capital improvement projects. This
transaction was included in the Governor's FY 2012
request.
Appropriation: Military and Veteran's Affairs; Allocation:
Army Guard Facilities Youth Maintenance.
General Fund Match funding for a Building Maintenance
Specialist II.
Amount:$40,000 General Fund Match
Position 09-0203 is reclassified from Aircraft Rescue
Firefighter Specialist II (Range 12) to a building
Management Specialist (Range 19). The balance required
to fund the reclassified position is in federal funds.
This transaction was included in the Governor's FY
2012 request.
Appropriation: Military and Veterans' Affairs; Allocation:
Air Guard Facilities Maintenance.
Transfer out of the Air Guard Facilities allocation of
two vacant positions (PCNs 09-0242 and 09-0243) to the
Veterans' Services allocation.
Description: The two currently vacant positions will
be transferred to the expanded Veterans' Services
Office [see transaction #7]. The closure of the Kulis
Air National Guard base makes these positions
unnecessary. This transaction was included in the
Governor's amended FY 2012 request.
Appropriation: Military and Veterans' Affairs; Allocation:
Air Guard Facilities Maintenance.
Line Item Transfer from personal services to services.
Amount: $142,200
Description: The line item transfer is intended to
bring personal services into vacancy guidelines. This
transaction was included in the Governor's FY 2012
request.
Appropriation: Military and Veterans' Affairs; Allocation:
Veterans' Services.
Fund source change from federal receipts to
unrestricted general funds.
Amount: $2,200 unrestricted general funds.
Description: Correct unrealizable fund sources for
personal services increases.
Appropriation: Military and Veterans' Affairs; Allocation:
Veterans' Services.
Transfer into the Veterans' Services allocation of two
vacant positions (PCNs 09-0242 and 09-0243) from the
Air Guard Facilities Maintenance [see transaction #4]
allocation.
Description: The amended FY 2012 request to the
Legislature proposed an expansion of the Veterans'
Services office in Anchorage from two to four
personnel. The subcommittee determined that increasing
demand for services from department personnel and
Veterans' Service Organizations warrants an increase
in staffing in the division. The transfer of vacant
positions into the allocation enables an increase in
staffing while maintaining the overall personnel level
in the department. This transaction was included in
the Governor's amended FY 2012 request.
Appropriation: Military and Veterans' Affairs; Allocation:
Veterans' Services.
Increment to fund increased staff in the Veterans'
Services office.
Amount: $234,700 unrestricted general funds.
Description: The Veterans' Services office provides
state funded assistance to veterans in Alaska that
supplements federal benefits. The subcommittee
determined that the increasing demand from Alaska
veterans for services warrants an expansion of the
Veterans' Services office. The vacant positions
transferred into the allocations were previously
funded with federal receipts which may not be used to
fund these positions in the Veterans' Services
allocation. The subcommittee determined that a general
fund increment was justified given the State's
interest in providing quality assistance to veterans
and the additional benefits brought into the economy
by the efforts of current staff within the division.
This transaction was included in the Governor's
amended FY 2012 request at $286,100 in unrestricted
general funds.
Appropriation: Military and Veterans' Affairs; Allocation:
Veterans' Services.
One time increment to fund the relocation of the
Veterans' Services office to the Muldoon area of
Northeast Anchorage near the Veterans' Administration
clinic.
Amount: $51,400 unrestricted general funds.
Description: The amended request for $286,100 in
unrestricted general funds included items related to
the establishment of the office that clearly could be
funded on a one time basis. The subcommittee divided
the amended request between funds required on an
ongoing basis [see transaction #8] and those that
would only be needed once.
Language recommendations
The subcommittee recommended intent language in the
Veterans' Services allocation to clarify that the new
Veterans' Services office should be located in the Muldoon
area of Anchorage near the Veterans Administration clinic
in Northeast Anchorage.
The subcommittee recommended revised conditional language
related to the unexpended and unobligated balance as of
June 30, 2011 of the federal and corporate receipts of the
Alaska Aerospace Corporation.
TRANSACTIONS IN THE GOVERNOR'S FY 2012 AMENDED REQUEST THAT
WERE NOT ADOPTED BY THE SUBCOMMITTEE:
Appropriation: Military and Veteran's Affairs; Allocation:
Alaska Military Youth Academy.
Increment in interagency receipts from the Department
of Education.
Amount: $181,800 interagency receipts.
Description: The amount was determined to be, after
consultation with the department, excess authority.
ADDITIONAL RECOMMENDATIONS:
The subcommittee took extensive testimony from the Alaska
Aerospace Corporation on the additional need for bridge
funding from the State of Alaska. Ongoing budget
deliberations over the federal budget have put federal
funding for the corporation in jeopardy for FY 2012. The
corporation identified a need for $8 million in operations
and sustainment funding [$4 million is included in the
Governor's FY 2012 capital budget] for FY 2012. While the
State has contributed $26,629,000 to the corporation since
1993, federal receipts ($144,811,000) and launch revenues
($134,348,000) have provided the majority of the
corporation's budget. The corporation believes that federal
receipts will be available when a federal budget is passed
by Congress and the corporation is currently pursuing a key
federal contract that will provide revenues for the
foreseeable future. However, without $8 million from the
state in the interim the corporation's ability to remain
competitive and pursue contracts may be irreparably harmed.
The subcommittee strongly recommends that the Senate
Finance Committee consider the Alaska Aerospace
Corporation's request for adequate sustainment funding and
that failing to do so may jeopardize a valuable state asset
and potential growth sector for our economy.
Co-Chair Stedman MOVED to ADOPT the Department of Military and
Veterans Affairs Subcommittee Report.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Senator Olson queried the FY 11 budget for Department of
Military and Veterans Affairs.
Mr. Pawlowski responded that the FY 11 management plan for
Department of Military and Veterans Affairs was $78,605,500. He
believed that $26 million was added as a result of the inclusion
of the Alaska Aerospace Corporation.
Senator Olson wondered how the increments and decrements would
relate to the aerospace program in the future.
Mr. Pawlowski replied that there was an issue of bridge
financing to allow funding with long term contractual revenues.
Co-Chair Hoffman WITHDREW his OBJECTION. The Department of
Military and Veterans Affairs Subcommittee Report ADOPTED.
10:10:27 AM
ALASKA COURT SYSTEM
Senator Egan introduced the subcommittee report for the Alaska
Court System.
JESSE KIEHL, STAFF, SENATOR EGAN, provided the subcommittee
report for the Alaska Court System.
The Senate Finance Budget Subcommittee for the Alaska Court
System submits an Operating Budget to the Senate Finance
Committee for FY 12 as follows:
FY11 Mgt FY12 Adj Senate
Source Pln Base Gov Amend Subcom House
Unrestricted GF 94,841.3 97,254.2 101,439.1 99,376.9 100,641.1
Designated GF 518.0 518.0 518.0 518.0 518.0
Other 1,848.9 754.5 1,824.7 1,863.8 1,824.7
Federal Funds 1,675.6 1,675.6 1,675.6 1,675.6 1,675.6
Total 98,883.8 100,202.3 105,457.4 103,434.3 104,659.4
Positions
PFTs 740 740 759 749 756
PPTs 46 46 47 48 47
Temps 22 22 22 22 22
Total Positions 808 808 828 819 825
The Subcommittee held three meetings with the court system
and took the following actions:
Budget Action
The subcommittee accepted the Governor's amended proposal
with the following adjustments:
· Removed $250.0 GF from a salary adjustment transaction in
calculating the FY 12 adjusted base. These funds are
properly considered as an increment request to eliminate
the vacancy savings requirement for judicial officers in
the trial courts. The trial courts have approximately 73
judicial officers statewide, and are capable of carrying
the current vacancy factor of roughly 1.7 percent.
· Denied requests in the appellate courts for furnishings
and a staff attorney position upgrade.
· Denied the request for $277.4 GF to cover potential
increases in the cost of Nome court space. In the event
the cost of current Nome court space increases
dramatically, or it becomes unavailable, a supplemental
request would be appropriate.
· Reduced a request for $934.8 GF and 12 positions in Trial
Courts by half. This continues the legislature's multi-
year phased approach to funding the 'No Dark Courtrooms'
initiative. Six new positions are authorized.
· Approved $24.8 GF to increase the hours of a part-time
position supporting custody investigators. In the
governor's request this was combined with $261.6 and two
positions for the trial courts, both of which were
denied.
· Denied requests for $424.0 GF across the Court System for
implementing an increased geographic pay differential.
This is the third-largest increment request submitted,
but is not a contractual obligation of the state, nor
does funding it improve services to the public since the
Court System has seen a dramatic drop in staff turnover
in recent years.
· Denied $150.0 GF for computer replacements. The Court
system has $350.0 in its budget base, which should be
adequate if computing resources are carefully managed.
· Reduced a request for $310.5 GF and three administrative
positions to $111.8 and one PFT for a programmer to
continue work with the Multi-Agency Justice Integration
Consortium. The subcommittee expects efficiencies in the
Departments of Public Safety will be visible by FY 13.
· Added $39.1 GF and $39.1 MHTAAR in the Administration &
Support component to continue funding for the Court
System's existing domestic violence coordinator position.
This transaction adds one permanent part-time position
because the incumbent PCN is a temp. The grant funding
for this position has ended but the need is as great as
ever, and will increase as the Court System both enhances
its own work and responds to legislative and executive
branch initiatives to reduce domestic violence.
Recommendations
The subcommittee recommends the Senate Finance Committee
finish distributing funds to cover the cost of transcripts
provided to state agencies into the appropriate agency
budgets. This process began in FY 11 and accurate
information is now available to complete the work, as
directed in last year's intent language.
10:15:37 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Alaska Court System for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Senator Ellis asked the status of therapeutic courts.
Mr. Kiehl responded that the therapeutic courts were reviewed by
the subcommittee and funded with the full governor's amended
recommendation.
Senator Olson asked about options for the Nome Court System.
Mr. Kiehl responded that the Nome court system was housed in an
old federally owned building. The federal government was
charging the state significantly less than its cost. The federal
government planned to sell the building. The Alaska Court System
did not have an alternate plan if a new buyer purchased the
building. The subcommittee was not comfortable providing $277
thousand more than the current Nome space costs as an increment
in the budget. The subcommittee strongly recommended a
supplemental budget item for the actual cost of space for the
Nome Court System.
Senator Olson asked the proposed amount for supplemental
expenses.
Mr. Kiehl responded approximately $270 thousand, based on the
cost of lease space in Nome.
Senator Olson expressed concern for the situation.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Alaska Court System was ADOPTED.
10:20:22 AM
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
Senator Egan thanked the subcommittee members for their
contribution. He believed that the governor provided the
subcommittee with a reasonable budget. The subcommittee
recommended $83.1 million in general funds, $25.5 million in
other funds, and an additional $233 million in federal funds.
Jesse Kiehl highlighted the budget recommendations for the
Department of Education and Early Development.
The Senate Finance Budget Subcommittee for the Department
of Education & Early Development submits an Operating
Budget to the Senate Finance Committee for FY 12 as
follows:
FY11 Mgt FY12 Adj Senate
Fund Source Gov Amend House
Pln Base Subcom
Unrestricted GF 58,939.2 56,555.1 69,120.8 69,182.0 64,426.0
Designated GF 12,297.1 12,321.2 13,958.4 13,958.4 13,958.4
Other 22,897.2 23,196.5 25,506.7 25,506.7 25,142.6
Federal Funds 215,201.6 215,461.9 233,350.5 233,350.5 230,456.2
Total 309,335.1 307,534.7 341,936.4 341,997.6 333,983.2
Positions
PFTs 337 337 337 337 337
PPTs 12 12 12 12 12
Temps 4 4 8 8 8
Total Positions 353 353 357 357 357
The Subcommittee held four meetings with the department and
took the following actions:
Budget Action
Accepted the Governor's amended proposal with the following
adjustments:
· Removed $8.0 GF travel funding for the Council on
Education for Military Children. The fiscal note
attached to the bill joining the council instructed the
department to fund participation from within its existing
budget. The subcommittee recommends funding $13.1 to pay
Alaska's membership, as requested by the governor.
· Removed $18.3 GF from the travel line in Executive
Administration. After discussions with the department,
this will provide adequate resources for responsible
state board and commissioner's office travel and bring
'truth in budgeting' to this component.
· Added $87.5 in G/F Match to the grants line in the Alaska
State Council on the Arts to fully fund the state match.
These added dollars will be used to expand the reach of
the Artists in Schools program to more Alaska children.
· Increased GF to the AlaskaAdvantage grant program by
$7,121.9. The unmet need of Alaskans seeking
postsecondary education at Alaska institutions is close
to $9 million. The subcommittee's recommendation invests
in Alaskans who are struggling to access the higher
education they're already pursuing.
· Reduced GF to the Alaska Performance Scholarship program
by $7,121.9. This recommendation allows the department to
begin implementing the program and gather real data on
student demand, rather than rely on estimates. By
implementing the program gradually, Alaska school
districts will have the chance to improve course
offerings to students. Many small and rural districts
currently lack adequate course offerings for their
students to access the APS dollars, creating an unequal
opportunity.
10:23:52 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Department of Education and Early Development for inclusion in
CSHB 108.
Co-Chair Hoffman OBJECTED.
Senator Olson addressed pre-k program funding. He asked about
the governor's recommendations.
Mr. Kiehl responded that the subcommittee recommended funding
the full $2 million as requested by the governor.
Senator Olson asked about the New Beginnings program.
Mr. Kiehl replied that the Best Beginnings program increased
funding last year. He mentioned significant subcommittee
discussion regarding the addition of funding to match last
year's one-time funding level.
Senator Egan stated that the matter would be discussed further
in conference committee.
Senator McGuire promoted the merit based scholarship program.
She wondered about school districts and their preparation for
the upcoming scholarship program. She understood that
preparation was necessary, but she wished to see the program up
and running.
10:26:49 AM
Senator Egan stated that some funding levels were switched from
performance based to needs based. He planned to work with the
administration to arrive at better guidelines for future
progression. He explained that the needs of additional school
children remained the greatest need of the subcommittee.
Co-Chair Hoffman removed his OBJECTION. The subcommittee report
for the Department of Education and Early Development was
ADOPTED.
10:28:10 AM
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
The Senate Finance Subcommittee for the Department of Labor
& Workforce Development submits an operating budget to the
full Senate Finance Committee for FY12 as follows:
FY11 Mgt FY12 Adj Senate House-
Fund Source Pln Base Governor Subcom Amds
29,301.3 29,625.9 31,246.0 31,221.2 29,901.0
Unrestricted GF
34,374.0 33,815.7 34,851.9 34,700.9 34,901.9
Designated GF
27,054.9 27,709.7 26,022.9 25,922.9 25,722.9
Other
101,716.101,716.101,716.
107,969.4 99,526.4
Federal Funds 8 8 8
193,837.193,561.192,242.
198,699.6 190,677.7
Total
6 8 6
FY11 Mgt FY12 Adj Governor Senate House-
Position Changes Pln Base Subcom Amds
848 841 842 841 841
PFTs
116 116 120 116 118
PPTs
56 48 51 48 51
Temps
Budget Action:
1. Adopted the Governor's amended FY12 budget proposed
increments & decrements for:
a. Alaska Vocational Technical Center
i. $1,006.8 Fed Rcpts for Increase in Pell
Grants & Direct Student Loans
ii. $250 UGF for maintenance services
iii. $55 DGF for custodial services
iv. $300 Statutory Designated Program Receipts
for medical program lease expenses
b. Employment Security
i. $2,106.5 Fed Rcpts to increase authority to
support two new federal grants in Employment &
Training Services
ii. $1.165.7 Federal ARRA Funds for a one-time
increase to support Unemployment Insurance
Administration
c. Business Partnerships
i. $1,089 in STEP funds to provide additional
training opportunities for Alaskans
2. Denied the Governor's amended FY12 budget proposed
increments & decrements for:
a. Alaska Vocational Technical Center
i. $48 UGF & $51 DGF for a mariner training
program instructor
ii. $226.8 UGF & $100 DGF to establish a new
registered nurse training program
iii. $100 Inter-Agency Receipts for the Distance
Education Consortium Training Support
3. Modified the Governor's amended FY12 budget proposed
increments & decrements for:
a. Business Partnerships
i. $1,250.0 UGF to implement a career &
technical education plan & grant program
1. Governor requested $1,000 UGF and a new
position. The Senate Subcommittee
recommends a funding level of $1,250 UGF and
denies the request for a new position. By
denying the position request, it is the hope
of the subcommittee that more funds will be
made available for school grants.
b. Alaska Vocational Technical Center
i. $55 Inter-Agency Receipts for authorization
to support new custodian
1. Governor requested $55 UGF and a new
position. The Senate Subcommittee
recommends approving the funding but denies
the position. By denying the position
request, it is the hope of the subcommittee
that the department considers overtime for
existing staff or contracting with a private
janitorial firm.
ii. $181.8 Statutorily Designated Receipts for
Health Professional Opportunity Training
1. Governor requested $181.8 Stat Desig
and two new positions. The Senate
Subcommittee recommends approving the funds,
but denying the two new positions. It is
the hope of the subcommittee that these
programs can be delivered utilizing existing
personnel.
4. Intent Language:
a. Vocational Rehabilitation
i. It is the intent of the legislature that the
Department of Labor & Workforce Development work
actively with tribal entities to improve
vocational rehabilitation services provided to
Alaskans across the state, particularly in rural
areas.
b. Alaska Vocational Technical Center
i. It is the intent of the legislature that,
when the Health Professions Opportunity federal
grant received by the Cook Inlet Tribal Council
expires on September 30, 2015, the programs that
have been expanded with this funding be
reconsidered. It is the understanding of the
legislature that the department will discontinue
these programs if federal funding is not
available.
5. Differences from House Finance
1. Business Partnerships
a. $1,089.9 DGF (STEP) increase in State
Training and Employment Program Authorization:
House made increment a onetime item, Senate
proposes moving funding into the base.
2. Alaska Vocational Technical Center
a. $1,250 UGF to Implement a Career & Technical
Education Plan & Grant Program: House did not
fund governor's $1,000 UGF proposal, Senate
proposes funding at $1,250 UGF with a greater
focus on grants to school districts.
b. $99.0 ($48 UGF & $51 DGF) for AVTEC Mariner
Training Program Instructor: House funded
proposed position and increase, Senate did not.
c. $300 Statutorily Designated Receipts to
receive Cook Inlet Tribal Council Grant for
Medical Program Lease Expenses: House did not
approve request, Senate proposes allowing
Department to utilize funds in order to best
determine program space needs for delivery in
Anchorage.
d. $100 Inter-Agency Receipts for Distance
Education Consortium Training: House approved
receipt of funds and the creation of a new
position. Senate declined both requests.
e. $181.8 Statutorily Designated Receipts to
receive grant funds for Health Professionals
Opportunity Training: Both House and Senate
approved receipt of funds, but the Senate did not
approve the two new positions requested by the
governor and encourages the Department to advance
the program with existing positions.
f. $55 Inter-Agency Receipts for authorization
to support custodial work: Both House and Senate
approved funding, but the Senate did not approve
the new position.
10:32:58 AM
Co-Chair Stedman MOVED to ADOPT Department of Labor and
Workforce Development
Co-Chair Hoffman OBJECTED for purpose of discussion.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for the Department of Labor and Workforce Development was
ADOPTED.
10:33:32 AM
DEPARTMENT OF NATURAL RESOURCES
The Senate Finance Subcommittee for the Department of
Natural Resources submits an operating budget to the full
Senate Finance Committee for FY12 as follows:
FY11 Mgt FY12 Adj Senate House-
Fund Source Pln Base Governor Subcom Amds
69,669.4 66,560.9 76,728.5 75,613.5 76,762.7
Unrestricted GF
24,931.0 25,702.8 25,647.3 25,647.3 25,647.3
Designated GF
33,970.3 34,778.2 34,790.3 35,213.3 35,101.3
Other
16,782.7 17,055.8 16,640.7 16,640.7 16,640.7
Federal Funds
153,806.153,114.154,152.
145,353.4 144,097.7
Total 8 8 0
FY11 Mgt FY12 Adj Governor Senate House-
Position Changes Pln Base Subcom Amds
776 776 782 782 784
PFTs
249 248 248 248 248
PPTs
98 98 98 98 98
Temps
Position Changes in DOLWD:
1. Adopted the Governor's amended FY12 budget proposed
increments & decrements for:
a. Resource Development Appropriation
i. $200 UGF for Arbitration of Oil & Gas Royalty
Issues.
ii. $300 UGF OTI for an Increase in Funding for
Arbitration of Oil & Gas Royalty Issues.
iii. $802 UGF for Public Land
Stewardship - Mine Permitting.
iv. $240 UGF for Continued Cooperation with federal
agencies on OCS permitting.
v. $400 Statutory Designated Funds for new mining,
oil and gas permitting.
vi. $671 UGF for Oversight of Federal Land
Transfers.
vii. $400 UGF for Forest
Management & Best Practices.
b. State Public Domain & Public
Access Appropriation
i. $100 UGF for Recordable Disclaimer of Interest
Fees.
ii. $599 UGF for RS2477 Access Assertion Litigation
in the Fortymile/East Alaska area.
c. Statewide Fire Suppression
Appropriation
i. $390 UGF for the Wildland Fire Academy.
2. Denied the Governor's amended FY12 budget
proposed increments & decrements for:
a. Resource Development Appropriation
i. $377.5 UGF for AGIA Public Information &
Participation.
3. Modified the Governor's amended FY12 budget
proposed increments & decrements for:
a. Resource Development Appropriation - AGIA
Line Items: It is the recommendation of the
subcommittee that proposed AGIA increments be
funded as onetime items in the FY12 Operating
Budget
i. $800 UGF OTI for AGIA Commercial Monitor
& Advisor.
ii. $1,290.0 UGF OTIA for
AGIA Coordinator's Staff and Capacity.
iii. $1,150.0 UGF OTI for
AGIA Contractors & Consultants.
b. Resource Development Appropriation
i. $100 UGF for
Continuation of Certified Seed Potato Program -
North Latitude Plant Material Center
1. Governor
requested $200 UGF.
ii. $710.6 UGF OTI and three new positions
for Improving Efficiency of Land and Water Use
Application Process.
1. Governor requested
$1,421.1 UGF and six new.
The Subcommittee adopts the following amendment to
the Governor's proposed FY12 budget for the
Department of Natural Resources:
c. Resource Development.
i. $498.7 MHTAAR Funds and
three new positions.
d. Appropriation and
Allocation Structure Change.
i. The Senate
Subcommittee accepts the reorganization of the
Department of Natural Resources proposed by
Legislative Finance and approved by the other
body. A diagram showing the proposed change is
attached to this report.
4. Differences from House
Finance
1. Resource Development
a. AGIA Items - The Senate funds AGIA lines as
onetime items, the House puts the funding
into the base.
b. Guide Concession Area Program - The Senate
funded the $120 UGF item that is supported by
the department, the governor and the Board of
Game. The other body did not.
c. Public Land Stewardship - The House funded
this $802 UGF line as a onetime item, the
Senate proposes moving this funding into the
base.
d. Land Sales for Southeast AK Region - The
House funded this $105 UGF line as a onetime
item, the Senate proposes moving this funding
into the base.
e. Oversight of Federal Land Transfers - The
House funded this $671 UGF line as a onetime
item, the Senate proposes moving this funding
into the base.
f. North Latitude Plant Material Center - The
other body added $20 UGF to the governor's
$200 UGF request. The Senate Subcommittee
proposes funding this line at $100 UGF.
g. Mining and Land Development - The other body
recommended a funding increment of $1,421.1
UGF and six new positions.
h. Mental Health Trust Lands Administration -
The other body approved an increment of
$3,279.4 MHTAAR Funds. The Senate
Subcommittee recommends the full $3,391.4
MHTAAR request from the Mental Health
Trustees be funded.
2. Appropriation and Allocation Structure Change
a. The Senate Subcommittee recommends
maintaining the AGIA Coordinator position
within the Department of Natural Resources.
The other body's budget moves the position to
the Office of the Governor.
10:38:10 AM
Co-Chair Stedman MOVED to ADOPT the subcommittee report for the
Department of Natural Resources for inclusion in CSHB 108.
Co-Chair Hoffman OBJECTED for purpose of discussion.
Senator Olson asked about the issue of the Coastal Zone
Management program and its sunset date of June 30, 2011. He
wondered if consideration was given, when creating the budget,
that the office would be closed.
Senator Thomas responded that subcommittee discussion occurred
about the topic. He assumed that the program would be extended
for another year.
Senator Olson asked the amount of the Coastal Zone Management
budget.
Co-Chair Hoffman considered various methods of funding the
component. He suggested that if the program was extended then
the needs would be addressed with a fiscal note.
Co-Chair Hoffman WITHDREW his OBJECTION. The subcommittee report
for Department of Natural Resources was ADOPTED.
10:40:27 AM
Co-Chair Stedman MOVED that the Legislative Finance Division
accumulate the subcommittee reports into the bill and perform
the technical adjustment necessary.
There being NO OBJECTION, it was so ordered. Co-Chair Hoffman
commented on upcoming public testimony for the operating budget.
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