Legislature(2009 - 2010)SENATE FINANCE 532

03/23/2010 09:00 AM FINANCE


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09:08:25 AM Start
09:09:22 AM HB302
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 300 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 302 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 300(FIN)                                                                                                
                                                                                                                                
       "An Act making appropriations for the operating and                                                                      
       loan program expenses of state government, for certain                                                                   
       programs, and to capitalize funds; and providing for                                                                     
       an effective date."                                                                                                      
                                                                                                                                
CS FOR HOUSE BILL NO. 302(FIN)                                                                                                
                                                                                                                                
       "An Act making appropriations for the operating and                                                                      
       capital         expenses         of      the      state's         integrated                                             
       comprehensive mental health program; and providing for                                                                   
       an effective date."                                                                                                      
                                                                                                                                
9:09:22 AM                                                                                                                    
                                                                                                                                
Co-Chair      Hoffman      explained       the    process      for    hearing      the                                          
Senate Finance Committee's budget subcommittee reports.                                                                         
                                                                                                                                
DEPARTMENT OF FISH AND GAME SUBCOMMITTEE                                                                                        
    Positions           Plan             Gov Amd       Sen Sub       S)                                                       
       PFT              910              912              915                3                                                  
       PPT              766              760              762                2                                                  
      Temp               66              65                65                 -                                                 
· SE Region:                                                                                                                  
       o Added $50.0 of GF to SE Region Fisheries Management                                                                    
           for a collaborative effort with the industry and                                                                     
           fishermen to better determine the SE Red King Crab                                                                   
           biomass.                                                                                                             
       o Added $600.0 UGF for Southeast Region Stock                                                                            
           Assessments, Monitoring, and Other Projects                                                                          
                                                                                                                                
·   Central    Region:     Added    $523.0     of  UGF   and   1  PFT   for   Salmon                                          
    Research and Management Projects                                                                                            
                                                                                                                                
·   AYK   Region:     Added    $400.0     of   UGF   and   3   pcns   (2   PFTs    and                                        
    1PPT) for Salmon Research and Management Projects.                                                                          
                                                                                                                                
· Subsistence Division:                                                                                                       
                                                                                                                                
       o Added $84.6 of UGF for a F&G Regional Regulatory                                                                       
           Program Assistant position in Bethel to coordinate                                                                   
           local fish and game advisory committees.                                                                             
       o Added $260.0 of UGF for Yukon Chinook Salmon                                                                           
           Disaster Research                                                                                                    
                                                                                                                                
Co-Chair        Hoffman        reported        that      the     state       has      a                                         
constitutional        mandate      to   manage    for    sustained      yield.     The                                          
members     of   the   subcommittee        maintain     that    if   the   state    is                                          
truly     managing      for    sustained       yield,     there     would    not    be                                          
problems      with    low    runs    of   fishery      stocks     throughout       the                                          
state.    The    subcommittee       is   adding    funds    to   address     some   of                                          
the    problems     on   the    Yukon    River,     in   Southcentral        Alaska,                                            
and   in   Southeast      Alaska.     This    is   the   largest     increase      the                                          
department       has   had    in   over   two    decades;      however,     at   $1.6                                           
million      it    is   small     compared       to   the    over     $50    million                                            
increase to education's budget.                                                                                                 
                                                                                                                                
9:13:43 AM                                                                                                                    
                                                                                                                                
OFFICE OF THE GOVERNOR SUBCOMMITTEE                                                                                             
                                                                                                                                
Mr.    Grussendorf         reported      on    the     budget      action,      which                                           
matches the governor's amended request:                                                                                         
                                                                                                                                
The    Senate    Finance      Budget     Subcommittee       for    the   Office     of                                          
the    Governor      submits      an   Operating       Budget     to    the   Senate                                            
Finance Committee for FY 10 as Follows:                                                                                         
                                                                                                                                
                       10 mgt.                                                                                                  
 Fund Source                                                                                                                  
                         plan          Fy11 Gov Amd           Sen Sub         Sen to Gov                                        
    General                                                                                                                     
  Funds           $22,485.0     $     2 6 ,639.4    $   2 6 , 6 3 9.4         -                                                 
    Federal                                                                                                                     
 Funds             $187.6         $ 1 8 9 . 9         $   1 8 9 . 9             -                                               
 Other Funds           $ 834.5        $ 7 5 4.1        $   7 5 4 . 1           -                                                
                                                                                                                              
 Positions                                                                                                                    
                    10 mgt plan 11 Gov Amd.                 Sen. Sub         Sen to Gov                                         
  PFT                156                156                156                 -                                                
  PPT                 0                   0                 0                  -                                                
 Temp                23                  52                52                  -                                                
                                                                                                                              
The Subcommittee held one meeting with the Department and                                                                       
took the following actions:                                                                                                     
                                                                                                                                
Budget Action                                                                                                                 
                                                                                                                              
The Senate Finance Budget Subcommittee on the Office of the                                                                   
Governor submits an operating budget for FY11 as follows:                                                                     
                                                                                                                                
    · The Sub-Committee budget authorizes no additional                                                                         
       general funds than the Governor's Amended FY11                                                                           
       request.                                                                                                                 
    · The FY11 subcommittee budget requests a total                                                                             
              increment from FY11 Adjusted Base of $3,845.0 general                                                             
              funds and 29 additional temporary employees described                                                             
       below.                                                                                                                   
    · The Governor requested a status-quo budget for FY11                                                                       
              with two significant one-time increments and two minor                                                            
       increments associated with REAA.                                                                                         
    · elections and redistricting. $3,693.8 was requested                                                                       
       along with 29 part time positions to run the 2010                                                                        
       elections. The amount of this funding is consistent                                                                      
       with the prior election cycle.                                                                                           
    · $6,500.0 was requested for continuing in-state gas                                                                        
       line work in the language section of the budget. As                                                                      
       this has been an issue important to the legislature                                                                      
              and perceptions differ on the project, in the context                                                             
       of overall gas monetization activities, it is not                                                                        
       funded in the subcommittee close-out report and will                                                                     
       be considered along with all other FY11 gas-line                                                                         
       appropriation requests in the Standing Committee.                                                                        
                                                                                                                                
Senator Olson inquired about the 29 additional temporary                                                                        
employees. Mr. Grussendorf said that number is consistent                                                                       
with prior election cycles.                                                                                                     
                                                                                                                                
9:15:49 AM                                                                                                                    
                                                                                                                                
LEGISLATURE SUBCOMMITTEE                                                                                                        
                                                                                                                                
Mr. Grussendorf shared the budget action:                                                                                       
                                                                                                                                
The Senate Finance Budget Subcommittee for the Legislatures                                                                     
Operating Budget submits this recommendation to the Senate                                                                      
Finance Committee for FY 11 as follows:                                                                                         
                                                                                                                                
                     10 mgt.          11 Gov                                                                                    
 Fund Source                                                                                                                  
                        plan            Amd          Sen Sub Difference                                                         
 General                   $                              $                                                                     
 Funds               65,730.0 $68,249.0 67,111.6                     $1,137.0                                                   
 Federal                                                                                                                        
 Funds                     0               0       0                       0                                                    
                                                       $                                                                        
 Other Funds                                                           $73.0                                                    
                      $340.0          $340.0  413.0                                                                             
                                                                                                                              
                      10 mgt          11 Gov                         Sen to                                                     
   Positions                                                                                                                  
                        plan           Amd.         Sen. Sub           Gov                                                      
       PFT              246             246             247              1                                                      
       PPT              280             280             281              1                                                      
      Temp                0              0               0               0                                                      
                                                                                                                                
Budget Action                                                                                                                 
                                                                                                                              
The Senate Finance Budget Subcommittee on the Legislature                                                                     
submits an operating budget for FY11 as follows:                                                                              
    · The committee authorizes $1,137.0 less general funds                                                                      
       and 5 less employees than the Legislature's initial                                                                      
       FY11 request.                                                                                                            
    · The subcommittee proposal accepts both the decrement                                                                      
              for the amount no longer needed for long term per diem                                                            
       and the corresponding transaction increasing                                                                             
       legislator salary and benefits as recommended by the                                                                     
       State Officers Compensation Commission.                                                                                  
    · The increase proposed for legislator's annual                                                                             
       allowance accounts has not been accepted pending                                                                         
       further deliberations and final determinations by                                                                        
       Legislative Council.                                                                                                     
    · Line Item Transfers for budget realignment and                                                                            
       authorization for increased I/A Rcpts have been                                                                          
              authorized for Legislative Budget and Audit (LB&A) and                                                            
       Legislative Council.                                                                                                     
    · The 4 positions associated with LB&A's request for                                                                        
       additional auditors are not authorized at this time.                                                                     
              The Legislative Auditor is directed to first reassess                                                             
       the effectiveness of contract audit services. Should                                                                     
       this assessment conclude the need for additional                                                                         
       personnel, the Chair and Vice Chair of the LB&A                                                                          
       committee may authorize such action.                                                                                     
    · $600.0 excess GF spending authority in the LB&A                                                                           
       appropriation was transferred to the Legislative                                                                         
       Council appropriation to provide assurance that                                                                          
              sufficient authority exists there to absorb all other                                                             
       additional GF funding requests without increased                                                                         
       budget authority.                                                                                                        
    · The Subcommittee approved the PPT position for the                                                                        
       Select Committee on Legislative Ethics                                                                                   
                                                                                                                                
9:17:48 AM                                                                                                                    
                                                                                                                                
UNIVERSITY OF ALASKA SUBCOMMITTEE                                                                                               
                                                                                                                                
Mr. Grussendorf listed the budget action:                                                                                       
                                                                                                                                
The Senate Finance Budget Subcommittee for the University                                                                       
submits an Operating Budget to the Senate Finance Committee                                                                     
for FY 11 as Follows:                                                                                                           
                                                                              Sen Sub to                                        
 Fund Source                                                                                                                  
                    10 Mgt Plan FY11 Gov Amd                  Sen Sub              Gov                                          
    General                                                                                                                     
                     $617,040.4         $640,989.7         $640,973.0           ($16.7)                                         
      Funds                                                                                                                     
    Federal                                                                                                                     
 Funds          $131,558.5         $132,798.7  $132,798.7                       -                                               
 Other Funds $ 74,608.0  $ 76,146.0  $ 76,146.0                                      -                                          
                                                                                                                              
                                                                             Sen Sub to                                         
 Positions                                                                                                                    
                    10 Mgt Plan FY11 Gov Amd                 Sen Sub              Gov                                           
  PFT              4,694               4,694             4,694                 0                                                
  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                                                                                                                 
    · Changed structure from one appropriation in Gov Amd                                                                       
       to seven appropriations (matching FY10)                                                                                  
    · Transferred 3% of Federal Receipts, Unrestricted GF,                                                                      
       and University Receipts from all appropriations                                                                          
       (except the Small Business Development Center) into                                                                      
       the Budget Reductions/Additions - Systemwide                                                                             
       appropriation to provide program funding flexibility                                                                     
       under the seven-appropriation scenario.  The total                                                                       
       transferred is $22.5 million.  This is a net zero                                                                        
       change in the overall budget.                                                                                            
    · Accepted all Federal Receipts and Other Funds as                                                                          
       requested in Gov Amd                                                                                                     
    · Accepted all Designated GF (University Receipts and                                                                       
       VoTech Ed) as requested in Gov Amd                                                                                       
    · Funded all GF Match and GF/MH as requested in Gov Amd                                                                     
              and provided a Statewide University Increment of $4.5                                                             
       million in General Funds                                                                                                 
    · Funded $1.2 million GF for the Alaska Native Science &                                                                    
       Engineering Program at the Anchorage Campus                                                                              
    · Funded $314.2 GF specifically for Anchorage Fixed Cost                                                                    
       Priorities                                                                                                               
    · Funded $300.0 GF for the Marine Advisory Program at                                                                       
       the Fairbanks Campus                                                                                                     
    · Funded $75.0 GF for Alaska Summer Research at the                                                                         
       Fairbanks Campus                                                                                                         
    · Funded $150.0 GF for Individual Technology Based Math                                                                     
              and the Summer Bridge Program at the Fairbanks Campus                                                             
    · Funded $260.8 GF for University of Alaska Community                                                                       
       Campuses for Additional Lease Cost Increases (split                                                                      
              between the College of Rural and Community Development                                                            
       and the Cooperative Extension Service allocations)                                                                       
    · Approved Intent 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.                                                                       
9:21:07 AM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman pointed out that these budget actions were                                                                     
made by a committee of the whole.                                                                                               
                                                                                                                                
9:21:30 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF ADMINISTRATION SUBCOMMITTEE                                                                                       
                                                                                                                                
TIM BENINTENDI, STAFF, SENATOR OLSON, explained the results                                                                     
of the subcommittee's work including fund source, funds,                                                                        
positions, and budget action:                                                                                                   
                                                                                                                                
After     five    substantive        hearings      with     the    Department       of                                          
Administration,         the   SFC   Administration        Subcommittee       submits                                            
this    operating      budget     to  the    Senate     Finance     Committee      for                                          
FY11:                                                                                                                           
                                                                                                                                
FUND SOURCE:                                                                                                                  
                      FY10          Gov Amd        Sen Sub               Difference                                     
                      Mgt Plan                             SenSub to GovAmd                                                 
                                                                                                                                
GENERAL FUNDS: 95,992.3             97,667.7       97,885.6              217.9 / .2%                                            
FEDERAL FUNDS:  4,420.8               3,933.6        3,933.6                0.0                                                 
OTHER FUNDS:     194,276.8        197,451.4      197,433.5                  (17.9) / 0%                                         
                     --------------    --------------   --------------                                                          
TOTAL FUNDS:      294,689.9     299,052.7     299,252.7                     200.0                                               
                                                                                                                                
FUNDS:                                                                                                                        
The   Subcommittee       approved      a  net   increase      in  TOTAL    FUNDS    of                                          
$200.0, the                                                                                                                     
difference between Gov. Amend. and Sen. Subcom.                                                                                 
                                                                                                                                
POSITIONS:                                                                                                                    
The   Department       eliminated      1   PFT   position      compared     to   FY10                                           
Mgt.    Plan,     2   PPT's,     and    2   Temporary      positions,       and    the                                          
Subcommittee ACCEPTED these changes.                                                                                          
                                                                                                                                
                      FY10          Gov Amd               Sen Sub                                                         
                     Mgt. Plan                                                                                                
                                                                                                                                
PFT                   1,070            1,069                1,069                                                               
PPT                       20               18                   18                                                              
TEMP                      34               32                  32                                                               
                                                                                                                                
TOTAL:                1,124            1,119                1,119                                                               
                                                                                                                                
BUDGET ACTION:                                                                                                                
                                                                                                                                
DENIED      GF     fund     source      changes       for     health      insurance                                           
increases      for   non-covered      employees      -  $32.1:      $12.3    (Admin.                                          
Hearings);          $7.7       (Office         of       Commissioner);           $1.9                                           
(Administration         Services);        $1.0    (Personnel);        $1.2    (Lease                                            
Administration);                                                                                                                
$4.2     (Enterprise        Technology       Services);       $3.8     (Office      of                                          
Public     Advocacy).         It   was   felt    that    the   department       could                                           
absorb     these    costs,     or  charge     them    back    to  other     agencies                                            
via Inter-Agency receipts.                                                                                                      
                                                                                                                                
REDUCED     projected      travel    costs    in  E-Travel      by  $50.0,    Inter-                                          
Agency receipts, from $600.0 to $550.0.                                                                                         
                                                                                                                                
ADDED    an  increment      of  $250.0     GF  to   the   base,    for   the  Alaska                                          
Public      Broadcasting        Commission       /    Radio     Operations,        for                                          
station operating grants.                                                                                                       
                                                                                                                                
INTENT LANGUAGE:  None added by the Subcommittee.                                                                             
                                                                                                                                
GOVERNOR'S AMENDMENTS:   ACCEPTED                                                                                           
                                                                                                                                
EPORS                               decrement                    -$250.0 / GF                                                   
                                                                                                                                
FINANCE                      increment                    $500.0 / ARRA                                                         
(result      of    a    technical       error:         Transaction        title     is                                          
corrected with this amendment)                                                                                                  
                                                                                                                                
PUBLIC ADVOCACY                     increment                    $865.0 / GF                                                    
                                                                                                                                
PUBLIC DEFENDER                     decrement                    - $20.0 / SDPR                                                 
                                                                                                                                
PUBLIC DEFENDER                     increment                    $800.0 / GF                                                    
                                                                                                                                
V. C. C. B.                         decrement                    - $2.0 / PFD                                                   
Crim. Fund                                                                                                                      
                                                                                                                                
9:24:38 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF HEALTH and SOCIAL SERVICES SUBCOMMITTEE                                                                           
                                                                                                                                
DENISE     LICCIOLI,      STAFF,     SENATOR      DONNY    OLSON,     reported      on                                          
the    subcommittee's         work.    She    described       the    fund    source,                                            
position     summary,      personnel,      and   budget     action,     as   well   as                                          
items of concern:                                                                                                               
                                                                                                                                
The    Sub-Committee        for    the   Department       of    Health     &  Social                                            
Services      submits      an    operating      budget      recommendation         and                                          
report to the Senate Finance Committee for FY11 as follows:                                                                     
                                                                                                                                
Fund Source                                                                                                                 
               10 Mgt Plan            Gov Amd     Sen                              Sub                                          
       Difference                                                                                                               
GF              $899,499.2          $996,005.4                           $988,852.1                                             
       $(7,153.3)                                                                                                               
Federal        1,081,482.7   1,162,698.6  1,157,262.7                                                                           
(5,435.9)                                                                                                                       
Other             93,198.4            92,133.1            92,233.1     100.0                                                    
               ----------------             ----------------             ---------                                              
---                                                                                                                             
Total    $2,074,180.3  $2,250,837.1  $2,238,347.9                                                                               
               ========= ========= =========                                                                                    
                                                                                                                              
Position Summary                                                                                                            
                                                                                                                                
               10 Mgt Plan          Gov Amd        Sen Sub                                                                      
PFT             3,474                3,469    3,469                                                                             
PPT                93                   93            93                                                                        
Temp              123                  108           108                                                                        
                ------              ------         ------                                                                       
Total           3,690                3,670   3,670                                                                              
                                                                                                                                
FY   2011   Senate     Finance    Sub-Committee        Budget    Recommendations                                                
for H&SS /March 17, 2010                                                                                                        
                                                                                                                                
Personnel                                                                                                                   
                                                                                                                                
The    authorized        position       count     for     the    department        was                                          
reviewed;        the     overall       number       of     positions        actually                                            
decreased      in   the   Governor's      request,      and   the   sub-committee                                               
retained the same overall number.                                                                                               
                                                                                                                                
Budget Action                                                                                                               
                                                                                                                                
    · Held 5 public meetings with the department to discuss                                                                     
       and explain the budget;                                                                                                  
    · Adopted the FY11 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   previous     year,                                           
predominately          due     to     Medicaid.        Medicaid       growth       and                                          
projections       increased       the    budget     $153    million      in   total,                                            
$68,410.1       of   which     is    GF.      We    are    fortunate      that     our                                          
Federal     Medical     Assistance      Percentage      (FMAP)    went    down   last                                           
year     and    is    still     at    a   lower     rate,     or    the     Medicaid                                            
increases would have been significantly more.                                                                                   
                                                                                                                                
Another     $6.3    million    of   GF   increases      are   due   to   enrollment                                             
growth     in    adult     public     assistance,        general      relief,      and                                          
senior    benefit     payments.       Added    to   this   is   a  GF  increase     to                                          
stabilize      the   funding      of  the    Medicaid     School     Based    Claims                                            
program,      due   to   fairly     recent     discovery      of    problems     with                                           
how   this    program     was   being    implemented       and   the   funds    used.                                           
The   federal     agency     wants    to   see   a   correlation       between     the                                          
claiming     and   the   funding     received     going    to   school    programs,                                             
and   the   department      is   still   unsure     of  exactly     how   the   funds                                           
can    be    spent      or    the    impact      of    handling       the    funding                                            
"correctly".                                                                                                                    
                                                                                                                                
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:                                                                                    
                                                                                                                                
    · $2.6 million of GF and $3.5 million of federal funds                                                                      
       for the Adult Preventative Dental Medicaid Services                                                                      
                                                                                                                                
    · Over $9 million in Mental Health Trust Funds, and                                                                         
       about half that in GF/MH for Bring the Kids Home                                                                         
       (BTKH); the other half funded FASD treatment, and                                                                        
       substance abuse and mental health programs and                                                                           
       services.                                                                                                                
                                                                                                                                
    · $1 million to stabilize funding to public health                                                                          
       nursing grantees                                                                                                         
                                                                                                                                
    · $355 thousand to foster care services including toward                                                                    
       the prevention of homelessness, job training and                                                                         
       foster parent recruitment, and school transportation                                                                     
       to prevent mid-term transfers by students who are in                                                                     
       foster care.                                                                                                             
                                                                                                                                
    · Finally, over $5.2 million of GF, $1.4 million of                                                                         
       federal funds, and $11.7 million of other funds went                                                                     
       to a variety of programs.  To name a few: suicide                                                                        
       response and postvention, home and community based                                                                       
       waiver compliance, peer navigators, Soteria-Alaska,                                                                      
       eye and vision rehab for rural Alaskans, and early                                                                       
       childhood mental health.                                                                                                 
                                                                                                                                
    · FY 2011 Senate Finance Sub-Committee Budget                                                                               
       Recommendations for H&SS /March 17, 2010                                                                                 
                                                                                                                                
Only      3    items      requested        by     the      Governor,        totaling                                            
approximately        $900   thousand,      were   not   funded    at   all   in  this                                           
budget.       Another     2  items     were   partially      funded     at   50%   and                                          
total     $487.5     instead     of    $975.0     as   requested.          The   sub-                                           
committee      also    made    a  reduction      of   $3.5    million     in   GF   to                                          
the     Medicaid       program,        thereby      reducing        the     increase                                            
provided in this budget recommendation.                                                                                         
                                                                                                                                
The      sub-committee          recommendation           also      implements         a                                         
structure      change     which     moves    all    the    Medicaid      components                                             
into a new and separate component.                                                                                              
                                                                                                                                
Detail    on   these    and   other    changes     are   shown    in   the   reports                                            
included with this.                                                                                                             
                                                                                                                                
Some    items     were    left    for    the    Finance      Committee      to   take                                           
action.  Those items are:                                                                                                       
                                                                                                                                
    - A department-wide reduction in travel for $311.0 GF                                                                       
                                                                                                                                
    - The Therapeutic Courts will be transferred to the                                                                         
       Court System Budget, and                                                                                                 
                                                                                                                                
    - Funding for several items related to the Domestic                                                                         
       Violence and Sexual Assault Prevention Initiative.                                                                       
                                                                                                                                
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   continuing      change    to                                          
the    FMAP    rate    and   other     federal     programs.        Even    a   small                                           
increase in the State's share will cost tens of millions.                                                                       
                                                                                                                                
And   the   Medicaid      School    Based    Claims     Admin    funding     remains                                            
unresolved      and   will    likely    result    in   additional      requests     in                                          
the millions.                                                                                                                 
                                                                                                                              
9:30:52 AM                                                                                                                    
                                                                                                                                
Senator      Olson     voiced     a   concern      about     an    escalation       of                                          
federal program needs.                                                                                                          
                                                                                                                                
9:31:50 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF PUBLIC SAFETY SUBCOMMITTEE                                                                                        
                                                                                                                                
Senator     Olson     expressed      appreciation        for   the    department's                                              
cooperation.                                                                                                                    
                                                                                                                                
Ms.   Liccioli     reported      on  the   subcommittee's        work,    including                                             
fund    source,      position      summary,      personnel,       budget     action,                                            
and items of concern:                                                                                                           
                                                                                                                                
The    Senate     Finance      Sub-Committee         for    the    Department       of                                          
Public    Safety     submits     an  operating      budget    recommendation        to                                          
the full Senate Finance Committee for FY11 as follows:                                                                          
                                                                                                                                
Fund Source                                                                                                                 
               10 Mgt Plan Gov Amd          Sen Sub       Difference                                                            
GF               $138,747.8 $144,872.9 $145,047.7 $174.8     0.1%                                                               
Federal              20,124.7     12,277.3     12,277.3                                                                         
Other                18,631.4     20,111.0     20,111.0                                                                         
               ---------------- -------------- --------------                                                                   
Total            $177,503.9 $177,261.2 $177,436.0                                                                               
                                                                                                                                
Position Summary                                                                                                            
                                                                                                                                
               10 Mgt Plan Gov Amd          Sen Sub                                                                             
PFT                 863           870            870                                                                            
PPT                   16            16             16                                                                           
Temp                  14            13             13                                                                           
                   ------        ------        ------                                                                           
Total                893          899            899                                                                            
                                                                                                                              
Personnel                                                                                                                   
                                                                                                                                
Reviewed      the   authorized       position     count     for   the    department                                             
and   authorized      8   new   positions      for   the   department.        5  were                                           
authorized       for   highway     patrol     out    of   CIP   Receipts,      and    3                                         
were    authorized       for    increased      investigation         for    domestic                                            
violence and sexual assault.                                                                                                    
                                                                                                                                
Budget Action                                                                                                               
                                                                                                                                
       · Held 3 public meetings with the department to                                                                          
           discuss and explain the budget;                                                                                      
       · Adopted the FY11 Adjusted Base; and                                                                                    
       · Reviewed each of the increments and decrements                                                                         
                 submitted by the Governor, including amendments.                                                               
                                                                                                                                
The   Governor      made   public     safety    a  priority      and   this   budget                                            
certainly       reflects      that.       The   Department       is    also    to   be                                          
commended      for   its   efforts     in   recruiting      and   retaining      VPSO                                           
and   trooper     positions     and   bringing      the   vacancy    rate    down   as                                          
well.      The   success     in   this    area   has   been    nothing     short    of                                          
remarkable.                                                                                                                     
                                                                                                                                
The    Senate      Finance       sub-committee         approved      all     of    the                                          
requested       increases       except      for    1   minor     one     for    $25.2                                           
thousand.         That    item    would     have    supplanted       ARRA    funding                                            
with GF.                                                                                                                        
                                                                                                                                
Notable increases that were approved:                                                                                           
                                                                                                                                
    · $1.5 million of GF was approved for the VPSO program                                                                      
              to add 15 additional positions this year, and for COLA                                                            
              and merit increases.  This follows the recommendations                                                            
       of the Senate VPSO Task Force from 2008.  The                                                                            
       department is already seeing success with the                                                                            
              implementation of the first of those recommendations,                                                             
       in a similar way as with the Troopers, with more                                                                         
       applicants for VPSO positions, and less turnover.                                                                        
              These increases are necessary if they are to continue                                                             
              and build on this success and ensure public safety for                                                            
       rural Alaskans as well.                                                                                                  
                                                                                                                                
    · $725 thousand of GF and 3 positions for                                                                                   
              investigations, training, exam and other costs related                                                            
       to Domestic Violence and Sexual Assault (DVSA)                                                                           
       prevention.                                                                                                              
                                                                                                                                
    · A little more than $700 thousand of GF for DVSA victim                                                                    
       services.                                                                                                                
                                                                                                                                
    · $656.5 thousand of GF was approved for continuing cold                                                                    
       case investigations and illegal drug and alcohol                                                                         
       enforcement.                                                                                                             
                                                                                                                                
    · $300 thousand of GF for increased costs of prisoner                                                                       
       transportation                                                                                                           
                                                                                                                                
    · $1.2 million of CIP receipts and 5 positions to                                                                           
       enhance highway patrol efforts.                                                                                          
                                                                                                                                
    · $600 thousand of inter-agency receipts for background                                                                     
              checks requested by the Department of Health & Social                                                             
       Services.                                                                                                                
                                                                                                                                
The    detail     on   these     and   other     changes     are    shown     in   the                                          
reports included with this.                                                                                                     
                                                                                                                                
The   Sub-Committee        also   recommended       language     and   conditional                                              
funding     to   be  included      in  the   "language      section"      of  the   CS                                          
for   the    Rural    Alcohol     Interdiction        Team   for    $1,270.0;      and                                          
for Drug and Alcohol Enforcement for $1,393.2.                                                                                  
                                                                                                                                
Some    items    were   left    for   the   full    Senate    Finance     Committee                                             
to   address,      relating      to   the   Domestic      Violence      and   Sexual                                            
Assault Prevention Initiative.                                                                                                  
                                                                                                                                
It   is  also   our   intention      to   allow   Legislative       Finance     to  do                                          
technical adjustments if any are needed.                                                                                        
                                                                                                                                
Items of Concern                                                                                                            
                                                                                                                                
With    the   increases      in   VPSO    positions,      the    department      will                                           
need    more    oversight       troopers      soon,    probably      in    the   next                                           
budget     cycle.       Thereafter,       as   VPSOs    are    increased,      it   is                                          
expected       that    trooper      oversight       will     also     need    to    be                                          
increased      to   attain     or   maintain      a   ratio    of   1:3    which    is                                          
considered       ideal     by   the   department.          The    department       has                                          
assured     the    sub-committee        that    oversight      troopers     are    not                                          
needed in FY 11, but are expected to be needed in FY 12.                                                                        
                                                                                                                                
The   Governor's       DVSA   prevention       initiative      will    require     the                                          
support     of  and   funding     by  the   Legislature       if  we   hope   to   see                                          
a  reduction      in   our   notorious      #1   ranking     in   the   nation     for                                          
DVSA.      This    is  the    first    of  ten    years    of   this   initiative,                                              
so   we   can   expect     to  see    additional      increases      requested      to                                          
prevent DVSA and to assist victims of DVSA.                                                                                     
                                                                                                                                
9:36:13 AM                                                                                                                    
                                                                                                                                
Senator     Olson    congratulated       the   commissioner        for   addressing                                             
VPSO needs of rural Alaskans.                                                                                                   
                                                                                                                                
DEPARTMENT OF MILITARY and VETERANS AFFAIRS SUBCOMMITTEE                                                                        
                                                                                                                                
Senator     Huggins     reported     that   the   subcommittee        mirrored     the                                          
House    subcommittee        action     and   fully    funded     the    governor's                                             
requests      for   operational       funds     and   for   personal      services.                                             
He   credited      the    department       for    being    very    organized.       He                                          
related     that     the   department       provides      support:      to   provide                                            
military     forces     to  the   nation,     to  provide     homeland      security                                            
and    defense,      to    provide      emergency       response,      to    provide                                            
veterans      services,       and    to   provide      military      training      and                                          
education. He listed the department's findings:                                                                                 
                                                                                                                                
The   Senate     Finance     Budget     Subcommittee        for   the    Department                                             
of    Military      and    Veterans      Affairs      submits      the    following                                             
operating budget to the full Senate Finance Committee:                                                                          
                                                                                                                                
                                                                                                                                
                   10 Mgt                                                                                                     
FUND SOURCE                    11 Gov Amd Sen Sub                  Gov Amd Adj to                                             
                      Plan                                                                                                    
                                          Adj                                Sen Sub                                        
General         11,360.4         11,631. 9 11,631.9                                0.0                                        
Funds                                                                                                                           
Federal         22,235.3          23,476.9 23,476.9                                0.0                                        
Funds                                                                                                                           
Other           13,005.4          13,340.1 13,340.1                                0.0                                        
Funds                                                                                                                           
                                                                                   0.0                                        
TOTAL           46,601.1          48,448.9 48,448.9                                                                           
                                                                                                                                
                                                                                                                                
                   10 Mgt 11 Gov Amd Adj Sen Sub Gov Amd to Sen Sub                                                         
POSITIONS                                                                                                                     
                      Plan                                                                                                    
PFTs                   296                   295        295                        0.0                                        
PPTs                      2                     2          2                       0.0                                        
Temps                     1                     1          1                       0.0                                        
TOTAL                  299                   298        298                        0.0                                      
                                                                                                                                
                                                                                                                                
The     budget       Subcommittee         held     one     hearing       with      the                                          
Department and took the following actions:                                                                                      
                                                                                                                                
       1. Reviewed the FY 10 Management Plan.                                                                                   
       2. Reviewed the FY 11 Adjusted Base.                                                                                     
       3. Reviewed the increments, decrements, and budget                                                                       
           amendments proposed by the Governor.                                                                                 
       4. Reviewed the House Finance Budget Subcommittee                                                                        
           report, which adopted the Governor's request as                                                                      
           amended and one fund change.                                                                                         
             5. Adopted the Governor's request, as amended, plus the                                                            
           fund change recommended by the House Finance Budget                                                                  
           Subcommittee.                                                                                                        
                                                                                                                                
The   Subcommittee        considered       aligning     the    match    portion     of                                          
the    Department's         budget      with     the    Alaska      Air     National                                            
Guard's       Financial       Plan.          This     increment        allows      the                                          
Department to adequately match federal funds.                                                                                   
                                                                                                                                
The    Subcommittee       also    considered       the    Bethel     Armory     lease                                           
costs      and    the     Emergency        Management        Performance        Grant                                           
program request.                                                                                                                
                                                                                                                                
9:38:38 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF NATURAL RESOURCES                                                                                                 
                                                                                                                                
Senator        Huggins       listed       the      changes       made       by     the                                          
subcommittee:                                                                                                                   
                                                                                                                                
The   Senate     Finance     budget     subcommittee        for   the    Department                                             
of   Natural    Resources      submits     the   following      operating     budget                                            
to the full Senate Finance Committee:                                                                                           
                                                                                                                                
                                                                                                                                
FUND                 FY 10       FY 11       FY 11      HOUSE  SEN SUB GOV AMD                                                
SOURCE                MGT ADJ BASE GOV AMD                 SUB                  TO SEN                                        
                     PLAN                                                          SUB                                      
UNRESTRICTED                                                                                                                  
                  68,237.3 62,430.2 65,134.8 64,133.3 64,804.8                   -0.5 %                                       
GF                                                                                                                            
DESIGNATED                                                                                                                    
                  24,337.2 24,348.7 24,755.3 24,462.3 24,462.3                   -1.2 %                                       
GF                                                                                                                            
OTHER                                                                                                                         
                  32,376.3 30,161.1 33,291.9 33,477.3 33,491.9                    0.6 %                                       
                                                                                                                                
FEDERAL                                                                                                                       
                  14,054.3 14,058.2 16,293.2 16,593.2 16,293.2                    0.0 %                                       
                                                                                                                                
TOTAL                                                                                                                         
                 139,005.1 130,998.2 139,475.2 138,666.1 139,052.2              -0.3 %                                      
                                                                                                                                
                                                                                                                                
The   subcommittee       also    considered      the   Governor's      request     for                                          
personal      services       and    recommends       the    following       position                                            
count:                                                                                                                          
                                                                                                                                
               FY 10 MGT FY 11 ADJ GOVERNOR HOUSE                  SEN        GOV                                               
POSITIONS                                                                                                                     
               PLAN          BASE        AMEND        SUB          SUB        AMD TO                                            
                                                                              SEN SUB                                         
PFTS                                                                                                                          
                       779         772           776         771        775      -0.1 %                                       
PPTS                                                                                                                          
                       247         247           247         247        247       0.0 %                                       
TEMPS                                                                                                                         
                        81          82            82           82         82      0.0%                                        
TOTAL                                                                                                                         
                      1107        1101         1105         1100       1104 -0.1 %                                          
                                                                                                                                
The     budget      subcommittee         held     six     hearings        with     the                                          
Department and took the following actions:                                                                                      
                                                                                                                                
       1. Reviewed the FY 10 Management Plan.                                                                                   
       2. Reviewed the FY 11 Adjusted Base.                                                                                     
       3. Reviewed the increments, decrements, and budget                                                                       
           amendments proposed by the Governor.                                                                                 
       4. Reviewed the House Finance Budget Subcommittee                                                                        
           report.                                                                                                              
       5. Adopted the attached narrative and Legislative                                                                        
           Finance Department documents.                                                                                        
                                                                                                                                
The    subcommittee         considered       the    request      from     the    AGIA                                           
Coordinator's        office     to    increase      its    permanent      full-time                                             
employees      from    four   to   eight.      The   subcommittee        recommends                                             
that     the     full     Finance      Committee        and     the    Legislature                                              
consider     funding     this    personal     services     request     at  a  lesser                                            
rate,     e.g.,    increasing       from     the   staff     from    four     to   six                                          
employees, not eight.                                                                                                           
                                                                                                                                
9:40:09 AM                                                                                                                    
                                                                                                                                
DEPARTMENT       OF   COMMERCE,       COMMUNITY      &   ECONOMIC      DEVELOPMENT                                              
SUBCOMMITTEE                                                                                                                    
                                                                                                                                
JOE   HARDENBROOK,       STAFF,     SENATOR    JOE   THOMAS,     highlighted       the                                          
results     of  the   subcommittee's        work.    He   covered     the   funding,                                            
positions, and budget action:                                                                                                   
                                                                                                                                
The    Senate      Finance      Subcommittee        for     the    Department       of                                          
Commerce,       Community       &    Economic       Development        submits      an                                          
operating      budget     to   the   full    Senate     Finance     Committee      for                                          
FY11 as follows:                                                                                                                
                                                                                                                                
                                                                                                                                
                                          FY11 Adj       Gov        Senate                                                  
                                            Base        Amend      Subcom                                                   
                         FY10 Mgt Pln                                                                                       
 Unrestricted GF              14,013.7       14,116.3  15,867.1  15,898.2                                                     
 Designated GF                51,529.4       51,532.3  52,328.7  52,328.7                                                     
 Other                        25,678.2       25,866.6  31,001.0  31,001.0                                                     
 Federal Funds                66,095.0       64,280.5  65,522.6  65,522.6                                                     
 Total                       157,316.3      155,795.7  164,719.4  164,750.5                                                 
                                                                                                                                
Position Changes in DCCED:                                                                                                  
                          FY10 Mgt       FY11 Adj        Gov       Senate                                                   
                             Pln           Base        Amend      Subcom                                                    
                                                                                                                           
                                                                                                                            
                                                                                                                           
                                                                                                                            
                                                                                                                          
                                                                                                                             
 Total Positions                 544            541         545        544                                                  
                                                                                                                                
Budget Action:                                                                                                              
                                                                                                                                
· Adopted the Governor's amended FY11 budget proposed                                                                           
    increments & decrements for:                                                                                                
              o $72.1 AIDEA Rcpts for 10% increase in ARDOR (Alaska                                                             
           Regional Development Organization) funding.                                                                          
           Recommend that the Full Finance Committee transfer                                                                   
           ARDOR funding to Office of Economic Development and                                                                  
           out of AIDEA (part of the budget clarification                                                                       
           project).                                                                                                            
       o $164.0 Rcpt Svcs increment for Division of Banking                                                                     
           and Securities travel.  Funding will allow for                                                                       
                travel associated with statutorily required exams                                                               
           and accreditation.                                                                                                   
              o $200.0 Rcpt Svcs to cover drastic increase in fixed                                                             
                costs at Division of Insurance Operations.  Costs                                                               
           for mail, print, legal and leases have risen $404.1                                                                  
           since FY08.                                                                                                          
       o  $192.1 Stimulus funds for RCA development of                                                                          
                 electricity regulations.  Three years of funding                                                               
           provided under ARRA.                                                                                                 
                                                                                                                                
· Adopted the Governor's requested funding but approved the                                                                     
    request as one-time:                                                                                                        
       o $97.0 UGF one time funding for Natural Resource                                                                        
           Specialist position to advise communities on ANCSA-                                                                  
           related actions.  Last ANCSA specialist in                                                                           
                Department scheduled to retire in next two years.                                                               
           This will allow for training and replacement.                                                                        
              o $400.0 one time fed rcpts for prescription database                                                             
       o $100.0 AIDEA Rcpt for AIDEA Strategic plan                                                                             
           development funding                                                                                                  
                                                                                                                                
· Adopted the Governor's amended FY11 budget with the                                                                           
    following changes:                                                                                                          
       o $250.0 UGF for two Local Government Specialists.                                                                       
           Two new positions transferred from within Commerce,                                                                  
           declined funding for new position request.                                                                           
       o $125.0 UGF funding for two positions in Office of                                                                      
           Economic Development                                                                                                 
       o $500.0 UGF and $500.0 Rcpt Svcs for Alaska Seafood                                                                     
           Marketing Institute will increase funding for                                                                        
           marketing and allow ASMI to cover a $500.0 decrease                                                                  
                 in federal funds with carry forward from FY2010.                                                               
                                                                                                                                
· The Senate Subcommittee also added the following items:                                                                       
       o $500.0 operations grant for Illisagvik College                                                                         
           workforce development programs in Barrow                                                                             
              o $150.0 UGF to increase grant funding for the Alaska                                                             
           Legal Services Corporation                                                                                           
              o $250.0 UGF AEA funding for small-scale nuclear power                                                            
           feasibility research grant                                                                                           
                                                                                                                                
9:44:15 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF LABOR & WORKFORCE DEVELOPMENT SUBCOMMITTEE                                                                        
                                                                                                                                
Mr. Hardenbrook reported on the work done by the                                                                                
subcommittee including funds, positions, and budget action:                                                                     
                                                                                                                                
The Senate Finance Subcommittee for the Department of Labor                                                                     
& Workforce Development submits an operating budget to the                                                                      
full Senate Finance Committee for FY11 as follows:                                                                              
                                                                                                                                
                         FY10 Mgt FY11 Adj GovernSenate House-                                                              
                             Pln           Base           or       Subcom        Amds                                       
                                                                                                                            
 Unrestricted                                           29,21429,21428,246                                                    
 GF                                                           .1          .1          .6                                      
                          29,705.3 25,874.9                                                                                   
                                                        33,88633,88633,886                                                    
 Designated GF            33,962.0 33,978.9                   .2          .2          .2                                      
                                                        26,62026,62026,620                                                    
 Other                    26,370.2 26,400.5                                                                                   
                                                              .5          .5          .5                                      
                          104,704.101,37101,17101,17                                                                          
 Federal Funds                      9 87,679.8              1.0         1.0         1.0                                       
                          194,742.173,934.191,09190,89189,92                                                                
 Total                              4              1        1.8         1.8         4.3                                     
                                                                                                                                
Position Changes in DOLWD:                                                                                                  
                         FY10 Mgt FY11 Adj GovernSenate House-                                                              
                             Pln           Base           or       Subcom        Amds                                       
                                                                                                                              
                                 836            846         847                                                               
 PFTs                                                                   847         847                                       
                                 129            117         117                                                               
 PPTs                                                                   117         117                                       
                                   29             20          22          22          22                                      
 Temps                                                                                                                        
                                                                                                                                
Budget Action:                                                                                                              
                                                                                                                              
The   Senate     Subcommittee       recommends       adopting     the    governor's                                             
budget     recommendations          for    the    Department       of    Labor     and                                          
Workforce      Development      in   FY11.     The   request     is   an  austerity                                             
budget     that     allows     the    department       to   remain      focused     on                                          
critical       workforce       development       initiatives        while     taking                                            
full    advantage      of    federal     revenue      streams     and    maximizing                                             
outreach statewide.                                                                                                             
                                                                                                                                
· Differences from House Finance                                                                                                
       o $47.5 UGF for expanding training services.                                                                             
           Department identified this as a priority, and                                                                        
           requested a corresponding decrement to free up                                                                       
           funding.                                                                                                             
       o $750.0 Stimulus funds for labor market information                                                                     
           improvement project.  Sen. Subcommittee accepts the                                                                  
           Governor's request for one-time funding but, because                                                                 
           the funding is multi-year, we are not requiring the                                                                  
           deletion of the PCNs.                                                                                                
       o $85.0 UGF for workforce development and education.                                                                     
           Department identified this as a priority, and                                                                        
           requested a corresponding decrement to free up                                                                       
           funding.                                                                                                             
       o $585.0 UGF for support of training and                                                                                 
                apprenticeships.  Department identified this as a                                                               
           priority, and requested a corresponding decrement to                                                                 
           free up funding.                                                                                                     
       o $250.0 UGF for Construction Academy Training.                                                                          
           Deletion of $250.0, coupled with an expected $400.0                                                                  
           decrease in federal funds would cripple the delivery                                                                 
           of training in rural Alaska.                                                                                         
       o $83.6 ($41.8 federal receipts and $41.8 receipt                                                                        
           supported services) for a grant writer for AVTEC in                                                                  
           Seward. Lack of a trained grant writer has impacted                                                                  
           federal funding to AVTEC in the past, and the                                                                        
           department estimates that $3-5 million in grant                                                                      
           funding may be available.                                                                                            
                                                                                                                                
9:47:36 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF LAW SUBCOMMITTEE                                                                                                  
                                                                                                                                
MILES    BAKER,     STAFF,     SENATOR     BART    STEDMAN,     reported      on   the                                          
subcommittee's        recommendations.         He   shared    the   budget    action                                            
in both the criminal and civil divisions:                                                                                       
                                                                                                                                
The Senate Finance Budget Subcommittee for the Department                                                                       
of Law submits the following FY11 Operating Budget                                                                              
Recommendations to the Senate Finance Committee:                                                                                
                                                                                                                                
     Fund Source          11 Adj Base Gov Amd Sen Sub                 Difference                                            
     Unrestricted GF $ 45,470.0          $ 56,677.0 $ 55,877.0 $    (800.0)                                                   
     Designated   GF      $   2,184.1    $   2,361.1    $   2,361.1   $ 0                                                     
     Other  Funds         $ 23,670.9     $ 23,949.9     $ 23,949.9    $ 0                                                     
     Federal  Funds       $   1,595.4    $   1,995.4    $   1,995.4   $ 0                                                     
     Total                $ 72,920.4.    $ 84,983.4 $ 84,183.4 $    (800.0)                                                   
                                                                                                                                
     Positions            11 Adj Base Gov Amd Sen Sub                 Difference                                            
     PFT                       549            554            553              (1)                                             
     PPT                           6              6              6             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                                                                                                             
    · Denied the request to add a permanent full time Sexual                                                                    
       Assault Coordinator with $200,000 in general funds                                                                       
       within Criminal Justice Litigation. The subcommittee                                                                   
              is recommending to the full Finance Committee that the                                                            
              Senate accept the House recommendation to add this new                                                            
       position and the funding, to the Executive Office of                                                                     
       the Governor to better coordinate our activities                                                                         
       across all agencies.                                                                                                     
                                                                                                                                
    · Approved the addition of 2 permanent full time                                                                            
              District Attorneys within the Third Judicial District                                                           
       in Kenai. The committee took the House's                                                                                 
       recommendation to fund these positions at 75% of the                                                                     
              $400,000 GF request. The department testified that the                                                            
              positions will not be ready to be filled at the start                                                             
       of the FY2011 fiscal year.                                                                                               
                                                                                                                                
                                                                                                                                
CIVIL DIVISION                                                                                                                
    · Approved a one-time increment of $3.0 million GF                                                                          
              within the Oil, Gas & Mining section for outside legal                                                          
       counsel and expert services related to on-going Pt.                                                                      
       Thomson litigation, Trans-Alaska Pipeline tariffs,                                                                       
       TAPS    reconfiguration        and   other   corporate      tax   matters.                                               
       This    is  $500,000     less   than    the  Governor's      request     and                                             
       was   approved     as   a one-time      increment     instead     of  being                                              
       added to the base as requested by the department.                                                                        
                                                                                                                                
    · Deferred to the full Finance Committee, the Oil, Gas &                                                                  
       Mining section's $2.5 million language request for                                                                     
       outside legal counsel and expert services related to                                                                     
       the state's gas pipeline and gas commercialization                                                                       
       efforts. The subcommittee is recommending that the                                                                       
              Finance Committee reduce this request by $500,000 and                                                             
              add a $2.0 mill GF increment to the numbers section of                                                            
       the department's budget.                                                                                                 
                                                                                                                                
9:50:01 AM                                                                                                                    
                                                                                                                                
DEPARTMENT OF REVENUE SUBCOMMITTEE                                                                                              
                                                                                                                                
Mr. Baker related the subcommittee's action on the closeout                                                                     
in the categories of funds, positions, and budget action:                                                                       
                                                                                                                                
The Senate Finance Budget Subcommittee for the Department                                                                       
of Revenue submits the following FY11 Operating Budget                                                                          
Recommendations to the Senate Finance Committee:                                                                                
                                                                                                                                
                                                                                                                                
                                                                         'Ž›Ž-ŒŽ                                           
                                                                                                                                
                                                                                                                                
     ˜Š•                                                                                                                    
                                                                                                                                
                                                                                                                                
     ˜œ''˜-œ'Ž›Ž-ŒŽ                                                                                                      
                                                                                                                           
                                                                                                                           
     Ž-™                                                                                                                     
     ˜Š•                                                                                                                    
                                                                                                                                
                                                                                                                                
The Subcommittee met with the Department and accepted the                                                                       
Governor's amended budget with the following exceptions:                                                                        
                                                                                                                                
Budget Action                                                                                                                 
                                                                                                                                
TAX DIVISION                                                                                                                  
    · Deferred to the full Finance Committee a $300,000                                                                         
       language appropriation request for an Alaska Gasline                                                                     
       Inducement Act (AGIA) information reporting system.                                                                      
              This item may belong more appropriately in the capital                                                            
       budget. Committee recommends that if this item is                                                                        
       approved, the fund source be changed from Alaska                                                                         
       Housing Capital Corp Receipts to GF.                                                                                     
                                                                                                                                
    · Deferred to the full Finance Committee an $800,000                                                                        
       language appropriation request for the addition of 4                                                                     
       new exempt commercial analyst positions. This                                                                            
              appropriation should be considered in conjunction with                                                            
       a number of other agency gas and gasline related                                                                         
       requests. Committee recommends that if any of this                                                                       
       funding is approved, the fund source be changed from                                                                     
       Alaska Housing Capital Corp Receipts to GF and that                                                                      
       the funding and positions be put into the numbers                                                                        
       section of the budget.                                                                                                   
                                                                                                                                
                                                                                                                                
TREASURY DIVISION                                                                                                             
    · Deferred to the full Finance Committee a $397,000                                                                         
       increment and fund source change for increased                                                                           
       Constitutional Budget Reserve management fees. The                                                                       
       Committee recommends approving this request and                                                                          
       changing the funding source to GF. The CBR is                                                                            
              anticipated to be paid off by the beginning of FY11 at                                                            
       which time management fees should be paid out of the                                                                     
              General Fund to prevent creating new CBR liabilities.                                                             
                                                                                                                                
                                                                                                                                
CHILD SUPPORT SERVICES DIVISION                                                                                               
                                                                                                                                
    · Approved a $7.5 mill fund source change transaction as                                                                    
              reworked and approved by the House Finance Committee,                                                             
       to accommodate federal language changes in the                                                                           
              American Recovery and Reinvestment Act (ARRA) relating                                                            
       to the utilization of existing federal incentive                                                                         
       dollars.                                                                                                                 
                                                                                                                                
                                                                                                                                
ADMINISTRATIVE & SUPPORT                                                                                                      
    · Approved a $50,000 one-time GF increment for costs                                                                        
              associated with auditing the Alaska Gasline Inducement                                                            
       Act (AGIA) Fund. The committee agreed to establish a                                                                     
       new allocation for Natural Gas Commercialization and                                                                   
       recommends this audit transaction be put into the                                                                        
       numbers section of that allocation instead of the                                                                        
       language section of the budget.                                                                                          
                                                                                                                                
    · Deferred to the full Finance Committee a $1.5 mill                                                                        
       language appropriation request for contractual                                                                           
       services and consultants to assistance in the                                                                            
       negotiations, analysis and establishment of fiscal                                                                       
              terms related to natural gas pipeline development and                                                             
       the coming open season. This appropriation should be                                                                     
       considered in conjunction with a number of other                                                                         
       agency gas and gasline related requests. Committee                                                                       
       recommends that if any of this request is approved,                                                                      
              the fund source be changed from Alaska Housing Capital                                                            
       Corp Receipts to GF.                                                                                                     
                                                                                                                                
                                                                                                                                
LONG TERM CARE OMBUDSMAN'S OFFICE                                                                                             
    · Approved a one-time $91,500 GF/MH increment for an                                                                        
       investigator within the Long Term Care Ombudsman's                                                                       
       office to address increased workload relating to                                                                         
       Alaska's seniors.                                                                                                        
                                                                                                                                
                                                                                                                                
ALASKA HOUSING FINANCE OPERATIONS                                                                                             
    · Denied two Corporation Receipt increments totaling                                                                        
       $202,700 for sourcing and contract management                                                                            
       technology solutions, accepting the House                                                                                
       recommendation.                                                                                                          
                                                                                                                                
                                                                                                                                
ALASKA PERMANENT FUND CORP OPERATIONS                                                                                         
    · Denied a $15,500 increment in Corporation Receipts for                                                                    
              increased Board of Trustee travel, accepting the House                                                            
       recommendation.                                                                                                          
                                                                                                                                
    · Approved a one-time increment of $80,000 in                                                                               
       Corporation Receipts for auditing and improving                                                                          
              network and firewall security. The Governor's request                                                             
       was for a permanent increment.                                                                                           
                                                                                                                                
    · Denied a $318,200 increment in Corporation Receipts to                                                                    
       lower the Corporation's vacancy rate, accepting the                                                                      
       House recommendation.                                                                                                    
                                                                                                                                
9:54:14 AM                                                                                                                    
                                                                                                                                
DEPARTMENT         OF     TRANSPORTATION           and      PUBLIC       FACILITIES                                             
SUBCOMMITTEE                                                                                                                    
                                                                                                                                
Mr. Baker informed the committee about the recommendations                                                                      
of the subcommittee, including funds, positions, and                                                                            
specific budget action:                                                                                                         
                                                                                                                                
The Senate Finance Budget Subcommittee for the Department                                                                       
of Transportation & Public Facilities submits the following                                                                     
FY11 Operating Budget Recommendations to the Senate Finance                                                                     
Committee:                                                                                                                      
                                                                                                                                
                                                                                                                                
                                                                         'Ž›Ž-ŒŽ                                           
                                                                                                                                
                                                                                                                                
     ŽŽ›Š•                                                                                                                  
     ˜Š•                                                                                                                    
                                                                                                                                
                                                                                                                                
     ˜œ''˜-œ'Ž›Ž-ŒŽ                                                                                                      
                                                                                                                           
                                                                                                                           
     Ž-™                                                                                                                     
     ˜Š•                                                                                                                    
                                                                                                                                
                                                                                                                                
Specific Budget Action                                                                                                        
                                                                                                                                
The Subcommittee met with the Department and accepted the                                                                       
Governor's amended budget with the following exceptions:                                                                        
                                                                                                                                
                                                                                                                              
                                                                                                                                
ADMINISTRATION & SUPPORT                                                                                                      
    · Denied a $30,000 training increment in Transportation                                                                   
       Management & Security section, accepting the House                                                                     
       recommendation.                                                                                                          
                                                                                                                                
    · Denied a $20,000 increment for increased travel in                                                                        
       Statewide Aviation.                                                                                                    
                                                                                                                                
    · Denied a $50,000 increment for increased appraisal                                                                        
       revenues for non-aviation facilities rent within                                                                         
       Statewide Aviation, accepting the House                                                                                
       recommendation.                                                                                                          
                                                                                                                                
    · Added a $129,300 GF increment for a new Budget                                                                            
       Research/Analyst position within Statewide                                                                             
              Administrative Services. The Department has a capital                                                           
       budget that approaches $1.0 bill annually. This                                                                          
       position will provide increased services in the area                                                                     
       of capital budget tracking, analysis, research &                                                                         
       reporting.                                                                                                               
                                                                                                                                
                                                                                                                                
DESIGN ENGINEERING & CONSTRUCTION                                                                                             
    · Accepted a $275,000 GF increment to bring the Harbor                                                                      
       Development Program from the department's capital                                                                        
       budget into the operating budget. Established a                                                                          
       separate allocation for this item within Statewide                                                                     
       Design & Engineering.                                                                                                  
                                                                                                                                
                                                                                                                                
HIGHWAYS, AVIATION & FACILITIES                                                                                               
    · Denied a $12,000 GF increment for increased snow                                                                          
       removal building M&O costs in the Northern Region,                                                                     
       accepting the House recommendation.                                                                                      
                                                                                                                                
    · Added a $95,000 GF increment for the addition of one                                                                      
       new maintenance specialist position in the Northern                                                                    
       Region. This was the House recommendation and 50% of                                                                   
       the Governor's original request for 2 positions and                                                                      
       $190,000 in funding.                                                                                                     
                                                                                                                                
    · Deferred to the full Finance Committee the request for                                                                    
              a $188,000 GF increment for 2 new positions to monitor                                                            
       and enforce EPA permit compliance related to street                                                                      
       sweeping in Central Region Highways and Aviation.                                                                      
                                                                                                                                
    · Deferred to the full Finance Committee a $1.7 million                                                                     
              GF request in Central Region Highways and Aviation for                                                          
       training, permitting, street sweeping and drain                                                                          
       cleaning     costs    related     to  federal     EPA  requirements.                                                     
       The   appropriate       funding    level    of  this   item    is  still                                                 
       under    review    due   to  recently     received     RFP   responses                                                   
       and agency amendments.                                                                                                   
                                                                                                                                
    · Denied a $20,000 GF increment for bridge crew training                                                                    
       and commodities in Central Region Highways and                                                                         
       Aviation.                                                                                                              
                                                                                                                                
    · Denied a $305,000 GF request for 2 new positions in                                                                       
       Northern Region Highways and Aviation to address                                                                       
       maintenance of state owned sidewalks and ADA                                                                             
       compliance concerns.                                                                                                     
                                                                                                                              
                                                                                                                                
MARINE HIGHWAY SYSTEM                                                                                                         
    · Added a $150,000 increment for a new Transportation                                                                       
              Planner position within Marine Engineering to provide                                                           
              system wide transportation planning and to facilitate                                                             
       better integration with the department's Program                                                                         
       Development RDU.                                                                                                         
                                                                                                                                
    · Accepted a $750,000 increment within Marine Vessel                                                                      
       Operations to provide ship-to-shore satellite                                                                          
              capabilities aboard AMHS vessels. Increment was spilt                                                             
       70% GF and 30% Marine Highway System Funds to more                                                                       
       accurately reflect system funding ratios. The                                                                            
              Governor's original request was for $1.0 mill but the                                                             
       agency reported that RFP responses were coming in                                                                        
       lower than anticipated.                                                                                                  
                                                                                                                                
    · Accepted a $500,000 increment within Marine Vessel                                                                      
       Operations for increased lease costs at the                                                                            
       Bellingham, Washington terminal. Increment was spilt                                                                     
       70% GF and 30% Marine Highway System Funds to more                                                                       
       accurately reflect system funding ratios.                                                                                
                                                                                                                                
    · Aligned salary increases within Marine Vessel                                                                           
       Operations to more accurately reflect system funding                                                                   
       ratios by replacing $65,000 GF with $65,000 Marine                                                                       
       Highway System Funds.                                                                                                    
                                                                                                                                
    · Replaced $382,000 Vehicle Rental Tax Receipts with 70%                                                                    
       GF and 30% Marine Highway System funds within                                                                            
       Reservations and Marketing section to compensate for                                                                   
       unrealized rental tax revenues statewide.                                                                                
                                                                                                                                
    · Established a new allocation for marine vessel fuel                                                                       
       within Marine Vessel Operations. This separate                                                                         
       allocation will provide for more transparency within                                                                     
       the budget for evaluating fuel consumption and cost.                                                                     
       The FY2011 fuel increment is $12.9 mill.                                                                                 
                                                                                                                                
9:59:50 AM                                                                                                                    
                                                                                                                                
ALASKA COURT SYSTEM SUBCOMMITTEE                                                                                                
                                                                                                                                
Senator Egan thanked the members of the subcommittee and of                                                                     
the Court System for their assistance on the budget.                                                                            
                                                                                                                                
JESSE KIEHL, STAFF, SENATOR DENNIS EGAN, reported that the                                                                      
subcommittee worked from the Court System's adjusted base                                                                       
and approved the following:                                                                                                     
                                                                                                                                
· funding to eliminate the vacancy savings requirement for                                                                      
    the 8 judges in the appellate courts.                                                                                       
· a small increment to cover the travel costs for the Chief                                                                     
    Justice.                                                                                                                    
· funding to phase in the fourth year of the 'No Dark                                                                           
    Courtrooms' initiative.                                                                                                     
· fixed cost increases for leases and telephones.                                                                               
· one new position for the Multi Agency Justice Integration                                                                     
    Consortium and upgraded the clerk in Craig from part time                                                                   
    to full time because of increased felony filings.                                                                           
· funding to pay retired judges a little more when they                                                                         
    come back to fill in. Without this increase they're                                                                         
    making less than half what the lowest-paid attorneys in                                                                     
    the state get.                                                                                                              
· a small increment to improve training and availability                                                                        
    for language interpreters as well as interagency receipts                                                                   
    from the Child Support division for the Family Law Self                                                                     
    Help Center.                                                                                                                
· the Mental Health Trust Authority funding for mental                                                                          
    health courts.                                                                                                              
· a small increment to the Judicial Conduct Commission to                                                                       
    keep that two-person agency at a 0% vacancy factor, and                                                                     
    funded the Judicial Council to staff an interagency                                                                         
    commission on child protection.                                                                                             
                                                                                                                                
Mr. Kiehl said the subcommittee recommends that the full                                                                        
Finance Committee make two changes that cross budget lines:                                                                     
       o move all therapeutic courts funding into the court                                                                     
           system, so funds can be tracked.                                                                                     
              o cover the increased cost of transcripts provided to                                                             
                state agencies by having the Courts bill criminal                                                               
           justice agencies.                                                                                                    
                                                                                                                                
Mr. Kiehl reported on the subcommittee's decisions                                                                              
regarding         funding,         positions,         budget        action,        and                                          
recommendations:                                                                                                                
                                                                                                                                
The   Senate    Finance     Budget    Subcommittee        for   the   Alaska    Court                                           
System     submits     an   Operating       Budget    to    the   Senate     Finance                                            
Committee for FY 11 as follows:                                                                                                 
                                                                                                                                
                          FY10 Mgt       FY11 Adj        Gov      Senate House -                                            
                             Pln           Base        Amend Subcom Amends                                                  
 Unrestricted GF             87,211.3       89,963.4  95,315.8  90,902.2  93,024.9                                            
 Designated GF                       -              -          -          -      517.3                                        
 Other                        1,481.3          506.0  1,561.3  1,561.3         1,686.3                                        
 Federal Funds                1,675.6        1,675.6  1,675.6  1,675.6         1,675.6                                        
 Total                       90,368.2       92,145.0  98,552.7  94,139.1  96,904.1                                          
                                                                                                                            
 Positions                                                                                                                  
                                                                                                                              
 PFTs                             737            737        763        740         737                                        
 PPTs                              47             47         47         46          47                                        
                                   22             22         22         22                                                    
 Temps                                                                              22                                        
 Total Positions                  806            806        832        808         806                                      
                                                                                                                              
The   Subcommittee        held    five   meetings      with    the   court    system                                            
and took the following actions:                                                                                                 
                                                                                                                                
Budget Action                                                                                                                 
The    subcommittee       accepted      the    Governor's      amended      proposal                                            
with the following adjustments:                                                                                             
                                                                                                                              
·   Denied    requests      in  the   appellate      courts     for   workstations                                              
    & furniture, and a staff attorney position upgrade.                                                                         
·   Denied    a  request     for    $278.0    to   take   control     of   the   Nome                                           
    federal     building      that    houses     the    Nome    court    and    other                                           
    offices.       The   subcommittee       notes    a  2008    appropriation       to                                          
    begin     work     on     a    Nome     State     Office      Building,        and                                          
    encourages the courts to pursue space therein.                                                                              
·   Reduced     a  request     for   $1,365.7     and   18   positions     in   Trial                                           
    Courts     to    $400.0.         This    continues       the    legislature's                                               
    multi-year       phased      approach       to   funding       the    'No    Dark                                           
    Courtrooms'       initiative.         The   Court     System    will    use    the                                          
    funds to fill existing vacant positions.                                                                                    
·   Approved     $28.0    to   upgrade     a   part-time      position     in   Craig                                           
    to  full   time.      In  the   governor's      request     this   upgrade     was                                          
    combined     with    $66.0    for   a   part   time    magistrate       trainer,                                            
    which was denied.                                                                                                           
·   Denied      a   request       for    $1,483.2       to    implement       a    new                                          
    geographic       pay     differential        study.         Court     employees                                             
    deserve    this    pay,   but   should    receive     it  concurrently       with                                           
    other state employees.                                                                                                      
·   Denied     $250.0      for    computer      replacements.            The    Court                                           
    system should husband computing resources carefully.                                                                        
·   Reduced     a  request     for   $174.7    to   increase     pro-tem     pay   for                                          
    retired     judges     to   $50.0.        When    combined     with     internal                                            
    savings     the    court     system     plans     from    Juneau     courts,      a                                         
    significant increase should be possible.                                                                                    
·   Denied     a   request     for    $499.1     to    eliminate      the    vacancy                                            
    savings      requirement        for     judicial       officers       in    trial                                           
    courts.      The   trial    courts    have   approximately        115   judicial                                            
    officers      statewide,       and     are    capable      of   carrying       the                                          
    current vacancy factor.                                                                                                     
·   Denied     a    request      for    $125.0      to    expand      the    custody                                            
    mediation program.                                                                                                          
·   Denied      a     request       for     $125.0      to     cover      increased                                             
    transcription         costs     for    the     Public     Defender       Agency,                                            
    Department      of  Law,   and   Office     of  Public    Advocacy.       Please                                            
    note the recommendation below.                                                                                              
·   Reduced      a   request      for     $526.4      and    six    positions       in                                          
    administration        and  support     to   $119.0    and   one   position     for                                          
    the Multi-Agency Justice Integration Consortium.                                                                            
·   Refined     the    Judicial      Council's      request      for    funding     to                                          
    staff    a  Child     Protection      Commission       by  reallocating        the                                          
    funding among line items.                                                                                                   
                                                                                                                                
Recommendations                                                                                                             
                                                                                                                                
The    subcommittee        recommends       the   Senate      Finance     Committee                                             
aggregate       all    therapeutic        courts      funding      in    the    court                                           
system's therapeutic courts allocation.                                                                                         
                                                                                                                                
The     subcommittee         also      recommends        the     Senate      Finance                                            
Committee      cover    the    cost   of   transcripts       provided      to   state                                           
agencies      in   the    appropriate       agency     budget,      and    give    the                                          
court    system     receipt     authority      to   bill    for   the   service     it                                          
provides.                                                                                                                       
                                                                                                                                
10:04:13 AM                                                                                                                   
                                                                                                                                
Senator     Olson    spoke     of  a   2008    appropriation       to   begin    work                                           
on    the    Nome     State      Office     Building       and     a   denial      for                                          
$278,000.      He   asked    about    the   progress     on   that   project.      Mr.                                          
Kiehl    related     that    the   Nome    State    Office     Building      was   not                                          
requested         in     the      governor's         capital        budget.        The                                          
subcommittee       felt    strongly     that   the   federal     building,      which                                           
is   currently      leased     to  the    Court    System     and   several     other                                           
agencies      at    below     market     rates,      was    a   less     attractive                                             
option     than    a   new   Nome    State     Office     Building      because     of                                          
significant       deferred      maintenance        issues.     The    subcommittee                                              
was   very    careful     to   work    with    the   Court     System     and   feels                                           
confident       that     not    assuming       management       of    the    federal                                            
building will not endanger the courts remaining open.                                                                           
                                                                                                                                
10:05:58 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT SUBCOMMITTEE                                                                      
                                                                                                                                
Senator     Egan   thanked     the   department      and   his   staff    for   their                                           
assistance on the budget.                                                                                                       
                                                                                                                                
Mr.    Kiehl     explained      that    the    administration         presented       a                                         
restrained        budget      for     the     department.        The     foundation                                             
formula     had   an   increase     of   more   than    $50   million     to  Alaska                                            
school     districts      this    year.    The   subcommittee        did   not   work                                           
with    the    formula,      but   worked     with    the    operations       of   the                                          
department.        The    department       requested       funding      for    a   few                                          
fixed     cost     increases,       which      the    subcommittee        approved.                                             
Largely,       the    subcommittee's          recommendations          mirror      the                                          
governor's amended request. The subcommittee:                                                                                   
                                                                                                                                
       · approved continuing the pre-kindergarten pilot                                                                         
           project as base funding.                                                                                             
                                                                                                                                
              · approved the governor's request for a one-time grant                                                            
                of $200.0 to Best Beginnings for early education.                                                               
                                                                                                                                
       · approved the request for 3 content specialists in                                                                      
           reading, writing, and math to help struggling school                                                                 
           districts meet the state standards                                                                                   
                                                                                                                                
       · pulled all the funding for the state's system of                                                                       
           support - including the new positions - out of the                                                                   
           commissioner's office and put it in a separate                                                                       
                allocation in the Division of Teaching & Learning                                                               
           Support.                                                                                                             
                                                                                                                                
       · added $600.0 to the grants line in Early Learning                                                                      
           Coordination for the department to allocate between                                                                  
           Best   Beginnings      and   the   Parents    as   Teachers     program.                                             
           recommends      intent    language     giving    the   department      the                                           
           responsibility        to  allocate     the   money    between    the   two                                           
           programs.                                                                                                            
The subcommittee did not take up carryforward authorization                                                                     
for the federal stimulus funds, but recommended full                                                                            
Finance Committee approval so districts can use the second                                                                      
and final year of stimulus dollars.                                                                                             
                                                                                                                                
Turning to the Court System budget, my subcommittee members                                                                     
were Sens. Paskvan and Dyson.                                                                                                   
                                                                                                                                
· Working from the Adjusted Base, the subcommittee approved                                                                     
    funding to eliminate the vacancy savings requirement for                                                                    
    the 8 judges in the appellate courts.                                                                                       
· We approved a small increment to cover the travel costs                                                                       
    for the Chief Justice.                                                                                                      
· The subcommittee approved funding to phase in the fourth                                                                      
    year of the 'No Dark Courtrooms' initiative.                                                                                
· We met fixed cost increases for leases and telephones.                                                                        
· We approved one new position for the Multi Agency Justice                                                                     
    Integration Consortium and upgraded the clerk in Craig                                                                      
    from part time to full time because of increased felony                                                                     
    filings.                                                                                                                    
· The subcommittee also provided funding to pay retired                                                                         
    judges a little more when they come back to fill in.                                                                        
    Without this increase they're making less than half what                                                                    
    the lowest-paid attorneys in the state get.                                                                                 
· We approved a small increment to improve training and                                                                         
    availability for language interpreters as well as                                                                           
    interagency receipts from the Child Support division for                                                                    
    the Family Law Self Help Center.                                                                                            
· We approved the Mental Health Trust Authority funding for                                                                     
    mental health courts.                                                                                                       
· The subcommittee also gave a small increment to the                                                                           
    Judicial Conduct Commission to keep that two-person                                                                         
    agency at a 0% vacancy factor, and funded the Judicial                                                                      
    Council to staff an interagency commission on child                                                                         
    protection.                                                                                                                 
· Finally, we recommend the full Finance Committee make two                                                                     
    changes that cross budget lines:                                                                                            
              o We need to move all therapeutic courts funding into                                                             
           the court system, so we can track exactly how those                                                                  
           funds are being spent.  Therapeutic courts work, and                                                                 
           we need to make certain they're running as                                                                           
           effectively and efficiently as possible.                                                                             
              o The subcommittee also recommends the full Committee                                                             
           cover the increased cost of transcripts provided to                                                                  
                state agencies by having the Courts bill criminal                                                               
           justice agencies. My office has worked with the                                                                      
           courts and the administration to develop an                                                                          
           amendment that will get this done.                                                                                   
                                                                                                                                
                                                                                                                                
Mr.   Kiehl    shared    the   results     of   the   subcommittee's        findings                                            
in fund, position, and budget action:                                                                                           
                                                                                                                                
The   Senate     Finance     Budget     Subcommittee        for   the    Department                                             
of    Education       &   Early     Development        submits      an    Operating                                             
Budget      to   the     Senate     Finance      Committee       for     FY   11    as                                          
follows:                                                                                                                        
                                                                                                                                
                                                                                                                                
                          FY10 Mgt       FY11 Adj        Gov        Senate      House -                                     
                             Pln           Base        Amend+ Subcom             Amds                                       
                                                                                                                            
 Unrestricted GF             55,618.3       53,447.4  55,892.3  56,492.3  56,672.3                                            
 Designated GF               14,478.3       14,478.3  12,279.6  12,279.6  12,279.6                                            
 Other                       20,785.8       20,786.5  22,546.1  22,546.1  22,546.1                                            
 Federal Funds              293,373.6      214,960.3  215,030.3  215,030.3  215,030.3                                         
 Total                      384,256.0      303,672.5  305,748.3  306,348.3  306,528.3                                       
                                                                                                                            
 Positions                                                                                                                  
                                                                                                                              
 PFTs                             332            330         334         334         334                                      
 PPTs                              15             13          13           13          13                                     
                                    3              3           3            3                                                 
 Temps                                                                                  3                                     
 Total Positions                  350            346         350         350         350                                    
                                                                                                                              
The   Subcommittee       held    four   meetings     with    the   department      and                                          
took the following actions:                                                                                                     
                                                                                                                                
Budget Action                                                                                                                 
                                                                                                                                
Accepted     the    Governors      amended     proposal     with    the   following                                           
adjustments:                                                                                                                  
                                                                                                                              
·   Deferred     carryforward       authorization       for   American      Recovery                                            
    and Reinvestment Act funds to the full Finance Committee.                                                                   
                                                                                                                                
·   Created    a  new   allocation      in   Teaching     and   Learning     Support                                            
    for the "State System of Support."  This allocation                                                                         
    contains resources the state dedicates to helping low-                                                                      
    performing districts and those districts failing to make                                                                    
    Adequate Yearly Progress.                                                                                                   
                                                                                                                                
       o Transferred the funds ($508.4 GF) and positions                                                                        
                                                                                     th                                         
           (3PFT)    appropriated       as  a  result     of  SB  285   in   the  25                                            
           Legislature,       along    with   $824.2    appropriated       in   FY  10                                          
           out     of    Executive        Administration          into     the     new                                          
           allocation.                                                                                                          
       o Granted $291.7 and three positions requested by the                                                                    
           governor to hire content specialists in reading,                                                                     
           writing, and mathematics, but placed the funds and                                                                   
           positions in the new allocation.                                                                                     
                                                                                                                                
ƒAdded $600.0 to the grants line in Early Learning                                                                             
    Coordination for the department to allocate between Best                                                                    
    Beginnings and the Parents as Teachers program.  The                                                                        
    subcommittee recommends the following intent language:                                                                      
                                                                                                                                
       It    is   the    intent     of   the    legislature       that    this                                                  
       funding      be    granted      by    the    Department        in    the                                                 
       manner       the     Department        determines         will     most                                                  
       effectively        enhance     pre-kindergarten          educational                                                     
       development        to:    Best    Beginnings        for    its    early                                                  
       education,        partnership         grant      and     Imagination                                                     
       Library     efforts;      and/or     to  existing      providers      of                                                 
       Parents as Teachers pre-kindergarten efforts.                                                                            
                                                                                                                                
10:08:46 AM                                                                                                                   
                                                                                                                                
Co-Chair        Hoffman       differed        with      calling       the     budget                                            
"restrained".        He   commented      that    the   foundation       formula     is                                          
being    given    in  excess    of   $50   million.     This    was  an   item   that                                           
the    bi-partisan         working      group     intended       to    address      in                                          
keeping      with     a   promise      to    the    education       community       of                                          
fulfilling      the    foundation      formula.      It  equals     a  substantial                                              
increase to the Department of Education.                                                                                        
                                                                                                                                
10:09:40 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF CORRECTIONS SUBCOMMITTEE                                                                                          
                                                                                                                                
Senator      Ellis      reported       on    the    subcommittee's          findings                                            
regarding      fund   source,     personnel,      budget,     action,     amendment                                             
action, and items of concern:                                                                                                   
                                                                                                                                
The    Senate      Finance       Subcommittee        on    the     Department       of                                          
Corrections       submits     an   operating     report     to   the   full   Senate                                            
Finance Committee for Fiscal Year 2010 as follows:                                                                              
                                                                                                                                
Fund Source:                                                                                                                  
                                                                                                                              
                  FY10              FY11              FY 11 Senate Difference                                                 
                  Management        Governor's        Subcommittee (Governor to                                               
                  Plan              Amended                             Senate Sub)                                         
                                    Adjusted Base                                                                             
                        212,688.8         218,227.2          225,876.6 7,649.4 (3.5%)                                         
Unrestricted                                                                                                                  
General Funds                                                                                                                 
                          16,153.9         15,302.4           15,452.4 150.0 (1.0%)                                           
Designated                                                                                                                    
General Funds                                                                                                                 
                          16,548.5         16,548.5           16,548.5                0                                       
Federal Funds                                                                                                                 
                           3,187.3          3,003.4            3,103.4 100.0 (3.3%)                                           
Other Funds                                                                                                                   
                                                                                                                                
Total                   248,578.5         253,081.5          260,980.9          7,899.4                                 
                                                                                (3.1%)                                     
                                                                                                                              
Personnel:                                                                                                                    
                                                                                                                                
The   Subcommittee       reviewed     the   authorized       position     count    for                                          
the    Department.          The    Governor's       amended     budget      proposal                                            
requested       three      new     positions.           The     Subcommittee        is                                          
recommending three new positions.                                                                                               
                                                                                                                                
                      FY10 Authorized FY11 Governor's FY 11 Senate                                                            
Position Summary                            Amended Adjusted Subcommittee                                                   
                                       Base                                                                                   
                                     1510                  1509                   1509                                        
Permanent Full                                                                                                                
Time                                                                                                                          
                                        1                      2                      2                                       
Permanent Part                                                                                                                
Time                                                                                                                          
                                        0                      0                      0                                       
Temporary                                                                                                                     
                                     1511                  1511                   1511                                        
Total                                                                                                                         
                                                                                                                                
Budget Action:                                                                                                                
                                                                                                                                
The   Subcommittee       held    four   meetings     with    the   Department      and                                          
took the following actions:                                                                                                     
                                                                                                                                
    1. Adopted the Fiscal Year 2010 Adjusted Base.                                                                              
                                                                                                                                
    2. Reviewed each of the increments and decrements                                                                           
              submitted by the Governor.  Recommends the adoption of                                                            
              the Governor's proposal with the following exceptions:                                                            
                                                                                                                                
           a. Adopt Inc 8,000.0 UGF/100.0 Fed "FY2011 Wage,                                                                     
               Health Insurance, and Geographic Differential                                                                    
               Increases for the ACOA Bargaining Unit" in the                                                                   
               Institution Director's Office allocation of the                                                                  
               Population Management appropriation.                                                                             
                                                                                                                                
                b. 12 TrIn/TrOut transactions totaling 4,528.9 UGF                                                              
               from each of the correctional center allocations                                                                 
               of the Population Management appropriation into a                                                                
               new 24 Hour Institutional Utilities                                                                              
               Appropriation.                                                                                                   
                                                                                                                                
           c. 6 TrIn/TrOut transactions totaling 6,041.1                                                                        
                   UGF/111.7 Fed/70.8 I/A Receipts from various                                                                 
               allocations and appropriations into a new                                                                        
               Offender Habilitation appropriation.                                                                             
                                                                                                                                
           d. Change Inc 150.0 UGF "Construction Apprenticeship                                                                 
               Program funding request" to 150.0 STEP for the                                                                   
               same purpose.                                                                                                    
                                                                                                                                
           e. Reduce Inc 1242.8 UGF "Fund New Housing Units at                                                                  
               Wildwood Correctional Center" to Inc 1104.3 UGF                                                                  
               for the same purpose.                                                                                            
                                                                                                                                
           f. Reduce Inc 400.0 UGF for "Increased Community                                                                     
               Residential Contracts Costs" to 337.9 UGF for the                                                                
               same purpose.                                                                                                    
                                                                                                                                
           g. Adopt one statement of Legislative Intent:                                                                        
                                                                                                                                
                 i. "It is the intent of the legislature that                                                                   
                      the Department of Corrections will provide                                                                
                      detailed     information      to   the  legislature       on  a                                           
                      quarterly     basis    regarding      the  success     of  the                                            
                      Offender     Habilitation       programs     with   a  strong                                             
                      focus on performance and outcomes" in the                                                                 
                      new Offender Habilitation appropriation.                                                                  
                                                                                                                                
Amendment Action:                                                                                                             
                                                                                                                              
    1. Reviewed and recommends the adoption of the operating                                                                    
       budget amendment (one increment) submitted by the                                                                        
       Governor.                                                                                                                
                                                                                                                              
Items of Concern:                                                                                                             
                                                                                                                              
    1. For many years the expansion of the Yukon-Kuskokwim                                                                      
              Correctional Center in Bethel has been a high-priority                                                            
              project for the Legislature, leading to its inclusion                                                             
       in 2004's Senate Bill 65, which authorized the state                                                                     
       to   assist    communities      in   building     or  expanding                                                          
       correctional facilities.  While the construction of                                                                      
       the Goose Creek Correctional Center in the Mat-Su                                                                        
              Valley is underway, and a number of smaller expansion                                                             
       projects in facilities like Wildwood Correctional                                                                        
       Center    in   Kenai    have   taken    place,    YKCC   remains                                                         
       incomplete.        For   the   second    year   in   a row,    the                                                       
       Subcommittee discussed this issue and the lack of                                                                        
       progress over the years with the Department, and                                                                         
              remains committed to continuing this discussion until                                                             
       the community and legislators are satisfied with the                                                                     
       Department's progress in Bethel.                                                                                         
                                                                                                                                
    2. In the last few years, there have been significant                                                                       
              advances in the development of results-based programs                                                             
       that can reduce recidivism and cut costs by                                                                              
              diminishing the inmate population.  The Institute for                                                             
       Social and Economic Research at UAA and the Pew                                                                          
       Foundation for the States have released reports in                                                                       
       recent months detailing Alaska's need for increased                                                                      
              education, job training, and substance abuse treatment                                                            
              programs, and the potential for significant long-term                                                             
       cost    savings    as   a result.       The  Subcommittee       is                                                       
       committed to working with the Commissioner and the                                                                       
       Department to both monitor the success of current                                                                        
       programs     to   ensure    that   they   are   providing      the                                                       
       necessary      results,     and   investing     in   additional                                                          
       programs     with    results    supported      by  statistical                                                           
       evidence.                                                                                                                
                                                                                                                                
10:13:06 AM                                                                                                                   
                                                                                                                                
Co-Chair Hoffman informed the committee about another                                                                           
funding vehicle, the supplemental budget. The Correctional                                                                      
Officers' contract will be covered in that bill.                                                                                
                                                                                                                                
10:14:04 AM                                                                                                                   
                                                                                                                                
DEPARTMENT OF ENVIRONMENTAL CONSERVATION SUBCOMMITTEE                                                                           
                                                                                                                                
Senator      Ellis    provided      an   overview      of    DEC's    budget.      The                                          
subcommittee         approved      a    budget      of    $18,189,200        in    new                                          
general     funds    and    $75,647,100       in   total    funds,     an   increase                                            
of   $100,400     over    the   governor's       proposal.      The   subcommittee                                              
approved     534    full-time      and   538   total    positions,      a   decrease                                            
of 4 full-time positions from the governor's proposal.                                                                          
                                                                                                                                
Senator      Ellis     reported       on    the    subcommittee's         findings,                                             
including      fund    source,     personnel,      budget     action,     amendment                                             
action, and items of concern:                                                                                                   
                                                                                                                                
The    Senate      Finance       Subcommittee        on    the     Department       of                                          
Environmental        Conservation        submits     an   operating      report     to                                          
the   full    Senate     Finance     Committee      for   Fiscal     Year    2011   as                                          
follows:                                                                                                                        
                                                                                                                                
Fund Source:                                                                                                                  
                                                                                                                              
                  FY10              FY11              FY 11 Senate Difference                                                 
                  Management        Governor's        Subcommittee (Governor to                                               
                  Plan              Amended                             Senate Sub)                                         
                          17,330.4         18,088.8           18,189.2 100.4 (0.6%)                                           
Unrestricted                                                                                                                  
General Funds                                                                                                                 
                          24,816.7         24,972.7           24,972.7                0                                       
Designated                                                                                                                    
General Funds                                                                                                                 
                          10,259.0         10,260.7           10,260.7                0                                       
Federal Funds                                                                                                                 
                          21,564.9         22,224.5           22,224.5                0                                       
Other Funds                                                                                                                   
                          73,971.0         75,546.7           75,647.1 100.4 (0.1%)                                           
Total                                                                                                                         
                                                                                                                              
                                                                                                                              
Personnel:                                                                                                                    
                                                                                                                                
The   Subcommittee       reviewed     the   authorized       position     count    for                                          
the    Department.          The    Governor's       amended     budget      proposal                                            
requested        one     new      position.            The     Subcommittee         is                                          
recommending three new positions.                                                                                               
                                                                                                                                
                      FY10 Authorized FY11 Governor's FY 11 Senate                                                            
Position Summary                            Amended               Subcommittee                                              
                                      532                    538                    534                                       
Permanent       Full                                                                                                          
Time                                                                                                                          
                                         2                     2                      2                                       
Permanent Part                                                                                                                
Time                                                                                                                          
                                         7                     7                      7                                       
Temporary                                                                                                                     
                                      541                    547                    543                                       
Total                                                                                                                         
                                                                                                                                
Budget Action:                                                                                                                
                                                                                                                                
The Subcommittee held three meetings with the Department                                                                        
and took the following actions:                                                                                                 
                                                                                                                                
    3. Adopted the Fiscal Year 2010 Adjusted Base.                                                                              
                                                                                                                                
    4. Reviewed each of the increments and decrements                                                                           
              submitted by the Governor.  Recommends the adoption of                                                            
              the Governor's proposal with the following exceptions:                                                            
                                                                                                                                
           a. Deny 5 PFT related to Inc 300.0 Fed/300.0 G/F                                                                     
               Match "Environmental Protection Agency Drinking                                                                  
               Water Rule Implementation" to the Drinking Water                                                                 
               allocation of the Environmental Health                                                                           
               appropriation.                                                                                                   
                                                                                                                                
           b. Adopt Inc 100.4 UGF "Add One Environmental Health                                                                 
               Officer to Focus on Retail Food Establishment                                                                    
               Safety Inspections" to the Food Safety and                                                                       
               Sanitation allocation of the Environmental Health                                                                
               appropriation.                                                                                                   
                                                                                                                                
           c. Adopt three statements of Legislative Intent:                                                                     
                                                                                                                                
                 i. "It is the intent of the Legislature that                                                                   
                      the Department of Environmental Conservation                                                              
                      return to the Legislature by the first day                                                                
                      of the 27th Legislature with a proposal to                                                                
                      make the Spill Prevention and Response fund                                                               
                      sustainable through an increased surchange                                                                
                      rate and/or a surcharge for non-taxable                                                                   
                      barrels of oil transported in the state" to                                                               
                        the Spill Prevention and Response                                                                       
                      appropriation.                                                                                            
                                                                                                                                
                ii. "It is the intent of the Legislature that                                                                   
                      the Department of Environmental Conservation                                                              
                      and the Department of Labor and Workforce                                                                 
                      Development collaborate to develop a                                                                      
                      workforce development plan to train Alaskans                                                              
                      for jobs as Ocean Rangers" to the Water                                                                   
                      Quality allocation of the Water                                                                           
                      appropriation.                                                                                            
                                                                                                                                
              iii. "It is the intent of the Legislature that                                                                    
                      the Department of Environmental                                                                           
                      Conservation, the Department of Natural                                                                   
                      Resources, and the Department of Fish and                                                                 
                      Game work together to develop a plan to                                                                   
                      remove fish waste from the Kenai and Kasilof                                                              
                      Rivers dipnet fishery and maintain a safe                                                                 
                      and attractive riverfront" to the Water                                                                   
                      Quality allocation of the Water                                                                           
                      appropriation.                                                                                            
                                                                                                                              
Amendment Action:                                                                                                               
                                                                                                                                
    2. The Governor did not submit operating budget                                                                             
       amendments for DEC.                                                                                                      
                                                                                                                              
Items of Concern:                                                                                                             
                                                                                                                                
    1. The Subcommittee has serious concern about the                                                                           
       sustainability of the Spill Prevention and Response                                                                      
              Fund.   This year, the Fund will expend approximately                                                             
       $7.7 million more than its estimated revenues.  Over                                                                     
              the next few years, this problem is expected to worsen                                                            
              as the level of oil production declines, and the Fund                                                             
       is projected to be insolvent by FY2014.  The                                                                             
       Department has done significant work to extend the                                                                       
       life of the fund, including efficiencies, cost                                                                           
       recovery, and a significantly decreased capital                                                                          
       improvement program (from $5.7M in FY 2010 to $2M in                                                                     
              FY2011 to 0 in FY2012 and forward).  The Subcommittee                                                             
       plans to work with the Department to adjust the                                                                          
              current $0.04 surcharge on each barrel of oil produced                                                            
       in the state - including extending the surcharge to                                                                      
       barrels produced off of state lands but transported                                                                      
              across them and/or a potential increase in the rate of                                                            
       the surcharge.  We are extremely concerned, and are                                                                      
       sounding the alarm about the fund's rate of decline.                                                                     
                                                                                                                                
    2. The Subcommittee had considerable discussion regarding                                                                   
       the deficiency of the food safety inspection program                                                                     
       and the disparity between the Department's funding                                                                       
       level and the expectations of the public at large.                                                                       
       Even with the addition of an additional food safety                                                                      
       inspector and related costs included in the                                                                              
              Subcommittee's recommendation, the Department expects                                                             
       to be able to inspect significantly less than both                                                                       
       DEC's and the federal Food and Drug Administration's                                                                     
              recommendations.  This serious shortfall threatens the                                                            
       health and safety of people across the state, but is                                                                     
       felt strongest in rural areas, where costs drive                                                                         
       inspection rates even lower than the statewide                                                                           
       average.                                                                                                                 
                                                                                                                                
10:17:51 AM                                                                                                                   
                                                                                                                                
Co-Chair      Hoffman      shared     the   process      of   working      with    the                                          
bill.    He   hoped    to  make    a  budget     within    Alaska's     means,     but                                          
yet    address     its   needs.     The    budget     is   approximately        $15.8                                           
million      less    than    what     the    governor      requested.       It   also                                           
contains     a  reduction      of   positions     from    21,626    to  21,591     and                                          
an   increase     of   two   part-time      positions     and    a  status    quo   of                                          
659 temporary positions.                                                                                                        
                                                                                                                                
AT-EASE               10:19:21 AM                                                                                             
RECONVENED            10:20:25 AM                                                                                             
                                                                                                                                
Co-Chair      Stedman      MOVED     to    adopt     all    FY    2011    operating                                             
budget     subcommittee        closeout       reports      as   presented,       with                                           
attached     legislative       finance     backup    to   be  included     into    the                                          
CS. There being NO OBJECTION, it was so ordered.                                                                                
                                                                                                                                
Co-Chair      Hoffman      related     the    schedule      for    tomorrow.       Co-                                          
Chair Stedman added more bills to the afternoon schedule.                                                                       
                                                                                                                                

Document Name Date/Time Subjects
HB 300 HB 302GOVs Operating Amendments February 17 2010.pdf SFIN 3/23/2010 9:00:00 AM
HB 300
HB 302
HB300HB302MEDICAID SPENDING Report cover.docx HFIN 2/25/2010 1:30:00 PM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
HB 302
Medicaid-Special Report House Finance Feb 2010 HB300 HB302.docx HFIN 2/25/2010 1:30:00 PM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
HB 302
Medicade Ependitures & Projections PowerPoint HB300-302.pdf HFIN 2/25/2010 1:30:00 PM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
SB 302 Bill Packet.pdf SFIN 3/23/2010 9:00:00 AM
SL&C 3/9/2010 1:30:00 PM
SB 302
HB 300 HB302 Operating Budget Summary.pdf HFIN 3/1/2010 1:30:00 PM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
HB 302
Operating Budget Amendments 030810.pdf HFIN 3/8/2010 1:30:00 PM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
Amendment 14A 030810.pdf HFIN 3/8/2010 1:30:00 PM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
Operating Budget Amendment #33 030810.pdf HFIN 3/8/2010 1:30:00 PM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
HB 300 Amendment Package with Actions.pdf HFIN 3/9/2010 9:00:00 AM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
HB 300 Letters Public.pdf HFIN 3/9/2010 9:00:00 AM
SFIN 3/23/2010 9:00:00 AM
SFIN 3/24/2010 9:00:00 AM
HB 300
HB 300 HB 302