Legislature(2007 - 2008)HOUSE FINANCE 519
01/16/2008 01:00 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Fy 2009 Budget Overview and Policy Discussion | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
JOINT
HOUSE FINANCE COMMITTEE
SENATE FINANCE COMMITTEE
January 16, 2008
1:11 p.m.
CALL TO ORDER
Co-Chair Chenault called the Joint House and Senate Finance
Committee meeting to order at 1:11:01 PM.
HOUSE MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Les Gara
Representative Mike Hawker
Representative Reggie Joule
Representative Mike Kelly
Representative Mary Nelson
Representative Bill Thomas Jr.
SENATE MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Fred Dyson
Senator Kim Elton
Senator Donald Olson
Senator Joe Thomas
MEMBERS ABSENT
Representative Richard Foster
Senator Bert Stedman, Co-Chair
ALSO PRESENT
Representative Anna Fairclough; Representative Bob Buch;
Governor Bill Sheffield; Karen Rehfeld, Director, Office of
Management and Budget, Office of the Governor; Joan Brown,
Chief Budget Analyst, Office of Management and Budget; John
Boucher, Senior Economist, Office of Management and Budget;
Craig Campbell, Adjutant General, Commissioner, Department
of Military & Veterans Affairs; Jack Kreinheder, Chief
Analyst, Office of Management and Budget.
SUMMARY
^FY 2009 Budget Overview and Policy Discussion
Office of Budget and Management
Co-Chair Chenault convened the Joint House and Senate
Finance Committee meeting in order to review Governor
Palin's FY09 budget proposal overview and policy discussion
provided by the Office of Management and Budget.
Co-Chair Chenault reminded all listeners that the documents
referred to in the meeting are posted on the Legislative
Finance Website at
www.legfin.state.ak.us/Finance/FinanceDocuments.
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
provided members with a handout of the presentation (Copy on
File). She noted that the Governor, in preparation for the
first 90-day session, had asked the Office of Management and
Budget (OMB) and state agencies for a reasonable and
responsible spending plan for 2009 based on key priority
areas: resource development, education, transportation, and
public health and safety. The Governor hoped an early
release of a comprehensive budget plan would help facilitate
the budget process.
1:18:20 PM
Ms. Rehfeld began with an overview of the Governor's two-
year savings proposal. Throughout the special session on the
oil tax legislation, the focus was on savings and where the
State should invest or save the Alaska's Clear and Equitable
Share (ACES) surplus. The intent language in the ACES
legislation highlighted key areas for savings, reflected in
the chart in Slide 3. The Governor used that intent language
to develop an on-line survey participated in by over 11,000
Alaskans. The estimate of the surplus over two years is $4.6
billion: $3 billion from FY08 and $1.6 from FY09. The chart
highlights the Governor's proposal to transfer $2.4 from the
Earnings Reserve Account into the principal of the Permanent
Fund, $2.6 billion to the Public Education Fund, $1 billion
for the Alaska Transportation Fund, $450 million into the
Teacher Retirement System (TRS), $379 to the Constitutional
Budget Reserve (CBR), and $250 million for energy programs.
1:20:08 PM
Ms. Rehfeld identified the two-year savings plan as the
heart of future policy discussions.
The Governor proposed the transfer of the deposit of the
Earnings Reserve into the principal of the Permanent Fund
when she took office last year. That bill is still before
the Legislature. The Governor will be proposing amendments
to the legislation and ask for consideration of the
transfer.
1:21:12 PM
Ms. Rehfeld turned to Slide 5, which estimates by fiscal
year the surplus the Governor wants to put in various
components of her savings plan. The nearly $2.6 billion
total in the Public Education Fund comes from the FYO8
surplus of $1.6 billion added to the $1 billion FY09
surplus. Similarly, the Transportation Fund totals $1
billion ($500 million from each of FY08 and FY09); the
Teacher Retirement System (TRS) Unfunded Liability Deposit
of $450 million is from the FY08 surplus; $379 million to
the Constitutional Budget Reserve is the $224 million FY08
surplus added to $155 million from FY09; and finally a $250
million surplus from FY08 will go into the Energy Fund.
Ms. Rehfeld described education (Slide 6) as a clear
priority for the Governor. She emphasized that the goal is
to provide a stable and predictable source of funding for
Alaska's K-12 education. The savings plan builds on the work
of the Joint Legislative Education Funding Task Force, which
is before the Legislature. She referred to proposed
amendments that the Governor would like to offer,
specifically in the Base Student Allocation (BSA) and in
pupil transportation.
Ms. Rehfeld moved on to Slide 7 and the goal of the
Administration to create diverse and flexible funding
streams to meet Alaska's transportation requirements and
avoid tripling the gas tax. She emphasized the importance of
a transportation infrastructure to Alaska's economy. The
Governor has introduced a bill that would create an Alaska
state transportation fund with a market payout of
approximately $50 million a year. The fund could grow over
time with additional deposits. To generate an equivalent
amount of revenue through the gas tax, the State would have
to increase the per gallon tax from 8 cents to roughly 25
cents.
1:25:20 PM
Ms. Rehfeld described the Governor's proposed deposit of
$450 million to the Teachers Retirement System (TRS) (Slide
8), reflected in the FY09 budget as a $46 million savings.
She referred to a current unfunded liability in excess of $8
billion: approximately $3 billion in TRS and $5.5 in the
Public Employees Retirement System (PERS). The deposit would
give Alaska immediate savings. Several things would have to
happen in order for that savings to occur. Senate Bill 125,
still pending before the Legislature, would make the rates
(22 percent for PERS and 12.56 percent for TRS) permanent.
This will provide fiscal predictability for retirement costs
to municipalities and school districts. The bill would also
convert PERS to a cost share system.
1:27:02 PM
Ms. Rehfeld addressed the Constitutional Budget Reserve
(CBR) (Slide 9). This primary emergency reserve fund was
created by the voters in 1990 to insulate the State from
price swings like the ones that devastated Alaska's economy
in the mid 1980s. She said about $7 billion has been
deposited in the CBR and the Legislature has drawn out
approximately $5.2 billion. She emphasized the Governor's
commitment to paying back these withdrawals, including a
current year deposit of $50 million. The $379 million
deposit referred to in the slide was recently completed.
Co-Chair Chenault pointed out that current law requires the
settlement money be deposited into the CBR account. Ms.
Rehfeld concurred, saying there would be further discussions
about the appropriation language for the CBR as the
Governor's Office and Legislature work on the bills
together.
Ms. Rehfeld referenced Slide 10, goals for energy programs.
The Governor is proposing that $250 million from the FY08
surplus be used as the funding source for the Renewable
Energy Fund, which will be used for energy projects. She
referred to the Governor's recent speech covering the
appointment of an energy coordinator, the funding to match
Denali Commission funds for conservation, and working with
the Alaska Housing Finance Corporation on weatherization
programs. The Administration acknowledges that affordable,
reliable energy is critical to the State's economic well
being.
1:29:59 PM
Senator Hoffman commented on the $2.4 billion the
Administration proposes to put into the Permanent Fund and
asked if those dollars were needed to bridge the gap between
now and the first gas. Ms. Rehfeld believed they could make
the transfer from The Earnings Reserve Account into the
Permanent Fund.
Senator Hoffman further asked if there is a cash-flow chart
showing how this gets accomplished. Ms. Rehfeld answered
that the cash-flow chart could be provided. She said there
are several assumptions that need to be made in order to
transition to first gas.
Senator Hoffman agreed the Legislature should be as
conservative as possible in order to assure the people of
Alaska that if the money is locked away the State won't be
faced with drastic reductions in the operating or capital
budgets, or forced to enact an income or sales tax. He
questioned if the Administration proposes tripling the gas
tax if it is unable to put $1 billion into the Alaska
Transportation Fund.
1:32:32 PM
Ms. Rehfeld thought it unlikely that the Governor would
increase the gas tax that dramatically. She believed the
Governor's preference, if the Legislature is not amenable to
the transportation fund, would be the CBR. The Governor is
not interested in increasing the gas tax.
1:33:46 PM
Senator Hoffman's voiced a question regarding the $2.6
billion earmarked for the Education Fund. He wondered if
this was a long-term savings plan or if the Administration
believed there would be withdrawals in the near future. He
wanted to know if the State plans on carrying forward a
three year surplus in the Education Fund. Ms. Rehfeld said
the $2.6 billion would pay for the three year education
funding plan before the Legislature.
Senator Hoffman asked if the Administration intended in 2010
to start withdrawing from that fund until it was depleted or
if there were level it should be maintained at for the long
term.
Ms. Rehfeld thought it would be important to maintain and
forward funds each year. While building the FY10 and FY11
budgets, the State should plan ahead in order to keep
replenishing the Fund into future years. She defended the
idea of "forward funding" education.
1:35:54 PM
Co-Chair Meyer followed up on Senator Hoffman's remarks.
Regarding locking up the Permanent Fund earnings, he voiced
concern that it would be many years until Alaska gets gas
revenue, making an obvious gap. More discussion will be
needed as well as cash flow analysis to show the viability
of putting this money into the Permanent Fund.
Regarding the Public Education Fund Co-Chair Meyer asserted
the House came up with the idea two years ago with the
intent of prefunding education one year in advance, not
three. He suggested that instead of the $2.6 billion that is
being proposed, the State aggressively invest the additional
$1.6 billion and put it in a CBR sub-account for a good
return.
1:39:48 PM
Ms. Rehfeld agreed it was important to openly discuss where
to put the funds. Co-Chair Meyer stated his intention to
clarify and consolidate Alaska's many funds, hoping for
bigger return. He thought the transportation fund, energy
fund, and others were good ideas, but that the State could
reach the same goal by taking the money out of the CBR,
which he believed the public sees as a savings account. Ms.
Rehfeld agreed that the situation is complex.
1:42:09 PM
Representative Crawford, referring to Slide 8, asked for an
explanation of the "immediate FY09 savings of $46 million"
by contributing $450 million to the TRS. Ms. Rehfeld said
because TRS is a general fund program the immediate return
would be greater. Representative Crawford understood the
reason and wanted to know why the State wouldn't do the same
thing with PERS. Ms. Rehfeld responded that the Governor
chose to put the surplus in TRS, understanding that the
Legislature may choose to put it into PERS.
Representative Crawford asked how the Administration
envisions the energy fund working, whether as an endowment
or loan fund. Ms. Rehfeld said it would be a fund that could
be used as grants or loans with an advisory panel looking at
projects. She stated the Governor's interest in working on
HB 152 or similar legislation to work out the details.
1:47:06 PM
Co-Chair Chenault wondered if there was an actuarial
statement.
JACK KRIENHEADER, ANALYST, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF GOVERNOR said there had been verbal discussions
with the actuary.
Representative Gara did not see opportunity for people not
born with it in the budget. He referred to an early
education task force charged with developing an education
plan for 3-5 year olds. Forty other states have such a plan,
but Alaska does not. Children who receive early education
succeed in greater numbers. He questioned the
Administration's priorities regarding early education.
Ms. Rehfeld agreed that early learning is foundational for
later success. She acknowledged the Administration had not
increased the funding for the Best Beginnings group although
there is an amount in the operating budget. The Governor did
hold the Best Beginnings Summit in December and is
developing a state-wide plan for early learning programs.
1:50:00 PM
Representative Gara said the group has been around for a
long time and have made recommendations, but have not acted.
He asked if any early learning classrooms would be opened
under the budget as written. Ms. Rehfeld answered that the
State does not fund early learning classrooms although some
school districts fund them through their K-12 budgets.
Representative Gara suggested increased funding for Head
Start instead of continuing to cut the program. Ms. Rehfeld
agreed Head Start has been flat-funded for some time. The
Best Beginnings group is working on this. She said the
Governor's priorities are increases for K-12. Representative
Gara reiterated his concerns regarding early education.
Senator Huggins asked for a copy of budget guidelines in
order to get more understanding of the Governor's priorities
as well as the goals and constraints of the budget.
1:56:10 PM
Ms. Rehfeld answered the Governor's priorities have been
very clear. Senator Huggins said they were not clear to him.
1:58:19 PM
Representative Hawker questioned the use of the word
"savings" used by the Administration. As an accountant, he
interprets what he sees in the budget as deferred spending
and also as a lateral transfer of money that has already
been saved, the Permanent Fund money. Ms. Rehfeld said that
Alaska has the opportunity because of a surplus to "set
aside" money, knowing the State will have to access these
funds in the future for priority areas. The Administration
views putting money into the CBR as putting it into a
savings account.
Representative Hawker, continuing to address the concept of
set-asides, expressed "serious concerns" about the
Legislature getting away from the foundations of Alaska's
Constitution. He referred to Article 9, Finance and
Taxation, Section 7, known as the Prohibition Against
Dedicated Funds, which states: "The proceeds of any state
tax or license shall not be dedicated to any special
purpose." He questioned how the Administration reconciles
their whole proposal with the intent of the drafters of the
Constitution.
2:03:37 PM
Ms. Rehfeld said the Legislature does have the power to
appropriate from dedicated funds. Representative Hawker and
Ms. Rehfeld debated the intent of the drafters of the
Constitution regarding dedicated and designated funds and
the Governor's intent in the Administration's approach to
the budget.
2:05:33 PM
Senator Dyson agreed with comments made by Representative
Hawker. He added for the record that he did not agree that
government-controlled early childhood education is the best
policy.
2:06:17 PM
Senator Elton thanked Representative Hawker for his comments
and stated that he shares Representative Hawker's concerns.
He added that the Legislature knows the intent of the
drafters of the Constitution. The Legislature has come up
with a political and artful solution that gets around that
intent.
2:07:19 PM
Representative Nelson spoke to early learning programs and
lowering the compulsory school age. She asked that parents
who would like their younger children to go to an early
learning program have a state-funded program to send them
to.
2:08:20 PM
Ms. Rehfeld continued with the budget plan presentation
beginning with Slide 11. The total budget of $8.3 billion
includes and savings investments of $1.9 billion, but does
not include the Permanent Fund. The general fund represents
53% of the total budget, federal funds 31% and other funds
16%.
Slide 12 provided a snapshot comparison of FY08 changes.
She noted the different percentages.
2:10:07 PM
Ms. Rehfeld pointed out that Slide 13 breaks out the various
components of the budget. The first component is the agency
operations non-formula portion totaling $1.7 billion. She
highlighted increases including agency and university
bargaining increases, public safety and protection,
workforce development, court system, Alaska Marine Highway,
elections, ACES implementation and resource development and
protection.
She noted the $105 million built into the general fund
budget for supplementals, new legislation and potential
operating amendments.
The K-12 component (Slide 16) of approximately $1 billion
represents the proposed increase to the BSA and the amount
proposed by the Governor for FY09. The Governor has
requested that student transportation costs be reconsidered.
Ms. Rehfeld addressed the formula programs in the $656
million (Slide 17), pointing to increases to the
Medicaid/Proshare program, the Department of Health and
Social Services (DHSS), the National Guard benefits and the
Alaska Military Youth Academy.
Slide 18 outlined the direct deposit into the Public
Employees Retirement System / Teachers Retirement System
(PERS/TRS) programs. A deposit of $408.8 million in FY09
includes $246 million to PERS, retaining an employer rate of
22%; $162.4 million to TRS, retaining the 12.56% rate. Ms.
Rehfeld delineated what would need to happen for this
funding amount to be used in FY09.
AT EASE: 2:16:17 PM
RECONVENE: 2:23:01 PM
Representative Hawker made a clarification regarding the
Joint Task Force on Education, which recommended that the
transportation numbers be recalculated this year. He
appreciated the place holder to the DHSS budget for review
of provider rates and services. He hoped that process, which
will take a couple of years, will reinforce the foundations
of sustainable government.
2:25:22 PM
Senator Elton referenced various slides and asked if agency-
specific increases had been included in the overall 4%
increase in the general fund. Ms. Rehfeld replied that they
had been included.
2:26:40 PM
Senator Hoffman referenced the Governor's State of the
Budget presentation on January 15, 2008, particularly
programs and expansions she had highlighted. Ms. Rehfeld
stated that she had not yet reviewed Legislative Finance's
overview of the budget in detail.
Senator Hoffman addressed the "bottom line" increases in the
Governor's budget as compared to that of the Legislative
Finance Division. He asked how the differences could be
reconciled. Ms. Rehfeld responded that generally the two
divisions work closely in preparing the proposals. She
could not speak to those differences at this time. Senator
Hoffman stated that the numbers should be reconciled before
the legislative process can begin. He stated concerns about
the obligation to the general fund.
2:30:04 PM
Representative Gara, referencing Slide 12, pointed out the
authorization to spend 4.5% and asked if state spending
would actually be increased by 8%. He stated that "other
funds" are largely state funds. Ms. Rehfeld agreed.
Representative Gara commented on rates that have been frozen
which negatively impacted vulnerable populations,
particularly foster care reimbursement. Ms. Rehfeld
responded that all the rates were being determined.
Representative Hawker emphasized that the $24.4 million was
based on testimony today. The number is a placeholder and
will be developed in the on-going budget process. It is a
matter of timing and commitment to a long-term plan. He
reiterated his full endorsement of the process underway.
Representative Gara stressed the shortage of foster families
in Alaska and emphasized the foster family reimbursement
rate has not been raised in five years. The compensation
rate for personal care attendants has also not risen, making
it difficult to hire individuals for home health care for
elderly and disabled citizens.
2:34:05 PM
Co-Chair Meyer referenced Slide 12, noting the increased use
of other funds. He expressed concern about whether those
funds would be placed into the capital budget or operating
budget. Ms. Rehfeld responded that the page represents the
entire spending plan.
2:35:27 PM
Ms. Rehfeld proceeded to Slide 19, the Capital Budget of
$1.4 billion. The Federal Funds represent 58% or $792
million; the General Funds represent 27% or $372 million and
other funds total $206 million or 15%. She wanted to make
clear that this is an unduplicated number. Slide 20
highlights the different funding sources of the general fund
of $372.3 million. The most significant difference from 2008
is the Governor's proposal of a 50% increase in revenue
sharing. The Governor believes communities should be able to
use this for their own priorities. Ms. Rehfeld highlighted
DOT/PF federal highway match, the water and wastewater
program, a major renovation of the McLaughlin Youth Center,
and renovation of the Palmer Office Building.
Ms. Rehfeld used Slide 21 to highlight areas of other funds,
particularly use of the Alaska Student Loan Corporation's
third and final return of capital, estimated to be about $60
million in bond proceeds that can be used for specific
capital projects. A high priority for these funds is
maintenance and upgrade of existing buildings.
2:40:09 PM
Ms. Rehfeld continued with Slides 22 and 23, highlighting
the Alaska Capital Income Fund which is expected to have an
available balance of $277 million. The Administration has
identified some projects to be funded with this money,
including about $100 million for school construction and
major maintenance projects. It also includes about $40
million for the University of Alaska deferred maintenance
list and $10 million to match energy projects with Denali
Commission and through the Alaska Energy Authority.
Ms. Rehfeld referenced Slide 24, federal funds that come
into Alaska. The Department of Transportation and Public
Facilities is still the largest recipients of federal funds
for roads and aviation, at $515.6 million. Turning to Slide
25, she said Administration is proposing legislation
requesting authorization to go to the voters for General
Obligation (GO) Bonds. The first GO bond is for $140 million
for transportation, including $120 for Department of
Transportation projects, $10 million for the Port of
Anchorage, and $8.9 million to the Department of Natural
Resources for an access road to South Denali State Park. The
other GO Bond for $100 million is for the State Crime Lab.
There has been discussion about GO Bonds. The current cost
to borrow is low which helps keep spending down while
utilizing bonds for infrastructure projects the State
couldn't do otherwise. Ms. Rehfeld expects further
discussion on GO bonds, as they require voter approval.
2:44:07 PM
Ms. Rehfeld then discussed debt retirement fund caps and
other funding sources talked about earlier. The Alaska
Housing Finance Corporation (AHFC) dividend, for example, is
$68.5 million. The Administration proposes spending about
$48 million of that in the capital budget; $11.8 million
will go to the Debt Retirement Fund Capitalization. In
addition, the Administration proposes the Americans with
Disabilities Act (ADA) dividend, which is $23 million, go
into the Debt Retirement Fund Capitalization. Finally, the
Post Secondary Education Dividend at $4.1 million would be
used in the operating budget.
2:45:48 PM
Co-Chair Meyer stated concern over using capital budget
monies as the State has a surplus of general funds. He liked
the idea of bonding, but was concerned about the items
proposed for bonding, specifically the Port of Anchorage
project. He viewed this as basic infrastructure that should
not be dependent on advocacy. Ms. Rehfeld agreed more
discussion would be necessary and that the Governor was
aware of the issue.
2:50:08 PM
Co-Chair Meyer expressed concern over the previous year's
vetoes, which affected the capital budget. He viewed the
capital budget as a means of creating private sector jobs.
Ms. Rehfeld agreed the Administration would like to avoid
vetoes this year. She proposed continuing communication and
pointed out that the Governor has been clear since the
vetoes about her priorities and responsibilities to the
State. After the vetoes were announced, the public was
largely in support of the vetoes but tended not to like
their particular project being vetoed.
Representative Hawker agreed with Representative Meyer's
concerns about having a dialogue. His district lost $6
million worth of critical, life-safety improvements because
of the vetoes.
Representative Gara asked why he did not see in the increase
in state funding the $408 million to pay down the PERS/TRS
debt. Ms. Rehfeld answered that the general fund does
include that money. Representative Gara continued the line
of questioning.
2:57:06 PM
Ms. Rehfeld said the overview presented is just a snapshot
that cannot explain all the changes.
Representative Gara commiserated with other legislators who
had not gotten their projects funded the previous year and
said the problem was not only a lack of communication with
the Governor but across party lines.
Representative Thomas said that his district also lost a
total of $11.2 million for water, sewer and safety projects
the previous year. He wanted to see more emphasis on
communities other than Anchorage and Mat-Su.
3:03:36 PM
Senator Hoffman talked about transparency in budgeting which
could help citizens better understand how the budget works.
He pointed out that saving and then utilizing savings as
spending distorts how much is being spent.
3:06:05 PM
Senator Thomas agreed with Senator Hoffman's concerns. He
asked about the deferred maintenance total and whether there
was a plan to approach that. Ms. Rehfeld answered that the
deferred maintenance list totals about $1.2 billion in
requests. The budget allocates based on square footage and
intends to provide this maintenance on an annual, ongoing
basis, which will be challenging because of all the
pressures on the budget.
Senator Thomas wondered if the new energy coordinator would
be able to coordinate the activities of the various agencies
that deal with energy. Ms. Rehfeld agreed with the necessity
of a coordinator.
3:08:58 PM
Representative Joule, in reference to the capital budget,
described erosion issues in his district and wondered if the
budget process takes into account these communities. Ms.
Rehfeld replied that the Administration has been dealing
with climate change and specifically erosion. Senator
Stevens came to Alaska to meet regarding the role of various
agencies in the efforts to address these challenges. She
described coordination of agencies and resources as the
current challenge.
3:11:56 PM
Vice-Chair Stoltze referred to the erosion issue as well and
expressed frustrations about the time lapse in response. Ms.
Rehfeld said the subcabinet group has been working on those
issues.
3:13:26 PM
Co-Chair Meyer asked for clarification regarding the
Governor's position on federal earmarks. Ms. Rehfeld
suggested that the State has to be more of a partner with
the federal government, offering support in the form of a
match, which will further requests for earmarks.
3:15:18 PM
Senator Elton reiterated previously voiced concerns about
deferred maintenance. He also wondered how the Governor's
office sets priorities. He suggested that if the State is
setting aside funds for important problems, perhaps deferred
maintenance ought to be ahead of a transportation endowment
that builds new things requiring further maintenance.
3:16:38 PM
Representative Gara voiced concerns about public safety and
child protection. He referred to a recent case involving the
murder of a foster child. The State is short about 32 social
workers and yet the budget recommends only six. The State
Troopers are also having a problem attracting and retaining
workers because the salaries are not competitive.
Ms. Rehfeld addressed the issue of the State's ability to
attract and adequately pay these positions. She agreed that
social workers are needed and said that the Administration
is doing everything it can. The DOA has been working to
become a more attractive employer. Representative Gara re-
stated his frustration and urged action. Ms. Rehfeld
believed there would be legislation addressing the issues of
salary and compensation.
3:21:51 PM
Co-Chair Chenault asked about operating costs that had been
put into the capital budget the previous year. He requested
a charting of the funding differences between the two
budgets. He hoped the budget of the Legislative Finance and
the Governor's budget could be reconciled.
Co-Chair Chenault referenced the proposed supplemental
budget funding. Ms. Rehfeld pointed out that the
th
supplemental bill was due to the Legislature on January 28.
The placeholder is $108 million for supplementals not
including the tax credit which amounts to an additional $125
million. She hoped that the numbers submitted would be
real.
Co-Chair Chenault reiterated the need for transparency
regarding where dollars are taken from and where they will
actually be spent. He hoped that the process will move
forward quickly.
3:26:50 PM
ADJOURNMENT
The meeting was adjourned at 3:27 PM
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