Legislature(2011 - 2012)HOUSE FINANCE 519
03/08/2011 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB108 || HB109 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 108 | TELECONFERENCED | |
| += | HB 109 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 8, 2011
2:13 p.m.
2:13:17 PM
CALL TO ORDER
Co-Chair Stoltze called the House Finance Committee meeting
to order at 2:13 p.m.
MEMBERS PRESENT
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Co-Chair
Representative Anna Fairclough, Vice-Chair
Representative Mia Costello
Representative Mike Doogan
Representative Bryce Edgmon
Representative Les Gara
Representative David Guttenberg
Representative Reggie Joule
Representative Mark Neuman
Representative Tammie Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Pete Ecklund, Staff, Representative Bill Thomas; Joan
Brown, Staff, Representative Bill Thomas.
SUMMARY
HB 108 APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 108(FIN) was REPORTED out of committee with
a "do pass" recommendation.
HB 109 APPROP: MENTAL HEALTH BUDGET
CSHB 109(FIN) was REPORTED out of committee with
a "do pass" recommendation.
HOUSE BILL NO. 108
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; and providing for
an effective date."
HOUSE BILL NO. 109
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
2:13:48 PM
Co-Chair Stoltze MOVED Amendment 1 (copy on file):
TO: CSHB 108(FIN)/CSHB 109(FIN)
OFFERED BY: Representative Bill Thomas
STRUCTURE
1. DEPARTMENT: Natural Resources
APPROPRIATION: Administration & Support Services
DELETE: It is the intent of the legislature
that the budget for the AGIA Coordinator's Office
be moved from the Department of Natural Resources
into the Office of the Governor to more properly
reflect the office's authorizing statute AS
43.90.250.
MOVE: Gas Pipeline Coordinator's Office
allocation, including all funding and positions,
to the Office of the Governor under the Executive
Operations appropriation
EXPLANATION: This amendment transfers the Gas
Pipeline Coordinator's Office (with associated
funding and positions) from DNR to the Office of
the Governor to align the office with AS
43.90.250.
2. DEPARTMENT: Natural Resources
APPROPRIATION: Parks & Outdoor Recreation
ALLOCATION: Parks Management
DELETE: $24,500 UGF (1004)
DELETE: The amount allocated for Parks
Management includes the unexpended and
unobligated balance on June 30, 2011, of the
receipts collected under AS 41.21.026.
ALLOCATION: Parks Management & Access
ADD: $24,500 UGF (1004)
ADD: The amount allocated for Parks
Management & Access includes the unexpended and
unobligated balance on June 30, 2011, of the
receipts collected under AS 41.21.026.
EXPLANATION: The fuel base increment for Parks &
Outdoor Recreation was inadvertently added to an
allocation in the Governor's budget structure.
The increment should instead coincide with the
House budget structure. This amendment moves the
funding from the Parks Management allocation to
the proper Parks Management & Access allocation
and revises the carry forward language to conform
to the structure change.
3. Move:
DEPARTMENT: DCCED
APPROPRIATION: Alaska Aerospace Corporation
ALLOCATION: Alaska Aerospace Corporation
$ 3,361,800 Fed Rcpts (1002)
$ 1,152,400 CIP Rcpts (1061)
$ 131,100 AADC Fund (1101)
22 Permanent, Full-time Positions
ALLOCATION: Alaska Aerospace Corporation
Facilities Maintenance
$ 23,252,000 Fed Rcpts (1002)
$ 745,400 CIP Rcpts (1061)
$ 391,800 AADC Fund (1101)
28 Permanent, Full-time Positions
To
DEPARTMENT: Military and Veterans Affairs
(same appropriations and allocations)
EXPLANATION: This amendment moves all Alaska
Aerospace Corporation funding and positions from
the Department of Commerce, Community and
Economic Development to the Department of
Military and Veterans Affairs in accordance with
Executive Order 115.
WORDAGE
4. DEPARTMENT: Environmental Conservation
APPROPRIATION: Environmental Health
ALLOCATION: Air Quality
DELETE: The amount allocated for Air Quality
includes the unexpended and unobligated balance
on June, 30, 2011, of the Department of
Environmental Conservation, Division of Air
Quality receipt supported services from fees
collected under AS 46.14.250 and AS 46.14.250.
EXPLANATION: This wordage was inadvertently not
deleted when replacement wordage was added in the
subcommittee.
5. DEPARTMENT: Fish and Game
APPROPRIATION: Commercial Fisheries
DELETE: The amount appropriated for Commercial
Fisheries includes the unexpended and unobligated
balance on June 30, 2011, of the Department of
Fish and Game receipts from commercial fisheries
test fishing operations receipts under AS
16.05.050(a)(14).
The amount appropriated for Commercial Fisheries
includes the unexpended and unobligated balance
on June 30, 2011 of the Department of Fish and
Game's program receipts from commercial crew
member licenses.
ADD: The amount appropriated for Commercial
Fisheries includes the unexpended and unobligated
balance on June 30, 2011, of the Department of
Fish and Game receipts from commercial fisheries
test fishing operations receipts under AS
16.05.050(a)(14), and from commercial crew member
licenses.
EXPLANATION: This wordage streamlines the carry
forward language.
6. DEPARTMENT: Fish and Game
APPROPRIATION: Wildlife Conservation
ALLOCATION: Wildlife Conservation
ADD: It is the intent of the legislature that the
Department of Fish and Game may not import wood
bison into the state or relocate wood bison to a
new area of the state without prior legislative
approval.
TECHNICAL CORRECTIONS
7. CHILDRENS TRUST EARNINGS
DEPARTMENT: Revenue
APPROPRIATION: Taxation and Treasury
ALLOCATION: Treasury Division
DELETE: $15,200 Children's Trust Earnings
(1098)
ADD: $15,200 Children's Trust Principal (1099)
EXPLANATION: Because statutes changed the Alaska
Children's Trust to an endowment model, the
Children's Trust Earnings fund code is no longer
available. This appropriation replaces the
funding used to manage the Alaska Children's
Trust with an appropriation from the principal of
the Alaska Children's Trust.
8. VEHICLE RENTAL TAXES
DEPARTMENT: DOT/PF
APPROPRIATION: Highways, Aviation, and Facilities
ALLOCATION: Central Region Highways and
Aviation
ADD: $367,300 UGF (1004)
DELETE: $367,300 Vehicle Rental Taxes (1200)
EXPLANATION: This amendment replaces over-
appropriated Vehicle Rental Tax receipts with
General Funds.
9. STEP FUNDS
DEPARTMENT: DLWD
APPROPRIATION: Business Partnerships
ALLOCATION: Business Services
ADD: $ 150,000 STEP FUNDS (1054)
DELETE: $ 150,000 UGF (1004)
DEPARTMENT: Corrections
APPROPRIATION: Offender Habilitation
ALLOCATION: Vocational Education Programs
ADD: $ 150,000 UGF (1004)
DELETE: $ 150,000 STEP FUNDS (1054)
EXPLANATION: This amendment consolidates all STEP
funding in the Department of Labor.
10. PFD CRIMINAL FUNDS
DEPARTMENT: Multiple
APPROPRIATION: Multiple
ALLOCATION: Multiple
ADD/DELETE: PFD Appropriations in lieu of
Dividends to Criminals (1171) and UGF (1004)
funding as indicated in the "PFD Crim" and "GF"
columns below.
EXPLANATION: This amendment does three things:
• It aligns the amount appropriated in the
budget with the amount of funding that is
available. (PFD Crim Funds were overspent by
$1,015.1 in the House CS).
• It replaces (with UGF) $500.0 of the
$1,001.9 PFD Crim funds the Governor requested in
the DV/SA allocation, for a net reduction of
$501.9 in that allocation.
• It consolidates PFD Crim funding in
Corrections and the Violent Crimes Compensation
Board. Consolidating the PFD Crim funds
simplifies the budget process by reducing the
annual swap of GF and PFD Crim funding as PFDs
fluctuate.
Substantive
11. DEPARTMENT: Administration
APPROPRIATION: Violent Crimes Compensation Board
ALLOCATION: Violent Crimes Compensation Board
ADD: $1,800,000 Crime Victim Compensation
Fund (1220)
DELETE: $7,300 UGF (1004)
DELETE: $1,648,600 PFD Criminal (1171)
ADD: Language (following section 25(c)-fund
capitalization) using PFD Criminal Funds (1171)
as follows:
The sum of $1,648,600 is appropriated from the
permanent fund dividend fund (AS 43.23.045) from
the portion of that fund that would have been
paid to convicted or incarcerated individuals if
those individuals had not been ineligible for
dividends under AS 43.23.028(a)(4) to the Crime
Victim Compensation Fund (AS 18.67.162) for
purposes of the fund.
EXPLANATION: PFD criminal funds are now
appropriated directly to the VCCB for operations,
including the payment of awards to victims of
crimes. This amendment:
1. Appropriates $1.6 million of budgeted PFD
Criminal funds to the Crime Victim Compensation
Fund, so unspent funds will not lapse at year-
end.
2. Appropriates $1.8 million from the Crime
Victim Compensation Fund to the VCCB to replace
PFD Criminal Funds and $7,300 UGF, as well as
making $144,100 of the $459,200 balance of the
Crime Victim Compensation Fund available for
awards.
Additional funding will be on the grants line
item. Although the Crime Victim Compensation Fund
was established specifically to be used by the
VCCB, the balance of the fund is not currently
available to the VCCB. This amendment provides
approximately $90,000 less for awards than is
available in FY11.
12. DEPARTMENT: Administration
APPROPRIATION: Public Communications Services
ALLOCATION: Public Broadcasting, Radio
ADD: $200,000 UGF (1004)
EXPLANATION: To address Public Broadcasting
engineering needs in underserved communities.
13. DEPARTMENT: DCCED
APPROPRIATION: Corporation, Businesses, and
Professional Licensing
ALLOCATION: Corporation, Businesses, and
Professional Licensing
ADD: $65,000 RSS (1156) as an IncOTI, and one
Temp PCN
EXPLANATION: The funding would be used to hire an
additional investigator for the Big Game
Commercial Services Board to ensure compliance
with transporter license requirements. Over the
last several years there has been increasing user
conflict in game units and the Big Game
Commercial Services Board needs an additional
investigator to begin to work on the growing
problem. The investigator would focus primarily
on transporter issues in areas of the state
having the greatest concerns and would compile a
report to the Legislature to be presented in
2012. Last year an investigator was hired but
didn't get started until late in the season so
the data is not as complete as it could be.
Enforcement measures will include inspecting
transporter licenses and conducting inspections
at places of business and in the field. This
increment is a one-time item.
14. DEPARTMENT: DCCED
UNDER SUBSECTION 12(f) ADD THE FOLLOWING NEW
SUBSECTION:
Further, it is the intent of the legislature that
the Alaska Seafood Marketing Institute evaluate
and consider in-state advertising firms to
provide advertising services before using an out-
of-state advertising firm.
15. DEPARTMENT: DEED
APPROPRIATION: Education Support Services
ALLOCATION: Unallocated Reduction
ADD: $150,000 UGF (1004)
EXPLANATION: This amendment restores an
unallocated reduction.
16. DEPARTMENT: DEED
APPROPRIATION: Education Support Services
ALLOCATION: Administrative Services
DELETE: $85,000 UGF (1004)
EXPLANATION: This amendment reduces funding in
this allocation.
17. DEPARTMENT: DEED
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Student and School Achievement
ADD: $200,000 Interagency Receipts (1007)
EXPLANATION: A position in the Department of
Education and Early Development was funded in the
FY11 budget via RSA from a $3 million UGF
appropriation to the Governor's Office for
funding for Domestic Violence and Sexual Assault
Prevention Programs in various departments. The
health and safety coordinator position was
created through this funding and the
subcommittee's position is that the funding
should remain as interagency receipts from the
Governor's budget.
18. DEPARTMENT: DEED
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Unallocated Reduction
ADD: $2,000,000 UGF (1004)
ALLOCATION: Statewide Mentoring Program
DELETE: $2,000,000 UGF (1004)
EXPLANATION: This amendment switches the
reduction of $2 million in general funds from an
Unallocated Reduction in the Teaching and
Learning Support appropriation to the Statewide
Mentoring Program within the Teaching and
Learning Support appropriation. Although this
reduction would allow for fewer mentors,
assistance could still be offered in the most
needed areas of the state. The department could
still offer the service to districts for a fee to
offset costs.
Currently, the Department of Education and Early
Development contracts with the University of
Alaska to operate this program via RSA. The
University charges indirect costs of 12% to
operate this program which results in
approximately $420,000 in interagency services.
In reviewing the Statewide Mentoring Program in
the finance subcommittee, no specific analytical
data was given to substantiate student
achievement growth; teacher retention rates were
also unverified.
The mentoring program was established to increase
the retention of teachers in hard-to-fill
positions. With this reduction, this program can
still encompass rural schools and/or schools with
a 50% teacher turn-over for first and second year
teachers, new to Alaska. A full-time mentor could
be placed in some of the most remote areas:
Bering Strait, Kodiak, Lake & Peninsula Borough,
Lower Kuskokwim District, Lower Yukon, Northwest
Arctic, Southwest Region and Yupiit. The mentor,
if allowed to stay in one particular area, could
more easily serve as a daily advisor and
understand the hardships for that respective
location.
19. DEPARTMENT: DEED
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Early Learning Coordination
ADD: $300,000 UGF (1004)
EXPLANATION: This increment is for use with
Intervention districts (Lower Yukon and Yupiit
School Districts).
20. DEPARTMENT: DEED
APPROPRIATION: Teaching and Learning Support
ALLOCATION: Student and School Achievement
ADD: $112,000 MHTAAR (1092)
DEPARTMENT: DNR
APPROPRIATION: Administration and Support
Services
ALLOCATION: Mental Health Trust Land Office
DELETE: $112,000 MHTAAR (1092) and one PFT
EXPLANATION: This amendment maintains the FY11
source and level of authorization for a grant to
the Alaska Autism Resource Center. It also
reduces an increment to the Mental Health Trust
Land Office in DNR by $112.0.
21. DEPARTMENT: DEED
APPROPRIATION: Commissions and Boards
ALLOCATION: Unallocated Reduction
ADD: $50,000 UGF (1004)
EXPLANATION: This amendment restores an
unallocated reduction.
22. DEPARTMENT: DEED
APPROPRIATION: Alaska Library and Museums
ALLOCATION: Unallocated Reduction
ADD: $50,000 UGF (1004)
EXPLANATION: This amendment restores an
unallocated reduction.
23. DEPARTMENT: Environmental Conservation
APPROPRIATION: Environmental Health
ALLOCATION: Air Quality
ADD: $10,000 Federal Receipts (1002)
$10,000 General Fund Match (1003)
EXPLANATION: This request is for additional
funding to assist DEC in working with the
companies and federal agencies to address the
interface between gas pipeline construction and
air quality issues in Fairbanks.
24. DEPARTMENT: Fish and Game
APPROPRIATION: Wildlife Conservation
ALLOCATION: Wildlife Conservation
ADD: $200,000 UGF (1004)
EXPLANATION: To establish and fund Region IV
leadership positions.
25. DEPARTMENT: Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Commercial Fisheries Special
Projects
ADD: $200,000 UGF (1004)
EXPLANATION: This funding will support the
following projects:
• $30.0 to implement a small-scale
reconnaissance stock assessment survey for
Dungeness crab in the Yakutat Area.
• $75.0 to expand the pilot stock assessment
surveys to fully cover the major pot shrimp
fishing grounds in Southeast Alaska.
• $95.0 for an annual Central Region Large-
mesh Trawl Survey to assess abundance of crab and
groundfish species.
26. DEPARTMENT: Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Southeast Region Fisheries
Management
ADD: $75,000 UGF (1004)
EXPLANATION: A one-time increment approved for
FY11 funded a collaborative effort between the
department, industry and fishermen to research
the biomass of the red king crab fishery in
southeast Alaska. The red king crab fishery has
only occurred in three of the past ten years and
better understanding of the biomass could lead to
more accurate openings of the fishery and more
revenue to the state.
27. DEPARTMENT: Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Westward Region Fisheries
Management
ADD: $160,000 UGF (1004)
EXPLANATION: This reestablishes optimal timing of
weir operations at Ayakulik, Dog Salmon/Frazer
Lake, Karluk, and Upper Station systems by
reinstituting historic installation, operation,
and removal dates of weirs and funding the Frazer
fish pass to allow better estimates of
escapements. The goal would be to improve
management precision to maximize harvest
opportunity and improve forecasts of future
production.
28. DEPARTMENT: Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Westward Region Fisheries
Management
ADD: $275,000 UGF (1004)
EXPLANATION: Reestablish sockeye salmon smolt
enumeration and sampling programs at key sockeye
systems, including the Karluk and Frazer Lake
systems, to understand sockeye salmon
productivity and evaluate the production
capabilities of the freshwater environment; and
to help ADF&G to improve forecasting accuracy,
evaluate existing biological escapement goals,
develop preseason harvest strategies and assess
overall salmon production.
29. DEPARTMENT: Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Westward Region Fisheries
Management
ADD: $32,500 UGF (1004) (OTI)
EXPLANATION: Year-one equipment expenses for
reestablishment sockeye salmon smolt enumeration
and sampling programs at key sockeye systems,
including the Karluk and Frazer Lake systems, to
understand sockeye salmon productivity and
evaluate the production capabilities of the
freshwater environment; and to help ADF&G to
improve forecasting accuracy, evaluate existing
biological escapement goals, develop preseason
harvest strategies and assess overall salmon
production.
30. DEPARTMENT: Office of the Governor
APPROPRIATION: Executive Operations
ALLOCATION: Domestic Violence & Sexual Assault
CONVERT FUNDING FROM IncOTI to INC: Convert the
entire appropriation (currently $3.0 million)
from an IncOTI to a base increment.
31. DEPARTMENT: Health and Social Services
APPROPRIATION: Office of Children's Services
ALLOCATION: Family Preservation
ADD: $225,000 GF/MH (1037)
EXPLANATION: This funding will provide clinical
substance abuse treatment and recovery services
for parents who have a substantiated report of
harm, where substance abuse is a factor of
continued risk of harm for the child(ren). The
availability of substance abuse treatment will
prevent the removal of children from their home
in some instances, and will reduce the length of
stay in out-of-home placement in other cases.
32. DEPARTMENT: Law
APPROPRIATION: Criminal Division
ALLOCATION: Criminal Appeals/Special
Litigation
ADD: $500,000 UGF (1004)
EXPLANATION: In FY2010 and FY2011 three federal
grants that employ approximately 17 prosecutors
and staff were slated to expire and the FY2011
Governor's budget for the Department requested
$2,300.0 in General Funds to continue these
efforts. The grants funded attorney, paralegal
and law office assistant positions located in
Bethel, Barrow, Nome, Kenai, Palmer, Anchorage
and the Office of Special Prosecutions and
Appeals to aid in the prosecution of domestic
violence as well as adult and child sexual
assault cases. The Department was able to extend
two of the grants, reducing the FY2011 request by
$500.0 with the understanding that maintaining
the program at its current levels will require
the funding to be added in the FY2012 budget.
The two grants expired and as of January 1st all
of these positions are now funded by state
general funds. This amendment reinstates the
amount requested in the Governor's budget.
33. DEPARTMENT: Military & Veterans Affairs
APPROPRIATION: Military & Veterans Affairs
ALLOCATION: Veterans Services
ADD: $108,500 UGF (1004)
EXPLANATION: This funding will provide for two
new VSO contracts located at the University of
Alaska-Southeast and -Fairbanks campuses. There
is no overhead cost due to the partnership
between DMVA and the University of Alaska.
This is needed to enhance Veterans Services
capability to best serve the needs of 77,000
veterans in Alaska. Today the highest numbers of
veterans are returning from war; the increase in
population means a greater number of veterans
need access to the Veterans Services Office.
These positions will help Veterans Services
manage the current, and expected increase in
demand, services pertaining to the post 9-11 GI
Bill.
34. DEPARTMENT: DNR
APPROPRIATION: Agriculture
ALLOCATION: North Latitude Plant Material
Center
ADD: $100,000 UGF (1004)
EXPLANATION: This amendment allows continuation
of the Certified Seed Potato Program.
35. DEPARTMENT: Public Safety
APPROPRIATION: Council on Domestic Violence and
Sexual Assault
ALLOCATION: Council on Domestic Violence and
Sexual Assault
ADD: $181,500 UGF (1004)
EXPLANATION: This amendment would add $181,500 of
general funds for staff travel and emergency
travel for victims and their children to a
regional hub facility. This was a governor's
request for funding.
36. DEPARTMENT: Public Safety
APPROPRIATION: Council on Domestic Violence and
Sexual Assault
ALLOCATION: Council on Domestic Violence and
Sexual Assault
ADD: $400,000 Interagency Receipts (1007) as an
IncOTI
EXPLANATION: These interagency receipts are a
component of the Governor's DVSA Prevention
initiative. The Council on Domestic Violence and
Sexual Assault will contract with the University
of Alaska - Anchorage Justice Center to continue
its work to conduct a statewide victimization
survey in order to have a definitive measure of
the incidence and prevalence of domestic violence
and sexual assault in our state.
This is year two of this project, funded by a
reimbursable services agreement from the Office
of the Governor. Without these funds, the Council
will be limited in their ability to provide
quality baseline data to measure the
effectiveness of the DVSA Prevention initiative.
37. DEPARTMENT: Public Safety
APPROPRIATION: Council on Domestic Violence and
Sexual Assault
ALLOCATION: Council on Domestic Violence and
Sexual Assault
ADD: $497,400 UGF (1004)
DELETE: $497,400 Federal Receipts (1002)
EXPLANATION: This request replaces expiring
federal Grants to Encourage Arrest earmark
funding with general funds. The fund source
change will retain five full time legal advocates
in high use areas - Anchorage (AWAIC), Kenai,
Bethel, Fairbanks and Palmer; four part time
legal advocates in medium use areas - Anchorage
(STAR), Juneau, Ketchikan and Dillingham; and one
full time legal advocate to provide statewide
telephonic support to those regions without full
or part time legal advocates. Advocates are
employees of several of the nonprofit agencies
supported by Council grant funding.
Legal advocates assist both domestic violence and
sexual assault victims with filing protective
order petitions, violent crimes compensation
applications, safety planning and navigating the
civil and criminal courts. They accompany victims
to meetings with prosecutors and law enforcement
and explain victims' legal rights and options.
Assistance with petitions for domestic violence,
sexual assault or stalking protective orders is
one of the most sought services when victims
contact victim service providers. The programs
listed in the preceding paragraph assisted over
1,700 victims with the filing of protective
orders last year. Reducing the availability of
legal advocates practically reduces the number of
victims who will successfully navigate the
system.
38. DEPARTMENT: Revenue
REVISE SUBSECTION 9(e) AS FOLLOWS:
(e) The amount necessary to pay the custody,
investment management, and third-party fiduciary
fees of the Alaska permanent fund (art. IX, sec.
15, Constitution of the State of Alaska), not to
exceed [$90,300,000] $95,300,000, is appropriated
for that purpose from the receipts of the Alaska
Permanent Fund Corporation to the Alaska
Permanent Fund Corporation for the fiscal year
ending June 30, 2012.
EXPLANATION: This amendment aligns the
appropriation to cover contractual manager fee
obligations with the anticipated need.
39. DEPARTMENT: Revenue
APPROPRIATION: Taxation and Treasury
ALLOCATION: Tax Division
ADD: $150,000 UGF (1004)
EXPLANATION: The subcommittee removed the Chief
Economist position (04-3255) and $150.0 UGF;
$140.0 of personal services, $5.0 of travel, and
$5.0 of commodities. The department was unable to
fill this position for nearly 3 years. The
department has had a difficult time filling the
position due to the collective bargaining salary
restrictions the position is currently classified
under. Adding the funding back in under
contractual services will give the department the
flexibility and ability to hire a contractor to
complete the work on a long-term, continuous
basis.
40. DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Anchorage Campus
ADD: $100,000 UGF (1004), $15,000 UA Receipts
(1048), Total: $115,000 as an IncOTI
EXPLANATION: The purpose of the amendment is for
the University of Alaska Anchorage Honors Program
to add one staff member (for student support) and
faculty labor costs for honors courses. The
University Honors College supports the UAA
disciplinary schools and colleges. The Honors
College recruits exceptional students, providing
academic advising and student support, partnering
to bridge undergraduate research experiences with
post-graduate opportunities, and partnering to
support student opportunities in the community.
41. DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Fairbanks Campus
ADD: $150,000 UGF (1004); $40,000 Univ Rcpt
(1048), Total: $190,000
EXPLANATION: This increment was requested in the
governor's budget and will fund the UAF
Individual Technology Based Math and Summer
Bridge Programs. The programs cannot be continued
without continuing funding. The purpose of the
program is to prepare students for college-level
math courses.
42. DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Fairbanks Campus
ADD: $75,000 UGF (1004); $45,000 Univ Rcpt
(1048), Total: $120,000
EXPLANATION: This increment was requested in the
governor's budget and will fund the UAF Alaska
Summer Research Academy - Engineering Components.
The purpose of the program is to provide an
opportunity for students in grades 8-12 to live
on the UAF campus and work with university
faculty, staff, and industry professionals. It is
a two-week program. In FY11, one time funding was
provided by the Legislature. This additional
funding will provide continuation of the program.
43. DEPARTMENT: Alaska Court System
APPROPRIATION: Therapeutic Courts
ALLOCATION: Therapeutic Courts
ADD: $250,000 GF/MH (1037)
EXPLANATION: This increment, requested in the
governor's budget, will provide funding for
treatment services for therapeutic court
participants. Therapeutic courts are an extremely
cost-effective way to divert offenders from
jails, while reducing recidivism rates.
Vice-chair Fairclough OBJECTED for discussion.
PETE ECKLUND, STAFF, REPRESENTATIVE BILL THOMAS, stated
that Amendment 1 was technically correct, with a change
needed related to Item 34 on page 14.
Co-Chair Stoltze MOVED Conceptual Amendment 1A to Amendment
1: Item 34; change from $100,000 to $120,000 unrestricted
general funds.
There being no objection, it was so ordered. Conceptual
Amendment 1A to Amendment 1 was ADOPTED.
2:15:40 PM
AT EASE
2:16:02 PM
RECONVENED
Vice-chair Fairclough WITHDREW her OBJECTION to Amendment
1. There being no further objection, it was so ordered.
Amendment 1 as amended was adopted.
Representative Gara referred to item 3 in Amendment 1, and
asked whether aerospace positions would be added or moved.
JOAN BROWN, STAFF, REPRESENTATIVE BILL THOMAS, replied that
two aerospace components would be moved from the Department
of Commerce, Community and Economic Development (DCCED) to
the Department of Military and Veterans Affairs. One
component had 22 positions and the other had 28.
Representative Gara verified that the total number of
positions would be the same as the current number.
2:18:35 PM
Representative Costello MOVED Amendment 2 (27-GH1737\E.4,
Bailey, 3/4/11):
Page 59, line 22, through page 60, line 2:
Delete all material and insert:
"(g) The sum of $2,700,000 is appropriated from
the general fund to the Department of Commerce,
Community, and Economic Development for a contract
under AS 44.33.125(a) with a qualified trade
organization for destination tourism marketing for the
fiscal year ending June 30, 2012.
(h) The sum of $6,300,000 is appropriated from
the general fund to the Department of Commerce,
Community, and Economic Development for a supplemental
marketing contract under AS 43.33.125(d) for the
fiscal year ending June 30, 2012."
Reletter the following subsections accordingly.
Page 60, line 10:
Delete "(i) of this section"
Insert "(j) of this section"
Page 79, line 27:
Delete "sec. 12(k)"
Insert "sec. 12(l)"
Page 80, line 2:
Delete "12(m)"
Insert "12(n)"
Co-Chair Thomas OBJECTED.
Representative Costello explained that Amendment 2 would
amend the CS in terms of the tourism marketing for the
qualified trade association [Alaska Travel Industry
Association (ATIA)] by keeping the $2.7 million match under
AS 44.33.125(a), the portion of the law requiring returning
to the 50/50 match on July 1. Amendment 2 would also add
$6.3 million under AS 44.33.125(d), which stipulates that
additional funding appropriated for tourism marketing in
the state was not subject to the match requirement. She
referred to oversight provided by the commissioner of
DCCED; the commissioner "may" impose a match requirement to
the amount.
Representative Costello reminded the committee that the
legislature had changed the match requirement from 50/50 to
70/30 three years before, with the industry contributing 30
percent. The industry had three years to come up with a
stable funding source, but had not succeeded in doing so.
The law then required returning to the 50/50 match. She
argued that the requirement would cause the industry to
triple their match requirement. The previous year, ATIA had
been able to raise $2.7 million, and had testified that
that was their ability to match. The state would
effectively be funding the industry's marketing at $5.4
million without Amendment 2.
Representative Costello maintained that the amendment would
keep the status quo in place for the operating budget; the
governor had included additional funding in the capital
budget, which would bring the total to $18 million, the
amount ATIA had the previous year. She pointed out that
visitors to Alaska were down 6 percent for the year. She
emphasized that the industry did not have exclusive rights
to the product. She asked, "Who owns Mt. McKinley?" She
felt the marketing dollars spent on a qualified trade
association would increase travel to Alaska. Once travelers
were in Alaska, small businesses paid for additional
marketing, comprising an in-kind contribution not taken
into account in the match requirement.
Representative Costello emphasized that nearly 25 percent
of the 202 people testifying during public testimony on the
budget were from the tourism industry. She listed the
locations from which testifiers had called: Nome, Juneau,
Anchorage, Palmer, Fairbanks, Unalaska, Sitka, Seward,
Valdez, Chitna, Glennallen, Ketchikan, Homer, Kodiak, and
other places. She wondered what the legislature would say
to the people about not supporting them.
Representative Costello stressed that the industry brought
$138 million in contributions to the state budget. She
listed amounts brought in through various sources:
· $46.4 million-Commercial passenger vehicle tax
· $6.3 million-Passenger gambling tax
· $4 million-Ocean Ranger Program
· $1 million-Commercial passenger vehicle environmental
compliance program
· $17.1 million-Non-resident fishing/trapping licenses
and tags
· $17.1 million-Alaska Marine Highway
· $19.4 million-Alaska Railroad
· $5.6 million-Vehicle rental tax
· $21.4 million-Corporate income tax
· $69.8 million-Municipal revenues
· $23.5 million-Bed-tax revenues ($15.6 million in
Southcentral, $5.6 million in the Interior, and $1.7
million in Southeast)
· $17.4 million-Dockage and moorage revenues
Representative Costello continued that recently a voter
initiative had levied $70 million in additional taxes on
the industry; after that, the cruise-ship industry no
longer contributed to the state's marketing effort. She
felt that to more than triple the industry's contribution
would cost small Alaskan businesses.
Representative Costello stated that for every $10.78 that
the state invested in the travel industry, it got $378
back. In 2008, for every dollar invested, the state coffers
increased by $15.42. The same dollar also brought $7.75 to
the various municipalities around the state. In tax
revenues alone, $23.18 was gained for every dollar. She
stressed that all the state had to do for the revenues was
contribute to the marketing campaign.
2:23:58 PM
Representative Costello asked why the state was hesitant to
invest. She wondered whether the reason was that ATIA did
not come to the table with a plan. She stressed that the
industry was the third largest in the state and employed
36,200 people. She acknowledged that ATIA had promised a
plan and had not presented one. However, she did not want
to penalize small business owners or to fund at last year's
level while hammering out a long-term solution in HB 160.
She thought that more than tripling the contribution on the
state's third-largest industry was imprudent.
Representative Gara pointed to a typographical error on
line 9 of Amendment 3; he noted that there was no statute
number AS 43.33.125 and thought the number should be AS
44.33.125.
Representative Gara recollected that the legislature had
adopted a 50/50 match. Representative Costello responded
that he was correct.
Representative Gara suggested that there could be a debate
about changing the statute, but he did want an
appropriation outside a statute that had been adopted.
Representative Costello responded that there were two
statutes under consideration. One was reverting back to the
50/50 match; however, AS 44.33.125(d) existed in statute
already and allowed for additional tourism marketing
funding that did not fall under the match requirements. She
emphasized that there was already the statutory ability to
address tourism marketing that was not subject to the
percentage either in the past or the future.
2:27:02 PM
Co-Chair Stoltze spoke as a co-sponsor of the amendment. He
stressed that the proposal was allowed under statute, since
there were two sections. He concurred that the industry had
had three years, but argued there had also been a recession
during the time period. In addition, the cruise-ship tax
had created a great deal of uncertainty. He compared the
situation with the botulism scare at an earlier time. He
opined that the increment was the most important thing that
could be done for tourism in the state and was about
supporting the economy in his region. He declared himself
on firm ground in his support of his region, which depended
heavily on the sport fisheries.
Co-Chair Stoltze maintained that while many people had
economic challenges in his region because of their
connections with the tourism industry, he thought the issue
affected the entire state. He wanted to continue to support
ATIA in spite of concerns about the leadership in the
organization.
Co-Chair Stoltze stated that he wanted the tourism industry
at the table in a meaningful way to address both the
problems and the solutions.
2:31:17 PM
Representative Wilson spoke against the amendment. She
noted that her vote on the amendment would not reflect her
position on tourism, which she agreed had brought a lot to
the state. She felt that the industry had been supported
for three years and had not met its commitments. She felt
it was wrong to reward an entity for doing nothing. She
disagreed that supporting tourism was the issue; the issue
for her was the industry not coming through on the three-
year agreement. She pointed out that there had been
continued attention to the issue. She questioned the
effects of lowering the head tax. She wanted to hold the
industry accountable, and at the same time she strongly
supported small businesses. She referred to HB 160, which
could allow for further discussion.
Representative Neuman stated his opposition to the
amendment. He noted that most of his district depended
heavily on tourism through small businesses, including
guided fishing and tours. He did not believe ATIA had come
through with what they had been charged with. He felt that
there were other mechanisms in place to address the issue,
including HB 160. He acknowledged the difficulty of his
decision to not support the amendment. He strongly
supported the tourism industry, but he wanted to follow the
established legislative process and to expect
accountability. He did not feel the amendment would be the
best for the state.
2:35:46 PM
Representative Neuman believed there were other ways to
deal with the issue, including through the capital budget
and HB 160. He stated that he would use those mechanisms to
support tourism and the people in his district making a
living from tourism.
Co-Chair Thomas commented that he was pro-tourism but
wanted to follow the law.
Representative Costello stated that there were two sections
in statute dealing with tourism funding; section (a) had
the match that would revert back to 50/50, and section (d)
allowed for additional tourism funding not subject to a
match.
Co-Chair Thomas MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Costello, Fairclough, Stoltze
OPPOSED: Doogan, Edgmon, Gara, Guttenberg, Joule, Neuman,
Wilson, Thomas
The MOTION FAILED (3/8). Amendment 2 was not adopted.
2:38:09 PM
AT EASE
2:42:28 PM
RECONVENED
Co-Chair Thomas MOVED Amendment 3 (27-GH1737\E.6, Bailey,
3/8/11):
Page 59, line 30, through page 60, line 2:
Delete:
(3) the amount appropriated under this
subsection shall be reduced by twice the amount of any
other state money appropriated to a qualified trade
association for tourism marketing activities for the
fiscal year ending June 30, 2012.
There being no OJECTION, Amendment 3 was ADOPTED.
Vice-chair Fairclough MOVED to give the Legislative Finance
Division and Legislative Legal Services the authority to
incorporate amendments made and to make any appropriate
conforming or technical changes to HB 108 and HB 109. There
being NO OBJECTION, it was so ordered.
2:43:24 PM
RECESS
6:20:10 PM
RECONVENED
Vice-chair Fairclough proposed committee substitute, work
draft CSHB 108(FIN) (27-GH1737\X, Bailey, 3/8/11) as a
working document before the committee.
Representative Gara questioned the incorporation of the
various items in Amendment 1. Mr. Ecklund responded that
all the approved amendments were incorporated into the CS.
There being no OBJECTION, it was so ordered.
Co-Chair Thomas commended the work done.
Representative Doogan commended the work done on the
budget. He recalled past budget processes, which had been
easier. He called attention to several appropriations
included in Amendment 1: Items number 32 ($500,000) and 37
(nearly $500,000), which reflected the legislature's use of
general funds to fill fiscal gaps created by changes in the
federal budget. He opined that the issue had to be
addressed in the near future as he believed federal funds
would continue to decline. He did not have a solution, but
warned that the issue would have to be addressed along the
way. He emphasized that agencies would have to be told they
could no longer afford items that had been funded in the
past.
6:25:26 PM
Representative Gara commended the work done during the
budget process. He thought there were more good things in
the budget than things he would criticize. Items he
appreciated in the budget included:
· Early education money
· $300,000 for Head Start
· $2 million unallocated cut to the Department of
Education and Early Development that would not come
out of early learning
· Funding left in for the Parents as Teachers program
and Best Beginnings
· University of Alaska funds for the Honors program, the
Math Bridge program, and engineering training
· Substance abuse funding, including for therapeutic
courts
· OCS (Office of Children's Services) money to keep
families together
Representative Gara expressed disappointment that the pre-K
pilot program had been cut.
Co-Chair Stoltze thought the budget process had been
collaborative. He pointed out that issues related to oil
production would have to be addressed in the near future.
He referred to legislation (HB 110) coming to the committee
related to developing oil in the state.
6:29:21 PM
Representative Neuman highlighted intent language on page
30 of the bill:
It is the intent of the legislature that significant
resources be deployed for enforcement efforts for the
highway safety corridors located on the Parks Highway
between Milepost 44.5 and Milepost 53 and on the Knik
Goose Bay Road between Milepost .6 and Milepost 17.2.
Representative Neuman informed the committee that there had
already been three deaths and several severe accidents that
put people in the hospital for months. He emphasized that
addressing the highway safety corridors was very important
to him and he appreciated the language being included in
the bill.
Representative Guttenberg referred to Finance Committee
budgeting history. He noted how "simple and
straightforward" the process had been in the late 1990s
when oil was $12 per barrel. There were then years when it
was harder to read the budget as funding got shifted back
and forth between years. He appreciated a return to a
budgeting process that was more transparent and accessible
to the public.
Vice-chair Fairclough MOVED to report CSHB 108(FIN) out of
committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CSHB 108(FIN) was REPORTED out of committee with a "do
pass" recommendation.
Vice-chair Fairclough proposed committee substitute, work
draft CSHB 109(FIN) (27-GH1738\I, Bailey, 3/8/11) as a
working document before the committee. There being no
OBJECTION, it was so ordered.
Vice-chair Fairclough MOVED to report CSHB 109(FIN) out of
committee with individual recommendations. There being NO
OBJECTION, it was so ordered.
CSHB 109(FIN) was REPORTED out of committee with a "do
pass" recommendation.
6:32:49 PM
Mr. Ecklund commended the work of Legislative Finance
Division and co-chair staff members.
ADJOURNMENT
6:34:02 PM
The meeting was adjourned at 6:34 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB108-HB109 Testimony Letters.pdf |
HFIN 3/8/2011 1:30:00 PM |
HB 108 HB 109 |
| HB108-HB109 Budget Amendments Action.pdf |
HFIN 3/8/2011 1:30:00 PM |
HB 108 HB 109 |
| HB 108 CS WORKDRAFT version X.pdf |
HFIN 3/8/2011 1:30:00 PM |
HB 108 |
| HB 109 CS WORKDRAFT version I.pdf |
HFIN 3/8/2011 1:30:00 PM |
HB 109 |