Legislature(2003 - 2004)

04/14/2004 04:46 PM Senate 283

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                              MINUTES                                                                                         
                LIMITED CONFERENCE COMMITTEE SB 283                                                                           
                          April 14, 2004                                                                                      
                              4:46 PM                                                                                         
                                                                                                                                
                                                                                                                                
TAPES                                                                                                                       
                                                                                                                                
CC-04 SB 283 # 1, Side A                                                                                                        
                                                                                                                              
CALL TO ORDER                                                                                                               
                                                                                                                                
Senator B. Stevens convened the meeting at approximately 4:46 PM.                                                               
                                                                                                                                
PRESENT                                                                                                                     
                                                                                                                                
Senator Ben Stevens, Chair                                                                                                      
Representative John Harris, Vice-Chair                                                                                          
Senator Lyda Green                                                                                                              
Representative John Coghill                                                                                                     
Senator Kim Elton                                                                                                               
Representative Beth Kerttula                                                                                                    
                                                                                                                                
Also Attending:  DEBORAH DAVIDSON, Staff to Senator Green                                                                     
                                                                                                                                
Attending via Teleconference:  There were no teleconference                                                                   
participants.                                                                                                                   
                                                                                                                                
SUMMARY INFORMATION                                                                                                         
                                                                                                                                
SB 283-APPROP: CAPITAL/SUPPLEMENTAL/REAPPROP/CBR                                                                                
                                                                                                                                
The Limited Conference Committee established those sections of the                                                              
bill in which both the House of Representatives and the Senate                                                                  
could reach agreement.                                                                                                          
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 283(FIN)                                                                                            
     "An  Act making  an appropriation  to  reverse  the deposit  of                                                            
     money  available for appropriation  in the general fund  at the                                                            
     end of fiscal year  2003 into the constitutional budget reserve                                                            
     fund;  making an appropriation  for investment management  fees                                                            
     for   the   constitutional    budget   reserve   fund;   making                                                            
     appropriations  under art. IX, sec. 17(c), Constitution  of the                                                            
     State of  Alaska, from the constitutional budget  reserve fund;                                                            
     and providing for an effective date."                                                                                      
                                                                                                                                
                                                                                                                                
     CS FOR SENATE BILL NO. 283(FIN) am H                                                                                       
     "An  Act making  an appropriation  to  reverse  the deposit  of                                                            
     money  available for appropriation  in the general fund  at the                                                            
     end of fiscal year  2003 into the constitutional budget reserve                                                            
     fund;  making an appropriation  for investment management  fees                                                            
     for  the constitutional  budget  reserve fund  for fiscal  year                                                            
     2004;  making an appropriation  for investment management  fees                                                            
     for  the constitutional  budget  reserve fund  for fiscal  year                                                            
     2005; making appropriations  to the Department of Education and                                                            
     Early  Development   for  K-12  educational  programs;   making                                                            
     appropriations  to  the University  of  Alaska  and the  Alaska                                                            
     Court  System; making an appropriation  to reverse the  deposit                                                            
     of money  available for  appropriation  in the general  fund at                                                            
     the  end of fiscal  year 2004  into the  constitutional  budget                                                            
     reserve fund;  making an appropriation of the  amount necessary                                                            
     to balance  revenue and general fund appropriations  for fiscal                                                            
     years  2004  and 2005;  making  appropriations  for power  cost                                                            
     equalization  and for grants to municipalities,  unincorporated                                                            
     communities,  and designated recipients; making  appropriations                                                            
     under  art.  IX,  sec.  17(c), Constitution   of the  State  of                                                            
     Alaska,  from  the  constitutional  budget  reserve  fund;  and                                                            
     providing for an effective date."                                                                                          
                                                                                                                                
                                                                                                                                
Senator B.  Stevens noted  the intent of  this meeting to  establish                                                            
those   portions  of   the  bill   in  which  both   the  House   of                                                            
Representatives  and the Senate have reached agreement  and those in                                                            
which the two bodies differ.                                                                                                    
                                                                                                                                
Representative  Harris  offered  a motion  to adopt  the  provisions                                                            
contained  in  the  Senate  version  of the  bill  relating  to  the                                                            
Constitutional  Budget  Reserve  (CBR) and  the  three-quarter  vote                                                            
reverse sweep.                                                                                                                  
                                                                                                                                
Senator B. Stevens  clarified this motion would include  approval of                                                            
an appropriation for the FY 04 management fee.                                                                                  
                                                                                                                                
Representative Harris affirmed.                                                                                                 
                                                                                                                                
Senator  B.  Stevens  noted  the  total   of the  appropriation   is                                                            
$125,000.                                                                                                                       
                                                                                                                                
It was  clarified that the  reverse sweep  language is contained  in                                                            
Section 3(b) and  the language relating to the operation  of the CBR                                                            
is contained in Section  3(c). Further clarification was made of the                                                            
language  in  the  remainder  of Section  3,  which  appears  to  be                                                            
identical to that adopted by the House of Representatives.                                                                      
                                                                                                                                
There was no objection  to the motion and the language  of Section 3                                                            
(b) and (c) of CS SB 283 (FIN) was ADOPTED.                                                                                     
                                                                                                                                
Senator B.  Stevens established that  agreement has been  reached on                                                            
this language.                                                                                                                  
                                                                                                                                
Representative  Harris  offered  a  motion to  accept  the  language                                                            
contained  in Section 1  of CS SB  283 (FIN) am  H, relating  to the                                                            
education Foundation Funding  Formula Program, boarding home grants,                                                            
youth  and detention,  special  schools  and  pupil transportation;                                                             
totaling  $721,874,900  general funds,  $20,791,000  impact aid  and                                                            
$11,947,300 public school funds.                                                                                                
                                                                                                                                
Senator B.  Stevens objected  for discussion  purposes. He  asked if                                                            
this amount  was proposed in the Governor's  FY 05 operating  budget                                                            
legislation.                                                                                                                    
                                                                                                                                
Co-Chair Green affirmed.                                                                                                        
                                                                                                                                
Senator B.  Stevens stipulated  that this  amount is the  "baseā€¦non-                                                            
adjusted number" proposed by the Governor.                                                                                      
                                                                                                                                
Senator  B. Stevens  removed  his  objection  and the  language  was                                                            
ADOPTED.                                                                                                                        
                                                                                                                                
Representative  Harris offered  a motion to  accept the language  in                                                            
Section  2 of CS SB  283 (FIN) am  H relating  to the University  of                                                            
Alaska.                                                                                                                         
                                                                                                                                
Senator B.  Stevens objected  for clarification  to point out  again                                                            
the  amounts appropriated  in  this  section are  the  same as  that                                                            
proposed by the Governor and have not been adjusted.                                                                            
                                                                                                                                
Senator  B. Stevens  removed  his  objection  and the  language  was                                                            
ADOPTED.                                                                                                                        
                                                                                                                                
Representative  Harris recommended  delaying  action on adoption  of                                                            
contingency language.                                                                                                           
                                                                                                                                
Representative  Harris  offered a motion  to adopt  the language  in                                                            
Section  3(d)(e) and  (f) of  CS SB 283  (FIN) am  H, pertaining  to                                                            
withdrawal from  the CBR for FY 04 and FY 05 appropriations  and the                                                            
sweep provisions for FY 04.                                                                                                     
                                                                                                                                
Senator B.  Stevens objected, as he  understood these provisions  to                                                            
be  included in  the  contingency  language.  He pointed  out  these                                                            
subsections are subject to adoption of subsection (a).                                                                          
                                                                                                                                
The language was NOT ADOPTED.                                                                                                   
                                                                                                                                
Representative  Harris offered  a motion to  accept the language  in                                                            
Section  3(g) of CS  SB 283 (FIN)  am H, relating  to a $15,700,000                                                             
appropriation  to  the Power  Cost Equalization  (PCE)  program.  He                                                            
detailed this  appropriation would  include $11,000,000 in  earnings                                                            
of the Rural  Electrical Capitalization  fund and $4.4 million  from                                                            
the general fund through the CBR.                                                                                               
                                                                                                                                
Co-Chair  Green  objected,  suggesting  that  the  funds  should  be                                                            
acquired from an alternative source.                                                                                            
                                                                                                                                
The language was NOT ADOPTED.                                                                                                   
                                                                                                                                
Senator Elton  posed a procedural  question  asked if the intent  is                                                            
that the  Committee would  entertain motions  but that no roll  call                                                            
votes would  be taken  on those  motions in which  an objection  was                                                            
raised.                                                                                                                         
                                                                                                                                
Representative  Harris  and Senator  B.  Stevens responded  that  if                                                            
objections were raised,  action would be postponed and the Committee                                                            
would proceed to other items.                                                                                                   
                                                                                                                                
Representative  Harris offered  a motion to  accept the language  in                                                            
Section 4(a)  of CS SB 283 (FIN) am  H appropriating $84,500,000  to                                                            
the  Department   of  Education  and   Early  Development   for  the                                                            
Foundation Funding Formula program.                                                                                             
                                                                                                                                
Senator  B. Stevens  objected  for discussion,  commenting  this  is                                                            
another  issue   requiring  clarification   of  whether   action  is                                                            
permitted  under the  powers of  limited conference  granted to  the                                                            
Committee.  He pointed out  the amount is  $2.5 million higher  than                                                            
the amount approved by the Senate.                                                                                              
                                                                                                                                
The language was NOT ADOPTED.                                                                                                   
                                                                                                                                
Representative  Harris offered  a motion to  accept the language  in                                                            
Section 4(c)  of CS SB  283 (FIN) am H,  to appropriate $15,800,000                                                             
general funds from the CBR to the University of Alaska.                                                                         
                                                                                                                                
Representative  Coghill asked if this  appropriation includes  funds                                                            
for the Teachers Retirement System (TRS) increased expenses.                                                                    
                                                                                                                                
Representative Harris replied  this appropriation contains the $10.5                                                            
million proposed  in the FY 05 capital  budget plus funding  for the                                                            
Public Employees Retirement System (PERS) and TRS expenses.                                                                     
                                                                                                                                
Senator  B. Stevens pointed  out this  language is  the same  as the                                                            
language approved by the Senate.                                                                                                
                                                                                                                                
There being no objection the language was ADOPTED.                                                                              
                                                                                                                                
Representative  Harris offered  a motion to  accept the language  in                                                            
Section 4(d)  of CS SB 283  (FIN) am H for  the Alaska Court  System                                                            
and the PERS expenses for that branch of government.                                                                            
                                                                                                                                
Co-Chair Green objected,  informing that this appropriation has been                                                            
included  in  the Senate  version  of  the FY  05  operating  budget                                                            
legislation.                                                                                                                    
                                                                                                                                
Representative  Harris  commented  that  provided  that  funding  is                                                            
included in  another appropriation,  he would not oppose  removal of                                                            
the item from this bill.                                                                                                        
                                                                                                                                
Co-Chair Green  assured that the Senate would approve  appropriation                                                            
of these funds in the FY 05 operating budget.                                                                                   
                                                                                                                                
The language was NOT ADOPTED.                                                                                                   
                                                                                                                                
Representative  Harris offered  a motion to  accept the language  in                                                            
Section 4(e)  of CS SB 283  (FIN) am H to  appropriate funds  to the                                                            
City of Shishmaref for erosion control efforts.                                                                                 
                                                                                                                                
Senator Green  objected, relaying that Senator Olson  has approached                                                            
her  with a  proposal  for reappropriation  of  school construction                                                             
funds  to match  funds  from the  federal  Corps of  Engineers.  She                                                            
informed that the school  districts and legislators representing the                                                            
affected area have agreed to this proposal.                                                                                     
                                                                                                                                
Representative  Harris expressed  he must  first discuss the  matter                                                            
with Representative  Joule  before  agreeing to  removal of  funding                                                            
from this legislation.                                                                                                          
                                                                                                                                
The language was NOT ADOPTED.                                                                                                   
                                                                                                                                
Representative  Harris moved to accept the language  in Section 4(f)                                                            
through  (ee) of CS  SB 283  (FIN) am  H, noting  that the House  of                                                            
Representatives  and  the  Senate  are in  disagreement  over  these                                                            
provisions.                                                                                                                     
                                                                                                                                
Senator  B.  Stevens  objected  to  the  motion.  He  asserted  this                                                            
language reflects the core  difference between the versions approved                                                            
by  each body.  He reminded  of  the Senate  position  that  capital                                                            
improvement  expenditures should be  dedicated to projects  included                                                            
in  the Department  of  Education  and  Early  Development  deferred                                                            
maintenance list.                                                                                                               
                                                                                                                                
Representative Harris asked  if the Senate was prepared to present a                                                            
list of proposals.                                                                                                              
                                                                                                                                
Senator  B.  Stevens responded  such  proposals  would  be  offered,                                                            
noting that the  list has been published, and would  be addressed in                                                            
the priority order listed.                                                                                                      
                                                                                                                                
Senator Elton  clarified that Senator  B. Stevens' comments  reflect                                                            
the position of the Senate  Majority and not the entire Senate body.                                                            
                                                                                                                                
The language was NOT ADOPTED.                                                                                                   
                                                                                                                                
Representative  Harris offered  a motion to  accept the language  in                                                            
Section 4(ff) of CS SB  283 (FIN) am H. He listed the amount of this                                                            
appropriation  at $11,369,441.16 from the PCE endowment  fund and $4                                                            
million from the CBR fund.                                                                                                      
                                                                                                                                
Senator Green objected  opining that this item should be included in                                                            
operating budget legislation.                                                                                                   
                                                                                                                                
Representative  Harris asked if this item is included  in the Senate                                                            
working document of the FY 05 operating budget legislation.                                                                     
                                                                                                                                
Senator  Green  affirmed  and  specified  that  approximately   $4.4                                                            
million of the appropriation would be general funds.                                                                            
                                                                                                                                
DEBORAH DAVIDSON, Staff  to Senator Green, [speaking out of range of                                                            
the recording equipment]  outlined the appropriation included in the                                                            
Senate Finance Committee version of HB 375.                                                                                     
                                                                                                                                
Senator  B.  Stevens established   that disagreement  on  this  item                                                            
remains.                                                                                                                        
                                                                                                                                
The language was NOT ADOPTED.                                                                                                   
                                                                                                                                
Representative  Harris   clarified  that  the  Senate  approved  $82                                                            
million for public education.                                                                                                   
                                                                                                                                
Senator  B. Stevens  affirmed  this is  the position  of the  Senate                                                            
Majority.                                                                                                                       
                                                                                                                                
Representative   Harris  asked  if   Senator  B.  Stevens   has  any                                                            
inclination that this amount could be amended.                                                                                  
                                                                                                                                
Senator B. Stevens emphasized the position is firm.                                                                             
                                                                                                                                
Representative Kerttula recommended that presiding officers                                                                     
establish the powers of the conference committee.                                                                               
                                                                                                                                
ADJOURNMENT                                                                                                                 
                                                                                                                                
Senator B. Stevens recessed the meeting at 05:12 PM                                                                             

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