Legislature(1999 - 2000)
01/25/1999 09:00 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
GENERAL SUBJECT(S): Overview of the Governor's FY 2000 Proposed Budget
Time Meeting Convened: 9:00
Tape(s): SFC-99 # 7
Counter: Beginning: 000 - 502
End:
PRESENT:
x
Senator Parnell
Senator P. Kelly 9:05
x
Senator Torgerson
x
Senator Leman
x
Senator Phillips
x
Senator Green
Senator Donley
x
Senator Adams
x
Senator Wilken
ALSO PRESENT:
DAVID TEAL, DIRECTOR, DIVISION OF LEGISLATIVE FINANCE
GINGER PATTON BLAISDALE, FISCAL ANALYST, LEGISLATIVE FINANCE
TAPE
LOG
SPEAKER
DISCUSSION
7(A)
000
8:59 Senator Parnell convened meeting.
David Teal, Director, Leg.
Finance
He explained that Leg. Finance obtains information
from Governor appropriation bills.
Governor's Budget based on contingency.
There are a number of technical changes as
compared to what was reflected in last year's
budget.
Governor should not be creating new fund sources.
His budget does include new fund sources. Motor
fuel tax, pioneer home receipts and tobacco
settlement.
The federal government may require under the
tobacco settlement that funds be used for medical
purposes.
Under the Governor's Budget funds should be held
until the Legislature decides how they should be
used.
FY '99 budget is off. Supplemental requests may
exceed $50 million.
The Governor's Budget usually increases because
of technical corrections.
Also there is a question of AHFC receipts.
Unobligated funds were to go into the general fund.
$23.6 million left over from last year intended for
the general fund. After speaking with Legal
Services the word is "intend" only.
AIDEA receipts of $18.8 are going into the capital
budget.
PCN count is not equal to the number of
employees. They are new and reflected in the
budget but may not be actually filled positions.
Re: Operating Budget (increment of $73 million)
Re: Split between formula programs and agency
operations reflected at bottom of page 3.
Re: Capital Budget as reflected on page 4. Total
capital spending in the amount of $939 million
which is a reduction of approximately $264 million
from FY 99.
Re: Four Dam Pool receipts
Explains shortage to fund PCE. It will need some
general funds to be fully funded. It is presumed
this will come from general funds. Otherwise there
is no backing for PCE.
He feels detail makes it very clear the status of
PCE. By law detail should have come in by second
Monday of January. This is a matter of timing
rather than anything else.
Executive Budget Act calls for the Governor to
submit all bill specifying new revenue. They do
not have a bill for the motor fuel tax yet.
No model legislation has been seen yet, but know it
needs to be passed. Specifically, the Pioneer
Homes, however it may not need new legislation.
Six year capital plan is a requirement but has been
only casually followed. They have not received a
detailed copy of the materials to date.
7(A)
296
Would like to see an amendment to have the
materials come in earlier in December.
No documentation has been received on the capital
budget yet.
The Administration should have submitted
quarterly report to the Legislature as to compliance.
Senator Torgerson
Requested information on the debt service. He
feels it is not down.
David Teal
Concurs with Senator Torgerson. Tobacco, AHFC
still outstanding. Debt service has not declined by
much, however under general service they are
declining somewhat.
Senator Torgerson
Asked about big numbers.
David Teal
Fisheries and PCE will be supplemental along with
Corrections.
Senator Kelly
Queries about PCE.
David Teal
Confusion about this year. He is responding to FY
2000. He said there is funding for PCE this year.
Senator Kelly
He asked if we would run out of funding for PCE in
the year FY 2001.
David Teal
Something is being done but not sure what. The
source of funding for PCE does not have near
enough to cover it. Also funding under the Four
Dam Pool but will still leave the fund short. It can
come under the capital budget or a fiscal note.
If legislation is required for PCE it should be left
out and be put in the way of a fiscal note, same as
Longevity Bonus.
Senator Kelly
Re: AHFC bonds
David Teal
Explains the AHFC bond.
Senator Adams
He commented on PCE and said he has worked
with Senator Pearce on this matter. He asked the
number that should be put in on a statutory basis
regarding number of employees.
David Teal
Would have to wait for the report from Office of
Management and Budget. It is difficult to get
information from the departments.
Senator Adams
Budget can be cut as much as we want but does not
solve the problem facing us. He asked if Leg.
Finance had any proposal to solving the problem
facing them?
David Teal
He has no proposals to solve this problem.
Senator Parnell
Referred to page three of the handout and asked the
State's total spending.
David Teal
$6.5 billion he responded
Senator Adams
It is easy to say the $6.5 billion. He said we have
to look at this as general fund dollars. Must
compare oranges to oranges. He would like it
stated we are talking about general fund monies.
Additionally, non-general funds should be
specified.
Senator Parnell
It is correct that $6.5 billion is spent. An actual
picture of what is being spent should be presented.
He concurred with Senator Adams.
Senator Wilken
Asked that $25.6 million under the budget
reduction be clarified at some time by Mr. Teal.
Senator Leman
Asked about welfare programs and wondered if
there was an increment and how much it was.
David Teal
Would rather not misquote the amount.
Senator Parnell
Asked Mr. Teal to run through the figures once
more.
David Teal
Explained the differences and where the bulk of the
monies was. He explained off budget and said they
noted them as general funds rather than listing them
off the budget. In terms of fiscal gap there is no
difference he explained. Gap is revenue versus
expenditures.
7(A)
480
Oil revenues are down.
Senator Adams
Referred to SB 36 and other passed legislation of
last year.
Senator Kelly
House and Senate took cuts that the Governor's
office did not.
Senator Parnell
Thanked Mr. Teal and concluded the morning
meeting.
He reviewed the schedule for tomorrow morning at
9:00 a.m.
7(A)
502
Senator Parnell recessed meeting at approximately
9:45 a.m.
SENATE FINANCE COMMITTEE
LOG NOTES
01/25/99
Page 1
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