Legislature(1999 - 2000)
02/17/1999 09:02 AM Senate FIN
| Audio | Topic |
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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): SB 30 OPERATING BUDGET APPROPRIATIONS:
Front Section
The following overview was taken in log note format. Tapes and
handouts will be on file with the Senate Finance Committee through the
21st Legislative Session, contact 465-2618. After the 21st
Legislative session they will be available through the Legislative
Library at 465-3808.
Time Meeting Convened: 9:02 A.M.
Tape(s): SFC-99 #30, Side A (000 - 589)
Side B (589 - 185)
PRESENT:
X
Senator Parnell
X
Senator Adams
X
Senator Torgerson
X
Senator P. Kelly
X
Senator Donley
X
Senator Green
X
Senator Leman
X
Senator Phillips
X
Senator Wilken
ALSO PRESENT: DAN SPENCER, Budget Analyst, Office of Management and
Budget; TOM LAWSON, Director, Division of Administrative Services,
Department of Commerce and Economic Development; LARRY DIETRICK,
Program Manager, Prevention and Emergency Response Program,
Department of Environmental Conservation; KEVIN BROOKS, Director,
Division of Administrative Services, Department of Fish and Game;
NICO BUS, Administrative Services Manager, Division of Support
Services, Department of Natural Resources; DAVID TEAL, Director,
Division of Legislative Finance; GINGER BLAISDELL, Fiscal Analyst,
Division of Legislative Finance; aides to committee members and
other members of the Legislature.
LOG
SPEAKER
DISCUSSION
000
CO-CHAIR PARNELL
Called the meeting to order.
DAN SPENCER
Budget Analyst, Office of Management and Budget
was invited to join the committee.
Review of FY00 Operating Budget - Front Section
Analysis.
Section 1: Governor, Alaska Housing Finance
Corporation
(Presence of Senator Green noted at 9:10 a.m.)
Mr. Spencer explained subsection (a) transfer
of unexpended and unobligated amount of AHFC
unrestricted revenue available for
appropriation, by the direction of the AHFC
board to the Alaska Debt Retirement Fund for
fiscal years ending June 30, 1999 and June 30,
2000.
Previous years the balance had been transferred
to the general fund.
Subsection (b) would appropriate earnings
related to AHFC to AHFC as corporate receipts,
to be then allocated to their revolving fund,
housing assistance loan fund and senior housing
revolving fund.
Subsection (c) identified the amount of
corporate receipts within the revolving load
fund to be used by the AHFC for housing loan
programs not subsidized by AHFC corporate
receipts.
Section 2: Governor, Alaska Permanent Fund
Corporation
Subsection (a) would appropriate necessary
funds from the Permanent Fund Earnings Reserve
Account for the dividend program and other
uses.
Subsection (b) appropriated the amount needed
for inflation-proofing from the Earnings
Reserve Account to the principal of the
Permanent Fund.
Subsection (c) approporiated twenty-five
percent or fifty percent of mineral lease
rentals, royalties, royalty sales to the
principal of the Permanent Fund.
Subsection (d) appropriated any interest earned
in FY 00 from mineral lease rentals, royalties,
royalty sales while the revenue was held in
trust, escrow or otherwise before received by
the State to the principal of the Permanent
Fund.
Section 3: Governor, Alaska Public Utilities
Commission
Reappropriated the June 30, 1999 balance of
APUC receipts to the Alaska Public Utilities
Commission for FY00 expenditures. FY00
estimate is $400.0.
Section 4: Governor, Alaska Science and
Technology Foundation
This section would reappropriate the balance of
June 30, 1999 in the Alaska Science and
Technology Endowment Earnings Reserve to the
Alaska Science and Technology Foundation to
award as grants under AS 37.17.030(d) for FY00.
148
TOM LAWSON
Director, Division of Administrative Services,
Department of Commerce and Economic Development
was invited to join the committee.
Section 5: Governor, Alaska Seafood Marketing
Institute
This appropriated the June 30, 1999 balance of
FY99 general fund receipts from the salmon
marketing tax from the seafood marketing
assessment (AS 16.51.120) for FY00 ASMI
expenditures.
Section 6: Governor, Budget Reduction
Requiring Legislation - Longevity Bonus
Eligibility
If legislation introduced by the Governor (HB
55 and SB 40) to place income limits on
longevity bonus eligibility were approved by
the Legislature operating appropriations would
be reduced.
169
SENATOR DONLEY
Asked for a short at ease. 9:15 a.m.
170
CO-CHAIR PARNELL
Reconvened meeting at approximately 9:16 a.m.
Asked Mr. Spencer to explain sections a little
more clearly.
173
MR. SPENCER
Continued and indicated that Mr. Lawson was
more appropriate to respond.
MR. LAWSON
He explained the carry forward from 1998 to
1999 does not have all the numbers. For FY
2000 between $200 and $500 thousand. Will know
exact figures in about another month.
CO-CHAIR PARNELL
Asked about the carry forward.
MR. LAWSON
Advised the co-chair that they do not know yet.
MR. SPENCER
Continued with Section 6: Governor, Budget
Reduction Requiring Legislation - Longevity
onus Eligibility
He explained that this would show up as a
fiscal note on the bill. There are perhaps two
or three fiscal notes. The budget reductions
would enact a fiscal note. It would require
separate legislation. This would make it clear
that it was a budget reduction; that is the
reason it is in this bill.
SENATOR DONLEY
Commented on "boiler plate". Is this an
implementation of a change that occurred
somewhere else? Begged a better description.
MR. SPENCER
There are various ways to take into account
certain legislation. Can be built into the
budget by the executive branch or the
Legislature. Does not have to happen either
way, however. Can also be done by fiscal note
and savings would show up at the end of the
year.
They are putting it in the front section so it
will be clear to everyone. Placed in the back
section Longevity Bonus would look like it was
going down.
CO-CHAIR PARNELL
Does this then reflect a policy call?
MR. SPENCER
Yes.
Section 7: Governor, Constitutional Budget
Reserve Fund (a) would provide for the general
fund sub accounts to be repaid by the CBR and
exclude pure general fund.
Subsection (b) would allow the State to cover
any shortfall in unrestricted revenues
available for the appropriation in FY00 from
the CBR. This amount would be appropriated to
the general fund from the CBR according to
balancing language.
Subsection (c) stipulated that appropriations
made by (a) and (b) of this section would be
made under Article IX, section 17(c).
CO-CHAIR PARNELL
Asked if the limit was set at $701 million?
MR. SPENCER
Yes.
SENATOR DONLEY
Asked for further clarification of the amount.
MR. SPENCER
Further comments. No one knows the exact
amount at this stage.
Section 8: Governor, Disaster Relief Fund
Appropriated Federal receipts received for
disaster relief to the disaster relief fund.
Approximately $9,000.0 has been included in
Federal funds in the Department of Military and
Veterans' Affairs in the back section of the
bill.
Section 9: Governor, Federal and other Program
Receipts (a) was standard language that
provides for additional funding authority for
Federal and other program receipts through the
Legislative Budget and Audit Committee process.
It would not restrict the LB&A committee to
particular fund source consideration.,
Subsection(b) was standard language that if
Federal or other program receipts were grater
than appropriated then the appropriations from
the State funds (general funds) may be reduced
if the reductions are consistent with
applicable Federal statutes.
Subsection (c) was standard language that if
Federal and other receipts are less than the
amount appropriated the appropriation would be
reduced by the amount of the shortfall. He
referred to SB 28, which would deal with
section (a) that they discussed last week.
Section (b) says you may not spend more than
you have. Section (a) is different in the
current year budget. They are opening this
section up to various other program receipts.
SENATOR LEMAN
Would this trigger an additional State match?
Is this a possibility?
MR. SPENCER
He explained that the general rule is that
revised programs are based on additional
Federal receipts if they had match in a
supplemental. This does not only apply to
general funds and could be other funds.
SENATOR LEMAN
What about disaster monies? What are some
examples of other funds that may not have
matches or we may be shifting from other State
general fund matching sources?
MR. SPENCER
Narcotics Task Force from Feds with State
match; Division of Governmental Coordination
has no match requirements; some RPL's in the
past like CSED; general fund over budget.
SENATOR LEMAN
Does this enable us to accept Federal monies
and make commitment of a supplemental, for
example western Alaska Fish Disaster?
MR. SPENCER
Disaster is a good example. The reason being
because there are State funds committed to this
disaster fund. He explained the difference in
what is expected to be needed and what is
available. Five days were required to notice
the Governor for a special session needed for
disaster.
The most that he is familiar with is to present
a supplemental to the Legislature. Most
Federal funds that come in if they have match
requirements would be identified. There is a
formal process requiring a separate
notification to the Legislature.
SENATOR ADAMS
Fisheries receipts (page 10). Referred to
section 8(c) and said this would be changed if
passed under other legislation.
MR. SPENCER
Section 10: Governor, Federal Subsistence Funds
He said he would like to call Kevin Brooks from
the Department of Fish and Game to answer any
questions.
SENATOR TORGERSON
MR. SPENCER
Subsection (a) indicated that $11,000.0 Federal
funding was appropriated to the US Department
of Interior and US Department of Agriculture
for the State of Alaska. Alaska's receipt of
the funding is contingent on the Legislature
adopting a constitutional amendment for
ratification by Alaska voters to allow a rural
subsistence priority.
Subsection (b) stated that if subsection (a)
was satisfied, the Federal receipts are
appropriated to the Department of Fish and Game
to help implement a unified subsistence
management system and provide support to
decision-making groups in that effort. If
Alaska meets the June 1, 1999 contingency as
outlined in subsection (a) the appropriation
would be allocated as follows: $3,000.0 to the
Board of Fisheries, Board of Game, regional
advisory councils and local advisory
committees; and $8,000.0 for biological
research, monitoring and management to ensure
yield and to improve utilization of fish and
wildlife for subsistence, commercial and
support purposes.
Subsection (c) stated that if the June 1, 1999
contingency requirement were not met the
allocations outlined in subsection (b) would be
proportionately reduced.
SENATOR PHILLIPS
Asked about $11 million on subsistence. Is it
going to be our own people enforcing the law or
Federal people?
KEVIN BROOKS
Director, Division of of Administrative
Services, Department of Fish and Game was
invited to join the committee. Responded to
Senator Phillips regarding the $11 million. If
they do not use the money the Feds will use it
with their own people.
SENATOR PHILLIPS
Will State people assist the Federal government
in enforcing these funds?
MR. BROOKS
Has spoken with Senator Torgerson who has their
budget. Not something the department can turn
their backs on.
SENATOR PHILLIPS
Reiterates his question. Are we going to let
the Feds enforce this? Will the State
participate?
MR. BROOKS
Would feel more comfortable in deferring to the
Commissioner.
SENATOR PHILLIPS
Asks question be posed to the Commissioner and
the answer be provided to the committee.
SENATOR LEMAN
Was the Legislature adopting the measure? What
happens if the voters do not vote for this?
Could the Supreme Court remove it from the
ballot or rewrite the amendment? Do they need
to repay the $11 million?
MR. BROOKS
Advised the committee that he was not prepared
to answer the question at this time. Will have
the department respond via the Task Force.
What are trigger mechanisms for the $11
million? This requires an amount of
discussion. They do have to have a
constitutional amendment now regardless of the
thresholds that have to be overtaken.
CO-CHAIR PARNELL
Asked that the department respond to these
posed questions by Senator Leman.
SENATOR LEMAN
He suggest they could perhaps be answered at
the subcommittee level.
SENATOR TORGERSON
Advised that these questions have been posed to
the subcommittee and will answer to the
committee in full when the discussions have
been completed.
Is the $11 million a one-time deal?
MR. BROOKS
He responded saying it was an occurring event.
SENATOR ADAMS
Asked that his bill on subsistence be waived to
this committee so it could be discussed
simultaneously.
MR. SPENCER
Continued his explanation. Section 11:
Governor, Fish and Game Enforcement
Subsection (a) appropriated to the Fish and
Game fund the amount of criminal fines,
penalties and forfeitures imposed and collected
under AS 16.05.195 from the general fund.
Subsection (b) said the Public Safety and Law
amounts are for increased enforcement,
investigation and prosecution of State Fish and
Game laws. If receipts are less than the
amount appropriated the appropriations would be
reduced proportionately.
SENATOR WILKEN
Requested a three to five year reflection of
fines.
SENATOR ADAMS
Asked that the breakdown also include what goes
to the Department of Law.
MR. SPENCER
Section 12: Governor, Four Dam Pool Transfer
The section made the necessary appropriation
from the Four Dam Pool Transfer Fund to the
Southeast Energy Fund, the Power Cost
Equalization and Rural Electric Capitalization
Fund, and the Power Project Fund. The
estimated amount available for transfer from
the Four Dam Pool for FY00 was $9,493.7.
CO-CHAIR PARNELL
Why is there a significant increase for FY00?
MR. SPENCER
Does not know.
SENATOR ADAMS
Indicated that money was taken on an annual
basis for repairs and needs an update.
SENATOR LEMAN
Asked about the FY98 - FY99 funds that were
transferred.
MR. SPENCER
Advised he would have to get back to the
committee.
CO-CHAIR PARNELL
There is a significant increase so would
appreciate the requested information being
presented to the committee.
MR. SPENCER
Section 13: Governor, Information Services
Fund
This section appropriated statutory designated
program receipts to the Information Services
Fund for the Department of Administration,
Division of Information Services
telecommunication services. Statutory
designated program receipts are reflected in
the Department of Administration budget as
$55.0 I/A Receipts.
Section 14: Governor, Insurance and Bond Claims
- Catastrophe Reserve Account.
There was a variety of purposes that this fund
operated under. Some of the funding is being
used as an interim for Y2K.
SENATOR ADAMS
Asked about judgments?
MR. SPENCER
Said this was also related to Court activities.
He will have backup regarding these activities
as soon as possible.
Section 15: Governor, Insurance Fees -
Reappropriation.
He noted this was not a new section. It
reappropriated the June 30, 1999 balance of FY
99 general fund program receipts (insurance
fees) under AS 21.06.250 for FY00 Department of
Commerce and Economic Development, Division of
Insurance operating costs. A safe estimate for
the FY00 carry forward was $1,500.0.
Section 16: Governor, Land Disposal
Appropriated general fund receipts in the
fiscal years ending June 30, 2000 and June 30,
2001 from land sales at Naukati Bayon Prince of
Wales Island (not to exceed $50.0) and Vallenar
Bay on Gravina Island (not to exceed $200.0) to
the Department of Natural Resources for land
sale preparation costs. Timing is not known
and therefore this section is included in the
front section rather than the back section.
CO-CHAIR PARNELL
Questioned as to why it is not in the back
section. Asked for an explanation.
MR. SPENCER
Timing of the receipts is uncertain. It is in
the front section so it does not get lost in
the shuffle. Would not fit in back section
under specific listings.
CO-CHAIR PARNELL
Will have to work on this one.
MR. SPENCER
Section 17: Governor, Marine Highway System
Fund.
This was a general fund appropriation to the
Alaska Marine Highway System fund. The amount
of the transfer can be found in the Marine
Highway Stabilization Fund component of the
DOT/PF budget. He noted that it was a little
bit up from FY 99. Not sure of the difference.
SENATOR TORGERSON
Is the interest on the fund normally
appropriated?
MR. SPENCER
Did not know the answer.
Section 18: Governor, Motor Fuel Tax.
This section appropriated estimated amounts
from the unreserved special accounts in the
general fund to the general fund to be
available operating funding from the following
sources: $23,924.5 for the special highway
fuel tax account; and $5,400.0 for the special
aviation fuel tax account. he income was based
on the existing eight cents per gallon tax.
It was noted that the amounts were estimates.
Did not believe they would have to do this.
They had considered dropping this section a few
years ago.
CO-CHAIR PARNELL
Why was this based on an eight-percent
increase?
MR. SPENCER
It was consistent with what had been done in
the past.
Section 19: Governor, Occupational Licensing -
Reappropriation
Would reappropriate the June 30, 1999 balance
of FY99 general fund program receipts
(occupational licensing fees) for FY00
Department of Commerce and Economic
Development, Division of Insurance operating
costs. FY00 estimate approximately $1,000.0.
CO-CHAIR PARNELL
Asked if this was an increase in the Department
of Commerce, Occupational License budget?
MR. SPENCER
If this pertained to above the amount in the
back section, yes.
CO-CHAIR PARNELL
Asked why?
TOM LAWSON
Recalled to join the committee. He explained
that it was being done this way because money
brought in by the fees was in excess. Rather
than roll it into general funds they rolled it
back into the department budget. This was done
by language in the front section.
MR. SPENCER
Introduced the following two Sections and
advised that Mr. Larry Dietrick would speak to
them.
Section 20: Governor, Oil and Hazardous
Substance Release Prevention Account
Section 21: Governor, Oil and Hazardous
Substance Release Response Account.
(Tape #30, side A switch to side B at log 589
at 9:45 a.m.)
LARRY DIETRICK
Program Manager, Prevention and Emergency
Response Program, Department of Environmental
Conservation was invited to join the committee.
(pause while documents handed out)
Subsection (1) said the prevention mitigation
account received money recovered from parties
responsible for containment and cleanup of oil
or other hazardous substances, as well as
fines, penalties or damages as a result of
prevention measures. The Governor did not
include this estimated amount, which was
approximately $5,618.8.
Subsection (2) said the prevention account
contained appropriations from the special
account in the general fund to the OHSRPR fund
from the three-cent surcharge collected in the
general fund during the prior year. FY00
deposits are appropriated from the general fund
for FY00 expenditures.)
CO-CHAIR PARNELL
Asked if he would address particularly
subsection 2?
Would like to know about the $5.6 million?
Asked that Mr. Dietrick to get back on this
matter to the committee. He said he was having
difficulty in getting required information, and
further noted that the departments were not
prepared. Will have to have another meeting
because of this situation but would rather
avoid having to have another meeting.
563
MR. DIETRICK
Section 21: Governor, Oil and Hazardous
Substance Release Response Account
Subsection (1) The response mitigation account
received money recovered from parties
responsible for containment and cleanup of oil
or other hazardous substances, as well as
fines, penalties or damages as a result of
emergency response measures. The Governor did
not include the estimated amount of $416.1.
Subsection (2) This response account contains
appropriations from the special account in the
general fund to the OHSRPR fund from the two
cent surcharge collected in the general fund
during the prior year. This surcharge is only
required when the balance of the SHSRRA dropped
below $50 million.
CO-CHAIR PARNELL
Will have same questions as section 21.
MR. SPENCER
Section 22: Governor, Performance Measures.
The Governor's intent language requests that
the goals, strategies and performance measures
be stated in a separate resolution. There was
concern that the appropriations bill may not
conform to Article II, Section 13 which
required that appropriations bills be confined
to appropriations.
He thinks this is a good idea but looking for
right way from Legislature.
CO-CHAIR PARNELL
Would not support the legislation as is.
SENATOR TORGERSON
Comments.
MR. SPENCER
Section 23: Governor, Real Estate Surety Fund
The balance of the real estate surety fund that
exceeds $500.0 is appropriated to the
Department of Commerce and Economic
Development, Division of Occupational Licensing
for purposes related to the real estate surety
fund for the fiscal year ending June 30, 2000.
It was noted that the statute clearly states
that amounts in the fund may not exceed $500.0
and amounts in excess of $250.0 may be
appropriated for real estate educational
purposes.
At this point, he said he would have to defer
to the Department of Commerce.
Unable to answer specific questions.
TOM LAWSON
Rejoined the committee.
CO-CHAIR PARNELL
He said he was trying to get more money for the
department. Asked for an explanation as to how
money is restricted and if they are complying
with the statute.
How will the funds be used?
MR. LAWSON
Funds are only used for a surety intent and he
referred to statutory language for the surety
fund. This lapsed excess balance to be used in
the surety fund. Annually, they draw money out
of the fund and spend it based on the guidance
as set out by law for education, as well as for
claims, all within the realm of the real estate
world. There was a statutory cap of $500,000.
SENATOR DONLEY
Stated it would be reasonable to get rid of the
statutory cap. Mr. Lawson said they have to
deal with a huge issue because revenue only
comes in every two years. Fund was set up to
pay for claims as well as to pay for
educational purposes. Dealing with limited
statutory language which really limits them
because of cash flow. Would like to see the
cap raised so they would not be in a box trying
to balance the cash flow for high and low
years.
MR. SPENCER
Section 24: Governor, Retained Fees
The language addressed the need to appropriate
vendor compensation and/or bankcard services
fees that were not directly appropriate by the
State for vendors or banking institutions that
collect fees on behalf of the State. These
originated from fish and game fishing, hunting
and trapping license sales where the vendor
retained a portion of the sale instead of the
vendor submitting the full collection and the
State reimbursing the vendor for expenses
related to selling licenses. The agencies
should be directed to include these fees in
their annual budget requests.
For example fish and game licenses. Fees being
retained by vendors.
Section 25: Governor, Safety Advisory Council
- Reappropriation
This reappropriated Safety Council program
receipts no expended in FY99 to be carried
forward into FY00 for the Governor's safety
conference. FY00 estimated $100.0.
Section 26: Governor, Salary and Benefit
Adjustments
This was FY00 pay increases for University of
Alaska employees. The (unknown) amount is the
net amount for three items: salary
adjustments, health benefit adjustments and
changes in contribution rates for the Public
Employees Retirement System.
It was seen in two places. The front section
bargaining units; back section funding for the
University. Would ordinarily have the costs of
any bargaining unit agreements for any costs
introduced. Would propose an amendment to
show the costs. Does not have an agreement yet
to show the amounts.
SENATOR ADAMS
Asked if there was a time line for settlement
of the bargains?
MR. SPENCER
Did not have a time line. Practical time line
is just in time to get a bargain.
Section 27: Governor, Salmon Enhancement Tax
Appropriated general fund salmon enhancement
tax receipts to the Department of Commerce and
Economic Development for payment in FY00 to
qualified regional aquaculture associations.
The amount is not included in the operating
budget general fund spending totals. It is
"pass-through" money.
He explained that this appropriates tax from
the general fund to regional associations.
Section 28: Governor, Shared Taxes and Fees
This appropriated general funds to the
Department of Revenue in the amounts necessary
to refund local governments their share of
taxes and fees collected for payment in FY99.
It was noted that FY98 $22,199.6, FY99 and FY00
are anticipated to be a similar amount. He
said the amounts necessary should be
appropriated. The change was made during the
Hickel administration.
Section 29: Governor, State Debt and Other
Obligations
Subsection (a) interest on revenue anticipation
notes is appropriated from the general fund to
the Department of Revenue for payment of
interest on notes.
Subsection (b) amount required to be paid by
the State for principal and interest on State
bonds is appropriated from the general fund to
the State bond committee for payment on those
bonds.
Subsection (c) $5,739.1 from the general fund
to the Alaska Debt Retirement Fund.
Subsection (d) $16,287.8 from the Debt
Retirement Fund for trustee fees and lease
payments related to certificates of
participation for real property.
Subsection (e) $2,518.0 from the Debt
Retirement Fund for payment of debt service and
trustee fees on general obligation bonds.
Subsection (f) $2,877.5 from the International
Airports Revenue Fund for payment of debt
service and trustee fees on international
airport revenue bonds.
Subsection (g) $71,788.1 from the Debt
Retirement Fund ($26,258.6) and School Fund
($45,529.5) to the Department of Education for
State aid for costs of school construction.debt
retirement fund.
He explained how the debt retirement fund is
calculated. Usually there is some amount of
carry forward in this fund. Anticipated there
will be an amendment soon. There have been a
couple of changes. International Airport fund.
Fluctuations under section (g).
SENATOR WILKEN
Asked the difference in debt retirement fund
and school fund.
MR. SPENCER
School fund - cigarette tax used for
maintenance and construction.
Debt retirement fund - general funds.
SENATOR ADAMS
All schools need assistance, not just urban
schools. Schools in rural Alaska should be
considered for some of this money.
MR. SPENCER
Section 30: Governor, State Training and
Employment Program
The State Training and Employment Program is
funded from the Employment and raining Program
Account that is funded by a contribution of
one-half of one percent from each employee's
wages. Unspent balances must be lapsed from
this account into the unemployment compensation
fund. For FY99 this language was changed so
that unspent balances must be lapsed from this
account into the employment assistance and
training program account. FY00 estimated at
$400.0.
CO-CHAIR PARNELL
Asked if this is something done statutorily or
is it a policy call?
MR. SPENCER
Underwent changes last year.
Section 31: Governor, Statutory Budget Reserve
If unrestricted revenues are less than
necessary for FY00 appropriations, the amount
necessary to balance revenue and general fund
appropriations is appropriated to the general
fund from any balance that may be available
from the Statutory Budget Reserve Fund.
There is no real impact from this section.
Does not know why it is still in there.
CO-CHAIR PARNELL
Perhaps some money could be found!
MR. SPENCER
Section 32: Governor, Storage Tank Assistance
Fund
This would appropriate from the OHSRPR Fund,
prevention account (non-general fund) to the
Storage Tank Assistance Fund. For FY98
language was included that allowed the
Legislature to capitalize the storage tank
assistance fund with any general fund
registration fees collected on underground
petroleum storage tanks or tank systems. In
SLA 98 the language was changed so that the
fees collected would be considered unrestricted
general fund revenue and would be replaced with
$200.0 from the oil and hazardous substance
release prevention account.
SENATOR DONLEY
Has many questions regarding this section but
will not bring up now.
MR. SPENCER
Section 33: Governor, Student Loan Program
The amount from student loan borrowers of the
Alaska Commission on Postsecondary Education
that was assessed for loan origination fees for
the fiscal year ending June 30, 2000, is
appropriated to the origination fee account
within the student loan fund of the Alaska
Student Loan Corporation.
SENATOR DONLEY
Asked to go back to section 31. Why is this
not an important section?
(Brief at ease at 10:15 a.m., tape 30, Side B,
log 369.)
CO-CHAIR PARNELL
Reconvened meeting.
MR. SPENCER
Explained origination fee account for section
31.
Section 34: Governor, Teacher Certification -
Reappropriation
This reappopriates the June 30, 1999 balance of
FY99 teacher certification general fund
receipts from certification fees under AS
14.20.020(c) for FY00 teacher certificatin
expenditures. FY00 estimate was $100.0.
CO-CHAIR PARNELL
Why were amounts not included in front or back
section?
MR. SPENCER
Doesn't know.
CO-CHAIR PARNELL
Asked that the matter be looked into.
MR. SPENCER
Will provide answer to the committee.
Section 35: Governor, Test Fishery Receipts
FY99 balance of commercial fisheries test
fishing operations receipts from the harvest
and sale of crab are appropriated to the
Department of Fish and Game or operations of
the shellfish onboard observer program in the
Division of Commercial Fisheries Management and
Development for FY00.
KEVIN BROOKS
Was asked to Rejoin the committee. This is in
the front section due to some timing problems
with Department of Revenue. It involves
putting employees (seasonal) on vessels to
observe. Includes 50 seasonal positions.
Problem is that the observers will be incurring
costs prior to the test fisheries. There were
two basic fisheries they were dealing with.
Use monies from the test fisheries incurred in
the spring for this.
SENATOR WILKEN
Why is amount zero?
MR. BROOKS
He said the amount was zero because it is
dependent on price. $2.7 was specific in the
budget.
MR. SPENCER
Section 36: Governor, Value-added Timber Sales
Appropriation was not to exceed $250.0 general
fund receipts generated in fiscal years ending
June 30, 2000 and June 30, 2001 from value-
added timber sales in Southeast and in the
Tanana Valley to the Department of Natural
Resources. The appropriation amount was not
included in the total of the Governor's
appropriation bill.
CO-CHAIR PARNELL
Requested Nico Bus to join committee.
NICO BUS
Administrative Services manager, Division of
Support Services, Department of Natural
Resources was invited to join the committee.
He explained sections 36 and 37. Explained why
they were not part of the back section.
MR. SPENCER
Sections 37, 38 and 39 refer to lapse dates.
He concluded his presentation to the committee.
SENATOR WILKEN
Section 39(b) explanation.
MR. SPENCER
He said it referred to section 1(a), the AHFC
bond bill passed by the Legislature last year.
$9 million was needed in FY 99 estimate. They
had to reach in retroactively.
SENATOR WILKEN
Section 39(b)
MR. SPENCER
Responds. If they did not go back and
retroactively take the monies, they would go
back into the general fund rather than debt
retirement. AHFC provides an annual dividend
set out for debt.
SENATOR LEMAN
Page 9, line 4 of bill.
MR. SPENCER
Is sure the amount is correct.
Budget amendments are due in a couple of weeks
and will have some. There were a number of
questions the committee had. Apologized that
he did not have all the necessary information
for the committee. He said he had a list of
questions that the committee would like
answered and will be able to do so at a later
time if the committee required. At best he
tried to guess where the questions would be
today.
CO-CHAIR PARNELL
Budget amendments. He said they were looking
at some deletions as advised by the Governor
for FY 2000 budget.
MR. SPENCER
Confirmed $15 million in reductions.
SENATOR PHILLIPS
$15 million from prior year reductions?
MR. SPENCER
$15 million for FY 2000.
CO-CHAIR PARNELL
Thanked Mr. Spencer and department staff for
their presentation.
Adjourned meeting at approximately 10:30 a.m.
Tape number 30, side B at log number 185.
SENATE FINANCE COMMITTEE
LOG NOTES
02/17/99
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