Legislature(2007 - 2008)SENATE FINANCE 532
02/11/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| SB256 | |
| Start | |
| SB256 | |
| Adjourn | |
| SB256 |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 256 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 11, 2008
9:04 a.m.
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee meeting
to order at 9:04:33 AM.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Kim Elton
Senator Donny Olson
Senator Joe Thomas
Senator Fred Dyson
MEMBERS ABSENT
Josh Fink, Director, Office of Public Advocacy, Department
of Administration; Tom Chapple, Director, Division of Air
and Water Quality, Department of Environmental Conservation;
Lynn Kent, Director, Division of Water, Department of
Environmental Conservation
ALSO PRESENT
Karen Rehfeld, Director, Office of Management and Budget;
Eric Swanson, Director, Division of Administrative Services,
Department of Administration; Samuel Thomas, Director,
Division of Administrative Services, Department of Commerce,
Community and Economic Development; Chris Christensen, Staff
Counsel, Alaska Court System; Larry Cohn, Executive
Director, Alaska Judicial Council, Alaska Court System;
Sharleen Griffin, Director, Division of Administrative
Services, Department of Corrections; Mike Maher, Director,
Division of Administrative Services, Department of Revenue;,
Laura Baker, Budget Chief, Division of Administrative
Services, Department of Health and Social Services; Craig
Tillery, Deputy Attorney General, Department of Law; Richard
Svobodny, Deputy Attorney General, Criminal Division,
Department of Law; Leta Simons, Director, Division of
Support Services, Department of Natural Resources; Mark
Lewis, Director, Administrative Services, Department of
Education and Early Development; Tom Lawson, Director,
Administrative Services, Department of Fish and Game; Guy
Bell, Assistant Commissioner and Director, Division of
Administrative Services, Department of Labor and Workforce
Development; Gail Fenumiai, Director, Division of Elections,
Office of the Lieutenant Governor; Jerry Burnett, Director,
Division of Administrative Services, Department of Revenue;
Dan Spencer, Director, Division of Administrative Services,
Department of Public Safety
PRESENT VIA TELECONFERENCE
None
SUMMARY
SB 256 "An Act making supplemental appropriations,
capital appropriations, re-appropriations, and
other appropriations; amending certain
appropriations; ratifying certain expenditures;
making appropriations to capitalize funds; and
providing for an effective date."
SB 256 was heard and HELD in Committee for further
consideration.
9:05:03 AM
SENATE BILL NO. 256
"An Act making supplemental appropriations, capital
appropriations, re-appropriations, and other
appropriations; amending certain appropriations;
ratifying certain expenditures; making appropriations
to capitalize funds; and providing for an effective
date."
Co-Chair Hoffman stated that the total of the supplemental
budget is $257 million, with $205 million in general funds.
9:05:42 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
noted the significant components of SB 256: $125 million Oil
and Gas Tax Credit Fund, Senior Benefits Payment Program,
and the General Government Unit (GGU) contracts.
9:06:33 AM
Sections 10-12 Court System Capital
Build chambers for new Fairbanks Supreme Court Justice
and offices for staff. $629.7
CHRIS CHRISTENSEN, STAFF COUNSEL, ALASKA COURT SYSTEM,
addressed the capital supplemental request for construction
on the fifth floor of the Rabinowitz Court House in
Fairbanks. It was supposed to have a fast track effective
date, but was given an incorrect date. The Supreme Court
regularly travels to Juneau and Fairbanks to hear cases.
The court currently has a member working in Juneau, and from
1965 until 1997 had a member working in Fairbanks. When the
legislature authorized the lease purchase of the Rabinowitz
Court House ten years ago, the design called for only four
floors, with the fifth floor an empty shell to be used for
future expansion. Last year Governor Palin appointed
Supreme Court Justice Daniel Winfry, and he is using a room
that will soon be filled by a superior court judge. Mr.
Christianson requested the money from the supplemental
budget in order to begin construction on this project.
Sections 7-9 Court System Judicial Council
Additional applicant evaluation costs due to increased
number of vacant judgeships. The FY09 budget has a
corresponding increase of $64.5. $63.6
LARRY COHN, EXECUTIVE DIRECTOR, ALASKA JUDICIAL COUNCIL,
ALASKA COURT SYSTEM, reported that this was the Alaska Court
System's first supplemental budget request in more than 25
years. The request is driven by the fact that there has
been a very high rate of judicial vacancies. The Court
System's budget anticipated four vacancies a year. So far
in FY 08, there are eight vacancies and more are
anticipated. This request would enable the Court System to
fill the vacancies and not have to defer them into the next
fiscal year, leaving positions vacant. The legislature has
been concerned about case disposition times. This would be
a cheap investment toward allowing cases to be decided
quickly.
9:10:55 AM
Sections 1-3 Multiple GGU
Ratified bargaining unit agreement costs for the
General Government Unit. 4% wage increase and health
insurance increase of $16.58 from $863.20 to $879.78
$24,234.3
Ms. Rehfeld addressed additional costs for the General
Government Unit due to a 4 percent wage increase and health
insurance increase.
ERIC SWANSON, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF ADMINISTRATION, further discussed the
ratification of the bargaining unit contracts which are
retroactive to July 1, 2007, which led to additional costs.
Sections 4-6 Multiple ETS Net Zero Supplemental
Funds previously distributed to state agencies to
offset increased chargeback rates for enterprise
technology services as identified in the statewide
federal cost allocation plan are redistributed to more
closely align with costs.
From: DOA (406.2); Labor (216.5); and DOR (161.3) =
(784.0)
To: DCCED 32.3; DOC 63.9; DEC 45.2; F&G 77.2; Gov 25.0;
HSS 190.5; Law 48.7; DMVA 13.6; DNR 67.3; DPS 75.4; DOT
117.6; and Legislature 27.3 = 784.0 $0.0
Mr. Swanson explained the request to redistribute funding
that had previously been appropriated for increased costs of
enterprise technology services chargeback. When the current
allocation plan was prepared, a redistribution was needed.
Sections 7-9 Administration Office of Public Advocacy
Current projections indicate OPA will require
supplemental funding in the amount of $2,400.0 to
operate through FY2008. Caseload growth has gone beyond
anybody's expectation. OPA has seen a significant spike
in case assignments in Anchorage and Palmer. OPA has
also seen a number of the more complicated and
expensive cases go to trial (cold cases and numerous
murder cases). While OPA projected an increase in
felony cases of 12% statewide based on a 5 year
average, in Anchorage OPA has seen a 43% increase in
felony filings in the first half of FY2008 compared to
last year. On the higher level crimes, OPA saw a 48%
increase in unclassified cases and a 158% increase in
felonies.
There are $90.0 excess guardianship fees receipts in
FY2008, which will be used to fund a portion of this
supplemental. $2,400.0
Sections 7-9 Administration Public Defender Agency
Current projections indicate the PD will require
supplemental funding in the amount of $820.0 to operate
through FY2008. The PD has experienced significant
increases in case load of a variety of types throughout
the much of the state in the first quarter of FY2008 as
compared to the same period in FY2007. In Anchorage
felonies are up 2% and misdemeanors are up 19%. In
Southcentral Alaska felonies are up 12%, misdemeanors
are up 19%, child in need of aid (CINA) cases are up
82%, while in Southwest Alaska those cases are up 30%,
21%, and 85% respectively. $820.0
Mr. Swanson spoke about a request for general funds for the
Office of Public Advocacy and for the Public Defender
Agency. He explained that both of the agencies require
additional funding because of larger case loads. Also, the
Public Defender Agency has recently become more aggressive
at identifying potential conflicts in cases early on. Those
cases get deferred to the Office of Public Advocacy. Many
cases have to be assigned to a private sector contract
attorney and are more expensive. There have been a large
number of higher cost cases.
9:14:34 AM
Section 28(a) Debt: Debt Service Administration Lease
Financing $(2,907.9)
Atwood parking garage debt: $3,443,000 was appropriated
in HB 95, Sec 30(m) for FY08. Only one debt payment in
the amount of $535,105.53 will be made in FY08, a
reduction of $2,907,894 from the maximum amount that
had originally been estimated.
Mr. Swanson related that a previous request for debt
retirement for the Atwood parking garage was excessive. The
amount of debt retirement for the current year is
$535,105.53 and the appropriation should be reduced to the
necessary amount.
Co-Chair Hoffman asked about the Office of Public Advocacy
amount, which he thought would be substantially smaller.
Mr. Swanson deferred to Mr. Fink to answer.
9:16:11 AM
JOSH FINK, DIRECTOR, OFFICE OF PUBLIC ADVOCACY, DEPARTMENT
OF ADMINISTRATION, explained the justification for the
request. Earlier this year there were a number of cases
with conflicts of interest, such as the one that, on the eve
of trial, the public defender recognized that he had
represented the victim. In another case witnesses had to
"conflict out". These were high-end cases, and the public
defender decided to direct all of the attorneys to re-
analyze all cases for conflict, resulting in a large number
with conflicts. He provided statistics regarding increases
in case loads, especially felonies. This resulted in the
need to use expensive, private contractors.
Senator Thomas noted that the increases are not due to a
population increase. He wondered if there was a way to
gather information about why there was such an increase in
felonies and effect a change. Mr. Fink replied that there
is a new case management system that is gathering that data.
He added that some laws regarding misdemeanors/felonies have
changed. He reported that he does not have solid data on
the issue.
9:19:41 AM
Co-Chair Hoffman asked about the status of bargaining units
other than GGU and possible requests for funding. Ms.
Rehfeld reported that the Department of Administration is
working with those bargaining units. She predicted that
there would be more requests this session.
9:20:24 AM
Sections 7-9 Commerce AK Energy Authority PCE
Fully fund PCE by increasing the program $1,200.0 from
$26,760.0 to $27,960.0 due to the increase in fuel
costs. $1,200.0
SAMUEL THOMAS, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT, explained a request to fully fund the Alaska
Energy Authority Power Cost Equalization (PCE) by increasing
the program by $1.2 million due to higher fuel costs.
Sections 7-9 Commerce Banking and Securities
Estimated legal and administrative hearing costs above
the funding level of the fiscal note for Chapter 50,
SLA2007 (HB162 - Mortgage Bill). At the time the bill
was passed it was agreed with the legislature that, if
necessary, these additional costs would be sought for
FY08. $95.0
Mr. Thomas addressed the request for funding estimated legal
and administrative hearing costs above the funding level of
the fiscal note for HB 162, a mortgage bill.
Sections 7-9 Commerce Insurance
Estimated legal and administrative hearing costs above
funding level. $140.0
Mr. Thomas explained the request related to estimated legal
and administrative hearing costs above funding for
insurance.
9:26:05 AM
Sections 7-9 Commerce Regulatory Commission of AK
Unexpected high, ongoing costs of major litigation are
exceeding FY07 supplemental and FY08 operating funding
amounts. In the past, some litigation costs were
funded by not filling positions. This is no longer
possible due to expanding case load, recently imposed
statutory deadlines, and dramatic loss of tenured
advisory staff. $500.0
Mr. Thomas spoke about the unexpected high, ongoing costs of
major litigation. He related that there were expanding case
loads, recently imposed statutory deadlines, and loss of
tenured staff.
9:27:50 AM
Sections 10-12 Commerce Capital
Prescription Drug Monitoring - This capital project
grant request is for the initial planning grant awarded
by the U.S. Department of Justice related to the
Prescription Drug Monitoring Program. Prescription
monitoring programs help prevent and detect the
diversion and abuse of pharmaceutical controlled
substances, particularly at the retail level where no
other automated information collection system exists.
$49.4
Mr. Thomas turned to additional funding for the prescription
drug monitoring program. The request is for the initial
planning grant.
Sections 10-12 Commerce Capital
Organizational Grant. The Division of Elections will
be conducting an incorporation election in Wrangell in
early May. If voters approve, city will be dissolved
and a borough will be formed. The department only has
30 days after the election is certified to provide the
first year organization grant. This request is for the
first year grant for Wrangell, the FY09 Capital Budget
requests the second year grant. $300.0
Mr. Thomas explained a request related to an organizational
grant. The Division of Elections will be conducting an
incorporation election in Wrangell in May and will require a
grant to be funded.
Sections 10-12 Commerce Capital
Climate Change Impact Mitigation Program - Grants
($150.0 max) to imminently threatened communities for
planning for addressing threats and mitigation
measures; mini grants ($50.0 max) to identify climate
change related impacts that are threatening life,
property or economics; support for local coordinators
in communities demonstrating imminent threats; and
funding for oversight of programs and grants. $1,100.0
Mr. Thomas related that the request is for climate change
impact mitigation program grants. These grants can be used
by imminently threatened communities.
9:32:10 AM
Section 20(a) Commerce Capital
Correct sec 42(c), SB53, SLA 2007, pg 164, line 19, by
deleting the reference to "for the fiscal year ending
June 30, 2008." $0.0
Mr. Thomas spoke about the request for a technical
correction in SB 53. The reference to "for the fiscal year
ending June 30, 2008" would be deleted.
Section 20(b) Commerce Capital
Restore $34,334 revenue sharing for the community of
Whitestone - sec. 55(c), ch. 30, SLA 2007, page 184,
line 3. $34.3
Mr. Thomas addressed an item which restores revenue sharing
for the community of Whitestone, which was removed due to a
misunderstanding.
Section 20(c) Commerce AK Energy Authority
Rename the Alaska Energy Authority - ALCAN Intertie
project (sec. 4, ch. 82, SLA 2006, page 117, lines 21-
22 - $3,200,000) to Alaska Energy Authority - Kake -
Petersburg Intertie and Alaska - British Columbia
Intertie. $0.0
Mr. Thomas explained the request would rename the Alaska
Energy Authority - ALCAN Intertie to Alaska Energy Authority
- Kate - Petersburg Intertie and Alaska - British Columbia
Intertie.
Section 20 (d) Commerce Quality Trade Assoc Contract
Reduce the FY08 operating appropriation for this
component by $800.0 from $5,005.1 to $4,205.1 to "free
up" funds that are then used in the FY09 capital budget
named recipient grant to ATIA. ($800.0)
Mr. Thomas discussed the request to reduce the FY 08
operating appropriation for the Quality Trade Association in
order to free up funds for the ATIA grant recipient in the
FY 09 budget.
9:38:05 AM
Section 20(e) Commerce Capital
Scope change: Community Development Assistance [GRANTS]
capital project to expand scope to allow department
spending to provide community assistance. Currently
scope is too narrow, only allowing grants to
communities. (Sec. 4, ch. 30, SLA 2007, page 84, line
26) The estimated unobligated balance is $11,089,500.
$0.0
Mr. Thomas addressed the request that would change the scope
of the Community Development Assistance capital project to
allow department spending to provide community assistance.
Section 27 Debt: Fund Capitalization PCE Fund
Increase PCE Fund capitalization by $700.0 from
$12,999.4 GF to $13,699.4 GF (total funds from
$25,273.0 to $25,973.0) in order to provide more PCE
funding needed due to increased fuel costs. $700.0
Mr. Thomas explained that the request would increase PCE
Fund capitalization in order to provide more PCE funding due
to increased fuel costs.
9:40:17 AM
Senator Elton requested more information about the FY 08
$800,000 deduction to be used in FY 09 for the ATIA grant
recipient. He wanted to know what the match would be after
the transfer of the $800,000. He also wondered if the
vehicle rental tax was anticipated for ATIA's mission.
Co-Chair Hoffman echoed concerns about the same
appropriation because it would remove the requirement for
the match and may discourage future match contributions.
Mr. Thomas agreed to provide more information.
Co-Chair Stedman requested more information about PCE fund
changes, in particular, the cash flow changes. He assumed
there would not be a need for as much fuel to heat homes in
June, compared to February and March.
Co-Chair Hoffman summarized that more information is needed
in both areas. He requested the information in writing.
9:43:29 AM
Co-Chair Hoffman inquired if Section 20(c) was a renaming of
a project or a reappropriation to a different project. Mr.
Thomas replied that it is a reappropriation. Co-Chair
Stedman asked why the item is in the supplemental budget.
Co-Chair Hoffman agreed that it might be better included in
another vehicle.
Co-Chair Stedman requested more information about the
Bradfield corridor and the Kake-Petersburg corridor.
9:45:42 AM
Sections 7-9 Corrections Correctional Academy
Training Academy - Recruitment efforts have been
successful; however, this has created a very critical
backlog in getting new hires their mandatory training.
This is a serious safety and security issue. A
supplemental request will meet the current training
needs of the recruits as well address the curriculum
needs of the academy. $145.4
SHARLEEN GRIFFIN, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF CORRECTIONS, explained that the
request is for a Correctional Academy. The recruitment
campaign has been very successful and now there are a number
of Correctional Officer I's that require training in a
timely manner.
Sections 7-9 Corrections Institution Director's Office
This request covers the Correctional Facilities
shortfall of personal services, contractual, and
commodities. This includes costs such as correctional
officer overtime, fuel surcharges, electricity and
other utility and heating costs, increased commodities
costs for food and other operational commodities. The
prisons are 24-hour facilities that must remain open.
Every effort is made to control costs; however, actual
costs are exceeding the FY2008 budget. $1,852.0
Ms. Griffin spoke of the request for coverage for a
shortfall of personal services, contractual, and commodities
for all correctional facilities statewide. A portion of the
request is due to Leap Year and having to run the
institutions for an extra 24 hours. Another portion is for
utility allocations. There is also a need to fund overtime
at 24-hour correctional facilities, and supplies.
Sections 7-9 Corrections Inmate Health Care
The department is requesting a supplemental for
increased inmate health care costs and to meet medical
staff overtime costs. The funding is needed to meet the
department's mandated obligations of medical care for
the aging and increased population of offenders and for
the sharp increase in the number and the cost for
inmates needing dialysis, cancer treatment and the
growing number of life-threatening cases. Funding will
also assist in meeting the personal service overtime
costs associated with providing the required nursing
oversight. $2,427.3
Ms. Griffin said that the request for funds for inmate
health care costs are due to an increased population,
catastrophic cases, overtime in 24-hour facilities, and
increased costs for vendor services.
Section 21(a) Corrections Community Jails
The Division of Legislative Audit recommends that the
Department of Corrections restructure the community
jails program to promote equity between communities.
This involves identifying the various types of
activities and costs associated with operating local
jails while being consistent with security standards
and staffing requirements. This is even more important
because according to the Department of Administration
each community participating in the community jails
program is already required to have a State single
audit. Establishing a professional services agreement
with an independent contractor will assist the
department in its endeavor to ensure that a balanced
distribution of funding is allocated on an equitable
basis within the community jails program. An extended
termination date is required to allow sufficient time
to procure a contract and assure the vendor has
adequate time to complete this analysis. $45.0
9:48:12 AM
Ms. Griffin turned to the request for restructuring the
community jails program and for a term date extension until
June 30 of FY 09. Legislative Audit audited the community
jails program and recommended that the department come up
with a new allocation plan that jail-related expenditures
for each community are reviewed and standardized costs are
developed. The funding is for a contractor to review all of
the community jails and come up with a standard cost
allocation plan.
Section 21(b) Corrections Out-of-State Contractual
This amount pays for an FY2006 unpaid outstanding
contractual invoice for $50,000 from the Correctional
Corporation of America. $50.0
Ms. Griffin described the need to fund a bill from FY 06
from the Correctional Corporation of America that the
department did not know was outstanding.
Section 21(c) Corrections Parole Board
This request is to pay an FY2005 unpaid outstanding invoice
for $399.09 from the Voyager Hotel. $0.4
Ms. Griffin explained that the request is to pay an
outstanding FY 05 invoice from the Voyager Hotel.
Section 21(d) Corrections Population Management,
Anchorage Correctional Complex
There have been lower than anticipated costs and
therefore federal receipts, for housing federal inmates
(man-day federal shortfall). Beds are used for state
and local inmates so general fund authorization is
necessary. $0.0
Ms. Griffin related that the funds are needed to replace
empty federal authorization with general funds. There has
been a reduction in the number of federal offenders the
department is housing, but the cost of the facilities is
fairly static. She noted a shortfall last year.
9:50:02 AM
Senator Elton asked whether the correctional academy has
been moved. Ms. Griffin responded that it had moved; it was
previously housed with the Anchorage Police Department and
now it is in the Palmer State Office Building. Senator
Elton asked if moving costs were reflected in the request.
Ms. Griffin said they were not.
Co-Chair Stedman asked if the costs for the academy were
waiting for legislative approval. Ms. Griffin replied that
the department is waiting for approval, however, if the
funds are not approved, several officers will not meet the
APSC requirements within the specified timeframe.
Senator Elton asked how much of the $1.8 million
Correctional Facilities shortfall is commodities. Ms.
Griffin replied $406,100 and an additional $30,000 related
to Leap Day. Senator Elton asked if there was $900,000 for
commodities last year, plus an additional request for
$250,000 that was also exceeded. Ms. Griffin said that was
correct. She pointed out that the population has increased
beyond what was anticipated - by over 300 offenders.
Senator Elton thought that components 20 (b-d) did not
appear to be capital expenditures. He questioned their
inclusion in the capital budget. Ms. Griffin was not sure.
Ms. Rehfeld pointed out that they were in the regular
operating section.
9:54:02 AM
Co-Chair Hoffman asked about 21(d) and why the federal
appropriation was not received for housing federal inmates.
Ms. Griffin replied that the federal authorization was
overstated. Additionally, there has been a reduction in the
number of federal offenders the state is housing. She
explained that the federal government has procured several
private industry beds out of state.
Co-Chair Stedman asked if the request for funds for the
correctional academy had already been incurred. Ms. Griffin
responded that the department is hoping to hold the
academies this fiscal year. If they are not held, the time
requirement for certification will lapse. Co-Chair Stedman
concluded that they had not been dispensed yet, but would be
dispensed by June 30. Ms. Griffin agreed.
9:56:13 AM
Senator Huggins asked about the Parole Board outstanding
invoice. He wondered how the money would be allocated
otherwise. Ms. Griffin responded that if the money is not
allocated, the department cannot pay the vendor. In FY 05,
the Parole Board was its own single component RDU and there
are no funds left. Senator Huggins concluded that it is a
one-time assistance.
Senator Huggins spoke of a concern about the Correctional
Academy. He requested to know more information about
curriculum needs. Ms. Griffin explained that it was
materials, as well as ammunition. Senator Huggins requested
a breakdown of those expenses, as well as for the
Correctional Facilities shortfall request.
9:58:13 AM
Sections 7-9 Environmental Conservation Office of the
Commissioner
Support for the Climate Change work group process, with
an extended lapse date through June 30, 2009. $230.0
MIKE MAHER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF REVENUE, addressed funding for support costs
for climate change work groups.
Section 13(a) Environmental Conservation Water Quality
Implementation of the Ocean Ranger program. The
contract needs to be established early enough to allow
the contractor to hire and train Ocean Rangers prior to
the season beginning in May 2008. The contractor will
incur substantial expenditures for hiring, training,
and purchasing equipment in preparation for the
upcoming season. In addition to the contractor's
costs, the department is incurring expenditures for
paying staff and other expenditures for implementation
of the program. $2,800.0
Mr. Maher spoke of a request for implementation of the Ocean
Ranger program. The funding source is from the Cruise
Vessel Fund. The request is for projected revenues for the
program.
Sections 13(a)-13(nn) Environmental Conservation Capital
Transfer unused balance ($120,671 GF) from Stebbins -
Water and Sewer Improvements (38) (Sec. 135, Ch. 103,
SLA 1995, Pg 58, Ln 11) to a new Village Safe Water
Study, Design and Construction Projects allocation.
Transfer unused balance ($1,945,738 Fed) from
Environmental Protection Agency Indian Set Aside Grants
(ED 99) (Sec. 135, Ch. 103, SLA 1995, Pg 58, Ln 35) to
a new Village Safe Water Study, Design and Construction
Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects $2,066,409 - Sec. 135, Ch. 103,
SLA 1995.
Transfer unused balance ($55,000 GF) from
Engineering/Feasibility Studies (ED 99) (Sec. 100, Ch.
123, SLA 1996, Pg 47, Ln 25) to a new Village Safe
Water Study, Design and Construction Projects
allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 100, Ch. 123, SLA 1996.
Transfer unused balance ($49,503.69 GF Match +
$49,503.70 Fed) from Lower Kuskokwim School District -
Tuntutuliak School Sewage Disposal Feasibility
Study/Design (ED 39) (Sec. 82, Ch. 100, SLA 1997, Pg
46, Ln 14) to a new Village Safe Water Study, Design
and Construction Projects allocation.
Transfer unused balance ($59,662.26 GF Match +
$59,662.25 Fed) from Village Of Kipnuk - Aquifer
Storage and Recovery Demonstration Study (ED 39) (Sec.
82, Ch. 100, SLA 1997, Pg 46, Ln 32) to a new Village
Safe Water Study, Design and Construction Projects
allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 82, Ch. 100, SLA 1997.
Scope change needed to allow for Village Safe Water
Design and Construction Projects.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 131, Ch. 139, SLA 1998.
Scope change needed to allow for Village Safe Water
Design and Construction Projects.
Transfer unused balance ($21,000 Fed + $21,000 AHFC
Rcpts) from Kwethluk Housing Water Systems Improvement
Study (ED 39) (Sec. 131, Ch. 139, SLA 1998, Pg 43, Ln
3) to a new Village Safe Water Study, Design and
Construction Projects allocation.
Transfer unused balance ($68,140.59 Fed + $68,140.58
AHFC Rcpts) from Gulkana Water Modernization Project
(ED 36) Sec. 131, Ch. 139, SLA 1998, Pg 44, Ln 17) to a
new Village Safe Water Study, Design and Construction
Projects allocation.
Transfer unused balance ($379,101.15 Fed + $6.07 AHFC
Rcpts) from Badger Richardson Water Supply Design (ED
29-34) (Sec. 131, Ch. 139, SLA 1998, Pg 45, Ln 10) to a
new Village Safe Water Study, Design and Construction
Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects $515,382 Sec. 131, Ch. 139, SLA
1998.
Scope change needed to allow for match by any federal
agency, not just RDA.
Transfer unused balance ($11,837.60 Fed + $5,915.42
AHFC Rcpts) from Crooked Creek Johnny John Sr. School
Sewer System Feasibility Study (ED 36) (Sec. 100, Ch.
2, FSSLA 1999, Pg 41, Ln 7) to a new Village Safe Water
Study, Design and Construction Projects allocation.
Transfer unused balance ($9,299.99 Fed + $4,639.98 AHFC
Rcpts) from Crooked Creek Master Plan (ED 36) (Sec.
100, Ch. 2, FSSLA 1999, Pg 41, Ln 10) to a new Village
Safe Water Study, Design and Construction Projects
allocation.
Transfer unused balance ($11,966.07 Fed + $5,982.95
AHFC Rcpts) from Old Harbor Sanitation Improvements
Feasibility Study (ED 6) (Sec. 100, Ch. 2, FSSLA 1999,
Pg 42, Ln 15) to a new Village Safe Water Study, Design
and Construction Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 100, Ch. 2, FSSLA 1999.
Scope change needed to allow for Village Safe Water
Design and Construction Projects.
Scope change needed to allow for match by any federal
agency, not just EPA.
Transfer unused balance ($526,635.57 Fed + $263,364.43
AHFC Rcpts) from Tununak Flush Tank and Haul (ED 38)
(Sec. 100, Ch. 2, FSSLA 1999, Pg 44, Ln 10) to a new
Village Safe Water Study, Design and Construction
Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 100, Ch. 2, FSSLA 1999.
Scope change needed to allow for any federal agency and
to allow Village Safe Water Study Projects.
Scope change needed to allow for match by any federal
agency, not just RDA.
Transfer unused balance ($58,378.07 GF) from Rampart
Water and Sewer (ED 36) (Sec. 100, Ch. 2, FSSLA 1999,
Pg 45, Ln 21) to a new Village Safe Water Study, Design
and Construction Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 100, Ch. 2, FSSLA 1999.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 135, SLA 2000.
Scope change needed to allow for Village Safe Water
Design and Construction Projects.
Transfer unused balance ($28,614.57 Fed + $9,538.19
AHFC Rcpts) from Akhiok Water and Sewer Improvements
Feasibility Study (ED 6) (Sec. 1, Ch. 135, SLA 2000, Pg
6, Ln 12) to a new Village Safe Water Study, Design and
Construction Projects allocation.
Transfer unused balance ($25,179.02 Fed + $8,393.01
AHFC Rcpts) from Ivanof Bay Landfill Water Quality
Protection Study and Preliminary Design (ED 40) (Sec.
1, Ch. 135, SLA 2000, Pg 7, Ln 10) to a new Village
Safe Water Study, Design and Construction Projects
allocation.
Transfer unused balance ($43,895.02 Fed + $14,631.68
AHFC Rcpts) from Kaltag Master Plan (ED 36) (Sec. 1,
Ch. 135, SLA 2000, Pg 7, Ln 13) to a new Village Safe
Water Study, Design and Construction Projects
allocation.
Transfer unused balance ($63,717 Fed + $21,239 AHFC
Rcpts) from Nuiqsut Sewage Lagoon Closure Feasibility
Study (ED 37)(Sec. 1, Ch. 135, SLA 2000, Pg 8, Ln 3) to
a new Village Safe Water Study, Design and Construction
Projects allocation.
Transfer unused balance ($73,500 Fed + $24,500 AHFC
Rcpts) from Saint George Water and Sewer System
Planning Study (ED 40) (Sec. 1, Ch. 135, SLA 2000, Pg
8, Ln 11) to a new Village Safe Water Study, Design and
Construction Projects allocation.
Transfer unused balance ($20,684.79 Fed + $6,894.93
AHFC Rcpts) from Saxman Water Storage Design Study (ED
1) (Sec. 1, Ch. 135, SLA 2000, Pg 8, Ln 16) to a new
Village Safe Water Study, Design and Construction
Projects allocation.
Scope change needed to allow for match by any federal
agency, not just EPA.
Transfer unused balance ($225,000 Fed + $75,000 AHFC
Rcpts) from Savoonga Water and Sewer Project (Sec. 1,
Ch. 135, SLA 2000, Pg 9, Ln 13) to a new Village Safe
Water Study, Design and Construction Projects
allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 135, SLA 2000.
Scope change needed to allow for any federal agency and
to allow Village Safe Water Study Projects.
Transfer unused balance ($94,393.63 Fed + $31,464.54
AHFC Rcpts) from Allakaket Sanitation Facilities
Improvement Plan (Sec. 1, Ch. 61, SLA 2001, Pg 11, Ln
29) to a new Village Safe Water Study, Design and
Construction Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 61, SLA 2001.
Scope change needed to allow for Village Safe Water
Design and Construction Projects.
Transfer unused balance ($56,200 Fed + $18,800 AHFC
Rcpts) from Rampart Solid Waste and Water Quality
Protection Plan (Sec. 1, Ch. 61, SLA 2001, Pg 13, Ln
18) to a new Village Safe Water Study, Design and
Construction Projects allocation.
Transfer unused balance ($10,682.06 Fed + $3,560.69
AHFC Rcpts) from Chistochina Facility Plan (Sec. 1, Ch.
1, SSSLA 2002, CH 1, Page 29, Line 28) to a new Village
Safe Water Study, Design and Construction Projects
allocation.
Transfer unused balance ($17,160.79 Fed + $5,720.26
AHFC Rcpts) from False Pass Wastewater Treatment and
Disposal Feasibility Study (Sec. 1, Ch. 1, SSSLA 2002,
Pg 29, Ln 28) to a new Village Safe Water Study, Design
and Construction Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 1, SSSLA 2002.
Scope change needed to allow for Village Safe Water
Design and Construction Projects.
Transfer unused balance ($182,000 GF + $1,200,000 Fed +
$218,000 AHFC Rcpts) from Tuluksak Water and Sewer
Project - Phase I (Sec. 1, Ch. 1, SSSLA 2002, Pg 31,
Ln 9) to a new Village Safe Water Study, Design and
Construction Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 1, SSSLA 2002.
Scope change needed to allow Village Safe Water Study
Projects.
Transfer unused balance ($1,042,500 Fed + $347,500 AHFC
Rcpts) from Tuntutuliak Water and Sewer Project (Sec.
1, Ch. 1, SSSLA 2002, Pg 35, Ln 11) to a new Village
Safe Water Study, Design and Construction Projects
allocation.
Transfer unused balance ($525,000 Fed + $175,000 AHFC
Rcpts) from Alatna Water Supply and Sewage Collection
and Treatment Project Phase 4 (Sec. 1, Ch. 82, SLA
2003, Pg 20, Ln 23) to a new Village Safe Water Study,
Design and Construction Projects allocation.
Transfer unused balance ($66,000 Fed + $22,000 AHFC
Rcpts) from Egegik Water and Sewer Improvement Project
Phase 4 (Sec. 1, Ch. 82, SLA 2003, Pg 21, Ln 22) to a
new Village Safe Water Study, Design and Construction
Projects allocation.
Transfer unused balance ($1,473,750 Fed + $491,250 AHFC
Rcpts) from Tuluksak Sanitation Facilities Construction
Phase 2 (Sec. 1, Ch. 82, SLA 2003, Pg 23, Ln 28) to a
new Village Safe Water Study, Design and Construction
Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 82, SLA 2003.
Scope change needed to allow for Village Safe Water
Study Projects.
Transfer unused balance ($16,500 Fed + $5,500 AHFC
Rcpts) from Delta Junction Downtown Water and Sewer
Master Plan (Sec. 1, Ch. 82, SLA 2003, Pg 24, Ln 26) to
a new Village Safe Water Study, Design and Construction
Projects allocation.
Transfer unused balance ($9,025.56 Fed + $3,008.52 AHFC
Rcpts) from Port Protection Wastewater Engineering
Study (Sec. 1, Ch. 82, SLA 2003, Pg 25, Ln 21) to a new
Village Safe Water Study, Design and Construction
Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects $34,034 - Sec. 1, Ch. 82, SLA
2003. Scope change needed to allow for Village Safe
Water Study Projects.
Transfer unused balance ($847,500 Fed + $282,500 AHFC
Bond Proceeds) from Hyder Sewer System Development
Phase 1 (Sec. 1, Ch. 159, SLA 2004, Pg 22, Ln 27) to a
new Village Safe Water Study, Design and Construction
Projects allocation.
Transfer unused balance ($531,000 Fed + $177,000 AHFC
Bond Proceeds) from Kivalina Sewer and Water Haul
System (Sec. 1, Ch. 159, SLA 2004, Pg 23, Ln 5) to a
new Village Safe Water Study, Design and Construction
Projects allocation.
Transfer unused balance ($687,000 Fed + $229,000 AHFC
Bond Proceeds) from Koyukuk Sanitation Improvement
Project Phase 2 (Sec. 1, Ch. 159, SLA 2004, Pg 23, Ln
11) to a new Village Safe Water Study, Design and
Construction Projects allocation.
Transfer unused balance ($2,190,000 Fed + $730,000 AHFC
Bond Proceeds) from Tuluksak Sanitation Facilities
Construction Phase 3 (Sec. 1, Ch. 159, SLA 2004, Pg 24,
Ln 18) to a new Village Safe Water Study, Design and
Construction Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 159, SLA 2004.
Scope change needed to allow for Village Safe Water
Study Projects.
Transfer unused balance ($798,750 Fed + $266,250 GF
Match) from Brevig Mission Water and Sewer Connections
(Sec. 1, Ch. 3, FSSLA 2005, Pg 48, Ln 20) to a new
Village Safe Water Study, Design and Construction
Projects allocation.
New allocation: Village Safe Water Study, Design and
Construction Projects - Sec. 1, Ch. 3, FSSLA 2005.
Scope change needed to allow for Village Safe Water
Study Projects.
Mr. Maher referred to Sections 13(a)-(nn) as a net zero
supplemental. They reallocate funding for various projects
in the Village Safe Water Program. They allow the
department to close out a number of old projects and to go
further down the prioritization list and finish some
projects that will need additional funding.
Co-Chair Stedman asked about the request for the Climate
Change work group process. He wanted information about the
timing of the request. Mr. Maher said the request was for
an extended lapse date for a two-year period. Co-Chair
Stedman asked why it is not included in the regular
operation budget. Mr. Maher said it was because operating
funds were already being spent on this project. Co-Chair
Stedman wondered if there was a hardship to not run it
through the regular budget. Mr. Maher thought there may not
be a hardship.
Senator Elton pointed out that the work group was
established by the Governor and includes other departments.
He wondered if other departments were contributing to the
cost. Mr. Maher deferred to Mr. Chappell.
10:03:20 AM
TOM CHAPPLE, DIRECTOR, DIVISION OF AIR AND WATER QUALITY,
DEPARTMENT OF ENVIRONMENTAL CONSERVATION, replied that there
were several other agencies involved that were making the
same "in kind" commitments as the Department of
Environmental Conservation (DEC) was. The supplemental
request would support contractual work that would help the
work group effort go forward. The general fund request
would leverage other grant funds. The total of the effort
would be considerably more than the $230,000 by using the
grant funds. The total consequence of the work group effort
would have a more significant impact on DEC and the other
agencies if it was not funded separately. Senator Elton
asked if the working group was ordered by the Governor's
office. Mr. Chapple replied that was correct. The Governor
signed Administrative Order 238 in September 2007, creating
the cabinet to develop a climate change strategy for the
state. Senator Elton asked if the Governor realized the
fiscal impact of the working group. Mr. Chapple replied
that was not possible at the time.
Co-Chair Hoffman asked if there would be further such
requests in 2010. Mr. Chapple said this request would
result in the project's completion.
10:06:03 AM
Co-Chair Stedman requested a letter from the Administration
notifying the legislature of the request.
Senator Elton asked about the request for $2.8 million from
the Commercial Passenger Vessel Fund. He wondered how much
would go to the contractor and how much would go to staff
costs.
LYNN KENT, DIRECTOR, DIVISION OF WATER, DEPARTMENT OF
ENVIRONMENTAL CONSERVATION, responded that of the budget for
the current fiscal year, a little under $400,000 is
allocated for DEC staff. The bulk of it is intended for the
Ocean Ranger contract. Senator Elton asked if the $400,000
is from the $4 million total, if the $2.8 million is
approved, or if the $400,000 comes out of the $2.8 million.
Ms. Kent replied that in the current budget, $1.2 million is
already authorized; combined with the supplemental, it
equals $4 million. The $400,000 is a portion of the $4
million.
Co-Chair Stedman asked about the need to research the
constitutional obligations of the Ocean Ranger program. He
also cautioned to keep an eye on the appropriation so that
its intent is not breached.
10:09:02 AM
Sections 7-9 Health & Soc Services Foster Care Base Rate
Increased costs in the amount of $656.3 due to increase
in Protective Services Reports received. Increased
collections of Supplemental Security Income (SSI) and
Child Support Services Division (CSSD) receipts $800.0.
Collections attached to IV-E eligible children are
reimbursed to the federal government; other funds are
built into the Foster Care base Rate payments.
Approximate 2,000 children are in foster care at any
given time. The Foster Care Base Rate is $24.13 per
day or $724 per month. $1,456.3
LAURA BAKER, BUDGET CHIEF, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF HEALTH AND SOCIAL SERVICES,
explained that the request is to fund additional "bed days",
or days of service for foster care homes. The receipt
supported services are funds that are coming back in from
Child Support Enforcement Division as part of federal
guidelines.
Sections 7-9 Health & Soc Services Foster Care Special Needs
Increased costs. An estimated 240 more children will
require special needs funding support for their foster
care this year. Approximately 1,800 children are
eligible to receive special needs funds at an average
cost of $240.00 per month. $699.8
Ms. Baker addressed increased costs for special needs
children in foster care due to a higher case load.
Sections 7-9 Health & Soc Services Medicaid Services
ProShare Disallowance. ProShare was disallowed by the
U.S. Department of Health and Human Services
Departmental Appeals Board in July 2007. Before
ProShare was begun, the department funded these grants
with general funds. Supplemental funding is needed to
continue the grants to community service providers.
$17,062.3
Ms. Baker talked about the replacement of lost federal
funds. The request is for the Medicaid refinancing program
called ProShare. The state started this process in FY 04.
Over a 2-year period $4 million was saved, but the federal
government disagreed with the procedure that was used. This
request would replace the lost funds related to FY 08, and a
smaller adjustment for FY 07.
Sections 7-9 Health & Soc Services Nome Your Facility
Increased operating costs. The facility is fully
staffed and cannot cover the budgeted 4% vacancy factor
or other costs related to the larger facility. This
request provides $70.0 personal services and $80.0
contractual services costs. $150.0
Ms. Baker spoke about funding for increased operating costs
for the Nome Youth Facility for personal and contractual
services.
10:12:11 AM
Sections 7-9 Health & Soc Services Johnson Youth Center
Increased medical costs for services provided to
juveniles at the facility. In the past two years these
costs were covered with ProShare funds, but that is no
longer an option. $250.0
Ms. Baker explained the cost request related to the Johnson
Youth Center. The funding is actually spread among five
youth centers: McLaughlin, Fairbanks, Bethel, Nome, and
Juneau. The request is for increased medical cost for
juveniles in these facilities, above and beyond the regular
operating costs for the division.
Sections 7-9 Health & Soc Services Probation Services
Replace uncollectible federal funding for Targeted Case
Management. $0.0
Ms. Baker related that the request for probation services in
the Juvenile Justice Division is a fund source change. It
will replace lost federal receipts, which the division had
hoped to use as part of the federal targeted case management
procedure. The federal government's Health and Human
Services, Centers for Medicare and Medicaid, have ratcheted
down the cost that states are able to claim under target
case management.
Sections 7-9 Health & Soc Services Probation Services
Court Ordered costs. Per legislative direction, these
costs are requested through supplementals instead of
being incorporated into the base budget. $221.0
Ms. Baker turned to court ordered costs for probation
services in juvenile justice. The request is for costs that
are outside the normal operating budget for the division.
Several years ago Senator Green suggested that the division
propose these costs as supplemental requests similar to the
Department of Law's judgments and claims. That has worked
out well for both the Administration and the legislature.
The estimated costs are for about $221,000 for the year,
similar to previous years' requests.
Sections 7-9 Health & Soc Services Women, Infants, and
Children
Increased SDPR from baby formula rebates. This
corresponds to the department's FY09 increment request
of $650.0. $852.3
Ms. Baker explained the increased Statutory Designated
Program Receipt (SDPR) authority for the Women and Infants
Program in Public Assistance. These are for infant formula
rebates.
10:14:40 AM
Sections 7-9 Health & Soc Services Certification &
Licensing
Increased authority to receive and expend fees
generated by background check applications. Originally
anticipated 16,000 to 18,000 applications; projected
increase is 12,000 applications from Foster Care and
Child Care employees. $945.0
Ms. Baker spoke of projected increases for receipt supported
services for the certification and licensing costs in the
background check unit. The background check unit is seeing
a higher level of requests than anticipated. Most of the
receipts get signed over to the Department of Public Safety
for the actual fingerprinting.
Sections 8-9 Health & Soc Services Alaska Psychiatric
Institute
Increased Third-Party payment receipts enabling the
department to save some general funds. This is
reflected in section 8, the departmental fund source
list. $0.0
Ms. Baker turned to a "delete/add" supplemental request due
to increased third-party payment receipts for the Alaska
Psychiatric Institute (API).
Sections 10-12 Health & Soc Services Capital
Psychiatric Institute Automation - Funding for
electronic records system and tele-behavioral health
evaluation and treatment system. The electronic
records system is partially funded with an existing
capital project with the remainder coming from the
operating budget. This system is used to track
important patient data and will provide API with
reliable funding and census information. API is moving
towards tele-behavioral health to allow psychiatric
evaluation and treatment of patients from remote
locations. $1,200.0
Ms. Baker explained the capital request related to statutory
designated program receipts for API. The funds would be
added to the current capital project that was funding the
electronic medical record system in order to add enhanced
modules for tracking nursing overtime to the system. This
could increase receipts and efficiencies at API.
10:16:37 AM
Section 14 Health & Soc Services Senior Benefits Payment
Program
Senior Benefits. SB 4, that passed in June 2007, does
not establish a flat rate, but sets rates from $100 to
$175 /month depending on household income. Maximum
income eligibility level is 150% of federal poverty
guidelines for Alaska. $18,492.1
Ms. Baker explained the request for the Senior Benefits
Payment Program. She thanked the legislature for passing SB
4 during the June special session. The Senior Benefits
Program replaced the Senior Care Program. The funds
requested reflect the estimate of the fiscal note prepared
during the special session. The projection is still on
track.
Sections 29(b)(1-4) Ratifications Health & Soc Services
Team Nutrition - $8,210.00
EMS Data Collection System - $9,488.71
Phase II EMS Data Collection - $5,533.25
IPEMS CPS Coordinator - $6,980.98
Ms. Baker clarified that the requests are related to a need
for legislative ratification for funds in the Division of
Public Health related to unbudgeted RSA's. In the
accounting system, the department had chosen to have an
administratively separate appropriation structure than the
normal operating for unbudgeted RSAs. During the year-end
closeout and after, there were some miscommunications and
timing issues and now there is a need for legislative
ratification. The programs in Public Health actually have
enough general funds to cover them, but there is no
administrative fix available without legislative approval.
Section 29(b)(5) Ratification Health & Soc Services
Medicaid Services - $25,141,116.00
Ms. Baker reported on the FY 06 ratification for Medicaid
Health Care Services. It relates to the federal government
turning down ProShare claims for grant refinancing. It is
important to note that with the ratification, the department
is carrying accounts receivable on the accounting system
because it was thought that the federal receipts would be
forthcoming. The payments have been made and once
ratification is approved, the receivable will come off.
There are also payments for Indian Health Services
referrals, which the federal government denied, and now
needs ratification.
Section 29(b)(6) Ratification Health & Soc Services
Medicaid Services - $4,350,407.00
Ms. Baker addressed the need for ratification regarding
Medicaid ProShare for a smaller amount in FY 07. Ms. Baker
emphasized that both the legislature and the Administration
were aware of the risk of ProShare refinancing.
Section 29(b)(7) Ratification Health & Soc Services
Health Care Services - $231,500.00
Ms. Baker explained the ratification request for the Women
and Adolescent Services component, which is a year-end
closeout issue. After the reappropriation period closed the
end of August, with federal revenues expected, it was
discovered that the federal receipts were over-collected
leading to a shortfall.
Co-Chair Stedman asked for more information about the
"backfill" of the previous items. Ms. Baker asked if he was
requesting information for all items. Co-Chair Stedman
replied yes. Ms. Baker explained that the Office of
Management and Budget is considering budget amendments for
FY 09 that will bring the Foster Care base rate and special
needs proposal, as well as the target case manage proposal
for Probation Services, in line. The requests for Youth
Facilities are already included in the FY 09 budget.
10:22:49 AM
Co-Chair Stedman pointed out that there were capital
requests in the supplemental budget which did not belong,
especially in light of the shortened session. Ms. Baker
noted that these requests would have an impact on current
department budget and management decisions. Ms. Baker
stated that the capital item for API is in the supplemental
because they have a contract to purchase the electronic
medical records and, without the additional funding, cannot
fully implement it. Co-Chair Stedman argued for having
accurate capital and operating budgets and a bare minimum in
the supplemental.
10:25:12 AM
Senator Elton referred to the Johnson Youth Center request
and asked why the language did not reflect that the funding
goes statewide to several youth facilities in the state.
Ms. Baker said that information is provided in the backup
material. Senator Elton thought it was deceptive because
the money is not for Juneau, as it appears.
Senator Elton asked a question about Probation Services. He
wondered what percentage of the budget the $600,000 request
for Targeted Case Management was. Ms. Baker replied that
that amount was expected in federal funds for juveniles who
were Medicaid eligible. She could not provide the specific
number, but thought it was about $1 million to $1.2 million.
Co-Chair Hoffman asked about the foster care base rate. He
wondered why there was a need for general funds, as well.
Ms. Baker responded that it is a combined proposal. The
case load is increasing, plus there is an increase in
receipts that cover state costs for children with parents
who are paying child support.
10:27:47 AM
Senator Olson asked who the community service providers were
now that ProShare was disallowed. Ms. Baker explained that
in FY 04, general funds were reduced in grant programs in
Behavioral Health, Seniors and Services Disabilities,
Children's Services, and Public Health. She offered to
provide a list of grantees in FY 08 that were covered by
ProShare funds. The budget reductions were taken in grant
programs, which sent the match over to the Medicaid programs
so that the 100 percent funding went out. Now that there
are no federal funds, those grant programs are no longer
fully funded at the previous service level. Senator Olson
asked if community health centers are included. Ms. Baker
said she would find out.
10:29:26 AM
Ms. Baker emphasized that the Senior Benefits item is a
time-sensitive item. Money has been borrowed from the Adult
Public Assistance Program. Without the supplemental, both
programs will run out of money at the end of the month. Co-
Chair Stedman thought that the legislature and the
Administration worked together during the special session to
take care of that issue, and it is reasonable to expect the
legislature to fund it. Co-Chair Hoffman explained that
there may be a cash flow problem. Ms. Baker agreed.
10:30:18 AM
Sections 7-9 Law Oil, Gas, and Mining
During FY2008 the Department of Natural Resources (DNR)
requested that Law allocate $3.0 million of Law's $21.5
million Oil, Gas, and Mining supplemental (Sec 1, Ch 6,
SLA07, Pg 1, Lns 4-6) to pay a contractor to do a
financial analysis of the TransCanada proposal to
evaluate that the state's financial interests are being
met. Law has entered into a Reimbursable Services
Agreement (RSA) with DNR to pay the costs of the
valuation expert.
The $3.0 million RSA'd to DNR was not included in the
costs Law anticipated at the time of the $21.5 million
request. Law is requesting that part of these funds be
replaced for their original purpose. Law is requesting
only $1,750,000 (and not the full $3 million) because
one large case recently settled and Law spent
$1,250,000 less than originally anticipated on that
case. $1,750.0
CRAIG TILLERY, DEPUTY ATTORNEY GENERAL, DEPARTMENT OF LAW,
explained the request. The Department of Law (DOL) received
a combination supplemental for FY 08 for oil and gas
projects including the oil and gas pipeline. Recently, an
unfunded need for approximately $3 million in order to do a
financial analysis of the gas pipeline proposals was
discovered. The DOL will enter into a Reimbursable Services
Agreement with the Department of Natural Resources in order
to facilitate the analysis. That leaves DOL with an
unfunded liability amount for regular oil and gas cases.
Since DOL is $1.25 million under budget, the request is for
only $1.75 million.
Section 25(a) Law Deputy Attorney General's Office
Judgments and Settlements. Amount is $587,910.81 as of
January 28, 2008. $588.0
Mr. Tillery explained that the request is for judgments and
settlements by the Superior Court or the Supreme Court and
all have been reduced from the original amount requested.
Section 25(b) Law Deputy Attorney General's Office
The amount necessary for additional judgments awarded
on or before June 30, 2008 is appropriated. $0.0
Mr. Tillery spoke about additional judgments awarded.
Section 25(e) Law Human Services & Child Protection
Native Village of Curyung v. State DHSS, Office of
Children Services
This is a complicated case involving four tribes suing
the state over alleged violations of various state and
federal laws. the Department of Law estimates that
there are roughly 120 children who are part of this
case. It is anticipated that litigation and/or trial
costs are expected to be at least $200.0 in FY08 with
another $300.0 needed in FY09, so an extended lapse
date through June 30, 2009 is requested. $500.0
Mr. Tillery discussed the law suit regarding the Native
Village of Curyung v. State Department of Health and Social
Services, Office of Children's Services. The tribes are
suing the state over alleged violations of state and federal
laws and involving about 20 children. DOL is asking for
$500,000 with the anticipation that $200,000 would be
expended in FY 08 and $300,000 in FY 09.
10:34:42 AM
Section 25(c) Law Administrative Services
Unpaid FY06 bills. Contractor was very late in
submitting final bills to Law. Bills were submitted in
May/June of 2007 so they were not included in the FY06
supplemental for Law. The actual amount in hand as of
January 28, 2008 is $3,109.36. $3.1
RICHARD SVOBODNY, DEPUTY ATTORNEY GENERAL, CRIMINAL
DIVISION, DEPARTMENT OF LAW, addressed the request to pay
bills received from FY 06 from a murder case.
Section 25(d) Law Criminal Division
Additional federal authorization is needed for the U.S.
Department of Justice, Office of Violence Against Women
grant to "Encourage Arrest Policies and Enforcement of
Protection Orders" for $937,000, as allocated below.
The grant term is for 15 months, so a lapse date of
June 30, 2009 is requested. Second Judicial District -
$127.8 Third Judicial District: Anchorage - $399.2 and
1 new PFT (Paralegal) Fourth Judicial District - $410.0
and 2 new PFTs (Attorney and Paralegal). $937.0
Mr. Svobodny explained the request for authorization to
spend $937,000 the state received in a grant to the Office
of Violence Against Women to encourage arrest and to enforce
protective orders. It funds positions in the Second, Third,
and Fourth Judicial Districts. The primary focus is for
funding a half-time paralegal in Barrow, a paralegal in the
prosecution unit, and a position in the Office of Special
Prosecution and Appeal.
10:36:44 AM
Senator Elton asked why the First Judicial District is not
included in the grant. Mr. Svobodny responded that there
was no particular reason. The Rural Prosecution Unit has
spent a lot of time in Southeast Alaska due to three murder
trials. The money comes to the area, but the people are
physically located in Anchorage. Senator Elton requested
more information about why the district was left out of
grant funding. Mr. Svobodny agreed to do that.
Co-Chair Stedman concurred that it was odd that the First
Judicial District was not included.
Co-Chair Stedman asked about expectations regarding
judgments against the state. Mr. Tillery replied that those
appropriations have been taken care of through the
supplemental budget. He explained the process and the
advantages of timely settlements.
10:40:05 AM
Senator Huggins asked about DOL's request for money to pay a
contractor to do a financial analysis of the TransCanada
proposal to evaluate if the state's financial interests are
being met. He wondered if this information was available to
the legislature.
LETA SIMONS, DIRECTOR, DIVISION OF SUPPORT SERVICES,
DEPARTMENT OF NATURAL RESOURCES, explained where the state
is at in the AGIA evaluation process. The professional
contractors are being hired for risk analysis and financial
analysis. She related that the reports would be made
available. Senator Huggins requested that it be done in a
timely manner.
10:41:53 AM
Co-Chair Hoffman asked if $21 million was appropriated for
that purpose. Mr. Tillery said that was correct; however,
this item was not anticipated. Other than that, the budget
is holding up well.
Co-Chair Stedman asked DOL to separate gas line endeavor
expenses from taxes and royalty collections in order to keep
track of expenditures directed toward the gas line and of
tax and royalty issues. Mr. Tillery agreed.
Co-Chair Stedman mentioned a letter dated February 6
requesting that be done.
10:44:01 AM
Sections 7-9 Natural Resources Oil & Gas
Cost to implement ch.1, SSSLA 2007 (HB 2001) Alaska's
Clear and Equitable Share legislation. Add two Oil &
Gas Revenue Audit Master exempt positions. The amount
is reduced from the original fiscal note due to later
than anticipated hiring of the positions. The FY09
budget contains a related increase of $303.5. $110.0
Ms. Simons continued with an explanation of the request for
$110,000 to implement the ACES fiscal note regarding two Oil
and Gas Revenue Audit Master exempt positions. The amount
has been reduced from the original fiscal note in
anticipation that the positions won't be filled until April
1. The FY 09 budget also contains the related increase for
the positions.
Sections 7-9 Natural Resources Fire Suppression Preparedness
Letter of Grievance Resolution over Implementation of
the Forest Technician Class Study. This supplemental
request funds a Letter of Grievance Resolution between
the State and the Alaska State Employees Association
(ASEA) related to step placement of employees during
implementation of a classification study for Forestry-
specific job classes. The retroactive operating costs
for 20 Wildland Fire Dispatcher positions is $47.5 for
FY07, and current-year FY08 costs are $61.7, resulting
in this supplemental request of $109.2. A
corresponding FY09 budget amendment of $61.7 will be
requested. $109.2
Ms. Simons explained that the request is for a Letter of
Grievance Resolution between the state and ASEA over
implementation of the Forest Technician Class Study.
Sections 10-12 Natural Resources Capital
Eagle River Nature Center Planning and Design Study
$117.2
Ms. Simons turned to a capital request to collect statutory
designated program receipts from the Friends of Eagle River
Nature Center which have received HUD funding. The
Department of Natural Resources is requesting the money in
order to start on the design and construction portion of the
project.
10:45:42 AM
Section 29(a) Ratification Natural Resources
Fire Suppression Activity - $7,055,162,87
Ms. Simons talked about a request for ratification for FY 07
for fire suppression activity.
Co-Chair Stedman asked about why the request regarding the
Letter of Grievance Resolution was not included in the
operating budget. Ms. Simons responded that they were
services that took place in FY 07 and FY 08. Co-Chair
Stedman thought it should be moved to the operating budget.
Ms. Simons replied that the operating budget only deals with
FY 09 expenses.
Co-Chair Stedman asked what hardship would occur if the
request regarding the Eagle River Nature Center was moved to
the capital budget. Ms. Simons reported that DNR was asked
to expedite the item in order to get the design started as
soon as possible due to the expiration date of the HUD
funding. Co-Chair Stedman maintained that it should go into
the capital budget. He emphasized that the legislature
needs to make the budget more transparent and not include
items of convenience.
10:49:14 AM
Senator Olson spoke to the same item. He wondered if there
was a deadline for the funding obtained by the Friends of
Eagle River Nature Center. Ms. Simons talked about the
timeline for completion of the Center and the HUD grant
expiration date. Senator Olson asked how long the group has
known about the deadline. Ms. Simons replied that the
department was informed in November.
10:50:13 AM
Sections 8-9 Education Student and School Achievement
Correction of late session transactions for TRS
solution that erroneously cut the component twice for
the GF reduction desired. This is reflected in section
8, the departmental fund source list. $0.0
Sections 8-9 Education Head Start Grants
Correction of late session transactions for TRS
solution that erroneously cut component twice for the
GF reduction desired. This is reflected in section 8,
the departmental fund source list. $0.0
Sections 8-9 Education Mt. Edgecumbe High School
Correction of late session transactions for TRS
solution that erroneously cut component twice for the
GF reduction desired. This is reflected in section 8,
the departmental fund source list. $0.0
MARK LEWIS, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
EDUCATION AND EARLY DEVELOPMENT, turned to the adjustment of
funding related to the Teachers' Retirement System (TRS)
within the Student and School Achievement, Head Start, and
Mt. Edgecumbe High School components. These transactions
inadvertently removed general funds from the base numbers.
The supplemental items correct the transactions and the
associated funding sources.
Section 22 Education School Performance Incentive
If the amount necessary to pay school performance
incentives exceeds the amount appropriated for FY08,
the additional amount necessary is appropriated. The
department won't know the final amount until after the
legislature has adjourned. Similar language is
included in the FY09 operating budget. $0.0
Mr. Lewis spoke about the School Performance Incentive
Program which was established under AS 14.03.126 as a three-
year pilot program. It is currently in the second year with
a budget of $2.5 million. The FY 08 budget request was
originally for $5.8 million, but it was reduced during the
last session by $3.3 million. As a new program, actual
costs cannot be projected with total accuracy. The finance
subcommittees recommended reviewing this request in the FY
09 budget cycle. This language section provides the
mechanism to fund this pilot program in order to distribute
the awards as intended within established statutory limits.
The estimated additional funding required is projected to be
$1.6 million.
10:52:42 AM
Section 23 Fish and Game
Carry forward of federal indirect cost plan receipts to
include the FY07 unexpended and unobligated balance.
Similar language is included in the FY09 budget. $0.0
TOM LAWSON, DIRECTOR, ADMINISTRATIVE SERVICES, DEPARTMENT OF
FISH AND GAME, explained the language section that fixes a
cash flow issue to allowing unspent revenue to be carried
forward. It would allow the indirect revenue to more evenly
be spread between fiscal years.
Senator Huggins asked what the process would be to re-
install a fish weir that had been cut from the budget. Mr.
Lawson said efforts were being made to cover that cost as a
capital budget item or by re-arranging existing revenues.
Senator Huggins requested more information about the
decision cycle.
Co-Chair Stedman asked Mr. Lawson to comment on the federal
fund withdrawal of $7.5 million out of the operating budget.
Mr. Lawson explained that the federal FY 08 budget was
passed in January with cuts to NOA. He reported that the
Department of Fish and Game was communicating with OMB as to
how to address that. He noted that the Governor's budget
would address those issues.
10:56:56 AM
Section 24 Labor Commissioner's Office
The $850.0 fiscal note for ch. 22, SLA 2007 (HB 177,
AGIA) was appropriated in sec. 2, ch. 28, SLA 2007,
page 44, line 22. The department will not spend the
entire amount in FY08, therefore they request that the
lapse date be extended through June 30, 2009 in order
to complete the work with the estimated balance of
$250.0. $0.0
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, discussed a request to extend a fiscal note
appropriation for developing the training required under
AGIA. The initial report on phase one will be released this
week.
10:59:01 AM
Section 16 Governor Elections
This request includes $278.2 GF and $120.1 in HAVA CIP
Rcpts for personal services for three new base
operating positions and 26 temporary positions needed
for petitions processing relating to the FY09 primary
election ballot. Contractual includes $76.4 in
printing, forms and training costs relating to the
upcoming statewide primary election; $10.9 one-time
costs for Deltana incorporation, $12.0 for Wrangell
incorporation, and $6.0 for REAA #18 recall elections;
$20.0 for legal costs relating to the Nick case; and
increased base operating costs of $7.0 for postage,
$23.5 for maintenance and licensing increases, and
$30.1 for office and storage space increased lease
costs. The base operating increases in personal
services and contractual are included in the FY09
operating budget request. $0.0
GAIL FENUMIAI, DIRECTOR, DIVISION OF ELECTIONS, OFFICE OF
THE LIEUTENANT GOVERNOR, explained a request which deals
with election funding. The division has seen an increased
work load over the years and new staff is needed.
Additional funds are being requested for contractual items
and increased costs.
Senator Huggins asked how many total positions there would
be, including the three new ones. Ms. Fenumiai replied that
there would be a total of 33 permanent, full-time positions,
including some that are funded with federal funds.
RECESSED: 11:02:07 AM
The meeting was recessed at 11:02 AM until 9:00 AM on
February 12, 2008.
RECONVENED: 9:01:55 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
introduced Dan Spencer from the Department of Public Safety.
9:02:54 AM
Sections 7-9 Public Safety Fire Prevention Operations
RSS shortfall from building plan review fees. Division
would like to make this into a straight GF operation
since revenues vary drastically. Included in the FY09
budget at the same level of $220.0 Additional travel
of $50.0 for building life safety inspections and to
provide inspections in rural locations. Funded in FY09
at $105.0. Increased fuel/utility $8.3 and vehicle
$4.8 costs. FY09 fuel/utility cost increment is $4.5.
$281.3
DAN SPENCER, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES,
DEPARTMENT OF PUBLIC SAFETY, referred to three basic
categories of cost increases: fuel and utility, vehicle
operation and replacement, and leases. There has been a
high vacancy rate in uniform positions and new positions
have been added. The Department of Public Safety has been
able to absorb cost increases until now.
9:05:00 AM
Mr. Spencer acknowledged success with the new Alaska State
Trooper Academies. All positions will be filled that are
currently vacant. A number of cost increases have been
absorbed over the years which now require back filling.
Mr. Spenser explained the largest requests needed to fund
fire prevention operations: an anticipated revenue shortfall
and money for increased travel for safety inspections in
rural communities.
Mr. Spencer continued to explain that municipal governments
can hold their own building plan reviews and the department
would not get that revenue. At this point, the shortfall is
about $220,000.
9:09:42 AM
Sections 7-9 Public Safety Fire Service Training
Increased fuel/utility $8.3 and vehicle $9.4 costs.
FY09 fuel/utility cost increment is $9.6. $17.7
Mr. Spencer explained the request for additional funds for
Fire Service Training due to increased fuel and utility
costs.
Sections 7-9 Public Safety Alaska State Troopers/Special
Projects
Replace federal Rural Alcohol Interdiction Team funds
for part year. Fund change is included in FY09 in the
amount of $870.0. $150.0
Mr. Spencer related that the request is to replace federal
Rural Alcohol Interdiction team funds.
Sections 7-9 Public Safety Judicial Services - Anchorage
Assume Anchorage prisoner transport duties. Assumes
December 2007 hire date for six new positions. Covers
one-time purchases and share of annual expenses. If
one-time costs are not funded here, additional funds
will be needed in FY09. In the FY09 budget at $656.3
for a full year's costs, but that does not include one-
time costs. $620.3
Mr. Spencer reported that several years ago the state and
Anchorage entered an agreement regarding prisoner transport
duties. The request is for hiring six new positions and
beginning to transport prisoners. This line may be reduced
if not all positions are hired.
9:11:16 AM
Sections 7-9 Public Safety Prisoner Transportation
Increased prisoner transports costs. FY09 increment is
in the same amount. $455.0
Mr. Spencer noted that the request is due to increased
prisoner transport costs.
Sections 7-9 Public Safety Rural Trooper Housing
Rural housing costs of $244.2 due to unrealized SDPR
including leases without rent contribution at Selawik
and for Bethel commons. Increased fuel and utility
costs of $92.7. FY09 fuel/utility cost increment is
$147.1. $336.9
Mr. Spencer referred to the request for housing for troopers
in rural communities. When housing is left vacant no
revenue is coming in for the department. This request also
covers increased fuel and utility costs.
Sections 7-9 Public Safety AST Detachments
Increased trooper move costs $425.0, dispatch contracts
with Kodiak and Wasilla (MatCom) $420.3, lease costs
$60.6, fuel/utility costs $236.2, vehicle costs $610.9,
and facilities maintenance costs $25.5. FY09
increments are: trooper move travel $425.0; lease
$60.6; fuel/utility $164.9; and vehicle $113.9.
$1,778,5
Mr. Spencer explained the increase in rural trooper transfer
costs and dispatch contracts.
9:13:38 AM
Sections 7-9 Public Safety Alaska Bureau of Investigation
Increased lease costs. No corresponding FY09
increment. $17.5
Mr. Spencer continued to explain increased lease costs for
the Alaska Bureau of Investigation.
Sections 7-9 Public Safety Alaska Wildlife Troopers
Increased fuel/utility $70.8, vehicle $288.6 and
facilities maintenance $17.1 costs. FY09 increments
are: fuel/utility $38.6; vehicle $145.3. $376.5
Mr. Spencer addressed the increase in costs for the Alaska
Wildlife Troopers.
Sections 7-9 Public Safety AK Wildlife Troopers Aircraft
Enforcement
Increased fuel/utility $70.8, vehicle $288.6 and
facilities maintenance $17.1 costs. FY09 increments
are: fuel/utility $38.6; vehicle $145.3. $174.5
Mr. Spencer mentioned Alaska Wildlife Troopers Aircraft
Enforcement and the increased fuel, utility, and lease
costs.
Sections 7-9 Public Safety AK Wildlife Troopers Marine
Enforcement
Increased fuel/utility costs. FY09 increment is $66.0.
$41.6
Mr. Spencer explained the Alaska Wildlife Troopers Marine
Enforcement increases in fuel and utility costs.
Sections 7-9 Public Safety Domestic Violence/Sexual
Assault
CDVSA received an unanticipated Rural Domestic Violence
and Child Victimization (RDVCV) grant in October 2007.
The majority of projects from another federal grant
(GTEA) fell into FY08 as well, leading to a shortfall
in federal authority. $230.0
Mr. Spencer noted the shortfall in federal authority
regarding grants.
9:14:58 AM
Sections 7-9 Public Safety Training Academy
Increased fuel/utility $5.2 and vehicle $11.6 costs.
FY09 increment for fuel/utility costs is $8.2. $16.8
Mr. Spencer noted increased fuel and utility costs for the
Training Academy.
Sections 7-9 Public Safety Administrative Services
Increased fuel/utility $2.6, lease $9.2, and vehicle
$2.2 costs. FY09 increment is $9.2 for office lease
costs. $14.0
Mr. Spencer noted increases in Administrative services
costs.
Sections 7-9 Public Safety Alcoholic Beverage Control
Board
Increased vehicle costs. FY09 increment is $1.9. $4.3
Mr. Spencer pointed to increased costs to the ABC Board.
Sections 7-9 Public Safety Laboratory Services
Increased fuel/utility $15.5 and vehicle $8.9 costs.
FY09 increments are: fuel/utility $21.0 and vehicle
$4.3. $24.4
Mr. Spencer noted increased costs for Laboratory Services.
Section 29(b)(8) Public Safety Ratification
Alaska Fire Standards Council - $71.01
Mr. Spencer concluded with a ratification of $71.01 for a
typographical error.
9:15:57 AM
Co-Chair Stedman requested more information about prisoner
transportation duties and costs in Anchorage. Mr. Spencer
elaborated on the high volume business of the transportation
of prisoners in Anchorage. He offered to provide the
settlement agreement to the committee.
Co-Chair Stedman pointed out that the funds do not include
transporting prisoners to Arizona. Mr. Spencer said that
the second request does include transporting prisoners to
other states. All forms of transportation are on the
increase.
Co-Chair Stedman thought there was a need to look at the
flight service issue. There is a need for more information
on transportation issues.
Senator Olson noted the request for $1,750,000 for prisoner
transportation costs in the supplemental budget. He asked
what was requested in the regular budget.
9:20:32 AM
Mr. Spencer said that $2.1 million was requested in the
budget.
Senator Elton added that Anchorage prisoner transportation
costs are in addition to the $4 million already budgeted for
Anchorage prisoners. He termed the supplemental request a
small part of the subsidy the state is providing to
Anchorage.
Mr. Spencer did not know what the Department of Corrections
charges were.
Senator Elton wondered why the Department of Corrections
personnel were able to transport prisoners cheaper than the
Department of Public Safety personnel. Mr. Spencer could
not comment on the cost difference. Senator Elton thought
that issue should be looked into. Mr. Spencer said that the
duties of a Department of Corrections Transportation Officer
differ from that of a Court Services Officer.
9:22:56 AM
Senator Dyson said he has heard that Village Public Safety
Officers want more backup. He questioned what would be the
appropriate number of state troopers. He offered the idea
of 10 more hires and a 10 percent pay increase. He
requested input from the department on that idea and what it
would cost.
Co-Chair Stedman questioned the requests for supplemental
money for utility costs and lease costs. He wondered why
those were not in the regular operating budget.
9:25:26 AM
Mr. Spencer reiterated that the department was able to
forestall requesting money in the past because of vacancies,
but now the department plans to fill all positions and new
costs have emerged.
Co-Chair Hoffman referred to the 34 dispatch contracts with
Kodiak and Wasilla. He wondered if the contracts were with
the cities. He pointed out that Bethel has been requesting
similar contracts and providing services to the troopers.
Bethel has been absorbing those costs, which they feel
should be paid by the state. The state has been unwilling
to do this. He questioned if there was a double standard.
Mr. Spencer said he was not familiar with Bethel's requests.
He reported that other communities have asked for increases
and the department is working with those communities. He
offered to research that information.
9:28:27 AM
Senator Olson requested more information about the increase
of $425,000 in moving costs. Mr. Spencer replied that
moving cost increases have accumulated over the years. The
department pays for moving officers around the state and for
household goods up to 15,000 pounds. The cost of moving has
gone up all over the state.
Senator Olson disagreed with the department's practice of
filling the budget with vacancies.
He commented that a lot of alcohol was still getting through
to the villages. He questioned if there was a way to
measure the effectiveness of the Rural Alcohol Interdiction
Team funds. Mr. Spencer reported that the interdiction
efforts are showing good results. He offered to provide
that information to the committee.
9:32:13 AM
Mr. Spencer addressed the concern about absorbing vacancies
savings to pay for other items, and he assured the committee
that the department was making every effort to fill the
positions, trooper as well as support positions. Co-Chair
Hoffman recommended the department look at other ways to
save money. Mr. Spencer wanted to start the year with the
intent to fill positions and when they are not filled, the
department would go to a revised plan. He emphasized that
the department is not trying to conceal anything.
9:35:39 AM
Senator Olson questioned how much of the CDVSA money will go
to shelters. Mr. Spencer replied that all of it would.
Senator Olson requested a full list of how the money is
allocated.
Senator Olson inquired about when the six recommendations
for the VPSO Task force, especially the community stipends
and pay raises, might be implemented. Mr. Spencer replied
that he has not met with the commissioner yet and does not
have an answer right now, but he offered to get back to the
committee on it.
Senator Olson asked if there is a carry over for this fiscal
year for the VPSO program. Mr. Spencer thought there was
probably some money left over. In the past there were
several federal appropriations to increase the number of
VPSO's, but now the state is not able to spend that money
because of federal rules. Mr. Spencer remarked that
recently more than $5 million has been freed up to increase
the number of VPSO's. Senator Olson understood that there
was about a $1 million carry over and he requested that it
be implemented as soon as possible.
Senator Dyson underscored the suggestion to regularly review
existing mission statements in statute and the mechanisms
for effectiveness of programs.
9:40:10 AM
Sections 7-9 Revenue Tax Division
Implementation of Tax Division's fiscal note for
Chapter 1, SSSLA 2007 (HB 2001), which passed during
the second special session in 2007 absent an
appropriations bill. Beginning in January 2008, the
department will begin incurring costs to immediately
implement the new production tax structure. These
costs include: Personal services - $275.8 for the new
exempt class of oil and gas revenue auditors and an
additional analyst programmer; Supplies - $6.0 for
analyst programmer's computer and software; Contractual
- $506.6 for audit assistance. $788.4
JERRY BURNETT, DIRECTOR, DIVISION OF ADMINISTRATIVE
SERVICES, DEPARTMENT OF REVENUE, referred to the
implementation of the fiscal note for the ACES legislation,
HB 2001. The bill was effective on December 20, 2007, so
some of the contracting services for audit assistance have
already been expended. The positions have not yet been
hired. The expense represents between three and four months
of personal services costs.
Sections 7-9 Revenue Treasury
Investment management services for the Retiree Health
Insurance Major Medical Fund. Management costs are
increasing as the assets under management are growing
(35.9% in FY2007 from $152.4 to $207.1 million). $15.0
Mr. Burnett reported the need for additional funds for
investment management services for Retiree Health Insurance
Major Medical Fund due to increased management costs.
Sections 7-9 Revenue Alaska Housing Finance
Corporation
4% wage increase and health insurance increase of
$28.78 from $851 to $879.78 $1,262.0
Mr. Burnett addressed the 4 percent wage increase and health
insurance increase for AHFC employees, which mirror the
general government unit pay increases.
Sections 7-9 Revenue AHFC
Wage and health insurance increase fund source switch
to 100% Corp Rcpts. $0.0
Mr. Burnett said that this item is a switch from $417,000 in
federal funds to other funds. AHFC recognizes their federal
funds as corporate receipts.
9:42:32 AM
Sections 7-9 Revenue Permanent Corporation
Custody Management Fees $6,000.0
Mr. Burnett overviewed the $6 million custody management
fees for the Permanent Fund Corporation. Those are based on
increased costs for certain asset allocations based on
expected increases on fund balance. Anything not spent will
revert to the Permanent Fund.
Section 17(a) Debt: Fund Capitalization Oil and Gas
Tax Credit Fund
Increased oil and gas tax credits from $25 million that
was appropriated in the FY08 budget to an updated
estimated maximum need of $150 million. The new oil and
gas tax credit fund was established in ACES for these
credits. $125,000.0
Mr. Burnett reported on the debt fund capitalization of the
oil and gas tax credit fund to pay for refundable credits
created in HB 2001.
Section 17(b) Debt: Fund Capitalization Oil and Gas
Tax Credit Fund
Reappropriate the balance of the $25 million tax credit
appropriation to the new Oil and Gas Tax Credit Fund
that was created by ACES. The Department of Revenue
expects a balance of approximately $4.2 million. $0.0
Mr. Burnett noted that this item is a reappropriation of the
balance of the $25 million general fund appropriation for
tax credits in the FY 08 budget. The department expects a
balance of about $4 million by the time the bill passes.
Section 18(a) Debt: Reimbursement Jail Construction
Reimbursement
Reimbursement to the Municipality of Kodiak for
expansion of the Kodiak jail. Kodiak will start
construction this season, but can't finalize contracts
without secured funding. This reimbursement is per Ch.
160 (SB65), SLA 2004. $2,000.0
Mr. Burnett related that the jail construction reimbursement
in matching funds to Kodiak comes from an authorization in
SB 65.
Section 18(b) Debt: Debt Reimbursement Jail Construction
Reimbursement
Reimbursement of design and site selection costs of the
Pt. Mackenzie Correctional Center to the Matanuska-
Susitna Borough through AHFC. $2,500.0
Mr. Burnett explained the jail construction reimbursement
for the Mat-Su Borough through AHFC. It was intended that
these costs be financed in the bond sale.
Section 19 Revenue AHFC
Correct the bond authorization citation in sec.
8(b)(2), ch. 28, SLA 2007, page 65, line 20, from ch.
2, SSSLA 2002, the FY03 GO Bond bill, to ch. 1, SSSLA
2002, the FY03 capital budget bill. The AHFC bonds
were authorized in sec. 1, page 46, of the capital
budget bill. $0.0
Mr. Burnett reported that this is a technical language
change.
9:45:36 AM
Section 28(b) Debt: Debt Service GO Bonds
On April 15, 2003 the state issued the series 2003 A
(Education and Museum and regular transportation) and
2003 B (Accelerated Transportation) general obligation
bonds. These bonds did not incur any positive arbitrage
in the first three years of the funds' lives. On April
15, 2006 (the three-year anniversary) the funds
remaining in the project accounts became subject to
yield reduction payment based on the arbitrage yield
limit plus 1/8 of a percent, which is 3.96266299 in
this case. From April 15 to November 30 there have been
earnings that correlate to a $1.5 million liability.
Extrapolating this amount forward to the five-year
computation date of April 15, 2008, there might be as
much as $4 million in yield reduction due within 60
days of the computation date (June 14, 2008). A
supplemental to appropriate up to $4 million in
earnings of the 2003 A and B bond proceeds to be paid
from the funds based on actual liability generation is
necessary to pay the yield reduction payment that is
expected to be due in FY2008. $4,050.0
Mr. Burnett concluded by explaining the general obligation
for miscellaneous earnings for an arbitrage payment to the
IRS based on expected excess earnings on bond proceeds being
held from 2003 education, museum, transportation, and
accelerated transportation bonds. This liability is
expected when calculations are done in June.
9:46:34 AM
Co-Chair Stedman requested more information on why that was
a time-critical issue, if the conclusion will be made in
June.
Mr. Burnett reported that the calculation will be done on
June 14 and the payment must be done within 60 days of that
date. The money is for FY 08 and before, so the payment
should not be in the FY 09 budget. Co-Chair Stedman agreed
it was important to keep the fiscal years lined up.
Co-Chair Stedman wondered if that concept applied to the tax
credits for the oil and gas tax credit fund. Mr. Burnett
replied that for those the state expects to pay about $21
million prior to the end of April. Between the annual tax
filing date and the end of the fiscal year, there will be a
number of claims calculated and certificates issued and
paid. Without this supplemental appropriation, the state
would be paying for FY 08 earned tax credits. The amount of
$125 million would be used between April and August.
9:48:52 AM
Co-Chair Stedman noted that the credits were a new
mechanism. He questioned if, in the future, these credits
could be fully funded in the regular operating budget with a
balance carry forward at the end of the fiscal year. Mr.
Burnett affirmed they would be fully funded in each budget
cycle, with the hope of no shortfall.
Co-Chair Hoffman requested a further breakdown of the
numbers in order to get a clearer picture of each fiscal
year. Mr. Burnett clarified that valid FY 08 bills are paid
up through August 31.
9:51:10 AM
Senator Huggins asked if the debt reimbursement request for
jail construction was in last year's budget. Mr. Burnett
replied that originally there was $28 million in the budget
which was vetoed. There was money left in the budget - bond
proceeds - to pay for this; however, the bonds have not been
sold, which is why this is a general fund. Senator Huggins
emphasized that the money that was vetoed could have been
used against this debt. Mr. Burnett agreed, had the money
been real. It was an authorization to use bond proceeds
which could not have been sold.
Co-Chair Hoffman believed that in SB 65 the intent was for
the municipalities to pay for the construction of jails.
The state would then contract with the municipalities once
the facilities were built. The two supplemental
appropriations appear to be grants to the municipalities.
He wondered if the appropriations follow the intent of SB
165.
9:53:26 AM
Mr. Burnett believed they did. He said that the one to
Kodiak was meant to be a grant. He explained the expense
involved with the COP issue. Co-Chair Hoffman suggested it
could be wrapped into a larger COP. Mr. Burnett clarified
Kodiak's plan. Mat-Su costs can no longer be financed. Co-
Chair Hoffman replied that he was co-sponsor of SB 165 and
needed to look at other municipalities' requests for COP's.
AT EASE: 9:55:24 AM
RECONVENED: 10:45:49 AM
ADJOURNMENT
The meeting was adjourned at 10:46 AM.
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