Legislature(2007 - 2008)SENATE FINANCE 532
03/18/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB310 || HB312 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 310 | TELECONFERENCED | |
| += | HB 312 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 18, 2008
9:13 a.m.
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee meeting
to order at 9:13:06 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
None
ALSO PRESENT
David Teal, Director, Legislative Finance Division; Karen
Rehfeld, Director, Office of Management and Budget
PRESENT VIA TELECONFERENCE
None
SUMMARY
CSHB 310(FIN) am
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date."
CSHB 310(FIN) am was heard and HELD in Committee for
further consideration.
CSHB 312(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
CSHB 312(FIN) was heard and HELD in Committee for
further consideration.
9:14:01 AM
CS FOR HOUSE BILL NO. 310(FIN) am
"An Act making appropriations for the operating and
loan program expenses of state government, for certain
programs, and to capitalize funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date."
CS FOR HOUSE BILL NO. 312(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained the ten changes in the language sections of the
bill. The first change is to intent language, Section 4(b),
whose purpose is to encourage agencies to use carry forward
before they use general funds. That language was softened
after a discussion with Office of Management and Budget and
agencies. The language change is now incorporated.
Mr. Teal addressed Section 11(a) as reported by Senator
Huggins in the Education subcommittee report. The school
performance incentives were revised downward from $4.8
million to $2.5 million for FY 09.
Mr. Teal described new Section 12. In the Department of
Environmental Conservation budget there was a $1.5 million
appropriation regarding state primacy on the pollution
discharge elimination program. That was moved from Section
1, the numbers section, and put into the language section,
Section 12, in order to add a contingency saying that the
$1.5 million appropriation was effective only if the state
took full authority from the federal government for
administering and enforcing the pollution discharge
elimination program.
9:16:11 AM
Mr. Teal explained that in Section 16(b) a duplicated
appropriation of $213,000 was moved to the Department of
Natural Resources in a contract with Bureau of Land
Management. The amount of $213,000 remains in the numbers
section as part of a three-year contract.
Mr. Teal reported that there is a new Section 16(b), which
incorporates an amendment made in the House adding $523,000
to the pipeline for the petroleum systems integrity office.
Mr. Teal stated that Section 22(u) increased the revenue
sharing amount from $50 million per year to $60 million per
year. Section 22(v) restored a $45,000 deposit to the bulk
fuel revolving loan fund that was omitted in the House.
Mr. Teal reported that the final change was in Section 22(b)
where a clause in a sentence relating to a payment of
restitution was moved after a discussion with the Department
of Law. There was concern about clarity of language.
9:18:25 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
noted several areas of concern by the Administration.
She brought attention to the bargaining unit agreements.
The supervisory agreement was forwarded to the Senate
Finance Committee the end of February. There is a total of
$17 million requested for the supervisory bargaining unit
and $10.8 million of that is general funds. She noted it
would be helpful to have that incorporated into the Senate
operating budget.
In addition, there are two bills currently in the
legislature to address salary for non-covered employees.
Ms. Rehfeld requested consideration of incorporating those
funds, the $18.3 million total, $13.9 of general funds,
contingent upon the passage of the employee bill that is
moving through the legislature.
Ms. Rehfeld alerted the committee about receiving an
agreement with the Alaska Vocational Technical Center (AVTC)
bargaining unit. It involves a very small group of
employees at AVTC in Seward at a cost of about $100,000.
She related that a formal amendment would be forthcoming.
9:20:12 AM
Ms. Rehfeld addressed the request for general funds for an
energy coordinator for the Alaska Energy Authority, which
does not have a general fund appropriation, but rather has
contracted with AIDA for this position. The request is for
a $200,000 general fund appropriation which has not yet been
incorporated into the budget.
Ms. Rehfeld turned to an item in the Senate CS under the
Department of Education and Early Development for $300,000
for the Student Data System. The system was developed with
federal dollars and on-going maintenance would be up to the
state to fund. The Department had requested $610,000.
There is currently no funding for this item in the House
version of the budget. Ms. Rehfeld requested an increase in
the amount to the original request.
9:21:28 AM
Ms. Rehfeld reported on minor changes to the new branch-wide
oil and gas appropriation that the legislature has been
working on. She requested consideration of an appropriation
for $6.1 in the Department of Law regarding on-going
litigation and $1 million for oil and gas royalty valuations
under the Department of Natural Resources. She recommended
three areas in the Department of Labor and Workforce
Development to be included in the branch-wide appropriation.
She noted that an amendment to that effect would follow.
Ms. Rehfeld brought attention to discussions related to the
elimination of funding for staff support for Faith Based
Initiatives. She requested consideration for restoration of
those funds.
9:23:17 AM
Ms. Rehfeld turned to a concern in another area under the
Department of Health and Social Services - Public
Information Office. Outreach to Alaskans about health and
safety concerns is a key responsibility of the Department.
There is a significant reduction in both versions of the
budget for this area. She requested the committee's
consideration of this item.
Ms. Rehfeld reported on reductions in the Department of
Public Safety. These reductions could potentially put the
Department at risk of needing a supplemental in FY 09 in the
areas of personal services regarding wildlife management
personnel and state troopers. There are also costs related
to state trooper vehicles and prisoner transport.
9:24:31 AM
Ms. Rehfeld addressed the requests in the Department of
Transportation and Public Facilities. The commissioners of
Labor and Transportation have worked together on an
apprenticeship program which is currently not funded in the
budget. She requested reconsideration of that program, for
costs of sodium chloride for winter road maintenance, and
for funding expanded runway maintenance at the Bethel
airport.
She concluded that the University of Alaska also has
amendments pending.
9:26:13 AM
Senator Dyson asked if the new negotiation contracts in the
Governor's budget were accurate. Ms. Rehfeld reported that
there was a place holder for them, but the estimate was
probably a little low for the Supervisory Unit and for the
non-covered employees. The other large bargaining unit is
PSEA and that information is not available yet. Senator
Dyson concluded that the Governor's office did a good job of
predicting what the settlements would be. He asked what
costs were not covered in the current Senate budget. Ms.
Rehfeld thought the budget did not include anything for non-
covered employees or for the Supervisory Unit. The non-
covered's could be in a fiscal note, but it would be cleaner
to incorporate those items into the operating budget.
9:29:07 AM
Senator Dyson commented that there are problems with wages
and benefits not being competitive and with attracting
quality employees. He thought there was a plan to rectify
those problems. He wondered if the Administration's
preference was to fund employee salaries and benefits based
on what is now known, and if that is not done, there may be
a need for a supplemental budget. Ms. Rehfeld responded
that the Administration's preference would be to fund with
regard to what is currently known. Those items still in
question would have to be dealt with in a supplemental
budget next year.
AT-EASE: 9:30:34 AM
RECONVENED: 9:31:01 AM
ADJOURNMENT
The meeting was adjourned at 9:31 AM.
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