Legislature(2011 - 2012)SENATE FINANCE 532
01/23/2012 09:00 AM Senate FINANCE
| Audio | Topic |
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| Fy 13 Budget Overview and Fiscal Summary Office of Management and Budget | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
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SENATE FINANCE COMMITTEE
January 23, 2012
9:01 a.m.
9:01:40 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:01 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Johnny Ellis
Senator Dennis Egan
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
Senator Lesil McGuire, Vice-Chair
ALSO PRESENT
Karen Rehfeld, Director, Office of Management and Budget,
Office of the Governor; John Boucher, Senior Economist,
Office of Management and Budget, Office of the Governor.
SUMMARY
^FY 13 Budget Overview and Fiscal Summary Office of
Management and Budget
9:03:10 AM
KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET
(OMB), OFFICE OF THE GOVERNOR, provided members with a list
of OMB staff and a power point presentation: FY2012 Budget
Overview, January 18, 2012 (copy on file). She emphasized
that approving an annual operating and capital budget for
the state of Alaska is one of the most important things, if
not the most important thing, that the legislature does
each session. She stressed the time and effort that goes
into the preparation of the budget. The Administration
worked with state agencies and the university to review
budget requests and challenges in order to meet the state's
most pressing needs, while holding the line on state
spending by focusing on key principles, priorities and
results.
Ms. Rehfeld observed the committee's intent to include
discussions with state agencies about their mission, core
services, and results in the budget subcommittee process.
She maintained that it is an important discussion: "to be
accountable for the public dollars we spend and to be able
to communicate what the state is receiving for the
investment it makes in programs and services". She added
that it also needs to be a meaningful tool for agencies and
program managers that links budget to results, and provides
the targets and strategies for continuous improvement in
service delivery. She observed that Governor Parnell's
vision of economic growth and strengthening families has
been his way of communicating his priorities with Alaskans.
Ms. Rehfeld explained the purpose of the budget. In
bringing this budget before the committee, the
administration spent months working with state agencies and
the university to review budget requests and challenges in
order to meet the most pressing needs while holding the
line on state spending. She stated that the Office of
Management and Budget (OMB) did that by focusing on key
principles and priorities and by focusing on results.
Ms. Rehfeld stated that when Governor Parnell released the
budget in December 2011, he framed the discussion around
results. She applauded the legislature's efforts to refine
the budget subcommittee process to include a discussion
with state agencies about their mission, core services, and
results.
Ms. Rehfeld felt this was an important discussion - to be
accountable for the public dollars the state could spend
and to be able to communicate what the state is receiving
for the investment it makes in programs and services.
Ms. Rehfeld noted the budget bills that had been introduced
in the FY 2012 session: HB283/SB160 - Capital, HB284/SB161
- Operating, HB285/SB162 - MH Operating & Capital, and
HB286/SB163 - Port GO Bonds.
Ms. Rehfeld discussed slide 2: "Governor Parnell's Vision -
Economic Growth; Strengthening Families." She pointed out
that Alaska's future rested on responsibly developing the
state's natural resources, and creating jobs and economic
opportunity for families. She noted that this budget
supported the governor's vision in several key priority
areas.
Ms. Rehfeld stressed that Alaska's future rests on
responsibly developing the state's natural resources and
creating jobs and economic opportunity for families. The
budget supports the governor's vision in several key
priority areas.
Ms. Rehfeld reviewed the guiding principles used by the
governor to develop his budgets:
· Fiscal Restraint - Spend less and save more for the
future;
· Strategic Investments - Invest in infrastructure to
grow Alaska's economy;
· Cash Reserves: The state will need to rely on cash
reserves to provide state services over time with
declining oil production. There is nearly 13 billion
in the Constitutional Budget Reserve and Statutory
Budget Reserve Accounts.
· Focus on Results - agency missions, core services, and
results.
Ms. Rehfeld noted that the governor's budget priorities
support the investment strategy and are based on the
state's constitutional priorities:
· Resource Development - create Jobs for Alaskans
· Education - prepare students for college for success
in college or postsecondary education
· Transportation/Infrastructure - support economic
development
· Public Safety - for homes and families
· Military - strengthen military missions and support
military families
9:06:21 AM
Ms. Rehfeld noted that the governor's budget priorities
support the investment strategy and are based on the
state's constitutional priorities:
· Resource Development - create Jobs for Alaskans
· Education - prepare students for college for success
in college or postsecondary education
· Transportation/Infrastructure - support economic
development
· Public Safety - for homes and families
· Military - strengthen military missions and support
military families
Ms. Rehfeld reviewed the revised fall forecast for FY 12
and FY 13 on slide 5. She noted that the chart shows the
projected revenue, the proposed spending plan, and the
projected balances at the end of each fiscal year. The FY
12 and FY 13 fall revenue forecast was revised upward. She
observed that 90% of Alaska's unrestricted general fund
(GF) revenue comes from oil production. Oil production
continues to decline faster than originally forecast. She
noted that high oil prices tend to mask the effect of the
decline, but provides an opportunity to save. In FY 12,
revenues are projected at $8,981.5 billion, while spending
is projected at just over $7 billion. This leaves a
projected balance of just over $1.9 billion for FY 12. In
FY 13, revenues are projected at $8.2 billion with a
projected spending plan of $6.4 billion, which leaves a
projected balance of nearly $1.8 billion. She concluded
that the FY 12 and FY 13 savings and/or investment
opportunity is over $3.7 billion.
Co-Chair Hoffman queried estimate that was used to
determine the FY 13 forecast. Ms. Rehfeld replied that
price of projected for FY 13 was $109.47 per barrel.
Co-Chair Hoffman surmised that the $109.47 was the exact
average from the previous year. Ms. Rehfeld responded that
the estimate was very close to the previous year's average.
Co-Chair Hoffman explained that the current year was the
first year with the expectation of oil to reach above $100
per barrel. He remarked that oil had reached $109 per
barrel in the year prior, but that was not anticipated in
the prior year's budget. Ms. Rehfeld responded that the
governor's proposed spending level, $97 per barrel was
needed to balance the budget.
Co-Chair Stedman requested a modification in the forecast
to focus on balancing the operating budget. Ms. Rehfeld
agreed to provide that information.
Ms. Rehfeld furthered that the revenue was higher than it
had been in the spring. She stated that oil production was
currently in decline.
Ms. Rehfeld reviewed slide 6, which was a high level
snapshot of the governor's total budget request of $12.1
billion. Fund sources are broken out:
· Unrestricted General Funds $6.43 Billion - 53%
· Federal Funds $2.87 Billion - 24%
· Permanent Funds DGF $1.48 billion - 12%
· Designated General Funds (DGF)$834.5 million - 7%
Ms. Rehfeld observed that DGF included:
· General fund program receipts $113.8 million
· University Receipts $341.0 million
· Renewable Energy Grant Funds $25.0 million
Ms. Rehfeld noted that other funds amount to $505.5 million
or four percent of the budget and included:
· Permanent Fund Receipts $126.5 million;
· Permanent Fund Corporation Operating costs of $11.1
and management fees of $108.2;
· International Airport - $110.9 million;
· Statutory Designated Receipts - $66.4 million; and
· Postsecondary Education Receipts - $12.9 million.
9:10:21 AM
Ms. Rehfeld discussed the governor's FY 13 budget
priorities. The first priority is resource development -
positioning the state's economy for growth. The governor's
proposed budget includes $28.5 million for Roads to
Resources. The appropriation would continue work on the
following projects:
· $10 million for Umiat Foothills West road
· $10 million for Road to Tanana in Northwest Alaska
· $4 million for Ambler Mining District
· $4.5 million for Klondike Industrial Use Highway that
goes from Skagway to the Yukon along with other roads
to resources
Ms. Rehfeld continued discussing the governor's priorities:
· $3.3 million to the Department of Natural Resources to
streamline the permitting application process;
· $2.7 million GF for oil rare earth elements and
strategic minerals assessment;
· $1.1 million GF for shale oil assessment; and
· $3.7 million GF for a statewide digital mapping
initiative, which could capture another $12 - $13
million in federal funds to support the project.
Ms. Rehfeld emphasized the importance of elevation data to
resource development, aviation safety, routes for roads,
and emergency response.
Ms. Rehfeld noted that there was continuation funding for
the Alaska Gasline Inducement Act (AGIA) Reimbursement Fund
($60 million); and the Alaska Gasline Development
Corporation project ($21 million). She expected
considerable discussion regarding gas line development and
acknowledged that adjustments in the budget would be
necessary.
9:11:17 AM
Co-Chair Hoffman wondered if the permitting budget would be
affected by the Coastal Zone proposition. Ms. Rehfeld
replied that the appropriation was for Department of
Natural Resources to automate the information and permits,
and would be able to incorporate whatever permitting
requirements were needed.
Co-Chair Hoffman felt the Coastal Zone Bill would have an
impact on the mechanics of the permitting streamlining. Ms.
Rehfeld agreed to look into that issue.
Ms. Rehfeld discussed funding for education. The budget
includes: full funding of k-12 education and pupil
transportation ($62.2 million) at $1.1 billion; and forward
funding of k-12 education and pupil transportation at $1.1
billion. The K-12 funding formula is based on current
statutory Base Student Allocation (BSA) of $5,680. The
budget includes an $8 million request for Alaska
Performance Scholarships (APS). The class of 2011 was the
first to qualify for these scholarships. Nearly 2,400
students qualified for APS in the first year. Over 900
Alaskan high school graduates from the class of 2011
received the scholarship. The remaining students will be
eligible to receive the scholarship over the next 5 years.
The Alaska Commission on Postsecondary Education (ACPE) is
preparing a report to the legislature, which is due on the
10th legislative day (January 27, 2012) that will provide
detailed information on APS, and the students that qualify
in the inaugural class.
Ms. Rehfeld observed that the budget includes two school
construction projects. Earlier this fall, the
administration successfully resolved the long-standing
Kasayulie litigation with a pledge to support funding of
the five highest priorities rural school construction
projects over the coming years. The first two school
construction projects on the list are in Emmonak and
Koliganek. She added that $24.0 million was also included
for the first 14 projects on the Department of Education
and Early Development's major maintenance priority list.
9:15:15 AM
Co-Chair Hoffman looked at the full funding and forward
funding of K-12, and stressed that there was a concern for
the potential reduction in educational staffing cuts. He
noted that the budget was temporarily increased in the year
prior, and they were eliminated. He wondered if OMB had
received requests from school districts. Ms. Rehfeld
replied that there were some requests from school districts
pertaining to changing the statutory formula for the base
student allocation. She stressed that five years prior
showed an increase in school funding, and the governor
indicated a more targeted approach to address fixed costs.
Co-Chair Hoffman stated that the senate had passed a bill
that addressed increased fuel costs for school districts
and municipalities.
Senator Thomas looked at the Public Employee Retirement
System (PERS) and Teacher's Retirement System (TRS)
unfunded liability, and wondered if there were any
considerations to take a look at investing money in PERS
and TRS. Ms. Rehfeld replied that there were many
discussions about what options were available for the
unfunded liability. Senator Thomas wondered if the solution
might be made soon. Ms. Rehfeld felt there the unfunded
liability was a concern for all departments.
Co-Chair Hoffman stated that the PERS and TRS unfunded
liability was a concern of the Senate Finance Committee.
9:21:05 AM
Co-Chair Hoffman wondered if there were separate financial
requests that addressed separate and distinct
appropriations from the outcome of the Kasayulie
litigation. Ms. Rehfeld replied that the FY 13 budget
included a capital appropriation for the Rural Education
Attendance Area Fund with $35 million.
Co-Chair Hoffman stated that the intent of the funds was to
fund 10 rural schools, and then set aside the funds for the
schools that might be added years later. Ms. Rehfeld
responded that she understood the five schools that were
highlighted in the budget would continue to be funded as a
result of the Kasayulie litigation.
Co-Chair Stedman noticed that the deferred maintenance
list, and wondered how firm the administration was on
maintaining the line-item appropriation. Ms. Rehfeld
replied that the administration was open to changes to the
proposed budget.
Co-Chair Hoffman expressed concern with the intent of the
major maintenance funding. He noted that there was a
freeze-up at a rural school, and was closed for over a
month. He felt that there were some unwise choices when
dealing with maintenance issues. Ms. Rehfeld understood Co-
Chair Hoffman's concerns.
9:26:01 AM
Ms. Rehfeld discussed public safety and the governor's
Choose Respect program, Division of Domestic Violence and
Sexual Assault Prevention Initiative for $11.8 million GF.
She observed that the governor is requesting $3.3 million
for prevention and intervention, which includes public
education and outreach, community level prevention projects
and rural pilot projects. She noted sixty-four communities
held "Choose Respect" events in 2011, and the goal for 2012
is for 100. She maintained that the program is sending a
strong message of support to victims and survivors. The
governor also included $3.2 million for the Support for
Survivors program, which includes shelter services for
victims, services for children exposed to violence, trauma
services for victims, and housing.
Ms. Rehfeld observed that $5.3 million was requested for a
continued law enforcement presence in communities. The
request would provide for an additional 15 VPSOs and 1
support trooper; housing for VPSO's; sex offender
management and supervision; cold case prosecutor; and
limited English proficient victims' assistance.
Ms. Rehfeld noted that the governor is committed to improve
the state's ability to respond to a disaster. The
legislature approved just under $5 million for emergency
power generation and water purification in the FY 12
budget. The FY 13 budget requests funding for emergency
food supplies for several locations around the state ($4.9
million). The governor has also requested funding for an
Interior search and rescue helicopter ($3.0 million).
Interior and Northern Alaska's geography and extreme
weather conditions create enormous challenges to quick and
effective response to emergencies. She pointed out that it
is critical for Alaska State Troopers to be able to access
remote areas during adverse weather conditions with a
helicopter that is adequately equipped to complete the
mission.
Co-Chair Stedman requested a brief synopsis on the food
supply issue, and wondered if the food would be distributed
across the state. Ms. Rehfeld replied that the supply would
be distributed to a few key areas, and was designed for
large scale disasters. She deferred to the Department of
Military and Veterans Affairs to provide a more detailed
response.
Ms. Rehfeld observed that $5.3 million was requested for a
continued law enforcement presence in communities. The
request would provide for an additional 15 VPSOs and 1
support trooper; housing for VPSO's; sex offender
management and supervision; cold case prosecutor; and
limited English proficient victims' assistance.
Ms. Rehfeld noted that the governor is committed to improve
the state's ability to respond to a disaster. The
legislature approved just under $5 million for emergency
power generation and water purification in the FY 12
budget. The FY 13 budget requests funding for emergency
food supplies for several locations around the state ($4.9
million). The governor has also requested funding for an
Interior search and rescue helicopter ($3.0 million).
Interior and Northern Alaska's geography and extreme
weather conditions create enormous challenges to quick and
effective response to emergencies. She pointed out that it
is critical for Alaska State Troopers to be able to access
remote areas during adverse weather conditions with a
helicopter that is adequately equipped to complete the
mission.
Senator Olson wondered if the $3 million request was for
the purchase of a helicopter. Ms. Rehfeld responded that
the request was for the purchase of a turbine helicopter.
9:29:59 AM
Senator Olson noted that there were other costs when
operating the helicopter, and wondered of those tangential
costs were considered. Ms. Rehfeld replied the Department
of Public Safety had addressed the operating costs, and
agreed to provide that information.
Ms. Rehfeld discussed transportation infrastructure. She
observed that $1 billion for statewide infrastructure
projects was included to build and maintain Alaska's
infrastructure, which included funding for:
· Highway & Aviation $938.3 million;
· DEC 16 Municipal water/sewer projects $32 million GF;
local match;
· Village Safe Water - $51 million, $8.7 million state
GF match; and
· Municipal Harbor Grant Fund 10 projects $23.1 M GF;
local match.
Ms. Rehfeld noted that the governor has also introduced a
ports GO bond package (HB286/SB163), which included six
projects totaling $350.0 million:
· Port of Anchorage $200.0 million;
· Port Mackenzie Rail Extension $110.0 million; and
· $10 million each for Bristol Bay, Emmonak, Seward, and
Ketchikan (Ward Cove).
Ms. Rehfeld discussed energy funding. The governor's
proposal included:
· Round five for Renewable Energy Grant fund - $25
million; and
· Weatherization and home energy rebates - a little over
$50 million: Home Energy Rebates - $20 million GF; and
Weatherization - $31.5 million GF.
Co-Chair Stedman noted that the Harbor Grant Fund had a
target of $10 million per year for ten years, and there was
a lag in the appropriation cycle due to changing oil
prices. He appreciated the governor's efforts to catch up
on that issue. He remarked that the $25 million in the
Renewable Energy Grant Fund should be closer to $50 million
per year, and queried the administration's perspective on
$50 million. He also requested the Power Cost Equalization
funding status. Ms. Rehfeld replied that the Renewable
Energy Grant Fund request was $25 million, and the Alaska
Energy Authority (AEA) had completed their round 5
evaluation, and might add some requests. She noted that AEA
had funded the program, and were reliable at making those
funding distinctions.
9:34:36 AM
Co-Chair Hoffman stated that the Renewable Energy Grant
legislation would sunset in the current year, and there was
a hope to extend the sunset for another ten years. He noted
that the state had a goal of 50 percent renewable energy by
2025, and remarked that the minimum budget for the fund
should be $50 million. Ms. Rehfeld replied that the
Renewable Energy Grant Fund was a key element in reaching
the state's renewable energy goals. She added that there
were many existing projects that would encourage that
target.
Senator Thomas requested a breakdown between the highway
and aviation dollars. Ms. Rehfeld agreed to provide that
information.
Senator Thomas looked at energy grants, and wondered if
there was a plan to address the high cost of fuel in the
rural areas. Ms. Rehfeld explained that each project was
important to improving the access to affordable fuel.
9:39:29 AM
Co-Chair Hoffman pointed out that the Susitna Hydro Project
would only benefit those near the Susitna Valley.
Ms. Rehfeld observed that it was year three of the deferred
maintenance package. There are 2,200 facilities statewide,
with 17.2 million square feet of space, and a replacement
cost of $7.8 billion. The administration is getting more
consistent in their definition of deferred maintenance
projects. She concluded that there is better identification
of the universe of deferred maintenance projects. Facility
managers are comparing notes and sharing information. There
are facility condition index standards that can be applied
to measure success. All of the year one funding will be
expended by the end of the current fiscal year. Year two
funding is in the hopper. Year three is in the request
before the legislature. She stressed the improved ability
to plan for and complete deferred maintenance projects.
Ms. Rehfeld discussed slide 11, military support. Funding
is continued for army and air guard facilities, veterans'
services and outreach, and an Interior veteran cemetery ($2
million in federal authorization in the capital budget. A
portion of the operating costs will be in the FY 13 budget.
The full cost will be in FY 14.)
Ms. Rehfeld noted the Alaska Aerospace Development
Corporation request for $8 million in the operating budget.
The corporation's funding stream from missile defense has
changed dramatically. The Alaska Aerospace Development
Corporation is working to secure other customers for the
Kodiak launch facility. She observed that funding has been
included in the budget to keep the Alaska Aerospace
Development Corporation viable.
9:45:48 AM
Ms. Rehfeld reviewed the pie chart in slide 12. She
explained that the left side of the pie chart represents
non-discretionary funding: formula programs, permanent fund
dividend, statewide operations and requirements. The right
side of the pie chart is discretionary funds: agency non-
formula components of the capital and operating budgets.
She observed that the general fund component was separated
from the agency nonformula funds and other funds to allow
them to look at the agencies' general fund request.
Ms. Rehfeld referred to the K-12 education formula. She
observed that they are in the fifth year of the
implementation of district cost factors.
Ms. Rehfeld noted that other formula funds total $1.96
billion, which includes Medicaid at $1.64 billion. Other
components include shared taxes, Power Cost Equalization
and Public Assistance.
Ms. Rehfeld observed that statewide appropriations
represent about 12 percent of the governor's request at
$1.44 billion. The retirement system unfunded liability
direct deposit for FY 13 of $610.5 million is included in
this amount and is up from $479.5 million in FY 12. The
total retirement system unfunded liability is $11 billion:
Public Employees' Retirement System (PERS) - $7.0 billion,
and Teachers' Retirement System (TRS) - $4.1 billion. She
noted other statewide budget requests: $400 million - oil
exploration tax credits; $301.4 million - debt service
(down $25.0 million); $60 million - Revenue Sharing; $1.48
billion or 12.2% of the total budget - Permanent Fund; and
$572.0 million - Permanent Fund dividends and operations
($25.0 million for PFD and hold harmless.)
Ms. Rehfeld highlighted components of the $1.8 billion
capital budget request: transportation infrastructure,
Roads to Resources, energy, deferred maintenance, and
public safety.
9:48:58 AM
Co-Chair Stedman requested a breakdown of the individual
credits and added that the 400 million was only half of the
credits.
Ms. Rehfeld continued to discuss revenue sharing.
Co-Chair Hoffman felt that the capital budget increases
every year, and requested a history of the governor's
capital requests. Ms. Rehfeld agreed to provide that
information.
9:51:05 AM
Ms. Rehfeld highlighted the governor's FY 13 operating
budget request. She emphasized that growth was restrained.
The administration deleted 288 positions (full and part-
time, long-term vacant positions). She concluded that
personal services lines would be in better shape. Funding
sources in personal services were also cleaned up. She
acknowledged the net result would be good but stressed that
a significant effort was required on the part of the
departments.
Ms. Rehfeld noted Medicaid growth of $130.5 million ($45.0
million in general funds), which is an approximately 8.6%
projected increase. The Department of Health and Social
Services estimates that 150,279 Alaskans are projected to
enroll. She stressed that enrollment, utilization, and
costs driver the total cost.
Ms. Rehfeld noted the proposed opening of the Goose Creek
Correctional facility over FY 13 and the first quarter of
FY 14. By the end of this time, out-of-state prisoners will
be returned and the facility will be fully operational. The
cost of current out-of-state contracts will help fund the
operations of the Goose Creek facility. The facility is
ready to go.
Ms. Rehfeld noted that the governor's request includes
$16.0 million for tourism marketing. There are also salary
and benefit increases of $66.0 million for the University
of Alaska, Alaska Court System, Legislature, and Executive
Branch.
Co-Chair Hoffman wondered if the $29.1 for Goose Creek was
a phased in number, and queried the annual operating cost
of Goose Creek. Ms. Rehfeld replied that the full operating
cost of Goose Creek was approximately $50 million.
Co-Chair Stedman wondered if the $50 million included debt-
service. Ms. Rehfeld replied that it did not include debt-
service.
Senator Egan wondered if the $16 million for tourism
included the industry match. Ms. Rehfeld responded that the
$16 million was GF, and would go to the Department of
Commerce, Community and Economic Development.
Senator Egan surmised that the $16 million did not include
a state match. Ms. Rehfeld affirmed, but added that the
industry would not contribute.
Senator Egan wondered if there was an increase to the
number of Department of Commerce, Community and Economic
Development employees. Ms. Rehfeld stated that there had
not been an increase in employees.
Ms. Rehfeld discussed slide 14. She emphasized that
Alaskans benefit from state spending. She noted that 60
percent of the budget benefits Alaskans in communities,
organizations and individuals through grants, direct
payments, capital, and salary costs. Programs affecting
Alaskans include: Medicaid, Permanent Fund dividends,
Revenue Sharing, School Funding, retirement system unfunded
liability, capital projects, and named recipient grants.
Ms. Rehfeld observed that 21% of the state's budget goes to
purchased services such as travel, hotels, professional
services, fuel and equipment - some of this funding is
internal to state agencies but a significant amount is for
services purchased from Alaska's private sector businesses.
Ms. Rehfeld noted that 19% of the total budget represents
salaries and benefits for state employees who are tasked to
deliver core services and programs efficiently and
effectively to Alaskans.
9:56:30 AM
Co-Chair Stedman felt the distribution of expenditures
should concentrate on specific regions of the state. He
requested an estimate of what the FY 13 Supplemental Budget
and governor's amendments might look like. Ms. Rehfeld
responded that OMB was working to anticipate the
Supplemental Budget and amendments.
Senator Thomas looked at the education budget, on page 2 of
the fiscal summary. He wondered what would be considered
forward funding, and wondered why there was small increase
in education funding. He queried the layoffs of personnel
in education. Ms. Rehfeld responded that OMB felt that
education was fully funded based on the statutory formula.
10:03:06 AM
Co-Chair Hoffman requested an explanation of the judicial
salary increases. Ms. Rehfeld replied that there was not
the governor's intent to short fund the judicial employees.
Co-Chair Stedman would like to look at funding the courts.
He added that it would be helpful to the committee to look
at the shifts in student populations across the state.
Senator Olson understood that there was a cost differential
with some of rural judges, and queried the reason. Ms.
Rehfeld replied that geographical issues were key in
determining the funding.
Senator Olson wondered if SB 144 was included in the
budget. Ms. Rehfeld replied that the budget only included
the governor's requests.
Ms. Rehfeld thanked the committee, and noted that the
governor and OMB were open to discussions and changes to
the budget.
JOHN BOUCHER, SENIOR ECONOMIST, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR, declined to comment.
Senator Thomas looked at the $2 million for the Veteran's
Cemetery, and queried potential delays in development. Ms.
Rehfeld replied that she was aware of some delays, but the
operations funding would be general funds.
Senator Thomas wondered if there would be additional
federal funding added because of the delays. Ms. Rehfeld
did not know.
10:08:29 AM
Senator Thomas looked at cost-differentials across the
state, and noted a study that had occurred regarding the
reductions in funding. He stressed that Anchorage and
Fairbanks were a couple of the most expensive cities in the
countries, yet the cost-differential was reduced. He
stressed the issue of focusing on the real costs in Alaska.
Senator Ellis wondered if the governor was cognizant of the
Pedro Van Meur's opinion that Alaska was overly-generous in
oil credits. Ms. Rehfeld replied that the Department of
Revenue and Department of Natural Resources had made the
governor aware of the Pedro Van Meur's presentation.
Co-Chair Hoffman wondered if Ms. Rehfeld had a perspective
on the Mental Health and Operating Budgets. Ms. Rehfeld
replied that those were included in the presentation.
Co-Chair Hoffman noted that the overview included SB 160,
SB 161, SB 162, and SB 163.
ADJOURNMENT
10:13:14 AM
The meeting was adjourned at 10:13 AM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| KJR Budget Overview SFC 01.23.2012 Final.pdf |
SFIN 1/23/2012 9:00:00 AM |
OMB Budget Overview |
| FY2013 Governor Fiscal Summary.pdf |
SFIN 1/23/2012 9:00:00 AM |
OMB Budget Overview |