Legislature(2015 - 2016)SENATE FINANCE 532
03/10/2016 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB139 || SB140 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 139 | TELECONFERENCED | |
| += | SB 140 | TELECONFERENCED | |
| + | HB 256 | TELECONFERENCED | |
| + | HB 257 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 10, 2016
9:19 a.m.
9:19:03 AM
CALL TO ORDER
Co-Chair Kelly called the Senate Finance Committee meeting
to order at 9:19 a.m.
MEMBERS PRESENT
Senator Anna MacKinnon, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Peter Micciche, Vice-Chair
Senator Click Bishop
Senator Mike Dunleavy
Senator Lyman Hoffman
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT
James Armstrong, Staff, Senator Pete Kelly; Rob Carpenter,
Fiscal Analyst, Legislative Finance Division; Lacey
Sanders, Fiscal Analyst, Legislative Finance Division.
SUMMARY
SB 139 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 139 was HEARD and HELD in committee for
further consideration.
SB 140 APPROP: MENTAL HEALTH BUDGET
SB 140 was HEARD and HELD in committee for
further consideration.
HB 256 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 256 was SCHEDULED but not HEARD.
HB 257 APPROP: MENTAL HEALTH BUDGET
HB 257 was SCHEDULED but not HEARD.
SENATE BILL NO. 139
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs, capitalizing funds, making
reappropriations, making supplemental appropriations,
and making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
SENATE BILL NO. 140
"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."
9:19:13 AM
Co-Chair Kelly explained that the committee would be
considering amendments to the committee substitute (CS) for
the operating budget. He asked his staff to discuss the
amendments.
JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, indicated that
the first 8 amendments were intent language amendments. He
asked if Co-Chair Kelly would like the individual
sponsoring members to address the amendments, or himself.
Co-Chair Kelly asked for Mr. Armstrong to discuss the
amendments.
Co-Chair MacKinnon MOVED to ADOPT Amendment 1.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 1:
ADD: Page 58, Sec. 4 add intent language following
section (b):
It is the intent of the legislature that the
Executive Branch continues to enforce the
Governor's January 5, 2016 restriction on non-
essential travel throughout FYl7.
Mr. Armstrong conveyed that the administration had enacted
a travel restriction that allowed travel only for essential
purposes. The amendment intent language asked the
administration to extend the restriction through June 30,
2017.
Co-Chair Kelly REMOVED his OBJECTION.
There being NO further OBJECTION, it was so ordered.
Amendment 1 was ADOPTED.
9:21:24 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 2.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 2:
DEPARTMENT: Department of Fish and Game
ADD: It is the intent of the legislature that programs
delivering educational materials to the public, or
that make educational presentations to the public, and
are funded by fish and game fund or Pittman-Robertson
fund revenues, shall include a presentation on the
history and workings of the North American Model or
Wildlife Conservation. The presentation shall make
clear that anglers and hunters pay for conservation,
and were the founders of the modern conservation
movement.
Mr. Armstrong summarized that the amendment asked the
Department of Fish and Game (DFG) to establish public
educational programs on the subject of DFG funding, and to
include how Pittman-Robertson federal funds were used in
department activities [The Pittman-Robertson Act was signed
into law by President Franklin D. Roosevelt on September 2,
1937; whereby tax on ammunition and firearms used for sport
hunting were to be distributed to the States for wildlife
restoration].
Senator Dunleavy discussed Amendment 2, and reiterated that
the amendment would educate the public as to how the
Pittman-Robertson funds were used. He thought there was an
acceleration of cultural transition from rural to urban
life, and thought it was important to recognize the role of
hunting in the history of conservation. He emphasized that
the funds went to support all types of activities.
Senator Olson asked how much money was being discussed.
Senator Dunleavy was not aware of the amount of funding and
thought the matching funds were dependent upon what passed
in the DFG budget.
Senator Olson asked what the funding would be used for if
the amendment was not adopted.
Senator Dunleavy stated that if the amendment did not pass,
the funds would be used for other things outlined in the
budget language.
Co-Chair Kelly REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 2 was
ADOPTED.
9:23:17 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 3.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong conveyed that Amendment 3 pertained to
commercial fisheries, and included intent language asking
DFG to report back to the House and Senate Finance
Committees with information on potential cost-saving
measures concerning discreet stock fisheries management in
Cook Inlet. He deferred to Senator Dunleavy for further
explanation of the amendment.
Senator Dunleavy specified that the amendment was not
intended to add new costs to the department, but rather to
get a simple report to see if there would be cost savings
if the state used a discreet fisheries management approach
as opposed to the current management in Cook Inlet.
9:24:18 AM
AT EASE
9:24:29 AM
RECONVENED
Senator Olson asked if DFG favored Amendment 3.
Senator Dunleavy was not aware if the department favored
the amendment or not.
Co-Chair Kelly REMOVED his OJBECTION. He asked the
committee if there was further objection.
Vice-Chair Micciche OBJECTED for discussion.
Vice-Chair Micciche discussed fisheries concerning five
different species of Pacific salmon. He mentioned fisheries
in Bristol Bay, the Yukon-Kuskokwim Delta, and the Cook
Inlet. He suggested that discreet management occurred
closer to a river system when there was not adequate return
of a particular species. He did not support the department
spending time on a study that might change a current
successful fisheries management practice.
Co-Chair MacKinnon asked if separate species of salmon were
counted in distinct ways. She expressed a desire to
understand the management practice more fully.
Co-Chair Kelly understood that if there was a discreet
salmon stock, it signified a difference in fisheries
management that would differentiate by species. He
understood that the state was not doing so in the Cook
Inlet.
Senator Dunleavy reiterated that the amendment was not
asking the department to spend a great deal of time or
resources on the matter, but to provide a simple report to
inform if different management practices could provide cost
savings.
Co-Chair MacKinnon supported the amendment if it was not
asking the department to spend a great deal of additional
funds to do things differently or if it would not change
the existing management practice.
Senator Dunleavy clarified that the intent of the amendment
was not to change existing management practice.
9:27:29 AM
AT EASE
9:31:07 AM
RECONVENED
Co-Chair Kelly asked if the objection was maintained.
Vice-Chair Micciche MAINTAINED his OBJECTION.
A roll call vote was taken on the motion to adopt Amendment
3.
OPPOSED: Hoffman, Micciche, Olson, Bishop
IN FAVOR: Dunleavy, Kelly, MacKinnon
The MOTION FAILED (4/3).
Co-Chair MacKinnon MOVED to ADOPT Amendment 4.
Co-Chair Kelly OBJECTED for discussion.
Senator Dunleavy discussed Amendment 4:
OFFERED BY: Senator Dunleavy
DEPARTMENT: Department of Fish and Game
APPROPRIATION: Commercial Fisheries
ALLOCATION: Commercial Fisheries Entry Commission
(CFEC)
ADD: It is the intent of the legislature that
retaining the Commercial Fisheries Entry Commission
Allocation under the Commercial Fisheries
Appropriation does not diminish or affect the
Commission's statutorily designated budgetary or
operational autonomy or authority; nor does it grant
the Commissioner of Fish and Game or his designee any
budgetary or operational control over the Commercial
Fisheries Entry Commission.
Senator Dunleavy related that he had heard the amendment in
the Senate Finance Subcommittee for DFG. He stated that it
was the intent of the language to make clear regarding
Order 279 (if implemented). He noted that the Commercial
Fisheries Entry Commission (CFEC) continued to work to
streamline itself, and make its operations more efficient.
He commented that the amendment would not compromise the
autonomy of CFEC. He furthered that the Limited Entry Act
remained the controlling statute. The intent language was
provided to retain CFEC's control over its own budget.
Vice-Chair Micciche commented that he was supportive of the
amendment, which guaranteed adjudicatory independence for
CFEC. He noted that the independence had been a struggle in
streamlining the department.
Co-Chair Kelly WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 4 was
ADOPTED.
9:33:44 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 5.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 5, which requested the
DFG Wildlife Conservation Division to engage in cooperative
collaborative consulting with non-departmental entities to
increase orphan moose calf survival rates through expedited
rescue, rehabilitation, and re-induction efforts.
Senator Dunleavy specified that there was no cost
associated with the amendment. He furthered that the
amendment concerned weekends, holidays, and after-hours
coordination with moose calf rescue organizations to
facilitate additional rescues when possible.
Co-Chair Kelly REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 5 was
ADOPTED.
9:34:45 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 6.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 6:
Page 58. following line l0:
Insert a new subsection to read:
"(c) It is the intent of the legislature that the
commissioner of each department in the executive
branch prepare a report to the legislature, to be
delivered to the senate secretary and chief clerk
of the house of representatives not later than
January 17, 2017, identifying services that can
be privatized, including procurement, client
services, human resource management, and auditing
of certain files."
Mr. Armstrong noted the amendment was offered by Co-Chair
Kelly on behalf of Senator Cathy Giessel and Senator Lesil
McGuire.
Co-Chair Kelly REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 6 was
ADOPTED.
9:35:36 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 7.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed the amendment, which conformed to
an amendment that was adopted in the House two nights
previously. The amendment asked OMB to reduce "hollow"
receipt authority when preparing the fiscal budget for FY
18. He explained that the effort had been done in the past,
and the amendment was conforming to past practices.
Co-Chair Kelly REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 7 was
ADOPTED.
9:36:17 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 8.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 8:
DEPARTMENT: Environmental Conservation
APPROPRIATION: Agency-Wide
ALLOCATION:
ADD: It is the intent of the legislature that the
Department of Environmental Conservation improve
efficiencies in permitting and consider the economic
impacts of increasing permit fees before imposing
increased fees on users.
EXPLANATION: This intent language was approved by the
subcommittee for inclusion in SB 139
Mr. Armstrong explained that the amendment requested that
the Department of Environmental Conservation (DEC) look at
economic impacts when considering raising user fees, by
performing an economic analysis of the fee structure
contained within the department.
Vice-Chair Micciche wondered Co-Chair Kelly had envisioned
for the implementation of the amendment language. He
wondered if Co-Chair Kelly had anticipated a scale of how
the department would impose user fees.
Co-Chair Kelly noted that it was difficult to put strong
requirements within intent language.
Mr. Armstrong relayed that there had been a joint meeting
of the Finance Subcommittees on DEC, and the group had
examined all the existing fees and means of reducing the GF
impact of some fees. He noted that Co-Chair Kelly was
working with the department on legislation. He was hopeful
that a bill would be introduced to examine the topics in
the intent language.
Co-Chair Kelly REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 8 was
ADOPTED.
9:38:01 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 9.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 9, which pertained to a
Federal Aviation Administration (FAA) reporting requirement
related to rural aviation fuel and taxes. The amendment
would expand the reporting to the FAA to adhere to federal
requirements.
Co-Chair Kelly asked if Senator Olson had any comments from
a pilot's perspective.
Senator Olson asked about the result to the end user,
whether it was a private or commercial operation.
Mr. Armstrong wondered if there was an individual from the
administration that could address Senator Olson's question.
9:39:15 AM
AT EASE
9:39:31 AM
RECONVENED
ROB CARPENTER, FISCAL ANALYST, LEGISLATIVE FINANCE
DIVISION, stated that Amendment 9 had a net zero impact on
the budget. He furthered that the amendment signified no
fee increases to airports. The amendment was merely to
provide clarity in the budget as to what was spent at rural
airports, for informational purposes for the FAA.
Senator Olson acknowledged that there was a net zero impact
on the budget, but wondered if the end user would be
required to pay additional taxes.
Mr. Carpenter answered in the negative.
Senator Olson thought there might be other consequences or
benefits to the amendment. He wondered if maintenance to
airports would be affected.
Mr. Carpenter explained that the intent of the amendment
was to show in the budget what was spent on airports and
what was expended on airports. The amendment was entirely
related to an FAA requirement that any funds generated by
airports built with federal funds must be spent at the same
airport.
Co-Chair Kelly REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 9 was
ADOPTED.
9:41:24 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 10.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 10:
DEPARTMENT: Natural Resources
APPROPRIATION: Parks and Outdoor Recreation
ALLOCATION: Parks Management and Access
ADD: $35.4 Vehicle Rental Tax (1200)
DELETE: $35.4 UGF (1004)
EXPLANATION: This is a technical correction to fix an
error.
Mr. Armstrong explained that Amendment 10 was a technical
fix to a funding source contained within parks management
and access. The amendment stipulated use of $35,400 of
vehicle rental tax funds instead of UGF.
Co-Chair Kelly REMOVED his OJBECTION. There being NO
further OBJECTION, it was so ordered. Amendment 10 was
ADOPTED.
9:41:57 AM
Co-Chair MacKinnon MOVED to ADOPT Amendment 13.
Co-Chair Kelly OBJECTED for discussion.
Mr. Armstrong discussed Amendment 13:
Insert:
Page 58, Sec. 4, Subsection (c)
Intent Language
It is the intent of the Legislature that the Governor
develop a plan using best practices to find efficient
measures to co-locate the Alaska Aerospace
Corporation, the Alaska Energy Authority, the Alaska
Housing Finance Corporation, and the Alaska Industrial
Development and Export Authority in an effort to
reduce administrative costs and duplication of
services within these agencies. The plan should be
delivered to the co-chairs of the House and Senate
Finance Committees no later than October 31, 2016.
EXPLANATION:
Cost savings could be achieved through co-locating and
consolidating work within these quasi-corporations
through reduction of lease costs, reduction of
duplication of administrative functions, as well as
utilizing the assets of each agency to achieve the
appropriate missions and measures to maximize the
benefit and return to Alaskans.
Co-Chair MacKinnon discussed Amendment 13. She relayed that
the finance subcommittee for the Department of Revenue had
looked at enterprise agencies in the budget the previous
year. She understood that the governor had proposed
something similar to what was outlined in the amendment,
and she considered that the amendment was more specific in
the intent to save the state money. She referred to the
governor's press conference earlier in the day, in which he
had mentioned an executive order, as well as studying the
agencies and working to honor all contracts. She thought
the Senate should support the governor's effort, but adhere
to the goal of reducing administrative overhead costs and
eliminating duplication of services. She thought the
amendment would support the governor in achieving the
results he was anticipating.
Co-Chair Kelly REMOVED his OBJECTION.
Senator Hoffman asked what the co-chairs would do with the
information once they received a plan from the governor as
stipulated in the amendment.
Co-Chair MacKinnon stated that the co-chairs would share
the plan with the committee and the rest of the
legislature.
There being NO further OBJECTION, it was so ordered.
Amendment 13 was ADOPTED.
Mr. Armstrong said "hi" to his mom, who was listening.
9:44:47 AM
RECESSED
2:44:49 PM
RECONVENED
Co-Chair Kelly stated that the committee would consider
additional amendments.
Senator Dunleavy MOVED to ADOPT Amendment 14.
Co-Chair Kelly OBJECTED for discussion.
Senator Dunleavy discussed Amendment 14:
PART A
Numbers Section:
DEPARTMENT: University of Alaska
APPROPRIATION: University of Alaska
ALLOCATION: Matanuska-Susitna College
DELETE: $116.5 UGF (1004)
PART B
Language Section:
Page 63, following line 13:
Insert a new bill section to read:
* Sec. 13. DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT. The sum of $116,500 is appropriated from
the general fund to the Department of Education and
Early Development for payment as a grant under AS
37.05.316 to the Matanuska-Susitna Borough School
District for transporting students to the Alaska
Middle College School.
Renumber accordingly.
EXPLANATION: Explain the purpose/impact of the
amendment.
Senator Dunleavy emphasized that the amendment would not
expend funds. The amendment would transfer $116,500 of UGF
from the University of Alaska Anchorage (Mat-Su campus) to
the Matanuska-Susitna Borough School District for the
purpose of offsetting its bussing costs. He furthered that
the Alaska Middle College concept (which took place in
Eagle River) required students from Mat-Su to be bussed to
the college from the Mat-Su Valley. When the concept was
being developed in previous years, the school district had
approached the local University of Alaska campus, which
responded with disinterest in having a middle college
concept in which high school students could obtain dual-
credit. The concept would reduce costs for families as well
as the state. He emphasized his support for the program,
and mentioned students who had graduated with the
opportunity to earn as many as 48 credits or more.
2:46:58 PM
AT EASE
2:47:20 PM
RECONVENED
Co-Chair Kelly referred to Section 13, line 12 of Amendment
14; and asked if the purpose of the amendment was to
transfer money from UAA Mat-Su campus to the school
district. He was not sure the language in the amendment had
the intended effect.
2:47:54 PM
AT EASE
2:49:09 PM
RECONVENED
Co-Chair Kelly explained that he would set Amendment 14
aside.
Vice-Chair Micciche MOVED to ADOPT Amendment 15.
Co-Chair Kelly OBJECTED for discussion.
Vice-Chair Micciche discussed Amendment 15:
DEPARTMENT: Health and Social Services
APPROPRIATION: Public Assistance
ALLOCATION: Senior Benefits Payment Program
Add a new section titled Health and Social Services
following section 13 to read:
Sec. XX. If the amount necessary to pay benefits under
4 7.45 .302(b) (1) and (2) exceeds the amount
appropriated for that purpose in sec. 1 of this Act,
the amount necessary, estimated to be $0, to pay those
benefits is appropriated from the general fund to the
Department of Health and Social Services, Public
Assistance, Senior Benefits Payment Program, for the
fiscal year ending June 30, 2017.
EXPLANATION: This amendment ensures that the funding
for the Senior Benefits Payment Program will be
sufficient to fund the statutory payments to the
bottom two (of three) lowest income groups (i.e.,
$250/month for seniors between 0% and 75% of FPL, and
$175/month for seniors at 76% to 100% of the FPL).
This amendment does not provide funding to pay
benefits to seniors with incomes at 101 % to 175% of
the FPL (i.e., the highest income group under
47.45.302(b)(3)).
Vice-Chair Micciche explained that the amendment would not
transfer any funds. The House had made a reduction to the
top tier of the highest income group for senior benefits.
He wanted to ensure (under the lens of protecting the most
vulnerable and needy) that the cut did not impact the two
lowest income groups under the Senior Benefits Payment
Program, who received $250 or $175 per month. The amendment
language would safeguard that the reduction would not
impact the two lower income groups.
Co-Chair Kelly WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered. Amendment 15 was ADOPTED.
2:50:15 PM
Senator Olson MOVED to ADOPT Amendment 16.
Co-Chair Kelly OBJECTED for discussion.
Senator Olson read a portion of the explanation for the
amendment:
Restore funds for Parents as Teachers and Best
Beginnings. Best Beginnings and Parents as Teachers
both support parental choice and help communities,
parents, and extended family provide meaningful,
positive, daily interactions that build young
children's brains and lay the foundation for all
future learning.
Senator Olson discussed the Best Beginnings program, which
provided books for roughly 21,000 children, age 0 to 5, in
105 communities. He referenced the American Academy of
Pediatrics, which recommended reading to children beginning
at birth to enhance parent child relationships and valuable
language and literacy skills. He discussed the Parents as
Teachers program, which was an evidence-based, home
visiting model that provided parent education and support
to pregnant women and families with children between the
ages of 0 and 5. He asked for the support of the committee.
Senator Dunleavy OBJECTED.
A roll call vote was taken on the motion to ADOPT Amendment
16.
IN FAVOR: Bishop, Hoffman, Micciche, Olson
OPPOSED: Dunleavy, MacKinnon, Kelly
The MOTION PASSED (4/3). Amendment 16 was ADOPTED.
2:52:08 PM
Senator Hoffman MOVED to ADOPT Amendment 17.
Senator Dunleavy OBJECTED for discussion.
Senator Hoffman discussed the amendment, which pertained to
the Department of Fish and Game (DFG) and had five parts to
it: the commissioner's office, administrative services,
state facilities rent, commercial fisheries unallocated
appropriation, and statewide fisheries management. The
amendment would result in a $2 million reduction from the
governor's budget. The commissioner's office would be
reduced by $244.2 thousand, administrative services would
have a total reduction of $500 thousand, habitat would have
a total reduction of $200 thousand, subsistence would have
a total reduction of $300 thousand, wildlife conservation
would have a total reduction of $300 thousand, commercial
fishing would have total reduction of $400 thousand, sport
fish hatcheries would have total reduction of $55.8
thousand. He noted that the amounts would in addition to
the $7.4 million reduction that the governor had submitted
in the FY 16 management plan.
2:53:22 PM
Senator Dunleavy MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Olson, Kelly, Bishop, Hoffman, Micciche
OPPOSED: Dunleavy, MacKinnon
The MOTION PASSED (5/2). Amendment 17 was ADOPTED.
2:53:52 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 18.
Co-Chair Kelly OBJECTED for discussion.
Co-Chair MacKinnon addressed the amendment:
DELETE: Language sections 27 (c) and (d) under Shared
Taxes and Fees.
Page 80, lines, 3 -12:
Delete all material.
EXPLANATION: The Division of Legislative Audit is
concluding their work on the Special Audit of the
Commercial Vessel Passenger Tax. The legislature will
address the payment of these funds once the audit is
concluded.
Co-Chair Kelly WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 18 was
ADOPTED.
2:54:18 PM
Senator Bishop MOVED to ADOPT Amendment 19.
Co-Chair Kelly OBJECTED for discussion.
Senator Bishop discussed Amendment 19:
PART A
DEPARTMENT: Transportation and Public Facilities
APPROPRIATION: Highway, Aviation and Facilities
ALLOCATION: Northern Region Highway and Aviation
ADD: $1,409,000 Vehicle Rental Tax Receipts 1200
ADD: 10 PFT Positions
INTENT LANGUAGE:
It is the intent of the legislature that the
Department of Transportation and Public Facilities,
Northern Region re-open and staff the Northway,
Chitina and Central maintenance stations.
EXPLANATION:
Vehicle Rental Tax Receipts are appropriated based
upon the most recently closed fiscal year's actual tax
collections. For the FY l7 budget the amount available
for disbursement is based upon FY l5 collections, and
totals $9.7 million dollars. The current FY l7 budget,
has allocated $8.3 million of the available $9. 7
million dollars, and has allocated it as follows;
• Commerce, Community, and Economic Development,
$336.7 for Economic Development
• Natural Resources, $2,984.3 for Parks
Management and Access
• Transportation and Public Facilities, $4,999.2
to Central Region Highway and Aviation
This amendment allocates Vehicle Rental Tax Receipts
to the Northern Region Highway and Aviation allocation
for the express purpose of reversing the maintenance
station closures in Northway, Chitina, and Central.
This amendment includes the re-instatement of eight
positions.
Senator Bishop discussed the amendment, explaining that the
amendment would restore three of the five maintenance
station reductions in the governor's budget: Northway,
Central, and Chitina. He stated that all three maintenance
stations were vital to Alaska's transportation needs. He
concurred with the remaining two closures. He noted that
the PCNs were reduced by two, for a re-instatement of eight
positions. He specified that the funding was coming from
vehicle rental tax receipts in the amount of $1.4 million
DGF.
Co-Chair Kelly spoke in support of the amendment. He
referred to conversations with Senator Bishop and thought
that he had made a good argument regarding the long
distances between maintenance stations. He was pleased that
Senator Bishop had found funds to support the amendment.
Co-Chair Kelly WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 19 was
ADOPTED.
2:56:00 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 20.
Vice-Chair Micciche OBJECTED for discussion.
Mr. Armstrong discussed the amendment, which removed 8
public information officer positions throughout the
administration, for a total reduction of $518,700. He
continued that the amendment contained intent language that
asked the administration to absorb the duties within the
office of the governor.
Vice-Chair Micciche asked if the amendment was a reduction
of $519,000 due to the 8 positions being deleted.
Mr. Armstrong answered in the affirmative.
Co-Chair Kelly added that the amendment proposed a UGF
reduction.
Vice-Chair Micciche WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 20 was
ADOPTED.
2:57:17 PM
Co-Chair MacKinnon MOVED to ADOPT Amendment 21.
Senator Dunleavy OBJECTED.
Mr. Armstrong discussed the amendment:
Page 65, line 15, following '·REVENUE.":
Insert "(a)"
Page 65, following line 19:
Insert a new subsection to read:
"(b) The amount necessary, not to exceed $650,000, is
appropriated from the permanent fund dividend fund (AS
43.23.045) to the Department of Revenue, permanent
fund dividend division, to perform third-party
eligibility analytics for the fiscal year ending June
30, 2017.
Add intent language the Permanent Fund Dividend
Division:
It is the intent of the legislature that the
appropriation for third-party eligibility analytics
under this subsection result in sufficient savings to
the state to surpass the amount expended and that the
fee amount not exceed 20 percent of anticipated
savings. The permanent fund dividend division shall
contract with a third-party provider to acquire the
eligibility analytics services."
Co-Chair Kelly commented that there were many programs
available through contractors that were more modern and
could spot fraud at a higher level than what was currently
utilized by the permanent fund dividend division. He
referred to a similar discussion regarding Medicaid
eligibility verification provisions that were in SB 74,
which had been extremely successful across the country and
were anticipated to save the state money.
Vice-Chair Micciche commented that the $650,000 was the
most the state could spent on the eligibility analytics and
it was required in order to deliver $3.25 million in
savings.
Co-Chair Kelly expected the savings would be much higher
than $3.25 million.
Senator Dunleavy WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 21 was
ADOPTED.
2:59:35 PM
AT EASE
3:00:17 PM
RECONVENED
Co-Chair Kelly discussed Amendment 14. He referred to the
earlier discussion regarding where the funding was
directed, and whether it was a direct appropriation.
LACEY SANDERS, FISCAL ANALYST, LEGISLATIVE FINANCE
DIVISION, explained that the amendment would delete
$116,500 of UGF from the University of Alaska's Mat-Su
college and would directly appropriate an equal amount to
DEED for payment as a grant to Alaska Middle College
School.
Senator Dunleavy reiterated that the amendment did not
spend additional funds, and was only a transfer of funds.
Co-Chair Kelly WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 14 was
ADOPTED.
3:01:42 PM
AT EASE
3:03:01 PM
RECONVENED
Senator Dunleavy MOVED to RESCIND the action taken on
Amendment 19. There being NO OBJECTION, it was so ordered.
Amendment 19 was before the committee for consideration.
Senator Dunleavy OBJECTED to Amendment 19.
A roll call vote was taken on the motion to adopt Amendment
19.
IN FAVOR: Micciche, Olson, Bishop, Hoffman, Kelly
OPPOSED: MacKinnon, Dunleavy
The MOTION PASSED (5/2). Amendment 19 was ADOPTED.
Vice-Chair Micciche clarified that Amendment 16 utilized
DGF, and was not an add-in. The funds were from the Higher
Education Fund. He asked for Mr. Armstrong or Senator Olson
to corroborate the information.
Senator Olson concurred, and noted that Amendment 16 would
use DGF.
SB 139 was HEARD and HELD in committee for further
consideration.
SB 140 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
3:05:48 PM
The meeting was adjourned at 3:05 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 139 Amendment 1 Dunleavy.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 2 Dunleavy.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 4 Dunleavy.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 5 Dunleavy.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 6 Kelly.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 7 Kelly.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 8 Kelly.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 9 Kelly.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 13 MacKinnon.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 10 Kelly.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 15 Kelly Micchiche.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 16 Olson.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 17 Hoffman.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 18 MacKinnon.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 19 Bishop.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 20 Kelly.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 21 Kelly.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |
| SB 139 Amendment 14 Dunleavy.pdf |
SFIN 3/10/2016 9:00:00 AM |
SB 139 |