CS FOR HOUSE BILL NO. 2001(FIN) am "An Act making appropriations for the operating and loan program expenses of state government and for certain programs; making appropriations for the operating expenses of the state's integrated comprehensive mental health program; capitalizing funds and repealing appropriations; 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." 1:14:47 PM JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, stated the bill would fully-fund the K-12 foundation formula, at roughly $16.5 million for than HB 72. The bargaining units were restored and funded. He stated that page 64 approved the language, and Sections 4 through 6 listed the funding sources. The draft had a provision for pay increases for non-covered employees contingent on the governor's veto of HB 176, which was $11.8 million. There was an unallocated reduction on page 25, lines 24 through 25 of $29.8 million that corresponded with the covered and non-covered increases. If a supermajority vote was not obtained then K- 12 foundation funds would be prorated at the same level in HB 72; all of the bargaining units would be rejected, and the cost of living pay increases would not be funded; and there would be an unallocated reduction of $9.8 million. He explained that there was an amendment that added $15 million in CBR funds for the following items: $700,000 for Parents as Teachers; $2 million Pre-K grants; $2.5 million for Office of Children's Services (OCS) front-line social workers; $2.8 million for the senior benefits program; $1.750 million for the Alaska Marine Highway System; $5 million for the University of Alaska; and $250,000 for public broadcasting. The amendment also added $681,700 in federal funds, and limited the FY 15 CBR access to a maximum of $500 million. Co-Chair Kelly remarked that the governor did not have a fully-funded budget, which was the reason for the current special session. He wondered if the current bill was a fully-funded budget. 1:18:17 PM DAVID TEAL, DIRECTOR, LEGISLATIVE FINANCE DIVISION, replied that the current version did not fully fund the budget. The FY 16 supermajority vote gave access to $15 million, and was the maximum that could be withdrawn from the CBR. Co-Chair Kelly wondered what was needed from the savings account to fully fund the budget. Mr. Teal replied that approximately $3 billion was required to fully fund the budget. Co-Chair Kelly stated that the budget was $3 billion, and only $15 million would be available. 1:19:05 PM RECESSED