CS FOR SENATE BILL NO. 160(FIN) "An Act making and amending appropriations, including capital appropriations, supplemental appropriations, and other appropriations; making appropriations to capitalize funds; and providing for an effective date." Vice-chair Fairclough MOVED to ADOPT HCS CSSB 160(FIN), Work Draft 27-GS2600\T (4/13/12, Martin) as a working document. JAMES ARMSTRONG, STAFF, REPRESENTATIVE BILL STOLTZE, explained that the CS contained a $28 million increase over the previous draft version. He noted that $25 million of the increase was primarily due to education spending found on Page 176, Section 20. Some technical changes still needed consideration. He requested that the committee members review the CS and corresponding reports generated by the Legislative Finance Division. The final draft would be presented to the committee during the afternoon meeting. Co-Chair Stoltze OPENED public testimony. Co-Chair Stoltze CLOSED public testimony. Mr. Armstrong indicated that the CS was available to the public on BASIS found under the bill number in the documents box on the bill page. 10:57:21 AM RECESSED 3:39:51 PM RECONVENED Vice-chair Fairclough MOVED to ADOPT HCS CSSB 160(FIN), Work Draft 27-GS2600\O (4/14/12, Martin). Co-Chair Stoltze OBJECTED for purpose of discussion. Mr. Armstrong briefly described the changes in the CS. He mentioned that net zero changes were made in District 39, and technical alterations completed throughout the bill. He noted an additional appropriation of $4 million to the Blood Bank of Alaska. The total amount appropriated in the Capital Budget was $2,906,002.5 [billion.] The total amount of general funds appropriated was $1.959, 439.7 and $51,659.7 [million] in designated general funds, $66,974.4 [million] in other state funds and $829,928.8 in federal receipts. He furthered that a new re-appropriation section of carry forward funds was included by request from the governor. Co-Chair Stoltze WITHDREW his OBJECTION. There being NO further OBJECTION, the committee substitute was ADOPTED. Co-Chair Stoltze MOVED to ADOPT Amendment 1: Sec.20. DEPARTMENT OF HEALTH AND SOCIAL SERVICES An amount equal to 50 percent of the revenue collected during the fiscal year ending June 30, 2011, from the alcoholic beverage tax (AS 43.60.010), not to exceed $19,300,400, is appropriated from the general fund to the Department of Health and Social Services for behavioral health grants under AS 47.37.030 for the fiscal years ending June 30, 2013, June 30, 2014, and June 30, 2015. 3:43:21 PM Vice-chair Fairclough OBJECTED for the purpose of discussion. Mr. Armstrong explained Amendment 1. He reported that the amendment removed 50 percent of revenue collected from the FY 2012 fiscal year from the alcoholic beverage tax and appropriated the funds to the Department of Health and Social Services for behavioral health grants for the next three fiscal years. Co-Chair Stoltze expressed concern about procedure. He felt that the amendment was best addressed through legislation but agreed to make an exception. Vice-chair Fairclough WITHDREW her OBJECTION. There being NO OBJECTION, it was so ordered. Amendment 1 was ADOPTED. Co-Chair Thomas MOVED to ADOPT Amendment 2: Page 101, following line 30: Insert new material to read: "Appropriation Items 200,000 General Fund 200,000 Takshanuk Watershed Council - Land Acquisition and Conservation (HB 5)" Adjust fund sources and totals accordingly Delete Section 29 There being NO OBJECTION, it was so ordered. Amendment 2 was ADOPTED. Representative Wilson MOVED to ADOPT Amendment 3. Insert new project on Page 85, after line 25 Golden Valley Electrical Association - Liquefied Natural $3,750,000 Fas Facility - Engineering and Design Fund Source: General Funds (1004) REPRESENTATIVE STEVE THOMPSON, explained the reasons for Amendment 3. He communicated that the amendment adds $3,750,000 to the capital budget for a plan to truck natural gas into Fairbanks. The funds were needed for engineering and design work. Representative Wilson added that the funds helped keep energy costs lower for rate payers. Without the additional funding money from the energy co-op savings account would have been needed. She thanked the co-chair for the amendment. There being NO OBJECTION, it was so ordered. Amendment 3 was ADOPTED. 3:47:18 PM AT EASE 3:48:22 PM RECONVENED Co-Chair Stoltze noted the compressed schedule for completion of the capital budget. He had hoped for more time for discovery and public process but commended the collaborative effort between the legislative bodies. Representative Doogan announced that he did not support the FY 2013 capital budget and did not intend to vote in favor of the bill. He would explain his policy reasons on the house floor. Representative Gara commented that "a lot of important things" were contained in the capital budget. He also felt the budget was "too big" and was uncertain how he was going to vote. He stated that the budget was, "too big and good at the same time." Vice-chair Fairclough thanked the Co-chairs office's for all of their hard work on the budget. She supported the capital budget with the caveat that future budgets remain uncertain with the decline in oil production. 3:53:18 PM Representative Guttenberg commented that he received a lot of feedback on the capital budget. He opined that the capital budget process "may not be perfect but it's the best one around." He felt that the process "turned the wealth of the state back to the people." The budget accomplished a lot of good things for the state. Representative Wilson thanked the Co-chairs staff for their hard work. She thought that the budget contained some good appropriations to help Fairbanks achieve lower energy costs. Co-Chair Thomas MOVED to report HCS CSSB 160(FIN) out of committee with individual recommendations. HCS CSSB 160(FIN) was REPORTED out of committee with a "do pass" recommendation as amended. 3:56:31 PM AT EASE 3:56:38 PM RECONVENED 3:57:53 PM RECESSED 4:33:46 PM RECONVENED