CS FOR HOUSE BILL NO. 284(FIN) "An Act making appropriations for the operating and loan program expenses of state government and for certain programs, capitalizing funds, amending appropriations, and making reappropriations; and providing for an effective date." CS FOR HOUSE BILL NO. 285(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." 2:42:10 PM RECONVENED 2:42:25 PM Co-Chair Stedman moved to ADOPT Amendment number 1. Co-Chair Hoffman OBJECTED for purpose of discussion. 2:42:49 PM AT EASE 2:43:26 PM RECONVENED 2:43:30 PM Co-Chair Hoffman clarified that the working document before the committee SCS CSHB 284(FIN), version O. 2:43:38 PM Co-Chair Stedman MOVED to ADOPT Amendment number 1 for version O. Co-Chair Hoffman OBJECTED for the purpose of discussion. 2:43:47 PM TIM GRUSSENDORF, STAFF, SENATOR LYMAN HOFFMAN, discussed the new amendment: AMENDMENT #1 FY13 OPERATING BUDGET AMENDMENT OFFERED IN: The Senate Finance Committee TO: HB 284/HB 285 OFFERED BY: Senator Hoffman Part A Add the following subsection to the FUND TRANSFERS section after (d): The sum of $50,000,000 is appropriated from the general fund to the Alaska marine highway vessel replacement fund (AS 37.05.550). Effective Date 6/30/12 (FY12) Part B Add the following subsections to BUDGET RESERVE FUND section. (a) The sum of $1,750,000,000 is appropriated from the general fund to the statutory budget reserve fund (AS 37.05.540). Effective Date 6/30/12 (FY12) (b) The sum of $250,000,000 is appropriated from the general fund to the statutory budget reserve fund (AS 3 7.05.540). Effective Date 7/1/12 (FY13) Part C Add subsections to section 26. RETIREMENT SYSTEM FUNDING. (d) The sum of $500,000,000 is appropriated from the general fund to the Department of Administration for deposit in the defined benefit plan account in the public employees' retirement trust fund for payment of public employees' retirement system unfunded liability. (e) The sum of $500,000,000 is appropriated from the general fund to the Department of Administration for deposit in the defined benefit plan account in the teachers' retirement trust fund for payment of teachers' retirement system unfunded liability. (f) The sum of $50,000,000 is appropriated from the general fund to the judicial retirement trust fund (AS 22.25.048) for payment of the judicial retirement system unfunded liability. Effective Date for Part C is 6/30/12 (FY12) PART B DEPARTMENT: Commerce, Community and Economic Development APPROPRIATION: Community and Regional Affairs ALLOCATION: Community and Regional Affairs ADD: $200,000 General Fund Match, 1003 EXPLANATION: This amendment adds funding to the Division of Community and Regional Affairs for a Named Recipient Grant to Kawerak, Inc. The grant will be used to cover administration and 50% match to the federal Essential Air Service program for the city of Diomede. PART E DEPARTMENT: Commerce, Community and Economic Development APPROPRIATION: Corporations, Business & Professional Licensing ALLOCATION: Professional Licensing DELETE Intent Language: It is the intent of the legislature that the Department of Commerce, Community and Economic Development set license fees approximately equal to the cost of regulation per AS 08.01.065(c). Further, it is the intent of the legislature that the Department of Commerce, Community and Economic Development submit a six year report annually to the legislature that includes at least the following information for each licensing board: revenues from license fees; revenues from other sources; expenditures broken out by direct expenditures, RSAs for investigations, RSAs for other services, interdepartmental cost allocation plans, departmental cost allocation plans and internal cost sharing plans; number of licensees; carry forward balance and proposed license fee increase/decrease. ADD Intent Language: It is the intent of the legislature that the Department of Commerce, Community and Economic Development set license fees approximately equal to the cost of regulation per AS 08.01.065(c). Further, it is the intent of the legislature that the Department of Commerce, Community and Economic Development submit a six year report annually to the legislature that includes at least the following information for each licensing board: revenues from license fees; revenues from other sources; expenditures by line item, including separate reporting for investigative costs, administrative costs, departmental and other cost allocation plans; number of licensees; carryforward balance; and potential license fee changes based on statistical analysis. EXPLANATION: This amendment clarifies intent language that was added by the Senate Finance Subcommittee. PART F DEPARTMENT: Education & Early Development APPROPRIATION: Teaching & Learning Support ALLOCATION: Early Learning Coordination ADD: $250,000 GF (1004) EXPLANATION: The funding added to the grants line for the Parents as Teachers program is to support pre- kindergarten, parent-based programs throughout the state. The House added $250,000 UGF as one-time funding. The Governor did not request additional funding for the program but $300,000 is included in the base budget for the Parents as Teachers program. PART G DEPARTMENT: Education & Early Development APPROPRIATION: Teaching & Learning Support ALLOCATION: Early Learning Coordination ADD: $400,000 GF (1004) EXPLANATION: The funding added to the grants line for the Best Beginnings program is to strengthen and expand early learning partnerships, expand the Imagination Libraries, and provide additional parent resources to increase public engagement in early literacy and learning. The House added $250,000 UGF. No additional funding was included in the Governor's Amended budget for Best Beginnings but $612,500 is included in the base budget for this program. PART H DEPARTMENT: Fish and Game APPROPRIATION: Commercial Fisheries ALLOCATION: Headquarters Fisheries Management ADD: $300,000 General Fund (1004) Explanation: This project will provide for genetic- based stock composition estimates of sockeye salmon harvested in Chatham Strait, Icy Strait, and District 15 fisheries. $300,000 annually is needed for four years. The sockeye stock composition data from the commercial fisheries would, in conjunction with existing escapement monitoring projects, provide for more complete run reconstruction for the stocks. The six reporting groups identified as being important in this study include Chilkat River, Chilkoot River, Taku River, northern Chatham Strait (conglomerate of several small stocks), Port Snettisham (Crescent Lake/Speel Lake/Snettisham Hatchery), and "Other" (sockeye salmon not included in any of the other reporting groups). Mixed stock fishery samples will be collected from selected purse seine harvests (e.g., statistical area 112-16 Hawk Inlet shoreline, 112- 14/114-27 Augusta/Whitestone shoreline, and 112-17 west Admiralty shoreline), the District 15 drift gillnet fishery, and other area fisheries harvesting sockeye salmon. Fishery harvests will be sampled to achieve levels of precision and accuracy sufficient for fishery management. Approximately 9,600 samples are expected to be used annually for mixed stock analysis. In addition to mixed stock fishery samples the Department will attempt to obtain baseline genetic samples from several (Hasselborg, Gut, Lake Eva, Sitkoh, Kutlaku, and Pavlof small sockeye systems in Chatham Strait. These populations are not yet adequately represented in the sockeye salmon genetic baseline. PART I DEPARTMENT: Office of the Governor APPROPRIATION: Office of Management and Budget Insert Intent Language: It is the intent of the legislature that the office of management and budget develop a plan to address the declining balance of the oil and hazardous substance release prevention and response fund. The plan should include an analysis of prior expenditures from the fund for the remediation of state owned contaminated sites and a proposal to expeditiously remediate state owned contaminated sites. PART J DEPARTMENT: Health and Social Services APPROPRIATION: Office of Children's Services ALLOCATION: Children's Services Management ADD: It is the intent of the legislature that $200,000 GF be used for the Education and Training Voucher program within the Independent Living Program. Explanation: The House added the above intent language and $200,000 UGF for the Education and Training Voucher program within the Independent Living Program. The Senate Subcommittee added the funding but not the intent language. PART K Add a subsection to Sec. 14. DEPARTMENT OF HEALTH AND SOCIAL SERVICES. (b) The sum of $5,000,000 is appropriated from the general fund to the Department of Health and Social Services, public assistance, energy assistance program, for the purpose of making payments under AS 47.25.621 - 47.25.626, for the fiscal year ending June 30, 2013. Explanation: This amendment appropriates $5 million of UGF for the Energy Assistance program. This funding is in excess of the statutory formula and exceeds the amount required to fully fund all applications for assistance for Alaska affordable heating payments under AS 47.25.621 - 47.25.626, and will be distributed according to AS 47.25.623(d)(2). PART L DEPARTMENT: Health & Social Services APPROPRIATION: Human Services Community Matching Grant ALLOCATION: Human Services Community Matching Grant ADD: $200,000 GF 1004 EXPLANATION: Increase funding by $200,000 (from $1,685,300 to $1,885,300) to keep pace with increasing costs and need. PART M DEPARTMENT: Health & Social Services APPROPRIATION: Community Initiative Matching Grants ALLOCATION: Community Initiative Matching Grants ADD: $150,000 UGF 1004 EXPLANATION: This amendment increases UGF in this component by $150,000 (from $744,300 to $894,300) to keep pace with increasing costs and need. PART N DEPARTMENT: Transportation and Public Facilities APPROPRIATION: Highways, Aviation and Facilities ALLOCATION: Central Region Highways and Aviation DELETE: $897,400 of Unrestricted General Funds (Fund Code 1004) ADD: $897,400 of Vehicle Rental Tax Receipts (Designated General Funds -Fund Code 1200). EXPLANATION: The House budget utilized Vehicle Rental Tax Receipts (derived from car rentals) in the amount of $850,000 for maintenance of roads in the Central Region. This amendment matches the House level and adds the remaining available receipts ($47,400) for road maintenance in FY13. PART 0 LTC and TEAME bargaining unit agreements: FY2013 OPERATING BUDGET AMENDMENT OFFERED IN: The Senate Finance Committee TO: CSHB 284(FIN) CSHB 285(FIN) OFFERED BY: ADD: Amend the SALARY AND BENEFIT ADJUSTMENTS section as follows: SALARY AND BENEFIT ADJUSTMENTS. (a) The operating budget appropriations made in sec. 1 of this Act include amounts for salary and benefit adjustments for public officials, officers, and employees of the executive branch, Alaska Court System employees, employees of the legislature, and legislators and to implement the terms for the fiscal year ending June 30, 2013, of the following ongoing collective bargaining agreements: (1) Alaska Public Employees Association, for the confidential unit; (2) Alaska State Employees Association, for the general government unit; (3) Alaska Public Employees Association, for the supervisory unit; (4) Alaska Vocational Technical Center Teachers' Association, National Education Association, representing the employees of the Alaska Vocational Technical Center; (5) International Organization of Masters, Mates, and Pilots, for the masters, mates, and pilots unit; (6) Inlandboatmen's Union of the Pacific, Alaska Region, for the unlicensed marine unit; (7) Marine Engineers Beneficial Association; (8) Public Safety Employees Association, representing the regularly public safety officers unit; (9) Public Employees Local 71, for the labor, trades, and crafts unit; (10) Teachers' Education Association of Mt. Edgecumbe. (b) The operating budget appropriations made to the University of Alaska in sec. 1 of this Act include amounts for salary and benefit adjustments for the fiscal year ending June 30, 2013, for university employees who are not members of a collective bargaining unit and for the terms of the current agreements for the fiscal year ending June 30, 2013, providing for the staff benefits for university employees represented by the following entities: (1) Alaska Higher Education Crafts and Trades Employees, Local 6070, APEA/AFT (AFL-CIO); (2) University of Alaska Federation of Teachers; (3) United Academics-AAUP/AFT; (4) United Academics-Adjuncts; (5) Fairbanks Firefighters Association, IAFF Local 1324. (c) If a collective bargaining agreement listed, in (a) of this section is not ratified by the membership of the respective collective bargaining unit, the appropriations made by this Act applicable to the collective bargaining unit's agreement are reduced proportionately by the amount for the collective bargaining agreement, and the corresponding funding source amounts are reduced accordingly (d) If a collective bargaining agreement listed in (b) of this section is not ratified by the membership of the respective collective bargaining unit and approved by the Board of Regents of the University of Alaska, the appropriations made by this Act applicable to the collective bargaining unit's agreement are reduced proportionately by the amount for the collective bargaining agreement, and the corresponding funding source amounts are reduced accordingly. EXPLANATION: The State of Alaska has reached agreement on bargaining unit terms with the Public Employees Local 71, for the labor, trades, and crafts unit, and the Teachers' Education Association of Mt. Edgecombe. 2:49:23 PM KAREN REHFELD, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET appreciated the inclusion of the amendment's items. She hoped to continue working with the legislature on refining the two versions of the bill. 2:49:52 PM Co-Chair Hoffman removed his OBJECTION. There being NO FURTHER OBJECTION, Amendment number 1 for version O was ADOPTED. 2:50:04 PM Co-Chair Stedman MOVED to report SCS CSHB 284(FIN) out of committee with individual recommendations. There being no OBJECTION, SCS CSHB 284(FIN) was REPORTED out of committee with a "do pass" recommendation. 2:50:25 PM Co-Chair Stedman MOVED to report SCS CSHB 285(FIN) out of committee with individual recommendations. There being NO OBJECTION, SCS CSHB 285(FIN) was REPORTED out of committee with a "do pass" recommendation. 2:50:46 PM Co-Chair Stedman MOVED that authorization be given to the Legislative Finance Division and Legislative Legal Services to make any necessary technical and/or conforming changes to SCS CS HB 284(FIN) and SCS CS HB 285(FIN). 2:51:06 PM There being NO OBJECTION, authorization was given to the Legislative Finance Division and Legislative Legal Services to make any necessary technical and/or conforming changes to SCS CS HB 284(FIN) and SCS CS HB 285(FIN). 2:51:08 PM AT EASE 2:51:23 PM RECONVENED 2:51:29 PM Co-Chair Hoffman expressed appreciation for the Legislative Finance Division and the Senate Secretaries and acknowledged the savings of $2 billion, which exemplified fiscal responsibility. He pointed out the $1 billion allocated toward the unfunded liabilities in the PERS and TRS system. He expressed concern about the absence of a solution to the long-term needs of education. He hoped to include additional funding for education through fiscal notes for legislation heard in the House.