CS FOR HOUSE BILL NO. 266(FIN) "An Act making appropriations for the operating and loan program expenses of state government and for certain programs, capitalizing funds, and making reappropriations; and providing for an effective date." CS FOR HOUSE BILL NO. 267(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." Co-Chair Meyer handed the gavel to Co-Chair Kelly. 5:13:11 PM Co-Chair Meyer MOVED to ADOPT the committee substitute for Senate CS HB 266 (FIN), work draft 28-GH2671\G (Wallace, 3/19/14). There being NO OBJECTION, it was so ordered. JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, referred to four Statewide Reports that were prepared by the Legislative Finance Division (copies on file). He stated that for all funds, the governor's proposal had $12.195 billion in total spending. The CS had $9.148 billion in total spending. The difference between the governor's proposal and the CS was $3.47 billion. He stressed that $3 billion for PERS was not contained in the CS. He looked at the general fund (GF), including designated general funds (DGF) and undesignated general funds (UGF). He reported that the governor's proposal had $5.878 billion; and the CS proposed $5.818 billion. The CS contained a reduction of nearly $60 million. He announced that one of the reports contained the day-to-day operations of the formula and non- programs contained within the budget using a comparison using UGF. He stated that the comparison did not take into account the $1.5 billion from statewide operations. Co-Chair Kelly wondered if the $1.5 billion was DGF. Mr. Armstrong replied that the $1.5 billion was DGF and statewide operations. Mr. Armstrong shared that, with the $1.5 billion removed, the subcommittee reports contained $33.641 million below the governor's proposal. The fourth report examined the agency day-to-day operations, and removed the non-formula portion of the budget. Under that analysis, the governor's proposal was $2.270 billion; and the current version spent $2.243 billion. Therefore, the CS was a reduction of $26.343 million. He announced that the current version removed K-12 formula education and Medicaid formula funding. The subcommittee work represented a 1.1 percent decrement to agency operations against the governor's FY 15 budget request. He announced that the governor also provided decrements to the budget. He stated that comparing the Senate CS to the management plan of FY 14, there was a $53.991 million or approximately 2.2 percent reduction in day-to-day operation of state government. 5:19:10 PM AT EASE 5:20:52 PM RECONVENED Co-Chair Meyer MOVED to ADOPT the committee substitute for Senate CS HB 267 (FIN), work draft 28-GH2673\Y (Wallace, 3/19/14). There being NO OBJECTION, it was so ordered. Mr. Armstrong shared that there were some language changes in HB 266. He stated that there were some negotiated contract settlements with the University of Alaska, but were not included in the CS. He shared that those issues would be dealt with at a later date. The infusion of $3 billion was also not included in the CS. He stated that there was intent language that was added by the other body into the language section, but he had not had adequate time to review that language. He announced that items related to crime victims' rights, recidivism reduction, and the Alaska Seafood Marketing Institute (ASMI) program funding would be addressed in the Conference Committee. He reported that the fuel trigger section, which contained $30 million as proposed by the governor, was reduced by $3 million. This represented a $9 million reduction, and a 25 percent reduction in the program from the FY 14 budget. There were numerous technical and financial changes, and stated that language comparisons could be found on the Legislative Finance website. He announced that the deadline for amendment submission was Friday, March 21, 2014 at 4:00pm to Co-Chair Kelly's office. Co-Chair Kelly encouraged the committee members to discuss the individual items that were included in the budget. Mr. Armstrong announced that his was his mother's birthday. CSHB 267(FIN) was HEARD and HELD in committee for further consideration. CSHB 266(FIN) was HEARD and HELD in committee for further consideration