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." 9:18:38 AM AT EASE 9:24:52 AM RECONVENED 9:25:17 AM Senator Olson MOVED to ADOPT AMENDMENT 2 (copy on file): DEPARTMENT: Fund Capitalization APPROPRIATION: Fund Capitalization (No approp out) ALLOCATION: Trauma Care Fund ADD: $1,000,000 UOF (1004) as a new language subsection under FUND CAPITALIZATION (xx) The sum of$1,000,000 is appropriated from the general fund to the Trauma Care Fund (AS 18.0S.0S5(a)). It is the intent of the legislature that the Department of Health and Social Services develop a trauma care fund grant application process that includes a list of pre- approved uses in the application for trauma care funding. Co-Chair Meyer OBJECTED for discussion. Senator Olson explained AMENDMENT 2. Co-Chair Kelly asked for a description of the fund. JAMES ARMSTRONG, STAFF, SENATOR PETE KELLY, stated that the fund was capitalized when needed. Co-Chair Meyer REMOVED his objection. There being NO OBJECTION, AMENDMENT 2 was adopted. Senator Dunleavy MOVED to ADOPT AMENDMENT 3 (copy on file). Co-Chair Kelly OBJECTED for discussion. Senator Dunleavy explained AMENDMENT 3. He stated that the amendment would reduce unrestricted general fund (UGF) spending by $3.381 million across all agencies including the governor's office, legislature, and courts. The amount of the unallocated reduction was equal to 12.5 percent of agencies (UGF) portion of travel. Departments would have the flexibility to reduce their budgets where most appropriate. Co-Chair Kelly asked why the documentation was necessary. Mr. Armstrong explained that the document outlined the most appropriate way to equally distribute a 12.5 percent reduction. He noted that the second column to the right showed some funds that were added since the subcommittee process. Co-Chair Kelly stressed that, without the document, the legislation would not provide an equal distribution of travel reduction. Co-Chair Kelly REMOVED his objection. There being NO further OBJECTION, AMENDMENT 3 was adopted. Co-Chair Meyer MOVED to ADOPT AMENDMENT 4. Amend the SALARY AND BENEFIT ADJUSTMENTS subsections (a) and (b) 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, 2015, of the following ongoing collective bargaining agreements: (1) Public Employees Local 71, for the labor, trades and crafts unit; (2) Teachers' Education Association of Mt. Edgecumbe; (3) Alaska Correctional Officers Association, representing the correctional officers unit; (4) Confidential Employees Association, for the confidential unit; (5) Alaska Public Employees Association, for the supervisory unit; (6) Alaska State Employees Association, for the general government unit; (7) Public Safety Employees Association; (8) Alaska Vocational Technical Center Teacher's Unit. (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, 2015, for university employees who are not members of a collective bargaining unit and to implement the terms for the fiscal year ending June 30, 2015, of the following collective bargaining agreements: (1) University of Alaska Federation of Teachers; (2) Fairbanks Firefighters Union, IAFF Local 1324; (3) United Academics -American Association of University Professors, American Federation of Teachers; (4) United Academic -Adjuncts -American Association of University Professors, American Federation of Teachers; (5) Alaska Higher Education Crafts and Trades Employees, Local 6070. EXPLANATION: F our collective bargaining union agreements have been reached that are not yet included in the Senate operating budget. Alaska Vocational Technical Center Teacher's Unit DEPARTMENT: Labor and Workforce Development APPROPRIATION: Alaska Vocational Technical Center ALLOCATION: Alaska Vocational Technical Center ADD: $26,100 General Fund (1004) $1,700 Interagency Receipts (1007) $2,800 Statutory Designated Program Receipts (1108) Public Safety Employees Association DEPARTMENT: Public Safety APPROPRIATION: Various ALLOCATION: Various ADD: $510,500 General Fund (1004) $3,500 General Fund Program Receipts (1005) $9,700 Capital Improvement Project Receipts (1061) 600 Interagency Receipts (1007) $3,400 Federal Receipts (1002) DEPARTMENT: Transportation and Public Facilities APPROPRIATION: Various ALLOCATION: Various ADD: $73,100 International Airport Revenue Fund (1027) $4,800 Federal Receipts (1002) University of Alaska and United Academic -Adjuncts - American Association of University Professors, American Federation of Teachers DEPARTMENT: University of Alaska APPROPRIATION: University of Alaska ALLOCATION: Budget Reductions/Additions -System wide ADD: $174,800 General Fund (1004) $174,800 University Receipts (1048) Alaska Higher Education Crafts and Trades Employees, Local 6070 DEPARTMENT: University of Alaska APPROPRIATION: University of Alaska ALLOCATION: Budget Reductions/ Additions -System wide ADD: $279,900 General Fund (1004) $279,900 University Receipts (1048) Further explanation of agreements: The following collective bargaining unions have reached agreements for FY2015 through FY2017: Alaska Vocational Technical Center Teacher's Unit: FY2015 -1 percent Cost of living Adjustment FY2016 -1 percent Cost of living Adjustment FY2017 -1 percent Cost of living Adjustment Health insurance will be provided for the economy plan which is $1,371/month for FY2015, a reduction of $18 per employee per month. These reductions off-sets the FY2015 cost of living adjustment costs. Public Safety Employees Association: FY2015 -1 percent Cost of living Adjustment FY2016 -1 percent Cost of living Adjustment FY2017 -2 percent Cost of living Adjustment Health insurance will be provided for the economy plan which is $1,371/month for FY2015, a reduction of$18 per employee per month. These reduction off-sets the FY2015 cost of living adjustment costs. University of Alaska and United Academic -Adjuncts - American Association of University Professors, American Federation of Teachers: A tentative agreement between was reached on February 18, 2014 and includes a rate increase based on the number of semesters taught at the University of Alaska: 0-5 years 1 percent 6-11 years 2 percent There being NO OBJECTION, it was so ordered. Mr. Armstrong explained the amendment. Vice-Chair Fairclough spoke to the contracts that were just adopted. She appreciated those that had entered into the bargaining agreements, and understood that the state could not sustain continued increases. 9:30:34 AM Senator Olson MOVED to ADOPT AMENDMENT 5. DEPARTMENT: Health and Social Services APPROPRIATION: Public Health ALLOCATION: Health Planning and Systems Development ADD: $370,000 UOF (1004) EXPLANATION: The Senate Subcommittee reduced $1.2 million of UGF for the SHARP Program in FY15. Since the closeout, updated information has been received indicating that this cut will result in a reduction of funding needed to pay for existing contracts. The CS version "E" restored $615,500, but the program is still short $584,500. This amendment when combined with the increase in the Finance CS version "E" restores $985,500 of the reduction and ensures that the state funds existing contracts. With the change in the CS and this amendment, the net reduction to the program in FY15 is $214,500. Co-Chair Kelly OBJECTED for discussion. Senator Olson explained the amendment. Co-Chair Kelly felt that the amendment was a positive response to public testimony. Senator Olson remarked that the program was extremely important. Co-Chair Kelly REMOVED his objection. There being NO further OBJECTION, AMENDMENT 5 was adopted. 9:32:33 AM Senator Olson MOVED to ADOPT AMENDMENT 6. DEPARTMENT: Health and Social Services APPROPRIATION: Behavioral Health ALLOCATION: Community Action Prevention & Intervention Grants ADD: $370,000 UGF (1004), One-time funding ADD INTENT: It is the intent of the legislature that the appropriation to the Municipality of Anchorage for the Alaska Domestic Violence Intervention Project is one-time funding which will provide the resources necessary to bridge program operations until January 1,2015 when funding is expected to become available to them through other funding sources. It is also the intent of the legislature that the Alaska Domestic Violence Intervention Project secure other funding for ongoing operations, with no additional funding to be provided by the legislature. EXPLANATION: This amendment adds one-time funding for a grant to the Municipality of Anchorage for the Alaska Domestic Violence Intervention Project. Co-Chair Kelly OBJECTED for discussion. Senator Olson explained the amendment. Co-Chair Kelly REMOVED his objection. There being NO further OBJECTION, AMENDMENT 6 was adopted. Senator Bishop MOVED to ADOPT AMENDMENT 7. AMEND THE FOLLOWING LANGUAGE SECTION: Sec. IS. DEPARTMENT OF NATURAL RESOURCES. (e) If any portion of the federal receipts appropriated to the Department of Natural Resources for division of forestry wild land firefighting crews is not received, that amount is appropriated from the general fund to the Department of Natural Resources, fire suppression preparedness [ACTIVITY], for the purpose of paying costs of the division of forestry wild land firefighting crews for the fiscal year ending June 30, 2015. EXPLANATION: This amendment corrects the allocation name in the above language section. Co-Chair Kelly OBJECTED for discussion. Senator Bishop explained the amendment. Co-Chair Kelly REMOVED his objection. There being NO further OBJECTION, AMENDMENT 8 was adopted. 9:34:20 AM AT EASE 9:44:31 AM RECONVENED 9:44:41 AM Co-Chair Kelly MOVED to ADOPT AMENDMENT 8. Page 61, line 3, following "DEVELOPMENT.": Insert "(a)" Page 61, line 4: Delete "$24,999,999" Insert "$100,000,000" Page 61, following line 7: Insert new subsections to read: "(b) The sum of $100,000,000 is appropriated from the general fund to the Department of Education and Early Development to be distributed as state aid to districts for the fiscal year ending June 30, 2016, according to the average daily membership for each district adjusted under AS 14.l7.41O(b)(l )(A)-(d) for the fiscal year ending June 30, 2016. (c) It is the intent of the legislature that the appropriations made in subsections (a) And (b) will allow the Alaska public school system to maintain operations at a level sufficient to educate children and will provide time for all stakeholders to work with the legislature to identify innovative approaches and possible consolidation of services that will, over time, lower costs while maintaining a quality education system. It is also the intent of the legislature that this increased funding will serve as a bridge to develop a plan and identify solutions to implement these changes in an effort to recalibrate individual district budget spending levels to the 2014 fiscal year spending levels. Co-Chair Meyer OBJECTED for discussion. Co-Chair Kelly explained the amendment. Co-Chair Meyer REMOVED his objection. There being NO further OBJECTION, AMENDMENT 8 was adopted. Co-Chair Kelly told Senator Hoffman that he was added as a sponsor of the amendment. Senator Hoffman expressed support of the amendment, and remarked that many Alaskans were concerned with education. Co-Chair Kelly thanked the individuals who had helped with the operating budget development process. Mr. Armstrong stated that the technical motions would be available on the Legislative Finance Division website. Co-Chair Kelly felt that the budget acknowledged that education was important to the state. 9:50:58 AM AT EASE 9:51:42 AM RECONVENED Co-Chair Kelly announced that the reduction in the budget related to day-to-day agency operations. Co-Chair Meyer thanked the committee for the work on the operating budget. Co-Chair Meyer MOVED to REPORT SCS CSHB 266(FIN) as amended out of committee with individual recommendations, and instructed legislative legal and legislative finance to make the necessary technical and conforming changes There being NO OBJECTION, it was so ordered. Co-Chair Meyer MOVED to REPORT SCS CSHB 267(FIN) as amended out of committee with individual recommendations, and instructed legislative legal and legislative finance to make the necessary technical and conforming changes. There being NO OBJECTION, it was so ordered. Co-Chair Kelly expressed gratitude for the work of the committee. SCS CSHB 266(FIN) was REPORTED out of committee with a "do pass" recommendation. SCS CSHB 267(FIN) was REPORTED out of committee with a "do pass" recommendation. 9:55:11 AM RECESS 2:41:14 PM RECONVENED