SENATE BILL NO. 40 "An Act making supplemental appropriations, capital appropriations, and other appropriations; making reappropriations; amending appropriations; repealing appropriations; making appropriations to capitalize funds; and providing for an effective date." 9:51:33 AM Senator Dunleavy wondered how the budget approach reduced the budget by 25 percent. PAT PITNEY, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR replied that the budget reduced the agency operating budgets by approximately 6 percent. She stated that, over a four-year timeframe, it was the first step in a 25 percent reduction. She stressed that this was a first step, and remarked that the solutions would be more dramatic as the pressure was building. Ms. Pitney looked at line 4 of the FY 15 Supplemental Budget Amendment Spreadsheet (copy on file). She stated that it was a request for emergency repairs for the State Forest Road System in the Tanana Valley State Forest. She shared that it was a request that had been presented on multiple occasions. The need became more apparent recently, which was why it did not appear in the previous versions of the supplemental budget. The request was an $896,000 road repair, which was needed because of the rain. The revenue from the forest was approximately $250,000 per year, so the repair was required to maintain the revenue. Ms. Pitney looked at line 9, which was a reappropriation of two projects. The Harbor Program would not be complete because of an alternative funding source. The Glenn Highway ruts would be complete, plus additional federal funds. The reappropriations allowed DOT/PF to install injection wells. Ms. Pitney addressed lines 10 and 11, which were airport repairs fund source changes. They were originally in the construction fund and were moved to the airport fund. These were net zero changes, but changing the fund source for project completions. Ms. Pitney looked at line 12 was a repeal of $2.7 million for Alaska Gasline Inducement Act (AGIA). Ms. Pitney explained lines 13 and 14. The items were intended to note that there were appropriations in the previous year that exceeded the fund balance of the funds that they were originated. Vice-Chair Micciche felt that the final operating budget would result in a great amount of discomfort. SB 40 was HEARD and HELD in committee for further consideration.