Alaska Budget Vetos, June 3, 2010

Governor Parnell signed HB 300, HB 302, and SB 230 into law on Thursday, June 3. He said the capital budget passed by the legislature was significantly larger than his proposed budget. Final education funding and a list of vetoes is contained in the Alaska Education Update, June 3, 2010 edition.

Governor Parnell said that in talking to legislators, he found that all the small school projects included in the capital budget are school district priorities, but that they would never rise to the level of being funded without earmarks from the legislature. So earmarking by legislators is an appropriate method for funding those projects. He said that legislators know what the priorities of their districts are better than he does.

There is a new web tool on the State of Alaska website with a map showing projects by geographic area:
http://gov.alaska.gov/parnell/press-room/2010-budget/budget-map.html

Current Status of Passed Legislation

Most education-related legislation that passed the legislature is still awaiting transmittal to the governor.  At the end of April, Legal Services had considerably over 100 bills it was still working on enrolling (checking for errors, ommissions, and correct form).

After Legal Services completes enrollment of legislation, it has to be signed by the Speaker of the House and the President of the Senate, and then it is sent to the governor. Speaker Chenault is.....

Sine Die

The Twenty-Sixth Alaska State Legislature adjourned their second session early in the morning on Monday, April 19.   A new legislature will convene on Tuesday, January 18, 2011 at 1:00 p.m.  The Senate Bipartisan Working Group held a press availability at the end of session.  Both the House and the Senate ran past midnight on the 90th day, for the first time since the 90-day session limit was enacted.

Sen. President Gary Stevens said they have an analysis on the issue from legislative attorneys that says they can go past 90 days.  Legislative attorneys have told them that if anyone sued, the legislature would probably win.  He said.....

House Passes Capital Budget

The House passed SB 230 - Capital Budget a few minutes ago, and have recessed until 9:15 p.m.

HB 424 - G.O. Bonds for Education/Library/Research Facilities

The Senate Finance Committee just moved HB 424 with a committee substitute.  The bill is on the Senate Calendar. 

Miles Baker, staff to Sen. Stedman said the only change in the committee substitute is the removal of an appropriation to the state bond committee of $4.766 million to pay expenses related to the issuance and sale of bonds. Funding for that item was added to SB 230 - Capital Budget and pulled out of HB 424.

Legislature Addresses Moore vs. State in Conference Committee

The Conference Committee met Thursday to consider open items in HB 300 and HB 302. During the last hearing on Monday, April 12, the committee dealt with all open items in the Dept. of Education & Early Development’s budget, so there are no items open in that department. Sen. Hoffman said the next meeting would address the last two open items (one in the Governor’s Office and one in the Dept. of Revenue) and any fiscal notes.

A language adoption was made for Item 3 (Conditional Language, K-12 Support) on the DEED motion sheet. The language states that it is the intent of the legislature that up to $7,000,000 of the amount appropriated from the public school trust fund, AS 37.14.110, for public school programs may be used to address issues raised in Moore vs. Alaska. Those issues include curriculum design, professional training and retention, pre-kindergarten and other intensive early learning, and remediation plans for individual students. Affected school districts include the Yupiit, Lower Yukon, Yukon Flats, Yukon Koyukuk, and Northwest Arctic.

Senate Floor Debate on SB 230 - Capital Budget

So much for posting every day until the end of session!  Oh dear!  How about a posting on yesterday's floor debate on the capital budget?

SB 230 – Budget: Capital, Supplemental, & Other Appropriations

http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20230&session=26

The Senate passed CSSB 230(FIN) 19 yeas, 1 nay. Sen. Bunde voted against the bill. SB 230 has been transmitted to the House and was referred to the House Finance Committee. It is scheduled for a hearing on Wednesday, April 14 at 8:30 a.m. (See the “Saturday, April 10, 2010 CSSB 230(FIN) AKEDUPDATE” for a list of education-related projects.)

Sen. Bunde offered an amendment to remove many of the projects in SB 230. He thought a more appropriate place for the projects was in a bond package. The Finance Committee co-chairmen disagreed. Sen. Stedman said.....

SB 230 - Capital Budget Update

Senate Finance adopted a new committee substitute for SB 230 and passed the bill out of committee Saturday evening.  The biggest change in the new cs is a new section adding $380 million in G.O. bond projects, $360 million of which are for education projects. 

G.O. Bond Education Projects:.....

Education-Related Items in CSSB 230(FIN)

Major Maintenance:
• $1,700,000 – Mt. Edgecumbe deferred maintenance
• $84,337 – Nome Beltz Jr./Sr. fire alarm replacement
• $29,807 – Nome Beltz Jr./Sr. emergency generator auto switch replacement
• $1,202,914 – Metlakatla High School Renovation Alternates
• $1,762,541 – Whittier K-12 sprinkler install & interior renovations
• $123,701 – Yup’ik Voc Ed Building water service & boiler replacement
• $80,729 – Yup’ik Voc Ed Building roof replacement
• $21,306,131 – Service High School renovation
• $180,491 – Mosquito Lake Elementary mechanical upgrades

DOT/PF:
• $200,000 – Debarr Road school zone
• $1,100,000 – Fritz Cove to Auke Bay, including school intersection improvements
• $1,000,000 – Safe Routes to Schools (statewide)
• $4,000,000 – Sand Point: School Loop Road Rehabilitation
• $800,000 – Sitka: Cross Trail construction – High School to Baranof, Charles, Yaw, and Pherson Streets

DCCED Grants to Recipients:
• $300,000 – Copper River School District – Copper River Connects
• $800,000 – Toksook Bay Early Learning Center
• $140,000 – Yukon-Koyukuk School District – Jimmy Huntington High School Mold Remediation
• $520,000 – Mears Middle School Locker Replacement
• $1,140,000 – Salcha Elementary School Exterior Envelope Replacement & Upgrade
• $430,000 – Ticasuk Brown Elementary School Septic System Replacement
• $990,000 – Galena City School District Central Steam Plant Upgrade
• $100,000 – Trapper Creek Elementary School Roof Replacement
• $1,000,000 – Valdez High School Fire Alarm/Sprinkler Replacement

NPRA Impact Grants:
• $251,243 – North Slope Borough School Counselor Grant

Reappropriations:
• $12,000 – Chatham School District, for equipment purchases and upgrades (reappropriated from Chatham School District van purchase)
• $37,500 – Chatham School District, for projects, equipment, and improvements for Angoon Schools (reappropriated from Angoon road grader)

Other:
• $500,000 – Service High School Football Field Turf Design and Construction
• $500,000 – South High School Artificial Turf Field Design and Construction
• $20,000 – Central Middle School Stage Floor Refinishing, and Projector Screen, Sound System, and Curtains Replacement and Installation

HB 424 - G.O. Bonds for Education Projects

HB 424 – G.O. Bonds for Education Projects, By the House Finance Committee

Introduced today, HB 424 provides for the issuance of general obligation bonds in a principal amount of not more than $1,000,000 for the purpose of paying the cost of education projects for public schools and the University of Alaska. The bill specifies that $500,000 will be appropriated to DEED for public school projects, and $500,000 will be appropriated to the University of Alaska for university projects.

During the afternoon portion of today’s House Finance Committee meeting, Chairman Stoltze said that the $1,000,000 in HB 424 is just a place-holder amount, and will not necessarily be the final amount in the bill.

HB 424 was referred to the House Finance Committee, and is scheduled for a hearing on Thursday, April 8 at 9:00 a.m.

House Conference Committee Members Appointed, HB 300

Conference committee members have been appointed from the House for HB 300 – Operating Budget. They are Reps. Hawker, Stoltze, and Gara.

The Senate has not yet appointed conference committee members, so the Legislature is not yet under the 24-Hour Rule for hearing bills. However, any bill that has had a previous hearing in a committee can be brought up without notice under “Bills previously heard/scheduled.” So you will see committees bringing up a lot of bills for perfunctory hearings at this time. That way they can bring them up later without having to give any additional notice.

A few notes on current action:

The House is adjourned until Monday, so I guess they are taking an Easter break. Even though the Senate passed HB 300 - Operating Budget on Tuesday, they waited until the House adjourned on Thursday before transmitting the bill back to the house, thereby postponing when the 24-hour rule will kick in. Probably that will happen Monday.

Sen. Hoffman said in floor discussion on SB 237 that there will need to be some minor changes made to the bill in the house in order to accomodate rural areas not in REAA's and not able to fund school facilities through bonding. So I believe the legislature is going to try to cover every possible situation in the state with this bill. That will make a lot of people happy, I am sure!

Rep. Doogan said in his weekly newsletter today that there is rumored to be a bond proposition in the works. Projects supposedly under consideration for the proposition include the UAF Life Sciences Facility, a gym in Anchorage (The UAA Sports Arena?), a new state library/archives/museum facility in Juneau, and several schools in rural Alaska. I'm guessing those would be schools in Alakanuk, Kipnuk, and Napaskiak.

I will try to post updates every day between now and the end of session.
Shana

SB 237 - School Construction Debt Reimbursement on Senate Calendar Thursday, April 1

Big news, an important bill is moving: SB 237 is on the Senate Calendar for tomorrow, Thursday, April 1. 
http://www.legis.state.ak.us/basis/get_bill.asp?bill=SB%20237&session=26

Senate Bipartisan Working Group Press Availability

Scholarship Proposal
Sen. President Gary Stevens said the Senate has been meeting with the House leadership and the Governor. Stevens said that one of the big issues the legislature is working on as the session comes to a close is.....

House Passes Supplemental Budget

The House passed CSHB 326(FIN) on Monday, March 29, with all 40 representatives voting in favor of passage. No changes were made to the bill on the floor. It has been transmitted to the Senate, and will be referred to the Senate Finance Committee. It is scheduled for a hearing in that committee on Thursday, April 1 at 9:00 a.m.

House Finance Committee Co-Chairman Mike Hawker said HB 326 contains only operating supplemental costs, and authorizes $1.7 billion in additional spending. Of that amount, $1.1 billion forward funds education, $401 million is appropriated to repay the Constitutional Budget Reserve, $600,000 is appropriated to the Agricultural Revolving Loan Fund, there is $125 million for the Marine Highway Stabilization Fund, and $79,000 goes into the Small Business Development Revolving Loan Fund. HB 326 also re-appropriates excess Marine Highway funds for ferry service for the Aleutians for the remainder of FY10 and for all of FY11.

Rep. Woody Salmon noted that HB 326 is made possible by the 2007 oil tax reform.

24-Hour Rule

The operating budget, HB 300 is on the floor of the Senate on Monday, March 29. When it passes, it will be returned to the House for concurrence (a fancy way to say they agree with the changes the Senate has made to the bill). I can guarantee you the House will not concur with the Senate amendments to the bill.

The House will then send a message to the Senate asking them to recede from their amendments (a fancy way to ask the Senate to accept the House version of the operating budget). I can guarantee you that will not happen either.

At that point, a conference committee consisting of three members of the House and three members of the Senate will be appointed. Once the conference committee for the operating budget is appointed, under Uniform Rule 23 (d) committee chairmen are only required to give 24-hour notice to hear a bill. That is the 24-hour rule, and things will speed up considerably at that point.

Senate Finance and the FY11 Operating Budget

The Senate Finance Committee heard subcommittee reports during today’s hearing. The committee adopted the subcommittee reports and a committee substitute incorporating the subcommittee reports. Chairman Lyman Hoffman said the goal is to live within the state’s means, but still deliver the services Alaskans expect.

Amendments from committee members are due by 3:00 p.m. on Wednesday. During the amendment process, Hoffman said the committee will.....

Senate Finance Proposes Major Policy Shift for Funding School Construction

The Senate Finance Committee proposed a major change today in how school facilities across the state should be funded.  The committee heard and held SB 237, and adopted a committee substitute for the bill.  

Jay Livey, staff to Sen. Hoffman, reviewed the committee substitute for SB 237. The bill will provide a more predictable method of funding for both REAA’s and municipal school districts.

Senate Finance Working on Capital and Deferred Maintenance All Week

The Senate Finance Committee began hearings on SB 230 and SB 253 this morning. Chairman Stedman announced that the committee will be hearing these two bills in both the morning and the afternoon for the rest of the week. The committee will be hearing one department at a time, beginning with the departments with the largest requests and working down the list. The committee has not heard any Dept. of Education & Early Development projects as of the time of this posting today, and it is unlikely they will get to DEED today, and possibly not even tomorrow. 
Shana

HB 350 - Public School Funding - Required Local Contribution

The House Education Committee heard and moved HB 350 today. The committee did not make any changes to the bill. It moves next to the House Finance Committee.

Chairman Seaton noted that there had been some misunderstanding regarding what HB 350 does. HB 350 does not change basic need. The only thing HB 350 changes is.....