Dear Friends and Neighbors:

The Governor has submitted two pieces of legislation which comprise the supplemental budget request for FY '03 -- the budget year ending June 30, 2003. A supplemental budget request is just what it sounds like -- additional funds being requested to cover costs during the FY '03 budget year.

There are many reasons for supplemental requests: disasters that cause increased funding, programs that were not fully funded during the 2002 legislative session, unanticipated caseload growth, etc.

The Governor introduced HB 100 as the "fast-track" supplemental. This is a bill that contains requests for $9.3 million in state general funds for items in which funding is needed prior to mid-May. HB 110 is the "regular" supplemental and that totals some $54 million in state general funds.

Our Legislative Finance Division had estimated that the total supplemental package would be $140 million; however, $55 million was realized by not included the FairShare federal funds. This amount represents funds that the Federal government has disallowed under the FairShare Medicaid program. The Governor did not include this amount at this time because the State is in the process of appealing the decision and a decision is expected by spring. (I'm not sure this is prudent because the chance of prevailing on appeal is not good.)

The actual total for the two bills is $95.9 million and includes both state and federal funding receipts.

I have listed below the highlights of both bills. If you want further information, you may look at the individual bills by visiting the Legislature's website, http://www.legis.state.ak.us, select Bill Action and Status, and then typing in the bill number in the button box.

• $7 million of the supplemental requests covers programs that were short-funded last session. Short funding may occur due to an underestimate of case loads or a desire on the part of the legislature to put a program on a short least and subject it to closer review.
• $15 million is due to caseload growth
• $31 million is for disaster-related and fire fighting duties
• $11 million is for other requests ranging from fuel to payment of judgments and claims.

In order to help you understand more, I am listing some of the specific requests:

• $500,000 for Department of Corrections for inmate health care that are costs incurred as a result of the November 19, 2002 accident involving a prison transport van.
• $500,000 for Department of Corrections for operations of the Anchorage jail.
• $2.8 million for subsidized adoptions and guardianships for short funding ($2.0 million) and caseload growth ($833.3). The current funding is expected to be depleted by April.
• $11.6 million in general funds and $31.1 million federal funds to capitalize the fund for declared disasters.
• $19 million for fixed costs and fire suppressions costs incurred to date.
• $28 million general funds for Medicaid Services claims growth and match rate adjustment
• $1 million for judgments and claims against the State

The above represents just a small portion of what HB 100 and HB 110 cover. If you are interested in this matter, I would again urge you to visit the Legislature's home page.

Best regards,

Norman Rokeberg
State Representative
House District 27

PS: The House Finance Committee bill begin to consider HB 100 on February 20, 2003 at 1:30 p.m.

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