Legislature(2019 - 2020)SENATE FINANCE 532
05/14/2019 10:00 AM House CONFERENCE COMMITTEE ON HB39 AND HB40
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| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 39 | TELECONFERENCED | |
| += | HB 40 | TELECONFERENCED | |
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 39(FIN) am(brf
sup maj fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making supplemental appropriations;
and providing for an effective date."
SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 39(FIN) am S
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making supplemental appropriations and
reappropriations; and providing for an effective
date."
and
CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 40(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."
SENATE CS FOR CS FOR SS FOR HOUSE BILL NO. 40(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."
8:17:49 PM
Co-Chair Foster invited David Teal, Director of the
Legislative Finance Division, to come to the testifier
table.
Co-Chair Foster reviewed how objections would be handled.
If there was an objection, he would make note of that Item
and hold it aside. The committee would continue to go
through the other Items in the department, adopt them, and
then would come back to any Item that had an objection.
In the present meeting the committee would be addressing
open items in HB 39 and HB 40 based on the motion sheets
distributed to members earlier and dated May 14th for the
following departments:
ADMINISTRATION
COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT
CORRECTIONS
EDUCATION AND EARLY DEVELOPMENT
FISH AND GAME
OFFICE OF THE GOVERNOR
LAW
NATURAL RESOURCES
PUBLIC SAFETY
TRANSPORTATION
SPECIAL APPROPRIATIONS
FUND CAPITALIZATIONS
FY 19 SUPPLEMENTALS IN HB 39 and HB 40
^ADMINISTRATION
8:18:52 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Administration budget:
Item 8 House
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Item 8 in the Department of
Administration budget.
^COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT
8:19:12 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Commerce, Community and Economic Development
budget:
Item 3 House All Lines
Item 4 Line 1 House plus $546,600 and plus 2
permanent full-time positions
Line 2 House
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Items 3 and 4 in the Department of
Commerce, Community and Economic Development budget.
^CORRECTIONS
8:20:16 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Corrections budget:
Item 1 Senate
Item 2 Adopt Conference Committee Wordage
Item 3 Senate replace the number 150 with 100 in
both places
Item 4 House
Item 5 Change transaction to a one-time increment
Line 1 House minus $7,510,200
Line 2 House
Item 6 House
Item 7 Change transaction to a one-time increment
Senate minus $565,800 and replace the number
150 with 100
Item 8 House plus $20,117,500
Item 9 House
Item 10 Senate
Item 11 House
Item 12 Senate
Item 13 House
Item 14 Senate
Item 15 House
Item 16 House
Item 17 Senate
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Items 1 through 17 in the Department
of Corrections budget.
^EDUCATION AND EARLY DEVELOPMENT
8:22:28 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Education and Early Development budget:
Item 14 House
8:22:44 PM
Representative Tilton OBJECTED. She explained that the item
had to do with forward funding for FY 21 for the Department
of Education and Early Development. She had an opinion memo
from the Attorney General citing concerns about the funding
for the FY 20 budget. She wanted to see the issue resolved.
8:23:32 PM
Senator Olson asked about a plan if the Attorney General's
opinion was found to be correct.
Co-Chair Foster indicated that the legislature had a legal
opinion from Legislative Legal Services which reflected
that the legislature would prevail. He thought a number of
legislators were comfortable with the opinion from Legal
Services.
Co-Chair Wilson added that the legislature had forward
funded for years because the districts had requested it
providing some funding guarantee for the following year.
The legislature had never been sued over the previous
years. It had been brought to the legislature's attention
that it might have been illegal. Currently the legislature
was following precedence. She believed the state owed it to
its school districts.
Senator Olson agreed that school districts needed
additional funding. However, just because forward funding
had not been challenged in the past did not mean that it
was legal.
Co-Chair Foster asked Mr. Teal if he had any comments on
the issue. Mr. Teal responded in the negative.
Senator Olson asked Mr. Teal if he knew what the chances
were that the challenge would prevail.
Mr. Teal could not answer the question, only the courts
could. He noted that both the legal opinions were both very
strong. He agreed with Legal Services that the Legislature
would prevail. However, it did not matter what anyone
thought, it was what the court ruled.
Senator Olson thought the case would go to the Supreme
Court because of the dollar figure. He thought it would be
appealed to the higher level.
Co-Chair Foster relayed to the public that in the previous
fiscal year the legislature appropriated funds to forward
fund education. He continued to explain that there was a
concern that if the funding was added to the FY 20 budget,
it would be subject to a veto.
Senator Olson thought that it was the prerogative of the
executive branch to veto the item. He noted that the
legislature had the option to override a veto by the
governor.
Co-Chair Wilson added that it was not about what the
governor would or would not do, rather, it was about a
promise that legislators made to their districts about the
amount of funding they would receive. It was her understood
that the governor could veto the language if he chose to do
so. She was in favor of keeping the language in place.
Representative Tilton WITHDREW her OBJECTION.
8:27:02 PM
There being NO further OBJECTION, it was so ordered. The
action CLOSED conferenceable Item 14 in the Department of
Education and Early Development budget.
^FISH AND GAME
8:27:51 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Fish and Game budget:
Item 1 Senate
Item 24 House
Item 26 House
Item 29 House
Item 30 House
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Items 1, 24, 26, 29, and 30 in the
Department of Fish and Game budget.
^OFFICE OF THE GOVERNOR
8:28:20 PM
Co-Chair Stedman MOVED to ADOPT the following in the Office
of the Governor's budget:
Item 2 House All Lines
Item 3 Senate
Co-Chair Wilson OBJECTED to Item 3. She would be removing
her objection. She explained that two new positions were
being added. She had hoped to see more efficiency out of
the governor's office.
Co-Chair Wilson WITHDREW her OBJECTION.
8:29:17 PM
Senator Olson OBJECTED. He commented that the governor had
made several reductions without making some within his own
office. Senator Olson WITHDREW his OBJECTION.
There being NO further OBJECTION, it was so ordered. The
action CLOSED conferenceable Items 2 and 3 in the Office of
the Governor's budget.
^LAW
8:30:06 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Law budget:
Item 2 Senate
Item 4 House minus $88,900 and minus 2 positions
and revise title
Item 5 House All Lines
Item 6 House plus $48,800 and revise title
Item 7 House All Lines
Item 8 Line 1 Senate
Line 2 Senate change fund source code to
1004 Unrestricted General Fund
Item 9 House
Item 10 House All Lines
Item 11 House All Lines
Item 12 House minus $132,800 and minus 2 positions
and revise title
Item 13 House All Lines
Item 14 House minus one position and revise title
Item 15 House All Lines
Item 16 House All Lines
Item 17 House minus $47,600 and minus one position
and revise title
Item 18 House All Lines
Item 19 House
Item 20 House minus $54,100 and minus 2 positions
and revise title
Item 21 House All Lines
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Items 2 and 4 through 21 in the
Department of Law budget.
^NATURAL RESOURCES
8:31:13 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Natural Resources budget:
Item 1 Senate
Item 3 Open
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Item 1 and left OPEN Item 3 in the
Department of Natural Resources budget.
^PUBLIC SAFETY
8:31:45 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Public Safety budget:
Item 3 Senate
Item 4 Senate
Item 5 Senate
Item 6 House
Item 7 Senate
Item 8 House
Item 9 House
Item 10 Senate
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Items 3 through 10 in the Department
of Public Safety budget.
^TRANSPORTATION
8:32:24 PM
Co-Chair Stedman MOVED to ADOPT the following in the
Department of Transportation and Public Facilities budget:
Item 13 House
Item 14 Senate
Item 15 House All Lines
Item 16 House
Item 17 Senate
Item 18 House All Lines
Item 19 House
Item 20 Senate
Item 21 House All Lines
Item 23 Senate
Item 24 House
Item 25 Senate
Item 26 House All Lines
Item 27 House
Item 31 Senate Senator Olson OBJECTED
Item 32 House
Item 33 Senate
Item 34 House All Lines
Item 35 House
Item 36 Senate
Item 39 Senate
Item 40 House
Item 41 Senate
Item 42 House All Lines
Item 44 House
Item 45 House
Item 46 Senate All Lines
Item 47 Senate
Item 48 Senate All Lines
Item 49 Senate
Senator Olson OBJECTED to Item 18.
Senator Olson OBJECTED to Item 31.
Senator Olson OBJECTED to Item 34.
Senator Olson spoke to his objection to Item 18. He
explained that the item had to do with the replacement of
undesignated general funds (UGF) with the state equipment
fleet rebates. He wondered if there were enough rebate
funds to cover the costs that would otherwise be coming out
of UGF.
8:37:34 PM
AT EASE
8:39:02 PM
RECONVENED
Senator Olson WITHDREW his OBJECTION to Items 18 and 31.
Senator Olson explained that he was concerned with a
reduction to airport maintenance.
Co-Chair Foster spoke to Item 31. There had been a proposed
reduction to rural airport maintenance which he emphasized
had not been adopted. He invited Senator Olson to speak to
his objection to Item 34.
Senator Olson restated his concerns about replacing UGF
with equipment rebates. He wanted to make sure there was
enough funding to cover all of the necessary maintenance.
Co-Chair Wilson clarified that the House number was taken
for Item 34 resulting in no reductions.
Senator Olson WITHDREW his OBJECTION to Item 34
There being NO further OBJECTION, it was so ordered. The
action CLOSED conferenceable Items 13 through 21, 23
through 27, 31 through 36, 39 through 42, and 44 through 49
in the Department of Transportation and Public Facilities
budget.
^SPECIAL APPROPRIATIONS
8:40:30 PM
Co-Chair Stedman MOVED to ADOPT the following in Special
Appropriations:
Item 1 House
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Item 1 in Special Appropriations.
^FUND CAPITALIZATIONS
8:40:45 PM
Co-Chair Stedman MOVED to ADOPT the following in Fund
Capitalizations:
Item 2 Senate
Item 4 House All Lines
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Items 2 and 4 in Fund
Capitalizations.
^FY 19 SUPPLEMENTALS IN HB 39 and HB 40
8:41:05 PM
Co-Chair Stedman MOVED to ADOPT the following in FY 19
Supplementals in HB 39 and HB 40:
Item 36 House
There being NO OBJECTION, it was so ordered. The action
CLOSED conferenceable Item 36 in FY 19 Supplementals in HB
39 and HB 40.
^AMENDMENTS
8:41:32 PM
Chair Foster indicated the committee had two amendments.
Vice-Chair Stedman MOVED to ADOPT Conference Committee
Amendment 1.
Senator Olson OBJECTED for discussion.
Co-Chair Stedman relayed that the amendment had to do with
the National Flood Insurance Program that was being
implemented in many of communities across the state.
Although Alaska had some flood issues, it had very few
relative to the flood zones in other states. Essentially,
Alaska was being thrown in with a pool of other states
including Texas and Louisiana known for their flooding and
hurricanes. He expressed concerns that Alaskans were paying
outrageous flood insurance premiums subsidizing other
states' premiums. The amendment would require the state to
obtain the loss ratio data that would likely show Alaska
was paying for the other states in the form of outrageous
flood insurance premiums. He had been working on minimizing
the impacts to Alaskans.
Senator Olson WITHDREW his OBJECTION. There being NO
further OBJECTION, Conference Committee Amendment 1 was
ADOPTED.
8:44:08 PM
Vice-Chair Stedman MOVED to ADOPT Conference Committee
Amendment 2. There being NO OBJECTION, it was so ordered.
Co-Chair Foster concluded the business for the committee
hearing. Once the next meeting date and time was
determined, the meeting would be noticed on BASIS.
Co-Chair Stedman MOVED to ADJOURN. There being NO
OBJECTION, it was so ordered.
HB 39 was HEARD and HELD in committee for further
consideration.
HB 40 was HEARD and HELD in committee for further
consideration.
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