Legislature(2019 - 2020)SENATE FINANCE 532
03/17/2020 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB134 | |
| SB172 | |
| HB234 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 234 | TELECONFERENCED | |
| += | SB 134 | TELECONFERENCED | |
| += | SB 172 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 234(FIN)
"An Act making supplemental appropriations,
reappropriations, and other appropriations; amending
appropriations; capitalizing funds; making
appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska, from the constitutional budget
reserve fund; and providing for an effective date."
3:05:22 PM
Co-Chair Stedman relayed that public testimony had been
taken on the bill on March 20, 2020.
Co-Chair von Imhof MOVED to ADOPT proposed committee
substitute for CSHB 234(FIN), Work Draft 31-
GH2200(Caouette, 3/17/20).
Co-Chair Stedman OBJECTED for discussion.
3:06:11 PM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, spoke to the CS
Version E. He referenced a two-page report entitle Multi-
year Agency Summary - FY 2021 Senate Structure" (copy on
file). He drew attention to Colum 9 of report A, which
showed the total UGF in bill version E was approximately
$360 million. He turned to Report B, which was an all
funds report, Column 9 reflected a total of $612 million
in all funds contained in version E.
Mr. Ecklund spoke to the changes from the bill sent over by
the other body. He noted that a title change resolution
would accompany the bill to the floor as the word
reappropriation had been removed from the title of the
current bill version. He pointed to Page 3, line 9, which
showed an increase in Medicaid by $14 million in UGF and
$17 million in federal funds. He drew attention to Page 8,
lines 14 and 15, which reflected a $150,000 grant to the
Alaska Municipal League for rural RealID implementation. He
continued to Line 23, and 24, which showed $900,000 for a
Mass Notification System at JBER, which used to be a
reappropriation, was removed, and now appeared in the
numbers section of the bill. He continued to a dollar
amount correction on Page 9; $398,400 for an Automatic
Dependent Surveillance Broadcast System for DPS Aircraft.
He continued to Line 8, through 10, which showed $520,285
for the AHFC Cold Climate Housing Research Center. He
turned to Page 12 of the bill, line 10, which reflected
amended intent language pertaining to inflation proofing of
the Alaska permanent fund, from eight fiscal years to four.
3:10:26 PM
Mr. Ecklund addressed Section 8 on page 12, which was a
request that had come from the executive branch the
previous evening. The funds were referred to as "Ocean
Ranger" funds and would be given as grants to port
communities to respond to the Covid-19 outbreak.
Mr. Ecklund spoke to a change on Page 13, section 10,
lines5, through 12. Another emergency request from the
executive branch:
*Section 10. DEPARTMENT OF HEALTH and SOCIAL SERVICES.
(a) The amount necessary to cover the cost of
responding to and mitigating the risk of a COVID-19
outbreak in the state, not to exceed $15,000,000, is
appropriated from the general fund to the Department
of Health and Social Services, division of public
health, emergency program, for the fiscal years ending
in June 30,2020, and June 30, 2021.
(b) The amount of federal receipts received
during the fiscal year ending June 30, 2020, for
Medicaid services, estimated to be $0, is appropriated
to the Department of Health and Social Services,
Medicaid services, for the fiscal year ending June 30,
2020.
Mr. Ecklund said that this was open ended federal receipt
authority for DHSS to receive and expend fund coming from
the federal government.
Mr. Ecklund addressed a change on page 14, lines 24 and 25;
which was a $30 million to the Community Assistance Fund in
FY 20. He recalled that in the current fiscal year the $30
million capitalization appropriation to the fund had been
zeroed out, this change would provide a $30 million payout
in FY21. He referenced a report entitled "Community
Assistance Payment Comparison - $20 million to $30 million"
(copy on file).
3:13:22 PM
Mr. Ecklund addressed changes on page 15 of the bill, in
the CBR sections:
*Section 19. CONSTITUTIONAL BUDGET RESERVE FUND. (a)
Deposits in the budget reserve fund (art. IX, sec.17,
Constitution of the State of Alaska) for the fiscal
year 2020 that are made from subfunds and accounts of
the operating general fund by operation of art. IX,
sec.17(d), Constitution of the State of Alaska, to
repay appropriations from the budget reserve fund are
appropriated from the budget reserve fund to the
subfunds and accounts from which those funds were
transferred.
(b) If, after the appropriations made in secs.
17(b) and (c), ch.1, SSSLA 2019, the unrestricted
state revenue available for appropriation in fiscal
year 2020 is insufficient to cover the general fund
appropriations that take effect in fiscal year 2020
that are made in this Act, as passed by the Thirty-
First Alaska State Legislature in the Second Regular
Session and enacted into law, the amount necessary to
balance revenue and general fund appropriations that
take effect in fiscal year 2020 that are made in this
Act, as passed by the Thirty-First Alaska State
Legislature in the Second Regular Session and enacted
into law, is appropriated to the general fund from the
budget reserve fund (art. IX, sec.17, Constitution of
the State of Alaska).
Mr. Ecklund explained that of the $360 million in UGF
contained in the bill, $250 million would apply to what had
already been authorized, the CBR vote described in
subsection (b) would authorize the expenditure of the total
UGF funds.
3:14:59 PM
Co-Chair Stedman recalled that some of the headroom had
been used in the mental health budget bill, and thought the
amount was reduced to $246 million, rather than $250
million.
Mr. Ecklund concurred.
Mr. Ecklund pointed to contingency language that said that
for the CBR section to take effect, the reverse sweep
section of the bill must be enacted.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
Co-Chair Stedman requested invited testifiers to the table.
3:16:47 PM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, relayed that his office had sent
over amendments the previous day, three of which were
related to the COVID-19 virus, and included $8.5 million
for the response efforts for communities impacted by the
stifled cruise ship industry, and who relied on the cruise
ship head tax. He detailed $15 million was additional to
the $4 million appropriated in the mental health budget
bill, to address response activities being coordinated
through the DHSS Emergency Program section. There was an
indeterminate amount of federal receipts and open-ended
federal appropriation for Medicaid services within DHSS. He
reiterated that there was currently a bill at the federal
level that would address federal participation in the
Medicaid program. The final amendment was to add some
additional Judgements and Settlements that had come in
since the administration last introduced the supplemental
budget.
3:18:40 PM
Co-Chair Stedman asked whether Mr. Steininger could give a
breakdown of the $15 million for public health emergency
programs.
Mr. Steininger detailed that $2.5 million was for housing
of individuals under quarantine, who were otherwise unable
to house themselves; the homeless, displaced tourists, and
those that had at-risk individuals in their homes that they
could not house with directly. He continued that $3.5
million was for transportation services, for accessing
housing and medical transport; Medivac, military transport,
or charter flights for rural areas were included. He
furthered that there was $5.5 million for medical and
personal protective equipment (PPE) to be supplied to first
responders and health care providers. He said that $500,000
was related to communications and public messaging
pertaining to public safety and public health. He relayed
that $1.5 million for the state epidemiology lab for IT
systems related to testing, and $1.5 million for lab
support emergency operations as well as staff in 24-hour
facilities. He noted that many of the allocations were
subject to change as the Covid-19 pandemic unfolded in the
state.
3:20:49 PM
Co-Chair Stedman agreed that the administration should have
the ability to respond to the changing situation. He
queried the distribution of the $8.5 million previously
mentioned.
Mr. Steininger explained that the $8.5 million would go
through the Department of Commerce, Community and Economic
Development, and as funds were coming through cruise ship
head taxes they needed to be related to where passengers
landed and to services related to passengers. The
administration proposed to distribute the funds where
passengers would have landed in coastal communities.
Co-Chair Stedman asked about the eventuality of no cruise
ships.
Mr. Steininger stated that the distribution was based on
anticipated cruise ships, and if there were no ships the
funds could be for communities to prepare for the arrival
of future ships and help communities mitigate the risk of
large influxes of people.
3:23:10 PM
Senator Wilson asked whether the funds would go towards
emergency preparedness.
Mr. Steininger stated that the administration proposed to
send the grant to communities and let the communities
decide which area of the community was in the most need.
Some areas might use the funds for hospitals, some towns
had very few public restrooms or places to wash hands. He
added that the spend should fit within the requirements of
the use of commercial passenger head tax money.
Co-Chair Stedman interjected that the requirements were
tightly defined, and any flexibility would need to be
worked out with the cruise ship industry.
3:24:42 PM
Senator Wilson asked about the $2 million for housing
individuals. He asked if the funds were going toward a
statewide approach and if there would be buying or renting
of facilities.
Mr. Steininger stated that a variety of approaches were
being considered.
3:25:56 PM
Co-Chair von Imhof asked how communities could apply for
the funds for housing. She noted that the Anchorage mayor
had discussed using the Sullivan Arena as an idea for
housing people experiencing homelessness. She queried the
application process for the funds.
Mr. Steininger deferred the question to DHSS.
3:27:16 PM
SANA EFIRD, ASSISTANT COMMISSIONER, DEPARTMENT OF HEALTH
AND SOCIAL SERVICES (via teleconference), stated that the
funds would be appropriated to the Emergency Operations
Center for the Unified Command Support and not to be grant
money for local municipalities. She understood that the
money was meant to be appropriated across the state to meet
housing needs.
Co-Chair von Imhof asked what steps would be taken when a
plan was formed to fund the actual location chosen.
Mr. Efird did not mean to imply the funds were for
planning, rather, the department was looking at purchasing
mobile units, and renting hotel rooms. She understood that
the funds would be used to rent or purchase actual housing
wherever it was determined there was the most need in the
state. She believed there would be federal money for local
housing possibilities.
3:30:08 PM
Co-Chair Stedman clarified that the funds were not for
planning but for execution.
3:30:15 PM
Senator Wilson discussed the Emergency Operations
activities in various parts of the state.
3:31:31 PM
Senator Wielechowski asked about test kits for COVID-19 in
the state and asked whether the funding would go towards
the purchase of the kits.
Mr. Steininger was not aware of the number of test kits
available in the state. He said that there was an amount
set aside to purchase kits that would be distributed to
medical professionals throughout the state.
Senator Wielechowski hoped someone online could answer the
question.
Co-Chair Stedman noted that the State Chief Medical
Officer, Dr. Anne Zink, would be the best person to answer
the question. He noted that she was not online to testify.
3:32:33 PM
Ms. Efird affirmed that the question would be best
addressed by Dr. Zink.
Co-Chair Stedman believed the question was important and
hoped to hear from Dr. Zink soon.
3:33:04 PM
Senator Olson asked Mr. Steininger about funding for
additional ventilators. He thought that providing funding
for ventilators was the most critical piece of the issue.
Mr. Steininger stated that the $5.5 million for medical
supplied could include ventilators.
3:33:48 PM
Co-Chair Stedman stated that the committee would be
considering the operating budget the following week, and
there could be additional funds needed to respond to the
virus, which the committee would consider.
3:34:11 PM
Senator Hoffman asked about the $100,000 for travel for
response personnel, and thought the amount seemed a little
low considering the size of the state. He wondered how the
figure was determined.
Mr. Steininger referenced that the $100,000 amount was
based on an early estimate that looked at initial response
to the virus and had been funded in the Mental Health
Budget. He thought more likely than not there would be the
need for more travel; within the $3.5 million, of the $15
million requested, additional funding would be used for
travel.
Co-Chair Stedman clarified that the mental health budget
that was recently signed by the governor provided $100,000
for travel and response. He understood that there was
flexibility in todays request that would fund additional
travel.
Mr. Steininger answered in the positive. He and pointed to
the numbers on the document "COVID-19 Response Funding - As
of March 16, 2020" (copy on file).
3:36:23 PM
Senator Olson discussed the public health issue, specific
to rural areas of the state, of teachers leaving the state
during spring break and bringing the virus back to
communities.
Senator Wielechowski thought there were many industries in
the state that employed out-of-state workers and wondered
whether the state had reached out to those industries to
discuss who would be financially responsible for mitigation
of the virus or an outbreak.
Mr. Steininger did not want to speculate on how the state
would respond to every impact that the virus would have on
the state.
3:38:03 PM
Co-Chair Stedman noted that public testimony had been taken
on the bill. He solicited the will of the committee.
Senator Wilson MOVED to report SCS CSHB 234(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
SCS CSHB 234(FIN) was REPORTED out of committee with a "do
pass" recommendation.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 234 sup vers E reports.pdf |
SFIN 3/17/2020 1:00:00 PM |
HB 234 |
| HB 234 Work Draft version E.pdf |
SFIN 3/17/2020 1:00:00 PM |
HB 234 |
| HB 234 Community Assistance Comparison - $20m to $30m.pdf |
SFIN 3/17/2020 1:00:00 PM |
HB 234 |
| HB 234-SB 174 COVID-19 Response Funding Plan as of 3.16.20.pdf |
SFIN 3/17/2020 1:00:00 PM |
HB 234 SB 174 |