Legislature(2021 - 2022)ADAMS 519

04/28/2022 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Delayed to 2:30 pm --
+ SB 81 VILLAGE PUBLIC SAFETY OFFICER GRANTS TELECONFERENCED
Moved HCS CSSB 81(CRA) Out of Committee
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 283 APPROP: CAP; REAPPROP; SUPP TELECONFERENCED
Heard & Held
HOUSE BILL NO. 283                                                                                                            
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations,     reappropriations,     and     other                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
3:02:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick reviewed the intent for the meeting.                                                                           
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for HB  283,  Work  Draft 32-GH2436\I  (Dunmire,                                                                    
4/27/22)(copy on file).                                                                                                         
                                                                                                                                
Co-Chair  Merrick OBJECTED  for  discussion.  She asked  her                                                                    
staff  to review  the changes  in  the Committee  Substitute                                                                    
(CS).                                                                                                                           
                                                                                                                                
3:02:58 PM                                                                                                                    
                                                                                                                                
TALLY TEAL,  STAFF, REPRESENTATIVE KELLY  MERRICK, explained                                                                    
the  changes in  the  CS. She  referenced  budget reports  A                                                                    
through  E generated  by  the  Legislative Finance  Division                                                                    
(copy on file) and  described their contents. She referenced                                                                    
an additional document titled "Summary  of Changes - HB 283,                                                                    
Version A to  Version I" (copy on file). She  pointed to the                                                                    
Fiscal Summary on page 1  and reported that the Unrestricted                                                                    
General Funds (UGF) total was  roughly $707 million, and the                                                                    
total spend  for FY 2022 and  FY 2023 was $3.1  billion. She                                                                    
turned to  the Modifications to Governors   Budget beginning                                                                    
in page 1:                                                                                                                      
                                                                                                                                
     Replaced CSLFRF with UGF as a fund source                                                                                  
     ? Rejected                                                                                                                 
          o Voice of the Arctic Inupiat                                                                                         
          o  Food   Security  Agriculture   Incentive  Grant                                                                    
        Program (split into several appropriations)                                                                             
          o Cook Inlet Petroleum Potential                                                                                      
          o    Alaska    Psychiatric   Institute    Wireless                                                                    
          Infrastructure  Upgrade  (moved to  mental  health                                                                    
          budget)                                                                                                               
          o Arctic Fisheries                                                                                                    
          o   Information    Technology   Security   Program                                                                    
          Assessment (moved to operating budget)                                                                                
          o  Governor's  proposal  for  school  construction                                                                    
          funding                                                                                                               
          .notdef School construction projects funded by REAA                                                                 
          funding, including backpay, in operating budget                                                                       
                                                                                                                                
     ? Rejected/modified projects that used Coronavirus                                                                         
     Capital Project Fund (CCPF)                                                                                                
          o Health Record  Infrastructure Improvements (DOH)                                                                    
          (rejected)                                                                                                            
          o Eagle River Fire Crew Facility (DNR) (rejected)                                                                     
          o Student Information Technology Systems (UA)                                                                         
          (modified- UGF funded)                                                                                                
          ? Expanded Surface Transportation Plan and                                                                            
          Airport Improvement Plan appropriations into                                                                          
          allocations                                                                                                           
                                                                                                                                
Ms. Teal listed the  governor's requested projects that were                                                                    
rejected  in  the  CS.  She  delineated  that  the  governor                                                                    
proposed  using  approximately  $72 million  of  Coronavirus                                                                    
State and Local Fiscal  Recovery Funds (CSLFRF) funding. The                                                                    
CS replaced the funds with UGF. She                                                                                             
                                                                                                                                
3:07:09 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster asked about the  statement the bill included                                                                    
changes "that  we made."  He asked if  the CS  reflected the                                                                    
Senates  version of the bill  or if it included changes made                                                                    
in the  House. Ms. Teal  answered the changes had  been made                                                                    
in  the  Senate  and  confirmed that  it  was  the  Senates                                                                     
version of the CS.                                                                                                              
                                                                                                                                
Representative Carpenter  asked if  the original  House bill                                                                    
included all the items requested  by the governor in HB 283.                                                                    
Ms. Teal replied in the affirmative.                                                                                            
                                                                                                                                
Representative  Carpenter asked  if voting  to adopt  the CS                                                                    
meant the  committee accepted  the Senate  version. Co-Chair                                                                    
Merrick  answered  in the  affirmative.  She  asked to  hear                                                                    
Infrastructure Investment and Jobs Act (IIJA) changes.                                                                          
                                                                                                                                
Ms. Teal discussed the next section  found on page 2, HB 414                                                                    
Infrastructure Investment and Jobs Act (IIJA) bill changes:                                                                     
                                                                                                                                
     ? Moved  Infrastructure Office  and IT  24/7 Monitoring                                                                    
     to operating budget                                                                                                        
     ?  Increased  grant  to Alaska  Municipal  League  from                                                                    
     $500,000 to $1,500,000 (page 34, line 18)                                                                                  
     ? Split Wildlife  Management and Research appropriation                                                                    
     to  separately  appropriate $16,000,000  for  Statewide                                                                    
     Wildlife  Game  Surveys  (Pittman-Robertson  funds  and                                                                    
     Fish and Game funds) (page 38, line 23)                                                                                    
     ? Added $30,000,000 to  DOTPF-Alaska Marine Highway for                                                                    
     planning and  design of  a mainline  vessel replacement                                                                    
     (page 9, line 24)                                                                                                          
     ? Reduced  UGF funding for the  following projects from                                                                    
     $1,000,000 to $250,000 each:                                                                                               
     o  AGDC-  Clean  Hydrogen  Research,  Development,  and                                                                    
     Demonstration Opportunities (page 33, line 21)                                                                             
     o  AEA-  Grid Modernization,  Reliability,  Resiliency,                                                                    
     and Transmission Projects (page 33, line 24)                                                                               
     o  DNR-   Carbon  Technology   Infrastructure  Research                                                                    
     Development and  Demonstration Opportunities  (page 40,                                                                    
     line 24)                                                                                                                   
     o  University- Mineral  Security  Projects: Rare  Earth                                                                    
     Mineral  Security;  Rare Earth  Elements  Demonstration                                                                    
     Facility (page 45, line 23)                                                                                                
     ?  Removed  federal  authority for  the  previous  four                                                                    
     projects                                                                                                                   
     ? AHFC Energy Programs Weatherization                                                                                      
     o Removed $16,000,000 in hollow federal authority                                                                          
                                                                                                                                
Ms.  Teal indicated  that the  CS incorporated  most of  the                                                                    
existing appropriations  in HB  414. The  summary identified                                                                    
items that were changed from HB 414.                                                                                            
                                                                                                                                
3:10:48 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz referenced the  Summary of Changes document                                                                    
and  asked about  the  second bullet  point  under the  IIJA                                                                    
changes:                                                                                                                        
                                                                                                                                
     Increased  grant   to  Alaska  Municipal   League  from                                                                    
     $500,000 to $1,500,000 (page 34, line 18)                                                                                  
                                                                                                                                
Vice-Chair Ortiz  wondered whether  the money could  be used                                                                    
for personnel. Ms. Teal replied in the affirmative.                                                                             
                                                                                                                                
Representative Josephson  inquired about  the impact  of the                                                                    
removal  of authority  for the  previous projects.  Ms. Teal                                                                    
deferred to the Office of Management and Budget (OMB).                                                                          
                                                                                                                                
Co-Chair Merrick recognized Senator Micciche in the room.                                                                       
                                                                                                                                
NEIL STEININGER, DIRECTOR, OFFICE  OF MANAGEMENT AND BUDGET,                                                                    
OFFICE  OF  THE  GOVERNOR,  asked  which  specific  projects                                                                    
Representative  Josephson was  asking about.  Representative                                                                    
Josephson referenced the following projects:                                                                                    
                                                                                                                                
  • Alaska Gasline Development Corporation (AGDC)-Clean                                                                         
     Hydrogen   Research,  Development,   and  Demonstration                                                                    
     Opportunities (page 33, line 21)                                                                                           
                                                                                                                                
   • Alaska Energy Authority (AEA) - Grid Modernization,                                                                        
     Reliability, Resiliency, and Transmission Projects                                                                         
     (page 33, line 24)                                                                                                         
                                                                                                                                
   • Department  of    Natural   Resources    (DNR)-Carbon                                                                      
     Technology Infrastructure Research Development and                                                                         
     Demonstration Opportunities (page 40, line 24)                                                                             
                                                                                                                                
   • University of Alaska (UA)- Mineral Security Projects:                                                                      
     Rare Earth Mineral Security; Rare Earth Elements                                                                           
     Demonstration Facility (page 45, line 23)                                                                                  
                                                                                                                                
Mr. Steininger  replied that the impact  would significantly                                                                    
limit  the ability  of the  agencies to  do the  preparatory                                                                    
work  to enhance  Alaskas  success  when  competing for  the                                                                    
grants. He  explained that the amounts  were appropriated to                                                                    
ensure  the  agencies  could make  its  foremost  effort  to                                                                    
compete  for the  grants. He  added that  some of  the items                                                                    
offered significant  opportunities for the state  and only a                                                                    
small number of grants  would be awarded. The administration                                                                    
concluded that  the state  had a  competitive  edge   in the                                                                    
areas.  Representative Josephson  remarked that  he did  not                                                                    
assume  the  senators  intended to  jeopardize  the  states                                                                     
competitive capacity.                                                                                                           
                                                                                                                                
Co-Chair Merrick voiced that the  committee would not assume                                                                    
the Senates motives on any items in the budget.                                                                                 
                                                                                                                                
3:14:13 PM                                                                                                                    
                                                                                                                                
Representative Carpenter asked  if enhancing competitiveness                                                                    
meant the  money would be spent  hiring intellectual capital                                                                    
such  as   grant  writers.   He  asked   how  it   would  be                                                                    
accomplished.  Mr. Steininger  replied that  the expert  was                                                                    
Miles  Baker,  Infrastructure  Coordinator,  Office  of  the                                                                    
Governor,  but  he  could  briefly  provide  an  answer.  He                                                                    
indicated  that subject  matter  experts  and grant  writing                                                                    
expertise  would  be sought.  He  added  that expertise  was                                                                    
necessary to make the case  that Alaska was the proper place                                                                    
to invest  the funds. He summarized  that the administration                                                                    
would be  contracting out expertise and  bringing in subject                                                                    
matter experts.                                                                                                                 
                                                                                                                                
Representative  Wool asked  for verification  the items  did                                                                    
not  pertain to  matching dollars.  He exemplified  the grid                                                                    
modification which could  be millions of dollars  in costs                                                                      
it was  strictly for grant writing.  Mr. Steininger replied,                                                                    
"Generally speaking,  yes." He elucidated that  if there was                                                                    
money available after the grant  work it would be applied to                                                                    
the matching funds.                                                                                                             
                                                                                                                                
Co-Chair Merrick  asked what removing the  federal authority                                                                    
would  do  if the  state  was  successful in  receiving  the                                                                    
grants.  Mr. Steininger  responded  that the  administration                                                                    
had estimated each  item would be granted  $5 million, which                                                                    
would  authorize the  spending  authority up  to the  amount                                                                    
granted to  the state. He voiced  that if there was  a match                                                                    
requirement  OMB would  need legislative  approval. Removing                                                                    
the authority  meant that  the administration  would request                                                                    
it through the Revised  Program Legislative (RPL) process or                                                                    
the Supplemental Budget.                                                                                                        
                                                                                                                                
3:17:15 PM                                                                                                                    
                                                                                                                                
Representative Edgmon recalled  that the original projection                                                                    
was $37 million,  which was reduced to $18  million, and the                                                                    
current  action hollowed  federal authority.  Mr. Steininger                                                                    
answered  in the  affirmative and  added that  his statement                                                                    
only  applied  to  the Alaska  Housing  Finance  Corporation                                                                    
(AHFC) Energy Programs Weatherization.                                                                                          
                                                                                                                                
3:17:48 PM                                                                                                                    
                                                                                                                                
Ms. Teal  discussed Additional Changes  to Section 1:  FY 23                                                                    
Budget (pages 2-27),  beginning on page 2 of  the summary of                                                                    
changes:                                                                                                                        
                                                                                                                                
     Multiple locations Alaska Long Trail                                                                                       
     $14,750,000                                                                                                                
     Page 2, line 19 AEA-Strategic Plan for Railbelt Assets                                                                     
     $1,500,00 (from $2,500,000)                                                                                                
     Page 2, line 21 Mariculture Grant program (Gov                                                                             
     proposal)                                                                                                                  
     $5,000,000 (from $25,000,000)                                                                                              
     Page 3, line 33 Major Maintenance Grant Fund for                                                                           
     School Major Maintenance                                                                                                   
     $100,000,000                                                                                                               
     Page 5, line 31 Sport Fish Recreational Boating and                                                                        
     Angler Access                                                                                                              
     $1,500,000                                                                                                                 
     $6,750,000 FED (from $2,250,000)                                                                                           
     Page 6, line 6 Statewide Deferred Maintenance,                                                                             
     Renovation, and Repair                                                                                                     
     $50,000,000 (from $23,880,000)                                                                                             
     Page 7,  line 33  Snowmobile Trail  Development Program                                                                    
     and Grants                                                                                                                 
     $250,000 DGF                                                                                                               
     Pages 8 and 9 AHFC Program Increases:                                                                                      
     Senior   Citizens  Housing   Development  Program,   by                                                                    
     $750,000                                                                                                                   
     Supplemental Housing Development Program, by $250,000                                                                      
     Teacher,   Health,  and   Public  Safety   Professional                                                                    
     Housing, by $15,000,000                                                                                                    
     Page 9, line 20 State Equipment Fleet Replacement                                                                          
     $30,000,000 DGF (from $25,000,000)                                                                                         
     Page  9,   line  22  State   Funded  Road   and  Bridge                                                                    
     Completion                                                                                                                 
     $30,000,000                                                                                                                
     Page 27, line 21 Court Security Projects                                                                                   
     $4,130,000 (from $1,130,000)                                                                                               
                                                                                                                                
3:20:44 PM                                                                                                                    
                                                                                                                                
Ms. Teal turned to the next section in the summary                                                                              
beginning on page 3, Additional Changes to Section 4: FY 22                                                                     
Budget (pages 33-45):                                                                                                           
                                                                                                                                
     Page 33,  line 13 Azure  Adoption to Assist  with Cloud                                                                    
     Migration (fast track supp)                                                                                                
     $23,116,000                                                                                                                
     Page  33,  line 31  Kodiak  Fire  Hall (Gov  G.O.  Bond                                                                    
     proposal)                                                                                                                  
     $15,000,000                                                                                                                
     Page  34, line  5 AHTNA,  Inc. Eagle  Trail Fuel  Spill                                                                    
     (Gov Amend)                                                                                                                
     $382,843                                                                                                                   
     Page  34, line  7 Alaska  Community Foundation-Homeless                                                                    
     Housing                                                                                                                    
     $5,000,000                                                                                                                 
     Page  34, line  12 Alaska  Farmers Market  Association-                                                                    
     SNAP/WIC/Senior Coupon Doubling Programs                                                                                   
     $500,000                                                                                                                   
     Page 34, line 21 Alaska Primary Care Association-                                                                          
     Alaska's Healthcare Workforce Pipeline Project                                                                             
     $2,000,000                                                                                                                 
     Page  34, line  32  Bering  Sea Fisherman  Association-                                                                    
     Improve  Stock of  Origin  Analysis  of Western  Alaska                                                                    
     Salmon                                                                                                                     
     $513,150                                                                                                                   
     Page 35, line 8 Bering Sea Fishermen's Association-                                                                        
     Review Current Draft Comprehensive Salmon Plan                                                                             
     $100,000                                                                                                                   
     Page 35, line 11 Bering Sea Fishermen's Association-                                                                       
     Yukon River Watershed Monitoring                                                                                           
     $1,180,561                                                                                                                 
     Page 35, line 4 Bering Sea Fishermen's Association-                                                                        
     Integrating   Genetic   and  Environmental   Data   for                                                                    
     Predictive Models of Salmon Bycatch                                                                                        
     $310,000                                                                                                                   
     Page 35,  line 14 Blood Bank  of Alaska-High-Complexity                                                                    
     Reference Laboratory                                                                                                       
     $2,000,000                                                                                                                 
     Page  35,   line  16   Bristol  Bay   Science  Research                                                                    
     Institute-Nushagak Salmon Stock Assessment                                                                                 
     $3,750,000                                                                                                                 
     Page  35, line  19 Food  Bank of  Alaska-Infrastructure                                                                    
     for Alaska's Statewide Food Bank Network                                                                                   
     $10,000,000                                                                                                                
     Page  35, line  22  Kuskokwim  River Inter-Tribal  Fish                                                                    
     Commission-Community-Based  Harvest Monitoring  Network                                                                    
     for Kuskokwim River Chinook Salmon                                                                                         
     $140,000                                                                                                                   
     Page  35, line  26  Kuskokwim  River Inter-Tribal  Fish                                                                    
     Commission-Salmon Stock  Assessment using Environmental                                                                    
     DNA                                                                                                                        
     $88,000                                                                                                                    
     Page  35, line  29  Kuskokwim  River Inter-Tribal  Fish                                                                    
     Commission-Tatlawiksuk River Salmon Assessment Project                                                                     
     $170,000                                                                                                                   
     Page 35, line 32 Lower Kuskokwim School District-                                                                          
     Kwethluk School Power Resilience                                                                                           
     $614,000                                                                                                                   
     Page  36, line  11  Providence  Alaska Medical  Center-                                                                    
     Crisis Stabilization Center                                                                                                
     $8,000,000                                                                                                                 
     Page  36, line  13  Sealaska Heritage  Institute-Alaska                                                                    
     Native Arts Economy and Workforce Training Programming                                                                     
     $340,000                                                                                                                   
     Page 36,  line 16  United Way of  Alaska-Restaurant and                                                                    
     Hunger Relief Program                                                                                                      
     $500,000                                                                                                                   
   Page 36, line 18 University of Alaska-Maritime Works                                                                         
     $2,000,000                                                                                                                 
     Page  36, line  20  Volunteers of  America-School-based                                                                    
     Mental Health Services                                                                                                     
     $960,000                                                                                                                   
     Page  36,  line   28  Anchorage-Starner  Street  Bridge                                                                    
     Replacement                                                                                                                
     $1,500,000                                                                                                                 
     Page 36, line 33 Emmonak Port Phase II- Ramp                                                                               
     $9,400,000                                                                                                                 
     Page 37, line 11 Haines Borough-Lutak Dock Restoration                                                                     
     $3,211,284                                                                                                                 
     Page  37,  line  13   Homer-New  Large  Vessel  Harbor:                                                                    
     Matching  Funds for  Army  Corps  of Engineers  General                                                                    
     Investigation                                                                                                              
     $750,000                                                                                                                   
     Page  37, line  17 Juneau-North  State Office  Building                                                                    
     Parking                                                                                                                    
     $5,000,000                                                                                                                 
     Page  38,  line  4 Suicide  Prevention  barriers  (fast                                                                    
     track supp)                                                                                                                
     $750,000                                                                                                                   
    Page 38, line 8 Mt. Edgecumbe Deferred Maintenance                                                                          
     $6,163,000                                                                                                                 
     Page  38,  line 10  Start-Up  and  Expansion of  School                                                                    
     Breakfast Program                                                                                                          
     $600,000                                                                                                                   
                                                                                                                                
3:24:17 PM                                                                                                                    
                                                                                                                                
Ms. Teal  noted that the  following projects were  funded by                                                                    
the  Coronavirus  Capital  Projects  Fund  (CCPF)  that  was                                                                    
included  in American  Rescue Plan  Act  (ARPA) and  totaled                                                                    
roughly $112  million. The funding  would be  distributed as                                                                    
grants  by the  United States  (US) Department  of Treasury.                                                                    
The governor  initially chose  the earlier  identified three                                                                    
projects  that  were rejected  in  the  CS because  they  no                                                                    
longer  qualified  for  the funding.  She  listed  the  CCPF                                                                    
projects she hoped would qualify beginning on page 5:                                                                           
                                                                                                                                
     Page  39,   line  5  Alutiiq   Tribe  of   Old  Harbor-                                                                    
     Construction of Nuniaq Community Center (CCPF)                                                                             
     $4,454,968                                                                                                                 
     Page 39, line  8 Anchorage Library Foundation-Anchorage                                                                    
     Downtown Library (CCPF)                                                                                                    
     $2,500,000                                                                                                                 
     Page  39,  line  10   Association  of  Village  Council                                                                    
     Presidents-Multi-Purpose  Community  Facility  Projects                                                                    
     (CCPF)                                                                                                                     
     $10,445,000                                                                                                                
     Page 39,  line 13 Iliukliuk Family  and Health Services                                                                    
     Center (CCPF)                                                                                                              
     $20,000,000                                                                                                                
     Page  39,   line  15   Kawerak-Multi-Purpose  Community                                                                    
     Facility Projects (CCPF)                                                                                                   
     $12,000,000                                                                                                                
     Page  39,  line  17  Mat-Su  First  Responder  Training                                                                    
     Facility (CCPF)                                                                                                            
     $8,000,000                                                                                                                 
     Page  39, line  19 Nenana  Health and  Wellness Complex                                                                    
     (CCPF)                                                                                                                     
     $24,000,000                                                                                                                
     Page 39,  line 21 Petersburg Medical  and Public Health                                                                    
     Center (CCPF)                                                                                                              
     $20,000,000                                                                                                                
     Page 39, line 23 Rampart Broadband (CCPF)                                                                                  
     $9,000,000                                                                                                                 
     Page   39,   line    24   Spruce   Island   Development                                                                    
    Corporation-Ouzinkie Community Internet Caf? (CCPF)                                                                         
     $1,400,000                                                                                                                 
                                                                                                                                
3:26:01 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz  referenced Ms.  Teal's statement  that the                                                                    
projects would  hopefully qualify for the  federal funds. He                                                                    
asked  what  the  statement meant.  He  inquired  about  the                                                                    
process and if the grants had  to be applied for through the                                                                    
federal government.  Ms. Teal understood  that OMB  would be                                                                    
coordinating  the  applications and  time  was  short -  the                                                                    
applications  were  due  September 24,  2022.  However,  the                                                                    
federal  spending authority  was needed  if the  grants were                                                                    
approved, and  it was necessary  to include the  projects in                                                                    
the  CS.  Vice-Chair Ortiz  asked  if  the grants  were  all                                                                    
approved whether  any funds remained  in the CCPF.  Ms. Teal                                                                    
replied in the negative.                                                                                                        
                                                                                                                                
3:27:06 PM                                                                                                                    
                                                                                                                                
Ms. Teal  continued to  review the  items on  page 5  of the                                                                    
summary of changes beginning with:                                                                                              
                                                                                                                                
     Page  39, line  30 Alaska  Workforce Investment  Board-                                                                    
     Alaska's Cross Industry  Skills Employment and Training                                                                    
     Projects                                                                                                                   
     $2,000,000                                                                                                                 
     Page  40,  line  19   Agriculture  3  Phase  Electrical                                                                    
     Service Infrastructure, Nenana-Totchaket                                                                                   
     $3,000,000                                                                                                                 
     Page  40,  line  29  Eagle River  Salmon  Viewing  Deck                                                                    
     Replacement                                                                                                                
     $200,000 SDPR                                                                                                              
     Page 40, line 31 Food Security Agriculture Incentive                                                                       
     Grant Program                                                                                                              
     $3,000,000                                                                                                                 
     Page 41, line 11 Plant Materials Center Seed                                                                               
     Processing and Storage Capacity Improvements                                                                               
     $2,000,000                                                                                                                 
     Page   41,   line   27   Nenana-Totchaket   Agriculture                                                                    
     Development                                                                                                                
     $5,000,000                                                                                                                 
     Page 42, line 22 Municipal Harbor Facility Grant Fund                                                                      
     $20,019,180                                                                                                                
     Page 45, line 28 University of Alaska Deferred                                                                             
     Maintenance                                                                                                                
     $50,000,000                                                                                                                
                                                                                                                                
Co-Chair Merrick asked for more  information on the $200,000                                                                    
in  Statutory  Designated  Program Receipts  for  the  Eagle                                                                    
River  Salmon Viewing  Deck Replacement.  Ms. Teal  answered                                                                    
that   in   the   previous  year   there   was   a   similar                                                                    
reappropriation. She explained that  there was an issue with                                                                    
DNR  accepting private  donations for  the viewing  deck and                                                                    
the Eagle River Nature  Center organization could not convey                                                                    
the private donations  to DNR. There had been an  RPL on the                                                                    
last day of interim in  January to convey the donation money                                                                    
through  operating budget  authority, but  the appropriation                                                                    
was made  with capital funding and  capital budget authority                                                                    
was more  appropriate, hence,  it was  added to  the Capital                                                                    
Budget. Co-Chair  Merrick surmised the item  was a technical                                                                    
change to  allow the state  to accept the  private donation.                                                                    
Ms. Teal replied in the affirmative.                                                                                            
                                                                                                                                
3:29:47 PM                                                                                                                    
                                                                                                                                
Vice-Chair Ortiz asked if  all the appropriations designated                                                                    
as CCPF on page 5 were  direct GF spending. Ms. Teal replied                                                                    
in the affirmative.                                                                                                             
                                                                                                                                
Representative Josephson pointed to the  last item on page 5                                                                    
pertaining to the University  of Alaska deferred maintenance                                                                    
at $50 million. He asked if  the funding was expended at the                                                                    
discretion of  the Board of  Regents. Ms. Teal  deferred the                                                                    
answer to the Legislative Finance Division (LFD).                                                                               
                                                                                                                                
3:30:47 PM                                                                                                                    
                                                                                                                                
MICHAEL  PARTLOW,   FISCAL  ANALYST,   CAPITAL  COORDINATOR,                                                                    
LEGISLATIVE FINANCE  DIVISION, answered that once  the money                                                                    
was   appropriated  to   the   university,  the   university                                                                    
determined how  to spend  it. He  added that  the university                                                                    
developed a priority list that was available to the public.                                                                     
                                                                                                                                
Representative LeBon referenced the  CCPF line items on page                                                                    
5. He referenced the September  deadline for grant requests.                                                                    
He asked  if the money  was limited to the  listed projects.                                                                    
He  asked  whether the  money  would  lapse to  the  federal                                                                    
government if the projects on  the list failed to obtain the                                                                    
grants. Mr.  Partlow responded that  it was  complicated. He                                                                    
highlighted the language  on the last page of  the bill that                                                                    
granted authority  to OMB  on the condition  that if  any of                                                                    
the grants failed,  OMB could apply for  other projects that                                                                    
may  be eligible  using the  same authority.  Representative                                                                    
LeBon asked  whether a backup  list existed if  the projects                                                                    
listed were  not approved. Mr.  Partlow understood  that OMB                                                                    
had identified a  number of projects that  were eligible. He                                                                    
deferred to OMB for further answer.                                                                                             
                                                                                                                                
3:33:36 PM                                                                                                                    
                                                                                                                                
Mr. Steininger  answered that OMB  would follow the  list as                                                                    
appropriated  first. He  relayed that  OMB had  been working                                                                    
with  the Department  of Health  and Social  Services (DHSS)                                                                    
and other stakeholders  to develop a backup  list. There was                                                                    
not  currently  a  backup list  of  specific  projects.  The                                                                    
projects  outlined  on  page  5  appeared  to  be  the  most                                                                    
eligible  but  if any  listed  projects  failed, they  would                                                                    
identify   what    projects   they   would    choose   next.                                                                    
Representative LeBon  stated that  the clock was  ticking on                                                                    
the grant application  process. He asked if  the state would                                                                    
know  the outcome  of  the applications  in  enough time  to                                                                    
default to the backup projects  and not lose the dollars. He                                                                    
asked  if  OMB  had  developed a  strategy.  Mr.  Steininger                                                                    
answered  that turnaround  time was  a concern.  He detailed                                                                    
the   administration   was    working   with   the   state's                                                                    
Congressional delegation to put  some pressure on the United                                                                    
States  (US) Treasury  to offer  a better  timeline for  the                                                                    
grants   status.  He learned  that  there  was no  guarantee                                                                    
turnaround  time  once  the application  was  submitted.  He                                                                    
understood there  would be a prioritization  of applications                                                                    
of  certain types  of grants,  but  they did  not know  what                                                                    
applications would be reviewed first.                                                                                           
                                                                                                                                
Representative   LeBon  noticed   that  the   appropriations                                                                    
appeared  to  be a  precise  dollar  amount. He  listed  the                                                                    
following  project found  on page  39,  line 5  of the  bill                                                                    
[page  5  on  Summary  of Changes  document]  amount  as  an                                                                    
example:                                                                                                                        
                                                                                                                                
     Alutiiq Tribe of Old Harbor-Construction of Nuniaq                                                                         
     Community Center (CCPF) $4,454,968                                                                                         
                                                                                                                                
Representative LeBon surmised that  the state was attempting                                                                    
to take  full advantage of  the grant funding and  trying to                                                                    
maximize the benefit.                                                                                                           
                                                                                                                                
3:36:17 PM                                                                                                                    
                                                                                                                                
Ms.  Teal cited  the Nuniaq  project and  recalled that  the                                                                    
project  was existing  and  included background  information                                                                    
and deduced that the cost was accurate.                                                                                         
                                                                                                                                
Representative   Wool  referred   to  the   Nenana-Totchaket                                                                    
Agriculture Development  [page 5]  project in the  amount of                                                                    
$5 million and wondered what the project was.                                                                                   
                                                                                                                                
DAVID SCHADE, DIRECTOR,  DIVISION OF AGRICULTURE, DEPARTMENT                                                                    
OF  NATURAL RESOURCES  (via teleconference),  responded that                                                                    
the funding was  for the development of  about 100,000 acres                                                                    
of agriculture land located near  Nenana. He elaborated that                                                                    
in the prior  year funding for phase one of  the project was                                                                    
appropriated. The  total cost of  phase one was  $21 million                                                                    
and  the current  appropriation  advanced phase  one of  the                                                                    
project.   In   June   2022,   the   division   would   sell                                                                    
approximately 2  thousand acres and the  department believed                                                                    
it would  sell about 100,000 acres  in total. Representative                                                                    
Wool asked  if the funding  was for developing the  land for                                                                    
the  sale  of  the  acreage. Mr.  Schade  responded  in  the                                                                    
affirmative and  listed the  work being  done to  prepare it                                                                    
for agricultural development.                                                                                                   
                                                                                                                                
3:38:52 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz  referenced  page 5,  and  underlined  the                                                                    
project found on Page 41, line 11 of the bill as follows:                                                                       
                                                                                                                                
     Plant Materials Center Seed Processing and Storage                                                                         
     Capacity Improvements $2,000,000                                                                                           
                                                                                                                                
Vice-Chair  Ortiz requested  more information  regarding the                                                                    
project.                                                                                                                        
                                                                                                                                
THERESA CROSS,  ADMINISTRATIVE SERVICE  DIRECTOR, DEPARTMENT                                                                    
OF  NATURAL  RESOURCES,  OFFICE OF  MANAGEMENT  AND  BUDGET,                                                                    
OFFICE  OF THE  GOVERNOR (via  teleconference), deferred  to                                                                    
Mr. Schade.                                                                                                                     
                                                                                                                                
Mr.  Schade answered  that the  center was  a 400  acre farm                                                                    
located in  The Butte  [Matanuska-Susitna Borough]  that was                                                                    
operated by the Division  of Agriculture. The farm processed                                                                    
seed   for   farms   distributed   throughout   the   state.                                                                    
Currently, the farm was at  full capacity and a full upgrade                                                                    
of  the facility  was needed.  He listed  the farming  areas                                                                    
served: Delta, North Pole, Fairbanks, and the Kenai.                                                                            
                                                                                                                                
3:40:51 PM                                                                                                                    
                                                                                                                                
Ms.  Teal  discussed  page  6  on  the  summary  of  changes                                                                    
pertaining to the numbers section of the bill:                                                                                  
                                                                                                                                
     SECTION 11: Legislative Reappropriation                                                                                    
     SECTION   12:  Department   of  Family   and  Community                                                                    
     Services: appropriates prior  capital projects from the                                                                    
     existing DHSS to the correct new department.                                                                               
     SECTION  13:  Department  of Fish  and  Game:  includes                                                                    
     language to allow the proceeds  of sales of state-owned                                                                    
     vessels   and  aircraft   to  be   used  for   renewal,                                                                    
     replacement,  and   maintenance  of  the   vessels  and                                                                    
     aircraft for FY 22 and FY 23.                                                                                              
     SECTION  14(a):  Department   of  Health:  appropriates                                                                    
     prior capital  projects from the  existing DHSS  to the                                                                    
     correct new department.                                                                                                    
     SECTION   14  (b):   Appropriates  $5,000,000   to  the                                                                    
     Department  of Health,  Child Care  Program Office  for                                                                    
     initiatives  in the  Child  Care  and Development  Fund                                                                    
     Plan for Alaska.                                                                                                           
     SECTION 16: Legislative Reappropriation                                                                                    
     SECTION  18 (b):  Includes  a  Governor's amendment  to                                                                    
     reappropriate  funds   from  the  Fairview   Loop  Road                                                                    
     reconstruction   to   the    Totchaket   Road   project                                                                    
     ($15,000,000).                                                                                                             
     SECTION 18 (c): Legislative Reappropriation                                                                                
     SECTIONS 21-29: Legislative Reappropriations                                                                               
     SECTION  24 (l)  and (m):  Appropriates $25,000,000  to                                                                    
     the  Municipality   of  Anchorage  contingent   on  the                                                                    
     $25,000,000 match by the  Municipality (can be in-kind)                                                                    
     for the purpose of preparing a full financial package                                                                      
     for final investment decision for the Port of Alaska.                                                                      
     SECTION 30: Adds "transition costs" as an allowable                                                                        
     use of the reappropriation.                                                                                                
     SECTION 31: Legislative Reappropriation                                                                                    
     SECTION 32: Capital lapse language                                                                                         
     SECTIONS 33-34: Effective dates                                                                                            
                                                                                                                                
Representative Josephson  referenced page 6 that  listed the                                                                    
following in Section 18 (b) of the bill:                                                                                        
                                                                                                                                
     Includes a Governor's amendment to reappropriate funds                                                                     
     from the Fairview Loop Road reconstruction to the                                                                          
     Totchaket Road project ($15,000,000).                                                                                      
                                                                                                                                
Representative Josephson  deduced that the  Fairview project                                                                    
was in the Mat-Su and  the funding was reappropriated to the                                                                    
Totchaket project  in the  Interior of  the state.  He asked                                                                    
whether he was correct.                                                                                                         
                                                                                                                                
Co-Chair Merrick asked for comment by Mr. Schade.                                                                               
                                                                                                                                
Mr. Schade  answered in the  affirmative. He added  that the                                                                    
Department  of Transportation  and  Public Facilities  (DOT)                                                                    
found   other   funding   for    the   Fairview   Road   and                                                                    
reappropriated the funding to the Totchaket Road project.                                                                       
                                                                                                                                
3:45:29 PM                                                                                                                    
                                                                                                                                
Representative Josephson  asked if the Fairview  Road was in                                                                    
West Susitna.  Mr. Schade was  unsure of the details  of the                                                                    
project.                                                                                                                        
                                                                                                                                
ROB   CARPENTER,   DEPUTY    COMMISSIONER,   DEPARTMENT   OF                                                                    
TRANSPORTATION  AND  PUBLIC  FACILITIES,  replied  that  the                                                                    
Fairview  Loop  Road  was  located in  the  Mat-Su  and  the                                                                    
Totchaket Road  was located in  the Interior and lead  to an                                                                    
area  for  resource  development.  He  elaborated  that  the                                                                    
Fairview  Loop Road  was  initially  funded through  General                                                                    
Obligation (GO)  Bonds and  was converted to  GF in  a prior                                                                    
year  to  alleviate the  bond  funding.  He noted  that  the                                                                    
Fairview Loop  Road was  currently in the  right of  way and                                                                    
utility  relocation  stage  and  there was  a  potential  to                                                                    
convert it  to federal  money, which freed  up GF  money for                                                                    
the  resource road  that was  not  required to  be built  to                                                                    
federal standards and could be constructed quickly.                                                                             
                                                                                                                                
3:47:11 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  referenced Section  24 (l)  and (m)  of the                                                                    
bill  listed   on  page   6  and   noted  the   $25  million                                                                    
appropriation for the  Port of Alaska. He  recalled that the                                                                    
port  needed  $600 million  from  the  state. Mr.  Carpenter                                                                    
answered  he  was  not  familiar with  the  Port  of  Alaska                                                                    
project. The numbers sounded right to him.                                                                                      
                                                                                                                                
Co-Chair  Foster  pointed  out  that  the  $25  million  was                                                                    
substantially  less than  the requested  amount. He  learned                                                                    
that the Senate wanted to emphasize statewide projects.                                                                         
He  referred  to the  document  titled   2022 Legislature  -                                                                    
Capital   Budget  House   District  Summary   -  House   Sup                                                                    
Structure   (copy   on  file)  and  noted   that  it  showed                                                                    
Unrestricted  General   Fund  (UGF)  spend  broken   out  by                                                                    
district. He pointed to the  UGF total spend for the current                                                                    
version I and noted it was  $582 million that fell under the                                                                    
statewide  category. He  related that  statewide items  were                                                                    
items   like   deferred   maintenance   for   schools,   the                                                                    
university, state buildings, public  safety housing, etc. He                                                                    
believed  the  goal  of  the   bill  was  less  emphasis  on                                                                    
communities and  districts and more  emphasis was  placed on                                                                    
statewide  projects instead.  He  thought that  part of  the                                                                    
other rationale  was not wanting  to use all of  the surplus                                                                    
funds left  over after the  operating budget was  funded. He                                                                    
believed that there was a  desire to put money into savings.                                                                    
He wanted to address the funding  for the Port of Alaska and                                                                    
Port of Nome. He asked  how much the capital budget normally                                                                    
leveraged for federal  funds and recalled that  it was about                                                                    
$150 million. He asked if his statement was correct.                                                                            
                                                                                                                                
3:50:20 PM                                                                                                                    
                                                                                                                                
Mr.  Carpenter   answered  that   the  number   was   fairly                                                                    
accurate  for  federal match money. He  stated that Co-Chair                                                                    
Foster was in the ballpark.                                                                                                     
                                                                                                                                
Co-Chair  Foster discussed  what was  in the  capital budget                                                                    
versus what was  not included. He highlighted  that the City                                                                    
of  Nome  had  requested  $175  million  for  its  port.  He                                                                    
mentioned  other requests.  He  commented on  the intent  of                                                                    
wanting the  budget to  focus on  statewide needs.  He noted                                                                    
that rural  Alaska depended on  the Port of Alaska  for food                                                                    
and  supplies.  He  supported  the   Port  of  Alaska  as  a                                                                    
statewide  project.  He  lauded Senator  Murkowski,  Senator                                                                    
Sullivan,  and the  late Congressmen  Young  for their  work                                                                    
related  to the  Port of  Nome and  their inclusion  of $250                                                                    
million for the  port in IIJA. He remarked on  the needs for                                                                    
the Port of  Nome and listed a Coast Guard  presence and  to                                                                    
support the Navy. He pointed  to leveraging federal funds in                                                                    
relation  to   highway  funding  and  stated   that  it  was                                                                    
considered desirable  and was sought after.  He commented on                                                                    
the  $250  million   the  state's  Congressional  delegation                                                                    
secured  for  the  Port  of  Nome  and  indicated  that  the                                                                    
matching funds  needed to  be secured  by February  2023. He                                                                    
wanted to highlight the opportunity  to leverage the federal                                                                    
funds for the port.                                                                                                             
                                                                                                                                
3:53:24 PM                                                                                                                    
                                                                                                                                
Representative Wool  appreciated the comments  regarding the                                                                    
ports. He  noted the  difference between  statewide spending                                                                    
like  deferred  maintenance   versus  statewide  impact  for                                                                    
things like ports  and airports. He believed  that goods and                                                                    
products from  ports were distributed  around the  state and                                                                    
had statewide  impact even though  they were located  in one                                                                    
place.                                                                                                                          
                                                                                                                                
Vice-Chair Ortiz  understood that IIJA funds  that the state                                                                    
would disperse were  in the budget. He asked  whether he was                                                                    
correct.  Ms. Teal  answered in  the  affirmative and  noted                                                                    
that  the projects  listed in  HB 414  were included  in the                                                                    
bill with the exceptions she noted earlier.                                                                                     
                                                                                                                                
Representative  Carpenter asked  whether  the IIJA  projects                                                                    
were spread throughout the budget.  Ms. Teal answered in the                                                                    
affirmative.  Representative  Carpenter   asked  if  it  was                                                                    
possible to get  a summary of IIJA projects.  Ms. Teal would                                                                    
follow up with the information.                                                                                                 
                                                                                                                                
Co-Chair Merrick interjected that  many of the IIJA projects                                                                    
were  in the  Statewide  Transportation Improvement  Program                                                                    
(STIP).                                                                                                                         
                                                                                                                                
3:56:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Merrick  WITHDREW her OBJECTION to  the adoption of                                                                    
the work draft.                                                                                                                 
                                                                                                                                
There  being NO  further OBJECTION,  Work Draft  32-GH2436\I                                                                    
was ADOPTED.                                                                                                                    
                                                                                                                                
HB 283 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Merrick reviewed the schedule for the following                                                                        
morning.                                                                                                                        
                                                                                                                                

Document Name Date/Time Subjects
SB 81 HCS CS FIN WorkDraft v.W 042222.pdf HFIN 4/28/2022 1:30:00 PM
SB 81
HB 283 A HCS1 ProjectCompareByAgency 042822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283
HB 283 B HCS1 ProjectDetailByAgency 042822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283
HB 283 C HCS1 AgencySummary 042822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283
HB 283 HCS WorkDraft v. I 042822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283
HB 283 Summary of Changes Ver A to Ver I 042822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283
HB 283 D HCS 1 House District Summary 042822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283
HB 283 E HCS1 House District Summary 042822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283
HB 283 Port of Nome USACE 42822.pdf HFIN 4/28/2022 1:30:00 PM
HB 283