Legislature(2023 - 2024)ADAMS 519
03/12/2024 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB268 || HB270 | |
| Public Testimony: Offnets | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 268 | TELECONFERENCED | |
| += | HB 270 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 268
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making capital appropriations; making
supplemental appropriations; making reappropriations;
making appropriations under art. IX, sec. 17(c),
Constitution of the State of Alaska, from the
constitutional budget reserve fund; and providing for
an effective date."
HOUSE BILL NO. 270
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:40:24 PM
Co-Chair Johnson provided comments about the committee
substitute process. She thanked Legislative Finance
Division Director Alexei Painter for his work. She relayed
her intention for a robust budget process with an ample
opportunity for public testimony. The committee substitutes
(CS) contained the numbers section recommendations from the
subcommittee process and language section recommendations
from her office. She noted the bills reflected a starting
point and there would be a more complete budget picture
with the release of the spring revenue picture the
following day. The spring forecast and additional
governor's amendments would be presented to the committee
on Thursday [March 14]. Her goal was to give each
expenditure a hard look, make smart reductions, fully fund
essential services, have the largest PFD, and leave some
money for the capital budget.
Co-Chair Foster MOVED to ADOPT the proposed committee
substitute for HB 268, Work Draft 33-GH2492\U (Marx,
3/11/24).
Co-Chair Johnson OBJECTED for discussion. She invited her
staff to explain the changes in the CS.
1:42:08 PM
REMOND HENDERSON, STAFF, REPRESENTATIVE DELENA JOHNSON,
explained the changes in the CS. He stated that the CS
reflected all of the actions of the subcommittees and
changes made to the language section compared to the
original version of the bill introduced January 18, 2024.
He listed five additional documents included in members'
packets (copy on file): 1) Agency Summary 1 UGF; 2)
Agency Summary 2 All Funds; 3) Transaction Compare 1
Gov Amend to HCS1; 4) Transaction Compare 2 Gov
Supplemental 12/15/24 to HCS1; and 5) Transaction Compare 3
Gov Amend to HCS1 Mental Health Only. The CS included all
of the changes from the subcommittee closeouts. The
subcommittee closeouts included all of the governor's
amendments to the numbers section submitted on February 14,
2024. He noted the amendments had been reviewed by the
subcommittees and had also been presented to the committee
by the Office of Management and Budget (OMB) on February
15.
1:43:43 PM
Mr. Henderson provided a summary of the operating budget
CS. The CS reflected a total FY 25 budget of
$10,232,750,300 for agency operations (day-to-day
operations of state government) and $680,087,000 for
statewide items (debt service, retirement payments, special
appropriations, and fund capitalizations). The funding
sources for agency operations and statewide items were
$4,709,062,000 unrestricted general funds (UGF),
$892,610,400 designated general funds (DGF), $1,712,696,800
in other funds (i.e., authorization of corporate receipts
such as Alaska Industrial Development and Export Authority
(AIDEA) and Alaska Housing Finance Corporation (AHFC);
interagency receipts; and airport receipts). The CS also
reflected $3,539,471,100 in federal funds.
Mr. Henderson summarized the changes made between the
governor's amended budget and the CS. There were 19 agency
subcommittee closeouts and some changes to the governor's
amended request. Compared to the governor's amended budget,
the CS reflected a general fund increase of $6,581,200 in
agency operations (a 0.2 percent increase). There was a UGF
decrease of $4,996,100 for statewide items (a 1.4 percent
decrease).
Mr. Henderson addressed changes in agency operations that
were not discussed in the subcommittee process. He turned
to page 4, line 22 of the CS pertaining to Community and
Regional Affairs under the Department of Commerce,
Community and Economic Development (DCCED). He explained
that Section 18(f) of the original bill appropriated
$296,500 to DCCED for a grant payment to Alaska Legal
Services. The total appropriation for Alaska Legal Services
was moved to the numbers section of the bill. He moved to
page 5, line 28 pertaining to a $3,086,100 increment for
the Alaska Gasline Development Corporation (AGDC) that had
been moved from the fund capitalization section of the
original bill to the numbers section of the CS. Page 17,
line 27, pertained to behavioral health and treatment
recovery grants. He referenced a $99,100 increment that had
been funded in the governor's original budget with UGF. The
governor's amended budget included a fund source change to
restorative justice funds. The CS returned the fund source
to UGF; therefore, the CS reflected a decrease in UGF funds
of that amount.
1:48:05 PM
Mr. Henderson turned to page 20, lines 22 through 32 for
Medicaid Services under the Department of Health (DOH). The
CS added wordage to read:
No money appropriated in this appropriation may be
expended for an abortion that is not a mandatory
service required under AS 47.07.030(a). The money
appropriated for the Department of Health may be
expended only for mandatory services required under
Title XIX of the Social Security Act, unless a U.S.
Supreme Court decision provides new precedent, and for
optional services offered by the state under the state
plan for medical assistance that has been approved by
the United States Department of Health and Human
Services.
Mr. Henderson relayed that the wordage was identical to
language from the previous year. He moved to page 20, line
21, that deleted the $90,700 UGF that was spent on
abortions in FY 23. Page 20, lines 28 through 32 included
the following intent language for DOH:
It is the intent of the legislature that the
Department of Health submit the Medicaid Services
Projection Model and Summary Overview of UGF Medicaid
Increments with year-to-date information for fiscal
year 2025 to the Co-Chairs of the Finance Committees
and the Legislative Finance Division by December 15,
2024, and subsequently update the report before
resubmitting it by February 19, 2025.
Representative Josephson asked for the page number.
Mr. Henderson answered that he was speaking to page 20,
lines 28 through 32. He turned to page 21, line 25
pertaining to workers' compensation. He detailed that
$118,000 was added to implement the compensation
recommendation from the Workers' Compensation Hearing
Officers Study. The item was a governor's amendment that
the Legislative Finance Division (LFD) inadvertently left
out of the Budget Analysis sheet when the subcommittee
closed out. Page 28, lines 9 and 10 pertaining to the
Alaska State Troopers (AST) and line 16 pertaining to the
Alaska Wildlife Troopers (AWT). He explained that Section
25 of the original bill contained a $500,000 increment to
the AST detachment and $300,000 to AWT. The language was
deleted in the CS and the appropriation was added in the
numbers section.
Mr. Henderson turned to page 28, lines 29 and 30 pertaining
to a $99,100 increment to the Council on Domestic Violence
and Sexual Assault (CDVSA). He explained that the
governor's amended budget had changed the fund source from
restorative justice funds to UGF. The CS reversed the fund
source change to reflect the governor's original request.
Line 29 reflected a decrease of $99,100. Page 28, line 31
deleted the increase of $198,300 in Restorative Justice
Account authority made in the governor's amended budget and
returned it to the level in the original request. He
detailed there had been $98,000 of restorative justice
authority reduced in DOH and the Department of Public
Safety (DPS) that was replaced with UGF. The restorative
justice funds were reduced from the departments and were
used to increase the funding in the Violent Crimes
Compensation Board. He reiterated that the change reverted
back to the governor's original request and contained no
UGF.
1:52:41 PM
Mr. Henderson relayed there were several changes to the
fund capitalization section of statewide items. He
explained that there was a change in the language section
made by the governor in the amended budget; however,
language changes were not under the purview of the finance
committees. He would cover the issue when he discussed
other changes in the language section. Legislative Legal
Services made several minor technical changes that he would
not review.
Mr. Henderson turned to Section 7, the supplemental
Department of Administration (DOA) on page 55, line 6 and
line 11. The section added the date June 30, 2025, to
extend the multiyear appropriation one additional year to
enable the DOA to continue addressing the backlogs in the
Office of Public Advocacy and Public Defender Agency. He
read language pertaining to the abandoned motor vehicle
fund on page 55, lines 21 through 25:
The unexpended and unobligated balance of the
abandoned motor vehicle fund (AS 28.11.110) on June
30, 2024, estimated to be $110,000, is appropriated to
the Department of Administration, division of motor
vehicles, for the purpose of reimbursing
municipalities for the costs of removing abandoned
vehicles from highways, vehicular ways or areas, and
public property for the fiscal years ending June 30,
2024, and June 30, 2025.
Mr. Henderson relayed that the language was also included
in the FY 24 budget. The fund was capitalized in Section 32
of the CS; however, there was an appropriation needed to
expend the funds to avoid a dedicated fund. He explained
that revenue from the sale of abandoned vehicles collected
in the fund without an appropriation.
1:55:35 PM
Mr. Henderson turned to Section 8, the supplemental for
DCCED on page 55. He pointed to lines 26 through 30
reflecting $3 million supplemental funding for Food Banks.
The increment was changed from a supplemental appropriation
for FY 24 to a multiyear appropriation for FY 24 and FY 25.
The language change allowed DCCED to continue making grants
to Food Banks in FY 25. He stated it was unlikely that all
grant funds would be expended in FY 24. Page 55, line 31,
through page 56, line 5 applied to DOH and was a change
from a supplemental appropriation in FY 24 to a multiyear
appropriation for FY 24 and FY 25. The change would enable
DOH to continue to address the backlog in the Supplemental
Nutritional Assistance Program (SNAP) to continue with
applications in FY 25. The Permanent Fund section began on
page 57, line 26 through 58, line 7. Page 58, subsection
(c), lines 3 and 4 were changed to appropriate the entire
percent of market value (POMV) draw from the Earnings
Reserve Account (ERA) to the general fund. An appropriation
would be made out of the general fund for the Permanent
Fund Dividend (PFD) and state operations once the amounts
had been determined. He stated it was deemed more
appropriate to determine the amounts after the release of
the spring forecast from the Department of Revenue on March
14.
Mr. Henderson relayed that Section 16(e) of the original
bill included inflation proofing of $1,468,000 from the ERA
to the principal of the Permanent Fund, which was removed
from the CS. There was no inflation proofing in FY 16
through FY 18 and FY 21 to FY 22, but there were transfers
from the ERA to the fund principal of $4 billion in FY 20
and FY 22, $4.2 billion in FY 23, and $1.46 billion in FY
24. Section 17, page 58, lines 8 through 27 was a new
section including bonuses for certain executive branch
employees similar to language the previous year. The
language specified that OMB would send letters of agreement
and cost estimates to the legislature as opposed to DOA.
1:59:22 PM
Representative Ortiz looked at Section 17 and asked if Mr.
Henderson was saying the section was included in the budget
the previous year. He asked how it was new.
Mr. Henderson clarified that the section was new in the CS
because the governor had not included it in his original
budget. He explained that the governor had not included the
item in the FY 24 budget either and it had been added in
the CS then as well.
Representative Ortiz asked if it was a correction of an
error.
Mr. Henderson deferred the question to Mr. Painter.
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
answered that the language was added by the legislature the
past several years. The reporting requirement was a policy
choice by the legislature; therefore, typically such
language was put forward by the legislature.
2:01:05 PM
Mr. Henderson read Section 17(g), page 59, lines 25 through
28:
The amount necessary to cover actuarial costs
associated with bills in the finance committee of each
house of the legislature, estimated to be $0, is
appropriated from the general fund to the Department
of Administration for that purpose for the fiscal year
ending June 30, 2025.
Mr. Henderson explained that the language was added to
clarify that actuarial costs did not have to be obtained
until the bill reached the finance committee. He elaborated
the language aligned with an existing DOA policy. The
language had also been included in the FY 24 budget.
Section 18, page 59, lines 29 through page 60, line 2 was a
new section dealing with the abandoned motor vehicle fund.
Adding the language with a multiyear appropriation for FY
25 and FY 26 would eliminate the need to request a
supplemental appropriation in next year's language section.
Receipts in FY 25 could be expended in FY 26.
2:02:51 PM
Representative Stapp asked how it was possible to extend an
appropriation to FY 26 when it was a future legislature.
Mr. Henderson asked if Representative Stapp was asking if
the item bound a future legislature.
Representative Stapp agreed. He restated his question.
Mr. Painter responded that it was not possible to spend
future revenue, but an appropriation could be spent over
multiple years as long as it used current-year revenue. The
provision took the balance as of the end of FY 24 and spent
it across FY 25 and FY 26.
Mr. Henderson relayed that the appropriation to Alaska
Legal Services in Section 18(f) of the original bill had
been deleted. He stated, "we've now put this in the
language section, we've now put this in the numbers
section." The total amount in the numbers section was the
same as the governor's amended budget. The action merely
simplified the bill. Page 61, lines 18 through 22 included
a governor's amendment to appropriate $340,000 in statutory
designated program receipts (SDPR) collected by DCCED for
natural hazard planning assistance for FY 25 and FY 26.
2:05:20 PM
Mr. Henderson turned to page 61, lines 23 through 26
showing an additional $10 million UGF for the Community
Assistance Program in FY 25. He explained that without the
appropriation the distribution would only be $20 million
for community assistance. By statute, the distribution was
one-third of the balance of the fund; the balance was
currently $60 million. He explained that the governor had
vetoed the $30 million appropriated by the legislature for
FY 24. He elaborated that if the veto had not occurred, the
fund balance would currently be $90 million and $30 million
of that amount could be distributed. The addition of the
$10 million in the FY 25 budget would enable a full
distribution to the Community Assistance Program.
Mr. Henderson moved to Section 20, Department of Education
and Early Development. He explained that Section 19(f) of
the original bill had been deleted from the language
section that appropriated $1 million to provide a grant to
Alaska Resources Education to expand the Statewide
Workforce Development Initiative. He moved to Section 21
for the Department of Fish and Game. He detailed that
Section 20 of the original bill appropriated $300,000 from
Commercial Fisheries Entry Commission (CFEC) receipts for
the purpose of information technology upgrade projects for
the fiscal years ending June 30, 2025, and 2026. The
increment was deleted from the language section and placed
in the numbers section of the CS with a $150,000 annual
temporary increment to avoid overdrawing CFEC receipts.
Mr. Henderson addressed Section 21, page 62, lines 24
through 27 for the Department of Fish and Game (DFG). He
stated that federal funds received for fisheries disasters
in FY 25, estimated to be $0, was appropriated to DFG for
FY 25 and FY 26, which would enable the department to
expend and receive funds for fisheries disasters. The
increment replaced a similar capital request and provided a
more flexible option. He added that the funding was more
appropriately placed in the operating budget. Section 21
pertaining to DOH was deleted and the department was given
open-ended federal authority for Medicaid Services. The
governor's amended budget added $293,730,184 as the
estimated amount to be received. The increment had been
added to the numbers section of the bill. He stated that if
the amount was insufficient, additional federal authority
could be added in the FY 25 supplemental budget. The open-
ended language was added during the COVID-19 pandemic and
was no longer necessary.
2:08:52 PM
Mr. Henderson turned to Section 27, page 65, lines 8
through 15 pertaining to the University of Alaska. The
section appropriated $10 million from the general fund and
$10 million in UA receipts to the University of Alaska
Fairbanks to achieve research Tier 1 status as defined by
the Carnegie classification system for FY 25 through FY 27.
The item had been requested in the governor's capital
budget, but expenses were more aligned with operating
expenditures. Section 31, page 72, lines 5 through 9 was
the Public Education Fund capitalization. The section was
modified to account for estimated prior balance due to
unspent Pre-K money from the Alaska Reads Act passed in
2022. The department transferred $3 million to the Public
Education Fund in FY 23 and $6 million was transferred in
FY 24 for Pre-K; however, the department was only expected
to use $1.7 million of the total. Consequently, the CS
reduced the amount by $7.3 million.
Representative Ortiz asked Mr. Henderson to elaborate on
the reduction.
Mr. Henderson explained that $3 million had been
appropriated in FY 23 and $6 million was transferred in FY
24, for a total of $9 million. The department expected to
only spend $1.7 million of the total; therefore, the
increment had been reduced by $7.3 million.
Representative Ortiz asked if the $1.3 million was for Pre-
K.
Mr. Henderson agreed.
2:11:59 PM
Representative Stapp looked at line 5 and surmised it was
foundation formula funding. He thought the excess lapse
funding was a result of a difference in the expected
average daily membership (ADM) associated with
correspondence kids versus kids in brick and mortar
schools.
Mr. Henderson replied that he did not believe the funding
was related to the Base Student Allocation (BSA). He
believed the money was appropriated specifically for the
Pre-K program and would not be used.
Mr. Painter added that the Alaska Reads Act allowed Pre-K
students to count as half a student for approved programs.
He explained that the specific grant program did not begin
until FY 24. There was a fiscal note for FY 23 because
there had been a misunderstanding of the effective dates at
the end of the 2022 session. He elaborated that $3 million
had been transferred for the purpose in FY 23, but there
had been no program at the time; therefore, the money
deposited into the Public Education Fund merely sat there.
The Alaska Reads Act specified there was $3 million
additional each year; therefore, $6 million went into the
fund the second year. The program was established late and
only one district was able to successfully apply for the
funds in the current year, which accounted for the $1.7
million. The language deducted the prior year balance in
the Public Education Fund to take into account the Pre-K
money that was not spent.
Co-Chair Johnson noted there were 15 minutes remaining
until public testimony.
Representative Galvin stated her understanding there was
language in the Alaska Reads Act specifying that in order
to qualify for that type of program it was necessary to
meet a certain level of Head Start parameters. She asked,
"If the language were to change by next year, then would
this change, or does this stay as is because of previously
spent dollars."
Mr. Painter answered that any change to the language would
likely not impact the FY 24 spending because the
application period was complete and only one district
qualified. He relayed that if a change was made to the
qualifications, it would likely impact FY 25. The FY 25
amount included $9 million for the purpose in the Public
Education Fund.
2:15:37 PM
Mr. Henderson moved to Section 31(t), page 74, lines 2 and
3. The section was modified to change the $30 million
funding for the capitalization of the Power Cost
Equalization (PCE) Fund [community assistance fund]. The
original bill funding sources contained $27,818,100 from
the PCE Fund and $2,181,900 UGF. The CS reflected a $30
million capitalization of the [community assistance] fund
from the PCE Fund. He explained that with the transfer of
PCE Fund management to the Alaska Permanent Fund
Corporation (APFC) it was difficult to track the management
fees deducted from the waterfall that determined the amount
available from the PCE waterfall for community assistance
each year. The governor's budget did not deduct the cost of
the management fee. The CS reflected a choice to base the
waterfall on actual expenditures in FY 23 rather than
estimated FY 24 expenditures, which resulted in sufficient
PCE funding to cover the FY 25 payment.
Mr. Henderson relayed that Section 31(u) of the original
bill contained $3,086,100 UGF for the Alaska Liquefied
Natural Gas (AKLNG) project. The section was removed in the
CS and the same appropriation was placed in the number
section. He highlighted a new section [Section 32(o)] on
page 76, lines 18 through 20:
The amount received by the Alaska Commission on
Postsecondary Education as repayment for WWAMI medical
education program loans, estimated to be $575,000, is
appropriated to the Alaska higher education investment
fund (AS 37.14.750).
Mr. Henderson explained that the language pertaining to the
Washington, Wyoming, Alaska, Montana, and Idaho (WWAMI)
program was in previous budgets to align with the Higher
Education Fund as the funding source for the WWAMI program.
He noted the section had not been included in the
governor's FY 25 budget. He relayed that Section 33(c) of
the original bill contained an increment of $2,410,000 for
state retirement payments to the Judicial Retirement System
(JRS). The section had been deleted from the CS. The June
30 valuation for past service liabilities was used to
determine the FY 25 appropriation; however, the valuation
was 101.6 percent of the value of the assets. The June 2023
draft valuation was at 112.6 percent of the value of the
assets. There was no unfunded liability in Teachers'
Retirement System (TRS). Therefore, the $2.4 million
exceeded the amount needed to address future payments and
was unnecessary.
2:19:37 PM
Mr. Henderson turned to the last change in the bill in
Section 40, page 81, line 12, which added retroactivity
language in case the bill's effective date failed.
Representative Josephson looked at language on page 20,
line 22 of the bill that prohibited payment of abortion
services under general fund medical. He thought Mr.
Henderson had stated that $90,700 had been removed for that
expense.
Mr. Henderson responded that the amount was removed from
the allocation on [page 20] line 21. He stated it was the
amount spent on abortions the previous year.
Representative Josephson stated, "So, that's illegal and so
this is basically a cut to Medicaid?" He asked if his
understanding was accurate.
Mr. Henderson replied affirmatively.
2:21:52 PM
AT EASE
2:22:13 PM
RECONVENED
Co-Chair Johnson WITHDREW the OBJECTION to the adoption of
the work draft for HB 268.
There being NO further OBJECTION, Work Draft 33-GH2492\U
was ADOPTED.
2:22:38 PM
Co-Chair Foster MOVED to ADOPT the proposed committee
substitute for HB 270, Work Draft 33-GH2490\S (Marx,
3/11/24).
Co-Chair Johnson OBJECTED for discussion. She invited her
staff to explain the changes in the committee substitute
(CS).
REMOND HENDERSON, STAFF, REPRESENTATIVE DELENA JOHNSON,
explained the changes in the CS. He stated that the changes
made in the operating portion of the mental health budget
were discussed during the subcommittee closeout. The
[Alaska Mental Health Trust Authority] board approved
$133,500 for a long-term care ombudsman position in
addition to $126,100 for the Juneau mental health court.
The items were not included in the governor's request and
had been added by the subcommittees.
Co-Chair Johnson asked if Mr. Henderson was referencing a
specific page in a document.
Mr. Henderson clarified he was not following the bill
because there were only a couple of changes. The two
changes he listed had been discussed during the
subcommittee closeout process. He reviewed mental health
capital budget items approved by the AMHTA board that were
excluded from the governor's budget. The CS added
$2,850,000 for the Homeless Assistance Program, $575,000
for home modification and upgrades, and $1,750,000 for
special needs housing grants.
Representative Josephson asked about the $2.8 million.
Mr. Henderson restated the mental health capital budget
items added in the CS including $2,850,000 for the Homeless
Assistance Program, $575,000 for home modifications and
upgrades, and $1,750,000 for special needs housing grants.
2:26:26 PM
Co-Chair Johnson WITHDREW the OBJECTION to the adoption of
the work draft for HB 270.
There being NO further OBJECTION, Work Draft 33-GH2492\U
was ADOPTED.
2:27:02 PM
AT EASE
2:36:04 PM
RECONVENED
^PUBLIC TESTIMONY: OFFNETS
2:36:14 PM
Co-Chair Johnson reviewed the protocol for public
testimony. She provided the written testimony email address
and the call in numbers.
2:37:57 PM
AT EASE
2:38:20 PM
RECONVENED
ROBYN NIAYUQ BURKE, ASSOCIATION OF ALASKA SCHOOL BOARDS,
UTQIAGVIK, testified in support of education funding. She
thanked the committee members for voting to pass SB 140.
She highlighted that the Base Student Allocation (BSA)
increase of $680 was critical. She shared that the North
Slope Borough Board of Education had put forward several
initiatives that reflect Inupiaq values and incorporated
language and culture into all aspects of learning by
strengthening culture based curriculum and reintroducing
the Inupiaq language immersion program. She stated that the
passing of the Alaska Reads Act indicated the legislature
saw the need for targeted interventions. The board had
directed its administration to hire interventionists
without receiving additional funding to support academic
growth. She relayed that a $680 increase meant the district
could sustain the critical programs. She urged committee
members to think it over carefully. She thanked the
committee.
2:40:49 PM
DANA MOCK, ASSOCIATION OF ALASKA SCHOOL BOARDS, DELTA
GREELY, thanked the committee for the opportunity to speak.
He emphasized the importance of the $680 BSA increase in SB
140. He shared that his home school program had 333 kids
and one teacher. Schools continued to do more with less. He
stated that the governor's Alaska Reads Act was a great
program, but it was not properly funded. He was praying the
funding would get through. He emphasized the importance of
the funding for the current and future generations. He
thanked the committee.
2:42:48 PM
MARGO BELLAMY, ASSOCIATION OF ALASKA SCHOOL BOARDS,
ANCHORAGE, shared that she is the current president of the
Anchorage School Board. She profusely thanked the committee
for the legislature's work on SB 140 and commitment to
Alaska's children. She reviewed the association's mission
to advocate for children and youth by assisting school
boards in quality education focused on student achievement
through effective local governance. She emphasized that
every student in the state deserved the best education
possible in safe and academically engaging schools. She
stated that Alaska's public schools were struggling, but on
the right track. She stressed that students must have
equitable access to the digital world. She underscored the
need for a permanent increase in the BSA. She emphasized
the need for local control over educational matters. She
stated that while some districts were in better shape than
others, they were all struggling, and they all wanted to
help and be part of the solution. She underscored that
Alaska's children were the state's future. She thanked the
committee.
Co-Chair Johnson appreciated the comments on SB 140 but
clarified it was not in the budget. She stated it was a
large fiscal note that would be added later.
2:46:41 PM
TOM ATKINSON, GENERAL MANAGER AND CEO, KOTZEBUE ELECTRIC
ASSOCIATION, KOTZEBUE (via teleconference), testified in
support of funding the Renewable Energy Fund (REF) through
the Alaska Energy Authority. The fund was currently in
round 16 and Kotzebue Electric Association was one of the
three projects selected for funding. The three projects
totaled $7.6 million, but only $5 million was allocated to
the fund. There were 24 projects across the state on the
list that totaled $32 million. He hoped the legislature
would allocate more money to the fund in order to fully
fund the association's project and address more renewable
energy projects. The fund had helped the association, which
started with wind energy in the 1990s. He provided details
on funding that had been provided. The association had
received funding in REF round 13 for battery energy storage
system design work. The project had also recently received
$3 million in federal funding. The fund had also helped pay
for wind to solar transitions for its solar farm. The fund
helped many communities throughout the state move forward
on renewable energy projects.
2:49:42 PM
TOPAZ STOTTS, SELF, ANCHORAGE (via teleconference), thanked
the committee for its support of SB 140. She requested a
BSA increase of $680. She asked the committee not to take
from the BSA number to fund other additions to the bill.
She stated that legislators were the experts in their field
of work and teachers were the experts in classrooms. She
emphasized the need for increased funding in order for
students to be successful. She stated that the Alaska Reads
Act could be implemented, but educational results would
only change once the proper funding and support was
received. She emphasized that the Alaska Reads Act had to
be funded in order to be successful. Funding would enable
schools to hire interventionists or reading specialists to
help support reading groups. She listed other benefits of
additional funding. She highlighted current staffing
limitations. Class lessons were currently taught to the
entire class simultaneously, which did not allow for
addressing different reading levels. She thanked the
committee for investing in students.
2:51:45 PM
RON CURTIS, GENERAL MANAGER, INTER ISLAND FERRY AUTHORITY,
PRINCE OF WALES (via teleconference), testified in support
of funding for the Inter Island Ferry Authority (IFA). He
shared that the IFA served about 50,000 passengers per year
providing daily transportation between Prince of Wales
Island and Ketchikan for medical, sporting events, and many
other services. The ferry operated on a budget of under $5
million per year. He detailed that 75 percent of the IFA
budget was self-funded through its fares. The IFA relied on
federal funds for its maintenance and the federal funding
required matching funds. Over its 22 years of operation the
IFA annually received about $250,000 in the state's
operating budget. He elaborated that FY 24 was the first
year since 2014 that no state funding was allocated to IFA.
The funds were not included in the FY 25 budget. He relayed
that the IFA had $25,000 in the bank currently and was
really struggling. He emphasized the need for matching
funds in order to access the federal funds.
2:54:39 PM
CHRISTINE PATE, LEGAL PROGRAM DIRECTOR, ALASKA NETWORK ON
DOMESTIC VIOLENCE AND SEXUAL ASSAULT (ANDVSA), SITKA (via
teleconference), asked for a restoration of $4 million in
the Council on Domestic Violence and Sexual Assault (CDVSA)
budget. She remarked that critical programs could be at
risk as a result of the cut. The ANDVSA legal program also
received CDVSA funds through the VOCA [Victims of Crime
Act] enhanced services funding that was at risk with the
proposed cut. The agency used CDVSA funding to fund a small
staff providing civil legal services to survivors
statewide. The agency also used volunteer and contract
attorneys. In FY 23, the agency provided legal services to
266 survivors and volunteer and contract attorneys donated
$675,000 in legal services to survivors. Donated services
would be at risk if the agency lost its CDVSA funding. She
listed various communities the agency served in the past
week. She provided an example of an abusive situation and
the services that were needed to help the victim move
forward. There was no general right to counsel in the civil
justice system and survivors had to look for help from a
small number of nonprofit providers. She highlighted that
even with current funding the agency had to turn away
individuals. The cut meant the agency could lose an
attorney and half a paralegal position. She thanked the
committee.
2:57:26 PM
HEIDI YOUNG, ISLAND CARE SERVICES, PRINCE OF WALES (via
teleconference), highlighted the critical importance of the
Medicaid waiver program. She stressed that the waivers
needed to continue to be funded and saved the state money
in the short and long-term. The funds enabled people to
return home from the hospital and remain in their
communities without having to live out their days in a
higher level of care or institutional setting. She implored
the committee to look at expanding funding for mental
health services across Alaska. She stated that 80 to 90
percent of drug addictions were due to early childhood
trauma and poor coping skills. Alaska currently had a
serious shortage of behavioral health services for people
seeking help. The services needed to be delivered to
children in schools and other areas.
2:59:19 PM
LOUIS THEISS, SELF, GIRDWOOD (via teleconference),
requested a restoration of $2.7 million to senior community
grants. He stated that seniors in his town used Meals on
Wheels and other related services. He noted that the state
contribution provided the structure for like enhancements
by volunteers, churches, cash donations, and nonprofits. He
thanked the committee.
Co-Chair Johnson noted there were no additional callers on
the list. She noted the committee would take a 15 minute at
ease.
3:01:14 PM
AT EASE
3:15:03 PM
RECONVENED
Co-Chair Johnson noted there were no additional testifiers.
She provided the call in numbers. She noted that the
deadline to call in was 3:30 p.m.
3:16:15 PM
AT EASE
3:30:40 PM
RECONVENED
Co-Chair Johnson noted information about the following
meeting.
3:31:29 PM
KAI MONTURE, SELF, JUNEAU (via teleconference), remembered
Ashley Johnson Barr an indigenous Alaskan girl who was
murdered at the age of 10. He remarked that it was likely
possible to fill the calendar with the names of murdered
and missing indigenous girls and women. He underscored that
it was an epidemic occurring daily. He asked the committee
to not cut $4 million from CDVSA. He knew many victims of
domestic violence and sexual assault who had yet to receive
the full healing support of the community and state. He
stressed that the rates of the crimes made the resources
critical. He implored the committee to maintain the full
funding for CDVSA to ensure support programs for victims
and survivors were available.
3:33:10 PM
MARGE STONEKING, AARP ALASKA, ANCHORAGE (via
teleconference), stated that Alaska had the fastest growing
senior population per capita in the country, yet the
governor's budget reflected a $2.7 million cut to senior
community based grants. She stressed community based grants
from the Division of Senior and Disability Services were
the least costly and most effective in helping the nearly
20,000 older Alaskans living independently. A cut of $2.7
million would result in reduced services including critical
meals and transportation, increased waitlists, and
potential program closures in some communities. She
explained it could unnecessarily drive seniors into more
costly facility-based care and Medicaid payments. She urged
the committee to restore the $2.7 million to provide flat
funding from FY 24 to FY 25.
3:35:05 PM
RENEE SCHOFIELD, CHAIR, ADVISORY BOARD OF ALCOHOLISM AND
DRUG ABUSE, KETCHIKAN (via teleconference), spoke in
support of $1.3 million in human services matching grants.
The critical services acted as a cornerstone and
demonstrated a state commitment in sustaining functional
social safety nets that contribute to the wellbeing and
stability in communities and for vulnerable individuals.
She supported $861,000 in community initiative matching
grants to ensure access to basic necessities and protection
from abuse or exploitation. She relayed that the $1 million
increment for the Division of Behavioral Health Crisis Now
grants had been removed from the budget. She asked the
committee to restore the increment. She requested the
reinstatement of $250,000 for the Division of Public Health
crisis services grants to help run mobile behavioral health
response teams. She supported $2.8 million for the Homeless
Assistance Program. Additionally, she supported $75,000 for
the comprehensive program planning coordinator. She thanked
the committee for its work.
Co-Chair Johnson appreciated the testimony. She provided
the email address for written testimony. The committee
would continue to hear public testimony in subsequent
meetings.
HB 268 was HEARD and HELD in committee for further
consideration.
HB 270 was HEARD and HELD in committee for further
consideration.
Co-Chair Johnson reviewed the schedule for the following
meeting.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 268 CS FIN WorkDRaft v.U 031224.pdf |
HFIN 3/12/2024 1:30:00 PM |
HB 268 |
| HB 270 CS FIN WorkDraft v. S 031224.pdf |
HFIN 3/12/2024 1:30:00 PM |
HB 270 |
| 1 - HCS1 - Agency Summary 1 - UGF 031224.pdf |
HFIN 3/12/2024 1:30:00 PM |
HB 268 |
| 3 - HCS1 - Transaction Compare 1 - GovAmd to HCS1 031224.pdf |
HFIN 3/12/2024 1:30:00 PM |
HB 268 |
| 2 - HCS1 - Agency Summary 2 - All Funds 031224.pdf |
HFIN 3/12/2024 1:30:00 PM |
HB 268 |
| 4 - HCS1 - Transaction Compare 2 - GovSup12.15 to HCS1Sup 031224.pdf |
HFIN 3/12/2024 1:30:00 PM |
HB 268 |
| 5 - HCS1 - Transaction Compare 3 - GovAmd to HCS1 - MH Only 031224.pdf |
HFIN 3/12/2024 1:30:00 PM |
HB 270 |