Legislature(2017 - 2018)ADAMS ROOM 519

03/16/2018 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 346 DENTIST: TEMPORARY PERMIT TELECONFERENCED
Moved CSHB 346(L&C) Out of Committee
-- Public Testimony --
+ HB 217 RAW MILK SALES; FOOD EXEMPT FROM REGS TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+= HB 216 TRANSFERS FROM DIVIDEND FUND; CRIMES TELECONFERENCED
<Bill Hearing Canceled>
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 285 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved CSHB 285(FIN) Out of Committee
+= HB 286 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved CSHB 286(FIN) Out of Committee
+= HB 255 PLUMBING/ELECTRIC CERTIFICATE OF FITNESS TELECONFERENCED
Heard & Held
HOUSE BILL NO. 285                                                                                                            
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 286                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     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."                                                                                                        
                                                                                                                                
1:35:04 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton relayed  the  committee  had finished  with                                                                    
amendments to the  bills the previous day.  He reported that                                                                    
the  Legislative  Finance  Division  (LFD)  and  Legislative                                                                    
Legal Services  had developed two new  committee substitutes                                                                    
(CS) based  on adopted  amendments. He  noted that  an error                                                                    
had been discovered during review  and had been corrected in                                                                    
the new CS  for the operating budget (HB 286).  He read from                                                                    
an explanation:                                                                                                                 
                                                                                                                                
     A  subsection reference  was  inadvertently omitted  in                                                                    
     the  Permanent Fund  inflation proofing  amendment that                                                                    
     was H  SAP 24. The  beginning of the amendment  on line                                                                    
     23 read  'the amount  calculated under  AS 37.13.145(c)                                                                    
     after the  appropriations made in (c)  of this section,                                                                    
     estimated  to be  $942 million.'  It  should have  read                                                                    
     'the amount calculated under  AS 37.13.145(c) after the                                                                    
     appropriations  made in  (c) and  (d) of  this section,                                                                    
     estimated to  be $942 million.'  Subsection (c)  is the                                                                    
     earnings reserve  account draw to the  General Fund and                                                                    
     subsection (d)  is the ERA  draw to the  Permanent Fund                                                                    
     Dividend   (PFD).   Legal    Services   corrected   the                                                                    
     subsection  8(e)  phrase  so   that  it  now  reads  as                                                                    
     intended 'after the appropriations  made in (c) and (d)                                                                    
     of this section.'                                                                                                          
                                                                                                                                
     There were three Legislative  Finance Reports. They are                                                                    
     stapled  together  in  members'  packets  and  will  be                                                                    
     posted on the Legislative  Finance website once the new                                                                    
     committee  substitutes  are  adopted.  In  addition  to                                                                    
     these  reports,  Legislative  Finance  will  also  post                                                                    
     their usual array of department reports.                                                                                   
                                                                                                                                
     The  budget's general  funds totals  $5.35 billion  and                                                                    
     all  funds  total  $10.44   billion.  You'll  note  the                                                                    
     general  fund  report  shows  and  increase  of  $170.8                                                                    
     million  from  the FY  18  management  plan budget  for                                                                    
     agency   and    statewide   operations.    The   larger                                                                    
     unrestricted  general fund  changes that  the committee                                                                    
     made  include  the  addition of  $19  million  for  the                                                                    
     University  of Alaska;  the temporary  addition of  $18                                                                    
     million for K-12  to replace the $18  million of Public                                                                    
     School Trust  Funds until  legislation is  adopted; the                                                                    
     temporary  deletion  of  $20 million  from  the  senior                                                                    
     benefits  payment  program, until  the  reauthorization                                                                    
     legislation  is  adopted  (we also  adopted  intent  to                                                                    
     fully fund  the program),  the addition of  $49 million                                                                    
     to capitalize the  Oil and Gas Tax Credit  Fund and the                                                                    
     deletion of the $27 million  for the governor's oil and                                                                    
     gas  tax  credit  financing  legislation,  as  the  $27                                                                    
     million  should  come forward  as  a  fiscal note;  the                                                                    
     addition $1 million for four  attorneys and one support                                                                    
     staff in  the Public Defender Agency;  and the addition                                                                    
     of  nearly $500,000  for four  additional guardians  ad                                                                    
     litem to represent children including  Child in Need of                                                                    
     Aid cases.                                                                                                                 
                                                                                                                                
     HB 286  includes a  4.75 percent  of market  value draw                                                                    
     from the  Permanent Fund  Earnings Reserve  Account; 67                                                                    
     percent  of   the  draw  or  $1.65   billion  would  be                                                                    
     deposited into the  General Fund and 33  percent of the                                                                    
     draw  or  $813  million  would be  deposited  into  the                                                                    
     dividend  fund,  resulting  in   an  estimated  PFD  of                                                                    
     $1,258.  We  added  the estimate  of  $942  million  to                                                                    
     inflation  proof the  Permanent Fund  in FY  19 and  we                                                                    
     added  $1  billion  of  expenditure  authority  to  the                                                                    
     Alaska Gasline Development Corporation  in FY 18 and FY                                                                    
     19  to   help  advance  the  development   of  the  gas                                                                    
     pipeline.  We  added  one-time  fund  balances  to  the                                                                    
     disaster relief  fund, so the state  is better prepared                                                                    
     to respond to disasters.                                                                                                   
                                                                                                                                
1:39:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton continued to read from a statement:                                                                             
                                                                                                                                
     This budget  fully funds the community  assistance fund                                                                    
     so that  the communities can  plan for the  $30 million                                                                    
     distribution in FY 20. We  added one-time funds to both                                                                    
     the  Department  of  Health  and  Social  Services  and                                                                    
     Department of Fish and Game  to be able to receive more                                                                    
     of the federal funds that  the state had previously had                                                                    
     to revert to  the federal government or  simply had not                                                                    
     been able to claim due to  a lack in matching funds. In                                                                    
     this  budget  the  Constitutional Budget  Reserve  fund                                                                    
     would  contribute  $1  billion to  filling  the  budget                                                                    
     deficit   plus  $100   million  for   possible  FY   19                                                                    
     supplementals. Those are some  of the larger amendments                                                                    
     we've adopted.                                                                                                             
                                                                                                                                
1:39:59 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster MOVED to ADOPT the proposed committee                                                                           
substitute for HB 286, Work Draft 30-GH2564\R (Wallace,                                                                         
3/16/18).                                                                                                                       
                                                                                                                                
Representative Wilson  OBJECTED. She did not  support a $170                                                                    
million increase at  a time when the state did  not have the                                                                    
money.                                                                                                                          
                                                                                                                                
Co-Chair Seaton pointed  out that $100 million  of the total                                                                    
was  for Medicaid,  $19 million  was for  the University  of                                                                    
Alaska, and $43 million was for transportation.                                                                                 
                                                                                                                                
1:41:13 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Gara supported  the budget.  He stated  that for                                                                    
the past  five years  the legislature  had been  cutting the                                                                    
budget repeatedly. He cautioned that  the next round of cuts                                                                    
would mean  larger class  sizes. He  spoke about  the safety                                                                    
net that provided  stability for people and  enabled them to                                                                    
work. He  stressed that the unrestricted  general fund (UGF)                                                                    
budget was currently $560 million  lower than 2015. Cuts had                                                                    
resulted  in the  loss of  over 1,000  teachers and  support                                                                    
staff since 2013. He did not  believe it was something to be                                                                    
proud  of. In  prior years  there had  been a  fight against                                                                    
individuals who wanted to cut  education further. He pointed                                                                    
to a  proposal the  preceding year to  cut education  by $70                                                                    
million more. He was glad the  cut had been staved off. Even                                                                    
a flat-funded  education budget would  likely mean  the loss                                                                    
of another 200 teachers and support staff.                                                                                      
                                                                                                                                
Vice-Chair  Gara underscored  the current  budget was  not a                                                                    
luxury budget. Cutting over $500  million since 2015 had not                                                                    
been without  impacts. In the  current budget cycle,  he had                                                                    
been alarmed to learn that  there was still a revolving door                                                                    
at the Alaska Psychiatric  Institute (API). He detailed that                                                                    
patients returned  to API because  there were not  follow up                                                                    
services  to help  the individuals  stand on  their own.  He                                                                    
reported that 30  percent of the people  discharged from API                                                                    
were back within six months.                                                                                                    
                                                                                                                                
Vice-Chair Gara  discussed Medicaid  and explained  that the                                                                    
way federal and state law  was written, the lower a person's                                                                    
income, the more  likely they were to  qualify for Medicaid.                                                                    
He continued  that all  the state had  done on  Medicaid was                                                                    
find  efficiencies and  cut costs  paid  to providers.  With                                                                    
33,000  more people  on Medicaid  since  2015, the  Medicaid                                                                    
budget  was lower  than  it had  been in  2015.  He did  not                                                                    
believe the legislature  had come together in a  way to deal                                                                    
with the  current recession. As  long as the  state remained                                                                    
in  recession, the  Medicaid budget  would increase  because                                                                    
every time someone lost their  job or had lower income, they                                                                    
were  more likely  to qualify  for Medicaid.  He underscored                                                                    
that the  state could not deny  individuals medical coverage                                                                    
when   statute  specified   individuals  were   entitled  to                                                                    
Medicaid coverage  at low  incomes. He  noted that  the vast                                                                    
majority of Medicaid recipients  were seniors, children, and                                                                    
people with  disabilities. He did not  support cutting their                                                                    
services. The remaining majority  of Medicaid recipients had                                                                    
lower income  given the recession.  The state had  not added                                                                    
Medicaid services. He  stated it was a tough  budget to deal                                                                    
with, but it  was not a luxury when  200 additional teachers                                                                    
would be  lost in the  coming year and  API was acting  as a                                                                    
revolving door.                                                                                                                 
                                                                                                                                
1:45:35 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt  opposed  the budget.  He  emphasized                                                                    
that the  issue facing the  committee was about  whether the                                                                    
legislature was  willing to  manage what  it was  facing. He                                                                    
stated  that Republican  Minority amendments  that had  been                                                                    
offered in committee  had not made drastic  cuts. He pointed                                                                    
out that they  had not touched the education  budget and had                                                                    
agreed  with other  members about  the  amount. He  recalled                                                                    
that in 2017 he and  his colleagues had been denied proposed                                                                    
cuts they  had based off  of previous years. In  the current                                                                    
process they  had looked at  years like FY 17  for reference                                                                    
but had not  proposed reducing the budget to  that level. He                                                                    
reported   that  their   amendments   had  proposed   slight                                                                    
reductions, but they had all been denied.                                                                                       
                                                                                                                                
Representative    Pruitt    stated   that    whatever    the                                                                    
administration  said  had  been  treated  like  gospel.  Yet                                                                    
research by  their competent  staff had  initiated realistic                                                                    
discussions on how  to manage the situation.  He believed if                                                                    
the public was  asked to participate via a  PFD reduction or                                                                    
tax, it  would be necessary  to prove the  legislature would                                                                    
analyze every  line of  the budget. He  did not  believe the                                                                    
committee  had  done  that. He  thought  the  committee  had                                                                    
merely  "said no  to say  no." He  detailed that  during the                                                                    
process the  committee had  heard from people  on why  a cut                                                                    
should  not  be   made.  He  opined  that   many  times  the                                                                    
individuals had  not been able  to give  justifiable reasons                                                                    
the cuts should  not be made. He stated  that amendments had                                                                    
been turned down anyway.                                                                                                        
                                                                                                                                
Representative   Pruitt   stated   it   was   necessary   to                                                                    
continually  analyze how  things were  delivered across  the                                                                    
scope  of government  agencies in  order  to prevent  larger                                                                    
class sizes and reductions to  Medicaid and other things. He                                                                    
did not believe it was  tenable to turn down everything that                                                                    
was  offered.  He  thought the  legislature  should  have  a                                                                    
dynamic process that could be  adjusted based on what it was                                                                    
facing.  He  stressed  it was  the  difference  between  the                                                                    
government and the private sector.  He stated that something                                                                    
would collapse and cease to  exist if it was not innovative.                                                                    
He shared that he had  previously worked for two Fortune 500                                                                    
companies - one was innovative  and continued to grow, while                                                                    
the other was  not innovative and was  faltering. He thought                                                                    
the legislature was acting like  it should not be innovative                                                                    
when  it failed  to  consider making  spending changes.  His                                                                    
concern  with the  budget was  that the  committee had  just                                                                    
decided  it  was  done   with  cuts,  despite  strategically                                                                    
crafted amendments that had been  done with a scalpel, which                                                                    
had all been turned down.                                                                                                       
                                                                                                                                
Representative Pruitt did not  believe the legislature would                                                                    
gain the public's  trust if it could not  prove the public's                                                                    
contribution would  be spent appropriately. He  believed the                                                                    
committee needed to  consider whether it wanted  to tell the                                                                    
public it was  satisfied with the current  budget. He opined                                                                    
the public  would vocalize that  it still did not  trust the                                                                    
legislature.  He thought  they should  take time  to rethink                                                                    
some of the things that had been offered.                                                                                       
                                                                                                                                
1:50:44 PM                                                                                                                    
                                                                                                                                
Representative  Tilton expressed  opposition to  the budget.                                                                    
She  echoed comments  of her  colleagues.  She stressed  the                                                                    
budget had increased by $170  million. She pointed out there                                                                    
was  a  travel  freeze,  but  the  committee  had  increased                                                                    
travel. Additionally,  there was  a hiring freeze,  but PCNs                                                                    
[position   control   numbers]   and  employees   had   been                                                                    
increased.  She stated  the budget  had  not been  increased                                                                    
higher than  $170 million because  the legislature  had used                                                                    
some money from  other funds. She characterized  the move as                                                                    
creative and clarified that it  was not always bad but would                                                                    
leave some  holes in  the next budget  cycle. She  stated it                                                                    
was  one of  the reasons  for the  current situation  - some                                                                    
holes  had  been  left  from  the  last  budget  cycle.  She                                                                    
stressed that her  constituents did not want  an increase in                                                                    
government spending.  She was opposed to  the current budget                                                                    
because it gave more money to government.                                                                                       
                                                                                                                                
1:52:07 PM                                                                                                                    
                                                                                                                                
Representative Guttenberg  spoke in  support of  the budget.                                                                    
He   believed  the   amendment   process  demonstrated   how                                                                    
difficult  it  was  to  strategically  strike  and  cut  the                                                                    
budget. He  stated there  had been  proposed cuts  that were                                                                    
below the  typical level.  He reasoned that  if some  of the                                                                    
cuts   had  been   accepted  they   would  hinder   economic                                                                    
development  through  the  Department of  Natural  Resources                                                                    
related to permitting and public  information on the state's                                                                    
resources.  He   believed  the  committee   had  illustrated                                                                    
significant restraint.  He stressed that the  money going to                                                                    
the   University  associated   with   Arctic  research   was                                                                    
important  in   terms  of   Alaska's  global   position.  He                                                                    
mentioned  a recently  published Alaska  Gasline Development                                                                    
Corporation (AGDC) report showing  the perspective on Alaska                                                                    
was closer  to 80 percent  of the industrial world  than any                                                                    
other  location.  He  believed  the  distance  would  close;                                                                    
Alaska  was  centrally  located,  and it  was  important  to                                                                    
ensure the  state was prepared.  He remarked that  the state                                                                    
had  not  gone far  enough  "in  those economic  development                                                                    
things," but he  did not believe it was  currently poised to                                                                    
get there.                                                                                                                      
                                                                                                                                
Representative Guttenberg  continued that if the  budget had                                                                    
not  addressed issues  pertaining to  public defenders,  the                                                                    
state's  criminal   justice  and  courts  would   have  been                                                                    
incapacitated  because a  balance  was needed.  When he  had                                                                    
considered  the overall  budget  cuts and  actions that  had                                                                    
been taken he  recognized how difficult it had  been to make                                                                    
the cuts.  Many of the  people the committee had  heard from                                                                    
who  had discussed  the  size of  government  and what  they                                                                    
wanted to do, clearly  illustrated the services were needed.                                                                    
He  noted   that  some  people  merely   say  government  is                                                                    
government,  but  he   countered  that  government  provided                                                                    
services  to  the  people  of  Alaska  including  education,                                                                    
criminal  justice, and  Medicaid coverage.  There were  many                                                                    
things the state  needed to be doing that it  was not doing,                                                                    
but he  acknowledged the fiscal  crisis and reasoned  it was                                                                    
not possible to do everything that was needed.                                                                                  
                                                                                                                                
Representative  Guttenberg looked  forward  to  the day  the                                                                    
state could  dig itself out  of its deficit and  he reasoned                                                                    
the problem would  be solved by filling the hole  in, not by                                                                    
digging deeper.  He spoke  about roads  that were  not being                                                                    
plowed  on time  - the  priority of  roads was  slow in  the                                                                    
Interior. He  noted the  region had  experienced one  of its                                                                    
snowiest  winters  during  the current  year.  While  people                                                                    
wanted  to   see  government  cut,  they   also  wanted  the                                                                    
services.   He  detailed   that  individuals   wanted  their                                                                    
children in  school, a college education,  plowed roads, and                                                                    
industrial  services  (i.e.  permits  granted  for  resource                                                                    
development,   projects,  and   jobs).   He  reported   that                                                                    
residents on  the North Slope  were losing jobs  faster than                                                                    
nonresidents. The  budget was tight and  would likely remain                                                                    
tight  for some  time.  He  thought the  state  had done  an                                                                    
economic  job  of  suppressing   budget  growth  because  it                                                                    
happened whether the legislature did anything or not.                                                                           
                                                                                                                                
1:56:19 PM                                                                                                                    
                                                                                                                                
Co-Chair  Seaton responded  to some  of the  points made  by                                                                    
Minority  members. He  referenced  the  general funds  chart                                                                    
[provided  by   the  Legislative  Finance   Division  titled                                                                    
"Multi-year  Agency Summary  -  Operating Budget  - FY  2019                                                                    
House  Structure"  dated  March  16, 2018  (copy  on  file)]                                                                    
showing  all UGF  and designated  general  funds (DGF).  The                                                                    
right  column, compared  to  the  governor's budget,  showed                                                                    
five  line items  with reductions  and six  line items  with                                                                    
increases.  The chart  identified all  of the  agencies that                                                                    
received either  reductions or increases. The  second column                                                                    
showed $21  million in the Department  of Corrections (DOC).                                                                    
He  explained there  had  been  a $21  million  hole in  the                                                                    
budget  because it  had been  left for  a supplemental.  The                                                                    
current budget  filled the hole, which  should eliminate the                                                                    
supplemental the following year.  He explained that they had                                                                    
tried to use the process  throughout the entire budget. They                                                                    
had  capitalized   funds  for   disaster  relief   and  fire                                                                    
suppression to  avoid supplementals  in the coming  year. He                                                                    
acknowledged  the items  made the  budget look  heavier, but                                                                    
the approach was more honest.                                                                                                   
                                                                                                                                
Co-Chair Seaton pointed to the  far right column showing all                                                                    
general funds, which  included $18 million for  K-12 and $19                                                                    
million for  the University. He explained  the importance of                                                                    
the  numbers  that compared  the  FY  19 governor's  amended                                                                    
budget  to  the House  Finance  Committee  final budget.  He                                                                    
acknowledged the hard work put  in by finance subcommittees.                                                                    
He noted  that there had  been almost as many  reductions to                                                                    
agencies as there had been  additions. He hoped to ensure as                                                                    
much transparency  as possible in the  budgeting process. He                                                                    
appreciated all  of the  comments made  by the  Minority and                                                                    
Majority during the process. He  hoped there would be better                                                                    
ways to  get down to  appropriation and allocation  lines in                                                                    
the  future,   which  would  result  in   a  more  strategic                                                                    
conversation.  He thanked  all committee  members for  their                                                                    
participation in the process.                                                                                                   
                                                                                                                                
1:59:42 PM                                                                                                                    
                                                                                                                                
Representative Wilson pointed  to page 2, line 1  of the LFD                                                                    
multi-year  agency  summary.  She  referenced  the  negative                                                                    
$5.913 million associated with the  Permanent Fund under the                                                                    
FY  19  governor  amended  column. She  asked  if  the  POMV                                                                    
[percent of market  value] and the 33 percent  [for the PFD]                                                                    
meant there  would be  $5.913 million  less to  be allocated                                                                    
toward the PFD.  She was trying to understand  where the 0.7                                                                    
percent decrease  [shown in  the last  column on  the right]                                                                    
came from.                                                                                                                      
                                                                                                                                
2:00:25 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:01:17 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Seaton pointed  to the  FY  19 governor's  amended                                                                    
budget under the  third column on page  2 showing $818,876.5                                                                    
million. He explained the figure  had been based on a higher                                                                    
number  of participants  in  the PFD,  even  though the  PFD                                                                    
calculation  was  lower.  The legislature  had  received  an                                                                    
updated number of estimated participants.  He pointed to the                                                                    
fourth column  showing $812,963.0  million that  reflected a                                                                    
slightly higher dividend and a  lower number of participants                                                                    
due to some outmigration.                                                                                                       
                                                                                                                                
Representative Wilson  thought that because the  POMV was in                                                                    
the budget,  66 percent  would go to  the government  and 33                                                                    
percent went  to the people.  She did not believe  the money                                                                    
shown  in the  chart should  change based  on the  number of                                                                    
participants. She detailed the amount  was set and no longer                                                                    
used a formula like in the  past. She did not understand how                                                                    
participants  had anything  to do  with it.  She thought  it                                                                    
appeared they were lowering the  individual share, which she                                                                    
did  not believe  made sense  because the  amount should  be                                                                    
set.                                                                                                                            
                                                                                                                                
2:03:15 PM                                                                                                                    
                                                                                                                                
Representative  Pruitt  explained   that  the  governor  had                                                                    
included 5 percent  with the 30 percent. One  of the changes                                                                    
made by the co-chair was a  4.75 percent [POMV draw] with 33                                                                    
percent directed  to the  PFD. While  there was  less money,                                                                    
the  figure reflecting  fewer people  resulted  in a  higher                                                                    
PFD, but it  was the reason for the reduction  of $6 million                                                                    
(it was  the change in the  structure for the POMV  draw and                                                                    
where it went).                                                                                                                 
                                                                                                                                
Co-Chair Seaton  agreed that the governor's  proposed budget                                                                    
included a 5  percent POMV, and the  House Finance Committee                                                                    
CS included  a 4.75 percent  draw. The change  accounted for                                                                    
the difference in the gross amount of money.                                                                                    
                                                                                                                                
Representative Wilson asked  for verification the difference                                                                    
[in the  third and fourth column  on page 2] was  related to                                                                    
the draw percentage, not to the participants.                                                                                   
                                                                                                                                
Co-Chair Seaton agreed.                                                                                                         
                                                                                                                                
Vice-Chair Gara remarked that there  was no agreement in the                                                                    
legislature  on  what  the dividend  amount  should  be.  He                                                                    
recalled   the  current   Republican  Minority   leader  had                                                                    
proposed $1,000  dividends two years  back. There  were also                                                                    
others in  both parties  who were on  the opposite  end. The                                                                    
House Finance  Committee had determined the  $1,000 dividend                                                                    
was too small.  He elaborated that the  committee had worked                                                                    
for  a $1,200  dividend  in  2017, but  the  Senate had  not                                                                    
agreed  and a  dividend of  $1,100 had  been decided  on. He                                                                    
highlighted that  the current budget included  a $1,250 PFD.                                                                    
He reiterated there was  huge disagreement among legislators                                                                    
within their own parties on what the amount should be.                                                                          
                                                                                                                                
Co-Chair Seaton pointed out that  the current discussion had                                                                    
been  about the  gross  amount taken  for  the dividend.  He                                                                    
corrected   his  earlier   statements   pertaining  to   the                                                                    
difference between the two columns  [columns 3 and 4 on page                                                                    
2 of the  LFD multi-year agency summary].  He explained that                                                                    
Representative  Pruitt was  correct  the difference  between                                                                    
the two  columns was  a 5  percent draw  and a  4.75 percent                                                                    
draw.  He detailed  that a  5 percent  POMV draw  would take                                                                    
more  out of  the Permanent  Fund than  a 4.75  percent POMV                                                                    
draw.                                                                                                                           
                                                                                                                                
Representative Wilson clarified the  money would come out of                                                                    
the  Permanent  Fund  Earnings Reserve  Account  (ERA);  the                                                                    
legislature could  not draw from the  Permanent Fund corpus.                                                                    
She  believed they  needed to  be careful  with terminology.                                                                    
She underscored  that the proposed budget  did not guarantee                                                                    
$1,250  PFDs.  She  detailed the  budget  included  a  66/33                                                                    
percent  cut [directed  to government  spending and  the PFD                                                                    
respectively] of the 4.75 percent  [POMV draw from the ERA].                                                                    
The  number  of  individuals  eligible  for  the  PFD  would                                                                    
determine  the dividend  amount  (the  calculation would  be                                                                    
whatever  the 33  percent  came  out to  be  divided by  the                                                                    
number  of eligible  recipients).  She  emphasized that  the                                                                    
proposed budget may  result in PFDs of $1,250,  but they may                                                                    
be a little  more or less. She did not  think it was prudent                                                                    
to discuss  what the other body  would or would not  do. She                                                                    
wanted to keep the conversation to the details of the bill.                                                                     
                                                                                                                                
2:07:37 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton  corrected that the  POMV was  calculated on                                                                    
the average  value of the  five years preceding  the current                                                                    
year, which was on the  total average value of the Permanent                                                                    
Fund.  The draw  would come  from the  ERA, but  the average                                                                    
value calculation included the ERA and the corpus.                                                                              
                                                                                                                                
Representative  Wilson  wanted  to ensure  the  public  knew                                                                    
something "was still sacred in this world."                                                                                     
                                                                                                                                
Co-Chair Seaton agreed.                                                                                                         
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll  call vote was  taken on the  motion to adopt  the CS                                                                    
for HB 286.                                                                                                                     
                                                                                                                                
IN FAVOR: Gara, Grenn, Guttenberg,  Kawasaki, Ortiz, Foster,                                                                    
Seaton                                                                                                                          
OPPOSED: Wilson, Tilton, Pruitt                                                                                                 
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION  PASSED (7/3). There being  NO further OBJECTION,                                                                    
Work Draft 30-GH2564\R for HB 286 was ADOPTED.                                                                                  
                                                                                                                                
Co-Chair  Foster  MOVED  to  ADOPT  the  proposed  committee                                                                    
substitute  for HB  285,  Work  Draft 30-GH2566\U  (Wallace,                                                                    
3/16/18).                                                                                                                       
                                                                                                                                
Representative Wilson OBJECTED  for discussion. She believed                                                                    
the  committee  needed  to  mature.   She  did  not  support                                                                    
removing a project so the  other body could remove a project                                                                    
in  order to  take  the bill  to  conference committee.  She                                                                    
believed  the  legislature  had better  things  to  do.  She                                                                    
elaborated  that the  Alaska Mental  Health Trust  Authority                                                                    
(AMHTA) went  through its budget very  closely and decisions                                                                    
were made  by the board. She  thought it was time  to change                                                                    
the practice of continuing something  because it was the way                                                                    
it had always been done. She WITHDREW her OBJECTION.                                                                            
                                                                                                                                
There  being NO  further OBJECTION,  Work Draft  30-GH2566\U                                                                    
for HB 285 was ADOPTED.                                                                                                         
                                                                                                                                
2:10:13 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster  MOVED  to  REPORT  CSHB  286(FIN)  out  of                                                                    
committee with individual recommendations.                                                                                      
                                                                                                                                
Representative Wilson OBJECTED.                                                                                                 
                                                                                                                                
2:10:33 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:10:51 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Grenn, Guttenberg, Kawasaki,  Ortiz, Gara, Seaton,                                                                    
Foster                                                                                                                          
OPPOSED: Pruitt, Tilton, Wilson                                                                                                 
                                                                                                                                
Representative Thompson was absent from the vote.                                                                               
                                                                                                                                
The MOTION PASSED (7/3).                                                                                                        
                                                                                                                                
There  being   NO  further  OBJECTION,  CSHB   286(FIN)  was                                                                    
REPORTED   out   of   committee    with   four   "do   pass"                                                                    
recommendations,  one  "no  recommendation"  recommendation,                                                                    
and five "amend" recommendations.                                                                                               
                                                                                                                                
2:11:52 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:14:34 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Foster  MOVED  to  REPORT  CSHB  285(FIN)  out  of                                                                    
committee with individual recommendations.                                                                                      
                                                                                                                                
There being NO OBJECTION, CSHB  285(FIN) was REPORTED out of                                                                    
committee  with  four  "do pass"  recommendations,  one  "no                                                                    
recommendation"    recommendation,    and    five    "amend"                                                                    
recommendations.                                                                                                                
                                                                                                                                
2:15:11 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:16:32 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Seaton thanked members and  staff for their work on                                                                    
the  budget.  Additionally,  he  thanked  Legislative  Legal                                                                    
Service, LFD, and his staff.                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects
HB 216 CS WORKDRAFT vL.pdf HFIN 3/16/2018 1:30:00 PM
HB 216
HB216 Support Letter from ANDVSA 3.6.2018.pdf HFIN 3/16/2018 1:30:00 PM
HB 216
HB216 Support Document Resolution from the Anchorage Assembly AR 2017-255 3.6.2018.pdf HFIN 3/16/2018 1:30:00 PM
HB 216
HB346 Explanation of Changes ver A to ver D 2.23.18.pdf HFIN 3/16/2018 1:30:00 PM
HB 346
HB346 Letters of Support 2.17.18.pdf HFIN 3/16/2018 1:30:00 PM
HB 346
HB346 Sponsor Statement.pdf HFIN 3/16/2018 1:30:00 PM
HB 346
HB346 Supporting Document - Dentist specialty numbers.pdf HFIN 3/16/2018 1:30:00 PM
HB 346
HB 217 CS RES Alaska Food Freedom Sponsor Statement 2-16-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB 217 CS RES Supporting Document - Food Hub.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB 217 CS RES Supporting Document - Wagner 2.9.18.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB 217 CS Ver J Supporting Document Farm Bureau Support 2.8.18.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB 217 Version O RES Sectional Analysis 2.20.18.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB217 CS RES Supporting Document - Tanana Valley Farmers Market 2.8.18.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB217 CS RES Supporting Document-Alaska Chamber.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB 217 DEC letter with enclosures 03.09.2018.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB 217 Alaska Food Freedom 1-31-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 217
HB 285 CS v U 3-15-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 285
HB 286 HB 285 vR HCS2 All Funds-Multi Year Agency Summary 3-16-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 285
HB 286
HB 286 HB 285 vR HCS2 GF Only-Multi Year Agency Summary 3-16-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 285
HB 286
HB 286 HB 285 vR HCS2 UGF Only-Multi Year Agency Summary 3-16-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 285
HB 286
HB 286 HB 285 vR LEGAL language comparison document 30-GH2564_O and 30-GH2564_R.pdf HFIN 3/16/2018 1:30:00 PM
HB 285
HB 286
HB 286 CS vR 3-16-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 286
HB 285 CS v U 3-15-18.pdf HFIN 3/16/2018 1:30:00 PM
HB 285
HB 255 Letters of Opposition.pdf HFIN 3/16/2018 1:30:00 PM
HB 255
HB 255 APAoppositionCSHB 255.pdf HFIN 3/16/2018 1:30:00 PM
HB 255