Legislature(2017 - 2018)SENATE FINANCE 532

05/07/2018 02:00 PM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Meeting Postponed to 3:00 p.m. --
+= SB 142 APPROP: CAPITAL BUDGET TELECONFERENCED
Moved CSSB 142(FIN) Out of Committee
Bills Previously Heard/Scheduled
+= HB 212 REAA & SMALL MUNI SCHOOL DISTRICT FUND TELECONFERENCED
Heard & Held
+= HB 233 EXTEND EDUCATION TAX CREDITS TELECONFERENCED
Moved SCS CSHB 233(FIN) Out of Committee
SENATE BILL NO. 142                                                                                                           
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations,       supplemental      appropriations,                                                                    
     reappropriations,  and   other  appropriations;  making                                                                    
     appropriations to  capitalize funds; and  providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
3:26:15 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon  reported the  bill  had  been heard  on                                                                    
April 26, 2018  when the public hearing had  been opened and                                                                    
closed.                                                                                                                         
                                                                                                                                
Vice-Chair Bishop  MOVED to  ADOPT the  committee substitute                                                                    
for SB 142, Work Draft 30-GS2565\R (Martin, 5/7/18).                                                                            
                                                                                                                                
Co-Chair MacKinnon OBJECTED for discussion.                                                                                     
                                                                                                                                
3:26:30 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:27:51 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
LAURA  CRAMER, STAFF,  SENATOR  ANNA MACKINNON,  highlighted                                                                    
the changes in  the CS. Page 3, line 18  included $2 million                                                                    
for  the  Alaska  Travel Industry  Association  for  tourism                                                                    
marketing  and development.  Page 4,  line 31  included $2.5                                                                    
million   for  the   Wrangell  junkyard   contaminated  site                                                                    
cleanup. Page 5,  line 19 included $300,000  for vessels and                                                                    
aircraft   maintenance,  repair,   and   upgrades  for   the                                                                    
Department of  Fish and Game (DFG).  She detailed originally                                                                    
the item had been in the  bill's language section and due to                                                                    
incorrect  information from  DFG the  lapsing funds  were no                                                                    
longer available; therefore, the item  had been moved to the                                                                    
numbers section  of the bill.  Page 7, line 33  through page                                                                    
8, line  4 included $750,000  for the Department  of Natural                                                                    
Resources for  legal and financial due  diligence associated                                                                    
with  the  AKLNG  project.  Page  8,  lines  29  through  31                                                                    
included $750,000  for the Department  of Revenue  for legal                                                                    
and  financial  due  diligence  associated  with  the  AKLNG                                                                    
project. Page  9, line  23 pertained  to the  Alaska Housing                                                                    
Finance  Corporation  (AHFC)   Weatherization  Program.  She                                                                    
elaborated the  previous bill  version had  erroneously left                                                                    
the  increment  out  of the  bill's  language  section;  the                                                                    
numbers had  been correct,  but the  increment had  not been                                                                    
listed in the bill.                                                                                                             
                                                                                                                                
Ms. Cramer continued  to outline the changes in  the CS. She                                                                    
moved  to  page 10,  line  18  that included  other  federal                                                                    
program  match  for  the Department  of  Transportation  and                                                                    
Public  Facilities (DOT).  The item  had been  added to  the                                                                    
numbers section  due to  a reduction  in lapsing  funds from                                                                    
AHFC in the Home Energy  Rebate Program. Originally the item                                                                    
had been located  in the language section -  a reduction had                                                                    
caused the change in the  numbers section of the current CS.                                                                    
Page 10, line  20 included an adjustment to  the federal aid                                                                    
highway state  match due to some  reappropriations that were                                                                    
no longer available.  Page 17, lines 10  through 13 included                                                                    
$75,000 for community and neighborhood  watch programs to be                                                                    
distributed as  grants through  the Department  of Commerce,                                                                    
Community and  Economic Development  (DCCED). Page  17, line                                                                    
14  included  $60,000  for  the   City  of  Nenana  for  the                                                                    
financial  review  and  analysis  of  its  city  financials.                                                                    
Currently  the city  was unable  to  receive some  community                                                                    
assistance  due  to some  issues  with  its financials;  the                                                                    
increment would enable  DCCED to work with  Nenana to ensure                                                                    
financials  were in  order prior  to distributing  community                                                                    
assistance funds.                                                                                                               
                                                                                                                                
Ms. Cramer  moved to the  next change  on page 17,  lines 20                                                                    
through  22 included  $250,000 for  a study  for the  Health                                                                    
Care Transformation  Project - the  next step in  the health                                                                    
care authority  feasibility study,  which would  bring along                                                                    
patients,  providers, and  policy makers.  Page 17,  line 25                                                                    
included $500,000 for the  Hillcrest subdivision clean water                                                                    
improvement  district   to  help  with   contaminated  water                                                                    
systems.  Page  17,  line  28 included  $2  million  to  the                                                                    
Anchorage Police Department  for crime prevention, response,                                                                    
and  equipment.   Page  18  included   $2  million   to  the                                                                    
Department of Public Safety  for crime prevention, response,                                                                    
and equipment.  Page 35 included  backstop language  for DOT                                                                    
reappropriations   for  federal   aid  highway   match.  The                                                                    
language had  been included in  the capital budget  the last                                                                    
year  as well.  The language  designated that  general funds                                                                    
would  be  used  to  match  federal  funds  if  any  project                                                                    
reappropriation balances fell short.                                                                                            
                                                                                                                                
3:33:12 PM                                                                                                                    
                                                                                                                                
Co-Chair  MacKinnon asked  for the  page number.  Ms. Cramer                                                                    
replied the  change appeared  on page  35, lines  10 through                                                                    
14.                                                                                                                             
                                                                                                                                
Ms.  Cramer continued  to  address changes  in  the CS.  She                                                                    
turned  to page  36, lines  3 through  19 that  included the                                                                    
reappropriation  of funds  that had  been reappropriated  in                                                                    
the  previous  year to  the  greater  Lynn Canal  area.  The                                                                    
balance  of $21.2  million was  reappropriated  back to  the                                                                    
Juneau Access project. The final  change was located on page                                                                    
37, line  3 through 9,  where the remaining balance  for the                                                                    
Friends of  the Jesse  Lee Home  to the  City of  Seward for                                                                    
site remediation.                                                                                                               
                                                                                                                                
Co-Chair MacKinnon  WITHDREW her  OBJECTION. There  being NO                                                                    
further OBJECTION, Work Draft 30-GS2565\R was ADOPTED.                                                                          
                                                                                                                                
3:34:42 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon  shared that it  was difficult to  be the                                                                    
committee  chair when  there was  no  money for  communities                                                                    
around  the  state.  She  had  tried  to  help  the  limited                                                                    
requests where  possible in  the CS.  She remarked  that the                                                                    
bill  contained  no  personal  discretionary  spending.  She                                                                    
reported the budget prioritized  public safety and health in                                                                    
some  communities. She  noted  that  the Wrangell  [junkyard                                                                    
contamination  cleanup] project  was  $5  million, not  $2.5                                                                    
million. She  explained that  if the  House added  the other                                                                    
$2.5 million, the project would  move forward. She continued                                                                    
that the budget was funded  with Alaska's savings account to                                                                    
provide for the  people of Alaska in broad  ways. The budget                                                                    
went  a long  way in  using the  limited funds  to create  a                                                                    
budget of  over $1 billion  in combination with  federal and                                                                    
other funds.  She would provide the  difference to committee                                                                    
members  and believed  it was  substantially lower  than the                                                                    
administration's request.  She reported there was  no joy in                                                                    
passing a budget that was  smaller than the administration's                                                                    
request,  but  it  reflected the  practical  fact  that  the                                                                    
legislature  was having  to draw  every dollar  from savings                                                                    
accounts;  there were  some things  absent  from the  budget                                                                    
that were important to many people.                                                                                             
                                                                                                                                
3:36:41 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop  thanked Co-Chair MacKinnon and  her staff                                                                    
for bringing the  CS forward. He believed  the committee had                                                                    
been responsive  to public  testimony; it  had done  what it                                                                    
could with the means available.                                                                                                 
                                                                                                                                
Senator Micciche  agreed with Vice-Chair  Bishop's comments.                                                                    
He thanked Co-Chair  MacKinnon and her staff  for their hard                                                                    
work.                                                                                                                           
                                                                                                                                
Co-Chair  MacKinnon  thanked  her   chief  of  staff,  Laura                                                                    
Cramer.  She  felt  that  Ms.   Cramer  had  succinctly  and                                                                    
accurately represented  the changes  requested in  the bill.                                                                    
She  acknowledged there  were many  things requested  by the                                                                    
committee  that   were  not  included   in  the   bill.  She                                                                    
reiterated   that  the   bill  did   not  contain   personal                                                                    
recommendations or  discretionary money. The  bill reflected                                                                    
a fairly  straight forward  and back  to the  basics budget.                                                                    
She thanked  Legislative Legal Services and  the Legislative                                                                    
Finance Division for their work.                                                                                                
                                                                                                                                
3:39:05 PM                                                                                                                    
                                                                                                                                
Vice-Chair Bishop remarked that it  was a $1 billion budget,                                                                    
but when accounting for the  multiplier effect that went out                                                                    
through the economy and construction  projects, it got to be                                                                    
a good-sized number.                                                                                                            
                                                                                                                                
Co-Chair  MacKinnon   reported  that  the   budget  invested                                                                    
$148,642,900  in projects  throughout  Alaska and  leveraged                                                                    
for a  total budget of  $1,461,960,200. The budget  was $265                                                                    
million less than the governor's request.                                                                                       
                                                                                                                                
Vice-Chair  Bishop  MOVED to  REPORT  CSSB  142(FIN) out  of                                                                    
committee  with individual  recommendations. There  being NO                                                                    
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSSB  142(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation.                                                                                                           
                                                                                                                                
3:40:28 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:42:24 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair MacKinnon reviewed the schedule for the following                                                                      
day.                                                                                                                            
                                                                                                                                

Document Name Date/Time Subjects
HB 212 SCS FIN work draft version M.pdf SFIN 5/7/2018 2:00:00 PM
HB 212
HB 212 SCS FIN v. M Explanation.pdf SFIN 5/7/2018 2:00:00 PM
HB 212