Legislature(2019 - 2020)SENATE FINANCE 532

03/04/2020 09:00 AM Senate FINANCE

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Audio Topic
09:01:47 AM Start
09:02:58 AM Legislative Finance Review of Governor's Amendments
10:17:52 AM HB234
10:53:16 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ Legislative Finance Review of Governor's TELECONFERENCED
Amendments
*+ HB 234 APPROP:SUPP; REAPPROP; CAP; AMEND; CBR TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR HOUSE BILL NO. 234(FIN)                                                                                                
                                                                                                                                
     "An    Act    making    supplemental    appropriations,                                                                    
     reappropriations,  and  other appropriations;  amending                                                                    
     appropriations;     capitalizing      funds;     making                                                                    
     appropriations under art.  IX, sec. 17(c), Constitution                                                                    
     of the State of  Alaska, from the constitutional budget                                                                    
    reserve fund; and providing for an effective date."                                                                         
                                                                                                                                
10:17:52 AM                                                                                                                   
                                                                                                                                
PETE  ECKLUND,   STAFF,  SENATOR   BERT  STEDMAN,   noted  a                                                                    
spreadsheet titled,  "Supplemental (HB234) as passed  by the                                                                    
House" (copy on file).                                                                                                          
                                                                                                                                
Co-Chair Stedman wanted  to address the larger  items on the                                                                    
spreadsheet.                                                                                                                    
                                                                                                                                
Mr. Ecklund noted that the UGF  total was a little over $298                                                                    
million for  the supplemental bill  for FY 20. He  noted the                                                                    
$12.8 million in DGF, $7.5  million in other funds, and $207                                                                    
in federal funds. The total was just over $526 million.                                                                         
                                                                                                                                
10:20:40 AM                                                                                                                   
                                                                                                                                
Co-Chair von  Imhof stressed that  the committee  had worked                                                                    
closely with  the administration in  the year prior  to seek                                                                    
reductions  in  Department  of Health  and  Social  Services                                                                    
(DHSS), and  remarked that there  was a  significant request                                                                    
in that  department. She explained  that it was  largely due                                                                    
to the difficulty in maintaining the reductions.                                                                                
                                                                                                                                
Co-Chair  Stedman  noted  that   there  was  a  supplemental                                                                    
request that  was originally vetoed in  the operating budget                                                                    
from the year prior.                                                                                                            
                                                                                                                                
                                                                                                                                
Co-Chair von Imhof agreed.                                                                                                      
                                                                                                                                
Co-Chair  Stedman recalled  that there  were assurances  the                                                                    
year prior  that there would  not be a  supplemental budget,                                                                    
but this was the largest  supplemental budget in the history                                                                    
of the state.                                                                                                                   
                                                                                                                                
Mr.  Ecklund remarked  that the  $120  million for  Medicaid                                                                    
services was  currently evaluated to determine  whether that                                                                    
was enough to cover the costs in the current year.                                                                              
                                                                                                                                
Co-Chair   Stedman  explained   that  there   could  be   an                                                                    
adjustment to that number.                                                                                                      
                                                                                                                                
Senator Hoffman wondered how the  $250 million in DEED would                                                                    
be addressed.                                                                                                                   
                                                                                                                                
Mr. Ecklund  explained that  there was  $150,000 of  UGF and                                                                    
$150,000  for  receipt  authority,   which  would  help  the                                                                    
facility to stay open in the spring.                                                                                            
                                                                                                                                
10:25:44 AM                                                                                                                   
                                                                                                                                
Senator Hoffman  heard that it  might be impossible  for the                                                                    
school to receive funds.                                                                                                        
                                                                                                                                
Co-Chair Stedman  explained that the  project was in  a list                                                                    
of bond packages in the state.                                                                                                  
                                                                                                                                
Mr. Ecklund discussed the Department  of Public Safety (DPS)                                                                    
requests.                                                                                                                       
                                                                                                                                
Co-Chair  Stedman wanted  to know  the exact  impact of  the                                                                    
strike.                                                                                                                         
                                                                                                                                
Mr. Ecklund agreed to provide that information.                                                                                 
                                                                                                                                
10:31:06 AM                                                                                                                   
                                                                                                                                
Mr. Ecklund looked at page 2 of the spreadsheet.                                                                                
                                                                                                                                
Co-Chair Stedman  stated that there was  work on discussions                                                                    
with the agency.                                                                                                                
                                                                                                                                
10:32:54 AM                                                                                                                   
                                                                                                                                
Senator Olson  did not see  any requests for  Village Public                                                                    
Safety Officers (VPSOs).                                                                                                        
                                                                                                                                
Mr. Ecklund agreed.                                                                                                             
                                                                                                                                
10:33:25 AM                                                                                                                   
                                                                                                                                
Senator Wielechowski  felt that  the biweekly  payroll would                                                                    
end up costing the state millions of dollars.                                                                                   
                                                                                                                                
Mr. Ecklund noted the largest impacts to the state.                                                                             
                                                                                                                                
Co-Chair Stedman  asked for description  of the  $24 million                                                                    
request.                                                                                                                        
                                                                                                                                
10:36:47 AM                                                                                                                   
                                                                                                                                
CAROLINE   SCHULTZ,  STAFF,   SENATOR  NATASHA   VON  IMHOF,                                                                    
explained that  there was a  late amendment for  Covid-19 of                                                                    
$4 million to the DHSS.                                                                                                         
                                                                                                                                
Co-Chair Stedman stated that there  would be a joint meeting                                                                    
with the House with Dr. Zink.  He stated that there would be                                                                    
ample resources to respond to the virus.                                                                                        
                                                                                                                                
Senator  Olson wondered  whether the  $4 million  included a                                                                    
quarantine facility.                                                                                                            
                                                                                                                                
Ms. Schultz  replied that  the money would  be used  to fund                                                                    
the new positions, and not for infrastructure.                                                                                  
                                                                                                                                
Senator Olson surmised that the  money would not be used for                                                                    
hospitals to prepare for a quarantine facility.                                                                                 
                                                                                                                                
Ms. Schultz agreed to provide further information.                                                                              
                                                                                                                                
Senator Wilson looked at the  first page of the spreadsheet.                                                                    
He  wanted  more information  about  the  Division of  Motor                                                                    
Vehicles  (DMV)  office  location   move  from  the  current                                                                    
location, and whether the building was owned by the state.                                                                      
                                                                                                                                
Ms. Schultz  replied that  the lease  costs to  the facility                                                                    
had increased,  so they were  moving to a building  that was                                                                    
owned by the university, resulting  in a cost savings to the                                                                    
state.                                                                                                                          
                                                                                                                                
10:40:14 AM                                                                                                                   
                                                                                                                                
Senator Bishop wondered what the "fleet" referred to.                                                                           
                                                                                                                                
Ms.  Shultz replied  that  DPS requested  money  for 32  new                                                                    
trooper cars.                                                                                                                   
                                                                                                                                
10:40:43 AM                                                                                                                   
                                                                                                                                
Co-Chair  Stedman  explained  that Senator  Bishop  was  the                                                                    
chair of the DPS subcommittee.                                                                                                  
                                                                                                                                
Mr. Ecklund clarified the money related to the strike.                                                                          
                                                                                                                                
Ms. Schultz stated that there  was some funding for Covid-19                                                                    
quarantine.                                                                                                                     
                                                                                                                                
10:41:46 AM                                                                                                                   
                                                                                                                                
Co-Chair Stedman OPENED public testimony.                                                                                       
                                                                                                                                
10:42:17 AM                                                                                                                   
                                                                                                                                
NILS  ANDREASSEN,   EXECUTIVE  DIRECTOR,   ALASKA  MUNICIPAL                                                                    
LEAGUE, JUNEAU, felt that  the supplemental budget presented                                                                    
some issues important to local  government. He supported the                                                                    
increases  to the  Alaska Marine  Highway System  (AMHS). He                                                                    
felt  that many  communities  relied on  those services.  He                                                                    
spoke   in  support   of  the   state's  response   to  fire                                                                    
suppression. He  spoke in support  of Alaska Land  Radio. He                                                                    
highlighted   the  lack   of   response  to   recapitalizing                                                                    
community  assistance   and  not   following  up   on  fully                                                                    
reimbursing municipalities  for school  bond debt.  He noted                                                                    
some unanticipated expenses  related to the repeal  of SB 91                                                                    
for community  and regional jails.  He explained  that those                                                                    
levels  were at  2002 funding  levels. He  expressed support                                                                    
for providing  reimbursement funding who have  charter boats                                                                    
to fill  the gap of  cancelled ferry service. He  noted that                                                                    
first responders  would feel the impact  of coronavirus, and                                                                    
they were gearing up for the virus emergency.                                                                                   
                                                                                                                                
10:46:49 AM                                                                                                                   
                                                                                                                                
VIKKI JO  KENNEDY, GRAMMA BRIGADE,  JUNEAU, stated  that her                                                                    
home is Kodiak. She thanked  the committee for their work in                                                                    
the  legislature. She  expressed  her  appreciation for  the                                                                    
explanation  of  acronyms.  She spoke  in  support  of  more                                                                    
funding the  AMHS. She was upset  with what was going  on in                                                                    
the state.  She wanted  to see the  legislative per  diem be                                                                    
reduced and a portion given  back to the state. She remarked                                                                    
that  more people  died  of diseases  that  were already  in                                                                    
hospitals than the  flu or other viruses.  She spoke against                                                                    
the  adjustment  to  biweekly   payroll.  She  testified  in                                                                    
support of  funding for  the Pioneer  Home. She  shared that                                                                    
she had heard many stories from seniors in the state.                                                                           
                                                                                                                                
Co-Chair Stedman explained the definition of "BRENT."                                                                           
                                                                                                                                
Co-Chair Stedman CLOSED public testimony.                                                                                       
                                                                                                                                
Co-Chair  Stedman hoped  to conclude  the discussion  on the                                                                    
bill within the upcoming days.                                                                                                  
                                                                                                                                
Co-Chair  von  Imhof  further explained  the  definition  of                                                                    
"BRENT."                                                                                                                        
                                                                                                                                
CSHB 234(FIN)  was HEARD and  HELD in committee  for further                                                                    
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB 234 HCS Summary Spreadsheet SFIN 3.4.20.pdf SFIN 3/4/2020 9:00:00 AM
HB 234
030420 CBR Sweep Breakdown by Fund - LFD.pdf SFIN 3/4/2020 9:00:00 AM
HB 243
030420 LFD Review of Governor's Amendments Presentation 3-4-20.pdf SFIN 3/4/2020 9:00:00 AM
FY 21 Governor's Amendments HB 234