Legislature(2021 - 2022)SENATE FINANCE 532
05/18/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB182 | |
| HB41 | |
| HB69 || HB71 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 182 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| += | HB 69 | TELECONFERENCED | |
| += | HB 71 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 69(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; and making capital appropriations,
supplemental appropriations, and reappropriations."
CS FOR HOUSE BILL NO. 71(FIN) am
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making
supplemental appropriations; and providing for an
effective date."
9:58:40 AM
Co-Chair Stedman discussed housekeeping. He noted that the
committee would adopt the current work versions and
reconvene at 1PM for the amendment process.
Co-Chair Bishop MOVED to ADOPT proposed committee
substitute for CSHB 69(FIN), Work Draft 32-GH1509\L (Marx,
5/17/21).
Co-Chair Stedman OBJECTED for discussion.
10:00:13 AM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, gave a high-
level overview using his written remarks (copy on file):
Mr. Chairman, last week this committee adopted the 2nd
Committee Substitute for the
operating budget, Version F of HB 69.
The CS you have in front of you, Version L, is what we
refer to as CS 3.
Before I explain the changes from CS 2 to CS 3, just a
reminder of what was in CS 2.
CS 2, Version F of HB 69, adopted last week, contained
FY22 operating items and FY21 supplemental operating
and capital items.
The new CS in front of you, Version L (which we refer
to as CS 3), also contains those same operating and
supplemental items, but has added American Rescue Plan
Act (ARPA) funds, a few operating and supplemental
changes, plus has added the capital budget, SB 50
Version D, that this committee went over yesterday
afternoon.
I will highlight the changes in a minute, but first
would like to go over the structure of the bill so
members and the public know which sections of the bill
to look at when they are trying to locate an
appropriation item.
Structure of the Bill
The bill has been divided into sections and grouping
to attempt to make it easier to understand for members
and the public.
The Numbers Section
Sections 1-3 are the regular operating budget, which
contains the recommendations from all of the finance
subcommittees (See pages 2-49)
Sections 4-6 are the numbers section operating
supplemental items. {See pages 50-55.)
Sections 7-9 are the numbers section for FY22 capital
items (see pages 56-86)
Sections 10-12 are the numbers section for capital
supplemental items. (See pages 87-95)
The Language Sections
The bulk of supplemental language items have been
grouped together at the beginning of the language
section. These varying supplemental language
appropriations could be for either operating or
capital items, as well as direct or 'inflexible' ARPA,
CRRSAA, CARES or from other federal acts that require
appropriation to be accepted.
Sections 13 -49 of the language section are the bulk
of those varying language supplemental items for FY21
I just referred to.
Most of the remaining sections {50-73) are mainly more
'normal' or 'usual' FY22 language appropriations.
10:03:38 AM
Mr. Ecklund continued to read from his prepared remarks:
The Substance of the bill
There are many reports that describe in varying
degrees of detail the funding laid out in the CS
before you. For anyone interested, there will be even
more detailed reports posted on legislative finance's
website after this hearing.
Mr. Chairman, I will go over verbally at a high-level
the dollars and fund sources appropriated in this
bill. I will list out in a minute all of the reports
you have in front of you and may reference them, but I
do not intend for members to try and look at each of
the reports while I am speaking, that would just lead
to confusion. I am also going to use round numbers.
10:04:05 AM
Mr. Ecklund offered a high-level overview of the dollars
and fund sources appropriated in the bill:
Totals
FY22 Operating totals:
All Funds $10.23 billion
UGF $4.51 billion
Federal funds $3.28 billion
FY21 Operating supplemental totals:
All Funds - $1.28 billion
UGF - $66.6 million
Federal funds - $1.1 billion
FY22 Capital totals:
All Funds 2.33 billion
UGF 274.7 million
Federal funds - $1.9 billion
FY21 Capital supplemental totals:
All Funds 639.5 million
UGF - $15.7 million
Federal funds - $577.6 million
FY22 Operating and Capital totals:
All Funds - $12.56 billion
UGF - $4.78 billion
Federal funds - $5.18 billion
Mr. Ecklund referenced a packet of 5 reports and
spreadsheets that detailed the dollars and funds sources
associated with the bill version (copy on file).
Mr. Ecklund continued to read from his written remarks:
Changes to the Operating
FY22
• Fish and Game Commercial Fisheries Statewide
Fisheries Management $800.0 UGF one time
increment.
o This is to cover the negative account
balance projected as a result of several
years of deficit spending against the CFEC
fund.
Language Section
• AMHS 18-Month Plan
o Reduce AMHS UGF from $66 million to $61
million (a negative $5 million)
Mr. Ecklund drew attention to page 2 of the packet,
entitled "ARPA," which showed all of the appropriations
using the ARPA CSLRF funds. He shared that there was $500
million in ARPA funds available to spend in FY22, and the
bill appropriated $1 billion with the caveat that decisions
would be made in Conference Committee which adjust the
dollar amount.
10:07:59 AM
Mr. Ecklund continued to read from his written remarks:
ARPA ADDITIONS: 'CSLRF' or 'flexible fund uses
Me. Ecklund highlighted a couple of the significant uses:
• Fund Transfers new subsection $500 million of UGF
revenue replacement
o The sum of $500,000,000 in federal receipts
received from the American Rescue Plan Act:
Title IX, Committee on Finance, Subtitle M,
Coronavirus State and Local Fiscal Recovery
Funds, Section 9901, is appropriated to the
general fund for general fund revenue
replacement.
• Health and Social Services Public Health
Emergency Programs $30,000.0 ARP CSLRFR one time
increment
o This is to cover a full year of FY22 COVID-19
health related costs.
• Grants to tourism and other businesses to offset
revenue loss - $280 million.
Capital Budget, SB 50 Version D added
We have added the substance of SB 50, version D of the
capital budget that the committee reviewed yesterday.
10:09:07 AM
Senator Wielechowski understood the total ARPA spend was $1
billion.
Mr. Ecklund clarified that the bill authorized the
expenditure of $1 billon.
Senator Wielechowski queried the rationale for the spending
authority.
Mr. Ecklund stated that since the House version of the bill
had passed, there had been further guidance from the
Treasury Division. He relayed that the bulk of revenue
replacement that could be done was for FY22, and beyond. He
said that the bill proposed $500 million in revenue
replacement in FY22. He reiterated that the $1 billion
number would decrease to no more than $500 million in
conference committee.
Co-Chair Stedman noted that his office had been working
with the Office of Management and Budget and the
Legislative Finance Division on the federal guidance issues
and restrictions. He said that the proposed CS gave
authorization to expend the full $1 billion but the number
would be brought down in conference committee to $500
million or less. The co-chairs were working collaboratively
with the administration. He asserted that the configuration
allowed for maximum flexibility.
10:12:02 AM
Senator Wielechowski understood that, after conference
committee, the actual total that would be spent in FY22
would be $500 million.
Co-Chair Stedman replied in the affitmative.
Senator Wielechowski asked whether there was more detail
available regarding the $280 million for tourism and other
business grants.
Mr. Ecklund explained that more details would be revealed
in Conference Committee.
Co-Chair Stedman added that the dollar amount would not be
$280 million in the final conference committee report.
Senator Wielechowski spoke of the ending of unemployment
benefits (UI) and felt that it was unfair to give funds to
business owners and not to out of work Alaskans. He said he
would be crafting an amendment to address the matter.
10:14:28 AM
Co-Chair Stedman stated he would work with Senator
Wielechowski on the amendment for later in the afternoons
Senate floor session.
10:14:45 AM
Senator von Imhof noted that the ARPA funding specifically
called out tourism, leisure, and hospitality. She agreed
with Senator Wielechowski that members wanted to see more
detail but contended that there were some details already
known. She spoke about the effects of the pandemic on the
tourism and hospitality industry in the state.
Senator Wielechowski clarified that he did not think those
industries should not receive funds. He noted that the
governor had just turned down $150 million in federal funds
to extend UI benefits. He argued that the pandemic was
still ongoing for all Alaskans and giving funds to one
group while cutting off funding to another seemed
inequitable.
10:16:20 AM
Senator Hoffman felt that the committee should consider
food security grants. He was concerned that when
considering the total spending picture, Alaskans needed to
feel like there was food security. He would support a
larger number and would consider an amendment to that
affect. He knew Alaskans were concerned about food
security.
Co-Chair Stedman said that the issue would be considered in
the conference committee process.
10:18:47 AM
Senator Olson considered page 3 of Mr. Ecklunds remarks. He
noted that adding the UGF and Federal funds under the FY22
Operating and Capital totals was equal to $9.6 billion and
wondered where the additional $2.5 billion came from.
Mr. Ecklund affirmed that the additional funds came from
other funds and designated general funds (DGF) and had
been were left out for brevity. He had highlighted
10:19:59 AM
Co-Chair Stedman WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
Co-Chair Stedman discussed housekeeping.
10:20:43 AM
Co-Chair Bishop MOVED to ADOPT proposed committee
substitute for CSHB 71 (FIN), Work Draft 32-GH1508\N.
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund addressed the SCS for CSHB 71(FIN). He stated
that the only difference between the current and previous
bill versions was the correction to a salary adjustment in
the Alaska Psychiatric Institute (API).
Co-Chair Stedman WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
Senator Wielechowski asked for more detail on the API
funding changes.
Mr. Ecklund did not recall the exact numbers but thought
the number was approximately $60 thousand.
Co-Chair Stedman interjected that the information could be
retrieved and given to Senator Wielechowski.
Senator Olson assumed that the $60 thousand was an increase
in the amount.
Mr. Ecklund replied in the affirmative.
Senator Olson understood the figure was reflected on Page
3, line 22.
10:22:37 AM
AT EASE
10:23:20 AM
RECONVENED
Co-Chair Stedman asked Mr. Ecklund to address the questions
about the Mental Health Budget and the API funding.
Mr. Ecklund noted that the item could be found on Page 3,
line 22. He related that the total salary adjustment amount
was $84,100, $23,000 in general fund mental health funds.
Co-Chair Stedman WITHDREW his objection. There being NO
further OBJECTION, it was so ordered.
Co-Chair Stedman he relayed that both budget bills were
still open for amendments which would be presented to the
committee during the 1PM meeting.
Co-Chair Stedman discussed further housekeeping.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 69 Additional Documents - Agency Summaries.pdf |
SFIN 5/18/2021 9:00:00 AM |
HB 69 |
| HB 69 Ecklund Script.pdf |
SFIN 5/18/2021 9:00:00 AM |
HB 69 |
| HB 69 work draft L.pdf |
SFIN 5/18/2021 9:00:00 AM |
HB 69 |
| HB 71 work draft version N.pdf |
SFIN 5/18/2021 9:00:00 AM |
HB 71 |