Legislature(2021 - 2022)SENATE FINANCE 532

04/27/2022 01:00 PM Senate FINANCE

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Audio Topic
01:56:11 PM Start
01:56:45 PM SB164
02:17:05 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 281 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Scheduled but Not Heard
+= HB 282 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Scheduled but Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 164 APPROP: CAP; REAPPROP; SUPP TELECONFERENCED
Heard & Held
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 27, 2022                                                                                            
                         1:56 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:56:11 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Stedman called the Senate Finance Committee                                                                            
meeting to order at 1:56 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Click Bishop, Co-Chair                                                                                                  
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Lyman Hoffman                                                                                                           
Senator Donny Olson                                                                                                             
Senator Natasha von Imhof                                                                                                       
Senator Bill Wielechowski                                                                                                       
Senator David Wilson                                                                                                            
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Cody Grussendorf, Staff, Senator Click Bishop.                                                                                  
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 164    APPROP: CAP; REAPPROP; SUPP                                                                                           
                                                                                                                                
          SB 164 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
CSHB 281(FIN) am(brf sup maj fld)(efd fld)                                                                                      
          APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          CSHB 281(FIN) am(brf sup maj fld)(efd fld) was                                                                        
          SCHEDULED but not HEARD.                                                                                              
                                                                                                                                
CSHB 282(FIN)                                                                                                                   
          APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CSHB 282(FIN) was SCHEDULED but not HEARD.                                                                            
                                                                                                                                
SENATE BILL NO. 164                                                                                                           
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations,     reappropriations,     and     other                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
1:56:45 PM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop   stated  that   it  was   the  committee's                                                                    
intention  to  consider  a   committee  substitute,  set  an                                                                    
amendment deadline, and set the bill aside.                                                                                     
                                                                                                                                
Co-Chair   Stedman  MOVED   to   ADOPT  proposed   committee                                                                    
substitute  for SB  164,  Work  Draft 32-GS2436\W  (Dunmire,                                                                    
4/26/22).                                                                                                                       
                                                                                                                                
Co-Chair Bishop OBJECTED for discussion.                                                                                        
                                                                                                                                
1:57:27 PM                                                                                                                    
                                                                                                                                
CODY GRUSSENDORF,  STAFF, SENATOR CLICK BISHOP,  addressed a                                                                    
summary of the changes from version  B to version W (copy on                                                                    
file). He  relayed the  work draft  incorporated all  of the                                                                    
capital items in the governor's  infrastructure bill SB 241.                                                                    
The  budget  also  included  a   cooperative  plan  for  the                                                                    
Coronavirus   capital   project  fund's   projects,   monies                                                                    
authorized  the  American Rescue  Plan  Act  (ARPA) for  the                                                                    
state's  use  with  specific guidelines.  Additionally,  the                                                                    
work draft  included legislative reappropriations.  The bill                                                                    
included  $706.9 million  undesignated  general funds  (UGF)                                                                    
and  a total  of $3.15  billion  in all  funds. He  reviewed                                                                    
infrastructure bill changes incorporated into SB 164:                                                                           
                                                                                                                                
     SB 241 Infrastructure bill changes:                                                                                        
         Moved Infrastructure   office    and   IT   24/7                                                                    
          Monitoring to Operating Budget                                                                                        
         Increased grant to Alaska Municipal League to                                                                       
          $1,500,000. (Page 34, line 18)                                                                                        
         Allocated Wildlife   Management   and   Research                                                                    
          appropriation    to   specify    $16,000,000   for                                                                    
          Statewide   Wildlife    Game   Surveys   (Pittman-                                                                    
          Robertson  funds and  Fish and  Game funds)  (Page                                                                    
          38, line 23)                                                                                                          
         Adds $30m in Infrastructure Investment  and Jobs                                                                    
          Act (IIJA) to the Department of Transportation                                                                        
          Alaska Marine Highway for planning and design of                                                                      
          a mainline vessel replacement (page 9, line 24)                                                                       
         Reduced UGF funding for the following projects to                                                                   
          $250,000 each down from $1 million:                                                                                   
             o AGDC- Clean Hydrogen Research (page 33, line                                                                     
               21)                                                                                                              
             o AEA-    Grid   Modernization,    Reliability,                                                                    
               Resiliency, and Transmission Projects                                                                            
             o (page 33, line 24)                                                                                               
             o DNR-    Carbon   Technology    Infrastructure                                                                    
               Research (page 40, line 24)                                                                                      
             o University- Mineral Security Projects (page                                                                      
               45, line 23)                                                                                                     
         Removed Federal Authority for the  previous four                                                                    
          projects                                                                                                              
                                                                                                                                
Mr. Grussendorf  addressed Section 1 of  the bill pertaining                                                                    
to FY 23 expenditures.                                                                                                          
                                                                                                                                
     Changes from the previous CS ver. B:                                                                                       
     SECTION 1: FY 23 Budget, pages 2-27                                                                                        
         Multiple locations Alaska Long Trail $14,750,000                                                                    
         Page 2, line 21 Mariculture  Grant program  (Gov                                                                    
          proposal) $5,000,000                                                                                                  
         Page 3,  line   33   School  Major   Maintenance                                                                    
          $100,000,000                                                                                                          
         Page 5, line 31 DFG Sport Fish Access $1,500,000,                                                                   
          $4,500,000 fed                                                                                                        
         Page 6, line 6 OMB Statewide Deferred Maintenance                                                                   
          $50,000,000                                                                                                           
         Page 7, line  33  Snowmobile  Trail  Development                                                                    
          Program $250,000 DGF                                                                                                  
                                                                                                                                
Mr.  Grussendorf  elaborated   that  the  Mariculture  Grant                                                                    
program had originally been proposed  by the governor at $25                                                                    
million, whereas the  current bill reduced the  number to $5                                                                    
million. The $100 million in  school major maintenance funds                                                                    
covered  up to  approximately project  55 on  the list.  The                                                                    
sport  fish  access  increment  reflected  $4.5  million  in                                                                    
federal Dingle Johnson funds matched  with $1.5 million UGF.                                                                    
Statewide   deferred   maintenance    was   increased   from                                                                    
approximately $23 million in  the governor's proposed budget                                                                    
to   $50  million   UGF.  He   continued  reviewing   FY  23                                                                    
expenditures in Section 1 of the bill:                                                                                          
                                                                                                                                
                                                                                                                                
     Page 8 and 9 AHFC Program Increases:                                                                                       
         Supplemental Housing Development Program $250,000                                                                   
         Senior Citizens   Housing  Development   Program                                                                    
          $750,000                                                                                                              
         Teacher, Health,  and   Public  Safety   Housing                                                                    
          $17,000,000                                                                                                           
                                                                                                                                
     Page 9, line 20 State Equipment Fleet                                                                                      
         $5,000,000 Highway Capital Fund                                                                                     
         Page 9, line 22 DOT&PF Road and Bridge Completion                                                                   
          $30,000,000                                                                                                           
         Page 27,  line   21  Courts   Security  Projects                                                                    
          Increase $3,000,000                                                                                                   
                                                                                                                                
Mr. Grussendorf expounded that the Court System received an                                                                     
increase in $3 million due to inflation costs on previously                                                                     
appropriated projects.                                                                                                          
                                                                                                                                
2:02:19 PM                                                                                                                    
                                                                                                                                
Mr. Grussendorf addressed Section 4 of the bill pertaining                                                                      
to FY 22 supplemental expenditures:                                                                                             
                                                                                                                                
     SECTION 4: FY 22 Supplemental Budget                                                                                       
         Page 33, Line 13 Azure  Adoption to  Assist with                                                                    
        Cloud Migration (Gov proposal) $23,116,000                                                                              
         Page 33, line 31 Kodiak Fire Hall (Gov proposal)                                                                    
          $15,000,000                                                                                                           
         Page 34, line 5  AHTNA,  Inc.  Eagle Trail  Fuel                                                                    
          Spill (Gov Amend) $382,843                                                                                            
         Page 34, line  7  Alaska  Community  Foundation-                                                                    
          Homeless Housing $5,000,000                                                                                           
         Page 34,   line   12   Alaska   Farmers   Market                                                                    
          Association-   SNAP/WIC/Senior   Coupon   Doubling                                                                    
          $500,000                                                                                                              
         Page 34, line 21 Alaska Primary Care Association-                                                                   
         Healthcare Workforce Pipeline $2,000,000                                                                               
         Page 34,   line    32   Bering   Sea   Fisherman                                                                    
          Association- Improve stock of origin analysis of                                                                      
          Western Alaska salmon $513,000                                                                                        
                                                                                                                                
Mr. Grussendorf elaborated on  the supplemental budget items                                                                    
above.  He  noted  the  cloud  migration  project  had  been                                                                    
discussed  by  the  committee the  previous  day.  The  item                                                                    
proposed by  the governor had  originally been  removed from                                                                    
the committee  substitute and  had been  added back  in. The                                                                    
increment for  the Kodiak  Fire Hall  had originally  been a                                                                    
general  obligation   bond  project   put  forward   by  the                                                                    
governor. He detailed  that there were a  few salmon studies                                                                    
funded in the  proposed budget to help  address the disaster                                                                    
that occurred on the Yukon Kuskokwim Rivers.                                                                                    
                                                                                                                                
Mr.  Grussendorf   continued  to  address  the   summary  of                                                                    
supplemental expenditures for FY 22:                                                                                            
                                                                                                                                
         Page 35,   line   4   Bering   Sea   Fishermen's                                                                    
          Association    -     Integrating    Genetic    and                                                                    
          Environmental  Data   for  Predictive   Models  of                                                                    
          Salmon Bycatch $310,000                                                                                               
         Page 35,   line   8   Bering   Sea   Fishermen's                                                                    
          Association -  Review Current  Draft Comprehensive                                                                    
          Salmon Plan $100,000                                                                                                  
         Page 35   line   11   Bering   Sea   Fishermen's                                                                    
          Association     Yukon River  Watershed  Monitoring                                                                    
          $1,180,561                                                                                                            
                                                                                                                                
Mr.  Grussendorf   elaborated  the  Yukon   River  watershed                                                                    
monitoring   was  to   help   obtain   accurate  counts   of                                                                    
subsistence totals.  He continued to address  the summary of                                                                    
supplemental expenditures for FY 22:                                                                                            
                                                                                                                                
         Page 35, line 14  Blood  Bank  of Alaska-  High-                                                                    
          complexity Reference Laboratory $2,000,000                                                                            
         Page 35, line 16  Bristol  Bay Science  Research                                                                    
          Institute  -  Nushagak   Salmon  Stock  Assessment                                                                    
          $3,750,000 matching funds                                                                                             
         Page 35,  line   19  Food   Bank  of   Alaska  -                                                                    
          Infrastructure for  Alaska's Statewide  Food Banks                                                                    
          $10,000,000                                                                                                           
         Page 35, line  22 Kuskokwim  River  Inter-Tribal                                                                    
          Fish   Commission    -   Community-Based   Harvest                                                                    
          Monitoring  Network  for Kuskokwim  River  Chinook                                                                    
          Salmon $140,000                                                                                                       
         Page 35, line  26 Kuskokwim  River  Inter-Tribal                                                                    
          Fish  Commission    Salmon Stock  Assessment using                                                                    
          Environmental DNA $88,000                                                                                             
         Page 35, line  29 Kuskokwim  River  Inter-Tribal                                                                    
          Fish   Commission      Tatlawiksuk  River   Salmon                                                                    
          Assessment Project $170,000                                                                                           
Mr.   Grussendorf  noted   the   Tatlawiksuk  River   salmon                                                                    
assessment  project   would  restart  the  weir   to  obtain                                                                    
accurate fish  counts. He  continued to  review supplemental                                                                    
items:                                                                                                                          
                                                                                                                                
         Page 35, line 32 Lower Kuskokwim School District                                                                    
            Kwethluk School Generator $614,000                                                                                  
         Page 36, line 11  Providence  Hospital    Crisis                                                                    
          Stabilization Center $8,000,000                                                                                       
         Page 36, line  13 Sealaska  Heritage  Institute-                                                                    
          Workforce Training Program $340,000                                                                                   
         Page 36,  line  16  United   Way  of   Alaska                                                                       
          Restaurant and Hunger Relief Program $500,000                                                                         
          (the continuation of a pilot program implemented                                                                      
          during COVID-19)                                                                                                      
         Page 36, line 18 University of Alaska   Maritime                                                                    
          Works $2,000,000                                                                                                      
         Page 36, line 20 Volunteers of America   school-                                                                    
          based Mental Health Services $960,000                                                                                 
         Page 36, line  28  Anchorage     Starner  Street                                                                    
          Bridge Replacement $1,500,000                                                                                         
         Page 36, line  30   City  of  Palmer  Wastewater                                                                    
          Treatment   Plant   Improvements   (Gov   project)                                                                    
          $6,900,000                                                                                                            
                                                                                                                                
Mr.  Grussendorf elaborated  that  the wastewater  treatment                                                                    
plant  improvement  was   a  governor's  project  originally                                                                    
funded  with Coronavirus  State  and  Local Fiscal  Recovery                                                                    
Funds (CSLFRF). He continued to review supplemental items:                                                                      
                                                                                                                                
         Page 36, line 33 Emmonak Port  Phase II-  Ramp -                                                                    
          $9,400,000                                                                                                            
         Page 37, line 11 Lutak Dock - $3,211,000                                                                            
         Page 37, line  13  Homer  Large  Vessel  Harbor-                                                                    
         Matching funds for Army Corps - $750,000                                                                               
         Page 37, line  17 North  State  Office  Building                                                                    
          Parking Garage - $5,000,000                                                                                           
                                                                                                                                
2:08:11 PM                                                                                                                    
                                                                                                                                
Mr. Grussendorf continued to address supplemental items:                                                                        
                                                                                                                                
     Page 38, line 8 Mt. Edgecumbe Deferred Maintenance -                                                                       
     $6,163,000                                                                                                                 
     Page 38, line 10 Start-up and Expansion of School                                                                          
     Breakfast Program - $600,000                                                                                               
                                                                                                                                
Mr. Grussendorf elaborated that  the $6.1 million would fund                                                                    
the  top three  projects  on the  Mt. Edgecumbe  maintenance                                                                    
list. The  $600,000 increment expanded the  School Breakfast                                                                    
Program to  an additional  30 schools. He  moved to  page 39                                                                    
containing   a   collaborative    list   (devised   by   the                                                                    
administration,  Senate,  and   House)  of  the  Coronavirus                                                                    
capital  project  fund  projects  under the  Office  of  the                                                                    
Governor paid for with federal funding:                                                                                         
                                                                                                                                
    Page 39 Governor - Coronavirus Capital Project Fund                                                                         
                                                                                                                                
         Line 5 Alutiiq Tribe of Old Harbor- Construction                                                                    
          of Nuniaq Community Center $4,454,968                                                                                 
         Line 8 Anchorage Library  Foundation-  Anchorage                                                                    
          Downtown Library $2,500,000                                                                                           
         Line 10  Association   of  Village   Council  of                                                                    
          Presidents  Six Multi-Purpose Community Facility                                                                      
          Projects $10,445,000                                                                                                  
         Line 13 Iliuliuk   Family  and  Health  Services                                                                    
         Center (located in Unalaska) $20,000,000                                                                               
         Line 15   Kawerak      Multi-Purpose   Community                                                                    
          Facility Projects $12,000,000                                                                                         
         Line 17 Mat-Su First Responder Training Facility                                                                    
          $8,000,000                                                                                                            
         Line 19  Nenana  Health  and   Wellness  Complex                                                                    
          (including the firehall) $24,000,000                                                                                  
         Line 21 Petersburg  Medical  and  Public  Health                                                                    
          Center $20,000,000                                                                                                    
         Line 23 Rampart Broadband project $9,000,000                                                                        
         Line 24 Spruce Island Development  Cooperation                                                                      
          Ouzinkie Community Internet caf? $1,400,000                                                                           
                                                                                                                                
Mr. Grussendorf continued to review items:                                                                                      
                                                                                                                                
         Page 39, line  30  Alaska  Workforce  Investment                                                                    
          Board-   Cross-Industry    Skills   and   Training                                                                    
         $2,000,000 (workforce development grant)                                                                               
         Page 40, line 19 Agriculture 3  Phase Electrical                                                                    
          Service     Infrastructure    Nenana     Totchaket                                                                    
          $3,000,000 (under the governor's Food Security                                                                        
          Grant Initiative)                                                                                                     
         Page 40, line 29 Eagle River Salmon Viewing Deck                                                                    
          Replacement $200,000  Statutory Designated Program                                                                    
          Receipts                                                                                                              
         Page 40,  line  31  Food   Security  Agriculture                                                                    
          Incentive  Grant  Program  $3,000,000  (under  the                                                                    
          governor's food security proposal)                                                                                    
         Page 41, line   7  Nenana-Totchaket  Agriculture                                                                    
          Development $5,000,000 (under  the governor's food                                                                    
          security proposal)                                                                                                    
         Page 41, line  11 Plant  Materials  Center  Seed                                                                    
          Processing  and  Storage  Improvements  $2,000,000                                                                    
          (governor's request)                                                                                                  
         Page 41, line  23   Mobile  and  Handheld  Radio                                                                    
          Replacement    (Gov    request)   fully    funding                                                                    
          $3,723,300  (increased   to  the  administration's                                                                    
          original request)                                                                                                     
         Page 42, line 22 Harbor  Matching Grant  Program                                                                    
          $20,019,189                                                                                                           
         Page 45, line 25 University IT System  (Gov used                                                                    
          CCPF) $20,000,000 UGF                                                                                                 
         Page 45, line 28 University  of Alaska  Deferred                                                                    
          Maintenance $50,000,000  for projects  approved by                                                                    
          the Board of Regents                                                                                                  
                                                                                                                                
2:12:28 PM                                                                                                                    
                                                                                                                                
Mr. Grussendorf moved to a summary of the language section:                                                                     
                                                                                                                                
     SECTION 11: Legislative Reappropriation                                                                                    
     SECTION   12:  Department   of  Family   and  Community                                                                    
     Services: DHSS  split, appropriating the  prior capital                                                                    
     projects to the correct new department.                                                                                    
     SECTION  13:  Fish  and  Game  language  to  allow  the                                                                    
     proceeds of  sales of state owned  vessels and aircraft                                                                    
     to be  used for  renewal, replacement,  and maintenance                                                                    
     of the vessels and aircraft for FY22 and FY23                                                                              
     SECTION  14  (a):  DOH DHSS  split,  appropriating  the                                                                    
     prior capital projects to the correct new department.                                                                      
     SECTION 14 (b):  Sum of $5 million  appropriated to the                                                                    
     Department  of Health,  Child Care  Program Office  for                                                                    
     initiatives  in the  Child  Care  and Development  Fund                                                                    
     Plan for Alaska.                                                                                                           
     SECTION 16: Legislative Reappropriation                                                                                    
     SECTION  18 (b):  Governor  amendment to  reappropriate                                                                    
     funds from  the Fairview Loop Road  construction to the                                                                    
     Totchaket Road project $15 million.                                                                                        
     SECTION 18 (c): Legislative Reappropriation                                                                                
     SECTIONS 21-29: Legislative Reappropriations                                                                               
     SECTION  24  (l) &  (m):  The  sum  of $25  million  is                                                                    
     appropriated   to   the   Municipality   of   Anchorage                                                                    
     contingent on  a $25 million match  by the Municipality                                                                    
     (can be in-kind),  for the purpose of  preparing a full                                                                    
     financial  package for  final  investment decision  for                                                                    
     the Port of Alaska                                                                                                         
     SECTION 30: Added "transition costs" as an allowable                                                                       
     use of the reappropriation                                                                                                 
     SECTION 31: Legislative Reappropriation                                                                                    
     SECTION 32: Capital lapse language                                                                                         
     SECTION 33-34: Effective dates                                                                                             
                                                                                                                                
2:14:54 PM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop  commented that  there  was  a lot  in  the                                                                    
[capital budget]  bill compared  to the  past six  years. He                                                                    
believed  it reflected  generous federal  funding coming  to                                                                    
Alaska.  He thought  the budget  showed some  pent-up demand                                                                    
from  a constrained  capital budget  over  the previous  few                                                                    
years  due to  reduced incoming  state revenue.  The state's                                                                    
revenue  had improved,  which was  reflected in  the current                                                                    
budget.  He  listed items  funded  in  the budget  including                                                                    
major  maintenance,  school   construction,  grants  to  the                                                                    
matching Harbor Grant Program, and  University of Alaska and                                                                    
State of Alaska deferred  maintenance at $50 million apiece.                                                                    
He noted  the funding  still did not  come close  to meeting                                                                    
demands of  up to  $2 billion  in deferred  maintenance. The                                                                    
goal  was to  save as  much  money as  possible because  the                                                                    
targeted  savings  were  projected;   if  the  savings  were                                                                    
realized  in one  year's time  and oil  prices continued  at                                                                    
$101 per barrel, the state would be in a better position.                                                                       
                                                                                                                                
2:16:32 PM                                                                                                                    
                                                                                                                                
Co-Chair  Bishop  WITHDREW  his OBJECTION.  There  being  NO                                                                    
further OBJECTION, Work Draft 32-GS2436\W was ADOPTED.                                                                          
                                                                                                                                
Co-Chair Bishop set an amendment  deadline for 2:00 p.m. the                                                                    
following afternoon.                                                                                                            
                                                                                                                                
SB  164  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Bishop reviewed  the  schedule  for the  following                                                                    
day.                                                                                                                            
                                                                                                                                
ADJOURNMENT                                                                                                                   
2:17:05 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 2:17 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
SB 164 House District Summary Compare ALL FUNDS.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 SCS2 AgencySummary.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 GovTotal+ to SCS2 Project Detail By Agency.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 SCS2 Project Detail by Agency.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 Explaination of Changes ver W.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 work draft version W.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 Testimony Midtown Park Oval Chalet project.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 Midtown Park Chalet funding request.pdf SFIN 4/27/2022 1:00:00 PM
SB 164
SB 164 Testimony Nelson Yes! -to funding of Anch Midtown Park Chalet.pdf SFIN 4/27/2022 1:00:00 PM
SB 164