Legislature(2021 - 2022)
06/12/2021 04:00 PM Senate CONFERENCE COMMITTEE ON HB69 AND HB71
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| Audio | Topic |
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| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | 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."
SCS CSHB 69(FIN) AM S
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making capital appropriations,
supplemental appropriations, and reappropriations; and
providing for an effective date."
and
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."
SENATE CS FOR CS FOR HOUSE BILL NO. 71(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making capital
appropriations and supplemental appropriations; and
providing for an effective date."
Chair Foster invited Alexei Painter, Director of the
Legislative Finance Division to join the committee at the
table. He noted that the committee would be addressing open
items in HB 69 and HB 71 based on the motion sheets
distributed to members and dated June 12th (copy on file)
on the departments of:
FY 22 OPERATING BUDGET:
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
DEPARTMENT OF LAW
UNIVERSITY OF ALASKA
FISCAL NOTES
FY 22 CAPITAL BUDGET:
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT
DEPARTMENT OF CORRECTIONS
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEPARTMENT OF FISH AND GAME
OFFICE OF THE GOVERNOR
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
DEPARTMENT OF LAW
DEPARTMENT OF MILITARY AND VETERAN AFFAIRS
DEPARTMENT OF NATURAL RESOURCES
DEPARTMENT OF PUBLIC SAFETY
DEPARTMENT OF REVENUE
DEPARTMENT OF TRANSPORTATIONS AND PUBLIC FACILITIES
UNIVERSITY
JUDICIARY
MENTAL HEALTH
^DEPARTMENT OF HEALTH AND SOCIAL SERVICES
5:34:49 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Health and Social Services budget:
Item 35 Open
Item 36 Open
Item 42 House Both items
Item 43 House Modify intent to read: "it is the
intent of the legislature that the
department draw up to 70 new
individuals from the intellectual
and Developmental Disabilities
waiver waitlist in FY22 to receive
services. The department shall
submit a waiver amendment to the
Centers for Medicare and Medicaid
to ensure costs for this increased
draw will be matched with federal
dollars."
Item 44 Open
Item 45 Open
Item 46 Open
Item 47 Open
There being NO OBJECTION, items 35, 36, and 42 through 47
within the Department of Health and Social Services budget
were ADOPTED.
^DEPARTMENT OF LAW
5:36:02 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Debt Service budget:
Item 1 Senate
Item 2 House
Item 3 Senate
Item 4 House
Item 5 Senate
Item 6 Senate
Item 7 Senate
Item 8 Senate
Item 9 Senate
Item 10 Senate
Item 11 House
Item 12 House
Item 13 House Modify, Fund source swap 1235
(AGDC-LNG) to 1004 (UGF)
Item 14 House Modify, Fund Source swap 1004
(UGF) to 1007 (I/A Receipts)
Item 15 House
Chair Foster OBJECTED for an explanation.
5:37:34 PM
AT EASE
5:39:28 PM
RECONVENED
Vice-Chair Stedman clarified the page numbers in the
previous motion.
Representative LeBon looked at the items for the Department
of Law. He asked if any items had been left open.
Chair Foster answered that the motion would close all items
within the Department of Law budget.
Chair Foster WITHDREW his OBJECTION.
There being NO further OBJECTION, items 1 through 15 within
the Department of Law budget were ADOPTED.
^UNIVERSITY OF ALASKA
5:40:55 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Fund Capitalization budget:
Item 1 Senate
Item 2 House
Item 3 House Modify, to replace $20 million in
language with $10 million
Representative LeBon OBJECTED to item 1. He stated that the
University was best suited with a single appropriation,
which had been passed by the House. He elaborated that in a
period of declining budget funding the method provided the
University with more flexibility to allocate money more
efficiently. He objected to the two separate appropriations
included in the budget passed by the Senate.
5:41:52 PM
Senator Olson agreed with Representative LeBon. He had
discussed the issue with individuals from the University
who had communicated a preference for the single
appropriation despite the fact there was less money than in
two appropriations.
Chair Foster asked if there were objections to any of the
other items.
Representative LeBon OBJECTED to item 3. He objected to the
reduction in receipt authority from $20 million to $10
million. He believed the receipt authority would better
serve the University at $20 million versus $10 million. He
recommended the committee consider increasing the number to
$20 million. He added that the receipt authority funding
included federal, tuition, and any other sources. He
highlighted that during a period of declining budgets,
giving the University the added tool to seek out funding
from any available fund sources showed support from the
legislature.
Chair Foster noted there had been no objection to item 2.
There being NO OBJECTION, item 2 was ADOPTED.
Chair Foster asked Representative LeBon and Senator Olson
if they maintained the objection to item 1.
Representative LeBon and Senator Olson MAINTAINED the
OBJECTION.
A roll call vote was taken on the motion to adopt item 1.
IN FAVOR: Representative Foster, Senator Stedman,
Representative Merrick, Senator Bishop
OPPOSED: Representative LeBon, Senator Olson
The MOTION PASSED (4/2). There being NO further OBJECTION,
item 1 was ADOPTED.
5:44:46 PM
Chair Foster returned to item 3 to accept $10 million in
receipt authority.
Representative LeBon clarified his desire to use the $20
million receipt authority figure.
Chair Foster explained that the conference committee
recommendation was to replace the $20 million in receipt
authority with $10 million. The proposal was to accept the
$10 million.
Representative LeBon OBJECTED to the reduction.
Chair Foster asked if there was any further discussion on
item 3. He clarified that the question for the committee
was whether or not to accept the House position modified
from $20 million to $10 million in receipt authority for
the University.
Representative LeBon asked for verification that the House
had proposed $20 million in receipt authority.
Chair Foster agreed. He noted that the conference committee
proposal was to reduce the figure to $10 million.
Representative LeBon asked if he could move to amend item 3
to increase the figure to $20 million. Alternatively, he
wondered if he should just speak against the reduction to
$10 million. He wanted the receipt authority to remain at
$20 million.
Chair Foster believed an amendment could be offered.
5:46:58 PM
AT EASE
5:48:44 PM
RECONVENED
Chair Foster asked if Representative LeBon had decided
against proposing an amendment.
Representative LeBon answered that he would not make an
amendment. He did not want to lose the $10 million. He
WITHDREW his OBJECTION.
Chair Foster clarified that it sounded like amendments to a
motion were not part of the conference committee process.
There being NO further OBJECTION, item 3 was ADOPTED.
^FISCAL NOTES
5:49:55 PM
Chair Foster addressed the fiscal note packet for HB 69 and
HB 71.
Vice-Chair Stedman MOVED to ADOPT the fiscal note
appropriation packet for HB 69 and HB 71.
Chair Foster OBJECTED for purpose of explanation.
Vice-Chair Stedman explained the following:
1. The packet makes appropriations associated with the
bills listed.
2. If a bill is vetoed by the Governor, the
appropriations associated with that bill are removed
from the operating budget.
3. The attached reports prepared by the Legislative
Finance Division list the fund sources and agencies
associated with the bill.
Chair Foster noted that one of the items pertained to the
governor's Public Employees' Retirement System (PERS) bill.
He asked Mr. Painter to explain both bills.
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION
explained that the one complicated fiscal note pertained to
SB 55, the employer contribution to PERS. He referenced a
statement at the beginning of the fiscal note section
explaining that the fiscal notes were incorporated
throughout the bills because it had the effect of
decreasing funding for the retirement line in the language
section and increasing funding for state agencies all
throughout the budget. He elaborated that rather than
listing hundreds of allocations in the fiscal note, there
was a report listing the items, which would be adopted into
Section 1. The language portions dealing with the
retirement system and the Alaska Marine Highway System
would be incorporated into the language section.
Chair Foster asked Mr. Painter to touch on the fiscal
impact.
Mr. Painter explained that bill increased funding to state
agencies to pay for the higher employer contribution to
PERS and decreased the state assistance funding. The net
fiscal impact in unrestricted general funds (UGF) was a
savings of approximately $23 million between the two bills.
Chair Foster WITHDREW his OBJECTION.
There being NO further OBJECTION, the fiscal note packets
for HB 69 and HB 71 were ADOPTED.
5:52:56 PM
Chair Foster relayed that the committee would recess. There
was a possibility of returning later in the evening.
Senator Olson asked if the committee could potentially meet
again later in the day.
Chair Foster Agreed. He RECESSED the meeting.
5:53:46 PM
RECESSED
8:25:09 PM
RECONVENED
Chair Foster relayed that the committee would hear capital
budget items. He detailed that the budget included state
matching funds to leverage federal funds for roads,
airports, and sanitation systems. The capital budget also
included some items from the general obligation bond
proposal considered earlier in the session including
projects on the Statewide Transportation Improvement
Program (STIP) list, the Airport Improvement (AIP) list,
and a handful of other items. He reported that the motion
sheets included items on the departments of:
FY 22 CAPITAL BUDGET
DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT
DEPARTMENT OF CORRECTIONS
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEPARTMENT OF FISH AND GAME
OFFICE OF THE GOVERNOR
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
DEPARTMENT OF LAW
DEPARTMENT OF MILITARY AND VETERAN AFFAIRS
DEPARTMENT OF NATURAL RESOURCES
DEPARTMENT OF PUBLIC SAFETY
DEPARTMENT OF REVENUE
DEPARTMENT OF TRANSPORTATIONS AND PUBLIC FACILITIES
UNIVERSITY
JUDICIARY
MENTAL HEALTH
8:27:09 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Commerce, Community and Economic Development
capital budget:
Item 1 Senate Both items
Item 2 Senate
Item 3 Senate Both items
Item 4-7 Senate All items
Item 8 Senate
Item 9 Senate
Item 10 Senate Modify, from grants to named
recipients to grants to
municipalities
Item 11 Senate Modify, from grants to named
recipients to grants to
municipalities
Item 12 Open
Item 13 Senate
Item 14 Open
Senator Olson OBJECTED to item 8 related to the West
Susitna Road access for $8.5 million.
Chair Foster set aside item 8. There being NO OBJECTION,
items 1 through 7 and 9 through 14 were ADOPTED.
Senator Olson addressed his objection to item 8 related to
the West Susitna Road access. He asked for additional
information. He remarked that the road had been studied in
detail and there was currently only a small access road
that was closed part of the year.
Senator Bishop answered that the $8.5 million was to
continue the permitting and field work for the project.
Senator Olson asked which project Senator Bishop was
referring to.
Senator Bishop stated it was the West Susitna Road access
project.
Mr. Painter provided clarification on the fund source
identified as 1002 federal receipts. He believed it was the
intent of the committee to revisit the fund source in a
future meeting.
Senator Olson asked for clarification on the funding
source.
Mr. Painter relayed that the Senate version had funded the
item with federal receipts. He explained that the fund
source was hollow authorization with the intent to change
to a different fund source in the future.
Senator Olson thought the method sounded unusual.
Vice-Chair Stedman asked if the forthcoming adjustments of
fund sources should be explained.
Chair Foster asked if Vice-Chair Stedman was referring to
something specific.
Vice-Chair Stedman explained that the fund source for the
project would be reviewed and changed from federal receipts
the following day.
8:30:57 PM
AT EASE
8:32:53 PM
RECONVENED
Senator Olson MAINTAINED his OBJECTION to the adoption of
item 8.
A roll call vote was taken on the motion.
IN FAVOR: Senator Bishop, Representative Merrick,
Representative LeBon, Senator Stedman, Representative
Foster
OPPOSED: Senator Olson
The MOTION PASSED (5/1). There being NO further OBJECTION,
item 8 within the Department of Commerce, Community and
Economic Development capital budget was ADOPTED.
There being NO further OBJECTION, items 1 through 14 within
the Department of Commerce, Community and Economic
Development capital budget were ADOPTED.
8:34:02 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Department of Corrections capital budget:
Item 1 Senate
There being NO OBJECTION, it was so ordered.
8:34:14 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Education and Early Development capital
budget:
Item 1-3 Senate
Representative LeBon OBJECTED for discussion. He asked for
background on the Houston middle school replacement. He
believed the school needed replacement due to earthquake
damage. He asked for a summary of the total replacement
funds needed for the project. He believed the project cost
exceeded the $9 million increment under discussion.
Mr. Painter answered that the increments reflected a
portion of the cost. The additional portion would be paid
through FEMA [Federal Emergency Management Agency]
reimbursement and insurance. He did not have the exact
amounts of the other reimbursements. He explained that the
capital budget increment reflected the remaining costs.
Representative LeBon recalled the discussion in the House
Finance Committee. He thought the school replacement was
closer to $25 million.
Chair Foster asked Mr. Painter if he knew the total project
cost.
Mr. Painter answered that he did not want to speculate on
the total.
Representative LeBon highlighted that the total cost
exceeded $9 million. He WITHDREW his OBJECTION.
There being NO further OBJECTION, items 1 through 3 within
the Department of Education and Early Development capital
budget were ADOPTED.
8:36:16 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Environmental Conservation capital budget:
Item 1-2 Senate
Item 3-4 Senate All items
There being NO OBJECTION, items 1 through 4 within the
Department of Environmental Conservation capital budget
were ADOPTED.
8:36:38 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Fish and Game capital budget:
Items 1-7 Senate All items
There being NO OBJECTION, items 1 through 7 within the
Department of Fish and Game capital budget were ADOPTED.
8:37:13 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Office of the Governor capital budget:
Items 1-2 Senate
There being NO OBJECTION, items 1 and 2 within the Office
of the Governor capital budget were ADOPTED.
8:37:30 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Health and Social Services capital budget:
Items 1-3 Senate
Items 4-7 Senate
There being NO OBJECTION, items 1 through 7 within the
Department of Health and Social Services capital budget
were ADOPTED.
8:38:03 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Labor and Workforce Development capital
budget:
Item 1 Senate
Representative LeBon OBJECTED for discussion. He asked for
more detail on the location of the technical center that
would be upgraded.
Senator Bishop answered that the location was in Seward. He
elaborated that the item was for the state's vocational
training center, which fell under the jurisdiction of the
Department of Labor and Workforce Development. He detailed
that the increment was for housing that had been needed for
16 years.
Representative LeBon WITHDREW his OBJECTION.
There being NO further OBJECTION, item 1 within the
Department of Labor and Workforce Development capital
budget was ADOPTED.
8:38:57 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Law capital budget:
Item 1 Senate Both items
There being NO OBJECTION, item 1 within the Department of
Law capital budget was ADOPTED.
8:39:13 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Military and Veterans Affairs capital budget:
Items 1-4 Senate
There being NO OBJECTION, items 1 through 4 within the
Department of Military and Veterans Affairs capital budget
were ADOPTED.
8:39:38 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Natural Resources capital budget:
Items 1-9 Senate All items
Items 10-21 Senate All Items
Items 22-26 Senate
Items 27-36 Open
There being NO OBJECTION, items 1 through 36 within the
Department of Natural Resources capital budget were
ADOPTED.
8:40:16 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Public Safety capital budget:
Item 1-9 Senate
There being NO OBJECTION, items 1 through 9 within the
Department of Public Safety capital budget were ADOPTED.
8:40:43 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Revenue budget:
Item 1-10 Senate All items
There being NO OBJECTION, items 1 through 10 within the
Department of Revenue capital budget were ADOPTED.
8:41:02 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Department of Transportation and Public Facilities budget:
Items 1-9 Senate All items
Item 10 Open
Items 11-64 Senate All items with the
exception of items 24 and 25
which were duplicate
appropriations which would be
House for the Airport
Improvement Program
Items 65-67 Senate All items (federal
match program)
Item 68-72 Senate All items (statewide
federal programs)
Items 73-207 Senate All items (Surface
Transportation Program)
8:42:27 PM
Senator Olson OBJECTED to item 39 related to parking garage
repairs. He asked where the parking garage was located.
8:42:55 PM
AT EASE
8:45:00 PM
RECONVENED
Vice-Chair Stedman clarified that the last portion of his
motion for items 73 through 207 were on pages 24 through
38.
Mr. Painter responded to Senator Olson's question regarding
item 39. He stated the increment was part of the
international airports. He detailed that Anchorage and
Fairbanks had the two international airports run by the
state. He reported that only Anchorage had a parking
garage; therefore, he had been told the increment pertained
to Anchorage.
Senator Olson stated that he had no further comments [on
item 39].
Representative LeBon asked about item 91 related to a
project in an intersection of the road entering Fort
Wainwright. He had concern about the project. He believed
the nature of the interchange would be better served as an
overpass and not a more complicated, interactive
intersection. He suspected the proposed project may be less
expensive; however, he believed an overpass would have
better long-term use. He did not know what good it did to
speak against the project design at the current point in
the process, but he believed the department was approaching
the intersection in the wrong way.
8:47:08 PM
Representative LeBon WITHDREW his OBJECTION to item 91.
Senator Olson WITHDREW his OBJECTION to item 39.
There being NO further OBJECTION, items 1 through 207
within the Department of Transportation and Public
Facilities capital budget were ADOPTED.
8:47:44 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
University of Alaska capital budget:
Item 1-4 Senate all items
There being NO OBJECTION, items 1 through 4 within the
University of Alaska capital budget were ADOPTED.
8:48:02 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Judiciary capital budget:
Item 1 Senate
There being NO OBJECTION, item 1 within the Judiciary
capital budget was ADOPTED.
8:48:23 PM
Vice-Chair Stedman MOVED to ADOPT the following in the
Mental Health capital budget:
Item 1 House
Item 2 House both items
Item 3 Senate
Item 4-7 House all items
8:48:56 PM
AT EASE
8:49:37 PM
RECONVENED
Vice-Chair Stedman corrected that item 1 House was only one
item.
There being NO OBJECTION, items 1 through 7 within the
Mental Health capital budget were ADOPTED.
Chair Foster clarified that the items discussed were
capital budget items. He noted that the Senate numbers had
been adopted for most of the items. He explained that the
capital budget had been rolled into the operating budget.
He thanked Senator Bishop and Representative Merrick for
their collaborative work on the package.
Chair Foster indicated the committee had covered the agenda
for the day.
Vice-Chair Stedman MOVED to ADJOURN. There being NO
OBJECTION, it was so ordered.
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