Legislature(2017 - 2018)ADAMS ROOM 519

05/12/2018 01:30 PM House FINANCE

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Audio Topic
07:46:06 PM Start
07:46:59 PM SB142
08:02:03 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Recessed to a Call of the Chair --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 142 APPROP: CAPITAL BUDGET TELECONFERENCED
Moved HCS CSSB 142(FIN) Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                       May 12, 2018                                                                                             
                         7:46 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
7:46:06 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster called the House Finance Committee meeting                                                                      
to order at 7:46 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Paul Seaton, Co-Chair                                                                                            
Representative Les Gara, Vice-Chair                                                                                             
Representative Jason Grenn                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Lance Pruitt                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Cathy Tilton                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Paul  Labolle, Staff,  Representative  Neal Foster;  Speaker                                                                    
Bryce Edgmon;  Representative Dave  Talerico; Representative                                                                    
Dan Saddler; Representative  Gary Knopp; Representative Mark                                                                    
Neuman.                                                                                                                         
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 142 (FIN) AM                                                                                                               
          APPROP: CAPITAL BUDGET                                                                                                
                                                                                                                                
          HCS CSSB 142(FIN) was REPORTED out of committee                                                                       
          with a "do pass" recommendation.                                                                                      
                                                                                                                                
Co-Chair Foster  reviewed the  meeting agenda.  He indicated                                                                    
the  capital budget  was being  heard. He  relayed that  the                                                                    
committee would  be stopping the amendment  process that had                                                                    
been started  the previous evening.  The committee  would be                                                                    
introducing a  committee substitute and he  intended to move                                                                    
the bill out of committee.                                                                                                      
                                                                                                                                
CSSB 142(FIN) AM                                                                                                              
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations,       supplemental      appropriations,                                                                    
     reappropriations,  and  other appropriations;  amending                                                                    
     appropriations;  making  appropriations  to  capitalize                                                                    
     funds; and providing for an effective date."                                                                               
                                                                                                                                
7:46:59 PM                                                                                                                    
                                                                                                                                
Co-Chair   Seaton   MOVED   to  ADOPT   proposed   committee                                                                    
substitute  for CSSB  142(FIN)  am,  Work Draft  30-GS2565\M                                                                    
(Martin, 5/12/18).                                                                                                              
                                                                                                                                
Representative Wilson OBJECTED for discussion.                                                                                  
                                                                                                                                
Co-Chair  Foster  recognized  Representative  Bryce  Edgmon,                                                                    
Representative  Dan Saddler,  and Representative  Gary Knopp                                                                    
in  the audience.  He  invited  his staff  to  the table  to                                                                    
review  the  changes from  version  N  of  the bill  to  the                                                                    
committee substitute, version M.                                                                                                
                                                                                                                                
PAUL LABOLLE,  STAFF, REPRESENTATIVE NEAL  FOSTER, clarified                                                                    
that  he  was  presenting  a comparison  of  the  previously                                                                    
adopted version N, which meant  that any action taken during                                                                    
the  amendment   process  was  wiped  clean   with  the  new                                                                    
committee substitute. He began  with Section 1. He indicated                                                                    
that  two   projects  were  removed  from   version  N:  the                                                                    
Metlakatla  community  Ketchikan  intertie project  and  the                                                                    
Prince  William   Sound  acquisition  for   construction  of                                                                    
facilities  for   the  Prince  William  Sound   Science  and                                                                    
Technology Institute.  He continued to  page 4, line  3. The                                                                    
Port of Anchorage  was added for $20 million.  He noted that                                                                    
if the  numbers were  non undesignated general  funds (UGF),                                                                    
he would  mention it. He  continued to  Page 4, line  7. The                                                                    
Port of Nome  was added for $1.6 million. On  page 5, line 7                                                                    
the increment for village safe  water adjusted down from $18                                                                    
million to  $16 million. He noted  that on page 10,  line 14                                                                    
Public  and Community  Transportation  was  reduced from  $1                                                                    
million  to $500,000.  On  page 10,  line  20 the  municipal                                                                    
harbor facility  grant projects were reduced  by $5 million.                                                                    
He  moved to  page 11,  line  26. The  University of  Alaska                                                                    
deferred maintenance was reduced to  $2 million. On page 18,                                                                    
line 20  the Sultana New Ventures  Healthcare Transformation                                                                    
Project was reduced  from $500,000 to $250,000.  On page 19,                                                                    
line  7, the  substance use  disorder service  expansion was                                                                    
reduced to  $12 million.  The appropriation consisted  of $3                                                                    
million  in   general  funds  and   $9  million   in  Alaska                                                                    
Comprehensive  Health  Insurance  (ACHI)  funds  and  was  a                                                                    
supplemental appropriation.                                                                                                     
                                                                                                                                
Representative  Wilson  asked about  page  19,  line 7.  She                                                                    
asked if  the project  was for  2018. Mr.  Labolle responded                                                                    
affirmatively. He reported that all  of the items in Section                                                                    
4 and Section 7 were supplementals.                                                                                             
                                                                                                                                
7:52:01 PM                                                                                                                    
                                                                                                                                
Mr.  Labolle pointed  to  page  23, line  25.  There was  an                                                                    
addition  of  $28 million  for  Medicaid  health care  under                                                                    
Medicaid  services.  He  relayed  that the  addition  was  a                                                                    
reduction from  the amendments adopted the  previous day. He                                                                    
specified that there was a  drafting error in Section 12 for                                                                    
the $18  million that  he had just  mentioned that  had been                                                                    
added twice  and was removed. It  was no longer in  the bill                                                                    
but was  previously in  Section 12  under the  Department of                                                                    
Health and Social Services  (DHSS). The double appropriation                                                                    
had been removed.                                                                                                               
                                                                                                                                
Mr. Labolle  moved to  page 28,  line 24.  There was  a fund                                                                    
transfer of $20 million to  the Alaska Marine Highway System                                                                    
(AMHS), a  supplemental appropriation.  On page 30,  line 26                                                                    
there was an  appropriation of $6 million  to the Department                                                                    
of  Education   and  Early   Development  (DEED)   for  pre-                                                                    
kindergarten  grants. On  page 30,  line 29  the sum  of $20                                                                    
million  was appropriated  to DEED  for the  distribution of                                                                    
grants to schools according to  the average daily membership                                                                    
for  each  district.  On  page  31,  line  2  there  was  an                                                                    
appropriation of $403,400 to DEED  for education support and                                                                    
administrative  services,  state   system  of  support,  and                                                                    
direct crisis  response and supporting costs  for the fiscal                                                                    
year  ending June  30, 2019.  He  noted a  handout had  been                                                                    
distributed  - an  amendment that  provided  clarity to  the                                                                    
issue.                                                                                                                          
                                                                                                                                
Representative  Wilson relayed  that the  document indicated                                                                    
the  funding  was not  for  positions.  Rather, it  was  for                                                                    
existing  employees to  travel to  communities in  crisis to                                                                    
take care of certain things.  Mr. Labolle responded that she                                                                    
was  correct. There  were no  positions associated  with the                                                                    
appropriation.                                                                                                                  
                                                                                                                                
Co-Chair  Foster  recognized  Representative Neuman  in  the                                                                    
room.                                                                                                                           
                                                                                                                                
Mr. Labolle  moved to  the next  item on  page 39,  line 20.                                                                    
There was a reduction from  $4.5 million to $2.5 million for                                                                    
the Knik Arm Crossing Project.                                                                                                  
                                                                                                                                
Co-Chair  Foster   noted  the   $2  million   reduction.  He                                                                    
indicated that there  might be an amendment on  the floor to                                                                    
move the money to the KGB road in the area.                                                                                     
                                                                                                                                
7:55:59 PM                                                                                                                    
                                                                                                                                
Mr.  Labolle advanced  to  page  39, line  27.  There was  a                                                                    
reduction to  the $8 million  for community  assistance down                                                                    
to $4  million. He  advanced to  page 40,  line 9  for House                                                                    
District  1 and  House  District  2. A  sum  of $15,000  was                                                                    
appropriated  to  Department   of  Commerce,  Community  and                                                                    
Economic Development (DCCED) for  grants for volunteering of                                                                    
policing  for purchase  of gas,  gas cards,  decals, radios,                                                                    
and safety equipment. There  were also conforming amendments                                                                    
in the numbers section and in the effective dates.                                                                              
                                                                                                                                
Representative Wilson WITHDREW her OBJECTION.                                                                                   
                                                                                                                                
There being NO OBJECTION,  the proposed committee substitute                                                                    
for CSSB 142(FIN) am was ADOPTED.                                                                                               
                                                                                                                                
Co-Chair Seaton  MOVED to  report HCSCSSB  142 (FIN)  out of                                                                    
Committee with individual recommendations.                                                                                      
                                                                                                                                
Representative  Wilson OBJECTED.  She  thanked the  chairman                                                                    
and  his  staff for  reviewing  the  projects carefully  and                                                                    
making adjustments.  She was closer  to supporting  the bill                                                                    
than  previously,  but  she still  had  concerns  about  the                                                                    
budget increasing  by $31 million  in UGF. She  relayed that                                                                    
there was  a significant  amount of  operating costs  in the                                                                    
capital  budget. However,  there were  certain issues  being                                                                    
taken care  of in the  budget including Medicaid, as  it was                                                                    
the only mechanism  left to do so. Also,  she believed there                                                                    
were things  included that the  state could not  afford. She                                                                    
was aware  the legislature was  used to making  budgets that                                                                    
could be utilized  up to 5 years. She suggested  that in the                                                                    
future, when  the budget was slimmer,  the legislature might                                                                    
look at projects  for 2 years at a time.  It would allow for                                                                    
the legislature  to confirm that  the money was  going where                                                                    
it was supposed to go. She  would be voting in opposition of                                                                    
the bill.                                                                                                                       
                                                                                                                                
Co-Chair  Foster thanked  the  committee for  the work  that                                                                    
went into the capital budget.  While members might not be in                                                                    
complete agreement,  the committee  had made  compromises by                                                                    
adopting some of the amendments  in the committee substitute                                                                    
from the previous  day. They had been  incorporated into the                                                                    
current  committee substitute.  He believed  that ultimately                                                                    
the members all wanted to do  what was best for the State of                                                                    
Alaska.  He  thought  the  capital   budget  would  help  to                                                                    
maintain Alaska's  infrastructure while putting  Alaskans to                                                                    
work  and  supporting a  healthy  Alaskan  economy. He  also                                                                    
thanked  his staff,  Mr.  Paul Labolle,  who  worked on  the                                                                    
capital budget,  and Brodie Anderson, his  support staff. He                                                                    
paid special tribute  to Jane Pierson and  indicated that it                                                                    
would  likely  be her  last  finance  committee meeting.  He                                                                    
thanked her  for all of her  work through many years  at the                                                                    
legislature.                                                                                                                    
                                                                                                                                
Representative Wilson MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Gara,   Grenn,    Guttenberg,   Kawasaki,   Ortiz,                                                                    
Thompson, Foster, Seaton                                                                                                        
OPPOSED: Wilson, Pruitt, Tilton                                                                                                 
                                                                                                                                
The MOTION PASSED (8/3).                                                                                                        
                                                                                                                                
HCS CSSB 142 (FIN) was REPORTED  out of committee with a "do                                                                    
pass" recommendation.                                                                                                           
                                                                                                                                
Co-Chair Seaton  MOVED that  the committee  give Legislative                                                                    
Finance and  Legislative Legal Services the  ability to make                                                                    
technical and conforming changes to SB 142.                                                                                     
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
Co-Chair Foster recessed the meeting  to a call of the chair                                                                    
[note: the meeting never reconvened].                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
8:02:03 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 8:02 p.m.                                                                                          

Document Name Date/Time Subjects
SB 142 HCS SB 242 CS WORKDRAFT v.M.pdf HFIN 5/12/2018 1:30:00 PM
SB 142
SB 242
SB 142 v.M AgencySummary_20180512_1546.pdf HFIN 5/12/2018 1:30:00 PM
SB 142
SB 142 v.M ProjectCompareByAgency_20180512_1549.pdf HFIN 5/12/2018 1:30:00 PM
SB 142
SB 142 v.M ProjectDetailByAgency_20180512_1546.pdf HFIN 5/12/2018 1:30:00 PM
SB 142
SB 142 HCS v.M DEED Backup.pdf HFIN 5/12/2018 1:30:00 PM
SB 142