Legislature(2019 - 2020)ADAMS ROOM 519

04/05/2019 01:30 PM FINANCE

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Audio Topic
01:33:17 PM Start
01:34:00 PM HB39 || HB40
01:46:50 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Moved CSSSHB 39(FIN) Out of Committee
+= HB 40 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Moved CSSSHB 40(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                       April 5, 2019                                                                                            
                         1:33 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:33:17 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster called the House Finance Committee meeting                                                                      
to order at 1:33 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Tammie Wilson, Co-Chair                                                                                          
Representative Jennifer Johnston, Vice-Chair                                                                                    
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Andy Josephson                                                                                                   
Representative Gary Knopp                                                                                                       
Representative Bart LeBon                                                                                                       
Representative Kelly Merrick                                                                                                    
Representative Colleen Sullivan-Leonard                                                                                         
Representative Cathy Tilton                                                                                                     
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Brodie Anderson, Staff, Representative Neal Foster;                                                                             
Representative David Eastman.                                                                                                   
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
None                                                                                                                            
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 39     APPROP: OPERATING BUDGET/LOANS/FUNDS                                                                                  
                                                                                                                                
          CSHB39 (FIN)  was REPORTED  out of  committee with                                                                    
          one    "do   pass"    recommendation,   two    "no                                                                    
          recommendation"    recommendations,   and    eight                                                                    
          "amend" recommendations.                                                                                              
                                                                                                                                
HB 40     APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CSHB40 (FIN)  was REPORTED  out of  committee with                                                                    
          seven   "do   pass"   recommendations,   two   "no                                                                    
          recommendation"  recommendations, and  two "amend"                                                                    
          recommendations.                                                                                                      
                                                                                                                                
Co-Chair  Foster  noted the  committee  had  been joined  by                                                                    
Representative Eastman.                                                                                                         
                                                                                                                                
HOUSE BILL NO. 39                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making appropriations  under art.  IX,                                                                    
     sec. 17(c),  Constitution of the State  of Alaska, from                                                                    
     the constitutional  budget reserve fund;  and providing                                                                    
     for an effective date."                                                                                                    
                                                                                                                                
HOUSE BILL NO. 40                                                                                                             
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     capital    expenses   of    the   state's    integrated                                                                    
     comprehensive   mental    health   program,   including                                                                    
     supplemental  appropriations;  and   providing  for  an                                                                    
     effective date."                                                                                                           
                                                                                                                                
1:34:00 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  reported that in  the previous  meeting the                                                                    
committee completed  amendments to the operating  budget and                                                                    
Legislative Finance Division  and Legislative Legal Services                                                                    
had developed  two new committee  substitutes for HB  39 and                                                                    
HB 40 based on the  amendments that were adopted. He thanked                                                                    
both entities for working into  the night to have the drafts                                                                    
before the committee presently.  He appreciated all of their                                                                    
efforts.  He noted  that reports  would be  online once  the                                                                    
committee substitutes were adopted.                                                                                             
                                                                                                                                
1:34:51 PM                                                                                                                    
                                                                                                                                
Co-Chair   Wilson   MOVED   to  ADOPT   proposed   committee                                                                    
substitute  for  HB  39,   Work  Draft  31-GH1905\C  (Bruce,                                                                    
4/3/19) (copy on file).                                                                                                         
                                                                                                                                
Representative Sullivan-Leonard OBJECTED.                                                                                       
                                                                                                                                
1:35:29 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster asked  his staff to review  the changes made                                                                    
from  the prior  committee substitute  to the  new committee                                                                    
substitute.                                                                                                                     
                                                                                                                                
BRODIE   ANDERSON,   STAFF,  REPRESENTATIVE   NEAL   FOSTER,                                                                    
reported  that committee  substitutes for  HB 39  and HB  40                                                                    
reflected all of  the amendments passed by  the committee in                                                                    
the prior two days.  The House Finance committee substitutes                                                                    
for  HB   39  and  HB   40  reflected  a  total   budget  of                                                                    
$10,220,499,500 in  all funds. Of the  total, $4,255,937,300                                                                    
were  unrestricted general  funds  (UGF).  The total  agency                                                                    
operations  portion  (for   day-to-day  operations)  of  the                                                                    
budget was $3,840,761,200 UGF.  The new committee substitute                                                                    
reflected  a reduction  of $86.1  million from  the previous                                                                    
House Finance committee substitute  and was a $113.9 million                                                                    
reduction from the  FY 20 adjusted base.  In statewide items                                                                    
UGF  totaled $415.1  million, a  reduction  of $143  million                                                                    
from  the  FY  20  adjusted   base.  The  total  agency  and                                                                    
statewide operations  had been  reduced by the  committee in                                                                    
the amount of $257 million from the FY 20 adjusted base.                                                                        
                                                                                                                                
1:37:32 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:37:55 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Sullivan-Leonard spoke  to her objection. She                                                                    
appreciated  the  committee's   work.  Although  there  were                                                                    
reductions made,  she felt  they were  not deep  enough. She                                                                    
thought  the  reductions should  have  been  more intent  in                                                                    
nature  to  bring down  the  budget  to a  more  sustainable                                                                    
level. She could not support the bill.                                                                                          
                                                                                                                                
Representative Sullivan-Leonard MAINTAINED her OBJECTION.                                                                       
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Josephson, Johnston, Knopp,  Lebon, Ortiz, Wilson,                                                                    
Foster                                                                                                                          
OPPOSED: Sullivan-Leonard, Tilton, Carpenter, Merrick                                                                           
                                                                                                                                
The MOTION  PASSED (7/4). There being  NO further OBJECTION,                                                                    
Work Draft 31-GH1905\C for HB 39 was ADOPTED.                                                                                   
                                                                                                                                
Co-Chair   Wilson   MOVED   to  ADOPT   proposed   committee                                                                    
substitute  for  HB  40,   Work  Draft  31-GH1901\K  (Bruce,                                                                    
4/3/19) (copy on file).                                                                                                         
                                                                                                                                
Representative Tilton OBJECTED.                                                                                                 
                                                                                                                                
1:40:33 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:40:58 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Tilton MAINTAINED her OBJECTION.                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Josephson, Johnston, Knopp,  Lebon, Ortiz, Wilson,                                                                    
Foster                                                                                                                          
OPPOSED: Tilton, Wilson, Merrick, Sullivan-Leonard                                                                              
                                                                                                                                
The MOTION  PASSED (7/4). There being  NO further OBJECTION,                                                                    
Work Draft 31-GH1901\K for HB 40 was ADOPTED.                                                                                   
                                                                                                                                
1:42:16 PM                                                                                                                    
                                                                                                                                
Co-Chair  Wilson  MOVED  to  report   CSHB39  (FIN)  out  of                                                                    
Committee with individual recommendations.                                                                                      
                                                                                                                                
There being NO further  OBJECTION, CSHB39 (FIN) was REPORTED                                                                    
out of committee with one  "do pass" recommendation, two "no                                                                    
recommendation"    recommendations,   and    eight   "amend"                                                                    
recommendations.                                                                                                                
                                                                                                                                
1:42:51 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:44:39 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  Wilson  MOVED  to  report   CSHB40  (FIN)  out  of                                                                    
committee with individual recommendations.                                                                                      
                                                                                                                                
There being NO further  OBJECTION, CSHB40 (FIN) was REPORTED                                                                    
out of  committee with seven "do  pass" recommendations, two                                                                    
"no   recommendation"  recommendations,   and  two   "amend"                                                                    
recommendations.                                                                                                                
                                                                                                                                
Co-Chair  Foster thanked  the  members and  their staff  for                                                                    
their  work to  develop the  budget in  a timely  manner. He                                                                    
also  thanked   the  staff  from  the   Legislative  Finance                                                                    
Division  and Legislative  Legal Services.  He gave  special                                                                    
thanks  to  David Teal,  Amanda  Ryder,  Megan Wallace,  and                                                                    
Linda Bruce. He also thanked  his staff, Brodie Anderson and                                                                    
Ryan Johnston  for their  work on  the budget.  He indicated                                                                    
Legislative Legal  Services was available to  begin drafting                                                                    
floor amendments  to the operating budget  over the weekend.                                                                    
He  instructed   members  to   use  the   adopted  committee                                                                    
substitutes  to  draft  their amendments  to  the  operating                                                                    
budget.                                                                                                                         
                                                                                                                                
Co-Chair  Wilson  reviewed  the  agenda  for  the  following                                                                    
Monday. The committee would be hearing HB 106 and HB 41.                                                                        
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
1:46:50 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 1:46 p.m.                                                                                          

Document Name Date/Time Subjects
HB 40 CS WORK DRAFTv.K.pdf HFIN 4/5/2019 1:30:00 PM
HB 40
HB 39 CS WORKDRAFT v.C.pdf HFIN 4/5/2019 1:30:00 PM
HB 39
4-4-19 All Funds AgencySummary-5.pdf HFIN 4/5/2019 1:30:00 PM
HB 39
4-4-19 UGF AgencySummary-5.pdf HFIN 4/5/2019 1:30:00 PM
HB 39