Legislature(2021 - 2022)ADAMS 519
03/02/2022 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| HB281 || HB282 | |
| Subcommittee Closeout Reports | |
| Department of Labor and Workforce Development | |
| Start | |
| Department of Administration | |
| University of Alaska | |
| Department of Revenue | |
| Department of Family and Community Services | |
| Department of Health | |
| Judiciary | |
| Department of Law | |
| Office of the Governor | |
| Legislature | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 281 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE FINANCE COMMITTEE
March 2, 2022
2:41 p.m.
2:41:33 PM
CALL TO ORDER
Co-Chair Foster called the House Finance Committee meeting
to order at 2:41 p.m.
MEMBERS PRESENT
Representative Neal Foster, Co-Chair
Representative Kelly Merrick, Co-Chair
Representative Dan Ortiz, Vice-Chair
Representative Andy Josephson
Representative Bart LeBon
Representative Sara Rasmussen
Representative Steve Thompson
Representative Adam Wool
MEMBERS ABSENT
Representative Ben Carpenter
Representative Bryce Edgmon
Representative DeLena Johnson
ALSO PRESENT
Corey Alt, Staff, Representative Adam Wool; Ashley Carrick,
Staff, Representative Adam Wool; Ken Alper, Staff,
Representative Adam Wool; Catherine Reardon, Staff,
Representative Andy Josephson; Elise Sorum-Burke, Staff,
Representative Andy Josephson; Remond Henderson, Staff,
Representative Neal Foster.
SUMMARY
HB 281 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 281 was HEARD and HELD in committee for
further consideration.
HB 282 APPROP: MENTAL HEALTH BUDGET
HB 282 was HEARD and HELD in committee for
further consideration.
SUBCOMMITTEE CLOSEOUT REPORTS:
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
DEPARTMENT OF ADMINISTRATION
UNIVERSITY OF ALASKA
DEPARTMENT OF REVENUE
DEPARTMENT OF FAMILY and COMMUNITY SERVICES
DEPARTMENT OF HEALTH
JUDICIARY
DEPARTMENT OF LAW
LEGISLATURE
OFFICE OF THE GOVERNOR
Co-Chair Foster reviewed the agenda for the afternoon
meeting. The committee would be hearing the budget
subcommittee closeout reports for the remaining departments
[see minutes dated 03/01/22 1:30 p.m. for additional
subcommittee closeout reports].
HOUSE BILL NO. 181
"An Act making special appropriations relating to the
American Rescue Plan Act; and providing for an
effective date."
HOUSE BILL NO. 282
"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."
2:40:58 PM
^SUBCOMMITTEE CLOSEOUT REPORTS
2:41:04 PM
^DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
2:41:15 PM
COREY ALT, STAFF, REPRESENTATIVE ADAM WOOL, reviewed the
subcommittee report for the Department of Labor and
Workforce Development:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Department of Labor and Workforce Development submits
the following recommended operating budget for FY 23
to the House Finance Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $20,087.5
Designated General Funds (DGF) $34,839.2
Other Funds $15,911.0
Federal Funds $80,696.6
Total $151,534.3
The Unrestricted General Fund difference from FY 22
Adjusted Base to the House Subcommittee budget
recommendation is an increment of $20,087.5 thousand
of Unrestricted General Funds, which is 12.2 percent
increase from FY 22 Adjusted Base.
Positions:
Permanent Full-time 669
Permanent Part-time 44
Temporary 25
Total 738
BUDGET ACTION HIGHLIGHTS:
The House Finance Budget Subcommittee for the
Department of Labor and Workforce Development held
four meetings with the Department. The Subcommittee
reviewed the 2023 fiscal year budget request and took
the following actions:
Accepts the Governor's amended proposal, and makes
certain additions, modifications, and deletions.
Highlights of the subcommittee's recommended budget
for DOLWD include the following:
Switched several accounts to be funded in FY 23
with unrestricted general fund dollars to
maintain continuity of services given last year's
constitutional budget reserve sweep.
Maintained a Boiler and Pressure Vessel Inspector
1 position set to be cut in the governor's
proposed budget at a cost of $88.3
Declined a request to reduce funding to the Wage
and Hour Administration's printing activities by
$48.2
Added $1,669.2 in authority for the Alaska
Workforce Investment Board to accommodate
anticipated increased federal grant receipt.
Added $100.0 in the Wage and Hour Administration
allocation to fund a new inspector position.
SUBCOMMITTEE RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Department of Labor and Workforce Development
recommends that the Wage and Hour Administration not
proceed with its plan to shift information about wage
and hour law from mandated printed posters posted at
workplaces to online availability. Requiring workers
to go online to learn about their rights presents
unnecessary barriers to that knowledge for some
workers.
Mr. Alt concluded his report.
Co-Chair Foster stated his understanding that the
recommendation from the subcommittee including items
proposed by the governor reflected an increase of $20
million [undesignated general funds (UGF)] or a 12 percent
increase. He noted that the subcommittee had left out some
smaller items. He asked what made up the largest portion of
the $20 million.
Mr. Alt replied that the increase in general funds came
primarily from the fund swaps recommended by the
subcommittee. He explained that after the sweep the
previous year, many of the individual accounts within the
department were empty. He detailed that without switching
the fund source to general funds, it would merely be hollow
funding authority.
^DEPARTMENT OF ADMINISTRATION
2:44:59 PM
ASHLEY CARRICK, STAFF, REPRESENTATIVE ADAM WOOL, reviewed
the subcommittee report for the Department of
Administration:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Department of Administration submits the following
recommended operating budget for FY 23 to the House
Finance Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $71,442.1
Designated General Funds (DGF) $29,022.6
Other Funds $205,371.0
Federal Funds $1,312.5
Total $307,148.2
The Unrestricted General Fund difference from FY 22
Adjusted Base to the House Subcommittee budget
recommendation is an increment of $2708.8 of
Unrestricted General Funds, which is a 3.9 percent
increase from FY 22 Adjusted Base.
Positions:
Permanent Full-time 1,245
Permanent Part-time 7
Temporary 25
TOTAL 1,277
BUDGET ACTION HIGHLIGHTS:
The House Finance Budget Subcommittee for the
Department of Administration held six meetings with
the Department. The Subcommittee reviewed the 2023
fiscal year budget request and took the following
actions:
Accepts the Governor's amended proposal and makes
certain additions and modifications. Highlights of the
subcommittee's recommended budget for DOA include the
following:
Finalized statewide consolidation of accounts
payable and travel expense reimbursement in the
Shared Services of Alaska appropriation for a
total of $586,400.
Added a Department Technology Officer 2 position
totaling $186,600 for the proposed Department of
Family and Community Services.
Declined, at the Department's request, the
authority to accept federal grant monies totaling
$550,000 for grants that were not received by the
Office of Public Advocacy.
Added funding for four support positions in the
Public Defender Agency totaling $428,700 to
address increased sex crime caseloads.
Provide general fund program receipt authority to
spend $400,000 for the Division of Motor Vehicles
to lease a new office space in Fairbanks.
Added $1.5 million to allocate funds for radio
grants to rural stations whose broadcast coverage
areas serve 20,000 people or less.
SUBCOMMITTEE RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Department of Administration additionally recommends
that the Department provide a plan to have the
necessary equipment for producing Alaskan driver's
licenses within the State of Alaska, avoiding the need
to send any personal data of Alaskans overseas for
license preparation.
Ms. Carrick concluded her report and was available for
questions.
Co-Chair Foster noted committee members were missing page 2
on the report. He did not believe there were many items
listed on the second page. He noted one of the items was
public radio. The second page would be provided to members.
^UNIVERSITY OF ALASKA
2:48:34 PM
ASHLEY CARRICK, STAFF, REPRESENTATIVE ADAM WOOL, presented
the subcommittee report for the University of Alaska:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
University of Alaska submits the following recommended
operating budget for FY 23 to the House Finance
Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $285,219.4
Designated General Funds (DGF) $309,490.3
Other Funds $75,116.1
Federal Funds $187,225.9
Total $857,051.7
The Unrestricted General Fund difference from FY 22
Adjusted Base to the House Subcommittee budget
recommendation is an increment of $12,485.9 thousand
of Unrestricted General Funds, which is 4.6 percent
increase from FY 22 Adjusted Base.
Positions:
Permanent Full-time 3,759
Permanent Part-time 185
Temporary 0
Total 3,944
BUDGET ACTION HIGHLIGHTS:
The House Finance Budget Subcommittee for the
University of Alaska held four meetings. The
Subcommittee reviewed the 2023 fiscal year budget
request and took the following actions:
Accepts the Governor's amended proposal and makes
certain additions and modifications. Highlights
of the subcommittee's recommended budget for the
University of Alaska include the following:
Consolidated all University allocations into a
single appropriation.
Accepted the Governor's request to increment
$4 million in General Fund for fixed cost
increases.
Accepted a member amendment to add an additional
$4 million in General Fund for fixed cost
increases to align with the request from the UA
Board of Regents.
Accepted a member amendment to add $3.75 million
in General Fund to support the UAA College of
Health programming for faculty and medical
equipment and technology [at UAA and UAF].
Added $635,900 in General Fund to continue the
Alaska Library Network, including the Alaska
Library Catalog, the Statewide Library Electronic
Doorway, and the Imagination Library.
SUBCOMMITTEE RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
University of Alaska adopted a recommendation to
support an additional increment of $7 million in
General Fund to support mariculture and fisheries
program development.
Ms. Carrick concluded her report.
Co-Chair Foster underscored the $7 million for mariculture
was a recommendation for the full House Finance Committee.
He relayed that any committee member was free to propose an
amendment during the amendment process the following week.
^DEPARTMENT OF REVENUE
2:52:15 PM
KEN ALPER, STAFF, REPRESENTATIVE ADAM WOOL, reported that
the Department of Revenue subcommittee had met five times.
He presented the subcommittee report:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Department of Revenue submits the following
recommended operating budget for FY 23 to the House
Finance Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $27,377.9
Designated General Funds (DGF) $3,176.2
Other Funds $329,233.9
Federal Funds $82,550.4
Total $442,338.4
The Unrestricted General Fund difference from the
FY 23 Adjusted Base to the House Subcommittee budget
recommendation is an increase of $941.3 thousand, or
3.6 percent. The All Funds difference from FY 23
Adjusted Base is an increase of $11,131.7 thousand, or
2.6 percent.
Positions:
Permanent Full-time 826
Permanent Part-time 26
Temporary 18
Total 870
This represents a net increase of seven full time
positions and two part time positions, reflecting the
addition of nine positions and the deletion of zero.
BUDGET ACTION
The House Finance Budget Subcommittee for the
Department of Revenue reviewed the FY 23 budget
request, including amendments proposed by committee
members. They recommend approval of the proposed
budget with a single change that did not impact the
dollar amount:
The Permanent Fund Dividend Division requested a
$2 million increment for a new Dividend Applicant
Identify Verification program. The need for
increased dividend application security was
discussed in an unusual Executive Session at the
February 7 subcommittee meeting. Because the
program is not yet defined, the subcommittee
chose to fund this with a One Time Increment
rather than a permanent increase to the base
budget. It is expected that the Department will
bring a more specific long-term plan to the
legislature for the FY 24 budget cycle.
Following up on a prominent increment from the
FY 22 budget, the Permanent Fund Corporation
received authorization to increase their
performance incentive program from $890.0 to a
maximum of $1,600. The full amount will only be
expended if all investment targets are met. The
Corporation was also authorized to add seven
additional staff.
Mr. Alper noted that the $329.2 million in other funds was
related to Alaska Permanent Fund Corporation (APFC)
management fees. The bulk of the general fund increase was
related to fund shifts. He explained the management costs
for much of the Treasury Division was moved to general
funds due to the sweep. The department's budget included
nine additional employees including seven APFC investment
officers and support staff and two part-time positions in
the Permanent Fund Dividend Division to file and sort
Permanent Fund Dividend (PFD) paper applications. He
highlighted the subcommittee had held an executive session
on February 7 related to PFD application security. He
concluded his report.
Co-Chair Foster noted the committee only had a handful of
reports left. The committee would return after the House
Floor session concluded.
2:56:10 PM
AT EASE
5:39:37 PM
RECONVENED
Co-Chair Foster indicated the committee would hear the
remainder of the finance subcommittee reports.
^DEPARTMENT OF FAMILY and COMMUNITY SERVICES
5:40:04 PM
CATHERINE REARDON, STAFF, REPRESENTATIVE ANDY JOSEPHSON,
reviewed the subcommittee report for the Department of
Family and Community Services which would be a new
department for FY 23:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Department of Health and Social Services submits to
the House Finance Committee the following recommended
FY 23 operating budget for the proposed new Department
of Family and Community Services:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $238,123.4
Designated General Funds (DGF) $25,296.6
Other Funds $97,393.3
Federal Funds $80,639.2
Total $441,452.5
The Unrestricted General Fund difference between FY 23
Adjusted Base and the Subcommittee recommendation is
an increase of $14,992.6, which is 6.7 percent.
Positions:
Permanent Full-time 1,842
Permanent Part-time 16
Temporary 60
Total 1,918
BUDGET ACTION:
The House Finance Budget Subcommittee for the
Department of Health and Social Services reviewed the
Governor's FY 23 budget request including Governor's
amendments.
The structure of the Governor's FY 23 request matched
Executive Order 121, dividing the existing Department
of Health and Social Services into two departments:
the Department of Family and Community Services and
the Department of Health.
Since budget structure is outside the purview of
subcommittees, the actions of the Subcommittee
reflected in this memorandum and the attached reports
address only the budget of the proposed Department of
Family and Community Services. By following the
structure of the Governor's FY 23 request, the
Subcommittee is not endorsing EO 121 or the division
of the department.
The Subcommittee approved the Governor's requested
actions except funding and positions in the
Departmental Support Services appropriation related to
implementation of Executive Order 121.
The Subcommittee modified the Governor's request for
authority to transfer $20 million between
appropriations by reducing the authorized transfer to
$10 million and requiring a year-end report of those
transfers.
The Subcommittee added one increment increasing
funding for implementation of the Alaska Tribal Child
Welfare Compact within the Office of Children's
Services by $1,900.0 UGF.
The major UGF additions to the adjusted base budget
that were requested by the Governor and approved by
the Subcommittee were:
$7,053.0 UGF to Inpatient Mental Health required
by the Disability Law Center Settlement
$1,400.0 UGF to the Office of Children's Services
for the Tribal Child Welfare Compact
$7,226.8 UGF and 31 positions for actions to
increase the ability of the Office of Children's
Services (OCS) to meet its mission. The Governor
submitted this package through amendments in
February. It includes increased funding for youth
in foster care as well as additional staff,
training, supervision, and support to improve the
effectiveness of Front Line Social Workers. The
turnover rate of OCS social workers is 60 percent
which diminishes the assistance given to children
and struggling families who may have to work with
inexperienced social workers or multiple
caseworkers in a single year.
RECOMMENDATIONS:
The Subcommittee makes the following recommendation to
the House Finance Committee:
For budget transparency, the subcommittee
recommends creating a new allocation, the Tribal
Child Welfare Compact, within the Department of
Family and Community Services to reflect the
Office of Children's Services' funding for
purposes of the Compact.
If EO 121 is rejected by the legislature, a
budget structure change is recommended to return
the Division of Behavioral Health to its FY 22
structure by moving the Designated Evaluation and
Treatment allocation from the Inpatient Mental
Health appropriation back to the Behavioral
Health appropriation.
Ms. Reardon elaborated on the first recommendation
pertaining to the Tribal Welfare Compact. The purpose of
the recommendation was to allow visibility as tribal
compacting developed, including the ability for the
legislature to easily track authorized versus actual
expenditures in reports related to tribal compacting. She
concluded her report.
^DEPARTMENT OF HEALTH
5:46:32 PM
CATHERINE REARDON, STAFF, REPRESENTATIVE ANDY JOSEPHSON,
reviewed the subcommittee report for the Department of
Health:
RECOMMENDATIONS
The House Finance Budget Subcommittee for the
Department of Health and Social Services submits to
the House Finance Committee the following recommended
FY 23 operating budget for the proposed new Department
of Health:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $928,134.3
Designated General Funds (DGF) $53,516.8
Other Funds $88,647.1
Federal Funds $1,996,318.5
Total $3,066,616.7
The Unrestricted General Fund difference between FY 23
Adjusted Base and the Subcommittee recommendation is
an increase of $63,648.3 thousand, which is 7.4
percent.
Positions:
Permanent Full-time 1,462
Permanent Part-time 2
Temporary 47
Total 1,511
BUDGET ACTION:
The House Finance Budget Subcommittee for the
Department of Health and Social Services reviewed the
Governor's FY 23 budget request including Governor's
amendments.
The structure of the Governor's FY 23 request matched
Executive Order 121, dividing the existing Department
of Health and Social Services into two departments:
the Department of Family and Community Services and
the Department of Health.
Since budget structure is outside the purview of
subcommittees, the actions of the Subcommittee
reflected in this memorandum and the attached reports
address only the budget of the proposed Department of
Health. By following the structure of the Governor's
FY 23 request, the Subcommittee is not endorsing EO
121 or the division of the department.
A major element of the increase over adjusted base in
the Governor's request is $45 million UGF for the
Medicaid match. In FY 22, state funding of Medicaid
was reduced by $35 million, a reduction which was
achieved through the temporary Covid-emergency
reduction in required state match.
Ms. Reardon elaborated that the 6.2 percent increase in the
federal government share through the Federal Medical
Assistance Percentage (FMAP) to the public health emergency
was scheduled to expire at the end of June 2022. It was
expected the usual Medicaid match would resume in FY 23,
which would require additional funding. The department was
projecting a $72 million UGF shortfall in FY 23. The
governor's $45 million request restored a $35 million
decrement from FY 22 and added an additional $10 million.
She noted it anticipated $27 million in savings through
several savings initiatives and the redetermination of
existing Medicaid enrollees. She highlighted that if the
$27 million in savings was not realized, there was likely
to be a supplemental request the following year. She
continued with the report:
The Subcommittee made technical corrections, then
approved the Governor's requested budget actions with
the following exceptions:
Denied funding and positions in the Departmental
Support Services appropriation related to
implementation of Executive Order 121.
Ms. Reardon elaborated that the subcommittee passed an
amendment providing $500,000 to the commissioner's office
for a contract study into efficiencies or reorganizations
that could achieve benefits if the EO did not take effect.
She continued to review the report:
Modified the Governor's request for authority to
transfer $20 million between appropriations by
reducing the authorized transfer to $10 million,
prohibiting transfers out of the Medicaid
Services appropriation, and requiring a year-end
report of those transfers.
Ms. Reardon noted that the prohibition against transferring
out of Medicaid services was also included in the FY 22
budget. She remarked it was a fairly traditional item to
include in the transfer language. She continued to review
the report:
Denied budget action to reduce funding for
Behavioral Health Treatment and Recovery Grants.
Denied budget action to reduce funding for Public
Assistance staff computers, due to a Subcommittee
amendment increasing eligibility technician
positions.
The Subcommittee made the following additions to the
Governor's request:
Behavioral Health Grants for services that cannot be
covered by federal Medicaid waiver funding
$346.7 (UGF) Prevention and Early Intervention
Grants
$959.5 (UGF) Treatment and Recovery Grants
Ms. Reardon elaborated that the behavioral health grants
were increased by 20 percent after fairly flat funding for
a number of years. A variety of stakeholders including the
Behavioral Health Association and the Alaska Native Health
Board vocalized the need for an increase in funding. She
continued to review the report:
Public Assistance
Eligibility technician positions to reduce
processing delays $652.7 UGF, $679.2 Fed
Ms. Reardon relayed that in the FY 22 budget process the
legislature approved 50 percent of the governor's proposed
reduction of 101 positions and the governor had vetoed the
remaining positions. It was the impression of the
subcommittee that the result had been a backlog in
processing applications for benefits because some of the
technological updates that were supposed to assist did not
come online quickly enough. Additionally, there had been a
computer hack problem. She continued to review the report:
Public Health
Nursing recruitment bonuses and moving expenses
$520.0 UGF
Public Health Specialist position to access
federal BOLD Act funding for dementia programs
$120.0 UGF
Ms. Reardon remarked the nursing recruitment bonuses and
moving expenses were aimed at assisting with the public
health nursing positions that had a large number of
vacancies for an unacceptably long time. She continued to
review the report:
Senior and Disabilities Services
Community Based Grants increment to offset impact
of population increases and inflation on
services:
Senior Services $912.2 UGF
Centers for Independent Living $586.0 UGF
General Relief/Temporary Assisted Living daily
rate increase $3,418.5 UGF
Ms. Reardon expounded that the temporary assisted living
daily rate had been $70/day since 2002. The increment would
increase the daily rate with inflation to $104.30/day. She
continued to review the report:
Intent for department to develop a plan with
stakeholders to eliminate the Intellectual and
Developmental Disabilities waiver waitlist.
Ms. Reardon noted the request for the five-year plan had
been a request by the Key Coalition. She continued to
review the report:
Medicaid
Draw 20 additional disabled Alaskans off the
lengthy waitlist for services through the
Intellectual and Developmental Disabilities
waiver $870.9 UGF, $870.0 Fed.
Intent for department to continue to produce the
annual Medicaid Unrestricted General Fund
Obligation Report (MUGFOR).
Ms. Reardon elaborated that a similar increment had been
included in the FY 22 budget and resulted in 70 rather than
50 individuals being pulled off the 600 person waitlist.
Additionally, the intent language related to the MUGFOR
asked the department to produce the report halfway through
the year in order for the legislature to know what the
Medicaid spend looked like when it convened session in
January. She concluded her presentation.
^JUDICIARY
5:55:32 PM
CATHERINE REARDON, STAFF, REPRESENTATIVE ANDY JOSEPHSON,
presented the subcommittee report for Judiciary:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Judiciary submits the following recommended operating
budget for FY 23 to the House Finance Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $ 120,412.6
Designated General Funds (DGF) $ 518.0
Other Funds $ 2,246.1
Federal Funds $ 975.6
Total $ 124,152.3
The Unrestricted General Fund difference from FY 23
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $ 3,278.5 thousand of
Unrestricted General Funds, which is 2.8 percent above
the FY 23 Adjusted Base budget.
The House Subcommittee converted one part-time
Therapeutic Court probation officer to full-time, as
requested by the Judiciary and reflected in the
Governor's request.
Positions:
Permanent Full-time 740
Permanent Part-time 37
Temporary 5
Total 782
BUDGET ACTION:
The House Finance Budget Subcommittee reviewed the FY
23 budget request from the Judicial Branch as
submitted by the Governor and recommends it be
approved. $80 million UGF has been substituted for $80
million ARPA Revenue Replacement in the Trial Courts
appropriation to reflect the House Baseline and defer
to the House Finance Committee decisions about use of
ARPA funds. The Subcommittee did not reject any
elements of the requested budget or make any
amendments of its own.
Significant Changes from FY 23 Adjusted Base:
$1,195.1 UGF added to return workers to a 37.5 hour
work week from 36 hours. In FY 17, the court system
reduced its regular workweek and staff salaries by 4
percent and reduced Friday customer service counter
hours. In FY 23 a work backlog and demand for
increased customer service hours necessitate returning
some, but not all, staff to 37.5 hours.
$1,241.8 UGF added for annual software
subscriptions to protect the court system's
network and prevent another cybersecurity attack
similar to FY 21. This increment will also allow
parties to share and display trial evidence
through a secure online database, will maintain
software licenses and will augment several
programs.
$136.5 UGF added to Therapeutic Courts to cover
increased costs for treatment services in Palmer,
Kenai, and Anchorage, and to fully fund a
probation officer, testing, and treatment in
Bethel.
$661.5 UGF added for facility leases, utilities,
maintenance, and security costs at the court
system's forty facilities across the state.
Ms. Reardon concluded her presentation.
^DEPARTMENT OF LAW
5:59:21 PM
ELISE SORUM-BURKE, STAFF, REPRESENTATIVE ANDY JOSEPHSON,
reviewed the subcommittee report for the Department of Law:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Department of Law submits the following recommended
operating budget for FY 23 to the House Finance
Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $60,626.5
Designated General Funds (DGF) $ 2,746.7
Other Funds $32,651.4
Federal Funds $ 2,056.2
Total $98,080.8
The Unrestricted General Fund difference from FY 23
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $4,478.9 thousand of
Unrestricted General Funds, which is 4.8 percent above
the FY 23 Adjusted Base budget.
$3,400 thousand of the UGF increase recommended is a
one-time increment for FY 23 and is not built into the
adjusted base budget.
Positions:
Permanent Full-time 550
Permanent Part-time 0
Temporary 0
Total 550
BUDGET ACTIONS:
The House Finance Budget Subcommittee for the
Department of Law reviewed the Governor's FY 2023
budget request including Governor's amendments, and
took the following actions:
The Governor submitted 8 budget action items. The
subcommittee approved all Governor operating budget
items for a total increase of $897.1 thousand in UGF.
Ms. Sorum-Burke elaborated that of the eight actions, six
dealt with fully funding the positions added in FY 22 to
help with prosecutions of sexual assault cases, which were
funded at 75 percent in the FY 22 budget. One item was the
deletion of a project manager position, which the
department no longer needed. The remaining item was a
technical change relating to the naming structure of the
Civil Division. She highlighted that the following four
budget amendments dealt with the retention and recruitment
challenges faced by the department. The subcommittee
acknowledged that the Department of Law attorneys were
partially exempt, and their salaries had not been adjusted
since 2015. Additionally, the subcommittee heard
departmental emphasis on the inability to recruit and
retain quality legal professionals. She continued to review
the report:
SUBCOMMITTEE AMENDMENTS:
The subcommittee adopted the following budget
amendments:
1. The Subcommittee approved an additional $100.0
thousand UGF funding to the Civil Division for
recruitment and retention efforts.
2. The Subcommittee approved an additional $100.0
thousand UGF funding to the Criminal Division for
recruitment and retention efforts.
3. The Subcommittee approved an additional one-
time increment of $1,700.0 thousand UGF in the
Civil Division to provide retention bonuses to
division staff. Bonuses will be provided to staff
who are employed on June 30, 2022 and continue to
be employed on May 31st 2023. Bonuses are to be
allocated as follows: $10,000 for attorney
positions, $5,000 for associate attorneys,
paralegals, investigators, and similar positions,
$3,000 for law office assistants, law office
managers and other general office personnel. It
is not the intent of the legislature to provide
bonuses to the Criminal Division Director or
Deputy Attorney General for the division.
4. The Subcommittee approved an additional one-
time increment of $1,700.0 thousand UGF funding
to provide retention bonuses to department staff
in the Criminal Division. Bonuses will be
provided to staff who are employed on June 30,
2022 and continue to be employed on May 31st
2023. Bonuses are to be allocated as follows:
$10,000 for attorney positions, $5,000 for
associate attorneys, paralegals, investigators,
and similar positions, $3,000 for law office
assistants, law office managers and other general
office personnel. It is not the intent of the
legislature to provide bonuses to the Criminal
Division Director or Deputy Attorney General for
the division.
ADDITIONAL RECOMMENDATIONS:
The House Finance Subcommittee Chair makes the
following additional recommendations:
FY 22 Supplemental Item - Judgment and
Settlements- Seek additional legal guidance prior
to appropriation of the $495,000 needed to pay
settlement costs for the Blanford v Dunleavy
case. The Subcommittee Chair recognizes that
there are conflicting legal analyses of how and
whether settlement expenses should be paid in
this unique case. The Subcommittee encourages the
House Finance committee to seek guidance from the
Legislative Legal division as to whether there
are potential legal ramifications of the
legislature providing funding for this settlement
agreement.
Reject Proposed Multi-year $4 million
Appropriation to Support Statehood Defense. It is
unlikely, based on the amount spent thus far in
FY 22, that additional money will be needed prior
to the end of FY 23. It would be more appropriate
for the Department to utilize the existing $4
million appropriation in whole prior to
requesting additional funding. These funds can be
better used in FY 23 to support recruitment
efforts and retention bonuses for department
staff.
Ms. Sorum-Burke concluded her review of the subcommittee
report.
Co-Chair Foster asked Ms. Sorum-Burke to repeat the total
budget amount for the Department of Law.
Ms. Sorum-Burke replied the amount was $98,080,800.
Co-Chair Foster asked for the total number of positions.
Ms. Sorum-Burke responded, "550."
^OFFICE OF THE GOVERNOR
6:05:02 PM
REMOND HENDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,
reviewed the subcommittee report for the Office of the
Governor:
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the Office
of the Governor submits the following recommended
operating budget for FY 23 to the House Finance
Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $29,393.2
Designated General Funds (DGF) $0.0
Other Funds $3,703.3
Federal Funds $227.8
Total $33,324.3
The Unrestricted General Fund difference from FY 23
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $587.8 thousand of
Unrestricted General Funds, which is 2.0 percent
increase above FY 23 Adjusted Base.
Positions:
Permanent Full-time 155
Permanent Part-time -0-
Temporary 22
Total 177
BUDGET ACTION:
The House Finance Budget Subcommittee for the Office
of the Governor reviewed the FY 23 Governor's budget
request and accepted all the Budget Action items
except the following:
Denied the Governor's request to convert the
Central Services Cost Allocation Rate Smoothing
appropriation to language using lapsing funds.
Instead, funded this item as a one-time FY 23
increment to alleviate reliance on using lapsing
funds.
Mr. Henderson detailed that the increase of $587,800 in
general funds included two major items: $390,000 to align
state election poll workers hourly rate at an increase of
$3.00 and $155,000 for a homeless coordinator for the
Safety Initiative Homeless Program. He concluded his
report.
^LEGISLATURE
6:07:05 PM
REMOND HENDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,
provided the subcommittee report for the Legislature.
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Legislature submits the following recommended
operating budget for FY 23 to the House Finance
Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $68,934.0
Designated General Funds (DGF) $344.9
Other Funds $394.8
Federal Funds $00.0
Total $69,673.7
The Unrestricted General Fund difference from FY 23
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $2,231.0 million of
Unrestricted General Funds, which is 3.3 percent above
the FY 23 Adjusted Base.
Mr. Henderson noted the increase was primarily comprised of
$2 million for legislative per diem. He continued the
report:
Positions:
Permanent Full-time 267
Permanent Part-time 281
Temporary 28
Total 576
BUDGET ACTION:
The House Finance Budget Subcommittee for the
Legislature reviewed the FY 2023 Governor's budget
request, including amendments, and recommends the
following actions:
Deny the Office of the Governor's increment of
$935.2 for performance reviews.
Mr. Henderson remarked that performance reviews were
required by statute but were no longer performed. He
explained the increment was denied annually. The FY 23
budget would be the last time the request would be made. He
continued with the report:
Accept all other Office of the Governor's budget
proposals.
Accept one amendment as proposed by Legislative
Council with the following components:
Established a new Integrated Technology
Services allocation transferring positions
from the Administrative Services allocation
and funding from various allocations.
Established a new Security Services
allocation transferring positions from the
Session Expenses allocation and funding the
Legislative Operating Budget Allocation.
Approved a $100.0 UGF increment in the
Ombudsman allocation.
Mr. Henderson concluded his report.
Co-Chair Foster indicated all of the subcommittee reports
had been reviewed. He had intended to roll out the
committee substitute the following morning; however, due to
the late hour, it was possible it would be the day after.
HB 281 was HEARD and HELD in committee for further
consideration.
HB 282 was HEARD and HELD in committee for further
consideration.
Co-Chair Foster reviewed the schedule for the following
morning.
ADJOURNMENT
6:10:48 PM
The meeting was adjourned at 6:10 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Posted Link to LFD Website for Wednesday 3.2 Mtg Documents.pdf |
HFIN 3/2/2022 1:30:00 PM |
HB 281 |
| HB 281 SubC Reports DCCED Grant to Tourism and Other Businesses Program Summary.pdf |
HFIN 3/2/2022 1:30:00 PM |
HB 281 |