Legislature(2019 - 2020)SENATE FINANCE 532
03/20/2020 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB205 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 205 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
March 20, 2020
3:37 p.m.
3:37:51 PM
CALL TO ORDER
Co-Chair von Imhof called the Senate Finance Committee
meeting to order at 3:37 p.m.
MEMBERS PRESENT
Senator Natasha von Imhof, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Lyman Hoffman
Senator Donny Olson
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Pete Ecklund, Staff, Senator Bert Stedman.
PRESENT VIA TELECONFERENCE
SUMMARY
CSHB 205(FIN)(Corrected) am(brf sup maj fld)
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 205(FIN)(Corrected) am(brf sup maj fld) was
HEARD and HELD in committee for further
consideration.
3:38:19 PM
RECESSED
5:35:58 PM
RECONVENED
[Co-Chair von Imhof handed the gavel to Co-Chair Stedman.]
CS FOR HOUSE BILL NO. 205(FIN)(Corrected) am(brf sup maj
fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; making
supplemental appropriations; and providing for an
effective date."
5:36:02 PM
Co-Chair von Imhof informed that the committee would
consider the operating budget and a good portion of the
capital expenditures.
Co-Chair von Imhof MOVED to ADOPT proposed committee
substitute for CSHB 205(FIN)(Corrected) am(brf sup maj
fld), Work Draft 31-GH2197\O (Bruce, 3/20/20).
Co-Chair Stedman OBJECTED for discussion.
5:37:04 PM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, addressed the
document "2020 Legislature - Operating Budget; Agency
Summary - Senate Structure" (copy on file). He noted that
the report would be posted online at the Legislative
Finance Division webpage.
Mr. Ecklund commented that in general, the last official
action the committee had taken was to adopt "CS Zero" which
was the governors proposed budget. He explained that the
current cs was the same document, rearranged in the style
of Legislative Legal and Legislative Finance. He shared
that he would describe some of the high-level changes.
Mr. Ecklund addressed Column 3-1 on page 1 of the document,
2020 Legislature Operating Budget Agency Summary
Senate Structure"(copy on file), which showed total agency
spending for the senate version at approximately $43
million above the governors amended budget, and roughly
$59 million once Statewide Items were added. He estimated
that roughly half of the Capital Budget proposed by the
governor was in the current CS. He specified that the
Federal Highway Aid Match was included.
Mr. Ecklund noted that Report F, 2020 Legislature
Capital Budget Agency Summary Senate Structure,
reflected unrestricted general fund (UGF) spending at
approximately $89 million, roughly half of the figure
proposed by the governor.
5:39:30 PM
Co-Chair Stedman clarified that there was no intent to
delete the other half of the Capital Budget. He commented
that the legislature was constrained for time and would
return in the summer or fall when it was safe to address
the other portion of the capital budget and other financial
necessities.
5:40:17 PM
Mr. Ecklund added that normally there was a subcommittee
closeout process; which had been truncated because of the
COVID-19 virus outbreak. He reiterated that greater detail
could be found after the meeting on the Legislative Finance
Division website.
5:41:04 PM
Mr. Ecklund noted the CS put the entire percent of market
value (POMV) draw of $3.1 billion from the Permanent Fund
into the General Fund. He related that the original bill
had split the amount up with $2 billion going to the
Permanent Fund Dividend (PFD) and $1 billion going to the
General Fund. The CS did not contain inflation-proofing
from the Earnings Reserve Account into the corpus. He noted
that the legislature had previously deposited $4 billion
into the corpus of the fund to satisfy inflation proofing
for the next 4 fiscal years.
Mr. Ecklund continued that under the Department of
Commerce, Community and Economic Development (DCCED), the
appropriation for Power Cost Equalization (PCE) had been
amended, based on the new estimated PCE costs. The CS
removed a $2.8 million appropriation, based on the balance
of the Capstone Avionics fund, and moved the funds to the
Alaska Marine Highway System (AMHS) fund. He furthered that
in the Department of Health and Social Services (DHSS), the
$9.3 million appropriation to the Alaska Psychiatric
Institute (API) had been moved from the language section to
the numbers section of the bill.
Mr. Ecklund detailed that the CS contained was open-ended
federal receipt authority for Medicaid. He knew that the
United States Congress was reacting to the COVID-19 virus
and the addition was in response to their action.
Mr. Ecklund continued to give a high-level overview of the
CS. He related that open-ended receipt authority had been
added in the Department of Labor and Workforce Development
(DOL&WD) for Unemployment Insurance and Workforce Services
to ensure the ability to accept federal receipts.
Mr. Ecklund noted the Reclamation Interest Bond
appropriation had been changed to a single-year
appropriation. He added that $5 million related to fire
risk reduction had been moved from the Capital Budget
language section to the to the numbers section. He said
that an appropriation for special license plate fees had
been added to the Department of Military and Veterans
Affairs (DMVA) to fund maintenance of Veterans memorials.
He stated that the authority to issue revenue anticipation
notes had been removed from the debt section of the bill.
He shared that $2.4 million UGF had been added in Municipal
Debt Reimbursement and the School Bond Debt Reimbursement
had been increased to 100 percent of the required formula,
totaling $101 million. He said that $55 million in debt
service for Oil Tax Credit Bonds had been removed. He
explained that in Federal and Other Program Receipts
language had been clarified to give the Division of
Legislative Budget and Audit authority to approve request
for proposals (RPL).
5:45:02 PM
Mr. Ecklund noted that under fund capitalizations, the
appropriation for the PCE fund earnings had been adjusted
to move $30 million to the Community Assistance Program.
There had been enough in the PCE fund to pay all PCE costs
and fund $30 million to the Community Assistance Program.
Mr. Ecklund stated that an appropriation of $100,000 had
been added to Department of Motor Vehicles (DMV) receipts
to the Abandoned Motor Vehicle fund. The REA fund
contribution had been increased to 100 percent to match the
increase in School Bond Debt Reimbursement, a new total of
$36.7 UGF. He said that the fund transfer for the Passenger
Gambling Tax had been moved to the Capital Income Fund. He
relayed that the location of the Department of Fish and
Game (DF&G) Revenue Bond Redemption Fund balance had been
corrected in the legislation. He noted that salary and
benefit adjustments reflected the approved contract for
firefighters.
Mr. Ecklund noted that there was short-term borrowing
language added to the bill, as well as deficit-filling
language to cover all the appropriations in the CS.
5:47:07 PM
Senator Wielechowski asked about the PFD.
Co-Chair Stedman stated that the dividend was not in the
bill. The committee would address the matter at a later
date.
5:47:48 PM
AT EASE
5:48:18 PM
RECONVENED
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 31-GH2197\O was ADOPTED.
CSHB 205(FIN)(Corrected) am(brf sup maj fld) was HEARD and
HELD in committee for further consideration.
Co-Chair Stedman informed that the bill and accompanying
documents would be posted to BASIS under HB 205.
Co-Chair von Imhof relayed that the meeting the following
day would consider the economic impacts of COVID-19. There
would be multiple stakeholders available for testimony and
committee questions.
Co-Chair Stedman noted that the administration had brought
forward amendments pertaining to the states response to
the virus. The amendments would be considered at a later
date.
ADJOURNMENT
5:50:35 PM
The meeting was adjourned at 5:50 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 205 LDF Agency Summaries.pdf |
SFIN 3/20/2020 9:00:00 AM |
HB 205 |
| HB 205 work draft version O.pdf |
SFIN 3/20/2020 9:00:00 AM |
HB 205 |