Legislature(2021 - 2022)SENATE FINANCE 532
02/04/2022 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB164 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 164 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 4, 2022
9:01 a.m.
9:01:21 AM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 9:01 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Neil Steininger, Director, Office of Management and Budget,
Office of the Governor.
PRESENT VIA TELECONFERENCE
Sylvan Robb, Deputy Commissioner, Department of Health and
Social Services, Juneau.
SUMMARY
SB 164 APPROP: CAP; REAPPROP; SUPP
SB 164 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 164
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making supplemental appropriations;
and providing for an effective date."
9:02:29 AM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, discussed the presentation, "State
of Alaska; Office of Management and Budget; Capital Budget
SB164; Senate Finance Committee; February 4, 2022" (copy on
file). He addressed slide 2, "FY2023 Capital Budget and
Supplemental Overview."
Co-Chair Bishop wondered whether the long trail project was
included in the supplemental requests.
Mr. Steininger replied in the negative, and stated that the
project was a fire hall in Kodiak.
Co-Chair Bishop wondered whether the $50 million sweep on
the annual true-up was included in the requests for the
Department of Transportation and Public Facilities (DOT).
Mr. Steininger replied that DOT generally had more federal
authority in order to accommodate for projects.
9:06:14 AM
Mr. Steininger pointed to slide 3, "Federal Infrastructure
Bill (BIL/IIJA)":
?Enacted November 15, 2021
-year reauthorization of established federal
programs and new programs
?New program details still pending
?Some program funding appropriated in the bill, others
awaiting an FFY22 budget
?State/Local priority projects largely ineligible for
funding
?Federal infrastructure spending established by
federal agencies, not Alaska
?Much less discretionary than recent stimulus: CARES,
CRRSA, ARP
?No project "earmarks"
?Funding flows by formula (apportionment or
allocation) or grants (competitive and discretionary)
?Approximately 60 percent by formula and 40
percent in grants on a national basis
?Congress currently under FFY21 Continuing Resolution
?Final FFY22 funding levels for many established
program still uncertain
?Restriction on "new program starts"
Co-Chair Stedman queried the statutory deadline for
amendments.
Mr. Steininger replied that the statutory deadline was the
thirtieth day of session, so there would be a packet of
amendments by that thirtieth day.
Co-Chair Bishop felt that there may be work required
associated with the thirty day hard stop.
Co-Chair Stedman requested an outline or status to
synchronize the operating budget and capital budget flow.
Mr. Steininger replied that Mr. Baker could present on the
information about the infrastructure bill.
9:10:08 AM
Mr. Steininger pointed to slide 4, "Capital Budget Five
Year Overview FY2019 FY2023." He stated that the slide
included the current proposals.
Co-Chair Stedman requested a breakdown of the sources of
many of the project requests.
Mr. Steininger agreed to provide that information, and
stated that the capital budgets that were enacted in FY 22
were primarily proposed by the administration.
Co-Chair Bishop noted that there were some supplemental
requests that were originally vetoed by the governor.
Mr. Steininger agreed.
Co-Chair Stedman recalled that many of the projects in the
previous years bond package were included on the budget,
but the legislature merely changed the funding source.
9:15:26 AM
Mr. Steininger addressed slide 4, "Capital Budget History
FY2013 FY2023."
Mr. Steininger looked at slide 5, "FY2023 Capital Budget
Snapshot."
Mr. Steininger discussed slide 7, "FY2023 Projects by
Department":
Commerce, Community and Economic Development
1.Alaska Energy Authority -Electrical Emergencies
Program $200.0 UGF
2.Community Block Grants $6,315.0 ($6,250.0 Fed,
$65.0 GF Match)
3.National Petroleum Reserve -Alaska Impact Grant
Program $13,800.0 Fed
4.Inter-Island Ferry Authority $250.0 UGF
5.Alaska Energy Authority -Bulk Fuel Upgrades
$13,000.0 ($7,500.0 Fed, $5,500.0 GF Match)
6.Alaska Energy Authority -Rural Power Systems
Upgrades $20,000.0 ($10,000 Fed, $10,000.0 DGF
PCE)
7.Alaska Energy Authority -Round XIV Renewable
Energy Project Grants (AS 42.45.045) $15,000.0
DGF
Co-Chair Bishop remarked that there was a $1 billion in
bulk fuel upgrades, so there was a high need in rural
Alaska.
Co-Chair Stedman stressed that there was a substantial list
of school deferred maintenance.
9:20:59 AM
Senator Hoffman remarked that the money spent on deferred
maintenance would extend the life of the schools, which
would push the timeline of a new constructed facility out
for several years. Therefore, the dollars spent on school
deferred maintenance was one of the best investments in the
state.
Mr. Steininger continued with slide 7:
8.Alaska Travel Industry Association $5,000.0 Fed
CSLFRF
9.Alaska Energy Authority -Volkswagen Settlement
$400.0 SDPR
10.Named Recipient Grant -Voice of the Arctic Inupiat
$1,000.0 UGF
Senator Hoffman wondered whether the administration had
given attention to advertising of salmon through Alaska
Seafood Marketing Institute (ASMI) along with the funding
for the Alaska Travel Industry Association (ATIA).
Mr. Steininger replied that ASMI would get some
discretionary COVID relief money.
Senator Hoffman wondered whether the funding level would be
the same as the $5 million to ATIA.
Mr. Steininger replied that ASMI had received a $7 million
distribution, but stated that he would provide a total
number distributed to ASMI through the course of the
pandemic.
Co-Chair Stedman stressed that ASMI needed to be examined
because the monumental shift, so they may need more
assistance.
9:25:50 AM
Co-Chair Bishop queried the status of the $5 million
interisland ferry grant from the prior year.
Mr. Steininger agreed to provide that information.
Senator Olson queried the effectiveness of the grant for
the Voice of the Arctic.
Mr. Steininger replied that it was a continuation of a
grant from the previous year. He stated that the program
had done coordination work with other state agencies on
states rights issues in the Arctic Region. He agreed to
provide a status report on the program.
Senator Olson understood that the program was intended to
open more federal lands.
Mr. Steininger looked at slide 8, "FY2023 Projects by
Department":
Commerce, Community and Economic Development
11.City of Palmer Wastewater Treatment Plant
Improvements -Phase II $6,900.0 Fed CSLFRF
12.Economic Recovery Mariculture Incentive Grant
Program $25,000.0 Fed CSLFRF
Environmental Conservation
1.Drinking Water Capitalization Grant Subsidy
$2,900.0 Other (Drinking Water Fund)
2.Clean Water Capitalization Grant Subsidy
$1,000.0 Other (Clean Water Loan Fund)
3.Village Safe Water and Wastewater
Infrastructure Projects: First Time Service
Projects $43,350.0 ($11,700.0 GF Match, $300.0
Other SDPR, $31,350.0 Fed)
4.Village Safe Water and Wastewater
Infrastructure Projects: Expansion, Upgrade, and
Replacement of Existing Service
$28,900.0($7,800.0 Other AHFC Bonds, $200.0
Other SDPR, $20,900.0 Fed)
Co-Chair Bishop wondered whether would be a 40 percent
increase.
Mr. Steininger replied that the 40 percent increase was
inconsistent.
9:30:21 AM
Co-Chair Stedman remarked that many cities were out of
compliance with their wastewater treatment, and stressed
that there needed to be a solution to assist the
communities with that issue.
Senator Olson agreed that there were needed water and
wastewater assistance in communities.
Senator Hoffman requested a list of the communities that
were still on a honeybucket system.
9:35:34 AM
Co-Chair Bishop remarked that there was a ranking list to
determine the severity of the issues in the communities.
Senator Wilson remarked that the Matsu did not have enough
wastewater facilities in their area, so therefore they
overburdened Anchorage.
Co-Chair Bishop stressed that there were needs across the
state.
Mr. Steininger discussed slide 9, "FY2023 Projects by
Department":
Environmental Conservation
5.Fairbanks PM2.5 Nonattainment Area Voluntary
Heating Device Change Out Program $5,684.8 Fed
6.EVOS Impaired Beaches Project $658.4 Other
Exxon Valdez Oil Spill Trust -Civil
Family and Community Services
1.MH: Deferred Maintenance and Accessibility
Improvements $500.0 ($250.0 GF/MH, $250.0 MHTAAR)
2.Reappropriate Capital Projects from Department
Health and Social Services to Department of
Family and Community Service
Mr. Steininger looked at slide 10, "FY2023 Projects by
Department":
Fish and Game
1.Sport Fish Recreational Boating and Angler
Access $3,000.0 ($2,250.0 Fed, $750.0 Fish and
Game Fund)
2.Pacific Coastal Salmon Recovery Fund $4,400.0
Fed
3.Facilities, Vessels, and Aircraft Maintenance,
Repair, and Upgrades $500.0 UGF
4.Endangered Species Act $4,000.0 ($1,750 Fed,
$2,000.0 UGF, $250.0 SDPR)
5.Pacific Salmon Treaty Chinook Fishery
Mitigation $6,400.0 Fed
6.EVOS Kenai Peninsula Cost Share $400.0 Other
Exxon Valdez Oil Spill Trust -Civil
7.EVOS Prince William Sound Pollock and Herring
Interaction $4,129.3 Other Exxon Valdez Oil
Spill Trust -Civil
8.EVOS Mariculture -Marine Mammals $1,660.0 Other
Exxon Valdez Oil Spill Trust -Civil
9.Proceeds of Sale of State-owned Vessels and
Aircrafts $150.0 DGF
10.EVOS Gulf Watch Alaska Herring Research and
Monitoring $1,908.3 Other Exxon Valdez Oil Spill
Trust -Civil
Co-Chair Bishop wondered whether the maintenance costs
would be included in the budget.
Mr. Steininger replied in the affirmative, and stated that
there would be a revenue and expenditure included in the
capital budget.
9:39:32 AM
Senator Hoffman felt that some of the issues facing the
fisheries should be considered in capital line items. He
did not think that the F&G project list reflected a need to
protect Chinook salmon. He thought that there should be
more state "skin in the game" for salmon.
Co-Chair Bishop agreed with Senator Hoffman. He noted that
there was no representative from the Department of Fish and
Game (DFD) to speak to the matter.
Senator Olson said that the biggest issue was the threat of
repercussions from law enforcement after subsistence
fishermen from fishing.
Co-Chair Bishop hoped for a response from the department
going forward.
9:45:27 AM
Mr. Steininger addressed slide 11, "FY2023 Projects by
Department":
Governor
1. Statewide Deferred Maintenance, Renovation,
and Repair $23,880.0 DGF (Capital Income Fund)
Health
1. MH: Home Modification and Upgrades to Retain
Housing $1,150.0 ($1,050.0 DGF MH Trust Reserve,
$100.0 Other MH Trust Authority)
2. MH: Essential Program Equipment $600.0 ($300.0
DGF MH Trust Reserve, $300.0 Other MH Trust
Authority)
3. Emergency Medical Services Match for Code Blue
Project $500.0 GF Match
4. MH: Assistive Technology $500.0 DGF -MH Trust
Reserve
5. Reappropriate Capital Projects from Department
of Health and Social Services to Department of
Health
6. Reappropriate Capital Projects from Office of
the Governor to Department of Health
Senator Wielechowski wondered why the $23.8 million for
deferred maintenance was in the Office of the Governor and
not DOT.
Mr. Steininger said that statewide deferred maintenance was
in one appropriation under the gov budget to allow for
distribution across facilities by different agencies. It
was in the office of the gov because there was no one state
agency that needed the request. He believed a meeting had
been scheduled to discuss the priority process
Senator Wielechowski understood that putting it in the gov
office eliminated "turf fights" over money.
Mr. Steininger replied in the affirmative.
Senator Wielechowski thought there were pros and cons to
the plan. He asked for a listing of where the funds had
been spent since 2018.
9:51:14 AM
Co-Chair Stedman asked for a look into the past few years
so that trends could be seen and the history understood. He
thought that how DOT was funded in FY22 should be looked at
for allocation of federal funds for full transparency.
Senator Wilson asked whether the system OMB currently
operated was part of a new software package.
Mr. Steininger replied that the new management system was
not fully operational and OMB was relying on self-reporting
from agencies. He hoped the new technology would supply
more hard data.
Senator Wilson asked about items 5 and 6 under Health.
Mr. Steininger said that a list could be provided.
Senator Hoffman felt that there was not a place for the
legislature to speak to its priorities for districts. He
spoke of ways that the legislature had dealt with deferred
maintenance in the past. He understood why the governor
would house the entire appropriation in his budget but he
was concerned that it could affect legislature's ability to
prioritize deferred maintenance issues in their
communities.
9:58:54 AM
Mr. Steininger said that the hope was for mediation in the
discussion about the prioritization.
Senator Hoffman stressed that a new governor may not use
the same approach.
Co-Chair Stedman felt that there be an examination of the
determination of the deferred maintenance details and the
history of the budgets.
10:05:36 AM
Senator Olson expressed concern about the general mistrust
of the administration.
Co-Chair Bishop stressed that there needed to be work with
the administration to solve the issue of deferred
maintenance.
10:10:27 AM
Mr. Steininger discussed slide 12, "FY2023 Projects by
Department":
Health
7.Division of Public Assistance E-forms and
Online Noticing $8,000.0 ($4,000.0 Fed, $4,000.0
CSLFRF)
8.Division of Public Assistance Eligibility
System Replacement $23,500.0 ($18,800.0 Fed,
$4,700.0 CSLFRF)
9.Health Record Infrastructure Improvements -
Coronavirus Capital Projects Fund$30,000.0 COVID
Fed
Military and Veterans Affairs
1.State Homeland Security Grant Programs $9,000.0
Fed
2.DMVA Deferred Maintenance, Replacement, and
Renewal $12,000.0 Fed
Senator Wielechowski asked about the phrase, the ability
to readily share health records enables workers and
employers to implement vaccine and testing requirements.
Mr. Steininger deferred to Ms. Robb for more information.
Senator Wilson stressed that he also wanted information
about health exchange services.
10:14:36 AM
SYLVAN ROBB, DEPUTY COMMISSIONER, DEPARTMENT OF HEALTH AND
SOCIAL SERVICES, JUNEAU (via teleconference), explained
that there was work currently underway to meet the
requirements for funds for the Coronavirus capital funding.
She explained the requirements for use of that fund.
Senator Wilson stated that he would follow up on the reason
for the $30 million price tag.
Senator Wielechowski wanted to know the exact functioning
of the program.
Ms. Robb replied that people would on be able to access
health information. The program was to connect all the
electronic health systems in the state.
Senator Wielechowski stated that the intention of the
program as listed was the opposite of Ms. Robbs
explanation.
Ms. Robb replied that people have the ability to have the
ability to access their own health records.
Senator Wilson felt like the justification of COVID funds
was being used to fund an old program.
Mr. Steininger replied that there was an effort to find
existing projects that would meet the requirements.
10:21:08 AM
AT EASE
10:22:02 AM
RECONVENED
Co-Chair Bishop discussed committee business.
SB 164 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:22:58 AM
The meeting was adjourned at 10:22 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 020422 OMB Capital Budget Overview SFIN v2.0.pdf |
SFIN 2/4/2022 9:00:00 AM |