Legislature(2021 - 2022)SENATE FINANCE 532
04/28/2022 01:00 PM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB281 || HB282 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 281 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 28, 2022
2:20 p.m.
2:20:13 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 2:20 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
ALSO PRESENT
Pete Ecklund, Staff, Senator Bert Stedman.
PRESENT VIA TELECONFERENCE
Cori Mills, Special Assistant, Office of the Attorney
General, Department of Law.
SUMMARY
CSHB 281(FIN) am(brf sup maj fld)(efd fld)
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 281(FIN) am(brf sup maj fld)(efd fld) was
HEARD and HELD in committee for further
consideration.
CSHB 282(FIN)
APPROP: MENTAL HEALTH BUDGET
CSHB 282(FIN) was HEARD and HELD in committee for
further consideration.
CS FOR HOUSE BILL NO. 281(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; and making capital appropriations,
supplemental appropriations, and reappropriations."
CS FOR HOUSE BILL NO. 282(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
2:20:54 PM
Co-Chair Stedman relayed that the committee would consider
amendments but would not be moving a bill.
2:21:14 PM
AT EASE
2:21:33 PM
RECONVENED
Co-Chair Bishop MOVED to ADOPT Amendment 22, 32-GH2686\L.18
(Marx, 4/26/22) (copy on file).
Co-Chair Stedman OBJECTED for discussion.
2:21:54 PM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, spoke to the
amendment. The amendment pertained to a 50/50 dividend,
which would take the roughly $3.3 billion percent of market
value (POMV) payout from the Earnings Reserve Account (ERA)
and would place half in the General Fund and half in the
Dividend Fund.
Senator Wilson thanked the committee for adopting the
amendment.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 22 was
ADOPTED.
2:22:52 PM
Co-Chair Bishop MOVED to ADOPT Amendment 23.
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that the amendment related to sport
fisheries in the Department of Fish and Game. He noted that
the chairs office and Senator Hoffman's office had been in
discussion with the department over the previous weeks. The
amendment would add back federal, Unrestricted General Fund
(UGF) and Fish and Game Fund sources to the Sport Fisheries
appropriation to match what the governors introduced
budget was for Sport Fisheries. He noted that funding for
hatcheries that were to be in a separate appropriation.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 23 was
ADOPTED.
Co-Chair Bishop MOVED to ADOPT Amendment 24, 32-GH2686\L.16
(Marx, 4/26/22 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Co-Chair Bishop spoke to the amendment and explained that
it was at the request of the Department of Labor and
Workforce Development. The amendment would simply switch
fund sources, with a decrement of $1 million to the Alaska
Vocational Technical Center (AVTEC) and a $1 million
towards the State Training and Employment Program (STEP).
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 24 was
ADOPTED.
Co-Chair Bishop MOVED to ADOPT Amendment 25, 32-GH2686\L.17
(Marx, 4/26/22) (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that there was a provision in the
bill that took any revenue above $100/bbl of oil and placed
it within the corpus of the Permanent Fund. He recounted
that after discussion with the Office of Management and
Budget (OMB), the Department of Revenue (DOR) and the
Legislative Finance Division (LFD), it was decided to write
the concept differently. The amendment made it clearer that
any UGF revenue in FY 23 above $8,225,000,000 (from roughly
$100/bbl of oil) would go to the corpus of the Permanent
Fund.
Co-Chair Stedman clarified that the amendment proposed a
new mechanism that would enable unexpected spikes in
revenue due to high oil prices to be transferred to the
Permanent Fund and the fund would pay out 5 percent per
year in perpetuity.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 25 was
ADOPTED.
2:26:23 PM
Co-Chair Bishop MOVED to ADOPT Amendment 26, 32-GH2686\L.22
(Marx, 4/28/22) (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund spoke to the amendment, which proposed to
change the Revised Program Legislative (RPL) language that
was in the budget. He read the list of items starting on
line 6 that could not be taken to the Legislative Budget
and Audit (LBA) Committee as an RPL: any additional
receipts received by the Alaska Gasline Development
Corporation (AGDC), federal receipts related to broadband,
and Coronavirus State and Local Fiscal Recovery Funds
(SLFRF).
Mr. Ecklund explained that the broadband item was included
as it was a more discretionary item and was in the
Infrastructure Investment and Jobs Act (IIJA). He explained
that the SLFRF funds had been expended in the budget and
had been used as revenue replacement for the states
savings. He discussed potential veto of the funds and
rationale for listing the SLFRF funds, which were
considered discretionary in nature, and excluded from the
RPL process.
Mr. Ecklund continued addressing the amendment. He
explained that the amendment would additionally prohibit
the RPL process for any funds appropriated by the 117th
Congress or 118th Congress related to climate or energy,
funds for coronavirus disease or economic recovery, or
expenditures natural gas pipeline. Further, any item
greater than 10 million could not be considered by the LBA
Committee. He clarified that under the proposed amendment
any federal pass-through money to communities would be able
to go before the LBA Committee.
Senator Wielechowski asked about line 22, which pertained
to an appropriation for a federal pass-through funds to a
community. He asked if the item applied to multiple
communities.
Mr. Ecklund answered in the affirmative.
Senator Wilson asked if the amendment would include or
exclude the loan amounts for AGDC. He asked about AGDCs
current authorized receipts.
Mr. Ecklund did not recall the authorized budget for AGDC.
He clarified that the amendment would not allow AGDC to go
in front of the LBA Committee to increase any
appropriations that would go to the corporation.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 26 was
ADOPTED.
2:30:25 PM
AT EASE
2:33:37 PM
RECONVENED
Co-Chair Bishop MOVED to ADOPT Amendment 27, 32-GH2686\L.21
(Marx, 4/27/22) (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund spoke to Amendment 27 and explained that it
would increase the appropriation for statehood defense
currently in the budget by $1 million. The current
appropriation included $2 million, with $500,000 for the
Tongass National Forest and $1.5 million for other issues
across the state. Adoption of the amendment would bring the
total to $3 million.
Senator Wielechowski asked if there was anyone from the
Department of Law online to answer questions.
Co-Chair Stedman stated "no," and asked if Senator
Wielechowski would like to try to find an available
testifier from the department.
Senator Wielechowski was interested in hearing how the
department intended to use the additional $1 million
proposed in the amendment.
2:34:58 PM
AT EASE
2:35:26 PM
RECONVENED
Co-Chair Stedman explained that he would move Amendment 27
down the calendar.
Co-Chair Bishop MOVED to ADOPT Amendment 28, 32-GH2686\L.20
(Marx, 4/27/22) (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that there had been a contractual
settlement agreement between the state and the Marine
Engineers Beneficial Association (MEBA). The amendment
proposed to appropriate a 3 percent lump sum in FY 22 for
MEBA members, while FY 23, FY 24, and FY 25 were still
being negotiated.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
2:36:49 PM
AT EASE
2:37:02 PM
RECONVENED
Co-Chair Stedman MOVED to ADOPT Amendment 29 (copy on
file).
Senator Wielechowski OBJECTED for discussion.
Mr. Ecklund spoke to Amendment 29. He explained that the
amendment would approve approximately $1.8 million for the
Kenai Dispatch Center (KDC) under the Department of Public
Safety. He furthered that the dispatch center was in the
Alaska State Troopers appropriation, in an allocation
called dispatch services. The amendment proposed to
approve $1.8 million for the KDC, and the latter part of
the amendment would delete $1 million from the total
appropriation for dispatch services.
2:38:03 PM
AT EASE
2:39:42 PM
RECONVENED
Co-Chair Stedman asked if there was further discussion on
Amendment 29.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
2:40:15 PM
AT EASE
2:41:01 PM
RECONVENED
Co-Chair Bishop MOVED to ADOPT Amendment 27.
Co-Chair Stedman OBJECTED for discussion. He asked for Ms.
Mills to describe the need for an extra $1 million for the
Department of Law.
2:41:35 PM
CORI MILLS, SPECIAL ASSISTANT, OFFICE OF THE ATTORNEY
GENERAL, DEPARTMENT OF LAW (via teleconference), spoke to
Amendment 27. She expressed her appreciation for the
amendment being brought forward. She explained that there
were about 7 existing cases that were being funded with the
$4 million multi-year appropriation the department received
the previous year. Based on prior cases that were similar
in kind, the cases were anticipated to take up about $3.5
million. She continued that there was a slate of 11 to 12
anticipated cases that were likely to be brought in the
next year or year and a half, based on ongoing actions in
the federal government, which were estimated to cost a
total of $10 million. She commented on the unpredictable
time horizon with litigation, and the ability to move
forward on cases with resources rather than necessitating a
supplemental request.
Senator Wielechowski asked how many attorneys there were in
the Department of Law.
Ms. Mills cited that there were around 143 attorney
positions in the department. There were approximately 120
filled positions in the department.
Senator Wielechowski asked if the intent was to use in-
house assistant attorneys general for the cases or use the
funds for outside counsel.
Ms. Mills stated that the department was viewing the
proposed funding as additional money for the 30 percent
increase in cases. Some of the amount would be for in-house
costs. There were also three outside counsel contracts that
were doing a large amount of the work. She noted that the
department would not be adding any positions with the
funds, rather the funds were meant to capture the overflow
due to the current increase. She summarized that the
department hoped the load would decrease as some of the
issues were managed and case law was established so that
going forward the federal government would negotiate issues
outside a courtroom.
2:45:15 PM
Senator Wielechowski asked what issues the department
intended to litigate with the additional funds.
Ms. Mills listed topics of cases the department would
litigate including navigability, submerged lands, R2477
cases, Clean Water Act cases, the definition of waters of
the United States, and issues with the Endangered Species
Act. She mentioned the Ringed Seal, the Ice Seal, and
Archipelago Wolves.
Senator Wielechowski asked if Ms. Mills had anticipated
spending another $10 million.
Ms. Mills mentioned the current 7 cases and the 10 to 11
additional anticipated cases pertaining to federal natural
resources, which would use the funding as a primary source
or as overflow depending upon the status of existing
historical funding sources.
Co-Chair Stedman asked about the hourly rate being paid to
outside attorneys on the cases.
Ms. Mills estimated that the rate was in the range of $400
to $450 per hour.
Senator Wielechowski asked if the department would be back
requesting an additional $10 million supplemental if it was
given the additional $1 million proposed in the amendment.
Ms. Mills hoped the department would not have to come back
for a supplemental budget request. She hoped that the funds
proposed in the amendment would provide the monies needed
through to the next year. She anticipated that the
additional $4 million from the previous year would be spent
fairly quickly. She thought the additional $2 million in
funding would be a good buffer for the cases that were
anticipated. She presumed that if all the cases went
through to conclusion and appeal, the department would
likely have to request additional funds for a multi-year
appropriation.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 27 was
ADOPTED.
2:49:14 PM
AT EASE
2:49:49 PM
RECONVENED
Co-Chair Stedman thanked everyone for coming to the
meeting.
ADJOURNMENT
2:50:10 PM
The meeting was adjourned at 2:50 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 281 Amendment Packet 042822.pdf |
SFIN 4/28/2022 1:00:00 PM |
HB 281 |