Legislature(2023 - 2024)SENATE FINANCE 532

04/20/2023 01:30 PM Senate FINANCE

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01:34:22 PM Start
01:36:15 PM Public Testimony: Fairbanks, Interior, and Copper River Valley
03:05:16 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
For Fairbanks, Interior, & Copper River Valley
Please Sign Up by 2:45 pm
-- Please Note Time Change --
+= HB 39 APPROP: OPERATING BUDGET/LOANS/FUND; SUPP TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+= HB 41 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+= SB 41 APPROP: CAPITAL/SUPPLEMENTAL TELECONFERENCED
Heard & Held
-- Public Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
                 SENATE FINANCE COMMITTEE                                                                                       
                      April 20, 2023                                                                                            
                         1:34 p.m.                                                                                              
                                                                                                                                
                                                                                                                                
1:34:22 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  Stedman   called  the  Senate   Finance  Committee                                                                    
meeting to order at 1:34 p.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
Senator Donny Olson, Co-Chair                                                                                                   
Senator Bert Stedman, Co-Chair                                                                                                  
Senator Click Bishop                                                                                                            
Senator Jesse Kiehl                                                                                                             
Senator Kelly Merrick                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator David Wilson                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
David Pruhs, Mayor, City of Fairbanks, Juneau                                                                                   
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kara  Carlson,   Interior  Alaska  Center   for  Non-Violent                                                                    
Living, Fairbanks; Rachel Lebby,  Interior Alaska Center for                                                                    
Non-Violent  Living,  Fairbanks;  Gretta  Johnson,  Interior                                                                    
Alaska  Center   for  Non-Violent  Living,   Fairbanks;  Ana                                                                    
Barbosa,  Interior  Alaska  Center for  Non-Violent  Living,                                                                    
Fairbanks;  Eric  Troyer,  Fairbanks  Cycle  Club,  Interior                                                                    
Trails Preservation  Coalition, Fairbanks;  Jeremey Johnson,                                                                    
Greater  Fairbanks Chamber  of  Commerce, Fairbanks;  Marsha                                                                    
Thomason, Self, Fairbanks;  Angel Stickman, Self, Fairbanks;                                                                    
Jim  Williams,  Fairbanks  North  Star  Borough,  Fairbanks;                                                                    
Bryant  Wright,  Self,  Fairbanks;  Leigh  Bollin,  Resource                                                                    
Center   for   Parents   and  Children,   Fairbanks;   Katie                                                                    
McClellan, Northern Alaska  Environmental Center, Fairbanks;                                                                    
Christin   Swearingen,   Self,   Fairbanks;   Ryan   Hinton,                                                                    
Transportation  Director,   Fairbanks  North   Star  Borough                                                                    
School  District,  Fairbanks;   Brenda  McFarland,  City  of                                                                    
Fairbanks,  Fairbanks;  Sarah   Lefebvre,  Self,  Fairbanks;                                                                    
Howard  Rixie, North  Pole  Community  Chamber of  Commerce,                                                                    
North Pole;  Lorali Simon, Usibelli Coal  Mine, Healy; David                                                                    
van   den  Berg   Executive  Director,   Fairbanks  Downtown                                                                    
Association,  Fairbanks;   Bernie  Karl,   Self,  Fairbanks;                                                                    
Chandra Caffroy,  Self, Anchor Point; Virginia  Mckee, Self,                                                                    
Two Rivers; Mary Callaway, Self,  Two Rivers; Herman Morgan,                                                                    
Self, Aniak; Gaye Wright, Self, Two Rivers                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 41                                                                                                                           
          APPROP: CAPITAL/SUPPLEMENTAL                                                                                          
                                                                                                                                
          SB 41 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CSHB 39(FIN) am(brf sup maj fld)(efd fld)                                                                                       
         APPROP: OPERATING BUDGET/LOANS/FUND; SUPP                                                                              
                                                                                                                                
          CSHB 39(FIN)) was HEARD and HELD in committee for                                                                     
          further consideration.                                                                                                
                                                                                                                                
CSHB 41(FIN) am                                                                                                                 
          APPROP: MENTAL HEALTH BUDGET                                                                                          
                                                                                                                                
          CSHB 41(FIN) am was HEARD and HELD in committee                                                                       
          for further consideration.                                                                                            
                                                                                                                                
PUBLIC  TESTIMONY:  FAIRBANKS,  INTERIOR, and  COPPER  RIVER                                                                    
VALLEY                                                                                                                          
                                                                                                                                
Co-Chair Stedman  discussed the agenda. He  relayed that the                                                                    
committee  would consider  public  testimony  for the  three                                                                    
bills on  the agenda simultaneously. He  asked testifiers to                                                                    
limit comments to  two minutes in length.  He requested that                                                                    
testifiers  confine comments  to the  subject matter  of the                                                                    
bills.                                                                                                                          
                                                                                                                                
CS FOR HOUSE BILL NO. 39(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;   repealing                                                                    
     appropriations;    amending   appropriations;    making                                                                    
     reappropriations;      and     making      supplemental                                                                    
     appropriations."                                                                                                           
                                                                                                                                
CS FOR HOUSE BILL NO. 41(FIN) am                                                                                              
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
SENATE BILL NO. 41                                                                                                            
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations   and   other   appropriations;   making                                                                    
     supplemental  appropriations; making  appropriations to                                                                    
     capitalize  funds;  and   providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
^PUBLIC  TESTIMONY: FAIRBANKS,  INTERIOR,  and COPPER  RIVER                                                                  
VALLEY                                                                                                                        
                                                                                                                                
                                                                                                                                
1:36:15 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman handed the gavel to Senator Bishop.                                                                            
                                                                                                                                
1:36:49 PM                                                                                                                    
                                                                                                                                
DAVID PRUHS, MAYOR, CITY OF  FAIRBANKS, JUNEAU, supported $3                                                                    
million  in  funding  for  the  demolition  of  the  Polaris                                                                    
Building.  He  recounted  that  in  2018  and  Environmental                                                                    
Protection Agency  report had identified $2.3  million worth                                                                    
of  contamination  in the  building.  The  project had  been                                                                    
originally funded at $10 million;  however, the original EPA                                                                    
survey  had not  looked  for PCB  contaminates. He  lamented                                                                    
that the discovery  of PCB contaminations in  the paint used                                                                    
on the structure  had raised the expense of  the project. He                                                                    
said  that  the  borough  and  the  federal  government  had                                                                    
invested in  the project but  that state dollars  would also                                                                    
be  necessary. He  relayed that  plan for  project execution                                                                    
and reiterated his request for the additional funding.                                                                          
                                                                                                                                
1:40:11 PM                                                                                                                    
                                                                                                                                
KARA  CARLSON,   INTERIOR  ALASKA  CENTER   FOR  NON-VIOLENT                                                                    
LIVING, FAIRBANKS  (via teleconference),  spoke in  favor of                                                                    
funding  for the  Council on  Domestic  Violence and  Sexual                                                                    
Assault (CDVSA)  in the Department  of Public  Safety (DPS).                                                                    
She expressed  appreciation for  one-time funding  but cited                                                                    
increased  costs  of  providing  services  to  victims.  She                                                                    
supported  increases   in  the  Mental  Health   Budget  for                                                                    
beneficiaries and  the increase in funding  for the Homeless                                                                    
Assistance  Program and  the Special  Needs Housing  Grants.                                                                    
She discussed  the need for additional  work around violence                                                                    
prevention and offender accountability programing.                                                                              
                                                                                                                                
1:42:15 PM                                                                                                                    
                                                                                                                                
RACHEL  LEBBY,   INTERIOR  ALASKA  CENTER   FOR  NON-VIOLENT                                                                    
LIVING, FAIRBANKS (via  teleconference), supported increased                                                                    
funding  for  victim's   services.  She  specifically  sited                                                                    
funding  for  prevention  programs.   She  spoke  of  school                                                                    
outreach  programming  and  veteran outreach  programs.  She                                                                    
stressed  that   prevention  programs  helped   to  decrease                                                                    
violence overtime.                                                                                                              
                                                                                                                                
1:44:29 PM                                                                                                                    
                                                                                                                                
GRETTA  JOHNSON,  INTERIOR  ALASKA  CENTER  FOR  NON-VIOLENT                                                                    
LIVING, FAIRBANKS  (via teleconference),  spoke in  favor of                                                                    
funding for  victim's services in  CDVSA. She  discussed use                                                                    
of resources  and providing materials to  people in Interior                                                                    
Alaska. She supported an increase  in funding for salary and                                                                    
wages for people in the  field. She encouraged the committee                                                                    
to move  the $3  million, one-time  increment into  the base                                                                    
funding for the CDVSA grant  fund. She thanked the committee                                                                    
for the work to address  the issues of prevention and victim                                                                    
services.                                                                                                                       
                                                                                                                                
1:47:14 PM                                                                                                                    
                                                                                                                                
ANA BARBOSA, INTERIOR ALASKA  CENTER FOR NON-VIOLENT LIVING,                                                                    
FAIRBANKS  (via  teleconference),  testified in  support  of                                                                    
funding for victims' services in  CDVSA. She addressed staff                                                                    
retention and resources.  She urged an increase  in funds to                                                                    
boost  retention and  morale in  the agency.  She reiterated                                                                    
the  need for  additional funding  for prevention  programs.                                                                    
She expressed support for the increases in HB 41.                                                                               
                                                                                                                                
1:49:23 PM                                                                                                                    
                                                                                                                                
ERIC   TROYER,  FAIRBANKS   CYCLE   CLUB,  INTERIOR   TRAILS                                                                    
PRESERVATION  COALITION,   FAIRBANKS  (via  teleconference),                                                                    
spoke  in  support of  funding  for  the Alaska  Long  Trail                                                                    
Project  in the  Capital Budget.  He shared  that the  trail                                                                    
would  connect  Fairbanks  and   Seward  and  would  attract                                                                    
tourist while encouraging Alaskans to get outdoors.                                                                             
                                                                                                                                
1:51:53 PM                                                                                                                    
                                                                                                                                
JEREMEY  JOHNSON,  GREATER  FAIRBANKS CHAMBER  OF  COMMERCE,                                                                    
FAIRBANKS (via teleconference), testified  in support of the                                                                    
state assuming  primacy over the  404 Program.  He supported                                                                    
the  Department   of  Environmental   Conservation  assuming                                                                    
control  of  the program.  He  asserted  that the  delay  in                                                                    
permitting had  negatively affected the economic  climate of                                                                    
the  state.  He  supported  funding  to  help  demolish  the                                                                    
Polaris building in Fairbanks.                                                                                                  
                                                                                                                                
1:53:07 PM                                                                                                                    
                                                                                                                                
MARSHA  THOMASON,  SELF,   FAIRBANKS  (via  teleconference),                                                                    
spoke  in  support of  HB  39  and  HB  41 as  written.  She                                                                    
supported an  additional $2 million for  Homeless Assistance                                                                    
Grants and  $750 thousand for Special  Needs Housing Grants.                                                                    
She mentioned  the Crisis Now  model and felt  the Fairbanks                                                                    
community was starting  to feel like they  had the resources                                                                    
to  provide  quality care.  She  supported  funding for  the                                                                    
demolition of the Polaris Building in Fairbanks.                                                                                
                                                                                                                                
1:55:06 PM                                                                                                                    
                                                                                                                                
ANGEL  STICKMAN,   SELF,  FAIRBANKS   (via  teleconference),                                                                    
testified  in  opposition  to the  $5  million  in  proposed                                                                    
funding  for  taking  over  the  404  Primacy  Program.  She                                                                    
believed that the change would  further damage water quality                                                                    
and salmon stock.                                                                                                               
                                                                                                                                
1:56:29 PM                                                                                                                    
                                                                                                                                
JIM WILLIAMS,  FAIRBANKS NORTH STAR BOROUGH,  FAIRBANKS (via                                                                    
teleconference), spoke  in favor  of the  proposed Operating                                                                    
Budget. He spoke  to several CAPSIS requests  in the Capital                                                                    
Budget  that  would provide  resources  for  a newly  formed                                                                    
service  area in  the Fairbanks  area. He  relayed that  the                                                                    
Fairbanks  North Star  Borough  was on  the  cusp of  making                                                                    
budget decisions  that hinged  on the  increase to  the base                                                                    
student allocation (BSA).                                                                                                       
                                                                                                                                
1:58:42 PM                                                                                                                    
                                                                                                                                
BRYANT   WRIGHT,  SELF,   FAIRBANKS  (via   teleconference),                                                                    
testified in  support of funding  for the Alaska  Long Trail                                                                    
project.  He   shared  that  the  community   supported  the                                                                    
project. He  noted that the  trail should be a  priority and                                                                    
had statewide, national, and international significance.                                                                        
                                                                                                                                
2:01:24 PM                                                                                                                    
                                                                                                                                
LEIGH  BOLLIN, RESOURCE  CENTER  FOR  PARENTS AND  CHILDREN,                                                                    
FAIRBANKS (via teleconference), spoke  in support of funding                                                                    
for  CDVSA. She  appreciated  the one-time  increment of  $3                                                                    
million in  general funds  and the  $3.5 million  in federal                                                                    
appropriations  and  hoped  that the  one-time,  $3  million                                                                    
increment could  be moved  into the  base funding  for CDVSA                                                                    
grants. She that the six  staff members saw 400 children per                                                                    
year. She requested additional funds to increase staffing.                                                                      
                                                                                                                                
2:03:00 PM                                                                                                                    
                                                                                                                                
KATIE  MCCLELLAN,  NORTHERN   ALASKA  ENVIRONMENTAL  CENTER,                                                                    
FAIRBANKS (via  teleconference), testified in  opposition to                                                                    
the proposed  $5 million appropriation for  404 primacy. She                                                                    
contended  that DEC  was already  understaffed  and did  not                                                                    
have the resources to effectively take over the program.                                                                        
                                                                                                                                
2:04:54 PM                                                                                                                    
                                                                                                                                
CHRISTIN SWEARINGEN,  SELF, FAIRBANKS  (via teleconference),                                                                    
spoke in opposition  of funding for DEC's plan  to take over                                                                    
the Clean Water Act 404  permitting program from the federal                                                                    
government. She  recounted work  on beluga  whale population                                                                    
in  Cook   Inlet.  She  feared   that  if  the   state  took                                                                    
responsibility for  the program the beluga  population would                                                                    
not  be prioritized  over the  fast-tracking of  development                                                                    
projects.                                                                                                                       
                                                                                                                                
2:06:26 PM                                                                                                                    
                                                                                                                                
RYAN HINTON,  TRANSPORTATION DIRECTOR, FAIRBANKS  NORTH STAR                                                                    
BOROUGH  SCHOOL  DISTRICT, FAIRBANKS  (via  teleconference),                                                                    
testified in  support of funding for  school transportation.                                                                    
He  discussed  the  driver  shortage  in  his  district.  He                                                                    
thought  state  funding  for  transportation  had  not  been                                                                    
adjusted  for inflation  in over  8 years.   He  feared that                                                                    
reducing  drivers  and spending  due  to  lack of  resources                                                                    
would  negatively  affect   student  transportation  in  the                                                                    
district.                                                                                                                       
                                                                                                                                
Senator Bishop  asked Mr.  Hinton to  contact his  office to                                                                    
set up a time for discussion.                                                                                                   
                                                                                                                                
2:08:30 PM                                                                                                                    
                                                                                                                                
BRENDA   MCFARLAND,  CITY   OF  FAIRBANKS,   FAIRBANKS  (via                                                                    
teleconference),  testified  in  support  of  mental  health                                                                    
funding  in both  the Operating  and Mental  Health Budgets.                                                                    
She cited  that Fairbanks  needed the  funds to  support the                                                                    
behavioral health crisis in Fairbanks.                                                                                          
                                                                                                                                
2:09:43 PM                                                                                                                    
                                                                                                                                
SARAH LEFEBVRE, SELF,  FAIRBANKS (via teleconference), spoke                                                                    
in support of DEC taking over  the 404 Primacy program.  She                                                                    
was a  member of Associated  General Contractors. She  was a                                                                    
holder  of a  404  permit  in the  Fairbanks  area. She  had                                                                    
extensive interactions with DEC.  She cited that the current                                                                    
404  permit   process  was  incredibly   time-consuming  and                                                                    
cumbersome  and  was  an   impediment  to  development.  She                                                                    
expressed full  support for  funding for  the state  to take                                                                    
over the program.                                                                                                               
                                                                                                                                
2:11:31 PM                                                                                                                    
                                                                                                                                
HOWARD  RIXIE, NORTH  POLE  COMMUNITY  CHAMBER OF  COMMERCE,                                                                    
NORTH  POLE  (via teleconference),  spoke  in  support of  a                                                                    
capital project for  a new welcome center in  North Pole. He                                                                    
noted  the  growing military  communities  in  his area.  He                                                                    
believed  the new  center would  empower  the community  and                                                                    
help  welcome new  residents while  growing the  labor force                                                                    
and  supporting  business.  He estimated  that  the  project                                                                    
would cost $1  million and hoped the  state would contribute                                                                    
to the project.                                                                                                                 
                                                                                                                                
2:13:58 PM                                                                                                                    
                                                                                                                                
LORALI    SIMON,   USIBELLI    COAL    MINE,   HEALY    (via                                                                    
teleconference), testified  in support  of DEC  assuming the                                                                    
Section 404  Primacy program.  She believed  that assumption                                                                    
would  bring stability  and predictability  to the  program.                                                                    
She  thought that  the  state  had a  good  track record  in                                                                    
managing its  resources. She believed that  the change would                                                                    
help with development in the state.                                                                                             
                                                                                                                                
2:15:55 PM                                                                                                                    
                                                                                                                                
                                                                                                                                
2:16:05 PM                                                                                                                    
                                                                                                                                
DAVID VAN  DEN BERG  EXECUTIVE DIRECTOR,  FAIRBANKS DOWNTOWN                                                                    
ASSOCIATION,  FAIRBANKS   (via  teleconference),   spoke  in                                                                    
support of funding  for the demolition of  the Polaris House                                                                    
in  downtown Fairbanks.  He stressed  that the  building was                                                                    
having  a  negative  affect  on   the  economic  climate  of                                                                    
downtown Fairbanks.                                                                                                             
                                                                                                                                
2:17:16 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
2:33:16 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
BERNIE   KARL,   SELF,   FAIRBANKS   (via   teleconference),                                                                    
supported the  state taking primacy over  404 permitting. He                                                                    
understood that  the change would  cost the state  money but                                                                    
that it  would be worth  it to  developers. He said  that he                                                                    
would be  happy to pay for  it. He voiced his  disregard for                                                                    
the federal government.                                                                                                         
                                                                                                                                
2:36:04 PM                                                                                                                    
RECESSED                                                                                                                        
                                                                                                                                
2:53:31 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CHANDRA  CAFFROY, SELF,  ANCHOR POINT  (via teleconference),                                                                    
spoke in  opposition to a sales  tax and an income  tax. She                                                                    
supported  a  full  statutory  PFD.  She  supported  cutting                                                                    
government.                                                                                                                     
                                                                                                                                
2:54:57 PM                                                                                                                    
                                                                                                                                
VIRGINIA  MCKEE,  SELF,  TWO  RIVERS  (via  teleconference),                                                                    
testified in support of the  Two Rivers/Pleasant Valley Fire                                                                    
Service Area. She  contended that the $2.8  million that was                                                                    
applied for would be squandered  in the community. She cited                                                                    
that  there was  a  petition to  dissolve  the fire  service                                                                    
area.   She   emphasized   that  the   fire   service   area                                                                    
concentrated  on prevention  and  education, including  fire                                                                    
extinguisher, carbon monoxide alarms, and the like.                                                                             
                                                                                                                                
2:57:51 PM                                                                                                                    
                                                                                                                                
MARY CALLAWAY, SELF, TWO  RIVERS (via teleconference), spoke                                                                    
in opposition to  $2.8 million in grant funding  for the Two                                                                    
Rivers/Pleasant Valley Fire Service  Area. She said that the                                                                    
plan had  been created  without proper community  input. She                                                                    
believed that  the funds  could be used  more wisely  by the                                                                    
state.                                                                                                                          
                                                                                                                                
2:59:52 PM                                                                                                                    
                                                                                                                                
HERMAN MORGAN,  SELF, ANIAK (via  teleconference), discussed                                                                    
an  expectation of  increased  inflation.  He was  concerned                                                                    
about  overspending.  He  thought  that  legislators  had  a                                                                    
conflict  of  interest.  He  emphasized  the  importance  of                                                                    
prayer.                                                                                                                         
                                                                                                                                
3:02:27 PM                                                                                                                    
                                                                                                                                
GAYE WRIGHT,  SELF, TWO  RIVERS (via  teleconference), spoke                                                                    
in  opposition   to  the  proposed   funding  for   the  Two                                                                    
Rivers/Pleasant Valley  Fire Service  Area. She  thought the                                                                    
funds would  be wasted on  the project. She did  not support                                                                    
an  income tax.  She  supported a  full  statutory PFD.  She                                                                    
asserted  that PFDs  were used  for important  expenses. She                                                                    
criticized excessive spending.                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
3:05:16 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 3:05 p.m.                                                                                          
                                                                                                                                
                                                                                                                                

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