Legislature(2019 - 2020)SENATE FINANCE 532
05/18/2020 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB243 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 243 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
May 18, 2020
3:01 p.m.
3:01:30 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 3:01 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
Caroline Schultz, Staff, Senator Natasha von Imhof; Pat
Pitney, Director, Legislative Finance Division; Senator
Cathy Giessel; Senator Peter Micciche; Representative Lora
Reinbold.
PRESENT VIA TELECONFERENCE
Neil Steininger, Office of Management and Budget, Juneau;
Alan Weitzner, Alaska Industrial Development and Export
Authority (AIDEA), Anchorage; Lucy Nelson, Mayor, Northwest
Arctic Borough, Kotzebue; Laurie Wolf, Foraker Group,
Anchorage; Rory Watt, Municipal Manager, City and Borough
of Juneau, Juneau; Stephanie Queen, City Manager, City of
Soldotna, Soldotna; Pat Branson, Mayor of Kodiak, Kodiak;
Nils Andreassen, Executive Director, Alaska Municipal
League, Juneau; Vince Tutiakoff, Mayor, City of Unalaska,
Unalaska; Jomo Stewart, Self, Fairbanks; Clay Walker,
Mayor, Denali Borough, Healy.
SUMMARY
SB 243 RATIFYING RPLS/COVID-19 FUNDING
SB 243 was REPORTED out of committee with a "do
pass" recommendation and with one new zero fiscal
note from the Senate Finance Committee and
Various Departments.
SENATE BILL NO. 243
"An Act approving and ratifying the actions of the
governor and executive branch in expending certain
federal receipts and of the Legislative Budget and
Audit Committee in approving the expenditure of
certain federal receipts during fiscal years 2020 and
2021; and providing for an effective date."
3:01:59 PM
Co-Chair Stedman discussed the modified protocol of the
committee. He noted that the capitol required facemasks,
but the committee members maintained a reasonable distance
between them. He felt that the other people in the
committee room should keep their masks in place He stressed
that note passing should be kept to a minimum. He remarked
that the legislator had assigned staff that could provide
notes.
Co-Chair von Imhof explained that RPL stood for "Revised
Program Legislative." She explained that RPLs were given by
the Executive Branch to the Legislative Budget and Audit
Committee.
Co-Chair Stedman explained the history of the RPL process.
3:08:57 PM
CAROLINE SCHULTZ, STAFF, SENATOR NATASHA VON IMHOF,
explained the bill. She stated that the bill only had five
sections and four pages. She explained that Section 1 began
with a timeline of legislative findings outlining the
response to the Covid-19 pandemic. She looked at page 2,
line 10, which detailed the RPL process.
3:12:34 PM
PAT PITNEY, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
discussed the RPL Summary (copy on file):
05-2020-0074
Department of Education and Early Development Student
and School Achievement 44,911.4
05-2020-0075
Department of Education and Early Development Child
Nutrition 41,869.6
3:14:23 PM
Senator Hoffman queried the administration of the grants.
Ms. Pitney replied that the grants were distributed based
on an already prescribed formula related to Title 1.
Ms. Pitney continued to discuss the RPL Summary:
05-2020-0076
Department of Education and Early Development Alaska
State Council on the Arts 421.5
12-2020-4049 Department of Public Safety Alaska State
Troopers 3,585.4
3:15:58 PM
Senator Olson wondered whether any money would go to the
Village Public Safety Officer (VPSO) program.
Ms. Pitney did not know the answer to that question.
Ms. Pitney continued to discuss the RPL Summary:
25-2020-8766
Department of Transportation and Public
Facilities Statewide Federal Programs 29,000.0
3:16:37 PM
AT EASE
3:17:28 PM
RECONVENED
3:17:36 PM
Ms. Pitney explained the use of the money for the transit
system outside of the urban areas.
Senator Bishop recalled that the funds could be used for
the villages.
Senator Olson wondered what other systems were available
for the money directly related to rural Alaska.
Ms. Pitney replied that communities with elder van
transportations, but she did not know of any transportation
outside of vans and bus systems that would qualify for the
money.
Senator Olson surmised that rural Alaska would not receive
much money from the allocation.
Ms. Pitney replied that they would receive money if they
have an existing transportation program.
Co-Chair von Imhof noted that there was approximately $10
million going to 13 grantees across the state including bus
systems, caravans, interisland ferries, and reserves.
3:20:34 PM
Ms. Pitney continued to discuss the RPL Summary:
45-2020-0002 University of Alaska Systemwide 5,000.0
08-2020-0250
Department of Commerce, Community, and Economic
Development Community Assistance Program 257,548.8
Senator Wilson queried the difference between the years.
Ms. Pitney explained that the governor had outlined a
schedule of distribution.
Senator Hoffman remarked that it was initially anticipated
that the first cash flow would be distributed on May 1. He
wondered whether the administration was prepared to send
the money out as soon as the governor signed the bill, and
how soon the governor would take action.
Ms. Pitney replied that the governor was gearing up as
quickly as possible.
3:25:08 PM
NEIL STEININGER, OFFICE OF MANAGEMENT AND BUDGET, JUNEAU
(via teleconference), explained that distributions could be
made by the end of the week.
Senator Wielechowski wondered why the indicators of
economic activity was used rather than the projected costs.
Mr. Steininger replied that a handful of different factors
were considered, but stressed that each community was made
up very differently.
Senator Wielechowski noted some concern from some
communities. He remarked that there were some major
discrepancies in the distributions of funding.
Mr. Steininger replied that the distribution was not
entirely based on population, which is why there was a
disparity for per capita cost.
Senator Wielechowski queried what would occur should the
communities not use the funds.
Mr. Steininger replied that they would be required to
return the money to the state.
3:30:17 PM
Co-Chair von Imhof surmised that there were approximately
125 communities on the list. She stated that between now
and July 1, communities must show that they had
substantially spent down their first tranche.
Senator Olson wondered whether there was a consideration
for how expensive the rural communities live.
Mr. Steininger replied that that it was considered in all
funding. The economic metrics included that variable.
Senator Olson assumed that the formula would continue to be
used in the determination of funds.
Mr. Steininger replied that they would continue that
consideration.
Senator Bishop noted that the Fairbanks Hospital was in a
bind for funding. He stressed that Fairbanks was the
frontline defense.
3:35:00 PM
Senator Wielechowski wondered whether a local municipality
could provide grants to businesses or individuals.
Mr. Steininger replied that the communities were only
limited by the federal guidance.
Senator Wielechowski wondered whether the funds could be
used for grants for businesses and individuals.
Mr. Steininger replied that the part of the state's plan
was for grants and businesses, so he replied in the
affirmative.
Co-Chair von Imhof explained that there was a provision
that allowed for the government to assist individuals under
certain guidelines.
Ms. Pitney continued to discuss the RPL Summary:
08-2020-0251
Department of Commerce, Community, and Economic
Development Small Business and Non-profit Relief
290,000.0
Senator Wielechowski wondered whether Alaska Industrial
Development and Export Authority (AIDEA) could also provide
relief, if the business had received these funds.
3:39:10 PM
Ms. Pitney deferred to Mr. Weitzner.
ALAN WEITZNER, ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT
AUTHORITY (AIDEA), ANCHORAGE (via teleconference), replied
that the focus was on the timing of the program, and was
not looking to exclude parties that had received state
funding.
Senator Wielechowski queried the required documentation for
the application of grants.
Mr. Weitzner replied that there would be a definition of
eligible expenses for businesses that apply for the grants.
Senator Wielechowski wondered whether there would enough
funds for all small businesses that needed the funding.
Mr. Weitzner replied that there would be $150 million to
establish the program. He felt that the initial valuation
on the need of the businesses that could not receive other
assistance, AIDEA had quantified the need of between $100
million to $150 million.
Co-Chair von Imhof remarked that 20 percent of the funds
would be held for communities with a population of 5000 or
less.
3:46:04 PM
Senator Hoffman wondered whether there was a website to
look at the application process.
Mr. Steininger explained that each RPL would have a
different constituency, so each department was working on
the information.
Mr. Weitzner explained that the program descriptions were
currently on the Department of Commerce, Community and
Economic Development (DCCED) website. He remarked that
there was a phone number for specific contacts and follow
up.
Senator Hoffman wondered how advertisements would be made
to ensure that Alaskans know this money would be available.
3:50:53 PM
Co-Chair Stedman surmised that the agencies should look
beyond the internet to reach out.
Senator Hoffman agreed.
Mr. Weitzner stated that AIDEA was planning to provide
information through a press release.
Senator Wielechowski asked about the third party contractor
and the program operator.
Mr. Weitzner replied that there was notice of intent to
award Credit Union One for the existing RFP.
Ms. Pitney continued to discuss the RPL Summary:
25-2020-8771
Department of Transportation and Public Facilities
Rural Airport System 49,000.0
Senator Olson queried whether the funds could be used for
capital or maintenance projects.
Ms. Pitney replied the money was prescribed for operation
and maintenance.
3:55:09 PM
Ms. Pitney continued to discuss the RPL Summary:
25-2020-8772
Department of Transportation and Public Facilities
Measurement Standards and Commercial Vehicle
Enforcement 1,350.0
25-2020-8776
Department of Transportation and Public Facilities
Whitter Tunnel 1,219.1
25-2020-8777
Department of Transportation and Public Facilities
Northern Region Highways and Aviation 465.0
08-2020-0260 through -0382
Department of Commerce, Community, and Economic
Development Community Direct Cost Allocation 311,024.1
08-2020-0054
Department of Commerce, Community, and Economic
Development Fisheries Assistance 100,000.0
Ms. Pitney noted that it was unsure whether that money
would arrive. She explained that the distribution may come
through the Pacific Fisheries.
Senator Olson wondered whether the reference was for the
licensees of the limited entry permits.
Ms. Pitney replied in the affirmative, and some could be
fishing guides.
Senator Olson wondered whether someone with a limited entry
permit living outside of Alaska could be eligible for the
funds.
Ms. Pitney felt that the question was best for Commissioner
Lange.
4:00:01 PM
Co-Chair Stedman remarked that the funding may not
materialize, and might be unlikely that the dollar amount
would be cut in half.
Senator Hoffman noted that there was a discrepancy between
2 percent and 3 percent. He wanted the response in writing.
Mr. Steininger agreed to provide a written response for why
they believe there would be a difference in percentages.
Senator Wielechowski wondered why the funds were going to
the Department of Commerce, Community and Economic
Development (DCCED) and not Department of Fish and Game
(DFG).
4:01:56 PM
Ms. Pitney replied that DFG did not administer grants.
Senator Wielechowski wondered whether the National Oceanic
and Atmospheric Administration (NOAA) had final review
authority over the proposed party list.
Ms. Pitney replied in the affirmative.
Senator Wielechowski wondered whether small business that
received these funds would also be eligible to receive
funds through the AIDEA program.
Ms. Pitney replied that the definition of the distribution
were all in question in the fisheries line.
Co-Chair von Imhof recalled that the funds might need some
time.
Senator Hoffman wondered whether the fishermen would be
able to apply for their fees and licensees paid, because of
their inability to participate in the fishery.
Ms. Pitney deferred to the commissioner of DFG.
Senator Wielechowski wondered who would pay back the unused
money.
Mr. Steininger replied that any money from the CRF that was
used outside of the federal guidelines must be paid back by
the state.
4:06:05 PM
Ms. Pitney continued to discuss the RPL Summary:
04-2020-1059 Department of Revenue AHFC Homeless
Assistance Program 10,000.0
Total CARES Act funding authorized in RPLs
$1,145,394.9
Senator Wielechowski wondered whether there was a plan to
audit the distributed funds.
Mr. Steininger replied that there was a monthly reporting
requirement.
Senator Wielechowski wondered whether the reports would be
publicly available.
Mr. Steininger replied that the reports would be available
to the committee after the review of the reports.
Co-Chair Stedman queried any responsibility of tracking and
reporting to the legislature.
Ms. Pitney stated that there was a tremendous audit
expectation of the federal government. She felt that
transparency was necessary.
4:11:12 PM
LUCY NELSON, MAYOR, NORTHWEST ARCTIC BOROUGH, KOTZEBUE (via
teleconference), spoke in support of the bill. She
explained the hardships faced by her community. She shared
that the community was slowly reopening.
4:13:57 PM
LAURIE WOLF, FORAKER GROUP, ANCHORAGE (via teleconference),
spoke in support of the bill. She felt that the funding
should be distributed as quickly as possible.
4:16:08 PM
RORY WATT, MUNICIPAL MANAGER, CITY AND BOROUGH OF JUNEAU,
JUNEAU (via teleconference), spoke in support of the bill.
He explained that many of the businesses in Juneau were
experiencing increased costs and loss of revenue.
4:16:58 PM
STEPHANIE QUEEN, CITY MANAGER, CITY OF SOLDOTNA, SOLDOTNA
(via teleconference), testified in support of the bill. She
echoed the comments of previous testifiers. She remarked
that every city department would redesign how they serve
the public. She remarked that she had closely reviewed the
Federal Treasury Guidelines.
4:19:24 PM
PAT BRANSON, MAYOR OF KODIAK, KODIAK (via teleconference),
spoke in support of the bill. She looked forward to
receiving the much needed funds. She remarked that Kodiak
would be efficient and prudent in their distribution of the
funds. She encouraged quick distribution of the funding.
4:20:16 PM
NILS ANDREASSEN, EXECUTIVE DIRECTOR, ALASKA MUNICIPAL
LEAGUE, JUNEAU (via teleconference), spoke in support of
the bill. He thanked the committee for reconvening and
acting quickly. He stressed that it was critical to
distribute the funding as quickly as possible. He remarked
that the crisis had sparked collaboration.
4:22:16 PM
VINCE TUTIAKOFF, MAYOR, CITY OF UNALASKA, UNALASKA (via
teleconference), spoke in support of the bill. He explained
that his community was experiencing unexpected costs as a
result of the pandemic. He remarked that there would
continue to be significant loss of revenue. He stated that
the funding would support the efforts to recover from the
crisis. He encouraged the committee to pass the bill
quickly.
4:23:45 PM
JOMO STEWART, SELF, FAIRBANKS (via teleconference),
expressed discomfort in the allocation of funds. He felt
that there should be a mechanism to distribute surplus
funds. He encouraged the committee to enact a mechanism to
reallocate surplus funds to those communities that did not
receive the guarantees on the front end of distribution.
4:25:51 PM
CLAY WALKER, MAYOR, DENALI BOROUGH, HEALY (via
teleconference), spoke in support of the bill. He stated
that the program was not the "silver bullet" to cure the
pandemic impacts, but felt that it would be a tremendous
service to his residents.
Senator Wielechowski would have preferred to see a full
appropriation bill. He wanted to see more money go to
individual Alaskans.
4:30:25 PM
Senator Hoffman commented that people may not be aware that
the funds would exist. He hoped that the administration
would distribute the information on all the different RPLs
and provide assist businesses and individuals in rural
Alaska to apply for the funds.
Co-Chair Stedman furthered that there was a concern at the
speed at which the areas could respond, and the timing of
the distribution of funds.
Co-Chair von Imhof looked at the fiscal note, which had
zero fiscal impact.
4:34:03 PM
Co-Chair von Imhof MOVED to REPORT SB 243 from committee
with individual recommendations and the attached zero
fiscal note. There being NO OBJECTION, it was so ordered.
Co-Chair Stedman said that the following day's meeting
would most likely be cancelled.
SB 243 was REPORTED out of committee with a "do pass"
recommendation and with one new zero fiscal note from the
Senate Finance Committee and Various Departments.
ADJOURNMENT
4:35:21 PM
The meeting was adjourned at 4:35 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 243 Complete CARES Act RPL Packet.pdf |
SFIN 5/18/2020 9:00:00 AM |
SB 243 |