Legislature(2017 - 2018)SENATE FINANCE 532
05/08/2017 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB23 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 23 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
May 8, 2017
1:33 p.m.
1:33:44 PM
CALL TO ORDER
Co-Chair MacKinnon called the Senate Finance Committee
meeting to order at 1:33 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Anna MacKinnon, Co-Chair
Senator Click Bishop, Vice-Chair
Senator Shelley Hughes
Senator Peter Micciche
Senator Donny Olson
Senator Natasha von Imhof
MEMBERS ABSENT
None
ALSO PRESENT
Laura Cramer, Staff, Senator Anna MacKinnon.
SUMMARY
SB 23 APPROP: CAPITAL BUDGET
SB 23 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 23
"An Act making appropriations, including capital
appropriations, supplemental appropriations,
reappropriations, and other appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
1:34:23 PM
Vice-Chair Bishop MOVED to ADOPT proposed committee
substitute for SB 23, Work Draft 30-GS1854\O (Martin,
5/17/17).
Co-Chair MacKinnon OBJECTED for discussion.
1:34:47 PM
AT EASE
1:35:44 PM
RECONVENED
LAURA CRAMER, STAFF, SENATOR ANNA MACKINNON, discussed a
Summary of Changes document (copy on file):
Section 1, Pages 2-8: Agency capital appropriations
proposed by the Governor and amended by the Senate
Finance Committee
Changes:
Page 2, line 24: Add language that the appropriation
to the Alaska Energy Authority - Bulk fuel program is
conditional upon receiving matching federal funds
Eliminated Federal funding to AEA for the Bulk Fuel
Upgrades and Rural Power Systems upgrades $20,146,000
- significant amount of prior year federal
authorization
Page 3, line 9: Reduced the appropriation to the
Inter-Island Ferry Authority by ($135,000)
Page 3, line 11: Inserted language relating to the
reappropriation found in Section 33 to the Inter-
Island Ferry Authority for $135,000 from a past
appropriation providing a total of $250,000
Page 3, line 14: Marine Exchange of Alaska - Alaska
Vessel Tracking System Upgrades and Expansion: Reduced
this request from $600.0 to $400.0 - In line with FY17
funding level
Page 4, line 15: $20 million appropriation from the
Alaska Capital Income Fund to the Office of the
Governor for state-wide agency deferred maintenance -
carry's out the intent of SB 107
Page 4, line 17: Intent language that the Office of
the Governor prioritize deferred maintenance needs and
distribute the funds to address the highest priority
issues
Page 6, line 12: Alaska Permanent Fund Corporation
Headquarters Renovation $4,050,000 APFC receipts
Page 6, line 30: AHFC Supplemental Housing Development
Program - reduced the appropriation from $3 million to
$2.25 million - this was the FY17 funding level
Page 6, line 32: AHFC Teacher, Health and Public
safety Professionals Housing reduced the appropriation
from $1.750 million to $1 million - FY17 funding level
1:39:43 PM
Co-Chair MacKinnon referred to page 6, line 12; and
clarified that the funds were from the Alaska Permanent
Fund Corporation.
Ms. Cramer continued addressing the changes to the CS:
Page 7, line 15: Reduced State Equipment Fleet from
$15 million to $12.5 million
Page 7, line 11: Alaska Marine Highway System Vessel
Overhaul the funding source was switched from General
Funds to Marine Highway Vessel Replacement Funds and
reduced by $1 million
Page 7, line 21: Reduced Federal Program Match from
$58 million to $12 million
Page 7, line 26: Inserted language relating to the
reappropriation found in Section 32 for Federal-Aid
Highway State Match totaling $43.2 million - providing
total match of $55.2 mil (a reduction of $2.8 mil from
$58 mil)
**The breakout of aviation and highway projects has
been provided to members and is posted online
Ms. Cramer referred to the document, "Dept. of
Transportation - Federal Match Aviation and Highway List,"
(copy on file) which was a breakout of aviation and highway
projects submitted by the Department of Transportation and
Public Facilities (DOT). She stated that typically the
projects were listed in the bill, however it was not done
so in the current bill to provide more flexibility for the
department to move up and down the list as projects
stalled. It was thought that the change would allow the
department to complete more projects with the limited
amount of funding it received.
Ms. Cramer continued addressing the Summary of Changes
document:
Items removed from the Governor's requested budget in
Section 1:
The appropriation to the Life Alaska Donor
Services because this has been included in the
Operating Budget, $80,000 receipts
Public and Community Transportation State Match
$1,000,000,000
Sec. 2 pages 9-11: The breakout of funding by agency
for the appropriations made in section 1
Sec. 3 pages 12-13: The breakout of statewide funding
for the appropriations made in section 1
UGF - $84,714,674
DGF- $37,650,000
Other - $57,618,930
Fed Receipts - $1,186,992,943
TOTAL - $1,366,976,547
Page 8, line 22: Added $5 million from the Alaska
Capitol Income Fund to the University of Alaska for
Deferred Maintenance
Ms. Cramer summarized that there was a total of $25 million
in Section 1 for deferred maintenance, which was
approximately the amount in the Alaska Capital Income Fund.
1:43:34 PM
Ms. Cramer continued to discuss the Summary of Changes:
Sec. 4 page 14: Supplemental capital projects and
grants
Items not included from the Governor's Supp Capital
request:
Reappropriation from the Juneau Access Project to
Arctic Strategic Transportation and Resources Project
$7,798,000
Transportation Infrastructure Enhancement in Greater
Lynn Canal $34,140,100
Sec. 5 page 15: Funding by agency for the
appropriations made in Sec. 4
Sec. 6 page 16: Statewide funding for the
appropriations made in Sec. 4
UGF: $75,000
DGF: $4,680,000
OTHER: $9,000,000
TOTAL: $13,755,000
Sec. 7 page 17-37: supplemental operating items
proposed by the Governor
1:45:11 PM
Vice-Chair Bishop asked if Ms. Cramer had been referring to
Section 7, pages 17 to 37.
Ms. Cramer answered in the affirmative.
Senator von Imhof asked about the meaning of operating
expenditures in the capital budget.
Co-Chair MacKinnon explained that standard practice was to
roll the supplemental request from the governor into the
capital budget, because the operating budget had already
left the body.
Ms. Cramer reminded that the items being discussed were
supplemental items and therefore applied to the current
fiscal year.
Co-Chair MacKinnon added that the committee hoped the items
were one-time items.
Ms. Cramer continued discussing the Summary of Changes:
Sec. 8 page 38-43: Funding by agency for the
appropriations made in Sec. 7
Sec. 9 page 44-46: Statewide funding for the
appropriations made in Sec. 7
UGF: $47,660,200
DGF: $11,680,900
Other: $270,100
Fed Rcpts: $42,030,700
TOTAL: $101,641,900
Sections 10-19 are primarily Governor's request
supplemental language sections as follows:
Sec. 10 (a) page 47, line 1: Department of
Administration - labor contract negotiations and
arbitration support $792,000 -extends lapse date
through FY18
Sec. 10 (b) Line 7: Reappropriation of $3 million from
the Department of Public Safety for the Alaska Land
Mobile Radio System
Sec. 11 page 47, line 12: Department of Commerce,
Community, And Economic Development - Appropriation of
$630,000 of Federal Receipts to the Division of
Insurance for the health insurance enforcement and
consumer protection grant for Fiscal years 17, 18, and
19
Sec. 12 page 47, line 17: Department of Environmental
Conservation - Appropriation from the general fund for
$5,740,000 to fulfill the terms of the Settlement in
State v. Williams Alaska Petroleum, Inc. - also
referred to as the Flint Hills refinery settlement
1:48:40 PM
Ms. Cramer continued to address the changes in the CS:
Sec. 13 (a) page 47, line 22: Department of Health and
Social Services - (a) Medicaid language necessary to
cover potential program shortfall for FY17
Sec. 13 (b) Line 28: (b) Federal Receipt authority for
the Medicaid program of $238,500,000
Sec. 14 page 47, line 31 - page 48, line 5: Department
of Labor and Workforce Development - Reappropriation
to the Department in the amount of $213,155 for
deferred maintenance, renewal, repair, and equipment
Sec. 15 page 48, line 6: Department of Law - (a)
Judgements and settlements broken out - total:
$228,671 - not included is the judgment for Planned
Parenthood of the Great Northwest v. State of Alaska
for $1,022,805
Sec. 15 (b) Line 19: (b) provides additional general
funds necessary to pay judgments against the state for
FY17 beyond that provided in Sec 15(a)
Ms. Cramer highlighted that there would an adjustment to
Section 15 in a subsequent CS. She continued addressing the
Summary of Changes:
Sec 15 (c) Line 26: (c) extends lapse provision to
include FY18 and FY19 for the reappropriation of
$2,000,000 to the Department for outside counsel and
experts and for the state's share of interim remedial
actions to protect the health, safety, and welfare of
the people in the North Pole area for FY14-19 (simply
added fiscal year 19 to this language)
Sec. 16 page 49, line 4: Department of Transportation
and Public Facilities - $5,500,000 appropriation from
the General Fund for fulfilling the terms of the
signed consent agreement and final order with the
United States Environmental Protection Agency
regarding the decommissioning and remediation of Class
V injection wells (this is reduced from $8 million at
$5.5 million is the amount needed for FY17 and FY18)
Sec. 17 page 49, line 9: Debt and Other Obligations -
subsections (a) reduces the amount for early
redemption on debt related to international airport
revenue bonds
Sec 17 (b) Page 50, line 1: reduces the amount for
debt service on (b)(j) Goose Creek Correctional Center
by $655,500 due to savings associated with refinancing
1:51:34 PM
Ms. Cramer continued to list changes to the CS:
Sec. 17 (c) Line 8: appropriates $745,000 for the
costs associated with issuing previously authorized GO
Bonds. $3 million for this purpose lapsed at the end
of FY16
Line 12: (d) If federal receipts are not sufficient to
cover international airports, the deficient amount
would be borrowed from the General Fund
Line 18: (e) Allows for the repayment in (d) if
necessary (d) and ¼DUHQHFHVVDU\DVDUHVXOWRI,5,6
functionality
Sec. 18 page 50, line 23: Fund Capitalization - (a)
$3,000,000 is appropriated from the General Fund to
the Disaster Relief Fund
Sec 18 (b) Line 25: $288,000,000 is appropriated from
the Statutory Reserve Fund to the oil and gas tax
credit fund to pay outstanding tax credit liabilities
Sec. 19 page 50, line 28: Fund Transfer - Revises the
date and amount to be transferred to the oil and
hazardous substance prevention account in the oil and
hazardous substance prevention and response fund -
Change is on page 51 lines 6 and 7 (3)
Sec. 20 page 51, line 9: Federal and Other Program
Receipts - Standard Federal receipt authority language
for agency's to receive Federal and other receipt
authority from Legislative Budget and Audit
Sec. 21 page 51, line 18: Insurance Claims - amounts
to be received in settlement of insurance claims are
appropriated to the general fund from the (1) State
insurance catastrophe reserve account or (2)
appropriate state agency to mitigate the loss
Sec. 22 page 51, line 23: National Petroleum Reserve -
Alaska Impact Grant appropriated to the Department of
Commerce, Community, and Economic development for
capital project grants under the NPR-A impact grant
program. This year's grants total $1,378,346 and will
be distributed to the City of Barrow, City of
Wainwright, and the City of Anaktuvuk Pass
Sec. 23 Page 52, line 3: Alaska Housing Finance
Corporation - Amends the FY18 Operating Budget
reducing the AHFC dividend that is deposited into the
General Fund by the capital and operating operations
that are made in FY18 using a portion of the AHFC
dividend
Sec. 24 page 52, line 9: Department of Commerce,
Community, and Economic Development - Reappropriations
for: (a) Alaska Energy Authority Electrical
Emergencies- not to exceed $330,000
Page 52, line 15: (b) unexpended and unobligated
balance of the renewable energy grant fund estimated
to be $3,200,000 is reappropriated to Alaska Energy
Authority for Rural Power Systems Upgrades
1:55:39 PM
Ms. Cramer continued to address changes to the bill:
Sec. 25 page 52, line 18: Department of Corrections -
Reappropriations for: (a) Underground storage tank
upgrades - not exceed $1,850,000
Line 24: (b) Deferred maintenance, renovation, repair,
and equipment - not to exceed $740,000
Sec. 26 page 52, line 30 - page 55, line 2: Department
of Education and Early Development - Reappropriation
of past major maintenance projects to the Major
Maintenance grant fund - estimated to be $3,503,492
Sec. 27 page 55, line 3: Department of Fish and Game -
Reappropriation for vessels and aircraft maintenance,
repair, and upgrades - not to exceed $500,000
Sec. 28 page 55, line 12: Department of Health and
Social Services - Reappropriations for (a) Deferred
maintenance, renovation, repair, and equipment for
Alaska Pioneers' Homes - not to exceed $773,432
Line 22: (b) Deferred maintenance, renovation, repair,
and equipment for facilities of the department other
than Alaska Pioneers' Homes - not to exceed $382,143
Sec. 29 page 56, line 1: Department of Labor and
Workforce Development - Reappropriation for deferred
maintenance, renewal, repair, and equipment - not to
exceed $550,000
Sec. 30 page 56, line 11: Department of Natural
Resources - Reappropriation for the national
recreation trails federal grant program - not to
exceed $150,000
Sec. 31 page 56, line 17: Department of Revenue - (a)
appropriation from the General fund to the Tax
Division for reprogramming the tax revenue management
system and revenue online tax portal - HB 111 oil and
gas tax credit bill implementation $1,200,000 - this
is contingent on passage of HB 111 (Contingency
language found in Sec. 38)
Line 20: (b) appropriation from the General fund to
the Tax division for Tax Division for reprogramming
the tax revenue management system and revenue online
tax portal - SB 25/HB 60 Motor Fuel Tax bill
implementation $50,000- this is contingent on passage
of SB 25/HB 60 (Contingency language found in Sec. 38)
Sec. 32 page 56, line 23: Department of Transportation
and Public Facilities - Reappropriations (a) for the
Izembek Road project - not to exceed $10,000,000
Line 29: (b) Federal-aid Highway match - not to exceed
$7,798,000
1:59:10 PM
AT EASE
1:59:39 PM
RECONVENED
Ms. Cramer continued discussing the bill changes:
Page 57, line 4: (c) Federal-aid Highway match -
unexpended balance estimated to be $2,179,929
Line 13: (d) Federal-aid highway match - unexpended
balance estimated to be $481,530
Line 18: (e) Harbor facility grant fund - unexpended
balance estimated to be $281,393
Line 23: (f) Federal-aid Highway match - estimated
balance total: $32,741,646 - reappropriations start on
page 57, line 26 - page 69 line 8 (118 reapprops)
Ms. Cramer explained that following the subsection was all
the reappropriations that rolled up to the federal aid
match program, and the material went through page 69, line
6. She continued to address the Summary of Changes:
Page 69, line 9 - page 71, line 5: (g) Cleaning up
Federal Authorization - Consolidates previously
authorized federal-aid highway appropriations into one
new appropriation for efficiencies in the management
of the appropriations in IRIS - estimated to be a
total of $675,600,000, reappropriated to the
Department of Transportation and Public Facilities for
previously authorized federal-aid highway surface
transportation program projects
Page 71, line 6 - page 72, line 25: (h) Cleaning up
Federal Authorization - Consolidates previously
authorized federal-aid aviation rural airport
improvement into one new appropriation for
efficiencies in the management of the appropriations
in IRIS - estimated to be a total of $247,600,000,
reappropriated to the Department of Transportation and
Public Facilities for previously authorized federal-
aid aviation rural airport improvement program
projects
2:02:33 PM
Ms. Cramer continued to specify changes contained in the
CS:
Page 72, line 26 - page 74, line 22: (i) Cleaning up
General Fund Authorization - Consolidates previously
authorized state match on previously authorized
federal-aid highway program projects into one new
appropriation for efficiencies in the management of
the appropriations in IRIS - estimated to be a total
of $3,332,000, and is reappropriated to the Department
of Transportation and Public Facilities for previously
authorized federal-aid highway state match
Page 74, line 23: (j) Cleaning up General Fund
Authorizations - Consolidates previously authorized
state match on federal-aid aviation rural airport
improvement into one new appropriation for
efficiencies in the management of the appropriations
in IRIS - estimated to be a total of $1,199,000,
reappropriated to the Department of Transportation and
Public Facilities for previously authorized federal-
aid highway state match
Page 75, line 30: (k) Intent language for the cleanup
of past appropriations in the previous subsections
Sec. 33 page 76, line 3: Fund Transfer - Transfer of
the large passenger vessel gaming and gambling tax
account balance to the Alaska Capital Income Fund
estimated to be $8,100,000
Sec. 34 page 76, line 6: House Districts 33 -36 -
Reappropriation to the Inter-Island Ferry Authority as
identified in Section 1 to provide them $250,000 in
total for service between Ketchikan and Prince of
Whales Island
Sec. 35 page 76, line 12: Office of the Governor -
Reappropriations to the Office of the Governor (a) and
(b) for facilities, and state government efficiency
efforts, and to pursue economic development
opportunities for consideration at the state and
federal levels - estimated to be a combined total of
$2,738,000
2:05:29 PM
Ms. Cramer continued with discussing changes to the bill:
Page 77, line 12: (c) to advance state government
efficiency efforts and to evaluate the current
structure and focus of AHFC, AEA, and AIDEA - updating
date to include FY19 - estimated to be $850,000
Page 78, line 9: (d) for costs associated with state
government efficiency and to pursue economic
development opportunities for consideration at the
state and federal levels - estimated to be $950,000
Sec. 36 page 78, line 19: Reappropriation of
Legislative Appropriations - Legislative renovations,
projects, and technology improvements - estimated to
be $6,465,000
Sec. 37, page 79, line 3: Lapse - (a) capital
projects, Insurance claims to state agencies to
mitigate loss, and NPR-A grants lapse (b)
capitalization of funds do not lapse (c) capital
projects lapse unless a fiscal year is specified
Sec. 38, page 79, line 10: Contingency - (a) Rural
power system upgrades state funding is contingent on
federal matching funds
Line 13: (b) Appropriation of $1.2 million to the Tax
division for reprogramming the tax revenue management
system is contingent on the passage of HB 111 - oil
and gas tax credits
Line 16: (c) Appropriation of $50,000 to the Tax
division for reprogramming the tax revenue management
system is contingent on the passage SB 25/HB 60 -
motor fuel tax
Sec. 39 page 79, line 19: Effective Dates for Agency
appropriations, debt and other obligations, fund
capitalization, fund transfer, and the motor fuel tax
passage implementation
Sec. 40 page 79, line 21: Effective Dates for Agency
reappropriations, other reappropriations, contingency
language for rural power system upgrades
Sec. 41 page 79, line 22: Effective Date except
sections 39 and 40 take effect July 1, 2017
SCS 18 Capital: SCS Total Op, Cap, & Sup:
TOTAL: $1,387,983,600 $2,032,766,000
UGF: $84,714,700 $434,263,100
DGF: $37,650,000 $54,010,900
Other: $77,247,600 $65,960,000
FED: $1,188,371,300 $1,478,532,000
Total FY18 UGF capital reduction from Governor to
Senate CS: $35.7 million
Co-Chair MacKinnon stated that she would like amendments to
the bill to be submitted to her office by noon the
following day.
SB 23 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
2:09:47 PM
The meeting was adjourned at 2:09 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 23 DOTPF Federal Program Match list.pdf |
SFIN 5/8/2017 1:30:00 PM |
SB 23 |
| SB 23 Work Draft version O.pdf |
SFIN 5/8/2017 1:30:00 PM |
SB 23 |