Legislature(2021 - 2022)SENATE FINANCE 532
02/09/2022 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB164 | |
| Sb 176 Regular Supplemental | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 164 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
February 9, 2022
1:04 p.m.
1:04:35 PM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 1:04 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
PRESENT VIA TELECONFERENCE
Steve Masterman, State Geologist, Division of Geological
and Geophysical Surveys, Department of Natural Resources;
Ricky Gease, Director of Parks and Outdoor Recreation,
Department of Natural Resources; Kris Hess, Deputy
Director, Division of Mining, Land & Water, Department of
Natural Resources; David Schade, Director, Division of
Agriculture, Department of Natural Resources; Micaela
Fowler, Acting Deputy Commissioner, Department of Commerce,
Community and Economic Development; April Wilkerson,
Administrative Services Director, Department of
Corrections, Office of Management and Budget, Office of the
Governor; Bob Ernisse, Administrative Service Director,
Department of Military and Veterans Affairs, Office of
Management and Budget, Office of the Governor; Kelly
Howell, Special Assistant to the Commissioner, Department
of Corrections.
SUMMARY
SB 164 APPROP: CAP; REAPPROP; SUPP
SB 164 was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 164
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making supplemental appropriations;
and providing for an effective date."
1:04:56 PM
Co-Chair Bishop discussed housekeeping.
1:05:37 PM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, gave a continuation of the
presentation from the previous week, "State of Alaska;
Office of Management and Budget; Capital Budget SB164;
Senate Finance Committee; February 4 & 7, 2022" (copy on
file).
Mr. Steininger reminded that the slides addressed the
governors Capital Budget, including both capital projects
effective in FY 23, as well as those supplemental requests
for FY 22.
Mr. Steininger addressed slide 13, "FY2023 Projects by
Department":
Natural Resources
1.National Recreational Trails Federal Grant Program
$1,650.0 ($150.0 GF/Match, $1,500.0 Fed)
2.Abandoned Mine Lands Reclamation Federal Program
$3,200.0 Fed
3.National Historic Preservation Fund $800.0 ($200.0
GF/Match, $600.0 Fed)
4.Land and Water Conservation Fund Federal Grant
Program $4,200.0 ($1,600.0 GF Match, $2,600.0 Fed)
5.Federal and Local Government Funded Forest Resource
and Fire Program $7,000.0 Fed
6.Geological Mapping for Energy Development (USGS
STATEMAP) $1,200.0 ($600.0 GF Match, $600.0 Fed)
7.State Park Electronic Fee Stations $650.0 UGF
8.Arctic Strategic Transportation and Resource Project
(ASTAR) $2,500.0 UGF
9.Land Sales - New Subdivision Development $500.0 DGF
- State Land Disposal Income
Mr. Steininger highlighted an ongoing program to replace
fee collection stations at state parks. He pointed out item
8, which looked at transportation for resource development
in the northern region of the state.
1:07:47 PM
Senator von Imhof considered item 7 and asked how many
parks would benefit from the funding. She assumed that the
electronic devices used broadband. She asked whether the
fees would be used toward trash cans and dog waste bags in
the parks.
Mr. Steininger responded that the operating budget request
for the Parks Division included sanitation requests for
state parks.
1:09:05 PM
Co-Chair Bishop asked for an update on ASTAR and asked when
the funding requests for the project would cease.
1:09:53 PM
STEVE MASTERMAN, STATE GEOLOGIST, DIVISION OF GEOLOGICAL
AND GEOPHYSICAL SURVEYS, DEPARTMENT OF NATURAL RESOURCES
(via teleconference), reported that this was the last year
of anticipated funding request. He offered to provide a
brief update of the activity of the project.
Co-Chair Bishop noted that the committee would look deeper
into the project later.
1:10:43 PM
Mr. Steininger continued to slide 14.
1:11:02 PM
Co-Chair Stedman had questions about items on slide 13. He
asked about what was planned for the $800,000 request
listed in item 3.
Ms. Cross asked to defer the Division of Parks and Outdoor
Recreation.
1:12:07 PM
RICKY GEASE, DIRECTOR OF PARKS AND OUTDOOR RECREATION,
DEPARTMENT OF NATURAL RESOURCES (via teleconference),
explained that there were a series of different grant
programs that would be funded with the funding including
some new grants. He listed several areas where the funds
would provide operating budget support.
Co-Chair Stedman thought there was normally a list of
projects to be funded included in the requests. He wanted a
list of specific projects that would be funded with the
grant money.
Mr. Gease stated that the grant programs had open
application periods, which meant the grantees were yet
unknown. He agreed to report back to the committee.
Co-Chair Stedman wanted to get information on the dates of
closure for the grants. He referenced page 95 of the
capital budget detail book (copy on file). He noted $20,408
for Saint Peters church in Sitka. He described that the
City of Sitka had a historic Russian church that needed
maintenance fundings. He wondered whether the grants would
be available to the Russian church.
1:16:05 PM
Mr. Gease replied in the affirmative.
Co-Chair Stedman noted that the church was built many years
before the transfer of the state to the United States. He
asked Mr. Gease to get back to the committee on how
historical structures of the state could be maintained.
1:17:14 PM
Senator von Imhof asked about item 1 on the slide. She knew
the Girdwood community was trying to get a bridge built at
Winter Creek. She explained that there was no way to
connect the trail from Winter Creek to Crow Creek Road and
understood that there was a fundraising process //effort
underway. She asked about the process by which the
organization could apply for the grant.
Mr. Gease described that the DNR website contained details
on application dates and methods. He said that bridges in
remote locations could be expensive, and the organization
should reach out to the department for more information.
Senator von Imhof hoped that the department and the
organization could work together to move the project
forward.
1:19:41 PM
Senator Wielechowski asked about the $650,000 proposed for
item 7 on slide 13, for state park electronic fee stations,
and asked how much revenue was expected to be generated.
Mr. Gease stated that approximately $4.2 million was
currently collected in fees. He detailed that the
department would purchase 50 new fee stations across the
state, which would increase fee compliance by 20 percent.
He added that the electronic method would increase
administrative efficiency.
1:21:27 PM
Co-Chair Stedman asked about the appropriation request for
item 1 on slide 13 and the National Recreational Trails
Federal Grant Program. He drew attention to the windstorm
damage sustained at the Helga Point Recreations area in
Sitka. He asked for a report back regarding Totem Park in
Ketchikan, and a structure in Sitka that was in a state of
deterioration.
1:22:46 PM
Co-Chair Stedman wanted assurances that Mr. Gease had heard
the request for information.
Co-Chair Bishop asked Mr. Gease whether he heard Co-Chair
Stedman's request.
Mr. Gease agreed to provide the requested information
Co-Chair Stedman noted that the facilities were made after
the depression during the timeframe of the Civilian
Conservation. He added Ward Lake to the areas of interest.
Co-Chair Stedman addressed electronic fee stations listed
in item 7 and noted that boat launches had been added to
the stations. He asked whether the proposal changed the
arrangement that the state had with municipalities
regarding boat launch ramp stickers. He assumed that the
electronic fee stations would be there for citizens that
did not have permit stickers. He wanted information on the
status of revenues collected at boat ramps. He mentioned
past difficulties with money collection by the department.
He supported the project and asked for a comment relating
to cash collection from the current boxes.
1:25:29 PM
Mr. Gease agreed to provide a status report. He mentioned
the time-consuming nature of cash collection and
management. He discussed the ongoing problem of individuals
breaking into cash boxes.
Co-Chair Stedman thought having a credit card machine on-
site was a good idea but noted that many people still used
cash. He thought that the cash drop boxes should remain
intact, and he requested a breakdown of the money collected
at the boat launch stations. He added that he hoped the
boat ramps were properly lit and maintained for safety.
1:28:00 PM
Mr. Gease agreed to provide Co-Chair Stedman the
information and affirmed that there would be cash boxes as
well as electronic stations.
1:28:17 PM
Senator Wielechowski wondered whether it was a better idea
to get rid of the fee stations due to the vandalism and
thefts and associated drain on resources. He emphasized
that the state's land and resources were available for
everyone. He noted that other states did not charge for the
use of state parks.
Senator Wielechowski recalled that the previous year the
governor had put the Long Trail into the proposed General
Obligation Bond package. Subsequently, when that bond
failed to gain traction, funding was put in by the
legislature and then vetoed by the governor. He was curious
if the governor still supported the project and if he would
support funding for the trail.
Mr. Steininger relayed that the Long Trail project was not
in the governor's Capital Budget or General Obligation Bond
Package for the current fiscal year.
Senator Wielechowski asked whether the governor no longer
supported the project and whether he would veto funds
appropriated by the legislature for the project.
Mr. Steininger could not speculate as to the governors
intentions concerning funding for the project.
1:30:58 PM
Senator Wielechowski was curious whether the state parks
division had any thoughts on whether the Long Trail project
was a project that garnered state investment.
Mr. Gease deferred to the governor as to the support of the
Long Trail project.
1:31:39 PM
Co-Chair Bishop wanted to revisit the matter later in the
presentation.
1:31:51 PM
Co-Chair Stedman referenced Senator Wielechowski's idea of
elimination of fees for boat ramps. He requested additional
information from the department regarding the cost to the
state. He believed the information would be important in
the crafting of Operating Budget amendments.
Co-Chair Bishop asked whether Mr. Gease heard Co-Chair
Stedman's request.
Mr. Gease affirmed he had heard both Senator Wielechowski's
and Co-Chair Stedman's request for data on revenue
generation of program receipts.
1:33:45 PM
Mr. Steininger showed slide 14, "FY2023 Projects by
Department":
Natural Resources - continued
10. RS2477 Access Development - Advancing State's
Rights in Navigability and Revised Statute 2477
$2,500.0 UGF
11. Potter Marsh Watershed Conservation Project Phase
I $1,000.0 Fed
12. Statewide Park Sanitation Deferred Maintenance and
Facility Upgrades $1,418.0 Fed - CSLFRF
13. Eagle River Fire Crew Facility Coronavirus
Capital Projects Fund $13,856.4 Fed - Covid
14. Big Eddy EVOS Restoration and Improvements
$4,329.6 Other Exxon Valdez Oil Spill Trust -Civil
15. Food Security Agriculture Incentive Grant Program
$25,000.0 CSLFRF
Co-Chair Bishop wanted to discuss Item 10. He thought
Alaskans should know the importance for the state to
maintain access across the state and federal lands.
Ms. Croft asked to defer the question to a subject matter
expert from the Division of Mining, Land, and Water.
1:36:15 PM
KRIS HESS, DEPUTY DIRECTOR, DIVISION OF MINING, LAND &
WATER, DEPARTMENT OF NATURAL RESOURCES (via
teleconference), explained that most of the litigation to
maintain the navigable waters, and lands therein, is with
the federal government. She said that the funds would
support state litigation strategies.
1:37:14 PM
Senator Wielechowski recalled that the state had
appropriated $2.5 million in the previous fiscal year. He
asked what route or corridor the $2.5 million would go
towards assessing.
Ms. Hess explained that litigation was active concerning
both the 40 Mile River and the Koyukuk River. She said that
the department was in the planning stages of filing
additional litigation against the federal government for
other rivers throughout the state. She reiterated that part
of the funds would hire experts and outside staff to help
identify new rivers that were known to be navigable but
were had yet to be disclaimed by the Federal Bureau of Land
Management.
1:38:34 PM
Co-Chair Bishop asked about the proposed $25 million food
security grant listed on item 15. He asked for an overview.
DAVID SCHADE, DIRECTOR, DIVISION OF AGRICULTURE, DEPARTMENT
OF NATURAL RESOURCES (via teleconference), explained that
it was challenging to make agricultural products form
Alaska competitive on the national level. He said that the
program was a multi-phase approach to helping local farmers
expand and grow by balancing costs. He listed several
tactics to for supporting local farmers. He asserted that
the project was a way for the state to support the growth
of local industry.
1:40:56 PM
Co-Chair Stedman referenced food security and thought it
would be nice to have consolidation of issues so they could
be incorporated yearly in the budget process. He expressed
concern for putting significant funds into unnecessary
subsidies. He cautioned for a holistic approach that could
be monitored.
Co-Chair Bishop commented that the topic might be worthy of
a food security meeting in the committee. He thought there
were many reasons that agricultural projects had not grown.
1:42:12 PM
Senator Hoffman relayed that for rural Alaska, food
security was looked at with a different lens. He considered
that the food that people in rural Alaska depended on were
moose, caribou, and salmon. He thought the funding could be
better used for increasing the supply of salmon stock. He
thought that the proposed project would require and annual
appropriation but that the project description showed no
additional years of funding. He lamented that some rural
communities had to relay on donation of salmon from other
communities. He believed that rebuilding the stocks would
provide food security for rural Alaska and hoped that the
administration would expand the scope of the project to
include salmon stocks.
1:44:13 PM
Senator von Imhof recalled that in the past the state had
subsidized milk processing facilities. She thought there
had been food security successes in Thorne Bay with
hydroponic greenhouses. She thought it was important to be
realistic in the understanding that large-scale farming had
not been profitable in the state.
Co-Chair Bishop reiterated that the topic should be
considered at a future committee meeting.
1:46:11 PM
Mr. Steininger continued to address slide 14:
Public Safety
1. Law Enforcement Off Highway Vehicle Replacement
$750.0 UGF
2. Marine Fisheries Patrol Improvements $1,200.0 Fed
Co-Chair Bishop mentioned the state equipment fleet and
asked whether the item could not be purchased through state
equipment fleet.
Mr. Steininger understood that the vehicles in question
fell outside of the state equipment fleet requirements.
1:47:27 PM
Co-Chair Stedman expressed shock that that the vehicles
were not part of the fleet.
1:47:43 PM
Mr. Steininger noted Item 3:
3. Reappropriate Alaska Public Safety Communication
Services from Military and Veterans Affairs
Co-Chair Stedman made note of a substantial request for
several new troopers. He identified the need for more
information on trooper support infrastructure needs
throughout the state.
1:48:47 PM
Mr. Steininger spoke to slide 15, "FY2023 Projects by
Department":
Revenue
1. AHFC Supplemental Housing Development Program
$2,750.0 UGF - AHFC Div
2. AHFC Housing and Urban Development Capital Fund
Program $3,200.0 Fed
3. AHFC Housing and Urban Development Federal HOME
Grant $4,750.0 ($750.0 UGF AHFC Div, $4,000.0 Fed)
4. AHFC Federal and Other Competitive Grants $7,500.0
($1,500.0 UGF AHFC Div, $6,000.0 Fed)
5. AHFC Competitive Grants for Public Housing $1,350.0
($350.0 UGF AHFC Div, $1,000.0 Fed)
6.AHFC Energy Efficiency Research $500.0 UGF AHFC
Div
7.MH: AHFC Beneficiary and Special Needs Housing
$3,450.0 ($1,750.0 DGF - MH Trust Reserve, $200.0
Other - MH Trust Authority, $1,500.0 UGF AHFC Div)
8.MH: AHFC Homeless Assistance Program $8,100.0
($850.0 DGF - MH Trust, $6,300.0 UGF AHFC Div,
$950.0 Other MH Trust Authority)
Mr. Steininger noted that all the items on slide 15 were
for the Alaska Housing Finance Corporation (AHFC. Most of
the items involved some form of federal match. He noted
that many of the UGF in the programs was paid for out of
dividends paid by the corporation.
1:49:50 PM
Mr. Steininger referenced slide 16, "FY2023 Projects by
Department":
Revenue continued
10.AHFC Teacher, Health and Public Safety
Professionals Housing $2,250.0 ($1,750.0 UGF AHFC
Div, $500.0 Other SDPR)
11.AHFC Energy Programs Weatherization $4,800.0
($3,000.0 Fed, $1,800.0 UGF AHFC Div)
12.AHFC Rental Assistance for Persons Displaced Due to
Domestic Violence -Empowering Choice Housing Program
(ECHP) $1,500.0 UGF AHFC Dividend
13.MH: AHFC Senior Citizens Housing Predevelopment
Program (SCHPP) $500.0 UGF AHFC Div
14.AHFC Senior Citizens Housing Development Program
$1,000.0 UGF AHFC Dividend
Mr. Steininger noted that item 10 through item 14 was a
continuation of items for AHFC.
1:50:18 PM
Senator von Imhof asked about more detail for the teacher
and public safety housing in item 10. She wondered about
locations, cost, and timelines. She wondered how many
housed the funding would support.
Mr. Steininger agreed to provide more detailed information
on where the money had been deployed. He understood that
the funding was more for vouchers for housing and less
about building new housing.
Senator von Imhof asked for a discussion regarding building
new teacher and public safety housing. She suggested that
without actual houses the vouchers for housing proved
useless.
Co-Chair Bishop recalled that the previous year's budget
had more description of new teacher and public safety
housing.
1:52:03 PM
Co-Chair Stedman suggested an update on the success of the
previous year's appropriation.
Co-Chair Bishop reminded that the meeting was an overview,
and that the committee would return to discuss departmental
requests in more detail.
1:52:32 PM
Mr. Steininger continued to address slide 16:
Transportation and Public Facilities
1.Federal-Aid Aviation State Match $17,600.0 Other -
AHFC Bonds
2.Alaska Marine Highway System Vessel Overhaul, Annual
Certification and Shoreside Facilities Rehabilitation
$20,000.0 UGF
3.State Equipment Fleet Replacement $25,000.0 Other
Highways/Equipment Working Capital Fund
Co-Chair Bishop referenced Co-Chair Stedman's comments
about provisioning state troopers and noted that vehicles
for troopers generally came from the state equipment fleet.
1:53:58 PM
Co-Chair Stedman asked about item 2 under DOT, and the $20
million request. He expressed concern that the vessels were
maintained just enough so that they did not sink, but not
enough to guarantee they were consistently operational. He
understood that the administration was going to announce a
new ferry structure that would be the result of incoming
federal dollars.
Mr. Steininger stated there had been a lot of work looking
at reshaping AMHS. He referenced legislation from the
previous year that created an advisory board. He stated
that the passage of an infrastructure bill on the federal
level would bring some funding for the system. He did not
have concrete plans to share with the committee concerning
AMHS. He acknowledged the aging of AMHS vessels and stated
that there had been increased costs for annual
certification.
1:55:39 PM
Co-Chair Stedman was under the impression that the
administration might make an announcement at the Southeast
Conference as to how the federal dollars might be spent. He
hoped the conversation could occur in time to incorporate
funds into the Operating Budget. He said that there was
concern that the Marine Highway Replacement Fund might be
swept, which would leave the ate without the ability to
build up sinking finds for replacement vessels.
1:56:25 PM
Senator Olson spoke to Item 1. He queried how the funds
would be distributed.
Mr. Steininger relayed that the department could provide a
list of funded projects. He said that there was a lot of
federal rules and guidance involved.
Senator Olson noted the approximately $18 million in UGF
and wondered where the funds would be spent.
Mr. Steininger stated that the funds would match federal
dollars. He acknowledged that the funds were significant
and reiterated that a list of projects could be provided to
the committee.
Co-Chair Bishop reminded that there would be meetings with
DOT to review capital requests in further detail. He noted
that project backup was forthcoming.
1:58:15 PM
Mr. Steininger spoke to slide 17, " FY2023 Projects by
Department":
Transportation and Public Facilities continued
1. Federal Transit Administration Grants $26,670.0 Fed
2. MH: Coordinated Transportation and Vehicles
$1,300.0 ($1,000.0 MH GF, $300.0 MH Trust Authority)
5. Cooperative Reimbursable Projects $15,000.0
($5,000.0 Fed, $10,000 DGF SDPR)
6. Surface Transportation Program $669,500.0 Fed
7. Highway Safety Grants Program $8,033.9 ($130.6 UGF,
$8,000.0 Fed)
8. Federal Emergency Projects $10,000.0 Fed
9. Other Federal Program Match $1,300.0 GF Match
10. Alaska International Airport System $81,700.3
($9,561.0 Other Int. Airport Revenue Fund, $72,139.2
Fed)
Co-Chair Bishop asked to speak to a representative from
DOT&PF.
Mr. Steininger believed Dom Pannone, Director of
Administrative Services, was online for questions.
Co-Chair Bishop referenced Item 6 and the proposed
$669,500.0. He requested confirmation that the state would
be receiving a 40 percent increase in foundation funding.
Mr. Steininger relayed that the administration planned on
releasing an infrastructure appropriation bill that would
cover federal programs that were new or increased. He said
that the $669 million increase would be addressed in that
legislation.
Co-Chair Bishop understood that the $669 million was the
base funding.
Mr. Steininger answered affirmatively.
Co-Chair Bishop surmised that the increase would be in
addition to the $669 million.
Mr. Steininger agreed that there would be a considerable
increase.
Co-Chair Bishop asked when the increase was expected to
materialize.
Mr. Steininger shared that it should come before the
committee within the next few weeks.
2:01:48 PM
Co-Chair Stedman queried the deadline for budget
amendments.
Mr. Steininger stated that the statutory deadline for
budget amendments was the 30th day of the legislative
session. He said that the administration would put forth
amendments on that deadline. He said that the request for
consideration of the item after the deadline was because
the administration was still receiving guidance on the
federal infrastructure funding. He expressed frustration
that federal timelines differed from those of the state.
2:02:45 PM
Co-Chair Bishop noted that it was day 22 of the session.
2:02:54 PM
Co-Chair Stedman recounted that the previous year the
legislature had taken amendments until the end of the
session. He recalled that to pay for the projects the
dividend had been reduced to $1100. He reminded the
committee that many of the projects had been subsequently
vetoed by the governor. He asserted that the dividend could
have been larger in FY 22 had the committee been aware of
the governors intention to veto the projects.
2:03:42 PM
Mr. Steininger referenced slide 18, "FY2023 Projects by
Department":
Transportation and Public Facilities - continued
5. Rural Airport Improvement Program $200,000.0 Fed
6. Federal-Aid Highway State Match $70,200.0 DGF -
Program Receipts
University
1. Student Information Technology Systems -
Coronavirus Capital Projects Fund $20,000.0 Fed -
COVID
2. Seward Marine Center Research Vessel Infrastructure
$94,400.0 Fed
Mr. Steininger detailed that further federal guidance was
being sought that Item 1 would meet federal guidelines for
funding.
2:05:01 PM
Co-Chair Bishop asked how confident the University and the
administration was that the project would meet the
guidelines.
Mr. Steininger replied that the administration believed
that the project fit the U.S. Treasury guidelines. He
acknowledged that there was always the consideration that
the federal government interpreted the project differently,
and he noted that the language in the federal guidelines
was frequently inconsistent. He said that the final project
plans were due September 2022.
Mr. Steininger continued to address slide 18:
Courts
1. Court Security Projects $1,130.0 UGF
2. Courts Statewide Deferred Maintenance $3,820.0 UGF
2:07:09 PM
Mr. Steininger showed slide 19:
FY2022 Capital Supplemental
*SB 164 Supplemental in FY2023 Governor
**SB 165 Fast Track Supplemental
^^SB 176 Regular Supplemental
The symbols accompanying each line item are in relation to
the supplemental legislation they are contained within.
2:07:52 PM
Co-Chair Stedman that items included in previous budgets,
that had not been authorized by the administration in that
budget cycle, be highlighted for discussion.
Co-Chair Bishop replied in the affirmative.
2:08:29 PM
Mr. Steininger reviewed slide 20, "FY2022 Supplemental
Projects":
Administration
1.*Alaska Rural Communications Service (ARCS) FCC
License Surrenders and Renewals Update $1,650.0
($,500.0 UGF, $1,130.0 Fed)
2.**Azure Adoption to Assist with Cloud Migration
$23,116.0 UGF
Commerce, Community & Economic Development
1.*Replace Alcohol Licensing Database $750.0 UGF
2.*Alaska Energy Authority - Electrical Vehicle
Infrastructure Plan $1,150.0 UGF
3.*Alaska Energy Authority Strategic Plan for
Railbelt Assets $2,500.0 UGF
2:10:57 PM
Senator von Imhof asked about item 1 under the Department
of Commerce, Community and Economic Development for a
replacement of the alcohol licensing database. She wondered
whether applicants would be able to apply online.
2:11:27 PM
MICAELA FOWLER, ACTING DEPUTY COMMISSIONER, DEPARTMENT OF
COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT (via
teleconference), stated that it was the goal of the
department to pivot toward electronic applications. She did
not know that it would become an immediately become a
functionality of the new database but believed it was part
of the long-term plan.
Senator von Imhof asked for Ms. Fowler to define long-
term.
Ms. Fowler was wary of over-promising and underdelivering.
She shared that the electronic applications would depend on
the time it took to update the database and then find the
right product for electronic updating. She suggested a two-
year timeline.
2:12:53 PM
Senator Wielechowski appreciated the intent of the project
but thought the cost seemed high. He recalled passage of
the bill to update the states online checkbook, which was
done for a third of the cost of the proposed database
update.
Ms. Fowler retorted that the department did not feel that
the cost was exorbitant. She said that that the cost of
building out the Marijuana Database, as well as the cost of
the Professional Licensing Database, had been used to
inform the cost of the database upgrade. She said that the
cost was a best guess based on available information.
2:14:33 PM
Senator Wielechowski was curious to see whether there was
more information available about how the cost was
determined. He asked about the ongoing operating costs of
$50 thousand per year, into the future.
Ms. Fowler affirmed that the ongoing operating costs for
the database would include updates, adjustments for
changing regulation, maintenance, security, etc. She said
that it was common to have ongoing costs to maintain
databases.
2:15:29 PM
Senator Olson looked at Item 1, Administration, and the
Alaska Rural Communications Service (ARCS). He asked who
would be in charge of scheduling of the digital upgrades.
Mr. Steininger agreed to provide the information.
Senator Olson spoke of constituent complaints about access
to statewide and local news at appropriate hours.
2:16:47 PM
Co-Chair Stedman was concerned about being midway through
the fiscal year and receiving Supplemental Capital Budget
requests spurred by the rise in oil prices. He thought the
timing of certain projects would lead to confusion. He
suggested that the capital project requests should be
carefully considered for final approval by the legislature.
He thought that an item like the Electrical Vehicle
Infrastructure Plan did not need to be fast-tracked. He
warned against having appropriation bills lingering in the
process while the state had excess revenue.
2:19:20 PM
Senator Olson asked whether the administration was trying
to meet some sort of deadline by fast-tracking the electric
vehicle plan.
Mr. Steininger discussed how the administration crafted the
Capital Budget for the December 15, 2021, release. He said
that there had been small Capital Budget over the past few
years and these supplementals were an effort to ease some
of the pent up demand. He felt that the items on the
fast-track were urgent and some simply benefitted from
early funding.
Senator Olson understood that some of the projects were not
immediately urgent and could be included in the FY 23
budgets.
Mr. Steininger stated that it would be beneficial for the
projects to be supplementally funded.
2:22:01 PM
Co-Chair Stedman clarified that at the end of the year
excess revenue would roll into the Constitutional Budget
Reserve (CBR). He furthered that it would take a three-
quarter vote of the legislature to access the funds once
they went to the CBR.
Mr. Steininger agreed that surplus in the General Fund was
swept to the CBR per the constitution. The budget as
contemplated on December 15th would send $150 million into
the CBR, more current revenue estimated several $100s of
millions.
2:22:59 PM
Senator von Imhof wondered whether there were Designated
General Funds (DGF) in the supplemental bills.
Mr. Steininger replied in the affirmative. He said that DGF
fund would be noted on the slides in the continuing
presentation.
Senator von Imhof wanted to discuss the source of the funds
and whether money was available or whether the funds had
been swept because of the administrations failure to
perform the traditional reverse sweep.
Mr. Steininger replied that OMB had insured that any
appropriations from DGF had revenue behind them and could
be executed regardless of the reverse sweep mode.
2:24:13 PM
Co-Chair Bishop looked at item 2 under the Department of
Commerce, Community and Economic Development, and asked
whether the funds had come from the Volkswagen Settlement.
Mr. Steininger replied in the negative. He said that Item 2
used UGF.
Co-Chair Bishop thought that the fiscal note mentioned the
Volkswagen Settlement Fund.
Mr. Steininger replied that the Alaska Energy Authority
managed a variety of funds.
2:25:23 PM
Mr. Steininger continued to address slide 20:
Corrections
1.*Hiland Mountain Intake Administration Project
$4,500.0 UGF
2.*Yukon Kuskokwim Correctional Center Recreational
Area Renovations $3,170.0 UGF
3.*Statewide Backup Power System Evaluation and
Upgrade Program $350.0 UGF
4.**Suicide Prevention Barriers $750.0 UGF
*SB 164 Supplemental in 2023 Governor **SB 165 Fast
Track Supplemental ^^SB 176 Regular Supplemental
Co-Chair Bishop asked on Senator Wilsons behalf about Item
1 and its similarity to a line item already in the
Operating Budget.
Mr. Steininger affirmed that Item 1 was associated to an
item in the Operating Budget. He described that the moving
intake to Highland Mountain would require additional staff
at Highland Mountain. He said that some capital build-up
would also be required.
2:27:01 PM
Co-Chair Stedman thought projects of such need would have
been submitted in the governors FY 22 Capital Budget
proposal. He reiterated that projects should be carefully
considered to identify those that should be in the FY 23
Capital Budget versus a supplemental budget.
2:27:32 PM
Senator Wielechowski asked for detail on item 4 under DOC
and the suicide prevention barriers.
APRIL WILKERSON, ADMINISTRATIVE SERVICES DIRECTOR,
DEPARTMENT OF CORRECTIONS, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR (via teleconference), detailed that
that the barriers would help in building out in three
locations - the Anchorage Correctional Complex, Goose Creek
Correctional Center, and Spring Creek Correctional Center.
She offered to get information on square footage to the
committee.
Co-Chair Bishop thought the supplemental spreadsheet
offered more information.
2:28:56 PM
Mr. Steininger addressed slide 21, "FY2022 Supplemental
Projects":
Education
1.**William N. Miller K-12 Memorial School
Replacement, Napakiak $54,895.5 ($22,111.5 UGF,
$32,784 Other REAA)
Family and Community Services
1.*Alaska Psychiatric Institute Wireless
Infrastructure Upgrade $500.0 UGF
Fish and Game
1.*Stock Identification of Salmon Harvested in South
Peninsula Fisheries $2,000.0 UGF
2.*Alaska Marine Salmon Program $1,150.0 UGF
3.*Arctic Fisheries $1,000.0 UGF, $2,000 Fed
4.*Proceeds of Sale of State-owned Vessels and
Aircrafts $150.0 DGF
*SB 164 Supplemental in 2023 Governor **SB 165 Fast
Track Supplemental ^^SB 176 Regular Supplemental
2:30:38 PM
Senator Wielechowski thought some of the projects listed on
slide 21 were favorable but thought that $500,000 seemed
like a great deal of money for wireless infrastructure. He
considered that sometimes projects could be completed using
a lesser appropriation. He expressed concern that requests
were padded and thought that all projects did not need to
be gold-plated.
2:32:05 PM
Mr. Steininger spoke to slide 22, "FY 2022 Supplemental
Projects":
Health
1.*Office of Children's Services Lease Expansion or
Relocation $960.0 ($640.0 UGF, $320.0 Fed
2.**Information Technology Security Program Assessment
$1,900.0 UGF
3.^^Cyberattack Mitigation and Response (Scope change,
$0.0)
Governor
1.*Primary and General Elections Security Due to
COVID-19 $3,000.0 Other - Election Fund
2.*Statewide Deferred Maintenance, Renovation, and
Repair $5,903.8 DGF Capital Income Fund
Military and Veterans Affairs
1.*Construction of a Certified Veterans Cemetery in
Fairbanks area $3,270.0 ($2,270.0 UGF, $1,000.0 Fed)
2.*Alaska Military Youth Academy (AMYA) Construction,
Contingency, and Planning $750.0 ($150.0 UGF, $600
Fed)
*SB 164 Supplemental in 2023 Governor **SB 165 Fast
Track Supplemental ^^SB 176 Regular Supplemental
Co-Chair Bishop announced that he could not find the Office
of the Governor requests in his backup.
Mr. Steininger thought the items may have been included on
the slide in error. He said that a revised slide would be
provided to the committee.
2:34:26 PM
Senator Wielechowski asked about the $3 million for
election security and whether it was an actual request or
not.
Mr. Steininger thought that there was a cutting and pasting
error on the slide. He said that what should be on the
slide was a $4.3 million for election security for Division
of Elections and the implementation of Ballot Measure 2.
Senator Wielechowski asked for more detail about election
security that was referenced.
Mr. Steininger detailed that part of the project was stress
testing of election information technology systems to
assure any holes could not be capitalized on by a bad
actor. He said that the project was in response to the
national concern over fraudulent elections.
Senator Wielechowski asked whether the administration had
any evidence that the last presidential election was in any
way fraudulent or accurate.
Mr. Steininger deferred the question to the director of the
Division of Elections. He relayed that there were concerns
about increased attempts to access election data and
election systems.
Senator Wielechowski understood that Mr. Steininger could
not speak on the legitimacy of the most recent presidential
election.
Mr. Steininger assured the committee that he had no
political feelings about the matter and to respond to the
question would be out of his area of expertise. He deferred
to the Director of the Division of Elections.
Senator Wielechowski recalled that there were reports that
had come out relating to hacking of the state's election
system. He wondered whether more information on the matter
could be provided.
Mr. Steininger agreed to provide further information.
2:37:57 PM
Mr. Steininger continued to address slide 22:
Military and Veterans Affairs
1.*Construction of a Certified Veterans Cemetery in
Fairbanks area $3,270.0 ($2,270.0 UGF, $1,000.0 Fed)
2.*Alaska Military Youth Academy (AMYA) Construction,
Contingency, and Planning $750.0 ($150.0 UGF, $600
Fed)
*SB 164 Supplemental in 2023 Governor **SB 165 Fast
Track Supplemental ^^SB 176 Regular Supplemental
Co-Chair Bishop asked whether the cemetery would be a
national veterans cemetery.
2:39:00 PM
BOB ERNISSE, ADMINISTRATIVE SERVICE DIRECTOR, DEPARTMENT OF
MILITARY AND VETERANS' AFFAIRS, OFFICE OF MANAGEMENT AND
BUDGET, OFFICE OF THE GOVERNOR (via teleconference),
affirmed that the cemetery would be a national cemetery.
2:39:24 PM
Mr. Steininger spoke to slide 23, "FY2022 Supplemental
Projects":
Natural Resources
1.*Fire Crew Vehicle Replacement $750.0 UGF
2.^^LIDAR Collection and Mapping Modernization
($1,088.5 EVOSS)
3.^^National Historic Preservation Fund ($200.0 UGF)
Public Safety
1.*Body Worn Camera Initiative $4,524.3 ($3,586.3 UGF,
$938.0 Fed)
2.*Mobile and Handheld Radio Replacement $3,728.3 UGF
3.*AWT Medium-Class Vessel Replacement $1,800.0 UGF
4.*VPSO Law Enforcement Program Support $2,980.0 UGF
5.*Aircraft Purchase and Replacement $6,000.0 UGF
6.*AST Unmanned Aerial System $450.0 UGF
2:41:49 PM
Senator Olson asked whether Mr. Steininger had any
information regarding where the medium class vessel
replacement would be ported.
Mr. Steininger deferred to DOC.
2:42:08 PM
KELLY HOWELL, SPECIAL ASSISTANT TO THE COMMISSIONER,
DEPARTMENT OF CORRECTIONS (via teleconference), believed
that the vessel would be placed in Petersburg, also the
request would replace several medium class vessels. She
offered to provide further detail on those vessels.
Senator Olson said he was interested in whether any of the
vessels would be in Western Alaska.
Senator Olson looked at item 4 under DPS for Village Public
Safety Officer (VPSO) law enforcement program support. He
asked for specifics about the line item.
Ms. Howell relayed that the department had consulted with
grantees on their public safety needs, both for
infrastructure and equipment. She said that a report was
available of the requests, which would bolster
infrastructure based on the needs identified by grantees.
2:44:17 PM
Senator Wielechowski referenced the $3.7 million request
for the mobile and handheld radio replacement. He wondered
how many radios would be replaced.
Ms. Howell estimated that approximately 450 radios were
anticipated to be replaced with the funding. She agreed to
confirm the number in writing.
Senator Wielechowski pondered the costs of the radio
replacement and estimated that the cost equated to $8,248
per radio. He was curious about the high cost for the
mobile radios and noted they sold on eBay for $800 to
$1,400 apiece.
Ms. Howell agreed to get back to the committee with
additional information on the cost of the radios and
associated costs.
2:46:06 PM
Co-Chair Bishop shared Senator Wilson's question about the
Body Worn Camera Initiative listed in item 1 for DPS. He
asked whether the item would include the ongoing data
storage for statewide operations and how the policy would
be developed.
Ms. Howell shared that a bandwidth assessment would be done
in rural areas to determine need. She thought that the
capability in rural Alaska still needed to be determined.
She furthered that, concerning policy, the department had
followed how the Anchorage Police Department. She shared
that the department was anticipating federal grants and
would seek out public testimony when developing policies.
Co-Chair Bishop shared another question from Senator Wilson
relating to aircraft replacement. He asked whether the
change was to blue shirts (police) or brown shirts
(troopers).
Ms. Howell replied that both divisions were used depending
on the mission and need.
2:48:48 PM
Co-Chair Bishop looked at the detail book and asked if the
state planned to buy 3 Robinson r44s and 3 Robinson 206s.
Ms. Howell believed that the actual number of 2 of each.
She furthered that, while the state would be purchasing
some new aircraft, some old aircraft would be sold.
Co-Chair Bishop asked Ms. Howell with detail as to what
aircraft were being sold, and a list of fixed wing and
rotor wing aircraft, as well as the tag time per aircraft.
Ms. Howell agreed to provide the information.
2:50:08 PM
Senator Wielechowski asked what state employees, other than
law enforcement, would be allowed or eligible to fly in the
aircraft.
Ms. Howell listed prisoners, VPSOs, and state troopers.
Senator Wielechowski asked whether the planes or
helicopters would be able to be used by others in the
executive branch such as commissioners, directors, or
elected officials.
Ms. Howell thought there was a process by which other
executive branch employees could fly on state aircraft with
a reimbursement to the department for the cost.
2:52:14 PM
Senator Olson asked whether the governors spouse was
allowed to ride in the aircraft.
Ms. Howell deferred the question until a later time when
she had more information. She thought there had been
determinations by the Department of Law as to eligibility.
Mr. Steininger touched on the last item on page 23:
Transportation & Public Facilities
1. ^^Emergency Weather & Catastrophic Events
(Reappropriation, $0.0)
*SB 164 Supplemental in 2023 Governor **SB 165 Fast
Track Supplemental ^^SB 176 Regular Supplemental
Co-Chair Bishop asked for further detail of the request.
Mr. Steininger agreed to provide the information.
Co-Chair Bishop discussed housekeeping.
ADJOURNMENT
2:54:22 PM
The meeting was adjourned at 2:54 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 020422 OMB Capital Budget Overview SFIN v2.0.pdf |
SFIN 2/9/2022 1:00:00 PM |