Legislature(2021 - 2022)SENATE FINANCE 532
04/21/2022 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB199 | |
| HB281 || HB282 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 162 | TELECONFERENCED | |
| += | SB 163 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 281 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| += | SB 199 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 21, 2022
1:07 p.m.
1:07:08 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 1:07 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
Pete Ecklund, Staff, Senator Bert Stedman; Neil Steininger,
Director, Office of Management and Budget, Office of the
Governor.
SUMMARY
SB 162 APPROP: OPERATING BUDGET/LOANS/FUNDS
SB 162 was SCHEDULED but not HEARD.
SB 163 APPROP: MENTAL HEALTH BUDGET
SB 163 was SCHEDULED but not HEARD.
SB 199 PERM FUND; PERMANENT FUND DIVIDEND
CSSB 199(FIN) was REPORTED out of committee with
one "do pass" recommendation, two "do not pass"
recommendations, three "no recommendation"
recommendations, one "amend" recommendation, and
with one forthcoming fiscal impact note from the
Office of the Governor.
CSHB 281(FIN)am(brf sup maj fld)(efd fld)
APPROP: OPERATING BUDGET/LOANS/FUNDS
CSHB 281(FIN)am(brf sup maj fld)(efd fld) was
HEARD and HELD in committee for further
consideration.
CSHB 282(FIN)
APPROP: MENTAL HEALTH BUDGET
CSHB 282(FIN)was HEARD and HELD in committee for
further consideration.
SENATE BILL NO. 199
"An Act relating to use of income of the Alaska
permanent fund; relating to the amount of the
permanent fund dividend; relating to the duties of the
commissioner of revenue; and providing for an
effective date."
1:07:39 PM
Co-Chair Stedman stated that the committee would consider
amendments.
Senator Wilson MOVED to ADOPT Amendment 1, 32-LS1529\I.1
(Nauman, 4/20/22) (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Senator Wilson spoke to the amendment. He cited that the
amendment would remove may and put in shall. He thought
everyone in the legislative body understood that
appropriations could always be changed at the will of the
legislature. He felt that the legislature was trying to
rebuild trust with the people of the state, and the
amendment would show legislative intent to follow the law.
He thought the bill would be fully worked out on the floor.
Senator Olson asked what the amendment would do by changing
to the word shall.
Senator Wilson opined that the change would show a better
intent that the legislature would follow the [Permanent
Fund Dividend] formula and that the legislature was serious
and not just putting a placeholder into statute.
Co-Chair Stedman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Wielechowski, Wilson, Olson
OPPOSED: Hoffman, von Imhof, Stedman, Bishop
The MOTION FAILED (3/4).
1:10:05 PM
AT EASE
1:10:55 PM
RECONVENED
Co-Chair Bishop MOVED to report CSSB 199(FIN) out of
Committee with individual recommendations and the
accompanying fiscal notes.
Co-Chair Stedman OBJECTED for discussion.
Senator Wilson commented that SB 199 was an important piece
of legislation for the full Senate to debate. He thought
most of the discussions on the bill would be carried out on
the floor. He was not in favor of the current version of
the bill.
Senator Wielechowski agreed that the bill would generate
much discussion on the Senate floor. He did not support the
bill, which dealt with restructure of the Permanent Fund
Dividend (PFD) statute, which had been an issue since 2016.
He commented that there was a statute on the books that had
not been followed for the last six years. He thought the
only way to solve the issue was to put the PFD into the
constitution. He thought Alaskans deserved a policy that
had some consistency and stability. He discussed different
dividend scenarios but maintained that the solution was a
constitutional amendment. He thought Alaskans would support
an amendment.
Senator von Imhof did not think that the legislature should
tax people in order to pay a dividend, which she thought
was a contingency in the bill. She did not agree with the
concept of taking money from one person and distributing it
to the persons neighbor. She did not necessarily support
the bill, but she supported moving the bill out of
committee.
Senator Olson was in favor of the amendment previously
offered but would not object to moving the bill out of
committee. He acknowledged that the bill was not perfect,
but it would not inhibit the distribution of the PFD that
many of his constituents supported.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
CSSB 199(FIN) was REPORTED out of committee with one "do
pass" recommendation, two "do not pass" recommendations,
three "no recommendation" recommendations, one "amend"
recommendation, and with one forthcoming fiscal impact note
from the Office of the Governor.
CS FOR HOUSE BILL NO. 281(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; and making capital appropriations,
supplemental appropriations, and reappropriations."
CS FOR HOUSE BILL NO. 282(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
1:14:58 PM
Co-Chair Stedman relayed that the committee would consider
amendments to the operating and capital budgets. He noted
that the amendments would not be the committees final
action on the budgets. There were several other areas in
the bill that the committee would continue to work on.
1:15:37 PM
AT EASE
1:19:31 PM
RECONVENED
Co-Chair Stedman relayed that there were several amendments
for the committee to consider.
1:19:54 PM
AT EASE
1:20:58 PM
RECONVENED
Co-Chair Bishop MOVED to ADOPT Amendment 1 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
1:21:29 PM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, explained that
Amendment 1 was a technical amendment. He recalled that an
earlier version of the operating budget had a $250 million
appropriation for oil and gas tax credits in FY 23, which
was changed to not-to-exceed $349 million in FY 23. The
$250 million appropriation had been inadvertently left in
the bill and needed to be removed.
Mr. Ecklund explained that the latter half of the amendment
was also technical in nature and changed the allocation of
funds from the Public Health Administrative Services
allocation to the Chronic Disease and Health Promotion
allocation for an appropriation of $120,000.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 1 was
ADOPTED.
1:22:44 PM
Co-Chair Bishop MOVED to ADOPT Amendment 2 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that Amendment 2 would appropriate
$60 million outside of the Base Student Allocation (BSA)
formula to have it distributed by adjusted average daily
membership (ADM) as if it were running through the BSA
formula.
Senator Wilson understood the purpose of the funding
outside the BSA. He hoped that the legislature could settle
the BSA matter with a task force or committee either
through an executive order from or through legislation to
enable the legislature to work on the matter.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 2 was
ADOPTED.
1:24:01 PM
Co-Chair Bishop MOVED to ADOPT Amendment 3 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund spoke to Amendment 3. He recounted that the
committee had received a few more amendments from the
Office of Management and Budget (OMB) the previous night.
The amendment was for an additional approximately $7.5
million for judgements and claims and the settlement for a
dispute in the case Miller Construction v. Department of
Transportation and Public Facilities.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:24:54 PM
Co-Chair Bishop MOVED to ADOPT Amendment 4 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that Amendment 4 would allocate or
spread $17.8 million of an appropriation to the University
of Alaska amongst the different campuses of the University
as opposed to having two generic system-wide allocations
per the Universitys request.
Senator von Imhof asked if the amendment was at the request
of the University.
Mr. Ecklund answered affirmatively.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 4 was
ADOPTED.
1:26:08 PM
Co-Chair Bishop MOVED to ADOPT Amendment 5 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund spoke to Amendment 5. He referenced a committee
meeting two weeks previously on the topic of bonuses and
incentives in different state agencies. He continued that
per advice from Legislative Legal Services, the legislature
would have to approve letters of agreement. The amendment
would approve the letters of agreement, and also ask for
two reports to be delivered to the Legislative Finance
Division (LFD) as well as the co-chairs of the House and
Senate Finance Committees. The reports would include
information on the dollar amounts paid to different classes
of employees that accepted bonuses or incentives.
Additionally, the signed letters of agreement would be
transmitted to LFD within 30 days, so that the legislature
could be more informed about the different letters of
agreement occurring in the Executive Branch.
1:27:47 PM
Senator Olson asked if there were any departments that were
not eligible for the bonuses and incentives.
Mr. Ecklund did not believe there were departments that
were not eligible. He explained that it was up to the
Department of Administration (DOA) to negotiate letters of
agreement with the different unions for the different
classes of employees. He thought the legislature might be
exempt.
Senator Olson asked about the Department of Transportation
and Public Facilities (DOT) and specifically including the
airport personnel. He asked about the Department of Law and
whether it was not exempted from the arrangement.
Mr. Ecklund answered affirmatively.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 5 was
ADOPTED.
1:28:42 PM
Co-Chair Bishop MOVED to ADOPT Amendment 6 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that there had been recent hearings
on the Infrastructure Investment and Jobs Act (IIJA) bill
that the Executive Branch had put forward. The amendment
had different components of operating budget-related IIJA
appropriations put forward by the Executive Branch, which
for the most part applied to the increased activity for
drinking water. He listed the items included in the
amendment:
• $513,000 in CIP receipts (with a corresponding capital
budget item of $6 million) to establish Broadband
Office.
• $660,000 Increase Rural Utility Business Advisor
support infrastructure program.
• $471,000 for Division of Drinking Water and Wastewater
Infrastructure for FY 23 through FY 27.
• $8.1 million in federal receipts for Division E Title
I Drinking Water Federal Infrastructure for FY 23
through FY 27.
• $1 million in federal receipts for Spill Prevention
and Response.
• $1.5 million in CIP receipts for Division J Title VI
federal infrastructure Indian Health Services Village
Safe Water Support.
• $4.5 million for Division E Title I Drinking Water -
federal Infrastructure Drinking Water Program
Implementation.
• $1.1 million for Division E Title II Clean Water
Federal Infrastructure Clean Water Program
Implementation (FY 23 FY 27).
• $135,000 UGF to add one person to help implement the
larger federal programs due to additional federal
funds for drink water programs.
• $1 million for one-time funding for IIJA
implementation and coordination.
• $314,000 for Division J Title VII Low Income Home
Energy Assistance Program.
Mr. Ecklund recounted that there had been a $5 million
budget request to set up an infrastructure office in the
Governors Office to help manage the IIJA funds that were
coming into the state. The $1 million in the proposed
amendment was a one-time item for the office and
operations. The intent would be for the administration to
return to the legislature each year for funds to run the
office.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered. Amendment 6 was ADOPTED.
1:33:21 PM
Co-Chair Bishop MOVED to ADOPT Amendment 7 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that the amendment included $1.7
million for cybersecurity and monitoring services. The item
was originally requested by the executive branch as a
capital project. After further review and discussion with
the capital co-chairs office and LFD, it was decided that
the item was better suited for an operating budget item.
The $1.7 million was a multi-year operating item for FY 22
through FY 24.
Senator Wielechowski asked if the $1.7 million was the
amount requested by the administration.
Senator Olson asked if the $1.7 would be an annual request.
Mr. Ecklund stated that the funds had to be spent over
three years.
Senator Wielechowski was curious why the item was in the
operating budget rather than the capital budget.
Mr. Ecklund stated that after conversations with the co-
chairs and LFD, the funds to pay for cyber security
services seemed more appropriate as an operating expense.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 7 was
ADOPTED.
1:35:17 PM
Co-Chair Bishop MOVED to ADOPT Amendment 8 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund recalled that included in the second committee
substitute there had been a settlement between the General
Government Unit (GGU) and the state, and the agreement had
been for a three percent salary increase in FY 23 for GGU
members. He continued that Amendment 8 was at the request
of the Judiciary and was a three percent salary increase in
FY 23 for members of the Judiciary that were not judges,
for the amount of $1.798 million. The amount would match
the raise given to GGU members.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:36:33 PM
Co-Chair Bishop MOVED to ADOPT Amendment 9 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that Amendment 9 had five different
parts. He noted that committee staff, the Department of
Fish and Game (ADFG), the commissioner of ADFG, and LFD had
been meeting in the previous two weeks to try and adjust
some of the actions taken by the ADFG budget subcommittee.
Part 1 of the amendment was a $1.2 million supplemental
request to address a change in the Public Employees'
Retirement System (PERS) rate passed in SB 55 the previous
year. The adjustment would clean up the fund sources used
to pay PERS costs for ADFG.
Mr. Ecklund explained that part 2 of the amendment was also
a supplemental request and involved adding $1.8 million in
Unrestricted General Funds (UGF) and decrementing $1.8
million in commercial crew license receipts. In the FY 22
budget, the state had overspent commercial crew license
receipts, and the proposed fund swap would avoid a deficit
in commercial crew license receipts in FY 23.
Mr. Eckund addressed part 3 of the amendment. He explained
that the subcommittee had removed $4.5 million of
Commercial Fisheries Entry Commission (CFEC) receipts in
the commercial fisheries appropriation. Part 3 of the
amendment would make an adjustment to decrement $3 million
of UGF and add back $3 million of CFEC receipts into the
commercial fisheries appropriation. The amendment was a
result of working with the department over the preceding
two weeks.
Mr. Ecklund explained that part 4 of the amendment was also
in consultation with the department and would add a little
over $1 million in federal funds to the new appropriation
for the Anchorage and Fairbanks hatcheries.
Mr. Ecklund spoke to part 5 of Amendment 9, which was in
Division of Wildlife Conservation. After further
consultation with the department, the amendment would
reverse what the subcommittee originally proposed and
delete $5 million UGF and would add $7.5 million in fish
and game funds.
Co-Chair Stedman commented that there was more work to be
done on the ADFG budget, which would be forthcoming in
future meetings.
1:40:38 PM
Senator Wielechowski appreciated the work that was done on
Amendment 9. He noted that he had drafted Amendment 21,
which tried to address the issue in a different way. He
wondered if the department had an opportunity to analyze
the proposed amendment.
Co-Chair Stedman relayed that there would be another
opportunity to offer amendments on the ADGF budget.
Senator Olson asked if the proposed $7.5 million in part 5
of the amendment would be Designated General Funds (DGF) to
replace UGF.
Mr. Ecklund answered in the affirmative.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 9 was
ADOPTED.
1:42:11 PM
Co-Chair Bishop MOVED to ADOPT Amendment 10 (copy on file).
Co-Chair Stedman OBJECTED for discussion.
Mr. Ecklund explained that Amendment 10. In FY 23, if there
were any lapsing balances after all appropriations were
fulfilled, the amendment would take the lapsing balances
and deposit them in the Statutory Budget Reserve (SBR).
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:43:09 PM
Co-Chair Bishop MOVED to ADOPT Amendment 11.
Co-Chair Stedman OBJECTED for discussion.
1:43:24 PM
AT EASE
1:46:30 PM
RECONVENED
Co-Chair Bishop MOVED to WITHDRAW his motion to ADOPT
Amendment 11. There being NO OBJECTION, it was so ordered.
Senator Wielechowski MOVED to ADOPT Amendment 11.
Co-Chair Stedman OBJECTED for discussion.
Senator Wielechowski spoke to Amendment 11, which was in
some ways a conforming amendment. He explained that the
amendment would decrement the governors office allocation
by an amount that was previously budget for a
communications director and press secretary positions. He
noted that the amendment was not directed towards any
individuals. He referenced an organizational chart from the
governors office (copy on file) that showed from FY 22
organizational chart the two positions were not shown on
the FY 23 budget. The positions had been vacant since
October of 2019, although they had been funded in the FY 21
and FY 22 funding. The amendment simply removed the funding
for the positions, which did not show up on the
organizational chart.
Senator Wilson wondered why the two positions had not shown
up on the chart, and whether it was an omission by OMB or
truly just a reclassification of the positions.
Co-Chair Stedman asked the OMB director to address
Amendment 11.
1:48:37 PM
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, relayed that the communications
director position was reclassified as a deputy chief of
staff position, which was currently filled. The press
secretary position was reclassified to a policy
coordinator position, which he understood was currently
vacant. The two positions were included in the budget and
had been included in the organizational charts in the FY 23
budget, but had different titles.
Co-Chair Stedman understood that the governors office
needed the funding for the positions to make payroll.
Mr. Steininger answered in the affirmative. He commented
that the PCNs had been repurposed from the purpose that was
included in the FY 22 budget.
1:49:54 PM
Senator Olson thought that Mr. Steininger was asserted that
the positions should be funded even though one was not
filled.
Mr. Steininger affirmed that one of the positions was
filled, and the other position was necessary and therefore
included in the budget. He explained that often agencies
would reclassify positions for different purposes over the
course of the year as the nature of operations changed.
1:50:34 PM
Senator Wielechowski asked how many vacant positions there
were on the governor's FY 23 organizational chart.
Mr. Steininger offered to get back to the committee with
the information as he did not have the number available.
Senator Wielechowski asked if Mr. Steininger was indicating
that the communications director position became a policy
position.
Mr. Steininger affirmed that the new position title was
policy coordinator.
Senator Wielechowski asked if the press secretary position
became a deputy chief of staff.
Mr. Steininger answered in the affirmative.
Senator Wielechowski asked if there was no longer a press
secretary nor a communications director.
Mr. Steininger thought there was a deputy press secretary
and deputy communications director. He offered to get back
to the committee with an organizational chart for the FY 23
budget.
Senator Wielechowski was happy to set aside the amendment
in order to sit down with the department for clarification.
Co-Chair Stedman agreed to set the amendment aside. He
reiterated that the meeting was not the final action on the
bill, and there would be forthcoming amendments as the
committee worked on the budget in more detail over the
proceeding days.
1:52:14 PM
Co-Chair Bishop asked if Mr. Steininger was actively
recruiting for the vacant position.
Mr. Steininger relayed that he would need to consult with
others in the office to get an update on recruitment
efforts.
Co-Chair Stedman asked Mr. Steininger to get back to the
committee with the additional information.
Senator Wilson stated he would follow up with Senator
Wielechowski and the department regarding vacant positions
on the organizational chart and whether it would be better
to do a decrement without specifying positions.
Co-Chair Stedman set aside Amendment 11.
1:53:09 PM
Senator Wielechowski MOVED to ADOPT Amendment 12.
Co-Chair Stedman OBJECTED for discussion.
Senator Wielechowski explained that the amendment included
intent language stipulating that no funds should be
expended for any activity related to the United States
Supreme Court case Torres v. Texas Department of Public
Safety. He had recently had a town hall meeting in his
district the previous week and had heard of concerns from
some members of the United States National Guard. He
recounted that the case involved an individual [Mr. Torres]
was a member of the National Guard who sustained lung
damage while being deployed in Iraq. After Mr. Torres
returned, he was unable to return to his job as a public
employee in the State of Texas. He then attempted to file a
lawsuit under a federal law, the Uniformed Services
Employment and Reemployment Rights Act (USERA), which was
intended to protect armed services members.
Senator Wielechowski continued to describe the case. Texas
was claiming sovereign immunity and asserted that USERA did
not apply. He noted that the National Guard members that he
had spoken to were extremely concerned about the case,
which could undermine the rights of guard and reserve
members that sought to return to their jobs after serving
the country. He recounted that the state had joined an
amicus brief joining the State of Texas position.
Senator Wielechowski mentioned that the National Veterans
Legal Services Program and others had opposed Texas
position. One brief cited that the issue was of importance
because hundreds of thousands of veterans and service
members were employed by and faced discrimination from
state and local agencies. He did not think the State of
Alaska, with the largest population of veterans in the
country (and a huge reserve and active-duty population),
should be supporting a lawsuit that would take away the
rights of National Guard members.
Senator Wielechowski summarized that he did not think the
state had spent very much money on the case thus far, but
cautioned that the case could be remanded back to a lower
court, after which the state could potentially spend more
money. He concluded that he did not think the state should
be spending money on the lawsuit.
1:56:48 PM
Senator von Imhof asked if it made sense to have the
Department of Law discuss the issue. She wondered if the
committee had enough information to evaluate the amendment.
1:57:00 PM
AT EASE
1:57:21 PM
RECONVENED
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 12 was
ADOPTED.
1:57:37 PM
Senator Wielechowski MOVED to ADOPT Amendment 13.
Co-Chair Stedman OBJECTED for discussion.
Senator Wielechowski explained that the amendment would pay
a Permanent Fund Dividend according to the currently
existing statutory formula.
Co-Chair Stedman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Olson, Wielechowski, Wilson
OPPOSED: Hoffman, von Imhof, Bishop, Stedman
The MOTION FAILED (3/4).
Senator Wielechowski MOVED to ADOPT Amendment 14.
Co-Chair Stedman OBJECTED for discussion.
Senator Wielechowski spoke to the amendment. He noted that
there were attached backup documents (copy on file). He
continued that the amendment would delete FY 22 oil and gas
tax credit funding. He noted that there had been discussion
on the matter for many years. He noted that there was as
statute that discussed how refundable tax credits were
suggested to be paid. The tax credits were from a purely
discretionary fund, subject to legislative appropriation
and subject to issuance of tax certificates by the Director
of the Tax Division. He posited that in FY 22 the state
overpaid and cited a Legislative Finance Division analysis.
The amendment would remove the funding for FY 22.
2:00:20 PM
AT EASE
2:02:20 PM
RECONVENED
Co-Chair Stedman reminded that the committee was
considering Amendment 14, which would delete FY 22 oil and
gas tax credit funding.
Senator Wielechowski reminded that there was additional
backup included with the amendment (copy on file),
including a document from an economist at LFD, which cited
that the FY 22 budget appropriated greater than the
statutory appropriation. He pointed out that the current
budget proposed to appropriate another $60 million. The
amendment would remove the $60 million proposed in the
budget.
Co-Chair Stedman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Olson, Wielechowski
OPPOSED: von Imhof, Wilson, Hoffman, Stedman, Bishop
The MOTION FAILED (2/5).
2:04:16 PM
Senator Wielechowski MOVED to ADOPT Amendment 15.
Co-Chair Stedman OBJECTED for discussion.
Senator Wielechowski spoke to the amendment. He detailed
that the amendment dealt with the FY 23 oil and gas tax
credits. He referenced the email from LFD, which indicated
that addressed the amount of tax credits the state would
allow at an oil price of $80/bbl. He did not think the
state should be paying more for tax credits than the
statute suggested.
2:05:41 PM
AT EASE
2:06:39 PM
RECONVENED
Co-Chair Stedman MAINTAINED his objection.
A roll call vote was taken on the motion.
IN FAVOR: Wielechowski, Olson
OPPOSED: von Imhof, Wilson, Hoffman, Bishop, Stedman
The MOTION FAILED (2/5).
2:07:14 PM
Senator Wielechowski MOVED to WITHDRAW Amendment 16. There
being NO OBJECTION, it was so ordered.
2:07:41 PM
Senator Wielechowski MOVED to ADOPT Amendment 17.
Co-Chair Stedman OBJECTED for discussion.
Senator Wielechowski spoke to the amendment, which dealt
with the appropriation for the settlement in the Bellville
v. Dunleavy case, which had been discussed extensively by
the public and in committee. He recounted that the judge in
the lawsuit found that the governor and his chief of staff
had acted in a way that was a clear and knowing violation
of the constitution, which he thought was very rare.
2:08:53 PM
AT EASE
2:10:24 PM
RECONVENED
Senator Wielechowski continued to address Amendment 17. He
explained that there was a lawsuit filed over the firing of
Mr. Bellville. When the lawsuit was heard it was found the
governor and his chief of staff had violated Mr.
Bellvilles constitutional rights, and the judge found that
qualified immunity did not apply, and the governor and his
chief of staff were personally responsible. The state had
settled the case, which he thought should not have
happened. He considered that because there was personal
liability found, the state should not be responsible for
payment. He was concerned about the state honoring its
settlements. He wanted to continue having a discussion with
the Department of Law regarding an appropriate way to
resolve the situation. He knew the settlement was not
funded in the House budget.
Senator Wielechowski MOVED to WITHDRAW Amendment 17. There
being NO OBJECTION, it was so ordered.
2:12:43 PM
Senator Wielechowski MOVED to ADOPT Amendment 18.
Co-Chair Stedman OBJECTED for discussion.
Senator Wielechowski explained that the amendment had to do
with the Revised Program Legislative (RPL) process. He
relayed that his staff had worked extensively on the issue
and he had a piece of legislation on the topic that had
just been moved into the committee. He wanted to figure out
a way that the legislature did not lose its authority or
right to have a say how funding was appropriated. He
mentioned Coronavirus Aid, Relief, and Economic Security
(CARES) Act funding, which was not appropriated by the
legislature but rather proposed in an RPL by the governor.
He asserted that the amendment would put more sideboards on
the process. He stated he was open to suggestions. He
acknowledged that it was not the final meeting in the
committee process.
Co-Chair Stedman added that the committee had been working
on the RPL language, and was working with the Legislative
Budget and Audit Committee and other legislators.
Senator Wielechowski wanted to continue to work with Co-
Chair Stedman's office and committee members to ensure that
the legislature was the appropriating body rather than
delegating it to the executive branch.
Senator Wielechowski MOVED to WITHDRAW Amendment 18. There
being NO OBJECTION, it was so ordered.
Co-Chair Stedman relayed that the committee would continue
to work on the subject matter of Amendment 18.
2:15:25 PM
Senator Wilson MOVED to ADOPT Amendment 19.
Co-Chair Stedman OBJECTED for discussion.
Senator Wilson explained that the amendment would pay a 50-
50 dividend with the contingency that if the Senate passed
a version of SB 199, both dividends would not be paid. He
thought it was late in the session for the legislation to
reach the other body. He wanted to include a PFD at the
higher amount in the budget. He understood that the other
body had put in a similar amount as proposed in the
amendment, but for the difference of an energy rebate. The
rebate was not subject to the hold harmless provision as
was the dividend.
Co-Chair Stedman MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Wilson, Olson, Wielechowski
OPPOSED: Hoffman, von Imhof, Bishop, Stedman
The MOTION FAILED (3/4).
2:17:08 PM
Senator Wilson MOVED to ADOPT Amendment 20.
Co-Chair Stedman OBJECTED for discussion.
Senator Wilson spoke to the amendment. He referenced a
failed vote on the reverse sweep and negative effects on
the proposed budget. He mentioned millions in General Fund
revenues being requested to backfill accounts and funds. He
continued that the amendment provided the legislature an
opportunity to do the reverse sweep and correct negative
impacts to departments and other negative ramifications.
2:18:16 PM
Senator von Imhof cited that it took a three-quarters vote
to pass a reverse sweep. She asked if the amendment
proposed to reverse the reverse sweep and re-supply various
different funds with money. She asked if it was
constitutional to undo the reverse sweep.
Senator Wilson answered "yes."
Co-Chair Stedman pointed out that when the legislature
moved through the budget process, it had a three-quarter
vote requirement to access the CBR and do a reverse sweep.
He expressed that the mechanism did not need to be put into
place until the final budget was in conference committee,
and the vote to adopt the conference committee report would
be timed with the critical vote for the reverse sweep and
accessing the CBR. He thought the amendment proposed a
redundent opportunity and was not warranted in the budget.
Senator Wilson was aware of the budget timing, but wanted
to put the amendment before the committee in order to fix
what he considered was a mistake by a previous legislature.
He mentioned legal implications and federal funds that were
impacted by the reverse sweep. He hoped that the conference
committee would include the language.
Senator Wilson MOVED to WITHDRAW Amendment 20. There being
NO OBJECTION, it was so ordered.
2:20:41 PM
Senator Wielechowski MOVED to WITHDRAW Amendment 21. There
being NO OBJECTION, it was so ordered.
2:21:13 PM
AT EASE
2:22:18 PM
RECONVENED
Co-Chair Stedman referenced the amendment offered by
Senator Wilson that concerned the CBR and the reverse
sweep. He informed that the committee would have a hearing
on the following Monday afternoon on the topic of the
reverse sweep status with various departments. He thanked
the committee for working through the amendments. He noted
that the co-chairs would work with individual offices on
taking care of loose ends.
CSHB 281(FIN)am(brf sup maj fld)(efd fld) was HEARD and
HELD in committee for further consideration.
CSHB 282(FIN)was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
2:23:33 PM
The meeting was adjourned at 2:23 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 199 Amendment 1.pdf |
SFIN 4/21/2022 1:00:00 PM |
SB 199 |
| HB 281-HB 282 Backup Amendment 11.pdf |
SFIN 4/21/2022 1:00:00 PM |
HB 281 HB 282 |
| HB 281-HB 282 Amendment Packet.pdf |
SFIN 4/21/2022 1:00:00 PM |
HB 281 HB 282 |
| HB 281 Amendment 11 OMB Follow Up - Executive Office Vacant Positions 4-21-22.pdf |
SFIN 4/21/2022 1:00:00 PM |
HB 281 |
| HB 281 Testimony Woodward RE_ Alaska Food Product Systems Funded.pdf |
SFIN 4/21/2022 1:00:00 PM |
HB 281 |