Legislature(2021 - 2022)SENATE FINANCE 532
04/27/2022 01:00 PM Senate FINANCE
Note: the audio
and video
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| SB164 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 281 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 164 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 27, 2022
1:56 p.m.
1:56:11 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 1:56 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
Cody Grussendorf, Staff, Senator Click Bishop.
SUMMARY
SB 164 APPROP: CAP; REAPPROP; SUPP
SB 164 was HEARD and HELD in committee for
further consideration.
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
SCHEDULED but not HEARD.
CSHB 282(FIN)
APPROP: MENTAL HEALTH BUDGET
CSHB 282(FIN) was SCHEDULED but not HEARD.
SENATE BILL NO. 164
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making supplemental appropriations;
and providing for an effective date."
1:56:45 PM
Co-Chair Bishop stated that it was the committee's
intention to consider a committee substitute, set an
amendment deadline, and set the bill aside.
Co-Chair Stedman MOVED to ADOPT proposed committee
substitute for SB 164, Work Draft 32-GS2436\W (Dunmire,
4/26/22).
Co-Chair Bishop OBJECTED for discussion.
1:57:27 PM
CODY GRUSSENDORF, STAFF, SENATOR CLICK BISHOP, addressed a
summary of the changes from version B to version W (copy on
file). He relayed the work draft incorporated all of the
capital items in the governor's infrastructure bill SB 241.
The budget also included a cooperative plan for the
Coronavirus capital project fund's projects, monies
authorized the American Rescue Plan Act (ARPA) for the
state's use with specific guidelines. Additionally, the
work draft included legislative reappropriations. The bill
included $706.9 million undesignated general funds (UGF)
and a total of $3.15 billion in all funds. He reviewed
infrastructure bill changes incorporated into SB 164:
SB 241 Infrastructure bill changes:
• Moved Infrastructure office and IT 24/7
Monitoring to Operating Budget
• Increased grant to Alaska Municipal League to
$1,500,000. (Page 34, line 18)
• Allocated Wildlife Management and Research
appropriation to specify $16,000,000 for
Statewide Wildlife Game Surveys (Pittman-
Robertson funds and Fish and Game funds) (Page
38, line 23)
• Adds $30m in Infrastructure Investment and Jobs
Act (IIJA) to the Department of Transportation
Alaska Marine Highway for planning and design of
a mainline vessel replacement (page 9, line 24)
• Reduced UGF funding for the following projects to
$250,000 each down from $1 million:
o AGDC- Clean Hydrogen Research (page 33, line
21)
o AEA- Grid Modernization, Reliability,
Resiliency, and Transmission Projects
o (page 33, line 24)
o DNR- Carbon Technology Infrastructure
Research (page 40, line 24)
o University- Mineral Security Projects (page
45, line 23)
• Removed Federal Authority for the previous four
projects
Mr. Grussendorf addressed Section 1 of the bill pertaining
to FY 23 expenditures.
Changes from the previous CS ver. B:
SECTION 1: FY 23 Budget, pages 2-27
• Multiple locations Alaska Long Trail $14,750,000
• Page 2, line 21 Mariculture Grant program (Gov
proposal) $5,000,000
• Page 3, line 33 School Major Maintenance
$100,000,000
• Page 5, line 31 DFG Sport Fish Access $1,500,000,
$4,500,000 fed
• Page 6, line 6 OMB Statewide Deferred Maintenance
$50,000,000
• Page 7, line 33 Snowmobile Trail Development
Program $250,000 DGF
Mr. Grussendorf elaborated that the Mariculture Grant
program had originally been proposed by the governor at $25
million, whereas the current bill reduced the number to $5
million. The $100 million in school major maintenance funds
covered up to approximately project 55 on the list. The
sport fish access increment reflected $4.5 million in
federal Dingle Johnson funds matched with $1.5 million UGF.
Statewide deferred maintenance was increased from
approximately $23 million in the governor's proposed budget
to $50 million UGF. He continued reviewing FY 23
expenditures in Section 1 of the bill:
Page 8 and 9 AHFC Program Increases:
• Supplemental Housing Development Program $250,000
• Senior Citizens Housing Development Program
$750,000
• Teacher, Health, and Public Safety Housing
$17,000,000
Page 9, line 20 State Equipment Fleet
• $5,000,000 Highway Capital Fund
• Page 9, line 22 DOT&PF Road and Bridge Completion
$30,000,000
• Page 27, line 21 Courts Security Projects
Increase $3,000,000
Mr. Grussendorf expounded that the Court System received an
increase in $3 million due to inflation costs on previously
appropriated projects.
2:02:19 PM
Mr. Grussendorf addressed Section 4 of the bill pertaining
to FY 22 supplemental expenditures:
SECTION 4: FY 22 Supplemental Budget
• Page 33, Line 13 Azure Adoption to Assist with
Cloud Migration (Gov proposal) $23,116,000
• Page 33, line 31 Kodiak Fire Hall (Gov proposal)
$15,000,000
• Page 34, line 5 AHTNA, Inc. Eagle Trail Fuel
Spill (Gov Amend) $382,843
• Page 34, line 7 Alaska Community Foundation-
Homeless Housing $5,000,000
• Page 34, line 12 Alaska Farmers Market
Association- SNAP/WIC/Senior Coupon Doubling
$500,000
• Page 34, line 21 Alaska Primary Care Association-
Healthcare Workforce Pipeline $2,000,000
• Page 34, line 32 Bering Sea Fisherman
Association- Improve stock of origin analysis of
Western Alaska salmon $513,000
Mr. Grussendorf elaborated on the supplemental budget items
above. He noted the cloud migration project had been
discussed by the committee the previous day. The item
proposed by the governor had originally been removed from
the committee substitute and had been added back in. The
increment for the Kodiak Fire Hall had originally been a
general obligation bond project put forward by the
governor. He detailed that there were a few salmon studies
funded in the proposed budget to help address the disaster
that occurred on the Yukon Kuskokwim Rivers.
Mr. Grussendorf continued to address the summary of
supplemental expenditures for FY 22:
• Page 35, line 4 Bering Sea Fishermen's
Association - Integrating Genetic and
Environmental Data for Predictive Models of
Salmon Bycatch $310,000
• Page 35, line 8 Bering Sea Fishermen's
Association - Review Current Draft Comprehensive
Salmon Plan $100,000
• Page 35 line 11 Bering Sea Fishermen's
Association Yukon River Watershed Monitoring
$1,180,561
Mr. Grussendorf elaborated the Yukon River watershed
monitoring was to help obtain accurate counts of
subsistence totals. He continued to address the summary of
supplemental expenditures for FY 22:
• Page 35, line 14 Blood Bank of Alaska- High-
complexity Reference Laboratory $2,000,000
• Page 35, line 16 Bristol Bay Science Research
Institute - Nushagak Salmon Stock Assessment
$3,750,000 matching funds
• Page 35, line 19 Food Bank of Alaska -
Infrastructure for Alaska's Statewide Food Banks
$10,000,000
• Page 35, line 22 Kuskokwim River Inter-Tribal
Fish Commission - Community-Based Harvest
Monitoring Network for Kuskokwim River Chinook
Salmon $140,000
• Page 35, line 26 Kuskokwim River Inter-Tribal
Fish Commission Salmon Stock Assessment using
Environmental DNA $88,000
• Page 35, line 29 Kuskokwim River Inter-Tribal
Fish Commission Tatlawiksuk River Salmon
Assessment Project $170,000
Mr. Grussendorf noted the Tatlawiksuk River salmon
assessment project would restart the weir to obtain
accurate fish counts. He continued to review supplemental
items:
• Page 35, line 32 Lower Kuskokwim School District
Kwethluk School Generator $614,000
• Page 36, line 11 Providence Hospital Crisis
Stabilization Center $8,000,000
• Page 36, line 13 Sealaska Heritage Institute-
Workforce Training Program $340,000
• Page 36, line 16 United Way of Alaska
Restaurant and Hunger Relief Program $500,000
(the continuation of a pilot program implemented
during COVID-19)
• Page 36, line 18 University of Alaska Maritime
Works $2,000,000
• Page 36, line 20 Volunteers of America school-
based Mental Health Services $960,000
• Page 36, line 28 Anchorage Starner Street
Bridge Replacement $1,500,000
• Page 36, line 30 City of Palmer Wastewater
Treatment Plant Improvements (Gov project)
$6,900,000
Mr. Grussendorf elaborated that the wastewater treatment
plant improvement was a governor's project originally
funded with Coronavirus State and Local Fiscal Recovery
Funds (CSLFRF). He continued to review supplemental items:
• Page 36, line 33 Emmonak Port Phase II- Ramp -
$9,400,000
• Page 37, line 11 Lutak Dock - $3,211,000
• Page 37, line 13 Homer Large Vessel Harbor-
Matching funds for Army Corps - $750,000
• Page 37, line 17 North State Office Building
Parking Garage - $5,000,000
2:08:11 PM
Mr. Grussendorf continued to address supplemental items:
Page 38, line 8 Mt. Edgecumbe Deferred Maintenance -
$6,163,000
Page 38, line 10 Start-up and Expansion of School
Breakfast Program - $600,000
Mr. Grussendorf elaborated that the $6.1 million would fund
the top three projects on the Mt. Edgecumbe maintenance
list. The $600,000 increment expanded the School Breakfast
Program to an additional 30 schools. He moved to page 39
containing a collaborative list (devised by the
administration, Senate, and House) of the Coronavirus
capital project fund projects under the Office of the
Governor paid for with federal funding:
Page 39 Governor - Coronavirus Capital Project Fund
• Line 5 Alutiiq Tribe of Old Harbor- Construction
of Nuniaq Community Center $4,454,968
• Line 8 Anchorage Library Foundation- Anchorage
Downtown Library $2,500,000
• Line 10 Association of Village Council of
Presidents Six Multi-Purpose Community Facility
Projects $10,445,000
• Line 13 Iliuliuk Family and Health Services
Center (located in Unalaska) $20,000,000
• Line 15 Kawerak Multi-Purpose Community
Facility Projects $12,000,000
• Line 17 Mat-Su First Responder Training Facility
$8,000,000
• Line 19 Nenana Health and Wellness Complex
(including the firehall) $24,000,000
• Line 21 Petersburg Medical and Public Health
Center $20,000,000
• Line 23 Rampart Broadband project $9,000,000
• Line 24 Spruce Island Development Cooperation
Ouzinkie Community Internet caf? $1,400,000
Mr. Grussendorf continued to review items:
• Page 39, line 30 Alaska Workforce Investment
Board- Cross-Industry Skills and Training
$2,000,000 (workforce development grant)
• Page 40, line 19 Agriculture 3 Phase Electrical
Service Infrastructure Nenana Totchaket
$3,000,000 (under the governor's Food Security
Grant Initiative)
• Page 40, line 29 Eagle River Salmon Viewing Deck
Replacement $200,000 Statutory Designated Program
Receipts
• Page 40, line 31 Food Security Agriculture
Incentive Grant Program $3,000,000 (under the
governor's food security proposal)
• Page 41, line 7 Nenana-Totchaket Agriculture
Development $5,000,000 (under the governor's food
security proposal)
• Page 41, line 11 Plant Materials Center Seed
Processing and Storage Improvements $2,000,000
(governor's request)
• Page 41, line 23 Mobile and Handheld Radio
Replacement (Gov request) fully funding
$3,723,300 (increased to the administration's
original request)
• Page 42, line 22 Harbor Matching Grant Program
$20,019,189
• Page 45, line 25 University IT System (Gov used
CCPF) $20,000,000 UGF
• Page 45, line 28 University of Alaska Deferred
Maintenance $50,000,000 for projects approved by
the Board of Regents
2:12:28 PM
Mr. Grussendorf moved to a summary of the language section:
SECTION 11: Legislative Reappropriation
SECTION 12: Department of Family and Community
Services: DHSS split, appropriating the prior capital
projects to the correct new department.
SECTION 13: Fish and Game language to allow the
proceeds of sales of state owned vessels and aircraft
to be used for renewal, replacement, and maintenance
of the vessels and aircraft for FY22 and FY23
SECTION 14 (a): DOH DHSS split, appropriating the
prior capital projects to the correct new department.
SECTION 14 (b): Sum of $5 million appropriated to the
Department of Health, Child Care Program Office for
initiatives in the Child Care and Development Fund
Plan for Alaska.
SECTION 16: Legislative Reappropriation
SECTION 18 (b): Governor amendment to reappropriate
funds from the Fairview Loop Road construction to the
Totchaket Road project $15 million.
SECTION 18 (c): Legislative Reappropriation
SECTIONS 21-29: Legislative Reappropriations
SECTION 24 (l) & (m): The sum of $25 million is
appropriated to the Municipality of Anchorage
contingent on a $25 million match by the Municipality
(can be in-kind), for the purpose of preparing a full
financial package for final investment decision for
the Port of Alaska
SECTION 30: Added "transition costs" as an allowable
use of the reappropriation
SECTION 31: Legislative Reappropriation
SECTION 32: Capital lapse language
SECTION 33-34: Effective dates
2:14:54 PM
Co-Chair Bishop commented that there was a lot in the
[capital budget] bill compared to the past six years. He
believed it reflected generous federal funding coming to
Alaska. He thought the budget showed some pent-up demand
from a constrained capital budget over the previous few
years due to reduced incoming state revenue. The state's
revenue had improved, which was reflected in the current
budget. He listed items funded in the budget including
major maintenance, school construction, grants to the
matching Harbor Grant Program, and University of Alaska and
State of Alaska deferred maintenance at $50 million apiece.
He noted the funding still did not come close to meeting
demands of up to $2 billion in deferred maintenance. The
goal was to save as much money as possible because the
targeted savings were projected; if the savings were
realized in one year's time and oil prices continued at
$101 per barrel, the state would be in a better position.
2:16:32 PM
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, Work Draft 32-GS2436\W was ADOPTED.
Co-Chair Bishop set an amendment deadline for 2:00 p.m. the
following afternoon.
SB 164 was HEARD and HELD in committee for further
consideration.
Co-Chair Bishop reviewed the schedule for the following
day.
ADJOURNMENT
2:17:05 PM
The meeting was adjourned at 2:17 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 164 House District Summary Compare ALL FUNDS.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 SCS2 AgencySummary.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 GovTotal+ to SCS2 Project Detail By Agency.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 SCS2 Project Detail by Agency.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 Explaination of Changes ver W.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 work draft version W.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 Testimony Midtown Park Oval Chalet project.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 Midtown Park Chalet funding request.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |
| SB 164 Testimony Nelson Yes! -to funding of Anch Midtown Park Chalet.pdf |
SFIN 4/27/2022 1:00:00 PM |
SB 164 |