Legislature(2021 - 2022)SENATE FINANCE 532
05/02/2022 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB164 | |
| 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
May 2, 2022
1:34 p.m.
1:34:26 PM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 1:34 p.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Bill Wielechowski
Senator David Wilson
MEMBERS ABSENT
Senator Natasha von Imhof
ALSO PRESENT
Cody Grussendorf, Staff to Co-Chair Bishop; David Dunsmore,
Staff to Senator Wielechowski.
PRESENT VIA TELECONFERENCE
Andy Mills, Legislative Liaison, Department of
Transportation and Public Facilities.
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."
1:34:45 PM
Co-Chair Bishop relayed that the committee would address a
packet of amendments to SB 164 (copy on file).
Co-Chair Stedman MOVED to ADOPT Amendment 1.
Co-Chair Bishop OBJECTED for discussion.
1:35:06 PM
CODY GRUSSENDORF, STAFF TO CO-CHAIR BISHOP, spoke to
Amendment 1. He explained that the amendment proposed a
technical change to move the Maritime Works grant into the
University of Alaska section of the bill.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:35:28 PM
Co-Chair Stedman clarified that SB 164 was the capital
budget, and that there would be several forthcoming
amendments.
Co-Chair Stedman MOVED to ADOPT Amendment 2, 32-GS2436\W.3
(Dunmire, 4/28/22).
Co-Chair Bishop OBJECTED for discussion.
Mr. Grussendorf spoke to Amendment 2, which was a technical
change that corrected the description in a reappropriation.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:36:10 PM
Co-Chair Stedman MOVED to ADOPT Amendment 3, 32-GS2436\W.4
(Dunmire, 4/28/22).
Co-Chair Bishop OBJECTED for discussion.
Mr. Grussendorf explained that Amendment 3 was a rewording
regarding funds for the Port of Alaska and would provide
the port a little more flexibility. It deleted preparing a
full financial package for final investment decision for
the Port of Alaska and inserted the Port of Alaska
modernization project, including a full financial package
for final investment decision.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:36:45 PM
Co-Chair Stedman MOVED to ADOPT Amendment 4.
Co-Chair Bishop OBJECTED for discussion.
Mr. Grussendorf explained that Amendment 4 would add $4
million of federal receipt authority to Alaska Gasline
Development Corporation (AGDC) for its project, Clean
Hydrogen Research, Development and Demonstration
Opportunities.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:37:12 PM
Senator Hoffman MOVED to ADOPT Amendment 5.
Co-Chair Bishop OBJECTED for discussion.
Mr. Grussendorf explained that Amendment 5 would add
$54,895,500 from the Regional Educational Attendance Area
(REAA) Fund to fund the Napakiak school. It was an
obligation out of the REAA Fund.
Co-Chair Bishop WITHDREW his OBJECTION.
Co-Chair Stedman OBJECTED for discussion. He thought that
the school was the next school on the REAA funding list. He
explained that the amendment did not change the budget
structure but rather clarified that the school would be
dealt with entirely through the REAA Fund.
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:38:25 PM
Co-Chair Stedman MOVED to ADOPT Amendment 6.
Co-Chair Bishop OBJECTED for discussion.
Mr. Grussendorf explained that the amendment reinstated the
governors proposed amount of $2.5 million for the Alaska
Energy Authority (AEA) Strategic Plan for Railbelt Assets
project. There had been a decrement in an earlier version
of the bill and the amendment would restore the governors
original proposed amount.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:38:57 PM
Co-Chair Stedman MOVED to ADOPT Amendment 7, 32-LS8002\A.48
(Dunmire, 4/28/22).
Co-Chair Bishop OBJECTED for discussion.
Mr. Grussendorf explained that Amendment 7 was an
appropriation of the unexpended and unobligated remainder
of the funds in the Exxon Valdez Oil Spill Restoration Fund
to the Prince William Sound Science Center in the
approximate amount of $200,000.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
OBJECTION, it was so ordered.
1:39:24 PM
Co-Chair Stedman MOVED to ADOPT Amendment 8 (copy on file).
Co-Chair Bishop OBJECTED for discussion.
Mr. Grussendorf explained that Amendment 8 was a title
change for the Alaska Community Foundation. The new title
was the Alaska Housing Trust.
Co-Chair Bishop WITHDREW his OBJECTION.
Senator Wilson OBJECTED for discussion. He thought everyone
understood the importance of housing in Alaska. He pointed
out that the item was a new project, and he wanted more
detail as to how the funds would be spent. He asserted that
there had not been much information disseminated to the
committee.
Mr. Grussendorf explained that the $5 million appropriation
was intended for the Alaska Community Foundation to
increase housing stock in Alaska to try and address
homelessness and other problems.
Senator Wilson was concerned that he was not familiar with
the board members or management structure. He wondered if
the Alaska Housing Finance Corporation (AHFC) was involved.
He understood that there were matching funds and pointed
out that the state was making a large investment in the
project. He wanted more detail to be comfortable voting for
the budget item.
1:41:12 PM
Co-Chair Stedman thought the lack of housing pervaded many
areas of the state. He pointed out that the budget had
several areas being addressed including for teachers,
Alaska State Troopers, public safety, and nurses. He
thought by putting funds in the Alaska Community
Foundation, it allowed for the chance to bring in
substantial matching funds through private contributions.
He supported the amendment and thought the subject should
be revisited the following year to see if the funds should
be matched or increased. He suggested having the foundation
come before the committee to show the results of the
funding. He recalled that the original request was close to
$60 million, and he thoguht the $5 million gave an
opportunity for the foundation to prove up.
Senator Wielechowski thought the affordable housing and
homelessness issue had been heard in committee many times
and referenced its connection to domestic violence and
sexual assault that was addressed in the meeting earlier in
the day. He thought there was a dearth of housing across
the state. He estimated that the issue of homelessness and
affordable housing was the foremost issue in his district.
He thought the amendment was important. He knew there was
significant private funding available that was looking for
a state match and thought the funding would make an impact
on homelessness all over the state.
Senator Wilson reiterated his concern about the lack of
detail. He questioned which communities would be involved
and how the funds would help. He wanted to see a plan as to
how the funds would be used but did not want to belabor the
committee with a roll call vote. He had concerns about the
clarity and transparency of how the funds would be used.
Senator Wilson WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. Amendment 8 was
ADOPTED.
1:44:29 PM
Senator Wilson MOVED to ADOPT Amendment 9, 32-LS8002\A.45
(Dunmire, 4/27/22).
Co-Chair Bishop OBJECTED for discussion.
Senator Wilson recalled that the 2024 Arctic Winter Games
were awarded to the Matanuska-Susitna Borough in the year
2021. He recounted that since 1970, athletes from the
Pacific Northwest had been gathering to light a torch to
symbolize the spirit of the Arctic Winter Games. He listed
participants in the games, including Canada and Greenland.
The Mat-Su Borough was responsible for providing all the
food, lodging, and local transportation equipment and
facilities for athletes, coaches, and trainers. The
previous year there were starting funds appropriated for
the event, and an additional $1 million was requested from
the borough. He recounted that the last time the games were
held in the state was in 2014 in Fairbanks. He thought a
member from the other body had been a chair of the games.
He thought the event was supported by the lieutenant
governor.
Co-Chair Bishop commented that his daughter had competed in
the games in Alberta, Canada, at which time he learned that
the Arctic Winter Games had more participants than the
Winter Olympics.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:46:27 PM
Senator Wilson MOVED to ADOPT Amendment 10, 32-LS8002\A.46
(Dunmire, 4/27/22).
Co-Chair Bishop OBJECTED for discussion.
Senator Wilson explained that the amendment proposed to
complete the rail extension from Port MacKenzie to Houston.
The project scope would include final design and
construction for two rails reserved for additional segments
for final design survey. He mentioned additional elements
such as rail ties and communications. He cited that Port
MacKenzie was a deep water port and the rail extension
would provide a shorter rail route from the Interior to
tide water, which would boost the states mineral export
and natural resources export to help the states economy.
Senator Wilson continued to address Amendment 10. He cited
that the project would bring about $184 million in
investment, as well as creating jobs and helping improve
air quality in the Interior. He understood that there might
be additional federal funds coming through and that the co-
chairs office had been working with the federal delegation
for rail funding for the state.
Senator Wilson MOVED to WITHDRAW Amendment 10. There being
NO OBJECTION, it was so ordered.
1:47:58 PM
Senator Wilson MOVED to ADOPT Amendment 11, 32-LS8002\A.47
(Dunmire, 4/27/22)
Co-Chair Bishop OBJECTED for discussion.
Senator Wilson explained that Amendment 11 was similar to
Amendment 10 and pertained to segments of the Port
MacKenzie rail extension project and the Ayrshire, Peger,
and Laurance rail spurs. He discussed the advantages of the
rail extensions. He discussed the progress on the project
and mentioned the possibility of potential Infrastructure
Investment and Jobs Act (IIJA) funds that could be used for
the project.
Senator Wilson MOVED to WITHDRAW Amendment 11. There being
NO OBJECTION, it was so ordered.
Co-Chair Stedman wanted to comment on Amendment 11. He
considered the possible federal funds coming to the state
as mentioned by Senator Wilson and thought that in addition
to the issues mentioned in the amendment, the state should
consider the extension of the Alaska Railroad to the Canada
border.
1:49:25 PM
Senator Wilson MOVED to ADOPT Amendment 12 32-GS2436\W.5
(Dunmire, 4/28/22).
Co-Chair Bishop OBJECTED for discussion.
Senator Wilson explained that Amendment 12 provided
opportunity to increase the states infrastructure needs by
allowing for the Fairview project to continue and provided
support to the Totchaket Road project. He discussed the
importance of the Fairview Loop in his area. He mentioned
road upgrades that had created more traffic and the use of
the road as a bypass. He asserted that the project would
improve the roadway and make for smoother commuting ties in
the area. He discussed the Statewide Transportation
Improvement Program (STIP) list. He discussed the
difference between state and federal project timelines.
1:51:21 PM
Co-Chair Bishop MAINTAINED his OBJECTION.
ANDY MILLS, LEGISLATIVE LIAISON, DEPARTMENT OF
TRANSPORTATION AND PUBLIC FACILITIES (via teleconference),
explained that the Fairview Loop Project continued, and the
reappropriation of state funds to the Totchaket Road
project had been acquired for the upcoming construction
season. He relayed that the department continued to do work
on the Fairview Loop and noted that the project was part of
a General Obligation (GO) Bond that had an alteration to
the scope of work in 2014 for a separate path for
pedestrians and bicycles. He cited that DOT was still
working on utility relocation and right-of-way acquisition
to bring the phase of the project to completion.
Mr. Mills explained that even with the $15 million
reappropriation, there would still be $3 million needed for
the Fairview Loop project to continue. The department would
be doing the work in concert with federalization of the
project, which would allow the state to leverage federal
dollars. He recounted that the commissioner had recently
driven the Fairview Loop to view the road. He mentioned
that federalizing the project would allow the department to
consider additional scope to enhance the alignment and
safety of the road.
Senator Wilson thought normally reappropriations stayed
within communities, while Mr. Mills had mentioned that the
project had already been on the books since 2014. He asked
about the timeline for moving the project from STIP
funding. He felt that there was no assurance that the STIP
funding process would make the timeline shorter. He thought
Fairview Loop was resurfaced without need.
1:54:20 PM
Senator Wielechowski asked if there was $15 million in the
budget proposed to be reappropriated from Fairview Loop
road construction.
Co-Chair Bishop stated that the governors reappropriation
proposed to put the funds towards the Totchaket Road
project. He took away that the commissioner was looking at
enhancing the project to make it better with federal
funding.
Senator Wilson was not concerned with when the commissioner
had driven the road but was very interested in knowing when
the road project was going to be completed and whether the
reappropriation would delay the timeline. He wanted to know
the timeline difference from moving the project from state
to federal funding.
Mr. Mills relayed that the commissioner had a history in
the Northern region and had experience federalizing
projects with little to no additional time added to the
project. He noted that there had been considerable
conversation regarding federalization of the project and
whether it would substantially delay the timeline. He
underscored that there were still state funds to continue
the right-of-way and utility relocation that was ongoing,
and that the relocation had been at issue. There was an
open question that the work would be done in the later part
of 2023, due to factors outside the departments control
even if the funds were maintained. He reiterated that the
department saw Totchaket as a possibility this construction
season, and federalizing Fairiview Loop potentially without
delays.
Senator Wilson MAINTAINED his objection.
A roll call vote was taken on the motion.
IN FAVOR: Wilson.
OPPOSED: Olson, Wielechowski, Bishop, Stedman, Hoffman
The motion The MOTION FAILED (1/5).
1:57:53 PM
Senator Wielechowski MOVED to ADOPT Amendment 13 (copy on
file).
Co-Chair Bishop OBJECTED for discussion.
Senator Wielechowski explained that the amendment clarified
the intent on a portion of what was known as The Long
Trail. The amendment did not add any additional funding
but clarified the usage.
Senator Wilson asked if Senator Wielechowski knew if the
community councils or other stakeholders in the Mat-Su area
were consulted on the project regarding the multi-use
aspect of the trail.
Senator Wielechowski understood that the amendment was put
together by the group that was putting together The Long
Trail. He knew there were organizations in Mat-Su that had
provided resolutions in support of the trail. He noted that
the amendment would allow for motorized use in the
wintertime. He knew that organizations had worked hard to
provide motorized use. He mentioned that there was a
portion of the trail that was not safe or practical for
motorized use in the summer due to foot traffic. He offered
to get back to Senator Wilson with more information
regarding his question.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered.
1:59:51 PM
Senator Wielechowski MOVED to ADOPT Amendment 14, 32-
LS8002\A.42 (Dunmire, 4/19/22).
Co-Chair Bishop OBJECTED for discussion.
2:00:05 PM
AT EASE
2:00:29 PM
RECONVENED
DAVID DUNSMORE, STAFF TO SENATOR WIELECHOWSKI, spoke to
Amendment 14. He explained that the amendment would
reappropriate the money left over at the end of the current
fiscal year appropriated to the Legislative Council for the
Redistricting Board to the Legislative Council for
conducting a review of census blocks in the state. The
review would provide a recommendation to the Census Bureau
for revising census blocks in Alaska. He mentioned there
were numerous issues with census blocks identified in the
state during the recent redistricting process.
Mr. Dunsmore continued to address the amendment. He noted
that census blocks were the smallest unit in which
population data was available and were used for demographic
and planning purposes beyond just redistricting. Issues
that were identified were often new subdivisions that were
not reflected, lines that cut through homes, and service
areas not reflected. He used the example that in Anchorage,
it was not possible to isolate the Anchorage road and
drainage service area, as it was not taken into account. He
discussed odd shapes of census blocks, and blocks that
donut other census blocks, and forced redistricting
decisions purely by census blocks. The reappropriation
would fund a thorough review and would provide more
accurate and easier-to-use census data for the next ten-
year census process.
2:02:29 PM
AT EASE
2:03:13 PM
RECONVENED
Co-Chair Bishop MAINTAINED his OBJECTION.
Senator Wielechowski appreciated the opportunity to speak
on what he considered an important issue. He noted that the
legislature had ten years to fix the issue, and he thought
the subject was worthy of further discussion.
Senator Wielechowski MOVED to WITHDRAW Amendment 14. There
being NO OBJECTION, it was so ordered.
2:03:51 PM
Senator Olson MOVED to ADOPT Amendment 15 (copy on file).
Co-Chair Bishop OBJECTED for discussion.
Senator Olson explained that Amendment 15, pertaining to
the Port of Nome, proposed to allow for the nation to have
an Arctic port. He thought the port was such an important
issue considering the conflict going on in Ukraine, where
he considered there to be two countries with adverse
interests to the United States that would be endeavoring to
utilize northern shipping lanes. He explained that the port
had been partially funded with a commitment of $250 million
from the Army Corps of Engineers but needed a match of non-
federal funds. He was concerned that the federal funds
would be lost and utilized elsewhere.
Senator Olson relayed that the matching funds would be used
for the port to be put out to bid in order to start
construction on the project, which was an important capital
project for the nations security.
Co-Chair Stedman asked for clarification regarding the
explanation that the project would be lost if the $173.5
million was not funded by matching funds by February 2023.
He understood differently based on conversation with the
Army Corps of Engineers the previous day. He thought
February 2023 represented the earliest bid date if the
funds were available. He noted that the Community of Nome
had the ability to continue to pursue funding through the
next legislative cycle the following winter. He thought
there needed to be clarification. He asserted that if the
amendment failed to pass the committee it would not be
indicative of a rejection of the project. He thought the
timeline described on the amendment was incorrect.
Senator Olson thought Co-Chair Stedman brought up issues
that were due to misunderstanding of events. He
acknowledged that although it was possible to pursue
funding the following year, 59 legislators were up for
reelection, and he thought it was of paramount importance
of getting the funding passed in the current year. He
wondered if the following year would have the same revenue
surplus as the current year. He supported getting the
funding as soon as possible.
Co-Chair Bishop MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Olson, Wielechowski, Wilson
OPPOSED: Hoffman, Stedman, Bishop
The MOTION FAILED (3/3).
2:08:05 PM
Senator Olson MOVED to ADOPT Amendment 16 (copy on file).
Co-Chair Bishop OBJECTED for discussion.
Senator Olson relayed that the amendment requested family
housing that would be used for married students at the
Alaska Technical Center in the hub community of Kotzebue.
He stated it was a family friendly amendment.
Co-Chair Stedman thought the amendment related to a housing
issue in the Northwest Arctic Borough and wondered if it
was not the same issue being faced with all schools, public
safety, and nursing. He wondered if the legislature was
looking to the department to expend the available funds in
a logical order and then return the following year with
items in a ranked order of urgency for the issue. He
thought there had been discussion of future legislation
that proposed to put in a program similar to the harbor
matching grant fund or the library grant fund whereby the
department ranked the needs around the state. He mentioned
the school major maintenance fund. He mentioned making the
fairest allocation around the state, so the funds went to
the most-needed areas. He thought it was good that housing
issues were pointed out in the early so that areas could
get on the list and addressed.
Senator Olson thanked Co-Chair Stedman for his comments. He
thought the discussion of housing for public safety and
teachers did not include mention of married student
housing.
Co-Chair Bishop followed up on Co-Chair Stedman's and
Senator Olson's comments and noted he was going to pull the
amendment aside as part of a package he would put together.
He did not see why married student housing could not be
incorporated into the legislation.
Co-Chair Bishop MAINTAINED his OBJECTION.
2:11:35 PM
AT EASE
2:12:28 PM
RECONVENED
Senator Olson MOVED to WITHDRAW Amendment 16. There being
NO OBJECTION, it was so ordered.
2:12:53 PM
Senator Olson MOVED to ADOPT Amendment 17 (copy on file).
Co-Chair Bishop OBJECTED for discussion.
Senator Olson noted that there was a correction to the
amendment, which was not necessarily for the public safety
building and facility in Selawik, but would go to the
Northwest Arctic Borough. He discussed disastrous fires in
rural Alaska and highlighted four deaths in a recent fire
in Selawik. The firefighting equipment was inoperable due
to being stored outside. The amendment proposed funds for a
heated facility for the equipment so it could be used in
future fires.
Co-Chair Bishop MAINTAINED his OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Wielechowski, Olson
OPPOSED: Wilson, Hoffman, Bishop, Stedman
The MOTION FAILED (2/4).
2:14:38 PM
AT EASE
2:15:00 PM
RECONVENED
Co-Chair Bishop relayed that the amendments were concluded
at the committee would recess to the call of the chair.
2:15:09 PM
RECESSED
4:56:22 PM
RECONVENED
Co-Chair Bishop adjourned the meeting.
ADJOURNMENT
4:56:32 PM
The meeting was adjourned at 4:56 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 164 Amendments Packet 050222.pdf |
SFIN 5/2/2022 1:00:00 PM |
SB 164 |