Legislature(2023 - 2024)SENATE FINANCE 532
05/10/2023 09:00 AM 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 | |
| SB41 | |
| HB39 | |
| SB95 | |
| SB140 | |
| SB99 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 41 | TELECONFERENCED | |
| += | HB 39 | TELECONFERENCED | |
| + | SB 95 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 140 | TELECONFERENCED | |
| += | SB 99 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
May 10, 2023
9:29 a.m.
9:29:02 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:29 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
None
ALSO PRESENT
Tim Grussendorf, Staff, Senator Lyman Hoffman; Pete
Ecklund, Staff, Senator Bert Stedman; Alexei Painter,
Director, Legislative Finance Division; Sorcha Hazelton,
Staff, Senator Kelly Merrick; Ken Alper, Staff, Senator
Donny Olson; Senator Bill Wielechowski, Sponsor.
SUMMARY
SB 41 APPROP: CAPITAL/SUPPLEMENTAL
SB 41 was HEARD and HELD in committee for further
consideration.
SB 95 LICENSE PLATES: SPECIALTY ORGANIZATIONS
SB 95 was HEARD and HELD in committee for further
consideration.
SB 99 FINANCIAL LITERACY COURSE IN SCHOOLS
CSSB 99(EDC) was REPORTED out of committee with
three "do pass" recommendations and with three
"no recommendation" recommendations and with one
previously published fiscal impact note:
FN1(EED).
SB 140 INTERNET FOR SCHOOLS
CSSB 140(FIN) was REPORTED out of committee with
four "do pass" recommendations and with two "no
recommendation" recommendations and with a
forthcoming fiscal impact note from the
Department of Education and Early Development.
CSHB 39(FIN) am(brf sup maj fld)(efd fld)
APPROP: OPERATING BUDGET/LOANS/FUND; SUPP
CSHB 39(FIN) was HEARD and HELD in committee for
further consideration.
Co-Chair Hoffman discussed the agenda. He relayed that the
committee would consider the capital budget, after which it
would consider the operating budget before taking up bills
for consideration.
SENATE BILL NO. 41
"An Act making appropriations, including capital
appropriations and other appropriations; making
supplemental appropriations; making appropriations to
capitalize funds; and providing for an effective
date."
9:29:51 AM
TIM GRUSSENDORF, STAFF, SENATOR LYMAN HOFFMAN, introduced
himself.
9:30:31 AM
AT EASE
9:30:38 AM
RECONVENED
Senator Kiehl MOVED to ADOPT proposed committee substitute
for SB 41, Work Draft 33-GS1348\Y (Dunmire, 5/4/23).
Co-Chair Hoffman OBJECTED for discussion.
Mr. Grussendorf discussed proposed changes to the bill. He
referenced two documents from the Legislative Finance
Division (LFD) labeled "Document A" and "Document B" (copy
on file). He identified that there were nine changes in the
proposed committee substitute (CS) from the previous
version of the bill. None of the changes involved
Undesignated General Funds (UGF), nor were any changes
related to earmarks for any individual legislator.
Mr. Grussendorf addressed Document A. The first change (on
Section 10 on page 42, line 5) was a reappropriation from
an existing project in the Department of Administration
(DOA) and was being reappropriated towards the IRIS cloud
migration. The second change (on Section 19, page 46, line
25) was a reappropriation for the Legal Services
Corporation Community Justice Worker Training Hub for
$500,000. The next change (Section 19, page 47, line 1) was
for the Arctic Winter Games Team Alaska for state
participation. The grant was for $500,000 and included the
2024 and 2026 games and two years' worth of travel for
participants in the Arctic Winter Games. He listed the next
item (on Section 1, page 4, line 27), for Skagway rockslide
mitigation, which used Cruise Ship Vessel Tax funds in the
amount of $1 million. He noted that there was a rock
hanging over the docks in Skagway that was inhibiting
access.
Mr. Grussendorf continued his discussion of the changes to
the bill. Page 3 of the document (on Section 1, Page 1,
line 19) included funds for the Snowmobile Trail
Development Grants which included Designated General Funds
(DGF) paid by for receipts from snow machine registration.
The grants were in the Department of Natural Resources.
There was some language change that was also DGF and
involved signage to address violations on state land.
Mr. Grussendorf identified a change to the bill on page 4
of the document involving the Department of Transportation
and Public Facilities (DOT) Emergency Weather and
Catastrophic Events Fund. The fund balance was $11.7
million and was capitalized through reappropriations
through the department. The level was reduced through two
reductions. He identified a reduction of $3.1 million for
the Capital Improvement Fund, used by the legislature to
fund the capital budget. He asserted that it did not make
sense for the department to reappropriate the funds and the
reappropriation was denied. Additionally, a reappropriation
of $26,000 from the Harbor Grant Fund was denied and the
funds were returned. He added that there was intent
language for the Emergency Weather and Catastrophic Events
Fund, wherein funds could be used for overtime and
additional personnel, much the same as funds were used at
the Anchorage Airport in light of recent snow events.
Co-Chair Hoffman WITHDREW his objection. There being NO
OBJECTION, it was so ordered. The CS for SB 41 was ADOPTED.
SB 41 was HEARD and HELD in committee for further
consideration.
Co-Chair Hoffman handed the gavel to Co-Chair Stedman.
9:36:05 AM
AT EASE
9:37:13 AM
RECONVENED
CS FOR HOUSE BILL NO. 39(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; repealing
appropriations; amending appropriations; making
reappropriations; and making supplemental
appropriations."
9:37:14 AM
Senator Wilson MOVED to ADOPT proposed committee substitute
for CSHB 39(FIN), Work Draft 33-GH1347\P (Marx, 5/5/23).
Co-Chair Stedman OBJECTED for discussion.
9:38:01 AM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, discussed the
changes proposed in the CS. He read from a document titled
"Changes from HB 39 version H (SCS2) to version P (SCS3)"
(copy on file):
• Technical correction to the structure of the FY23
legislature budget
• DOH cost allocation assessment tool - fund as an
FY24-26 multi-year, not a temporary increment (Inc T)
this is already in the Senate budget, just changing
how it is funded
o Dollar amounts are unchanged.
o Medicaid Services Cost Allocation assessment
tool $2.04 million fed, $227 thousand UGF match
o Senior and Disabilities Services Cost
Allocation Assessment Tool - $698 thousand fed,
420 thousand UGF match
Update the estimate in the FY23
judgments/settlements to include a new $115 thousand
settlement (dept of law)
• Fund the Alaska Gasline Development Corporation
(AGDC) at the FY24 Unrestricted General Fund requested
amount as a one-time item (3,086.1)
• Add two fire standards council positions (Fire
Training Specialist II, Fire Training Administrator)
$250 thousand UGF
head-start addition of $5 million UGF as a one-time
item (above the $6.85 million UGF in the head-start
base budget)
• Office of the Governor Office of Management and
Budget up to $5 million in FY23 lapse for
distribution by OMB to central services agencies if
cost allocation rates fall short of full
reimbursement.
Co-Chair Stedman WITHDREW his objection. There being NO
further OBJECTION, it was so ordered. The CS for CSHB
39(FIN) was ADOPTED.
Co-Chair Stedman relayed that the director of LFD would
offer a brief review of the states fiscal position. He
commented that the Senate was in discussions with the other
body and there would likely be a forthcoming CS or
amendments to consider.
9:41:24 AM
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
addressed a document entitled "Document C," (copy on file),
and informed that the document was updated from a previous
version the committee received. He pointed out the first
line, which showed the spring revenue forecast with a
$73/bbl price of oil. He identified that SCS 2 and SCS 3
had modified the Alaska Industrial Development and Export
Authority (AIDEA) dividend from the full amount, so the
$17.9 million showed up as a revenue reduction. He
continued that net fund transfers also took away from
revenue, resulting in about $6.26 billion of revenue
available. He listed that SCS 2, the previous version of
the bill, had agency operations at about $4.48 billion
which included the $175 million for K-12 education outside
the funding formula. There were no changes from the
previous version of the bill and SCS 3 in statewide items
or the UGF capital budget numbers.
Mr. Painter pointed out that the Permanent Fund Dividend
(PFD) also showed no change from the previous version of
the bill and was $881 million or 25 percent of the percent
of market value (POMV) draw. With the items together there
was an estimated $123 million surplus. The third Senate
Committee Substitute (SCS 3) added $8.3 million UGF to the
operating budget. The items that Mr. Ecklund reviewed
included $3.1 million to AGDC, $5 million to Head Start,
and $2500,000 to the Fire Standards Council. The fiscal
notes estimate had been revised from $7 million in the
previous version up to $26.4 million.
Mr. Painter explained that the reason for the change was
that the amendments made to the Base Student Allocation
bill had added about $12 million, and the elections bill
heard in committee the previous day had a capital fiscal
note of $5.7 million. Adding the two items together had
significantly increased the estimate for fiscal notes,
which was still evolving and did not include all of the
bills in the finance committees but represented a working
estimate for those bills that were considered likely to
pass. He continued that the $22.7 million estimate shown
for Conference Committee additions represented the outside
high case if the higher House items were chosen for
everything. He summarized that line 15 showed a remaining
surplus of $65.5 million. He thought the previous summary
had shown a surplus of $93 million, the difference being
the higher fiscal note estimate and operating budget
additions. He noted that the surplus could potentially go
to an increase in the capital budget in the other body,
supplementals for next session, or a cushion in case oil
prices were lower than expected.
9:44:46 AM
Co-Chair Stedman asked what type of volatility in oil would
it take to eradicate the $65.5 million surplus.
Mr. Painter estimated that the amount would signify about
$1/bbl in oil price swing.
Co-Chair Stedman asked if Mr. Painter had absolute
confidence that the Department of Revenue accurately
predicted the oil price within a dollar. He thought it was
unlikely that the price would come within a dollar.
Co-Chair Stedman noted that the summary that Mr. Painter
had addressed had been circulated amongst the House Finance
Committee Co-chairs, the Speaker of the House, and Rules
Committee Chair. There was a slight change from the
previous days number due to the adjusted fiscal note
estimate. He described that the document was subject to
change with alterations with the budget. He thanked Mr.
Painter for his balanced budget presentation.
CSHB 39(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman handed the gavel to Co-Chair Olson.
9:46:27 AM
AT EASE
9:48:43 AM
RECONVENED
Co-Chair Olson relayed that the committee would consider
three bills: SB 95, SB 140, and SB 99.
SENATE BILL NO. 95
"An Act relating to special request specialty
organization registration plates; and providing for an
effective date."
9:49:06 AM
Co-Chair Olson relayed that it was the first hearing for SB
95 by Senator Merrick. The committee would consider a
Sectional Analysis.
Senator Merrick, Sponsor, thanked the committee for hearing
the bill, which was related to special request specialty
organization registration plates. She recounted that many
of the committee staff had stopped by her office for a
short description of the bill and had been in favor. She
contended that the legislature was always looking for ways
to make government more efficient and cost effective, which
SB 95 accomplished by tasking the Division of Motor
Vehicles (DMV) with the issuance of specialty plates and
removing the legislature from the process. She contended
that the bill saved the state money by passing the cost of
issuing the plates on to the organization, rather than
spending state funds.
Senator Merrick commented on the many significant issues
before the legislature, and that license plate legislation
took time from other pressing issues. She indicated that
both the Senate Rules chair and the Chair of the State
Affairs Committee had sponsored similar legislation in the
past. She was certain that the co-chairs had heard many
license plate bills in their tenure in the legislature. She
continued that SB 95 would not affect any existing
specialty plates, and the effective date of January 1,
2024, allowed for passage of any current license plate
legislation. She noted that due to an internet outage, DMV
was unavailable for questions.
9:51:24 AM
SORCHA HAZELTON, STAFF, SENATOR KELLY MERRICK, addressed a
Sectional Analysis document:
Section 1: Creates a new subsection in the Motor
Vehicle statutes, AS 28.10 181, to require the
Division of Motor Vehicles (DMV) to adopt regulations
allowing for the issuance of specialty organization
license plates sponsored by certain charitable and
government organizations within Alaska.
Section 2: Adds a new paragraph to AS 28.10.421 that
sets the fees for new plates and allows for other
fees.
Section 3: Provides an effective date of January 1,
2024.
Co-Chair Olson asked about changes to the bill made in the
Senate State Affairs Committee.
Ms. Hazelton explained that there was one change to the
bill made in the committee, that removed some of the
501(c)3 organizations that the federal government
recognized from being able to request the license plates.
The organizations were financial institutions and insurance
institutions.
Co-Chair Olson asked if someone was available to address
the fiscal notes.
Ms. Hazelton answered in the negative.
Co-Chair Olson set an amendment deadline for the following
day at 5 oclock p.m.
SB 95 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 140
"An Act relating to funding for Internet services for
school districts; and providing for an effective
date."
9:52:44 AM
Co-Chair Olson relayed that SB 140 was heard on Monday, and
the committee had a CS to consider.
Co-Chair Hoffman MOVED to ADOPT proposed committee
substitute for SB 140, Work Draft 33-LS0687\S (Klein,
5/9/23).
Co-Chair Olson OBJECTED for discussion.
9:53:32 AM
KEN ALPER, STAFF, SENATOR DONNY OLSON, addressed Version S
of the bill. He noted that the only change in the CS was
the addition of Section 2, with an effective date of
January 1, 2024. He offered the context that the bill had a
significant fiscal note to help schools build up broadband
internet capacity. He noted that with respect to the
federal funding cycle and several grants coming in
associated with the bill, no money needed to be spent in FY
24. By pushing the effective date back to the following
year and being a part of the next federal funding cycle,
any associated state spending would not kick in until
sometime in FY 25.
Co-Chair Olson WITHDREW his objection. There being NO
OBJECTION, it was so ordered.
Senator Bishop relayed that he had been getting interest in
the bill from his rural district. He was appreciative of
the bill and how it would improve student outcomes because
of the download speeds and ability to do multiple classroom
projects at the same time.
Co-Chair Hoffman MOVED to report CSSB 140(FIN) out of
Committee with individual recommendations and the
accompanying fiscal note.
CSSB 140(FIN) was REPORTED out of committee with four "do
pass" recommendations and with two no recommendation
recommendations and with a forthcoming fiscal impact note
from the Department of Education and Early Development.
SENATE BILL NO. 99
"An Act establishing a financial literacy education
course for public schools; and providing for an
effective date."
9:55:49 AM
Co-Chair Olson relayed that SB 99 was previously heard by
the committee on April 24, at which time public testimony
was taken. There was a request for amendments, and none had
been submitted.
9:56:16 AM
SENATOR BILL WIELECHOWSKI, SPONSOR, explained that the bill
would require financial literacy to be taught in Alaskan
schools. He relayed that the bill had been changed somewhat
substantially with suggestions made by superintendents and
various school boards across the state. He clarified that
the content was not required to be offered in one specific
course and could be spread across courses.
Co-Chair Olson asked if the sponsor was in favor of the
changes that were made.
Senator Wielechowski answered "yes."
Senator Bishop MOVED to report CSSB 99(EDC) out of
Committee with individual recommendations and the
accompanying fiscal note. There being NO OBJECTION, it was
so ordered.
CSSB 99(EDC) was REPORTED out of committee with three "do
pass" recommendations and with three no recommendation
recommendations and with one previously published fiscal
impact note: FN1(EED).
Co-Chair Olson discussed the agenda for the afternoon
meeting.
ADJOURNMENT
9:57:50 AM
The meeting was adjourned at 9:57 a.m.