Legislature(2023 - 2024)SENATE FINANCE 532
04/05/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB187 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 187 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 5, 2024
9:41 a.m.
9:41:49 AM
CALL TO ORDER
Co-Chair Hoffman called the Senate Finance Committee
meeting to order at 9:41 a.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
Senator Donny Olson, Co-Chair
ALSO PRESENT
Tim Grussendorf, Staff to Senator Lyman Hoffman.
SUMMARY
SB 187 APPROP: CAP; REAPPROP
SB 187 was heard and HELD in Committee for
further consideration.
Co-Chair Hoffman discussed the agenda.
SENATE BILL NO. 187
"An Act making appropriations, including capital
appropriations and other appropriations; making
reappropriations; making appropriations to capitalize
funds; and providing for an effective date."
9:42:13 AM
Co-Chair Hoffman relayed that the committee would be
introducing the first Committee Substitute (CS) for the
capital budget.
Co-Chair Stedman MOVED to ADOPT proposed committee
substitute for SB 187, Work Draft 33-GS2491\B (Dunmire,
4/4/24). There being NO OBJECTION, it was so ordered.
9:43:07 AM
TIM GRUSSENDORF, STAFF TO SENATOR LYMAN HOFFMAN, discussed
the CS. He referenced Attachment B, and four other
documents produced by the Legislative Finance Division
(LFD) entitled Attachment A, Attachment C, Attachment D,
and Attachment E (copy on file). He relayed that staff had
joint meetings with the administration and agencies, as
well as the Office of Management and Budget (OMB), the
Legislative Finance Division (LFD), and finance committee
counterparts in the House. He noted that there was staff
from LFD available to speak to any questions that might
arise.
Mr. Grussendorf referenced Attachment B, and made note of
Section 1, known as the numbers section. The section
removed some of the Undesignated General Funds (UGF) and
featured 11 items with a reduction of $63.4 million. He
highlighted the first project listed, Advance Commercial
Investment in the Alaska LNG Project and Maintain Project
Assets in Ready Status. He identified that the project was
from the Alaska Gasline Development Corporation (AGDC) and
signified a reduction of $4.5 million.
Mr. Grussendorf highlighted a $2.5 million item for the
Alaska Travel Industry Association (ATIA), which was not a
reduction but rather funds being moved to the operating
budget. He listed a project for $2.2 million for statewide
security doors and windows in the Department of Corrections
(DOC). The fourth project, also for DOC, was for Statewide
Security Perimeter Fences and Gates Upgrade. Item 5
proposed $500,000 for the Alaska Military Youth Academy
safety and security preparedness. He listed a reduction of
$3.575 million in the Department of Natural Resources (DNR)
for Silviculture Treatments and Precommercial Thinning to
Boost the Timber Industry.
Mr. Grussendorf continued to address the items listed on
Attachment B. He listed a $6.2 million increment for the
Pilatus PC12NG Aircraft Acquisition in the Department of
Public Safety (DPS). He cited a $25 million item for the
Alaska Housing Finance Corporations (AHFC) Down Payment
Assistance Grant Program. In the Department of
Transportation and Public Facilities (DOT) there was a
$4.35 million increment for Copper River Highway Wood
Canyon Bridges and Trails. He listed a project involving
achieving Research 1 status for the University of Alaska
Fairbanks (UAF). He noted that the governor had proposed to
fund the item with $10 million in UGF and $10 million of
University receipts. The Senate and current CS proposed to
move all $20 million to University receipts.
Mr. Grussendorf highlighted that the last project was the
only project that fell in the match category, which was
the Alaska Railbelt Carbon Capture and Sequestration
Project at UAF, for $2.2 million and $8.8 million in
matching funds.
9:47:23 AM
Mr. Grussendorf continued his remarks. He noted that also
in the numbers section, there was a placeholder for surface
transportation. He explained that there would be a
Statewide Transportation Improvement Program (STIP)
amendment to be coming from the Office of the Governor on
the following Tuesday, which would be incorporated into the
next CS.
Co-Chair Hoffman noted that the $25 million for housing was
to address a statewide issue, and the committee would be
working with the governors office to see what could be
done differently from what was proposed in the budget. The
$25 million had been reduced. The funds had been earmarked
for down payments for new home buyers but would not be used
for any new housing. He emphasized that new housing was
needed in the state and the committee was looking at what
could be done.
Senator Merrick asked Mr. Grussendorf to repeat his remarks
about the $8.8 million in federal funding for carbon
capture, and asked if the state needed to provide $2.2
million in matching funds.
Mr. Grussendorf relayed that more communication was needed
with UAF and noted that UAF had mentioned partnership in
the project explanation. He explained the need for further
detail in the project description.
Co-Chair Hoffman explained that it was the committee's
intent to work through the capital budget process and have
a new CS early the following week, with the expectation of
floor debate in one week.
9:50:15 AM
Mr. Grussendorf communicated that the CS proposed to fund
the top projects that agencies had brought forward. He
addressed the Supplemental Section in Section 4 of the bill
starting on page 22. The CS did not change all the
governors amendments and reappropriations. The only change
to the section was for DOT and pertained to Dalton Highway
Heavy Maintenance. The department had requested $8 million
for the project on page 23 of the bill, and the CS reduced
the amount to $4 million. He explained that the rationale
was that $4 million would get the project to July 1, and
the next budget would replenish the fund. If more funding
was needed, funds could be added to the operating budget in
the following cycle.
Mr. Grussendorf addressed reappropriations, which started
in Section 7. He reiterated that the CS did not remove any
of the governors proposed reappropriations. The committee
had added four reappropriations that were not in the
original bill. He referenced Section 14, page 29 of the
bill, with a reappropriation from the Bering Sea
Fishermans Project from the previous year. The funds were
proposed to be reappropriated to the Department of Fish and
Game (DFG) to support the Chinook genetics study that had
been requested of the department. He noted that DFG was in
a good position to complete the study and that both parties
were in agreement.
Mr. Grussendorf listed that the final three additional
reappropriations were projects from individual legislative
districts in which money had lapsed. He listed Section 15,
page 29, for a reappropriation to the Wrangell Emergency
Operations. Section 16 on page 30 of the bill had a
reappropriation for the Anchorage Yarman Road Project. The
final project, in Section 17, would move lapsed funding to
the Yuut Elitnaurviat-Peoples Learning Center for a
damaged lift station.
9:53:50 AM
Mr. Grussendorf noted that there was a reduction in General
Funds of $63.395 million. The total supplemental budget was
$23.7 million in UGF, $8.9 million in Designated General
Funds (DGF). Other state funds totaled $11.13 million, and
federal receipts added up to $251 million for a total of
$295 million for the supplemental portion of the bill. For
the current years proposed capital items, the CS had a UGF
total $233.7 million, $87.7 million in DGF, other state
funds in the amount of $184.2 million, and $3 billion in
federal receipts for a grand total of $3.514 billion.
Co-Chair Hoffman set the bill aside.
SB 187 was heard and HELD in Committee for further
consideration.
Co-Chair Hoffman discussed the agenda for the next meeting.
ADJOURNMENT
9:55:54 AM
The meeting was adjourned at 9:55 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 187 work draft version B.pdf |
SFIN 4/5/2024 9:00:00 AM |
SB 187 |
| SB 187 Attachment A SCS1 to Gov ProjectCompareByAgency.pdf |
SFIN 4/5/2024 9:00:00 AM |
SB 187 |
| SB 187 Attachment B Senate reductions CS1.pdf |
SFIN 4/5/2024 9:00:00 AM |
SB 187 |
| SB 187 Attachment C SFIN CS1 ProjectCompareByAgency.pdf |
SFIN 4/5/2024 9:00:00 AM |
SB 187 |
| SB 187 Attatchment D SFIN CS1 StatewideTotals.pdf |
SFIN 4/5/2024 9:00:00 AM |
SB 187 |
| SB 187 Attachment E SFIN CS1 Supplementals ProjectCompareByAgency.pdf |
SFIN 4/5/2024 9:00:00 AM |
SB 187 |