Legislature(2023 - 2024)SENATE FINANCE 532
04/25/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| Fiscal Update: Alexei Painter, Director, Legislative Finance Division | |
| HB268 || HB270 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| += | HB 268 | TELECONFERENCED | |
| += | HB 270 | TELECONFERENCED | |
SENATE FINANCE COMMITTEE
April 25, 2024
9:20 a.m.
9:20:22 AM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee
meeting to order at 9:20 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
Alexei Painter, Director, Legislative Finance Division.
SUMMARY
CSHB 268(FIN)am
APPROP: OPERATING BUDGET; CAP; SUPP; AM
SCS CSHB 268(FIN) was REPORTED OUT of committee
with six "do pass" recommendations and one "no
recommendation."
CSHB 270(FIN)
APPROP: MENTAL HEALTH BUDGET
SCS CSHB 270(FIN) was REPORTED OUT of committee
with seven "do pass" recommendations.
^FISCAL UPDATE: ALEXEI PAINTER, DIRECTOR, LEGISLATIVE
FINANCE DIVISION
9:21:47 AM
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
discussed the presentation, "Fiscal Update" (copy on file).
He pointed to slide 2, "FY24 BudgetSenate Finance." He
detailed the numbers of the slide.
Co-Chair Stedman asked for an explanation of the energy
relief.
Mr. Painter replied that it would "lock in" the amount
based on the Spring Forecast.
Co-Chair Stedman queried the estimated energy relief check
per citizen within the Senate draft.
Mr. Painter responded that the $143.3 million would be
approximately $222 per person based on the projected number
of dividend recipients.
9:25:37 AM
Senator Kiehl queried the oil price for the proposed $1000
per person in energy relief.
Mr. Painter replied that the value would be about $400
million, so there would need to be a price of over $100 per
barrel of oil.
Co-Chair Stedman wondered whether reducing expenditures
would result in an increased energy relief check.
Mr. Painter responded that it might, but noted that the
supplemental budget had a surplus in FY 24.
Mr. Painter addressed slide 3, "FY25 BudgetSenate
Finance." He stated that the committee substitute was
outlined within the slide.
Mr. Painter looked at slide 4, "Outstanding Items":
• Fiscal notes (added in Conference Committee)
HB 193 (Broadband) signed by Governor with
$39.4 million fiscal note
SB 170 (Senior Benefits) has $23.5 million
fiscal note
Other bills passing one body have combined
$14.5 million UGF fiscal notes as of 4-19-24
• Salary adjustments: four unions currently
negotiating
Supervisory Unit, Correctional Officers, Labor,
Trades and Crafts, and new University of Alaska
Graduate Student Union
If the three non-UA unions agreed to a 5%
increase, LFD estimates the UGF cost would be at
least $26.0 million
• House additions to capital budget
9:33:17 AM
Mr. Painter highlighted slide 5, "FY25 Senate Budget with
Added Items." He detailed the numbers within the slide.
Co-Chair Stedman wondered whether the number would return
to net zero in conference committee.
Mr. Painter agreed.
9:35:09 AM
Co-Chair Stedman asked about the supplemental budget
adjustments.
Mr. Painter replied that there was an addition of $320.9
million of UGF to the supplemental budget.
Co-Chair Stedman asked about the supplemental budget
related to operating agencies.
Mr. Painter replied the majority of the supplemental budget
was directed to fire suppression, and the remainder went to
the Department of Corrections (DOC).
Co-Chair Stedman relayed that there were additional billing
to the committee of approximately $130 million. He stressed
that the committee needed to be prepared for high
supplemental requests, requiring some "cushion" for the
upcoming bills.
Mr. Painter addressed slide 6, "FY24 and FY25 Senate
Finance Fiscal Summary."
Mr. Painter discussed slide 7, "House Fiscal Summary plus
Capital Budget."
Co-Chair Stedman wondered whether there was an assertion
that required cutting $268 million in order to have a
dividend of $1.1 billion.
Mr. Painter replied in the affirmative.
Co-Chair Hoffman noted that the CBR could also be used, but
noted that it would be improbable to get a CBR vote.
9:40:06 AM
Co-Chair Stedman requested the approximate balance of the
CBR, and its recommended target.
Mr. Painter replied that at the beginning of FY 24, the
balance of the CBR was $2.5 billion, which was $200 million
than what was estimated. He remarked that without a
withdrawal, there would be some interest earnings by about
$200 million. He stated that cash flow required about $500
million.
Co-Chair Stedman surmised that the CBR should continue to
increase by at least $1 billion to prepare for fluctuating
oil prices.
CS FOR HOUSE BILL NO. 268(FIN) am(brf sup maj fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making supplemental appropriations and
reappropriations; and providing for an effective
date."
CS FOR HOUSE BILL NO. 270(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."
9:43:48 AM
Senator Merrick MOVED to ADOPT the committee substitute for
CSHB 268(FIN)am, Work Draft 33-GH2492\T (Marx, 2/24/24).
Co-Chair Stedman OBJECTED for discussion.
Co-Chair Stedman REMOVED his OBJECTION. There being NO
further OBJECTION, it was so ordered.
Senator Kiehl MOVED to REPORT SCS CSHB 268(FIN) from
committee with individual recommendations, and MOVED that
the Divisions of Legislative Legal and Legislative Finance
make technical and conforming changes to the bill as
necessary. There being NO OBJECTION, it was so ordered.
9:45:28 AM
AT EASE
9:46:09 AM
RECONVENED
Senator Wilson MOVED to REPORT SCS CSHB 270(FIN) from
committee with individual recommendations, and MOVED that
the Divisions of Legislative Legal and Legislative Finance
make technical and conforming changes to the bill as
necessary. There being NO OBJECTION, it was so ordered.
SCS CSHB 268(FIN) was REPORTED OUT of committee with six
"do pass" recommendations and one "no recommendation."
SCS CSHB 270(FIN) was REPORTED OUT of committee with seven
"do pass" recommendations.
ADJOURNMENT
9:47:38 AM
The meeting was adjourned at 9:47 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 042524 SFIN Fiscal Update 4-25-24.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 HB 270 |
| HB 268 work draft version T.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 |
| HB 268 HB 270 042524 SFinSup Agency Summary - UGF Only - F.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 HB 270 |
| HB 268 HB 270 042524 SFinSup Agency Summary - All Funds - E.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 HB 270 |
| HB 268 HB 270 042524 SFinSup Statewide Totals - All Funds - D.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 HB 270 |
| HB 268 HB 270 042524 SFin Agency Summary - UGF Only - C.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 HB 270 |
| HB 268 HB 270 042524 SFin Agency Summary - All Funds - B.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 HB 270 |
| HB 268 HB 270 042524 SFin Statewide Totals - All Funds - A.pdf |
SFIN 4/25/2024 9:00:00 AM |
HB 268 HB 270 |