Legislature(2021 - 2022)SENATE FINANCE 532
06/10/2021 04:00 PM Senate CONFERENCE COMMITTEE ON HB69 AND HB71
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 69 | TELECONFERENCED | |
| += | HB 71 | TELECONFERENCED | |
32nd ALASKA STATE LEGISLATURE
FIRST SESSION
SPECIAL SESSION
CONFERENCE COMMITTEE ON HB 69 and HB 71
June 10, 2021
4:03 p.m.
4:03:10 PM
CALL TO ORDER
Chair Foster called the Conference Committee meeting on HB
69 and HB 71 to order at 4:03 p.m.
MEMBERS PRESENT:
House:
Representative Neal Foster, Chair
Representative Kelly Merrick
Representative Bart LeBon (via teleconference)
Senate:
Senator Bert Stedman, Vice-Chair
Senator Click Bishop
Senator Donny Olson
MEMBERS ABSENT
None
ALSO PRESENT:
Alexei Painter, Director, Legislative Finance Division.
SUMMARY
HB 69 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 69 was HEARD and HELD in committee for further
consideration.
HB 71 APPROP: MENTAL HEALTH BUDGET
HB 71 was HEARD and HELD in committee for further
consideration.
CS FOR HOUSE BILL NO. 69(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; amending
appropriations; and making capital appropriations,
supplemental appropriations, and reappropriations."
SCS CSHB 69(FIN) AM S
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making capital appropriations,
supplemental appropriations, and reappropriations; and
providing for an effective date."
and
CS FOR HOUSE BILL NO. 71(FIN) am
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making
supplemental appropriations; and providing for an
effective date."
SENATE CS FOR CS FOR HOUSE BILL NO. 71(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making capital
appropriations and supplemental appropriations; and
providing for an effective date."
4:03:46 PM
Chair Foster invited Alexei Painter, Director of the
Legislative Finance Division, to join the committee at the
table. He noted that the committee would be addressing open
items in HB 69 and HB 71 based on the motion sheets
distributed to members and dated June 10th (copy on file)
for the departments of:
FY 22 Operating Budget:
Department of Commerce, Community and Economic
Development
Department of Corrections
Department of Education and Early Development
Department of Military and Veterans Affairs
Department of Natural Resources
Department of Revenue
Department of Transportation and Public Facilities
Language and Other Appropriations
FY 21 Supplemental Operating Budget:
Department of Education and Early Development
^DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
4:04:47 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Commerce, Community and Economic Development
budget:
Item 1 Senate
Item 2 House
Item 3 House
Item 4 Open
Senator Olson OBJECTED for discussion. He asked for more
detail on item 1 - the reduction of the subsidy to Alaska
Legal Services. He queried how the entity would make up the
gap in funding.
4:05:38 PM
AT EASE
4:06:03 PM
RECONVENED
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained that the Senate position reduced the general fund
subsidy amount by $50,000 from $450,000 to $400,000. He
could not comment on how the gap would be filled, as it was
a non-profit.
Chair Foster added that there were additional funds for
Alaska Legal Services in the language section of the bill
in the amount of $311,000. He asked if the figure was
correct.
Mr. Painter responded, "That's correct."
Chair Foster thought the governor had not included any
funding in the language section in his budget proposal. He
asked Mr. Painter if he was correct.
Mr. Painter confirmed that the governor had included
$311,00 in the language section. However, he cut the
$450,000. The Senate put in $400,000 and the House added
$450,000.
Chair Foster clarified that the governor did not put the
$450,000 in the numbers section. The item represented a
reduction of $50,000 from $450,000.
Senator Olson wanted to know what the plan was if the
entity came up short-funded.
Senator Olson WITHDREW his OBJECTION.
There being NO further OBJECTION, items 1 through 4 within
the Department of Commerce, Community and Economic
Development budget were ADOPTED.
^DEPARTMENT OF CORRECTIONS
4:07:52 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Corrections budget:
Item 1 House
Item 2 Senate
Item 3 Senate
Item 4 Senate All Items
Item 5 Senate Both Items
Item 6 Senate
Item 7 House
Item 8 Senate
Item 9 Senate Modify, House structure.
Item 10 Senate Modify, House structure.
Item 11 House
Item 12 Senate
Item 13 Senate Modify, House structure.
Item 14 Senate Modify, House structure.
Item 15 House
Item 16 Senate
Item 17 Senate
Senator Olson OBJECTED to item 4. He referred to page 2 of
the cut sheets. He pointed to population management. He
asked for the meaning of municipal manday billings.
Mr. Painter responded that when municipal governments
utilized state prisons for their inmates, the state was
paid a rate. The general fund program receipts reflected
the funding that came from local governments for using
state prisons.
Senator Olson asked if they were successful in securing the
funds for municipalities.
Mr. Painter replied that they received funds. The increase
reflected an increased rate that was being charged for both
municipal and federal government.
Senator Olson asked if the municipalities were in favor of
the increase in the rate.
Mr. Painter indicated that the item did not impact the
rate. It was tied to the actual cost incurred by the
department. The rate covered the full cost. The item dealt
with receipt authority. Having the receipt authority
allowed the department to spend the funds. Otherwise, as
general fund program receipts they would lapse to the
general fund.
Senator Olson WITHDREW his OBJECTION.
There being NO further OBJECTION, items 1 through 17 within
the Department of Corrections budget were ADOPTED.
^DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
4:11:10 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Education and Early Development budget:
Item 3 House
Item 4 House
Item 5 House Modify, -$2.5 Million.
Representative LeBon OBJECTED for discussion. He asked for
background information on item 5 regarding the reduction
and the program itself.
Mr. Painter responded that item 5 and the House amount
would have provided a multi-year appropriation for FY 22
and FY 23 of $5 million total. The Conference Committee
modification reduced the amount in half. It equaled
approximately $1.25 million per year. He believed it was in
addition to the existing pre-kindergarten grants in the
numbers section.
Representative LeBon asked if the money was targeted for
select districts or school programs or whether it was
broadly applied across all districts. He wondered how the
money was allocated.
Mr. Painter replied that the pre-kindergarten grants were
part of a competitive grant program that were awarded to
kindergarten providers that were often non-profits. Several
years prior, the program was restructured to target
development programs rather than ongoing support. He could
not speak to the intent behind the additional item.
Representative LeBon asked which school districts were
operating pre-k programs. It sounded like the programs were
outside of school districts. He asked if he was correct.
Mr. Painter was unsure whether they were exclusively
outside of school districts. He was aware that many of the
programs were operated by non-profits.
Representative LeBon WITHDREW his OBJECTION.
Senator Olson OBJECTED for discussion. He asked about the
distribution of the development programs across the state.
Mr. Painter did not have the most recent list of grantees
with him, but he could supply one. The list he had seen in
the past included entities across the state. However, he
could not speak to where they were in the most recent year.
He could get the information to the committee.
Senator Olson asked when Mr. Painter could provide the
information.
Mr. Painter was unsure how long it would take to receive
the information from the department.
Senator Olson WITHDREW his OBJECTION. He would wait for the
report.
There being NO further OBJECTION, items 3 through 5 within
the Department of Education and Early Development budget
were ADOPTED.
^DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
4:14:52 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Military and Veterans Affairs budget:
Item 1 House
Representative LeBon OBJECTED for discussion. He
appreciated the support for the Civil Air Patrol. He
thought highly of the program and was glad to see the state
supporting it. Most of the money was in support of the one
dozen Civil Air Patrol locations around the state. He
thought the level of support was important to the program.
Representative LeBon WITHDREW his OBJECTION.
There being NO further OBJECTION, item 1 within the
Department of Military and Veterans Affairs budget was
ADOPTED.
Senator Olson commented in support of the increment.
^DEPARTMENT OF NATURAL RESOURCES
4:16:24 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Natural Resources budget:
Item 3 Senate
Item 4 House
Item 5 House
There being NO OBJECTION, items 3 through 5 within the
Department of Natural Resources budget were ADOPTED.
^DEPARTMENT OF REVENUE
4:16:48 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Revenue budget:
Item 1 House
Representative LeBon OBJECTED for discussion. He suggested
that the focus of the addition of audit staff positions had
to do with corporate income tax returns. He wondered if it
was due to audits not being completed in a timely manner,
wanting to initiate additional audits, or both.
Mr. Painter replied that the item was a subcommittee
addition with the intent to audit more returns. The
corporate income tax for non-petroleum corporations was the
focus, as the state received many returns. The state did
random samples or follow-up audit leads. The increment
would provide more capacity for additional audits.
Representative LeBon asked if the administration supported
the addition.
Mr. Painter responded that he could not speak for the
administration, as it was not part of its budget.
Representative LeBon clarified that the subcommittee felt
the need. He asked if the commissioner of the Department of
Revenue indicated the need for additional positions.
Chair Foster asked if Mr. Painter recalled the discussion
in the Department of Revenue subcommittee.
Mr. Painter could not speak on behalf of the department.
Senator Olson asked if the subcommittee recommendation came
from the House or the Senate.
Chair Foster responded that it was the House subcommittee.
Chair Merrick relayed that it was her understanding in
committee that the positions would pay for themselves. The
department had previously added auditors and was able to
find more income than the audit salaries. She suggested
that while it appeared as an increment, the cost of
additional staff might save the state money in the long
run.
Representative LeBon WITHDREW his OBJECTION.
There being NO further OBJECTION, item 1 within the
Department of Revenue budget was ADOPTED.
^DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
4:20:01 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Transportation and Public Facilities budget:
Item 11 House
Item 12 Senate
Item 13 Senate Modify, -$1.775 Million.
Item 16 House
Representative LeBon OBJECTED for discussion. He asked
whether items 11 and item 12 were related. There was a
reduction in item 11 from a seasonal maintenance position
for the Dalton Highway. He was trying to understand whether
the central maintenance station serviced the Dalton Highway
in any way.
Chair Bishop responded in the negative to Representative
LeBon's question regarding item 11. The central maintenance
station was not connected to the Dalton Highway. The
station had been closed for about 8 years.
Chair Foster noted that the Senate's position regarding the
seasonal position for the Dalton Highway was to add
$50,000. The Conference Committee was not adopting the
increase of $50,000 presently.
Representative LeBon was concerned with the maintenance of
the Dalton Highway. He had heard concerns from the Alaska
Truckers Association about the quality of the highway and
the wear and tear on equipment traveling up and down the
highway. It was concerning to him that the legislature had
not addressed the problem as aggressively as it could have.
Representative LeBon WITHDREW his OBJECTION
Senator Olson noted that the Dalton Highway went through a
large portion of his district. However, he had not heard
any significant complaints. He suggested, though, that
there had been ongoing issues related to the maintenance of
the highway.
There being NO further OBJECTION, items 11, 12, 13, and 16
within the Department of Transportation and Public
Facilities budget were ADOPTED.
^LANGUAGE AND OTHER APPROPRIATIONS
4:23:22 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Language and Other Appropriation sections of the budget:
Item 5 Senate Modify, change fund code 1171
(Restorative Justice) to fund code 1004 UGF.
Chair Foster noted that the section dealt with salary
adjustments.
There being NO OBJECTION, item 5 within the Language and
Other Appropriation sections of the budget was ADOPTED.
^DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT: FY 21
SUPPLEMENTAL OPERATING BUDGET
4:24:13 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Education and Early Development FY 21
supplemental operating budget:
Item 2 Senate
Representative LeBon OBJECTED for discussion. He asked for
further clarification.
Mr. Painter explained the item was a request by the
governor to add funding for Mt. Edgecumbe for three
different federal bills that had passed that provided
funding to school districts. Since Mt. Edgecumbe was a
state-run school, it was appropriate for the school to have
direct federal receipt authority. Whereas the department
was a pass through recipient for the other schools. The
item covered funding going to Mt. Edgecumbe from the
Coronavirus Aid, Relief, and Economic Security (CARES) Act,
Coronavirus Response and Relief Supplemental Appropriations
Act (CRRSAA), and American Rescue Plan Act (ARPA).
Chair Foster emphasized that it was not something only Mt.
Edgecumbe was receiving. All schools would receive some of
the COVID-related funds. The separate appropriation had to
do with Mt. Edgecumbe being a boarding school. He asked if
he was correct.
Mr. Painter relayed that the appropriation was separate
because it was a state-managed school. Mt. Edgecumbe
received the funds directly with federal receipt authority.
The state received the funds for the other school districts
and passed the money to them.
Representative LeBon appreciated the additional
information. He thought it helped the committee and the
audience to better understand the appropriation.
Representative LeBon WITHDREW his OBJECTION.
There being NO further OBJECTION, item 2 within the
Department of Education and Early Development FY 21
supplemental operating budget was ADOPTED.
Chair Foster indicated the committee had covered the agenda
for the day. He relayed that once the next meeting date and
time was determined, the details would be noticed on BASIS
at www.akleg.gov. He hoped the next meeting would occur in
the following day.
Vice-Chair Stedman MOVED to ADJOURN. There being NO
OBJECTION, it was so ordered.
ADJOURNMENT
4:26:49 PM
The meeting was adjourned at 4:26 p.m.
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