Legislature(2021 - 2022)SENATE FINANCE 532

06/04/2021 10:00 AM CONFERENCE COMMITTEE ON HB69 AND HB71

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10:01:30 AM Start
10:40:46 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 69 APPROP: OPERATING BUDGET/LOANS/FUNDS TELECONFERENCED
Heard & Held
+= HB 71 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Conference Comm Motion Sheets for the Operating
Budget can be found at:
http://www.legfin.akleg.gov/BudgetReports/LY2021/
Operating/SelectBudget.php
Supplemental Capital:
Dept of Commerce, Community & Economic
Development
Dept of Fish and Game
Dept of Labor and Workforce Development
Dept of Military and Veterans Affairs
Dept of Natural Resources
Dept of Transportation & Public Facilities
Judiciary
Legislature
Fund Transfers
Operating Budget:
Dept of Corrections
Office of the Governor
Dept of Public Safety
               32nd ALASKA STATE LEGISLATURE                                                                                    
                       FIRST SESSION                                                                                            
                      SPECIAL SESSION                                                                                           
          CONFERENCE COMMITTEE ON HB 69 and HB 71                                                                               
                       June 4, 2021                                                                                             
                        10:01 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
10:01:30 AM                                                                                                                   
                                                                                                                                
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Chair Foster called the Conference Committee meeting on HB
69 and HB 71 to order at 10:01 a.m.                                                                                             
                                                                                                                                
MEMBERS PRESENT:                                                                                                              
                                                                                                                                
House:                                                                                                                          
Representative Neal Foster, Chair                                                                                               
Representative Kelly Merrick                                                                                                    
Representative Bart LeBon                                                                                                       
                                                                                                                                
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."                                                                                          
                                                                                                                                
10:01:58 AM                                                                                                                   
                                                                                                                                
Chair  Foster  invited  Alexei   Painter,  Director  of  the                                                                    
Legislative Finance  Division to  join the committee  at the                                                                    
table. He noted that the  committee would address open items                                                                    
in HB  69 and HB 71  based on the motion  sheets distributed                                                                    
to members and dated June  4th (copy on file). They included                                                                    
Supplemental Capital Budget items  and a few American Rescue                                                                    
Plan items from the Operating  Budget. Because there was not                                                                    
a version of  the Capital budget that passed  the House, any                                                                    
item  adopted would  be a  Senate  item. He  noted that  the                                                                    
House and Senate Co-Chairs for  the Capital budget worked in                                                                    
tandem   developing  the   version  before   the  Conference                                                                    
Committee. He thanked them for  their cooperation in getting                                                                    
it before the committee.                                                                                                        
                                                                                                                                
Chair  Foster  continued  that   the  items  the  conference                                                                    
committee would take  up in the Operating  budget would also                                                                    
be  Senate  items, as  the  House's  version of  the  budget                                                                    
passed  before   the  guidelines  were  received   from  the                                                                    
Treasury Department  regarding the American Rescue  Plan. He                                                                    
thanked the Senate  for their work in  getting the committee                                                                    
items  that conformed  with  the  guidelines. The  committee                                                                    
would take up items in the following departments:                                                                               
                                                                                                                                
FY 21 Supplemental Capital:                                                                                                   
                                                                                                                                
Department of Commerce, Community and Economic Development                                                                      
Department of Fish and Game                                                                                                     
Office of the Governor                                                                                                          
Department of Labor and Workforce Development                                                                                   
Department of Military and Veterans Affairs                                                                                     
Department of Natural Resources                                                                                                 
Department of Transportation and Public Facilities                                                                              
Judiciary                                                                                                                       
Legislature                                                                                                                     
Fund Transfers                                                                                                                  
                                                                                                                                
FY 22 Operating Budget:                                                                                                       
                                                                                                                                
Department of Corrections                                                                                                       
Office of the Governor                                                                                                          
Department of Public Safety                                                                                                     
                                                                                                                                
^DEPARTMENT    OF   COMMERCE,    COMMUNITY   AND    ECONOMIC                                                                  
DEVELOPMENT: FY 21 SUPPLEMENTAL CAPITAL BUDGET                                                                                
                                                                                                                                
10:04:02 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
supplemental capital budget:                                                                                                    
                                                                                                                                
     Items 1-8      Open                                                                                                        
     Items 9-10     Open                                                                                                        
     Item 11-14     Senate                                                                                                      
     Item 15        Senate                                                                                                      
     Item 16        Senate                                                                                                      
     Item 17        Senate                                                                                                      
     Item 18-26     Senate                                                                                                      
     Item 27        Senate                                                                                                      
                                                                                                                                
Representative LeBon  OBJECTED for discussion. He  asked for                                                                    
an  explanation for  the benefit  of the  committee and  the                                                                    
listening audience.                                                                                                             
                                                                                                                                
Chair  Foster asked  Mr. Painter  to review  the items.  The                                                                    
items were reappropriations.                                                                                                    
                                                                                                                                
10:05:43 AM                                                                                                                   
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
explained  that  items  11-27 were  legislatively  generated                                                                    
reappropriations of  lapsing capital projects to  new needs.                                                                    
He  believed both  bodies worked  to develop  them, and  the                                                                    
items were added in the Senate budget.                                                                                          
                                                                                                                                
Chair  Foster reported  that in  years past  the legislature                                                                    
dealt with  reappropriations in one  of two ways.  They were                                                                    
either  placed   in  one  bucket   and  used   for  deferred                                                                    
maintenance,  or they  were given  back to  their respective                                                                    
communities. He asked if he was correct.                                                                                        
                                                                                                                                
Mr.  Painter responded  affirmatively. He  noted when  money                                                                    
lapsed  for  capital projects  in  a  certain district,  the                                                                    
legislature made the funds  available for reappropriation to                                                                    
new projects in the same  district - a practice reflected in                                                                    
the bill. In  some years all lapsing money was  swept into a                                                                    
central area. In the current  budget, the money would remain                                                                    
in the respective districts.                                                                                                    
                                                                                                                                
Representative  LeBon suggested  that some  of the  projects                                                                    
were new  within the districts  and some  were continuations                                                                    
of  projects. He  wondered if  any continuation  of projects                                                                    
were  not in  the  report  and were  being  were dealt  with                                                                    
separately.  Mr.  Painter  replied   that  some  were  scope                                                                    
changes.  For example,  item  15 expanded  the  scope of  an                                                                    
existing project. In most cases  it was a new project within                                                                    
the same community.                                                                                                             
                                                                                                                                
Senator Olson highlighted item 15.  He did not see an amount                                                                    
but noticed it had been  expanded to include the purchase of                                                                    
curling  equipment for  the curling  club  in Anchorage.  he                                                                    
asked if he  was accurate. Mr. Painter  responded, "Yes." It                                                                    
was  an  existing  capital project  which  would  allow  the                                                                    
grantee to purchase equipment and expand the facility.                                                                          
                                                                                                                                
Senator Olson asked  for the amount related  to the project.                                                                    
Mr. Painter could get back  to the committee with the amount                                                                    
still  unobligated to  the project.  He believed  the amount                                                                    
was less than $100,000.                                                                                                         
                                                                                                                                
Senator  Bishop pointed  out that  there were  both minority                                                                    
member  projects and  majority member  projects on  the list                                                                    
for both the House and the Senate.                                                                                              
                                                                                                                                
Vice-Chair   Stedman   added   that   some   districts   had                                                                    
reappropriation   funds   available   and  some   did   not.                                                                    
Historically,  the legislature  left  lapsing  funds in  the                                                                    
House district  in which they were  originally appropriated.                                                                    
Normally, the  elected official from a  district worked with                                                                    
district  officials   to  make  sure  they   were  aware  of                                                                    
available  or  lapsed funds  and  received  updates for  the                                                                    
capital  budget chairman  for capital  projects.  As it  was                                                                    
mentioned  earlier, for  a  few  years the  reappropriations                                                                    
were  diverted to  the capital  income fund  to be  used for                                                                    
general  maintenance  across  the   state.  There  were  two                                                                    
methodologies that had been used.                                                                                               
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There  being  NO  OBJECTION,  items 1  through  27  for  the                                                                    
Department of  Commerce, Community and  Economic Development                                                                    
were ADOPTED.                                                                                                                   
                                                                                                                                
^DEPARTMENT  OF FISH  AND GAME:  FY 21  SUPPLEMENTAL CAPITAL                                                                  
BUDGET                                                                                                                        
                                                                                                                                
10:10:51 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department of Fish and Game supplemental capital budget:                                                                        
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Open                                                                                                             
                                                                                                                                
Representative   LeBon   OBJECTED.   He   asked   for   more                                                                    
information regarding item 1.                                                                                                   
                                                                                                                                
Mr.  Painter  explained   that  item  1  was   part  of  the                                                                    
governor's original capital request for  FY 21 that was left                                                                    
off because of  the truncated session that did  not fund all                                                                    
of  the  projects.  The  item was  part  of  the  governor's                                                                    
supplemental request.  The House  had originally  planned to                                                                    
address the  issue in the  main capital budget but  with the                                                                    
change  in  plans  the  Senate added  it  to  the  operating                                                                    
budget.                                                                                                                         
                                                                                                                                
Representative LeBon  asked for Mr. Painter  to identify the                                                                    
funding  source  and   provide  additional  background.  Mr.                                                                    
Painter  replied that  the funding  source  was the  capital                                                                    
income  fund which  was designated  in  statute to  deferred                                                                    
maintenance.  He  noted  there was  a  centralized  deferred                                                                    
maintenance program run by  the Department of Transportation                                                                    
and Public  Facilities that was budgeted  through the Office                                                                    
of Management  and Budget. However, the  program was focused                                                                    
primarily  on  buildings.  Since   the  items  were  largely                                                                    
vessels  and  aircraft,   having  a  separate  appropriation                                                                    
helped  with prioritization  between buildings  and aircraft                                                                    
and allowed a side-by-side comparison.                                                                                          
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
Senator Olson  OBJECTED. He asked how  aircraft hangers were                                                                    
handled.                                                                                                                        
                                                                                                                                
Mr. Painter  thought the facilities portion  would cover any                                                                    
deferred  maintenance  issues  related to  hangers.  He  was                                                                    
unsure whether the  Department of Fish and  Game (DFG) owned                                                                    
any hangers.                                                                                                                    
                                                                                                                                
Senator Olson  asked if the appropriation  included hangers.                                                                    
Mr.  Painter  was unaware  of  DFG  owning any  hangers.  He                                                                    
believed most of their aircraft were float planes.                                                                              
                                                                                                                                
Senator Olson WITHDREW his OBJECTION.                                                                                           
                                                                                                                                
There being NO  OBJECTION, items 1 and 2  for the Department                                                                    
of Fish and Game were ADOPTED.                                                                                                  
                                                                                                                                
^OFFICE OF THE GOVERNOR                                                                                                       
                                                                                                                                
10:13:36 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Office of the Governor's supplemental capital budget:                                                                           
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Senate                                                                                                           
     Item 3    Senate                                                                                                           
                                                                                                                                
Representative  LeBon  OBJECTED.  He asked  for  information                                                                    
regarding item 1  and wondered if there was  a dollar amount                                                                    
for item 3.                                                                                                                     
                                                                                                                                
Mr.  Painter  replied  that  item   1  was  the  centralized                                                                    
deferred  maintenance appropriation  to  the  Office of  the                                                                    
Governor  that the  Office of  Management  and Budget  would                                                                    
assign  to the  departments  based on  the prioritized  list                                                                    
statewide. There  was a similar  appropriation in the  FY 22                                                                    
capital budget  that was larger.  The amount listed  was the                                                                    
amount requested  in the governor's fast  track supplemental                                                                    
for  deferred maintenance  needs.  The fund  source was  the                                                                    
Alaska Capital Income  Fund. He was unsure  of the remaining                                                                    
amount  for item  3. The  item was  a scope  change allowing                                                                    
additional  spending on  Ballot Measure  2. He  believed the                                                                    
amount  was under  $1 million  but  did not  have the  exact                                                                    
figure.                                                                                                                         
                                                                                                                                
Representative  LeBon was  wondering if  anyone in  the room                                                                    
had a dollar amount.                                                                                                            
                                                                                                                                
10:15:21 AM                                                                                                                   
AT EASE                                                                                                                         
                                                                                                                                
10:25:12 AM                                                                                                                   
RECONVENED                                                                                                                      
                                                                                                                                
Chair Foster  indicated the committee was  discussing item 3                                                                    
in the Office of the Governor's budget.                                                                                         
                                                                                                                                
Mr. Painter relayed that  $1.86 million remained unobligated                                                                    
in  the existing  appropriation. About  $600,000 was  needed                                                                    
for Ballot  Measure 2. The  remaining amount was  needed for                                                                    
other  items  for  election voting  system  replacement  and                                                                    
security upgrades as well  as government efficiency efforts.                                                                    
There  was an  additional appropriation  of $590,000  in the                                                                    
supplemental operating  budget. All combined, they  added up                                                                    
to the amount needed to implement Ballot Measure 2.                                                                             
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There being NO  OBJECTION, items 1 through 3  for the Office                                                                    
of the Governor were ADOPTED.                                                                                                   
                                                                                                                                
^DEPARTMENT  OF  LABOR  AND  WORKFORCE  DEVELOPMENT:  FY  21                                                                  
SUPPLEMENTAL CAPITAL BUDGET                                                                                                   
                                                                                                                                
10:26:20 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department of  Labor and Workforce  Development supplemental                                                                    
capital budget:                                                                                                                 
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
Representative  LeBon  OBJECTED  and  asked  for  additional                                                                    
information.                                                                                                                    
                                                                                                                                
Mr.  Painter  explained that  part  of  the American  Rescue                                                                    
Plan, the federal  COVID relief bill, gave  grants to states                                                                    
for upgrading Unemployment Insurance  mainframe systems - He                                                                    
elaborated that part  of the experience of the  Cares Act in                                                                    
previous bills  that used  state unemployment  systems found                                                                    
that many  of them were  sorely in need of  upgrades. Alaska                                                                    
had a  grant of $600 million  that could be used  to upgrade                                                                    
its system.                                                                                                                     
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There  being NO  OBJECTION,  item 1  for  the Department  of                                                                    
Labor and Workforce Development was ADOPTED.                                                                                    
                                                                                                                                
^Department  of   Military  and  Veterans  Affairs:   FY  21                                                                  
Supplemental Capital Budget                                                                                                   
                                                                                                                                
10:27:22 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department  of Military  and  Veterans Affairs  supplemental                                                                    
capital budget:                                                                                                                 
                                                                                                                                
     Item 1    Senate    Both Items                                                                                             
     Item 2    Senate    Both Items                                                                                             
     Item 3    Senate    Both Items                                                                                             
     Item 4    Senate    Both Items                                                                                             
     Item 5    Senate                                                                                                           
                                                                                                                                
Representative   LeBon  OBJECTED.   He  thought   the  items                                                                    
appeared  to  be  matching  funds. The  fund  source  was  a                                                                    
combination of federal receipts  and Alaska capital funding.                                                                    
He asked if  he was correct. Mr.  Painter responded, "That's                                                                    
correct."                                                                                                                       
                                                                                                                                
Representative  LeBon  asked  if   item  4  was  related  to                                                                    
specific  projects or  from  a list  to  be determined.  Mr.                                                                    
Painter relayed there was a  list in the capital backup that                                                                    
he could provide to the committee.                                                                                              
                                                                                                                                
Representative  LeBon asked  if specific  projects had  been                                                                    
assigned  dollar  amounts. He  wondered  if  the detail  was                                                                    
available presently.  Mr. Painter did not  bring the capital                                                                    
backup with him.                                                                                                                
                                                                                                                                
Representative  LeBon  responded  that  he  could  find  the                                                                    
information at a  later time. He asked if item  5 applied to                                                                    
FY 21. Mr. Painter responded  that the appropriation was due                                                                    
to  the transfer  of the  Alaska Land  Mobile Radio  Program                                                                    
from the  Department of Administration to  the Department of                                                                    
Military   and   Veterans   Affairs.   It   was   simply   a                                                                    
reappropriation  of  existing   capital  projects  from  one                                                                    
department to another without changing the purpose.                                                                             
                                                                                                                                
Representative LeBon  asked if  the figure was  the original                                                                    
dollar amount or whether some  of the money had already been                                                                    
spent and  the amount  reflected lapsing funds.  Mr. Painter                                                                    
replied  that the  figure was  the unexpended  amount rather                                                                    
than lapsing  funds. The reappropriation  was to  change the                                                                    
department to  reflect the  current department  that managed                                                                    
the program.                                                                                                                    
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There being  NO OBJECTION, items  1-5 for the  Department of                                                                    
Military and Veterans Affairs were ADOPTED.                                                                                     
                                                                                                                                
^DEPARTMENT  OF   NATURAL  RESOURCES:  FY   21  SUPPLEMENTAL                                                                  
CAPITAL BUDGET                                                                                                                
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department   of  Natural   Resources  supplemental   capital                                                                    
budget:                                                                                                                         
                                                                                                                                
     Item 1    Open                                                                                                             
     Item 2    Senate                                                                                                           
                                                                                                                                
There  being  NO  OBJECTION,  item  1 and  item  2  for  the                                                                    
Department of Natural Resources were ADOPTED.                                                                                   
                                                                                                                                
^DEPARTMENT OF  TRANSPORTATION AND PUBLIC FACILITIES:  FY 21                                                                  
SUPPLEMENTAL CAPITAL BUDGET                                                                                                   
                                                                                                                                
10:30:00 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department   of   Transportation   and   Public   Facilities                                                                    
supplemental capital budget:                                                                                                    
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Senate                                                                                                           
     Item 3    Senate  Modify fund source, 1265 COVID Fed                                                                       
     Item 4    Senate                                                                                                           
     Item 5    Senate                                                                                                           
                                                                                                                                
Representative LeBon OBJECTED.  He asked if item  1 and item                                                                    
2 offset each other. He asked for further information.                                                                          
                                                                                                                                
Mr. Painter  responded that  the items  were not  related to                                                                    
each  other.  Item  1  was   similar  to  the  items  within                                                                    
Department of  Military and  Veterans Affairs.  He explained                                                                    
there  had been  a  reorganization of  the executive  branch                                                                    
where the management of state  facilities had moved from the                                                                    
Department   of   Administration   to  the   Department   of                                                                    
Transportation  and Public  Facilities specifically  for the                                                                    
public   building    fund.   It    reappropriated   existing                                                                    
outstanding   capital  projects   from  the   Department  of                                                                    
Administration  to  the  Department  of  Transportation  and                                                                    
Public  Facilities which  reflected  where  the program  was                                                                    
currently budgeted.  Item 2 was  a reappropriation  from the                                                                    
capital budget to  the operating budget. The  other half was                                                                    
supplemental fund  transfers, item  3, which  the Conference                                                                    
Committee addressed in the prior week.                                                                                          
                                                                                                                                
Representative LeBon referred to item  4 and asked if it was                                                                    
debt  service related  to the  Alaska International  Airport                                                                    
system.  He  thought the  amount  was  $30 million  in  debt                                                                    
service. He wondered if the  substitute for funding the debt                                                                    
service was COVID  monies. He wondered if it  was a one-time                                                                    
use of the funding.                                                                                                             
                                                                                                                                
Mr. Painter  responded affirmatively. He explained  that the                                                                    
various  federal relief  acts  included significant  funding                                                                    
for  airports. The  international airport  system wanted  to                                                                    
use part  of the  funding to pay  down debt  service because                                                                    
the  amount   was  beyond  what  they   needed  for  current                                                                    
operations. It allowed  them to pay down some  of their debt                                                                    
service.                                                                                                                        
                                                                                                                                
Representative LeBon asked if the  state would be saving UGF                                                                    
monies to  be used for  other purposes. Mr.  Painter replied                                                                    
that  the international  airports  were self-sustaining.  It                                                                    
would not impact the general fund.                                                                                              
                                                                                                                                
Representative  LeBon  asked   for  further  explanation  of                                                                    
item 5.  Mr. Painter  responded that  in years  with extreme                                                                    
weather events that caused damaged  to state roads and state                                                                    
facilities,  the  Department  of Transportation  and  Public                                                                    
Facilities often  needed to request a  specific supplemental                                                                    
of a  few $100,000 at a  time. Rather than having  to make a                                                                    
request  each  time, the  department  wanted  the amount  of                                                                    
money to cover future weather  events without having to wait                                                                    
for the legislature to reconvene potentially months later.                                                                      
                                                                                                                                
Representative LeBon  clarified the  amount was  $1 million.                                                                    
Mr. Painter responded, "Correct."                                                                                               
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There  being  NO  OBJECTION,  items  1  through  5  for  the                                                                    
Department  of  Transportation  and Public  Facilities  were                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
^JUDICIARY: FY 21 SUPPLEMENTAL CAPITAL BUDGET                                                                                 
                                                                                                                                
10:34:17 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stedman  MOVED  to ADOPT  the  following  within                                                                    
Judiciary's supplemental capital budget:                                                                                        
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
There being NO OBJECTION, item 1 for Judiciary was ADOPTED.                                                                     
                                                                                                                                
^LEGISLATURE: FY 21 SUPPLEMENTAL CAPITAL BUDGET                                                                               
                                                                                                                                
10:34:38 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Legislature's supplemental capital budget:                                                                                      
                                                                                                                                
     Item 1    Senate                                                                                                           
                                                                                                                                
There being  NO OBJECTION,  item 1  for the  Legislature was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
^Fund Transfers: FY 21 Supplemental Capital Budget                                                                            
                                                                                                                                
10:35:01 AM                                                                                                                   
                                                                                                                                
Vice-Chair  Stedman  MOVED  to   ADOPT  the  following  fund                                                                    
transfers within the supplemental capital budget:                                                                               
                                                                                                                                
     Item 1    Senate                                                                                                           
     Item 2    Senate                                                                                                           
                                                                                                                                
Representative LeBon  OBJECTED. He commented that  the House                                                                    
did not weigh  in on many of the related  projects. He asked                                                                    
for an explanation for clarification purposes.                                                                                  
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There being NO  OBJECTION, items 1 and 2  for Fund Transfers                                                                    
were ADOPTED.                                                                                                                   
                                                                                                                                
Chair Foster  concluded the Supplemental Capital  portion of                                                                    
the  meeting.  The  committee  would   move  to  the  FY  22                                                                    
operating  budget. The  items involved  the American  Rescue                                                                    
Plan funds.  The guidelines came  in after the  House passed                                                                    
its  budget.  The  items made  conforming  adjustments.  The                                                                    
committee would begin with the Department of Corrections.                                                                       
                                                                                                                                
^Department of Corrections                                                                                                    
                                                                                                                                
10:36:29 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department of Corrections budget:                                                                                               
                                                                                                                                
     Items 1-5      Open                                                                                                        
     Items 6-10     Open                                                                                                        
     Items 11-15    Open                                                                                                        
     Items 16-17    Open                                                                                                        
     Items 18-19    Senate    All Items                                                                                         
                                                                                                                                
Representative LeBon OBJECTED and  asked for some background                                                                    
information.                                                                                                                    
                                                                                                                                
Mr.  Painter  explained that  the  House  used some  of  the                                                                    
American Rescue Plan dollars  for revenue replacement, which                                                                    
was an allowable use and an  allowable place to do so. After                                                                    
the  House  process  and working  collaboratively  with  the                                                                    
administration,  he  developed  a  way  to  do  the  revenue                                                                    
replacement  without creating  a  distortion  in the  budget                                                                    
that  the  House method  provided.  The  House changed  from                                                                    
general funds to federal funds  creating the appearance that                                                                    
general funds went down. In  the Senate version there was an                                                                    
appropriation  of  American  Rescue   Plan  dollars  to  the                                                                    
general  fund.  In  order to  do  revenue  replacement,  the                                                                    
legislature would appropriate using  a general fund tracking                                                                    
code  to  the specific  items  for  revenue replacement.  It                                                                    
would allow  the items  to remain  counted as  general funds                                                                    
without  appearing  to distort  the  budget.  It would  also                                                                    
demonstrate  to the  federal government  that the  state was                                                                    
using  the funding  for allowable  items. The  House method,                                                                    
while it  worked, would  not be  as clean  as what  could be                                                                    
done at the Conference Committee.                                                                                               
                                                                                                                                
Representative LeBon WITHDREW his OBJECTION.                                                                                    
                                                                                                                                
There being NO OBJECTION, items  1 through 19 for Department                                                                    
of Corrections were ADOPTED.                                                                                                    
                                                                                                                                
^Office of the Governor                                                                                                       
                                                                                                                                
10:39:07 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Office of the Governor's budget:                                                                                                
                                                                                                                                
     Item 1    Senate    Both items                                                                                             
                                                                                                                                
There  being NO  OBJECTION, item  1  for the  Office of  the                                                                    
Governor was ADOPTED.                                                                                                           
                                                                                                                                
^Department of Public Safety                                                                                                  
                                                                                                                                
10:39:34 AM                                                                                                                   
                                                                                                                                
Vice-Chair Stedman  MOVED to ADOPT the  following within the                                                                    
Department of Public Safety budget:                                                                                             
                                                                                                                                
     Item 7    Senate    Both items                                                                                             
     Item 9    Open                                                                                                             
                                                                                                                                
There being NO OBJECTION, items 7 and 9 for the Department                                                                      
of Public Safety were ADOPTED.                                                                                                  
                                                                                                                                
Chair Foster  relayed that  once the  next meeting  date and                                                                    
time was determined,  the details would be  noticed on BASIS                                                                    
at www.akleg.gov. He  thought the next meeting  would not be                                                                    
before Monday.                                                                                                                  
                                                                                                                                
Vice-Chair Stedman MOVED to ADJOURN. There being NO                                                                             
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
10:40:46 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:40 a.m.                                                                                         

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