Legislature(2023 - 2024)SENATE FINANCE 532
05/10/2023 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB41 | |
| HB39 | |
| SB95 | |
| SB140 | |
| SB99 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 41 | TELECONFERENCED | |
| += | HB 39 | TELECONFERENCED | |
| + | SB 95 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 140 | TELECONFERENCED | |
| += | SB 99 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 39(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; repealing
appropriations; amending appropriations; making
reappropriations; and making supplemental
appropriations."
9:37:14 AM
Senator Wilson MOVED to ADOPT proposed committee substitute
for CSHB 39(FIN), Work Draft 33-GH1347\P (Marx, 5/5/23).
Co-Chair Stedman OBJECTED for discussion.
9:38:01 AM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, discussed the
changes proposed in the CS. He read from a document titled
"Changes from HB 39 version H (SCS2) to version P (SCS3)"
(copy on file):
• Technical correction to the structure of the FY23
legislature budget
• DOH cost allocation assessment tool - fund as an
FY24-26 multi-year, not a temporary increment (Inc T)
this is already in the Senate budget, just changing
how it is funded
o Dollar amounts are unchanged.
o Medicaid Services Cost Allocation assessment
tool $2.04 million fed, $227 thousand UGF match
o Senior and Disabilities Services Cost
Allocation Assessment Tool - $698 thousand fed,
420 thousand UGF match
Update the estimate in the FY23
judgments/settlements to include a new $115 thousand
settlement (dept of law)
• Fund the Alaska Gasline Development Corporation
(AGDC) at the FY24 Unrestricted General Fund requested
amount as a one-time item (3,086.1)
• Add two fire standards council positions (Fire
Training Specialist II, Fire Training Administrator)
$250 thousand UGF
head-start addition of $5 million UGF as a one-time
item (above the $6.85 million UGF in the head-start
base budget)
• Office of the Governor Office of Management and
Budget up to $5 million in FY23 lapse for
distribution by OMB to central services agencies if
cost allocation rates fall short of full
reimbursement.
Co-Chair Stedman WITHDREW his objection. There being NO
further OBJECTION, it was so ordered. The CS for CSHB
39(FIN) was ADOPTED.
Co-Chair Stedman relayed that the director of LFD would
offer a brief review of the states fiscal position. He
commented that the Senate was in discussions with the other
body and there would likely be a forthcoming CS or
amendments to consider.
9:41:24 AM
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
addressed a document entitled "Document C," (copy on file),
and informed that the document was updated from a previous
version the committee received. He pointed out the first
line, which showed the spring revenue forecast with a
$73/bbl price of oil. He identified that SCS 2 and SCS 3
had modified the Alaska Industrial Development and Export
Authority (AIDEA) dividend from the full amount, so the
$17.9 million showed up as a revenue reduction. He
continued that net fund transfers also took away from
revenue, resulting in about $6.26 billion of revenue
available. He listed that SCS 2, the previous version of
the bill, had agency operations at about $4.48 billion
which included the $175 million for K-12 education outside
the funding formula. There were no changes from the
previous version of the bill and SCS 3 in statewide items
or the UGF capital budget numbers.
Mr. Painter pointed out that the Permanent Fund Dividend
(PFD) also showed no change from the previous version of
the bill and was $881 million or 25 percent of the percent
of market value (POMV) draw. With the items together there
was an estimated $123 million surplus. The third Senate
Committee Substitute (SCS 3) added $8.3 million UGF to the
operating budget. The items that Mr. Ecklund reviewed
included $3.1 million to AGDC, $5 million to Head Start,
and $2500,000 to the Fire Standards Council. The fiscal
notes estimate had been revised from $7 million in the
previous version up to $26.4 million.
Mr. Painter explained that the reason for the change was
that the amendments made to the Base Student Allocation
bill had added about $12 million, and the elections bill
heard in committee the previous day had a capital fiscal
note of $5.7 million. Adding the two items together had
significantly increased the estimate for fiscal notes,
which was still evolving and did not include all of the
bills in the finance committees but represented a working
estimate for those bills that were considered likely to
pass. He continued that the $22.7 million estimate shown
for Conference Committee additions represented the outside
high case if the higher House items were chosen for
everything. He summarized that line 15 showed a remaining
surplus of $65.5 million. He thought the previous summary
had shown a surplus of $93 million, the difference being
the higher fiscal note estimate and operating budget
additions. He noted that the surplus could potentially go
to an increase in the capital budget in the other body,
supplementals for next session, or a cushion in case oil
prices were lower than expected.
9:44:46 AM
Co-Chair Stedman asked what type of volatility in oil would
it take to eradicate the $65.5 million surplus.
Mr. Painter estimated that the amount would signify about
$1/bbl in oil price swing.
Co-Chair Stedman asked if Mr. Painter had absolute
confidence that the Department of Revenue accurately
predicted the oil price within a dollar. He thought it was
unlikely that the price would come within a dollar.
Co-Chair Stedman noted that the summary that Mr. Painter
had addressed had been circulated amongst the House Finance
Committee Co-chairs, the Speaker of the House, and Rules
Committee Chair. There was a slight change from the
previous days number due to the adjusted fiscal note
estimate. He described that the document was subject to
change with alterations with the budget. He thanked Mr.
Painter for his balanced budget presentation.
CSHB 39(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair Stedman handed the gavel to Co-Chair Olson.
9:46:27 AM
AT EASE
9:48:43 AM
RECONVENED
Co-Chair Olson relayed that the committee would consider
three bills: SB 95, SB 140, and SB 99.