Legislature(2025 - 2026)SENATE FINANCE 532
05/18/2025 01:00 PM Senate CONFERENCE COMMITTEE ON HB53 AND HB55
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| Audio | Topic |
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| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 53 | TELECONFERENCED | |
| += | HB 55 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
CS FOR HOUSE BILL NO. 53(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 supplemental
appropriations."
SENATE CS FOR CS FOR HOUSE BILL NO. 53(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 supplemental appropriations;
and providing for an effective date."
and
CS FOR HOUSE BILL NO. 55(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
SENATE CS FOR CS FOR HOUSE BILL NO. 55(FIN) am S
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
2:16:37 PM
Chair Josephson invited Alexei Painter, Legislative Fiscal
Analyst, to the table. He stated the committee would
address items in House Bill 53 and House Bill 55 based on
the motion sheets distributed to members earlier in the day
and dated May 18th. The sheets included items for the
following:
DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC
DEVELOPMENT
DEPARTMENT OF CORRECTIONS
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
OFFICE OF THE GOVERNOR
DEPARTMENT OF HEALTH
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
DEPARTMENT OF PUBLIC SAFETY
DEPARTMENT OF REVENUE
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
UNIVERSITY
PERMANENT FUND
SUPPLEMENTAL OPERATING ITEMS
MONETARY TERMS and COLLECTIVE BARGAINING AGREEMENTS
FISCAL NOTES
2:17:52 PM
DEPARTMENT OF COMMERCE, COMMUNITY, AND ECONOMIC DEVELOPMENT
Vice-Chair Hoffman MOVED that the committee adopt the
following items in the Department of Commerce, Community
and Economic Development:
Items 6 through 9 House, all items
There being NO OBJECTION, it was so ordered.
Chair Josephson stated that the action closed all remaining
conference-able items in the Department of Commerce,
Community, and Economic Development.
2:18:15 PM
DEPARTMENT OF CORRECTIONS
Vice-Chair Hoffman MOVED that the committee adopt the
following items in the Department of Corrections:
Items 3, 5 and 6 House
Item 7 House, modify fund source to
Interagency Receipts (fund source
1007)
Item 41 Line 1: House
Line 2: House, minus $1.5 million
There being NO OBJECTION, it was so ordered.
Chair Josephson stated that the action closed all
conference-able items in the Department of Corrections.
2:18:58 PM
DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT
Vice-Chair Hoffman MOVED that the committee reopen Item 10
in the Department of Education and Early Development.
There being NO OBJECTION, Item 10 was reopened.
Vice-Chair Hoffman MOVED that the committee adopt the
following items in the Department of Education and Early
Development:
Item 10 House
Item 15 Senate
There being NO OBJECTION, it was so ordered.
Chair Josephson stated that the action closed all
conference-able items in the Department of Education and
Early Development.
2:20:07 PM
OFFICE OF THE GOVERNOR
Vice-Chair Hoffman MOVED that the committee adopt the
following item in the Office of the Governor:
Item 4 House, modify to intent language as shown on
the motion sheet. This language directs OMB to provide
agency-level reports on overtime and other specialty
pay types.
There being NO OBJECTION, it was so ordered.
Chair Josephson stated that the action closed all
conference-able items in the Office of the Governor.
2:20:45 PM
DEPARTMENT OF HEALTH
Vice-Chair Hoffman MOVED that the committee adopt the
following items in the Department of Health budget:
Items 1 and 2 House, both items
Item 3 Senate, both lines
Item 4 Senate
Item 5 House, both lines:
Line 1, minus $333.8 thousand
GF/Match
Line 2, minus $147.5 thousand
Federal Receipts
Item 6 House
Item 7 House minus $424.4 thousand
GF/Match
Item 8 Senate, all lines
Item 9 House
Item 10 Senate
Items 11 and 12 Senate, both items, all lines
Item 13 House, both lines
Items 14 and 15 Senate, both items, all lines
Items 16 and 17 House, both items
Items 18 and 19 Senate, both items
Item 20 House minus $500.0 thousand UGF
Items 21-24 House, all items
Items 25-30 Senate, all items
Item 31 House
Items 32-38 Senate, all items, all lines
2:22:48 PM
Senator Kaufman OBJECTED to Items 8 and 9. He asked for
clarification of the function of the fiscal notes
pertaining to legislation.
Chair Josephson invited Mr. Painter to the table.
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION
answered that pertaining to Item 8 there was a fiscal note
in committee members' packets that added the item back
contingent on the passage of Senate Bill 95. Item 9 did not
relate to any fiscal notes.
Senator Kaufman WITHDREW the OBJECTION.
There being NO further OBJECTION, it was so ordered.
Chair Josephson stated that all of the above items were
adopted, and the action closed all conference-able items in
the Department of Health.
2:24:23 PM
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT
Vice-Chair Hoffman MOVED that the committee adopt the
following item in the Department of Labor and Workforce
Development budget:
Item 3 Senate
There being NO OBJECTION, it was so ordered.
Chair Josephson stated that the action closed all
conference-able items in the Department of Labor and
Workforce Development.
2:24:40 PM
Senator Kaufman requested to return to an item in the
Department of Health.
Chair Josephson noted that the items in the Department of
Health had been closed. He asked Senator Kaufman to speak
to the item.
Senator Kaufman OBJECTED for discussion to Item 16 under
the Department of Health. He observed that the item funded
$85,000 for a media campaign at a time when the state was
laying people off and potentially not funding positions
that had been created. He asked if it was the best use of
funding currently.
Chair Josephson replied that the Statewide Suicide
Prevention Council was housed under the Department of
Health, and it issued a plan called Messages of Hope
spanning from 2023 to 2027. He detailed that pages 24 and
25 of the plan spoke extensively about a campaign for a
public relations strategy to reduce access by youth in
particular, to firearms. He highlighted that the council
included legislative members of both bodies. The council
cited the American Association of Suicidology, which
recommended safely storing firearms as a universal means of
preventing suicide. The item was adopted by the
subcommittee of the Department of Health, which he had
chaired. The item was a reflection of the respect for the
work of the suicide council.
Senator Kaufman appreciated the explanation. He remarked
that the legislature was potentially not funding positions,
but it was paying for a media campaign. He noted that the
state had a lot of needs. Separately, he asked about
behavioral health funding, which was a real challenge for
Anchorage with respect to the homeless problem and
behavioral issues with individuals who ended up in
Anchorage. He asked how the funding had been arrived at for
Item 35. He appreciated the chair's indulgence for
discussing the items.
Chair Josephson responded that Senator Kaufman's sentiments
were correct. There was confusion about the complicated
language on how to write behavioral health grants that
would be receptive to Senior and Disability Services and
Medicaid Services. There had been choices to make, and it
was not a choice that he had made. He stated it was a topic
that needed serious consideration in January.
2:28:45 PM
Senator Kaufman remarked that there were priorities and
there were priorities, and the state was challenged with
the funding available. He thanked the thanked the chair for
allowing the discussion on the items. He WITHDREW the
OBJECTION.
2:29:15 PM
DEPARTMENT OF PUBLIC SAFETY
Vice-Chair Hoffman MOVED that the committee adopt the
following items in the Department of Public Safety budget:
Items 3, 4, 8, 13 and 14 Senate
Representative Johnson OBJECTED. She highlighted that the
funding was a Department of Public Safety (DPS) request to
fund trooper positions in a trooper post on the Parks
Highway about halfway between Anchorage and Fairbanks,
which was a direct pipeline for fentanyl distribution out
to rural Alaska. The intent of the post was to be a way to
stop the flow of drugs and monitor the situation.
2:30:40 PM
AT EASE
2:31:07 PM
RECONVENED
Vice-Chair Hoffman relayed that the increment was the
governor's request. He shared that the legislature received
communication that the governor had withdrawn all of his
amendments; therefore, the proposed action complied with
the governor's request.
Senator Stedman asked for clarification on the motion.
Chair Josephson clarified that a yes vote would adopt Vice-
Chair Hoffman's motion to adopt the Senate version of Items
3, 4, 8, 13, and 14 within DPS.
Representative Johnson MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Senator Stedman, Representative Schrage, Senator
Hoffman, Representative Josephson
OPPOSED: Senator Kaufman, Representative Johnson
The MOTION PASSED Senate 2/1 House 2/1. There being NO
further OBJECTION, it was so ordered.
2:32:57 PM
AT EASE
3:01:15 PM
RECONVENED
Chair Josephson noted the committee left off at the
Department of Revenue.
DEPARTMENT OF REVENUE
Vice-Chair Hoffman MOVED that the committee adopt the
following items in the Department of Revenue budget:
Item 1 Senate, plus 2 positions and plus
$311.0 thousand UGF
Items 2-4 Senate, all items
Item 5 House
Items 6-9 Senate
Item 10 House
Items 11-14 Senate
Items 15-20 House
Item 21 Senate, plus 1 million, 282.4 thousand
dollars PF Gross
Items 22-42 House, all items
Items 43-46 Senate, all items
Item 47 House
Item 48 Senate
Item 49 House
Items 50-51 Senate, both items
Item 52 House
Item 53 Senate
Item 54 House
Item 55 Senate
Items 56-60 House, all items
Item 61 Senate
3:03:14 PM
Senator Kaufman OBJECTED and asked for an explanation of
the net effect on the operations of the Alaska Permanent
Fund Corporation (APFC).
Mr. Painter explained that the motion returned the APFC
budget total funding level to the adjusted base with three
exceptions. The first exception was an increase of $250,000
in statutory designated program receipts for accepting
third party travel. The second exception was common item
adding $100 for the APFC Anchorage office, which was above
the adjusted base. The third item was a reduction of
$32,000 to APFC maintenance and operations, which was below
the adjusted base. With the exception of the three items,
the funding level was the adjusted base. The structure
differed from the governor's submitted budget and returned
to the FY 25 structure with a Juneau operations and
Anchorage separate. The bill added an additional
appropriation from the Senate structure for information
technology and other software systems.
Senator Kaufman WITHDREW the OBJECTION. There being NO
further OBJECTION, it was so ordered.
Chair Josephson stated that the action closed all
conference-able items in the Department of Revenue.
3:05:54 PM
DEPARTMENT OF TRANSPORTATION AND PUBLIC FACILITIES
Vice-Chair Hoffman MOVED that the committee reopen the
budget of the Department of Transportation and Public
Facilities (DOT) for the purpose of amendments.
There being NO OBJECTION, it was so ordered.
Vice-Chair Hoffman MOVED that the committee reopen Item 23
in the DOT budget.
There being NO OBJECTION, it was so ordered.
3:06:33 PM
Vice-Chair Hoffman MOVED that the Committee adopt Amendment
1, 34-GH1462\B.A.3 (Marx, 5/15/25)(copy on file), which
modified the House number by reducing the amount to $5
million dollars and conformed to the Conference Committee
budget structure:
Page 85, following line 29:
Insert a new subsection to read:
"(d) If the amount of federal receipts that are
received by the Department of Transportation and
Public Facilities for the period beginning January 1,
2026, and ending December 31, 2026, fall short of the
amount appropriated in sec. 4 of this Act, the amount
of the shortfall, not to exceed $5,000,000, is
appropriated from the general fund to the Department
of Transportation and Public Facilities, Alaska marine
highway system, for operation of marine highway
vessels for the period beginning January 1, 2026, and
ending December 31, 2026."
Page 102, line 17:
Delete "20 - 42"
Insert "20 - 36, 37(a) - (c), 38 - 42"
Page 103, line 14, following "Sections 4 - 6":
Insert "and 37(d)"
There being NO OBJECTION, Amendment 1 was ADOPTED.
3:07:23 PM
Vice-Chair Hoffman MOVED that the committee adopt the
following item in the DOT budget:
Item 23 House, as modified by the adoption of
Amendment B.A.3
There being NO OBJECTION, it was so ordered.
3:07:50 PM
Vice-Chair Hoffman MOVED to reopen common items within the
DOT budget for the purpose of adopting an amendment.
Senator Kaufman OBJECTED for discussion.
Vice-Chair Hoffman MOVED that the committee adopt Amendment
2 (copy on file). The amendment provided net-zero fund
source changes in two allocations. For the Northern Region
Highways and Aviation allocation, it added an increment of
$2.1 million in Vehicle Rental Tax receipts, added a one-
time increment of $1.3 million in funds from the Alaska
Housing Capital Corporation (AHCC), and deleted $3.4
million in UGF. For the Central Region Highways and
Aviation allocation, the amendment added a one-time
increment of $1.4 million in Derelict Vessel Prevention
Program Funds and deleted $1.4 million in UGF. The
amendment also stated it was the intent of the Conference
Committee that the one-time increments from AHCC and the
Derelict Vessel Prevention Program be replaced with general
funds in FY 27.
Senator Kaufman OBJECTED.
3:09:30 PM
AT EASE
3:10:30 PM
RECONVENED
Chair Josephson noted there had been an objection to the
reopening of common items [within the DOT budget].
Senator Kaufman replied it was his intent to object to the
amendment. He thought the Derelict Vessel Program was a
good one. He relayed that if the item needed to be opened
in order to object to the amendment, he would withdraw his
objection to the reopening of the item.
3:11:09 PM
AT EASE
3:14:35 PM
RECONVENED
Chair Josephson relayed there was a motion to open common
items in the DOT budget, which had been objected to for
purposes of hearing what was intended.
Senator Kaufman MAINTAINED the OBJECTION to the reopening
of common items.
A roll call vote was taken on the motion.
IN FAVOR: Senator Stedman, Representative Schrage, Senator
Hoffman, Representative Josephson
OPPOSED: Senator Kaufman, Representative Johnson
The MOTION PASSED Senate 2/1 House 2/1. There being NO
further OBJECTION, common items within the DOT budget were
reopened.
3:15:58 PM
Chair Josephson noted that Vice-Chair Hoffman had already
described Amendment 2.
Vice Chair Hoffman MOVED to ADOPT Amendment 2. He restated
his earlier explanation of the amendment [see above for
detail].
Senator Kaufman OBJECTED. He thought transferring receipts
from vehicle rental tax to the Derelict Vessel Prevention
Program seemed like a stretch. He thought the funds should
be directed more towards what was impacted in terms of
transportation, park access, and items more related to
vehicle rental activities.
A roll call vote was taken on the motion.
IN FAVOR: Senator Stedman, Representative Schrage, Senator
Hoffman, Representative Josephson
OPPOSED: Senator Kaufman, Representative Johnson
The MOTION PASSED Senate 2/1 House 2/1. There being NO
further OBJECTION, Amendment 2 was ADOPTED.
Chair Josephson stated that the action closed all
conference-able items in the Department of Transportation
and Public Facilities.
3:18:38 PM
UNIVERSITY OF ALASKA
Vice-Chair Hoffman MOVED that the committee reopen the
budget of the University of Alaska for the purpose of
adopting Conference Committee Item 33.
There being NO OBJECTION, it was so ordered.
Vice-Chair Hoffman MOVED that the committee adopt the
following item in the University of Alaska budget:
Item 33 Adopt new Conference Committee intent
language as shown on the motion sheet. This language
directs the University to report on fund transfers
from rural allocations to main campus allocations.
Representative Johnson OBJECTED for discussion. She asked
if the term "main campus" referred to Southeast, Fairbanks,
and Anchorage. She asked if rural could possibly mean Mat-
Su.
Vice Chair Hoffman replied affirmatively.
There being NO further OBJECTION, Item 33 in the University
of Alaska budget was ADOPTED.
Chair Josephson stated that the action closed all
conference-able items in the budget of the University of
Alaska.
3:20:19 PM
PERMANENT FUND
Senator Hoffman MOVED that the committee adopt the
following in the Permanent Fund:
Items 1 and 2 Senate
Representative Johnson OBJECTED. She highlighted that the
proposal was a reduction to the Permanent Fund Dividend
(PFD). She explained that the proposal would bring the
75/25 PFD in the House budget to the Senate amount of
$1,000 per person.
Chair Josephson agreed. He asked Mr. Painter if the
proposal would result in a PFD of $1,000.
Mr. Painter replied affirmatively.
Representative Johnson MAINTAINED the OBJECTION.
A roll call vote was taken on the motion.
IN FAVOR: Representative Schrage, Senator Stedman,
Representative Josephson, Senator Hoffman
OPPOSED: Representative Johnson, Senator Kaufmann
The MOTION PASSED House 2/1 Senate 2/1. There being NO
further OBJECTION, it was so ordered.
Chair Josephson stated that the action closed the
conference-able items in the Permanent Fund.
3:22:39 PM
SUPPLEMENTAL OPERATING ITEMS
Vice-Chair Hoffman MOVED that the committee adopt the
following budget items for the Supplemental Operating
Budget:
Item 1 House, effective date June 30th, 2025
Item 75 Senate
There being NO OBJECTION, it was so ordered.
Chair Josephson stated that the action closed all
conference-able items in the Supplemental Operating Budget.
3:23:08 PM
MONETARY TERMS OF COLLECTIVE BARGAINING AGREEMENTS
Vice-Chair Hoffman MOVED that the committee adopt Packet 1
titled "Monetary Terms of Collective Bargaining Agreements"
(copy on file). The packet funded the negotiated contracts
for: Marine Engineers' Beneficial Association, Confidential
Employees Association, and Inlandboatmen's Union of the
Pacific, Alaska Region.
There being NO OBJECTION, it was so ordered.
Chair Josephson stated that the action accepted the
Monetary Terms of the Collective Bargaining Agreements.
3:24:11 PM
FISCAL NOTES
Vice-Chair Hoffman MOVED that the committee adopt Packet 2,
titled Fiscal Notes (copy on file):
This document adds a new Section 2 to the Operating
Bill, HB 53. Section 2 makes appropriations associated
with the bills listed. If a bill listed either fails
to pass, its substance fails to be incorporated in
some other measure, or is vetoed by the Governor, the
appropriations associated with that bill are reduced.
The attached reports prepared by the Legislative
Finance Division list the fund sources and agencies
associated with the bill.
Representative Johnson OBJECTED for discussion. She
clarified that approving the fiscal notes did not mean that
she was in favor of the bills.
Co-Chair Josephson asked Mr. Painter if he had any remarks
on the fiscal notes.
Mr. Painter made comments on three items associated with
the fiscal notes. The first was regarding HB 57, the
education funding bill. The largest fiscal note for HB 57
was a public education fund capitalization; it was included
in members' packets as information and would not be
reflected in the bill. The existing common language for the
public education fund was for the amount necessary and the
effect of the bill would be captured by existing language.
He explained that the Legislative Finance Division (LFD)
budget reports counted funding included as outside of the
formula funding that was contingent on the failure of HB
57. If HB 57 was enacted into law, LFD would switch to
counting an increase to the estimate for the public
education fund capitalization. He clarified it would be
counted either way, but not simultaneously. Second, there
was a conference committee prepared note for SB 95,
childcare funding legislation. He explained that the
funding was zeroed out in the conference committee motion;
therefore, it made the funding contingent on the enactment
of SB 95. Third, the funding was zeroed out for SB 97 and
was contingent on the enactment of SB 97. The conference
committee note changed the governor's proposed fund source
from UGF to general fund program receipts, which matched
the budget passed by the House.
3:27:59 PM
Representative Johnson WITHDREW the OBJECTION.
There being NO further OBJECTION, Packet 2: Fiscal Notes
was ADOPTED.
3:28:25 PM
FUNDING FY2025 APPROPRIATIONS
Vice-Chair Hoffman MOVED Conference Committee Amendment 3,
34-GH1462\B.A.6 (Marx, 5/18/25)[note: due to the length of
the amendment it is not included here. See copy on file for
detail].
Representative Johnson OBJECTED.
Vice-Chair Hoffman explained the amendment:
In summary, this amendment authorizes a draw from the
Constitutional Budget Reserve Fund for appropriations
in Fiscal Year 2025 and provides contingency language
that authorizes using funds from the Alaska Industrial
Development and Export Authority and the Higher
Education Investment Fund if the CBR draw fails to be
enacted. Specifically, if the CBR draw fails to be
enacted, this amendment authorizes using up to $100
million from the unexpended and unobligated balance of
the reserves of AIDEA for appropriations in Fiscal
Year 2025. It further authorizes a draw from the
Higher Ed fund if the funds from AIDEA do not balance
revenue and general funds for Fiscal Year 2025.
Representative Johnson noted that the amendment took money
from Alaska Industrial Development and Export Authority
(AIDEA) receipts to fund the FY 25 budget. She recognized
it was contingency language, but she cautioned if it took
place it would impact AIDEA's bond rating. She thought it
was not the best way to fund the budget. She highlighted
that the Higher Education Investment Fund (HEIF) was set up
similarly to the Permanent Fund with a percent of market
value (POMV) draw, which would be overdrawn if the funding
was needed. She would prefer a more robust negotiation on a
CBR draw rather than the use of contingency language that
would allow the normal process to be bypassed.
Vice-Chair Hoffman relayed that the FY 25 budget needed
approximately $200 million. The amendment proposed to use
the Constitutional Budget Reserve (CBR). The decision would
be made individually and required a three-quarter vote of
both bodies. If the vote was accomplished, the governor's
FY 25 supplemental would be funded. If the vote failed,
there was a waterfall effect that would enable the use of
up to $100 million in unexpended balance from AIDEA. The
remainder needed to fund the FY 25 budget would come from
HEIF funds. He pointed out that AIDEA and HEIF funds would
not be needed if the legislature was able to achieve and
support the governor's FY 25 budget.
3:33:13 PM
Senator Kaufman asked for a high level overview of what the
was being funded in the supplemental budget.
Vice-Chair Hoffman noted that dialogs on the supplemental
had taken place previously. The supplemental was what the
governor had requested. The only addition was an additional
appropriation of $5 million for fire prevention due to low
snowfall over the winter and a higher potential for fires.
The funding had been included to help protect Alaskan
citizens.
Senator Stedman provided clarity for the public. He
explained that the previous session the legislature based
the budget on $78 [per barrel of oil]. He relayed that as
FY 25 advanced, the $78 price of oil was not realized,
which pushed the current year into deficit. The current
number was in the $68 range. There were significant
concerns there may be a dry spring, which could put the
Kenai and Fairbanks at risk of fires. Therefore, the
legislature added $5 million for fire suppression. Other
than that, the budgetary numbers were created by some
unforeseen expenditures, but mainly resulted from a decline
in revenue expectations. The legislature had a
constitutional obligation to pass a balanced budget. It was
the normal course of action for the legislature to use
savings to balance the budget. He relayed there was no
revenue in FY 25 to use. The CBR language had to be in the
budget to allow access via a three-quarter vote. He stated
that in the event members of the legislature did not want
to draw on a savings account, there were no other options.
He remarked that not paying the bills did not work. The
language [included in Amendment 3] was a fallback in the
event the savings could not be used. He believed savings
should be used instead of reverting to AIDEA or HEIF.
Senator Stedman stated that at the end of the day, the
language was included in order to ensure the legislature
met its constitutional obligation. He elaborated that each
of the elected legislators would decide where they wanted
to get the money. He pointed out that some responses had
been to slow down expenditures; however, the administration
did not have the ability to draw down $200 million by the
end of June for FY 25. He underscored that the option was
highly suspect and not a solution. He supported the
proposal in Amendment 3. He hoped it was not necessary to
use AIDEA or HEIF funds. There was a little under $3
billion in the CBR and the proposal would draw $200
million. The legislature had been very concerned with not
drawing the account down too fast because it may be needed
the following year. He urged his colleagues to support the
CBR draw.
3:38:43 PM
Chair Josephson asked Mr. Painter to review the items in
the supplemental. He recalled there was $81 million "of red
ink" from the oil price decrease. The budget included
disaster relief, firefighting funding, and $4 million for a
lawsuit against the state involving foster care children.
Mr. Painter highlighted $13 million for a settlement and
new investment projects required by the federal government
due to the state's performance on public assistance
programs. The budget included funds for the Department of
Corrections and $14 million in additional general funds for
Medicaid. The budget included $7 million in additional
capital funds for the Alaska Marine Highway System (AMHS)
from the general fund. He explained that much of the
funding would cover AMHS maintenance that had already taken
place. He explained that the governor had proposed use of
AMHS fund, but the use of the funds would overdraw the
account.
Representative Johnson listed the Department of Corrections
and $10 million for the Alaska Seafood Marketing Institute
(ASMI).
Representative Johnson MAINTAINED the OBJECTION to
Amendment 3.
A roll call vote was taken on the motion.
IN FAVOR: Senator Kaufman, Senator Stedman, Representative
Schrage, Senator Hoffman, Representative Josephson
OPPOSED: Representative Johnson
The MOTION PASSED Senate 3/0 House 2/1. There being NO
further OBJECTION, Amendment 3 was ADOPTED.
3:41:51 PM
AT EASE
3:46:22 PM
RECONVENED
Chair Josephson noted there were a couple of items to take
up prior to moving the bills from committee.
Vice-Chair Hoffman MOVED to reopen the Department of
Natural Resources.
There being NO OBJECTION, it was so ordered.
Vice-Chair Hoffman MOVED to reopen Item 9 within the
Department of Natural Resources.
Senator Kaufman OBJECTED for discussion.
Vice-Chair Hoffman MOVED to change the fund source to UGF
instead of vehicle rental tax.
Chair Josephson asked Vice-Chair Hoffman to describe the
motion with full details.
Vice-Chair Hoffman explained that the motion pertained to
Item 9 in the Department of Natural Resources budget, which
took the House number minus $222,900. The motion would
change the fund source from vehicle rental tax to UGF.
Senator Kaufman WITHDREW the OBJECTION.
There being NO further OBJECTION, it was so ordered.
Vice-Chair Hoffman believed Senator Kaufman had removed his
objection to the reopening of the Department of Natural
Resources budget items.
Vice-Chair Hoffman MOVED to ADOPT Item 9 in the Department
of Natural Resources budget, House minus $222,900. The
motion would change the fund source from vehicle rental tax
to a one-time UGF increment.
Senator Kaufman OBJECTED. He WITHDREW the OBJECTION.
There being NO further OBJECTION, it was so ordered.
3:49:21 PM
Vice-Chair Hoffman MOVED to reopen the Department of
Health.
There being NO OBJECTION, it was so ordered.
Vice-Chair Hoffman MOVED to reopen Items 35 and 36 in the
Department of Health.
There being NO OBJECTION, it was so ordered.
Vice-Chair Hoffman MOVED to ADOPT Items 35 and 36 House.
There being NO OBJECTION, it was so ordered.
Senator Kaufman wanted to reopen Item 16 in the Department
of Health. The item was $85,000 for a media campaign. He
believed that the committee should look for recovering
funding to help pay for funds it had just allocated. He
MOVED to ADOPT the Senate version of Item 16.
Vice-Chair Hoffman OBJECTED to reopening Item 16.
A roll call vote was taken on the motion.
IN FAVOR: Representative Johnson, Senator Kaufman
OPPOSED: Senator Stedman, Representative Schrage,
Representative Josephson, Senator Hoffman
The MOTION to reopen Item 16 in the Department of Health
budget FAILED House 1/2 Senate 1/2.
Chair Josephson stated that the action closed all items in
Department of Health.
3:52:08 PM
Vice-Chair Hoffman MOVED that the committee give the
Legislative Finance Division and Legislative Legal Services
the ability to make technical and conforming adjustments to
CCS HB 53.
There being NO OBJECTION, it was so ordered.
Vice-Chair Hoffman MOVED to report CCS HB 53 out of
committee with individual recommendations.
There being NO OBJECTION, CCS HB 53 was REPORTED out of
committee with a "do pass" recommendation.
Vice-Chair Hoffman MOVED that the committee give the
Legislative Finance Division and Legislative Legal Services
the ability to make technical and conforming adjustments to
CCS HB 55.
There being NO OBJECTION, it was so ordered.
3:53:08 PM
Vice-Chair Hoffman MOVED to report the CCS HB 55 out of
Committee with individual recommendations.
There being NO OBJECTION, CCS HB 55 was REPORTED out of
committee with a "do pass" recommendation.
Chair Josephson took an at ease for committee members to
sign the reports.
3:53:29 PM
AT EASE
3:55:54 PM
RECONVENED
Chair Josephson stated that the meeting closed out all
conference-able items in the operating and mental health
appropriation bills, HB 53 and HB 55. The work of the
conference committee was concluded. He thanked conference
committee members and their staff, especially Vice-Chair
Hoffman and his aide Pete Ecklund on the Senate side and
Brodie Anderson and Alexander Schroeder on the House side.
He thanked the Legislative Finance Division, Legislative
Legal Services, and House Finance Committee staff.
Representative Johnson thanked her chief of staff Remond
Henderson.
Vice-Chair Hoffman thanked the House members for working
with the Senate on a compromise budget. He stated it had
been a difficult year, but he believed the committee had
done justice to the citizens of Alaska.
Chair Josephson agreed.
Vice-Chair Hoffman MOVED to ADJOURN the meeting. There
being NO OBJECTION, it was so ordered.
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