Legislature(2025 - 2026)ADAMS 519

03/10/2025 08:30 AM House FINANCE

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08:34:16 AM Start
08:35:32 AM Subcommittee Closeout Reports
08:37:00 AM Office of the Governor
08:42:31 AM Legislature
08:46:20 AM Department of Revenue
08:56:37 AM Department of Environmental Conservation
09:04:18 AM Department of Public Safety
09:12:39 AM Department of Fish and Game
09:20:59 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+= HB 53 APPROP: OPERATING BUDGET; CAP; SUPP TELECONFERENCED
Heard & Held
+= HB 55 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
Closeout Reports
- Office of the Governor
- Legislature
- Department of Revenue
- Department of Environmental Conservation
- Department of Public Safety
- Department of Fish and Game
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 53                                                                                                             
                                                                                                                                
     "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;                                                                    
     making  reappropriations;  making appropriations  under                                                                    
     art.  IX,  sec. 17(c),  Constitution  of  the State  of                                                                    
     Alaska,  from the  constitutional budget  reserve fund;                                                                    
     and providing for an effective date."                                                                                      
                                                                                                                                
HOUSE BILL NO. 55                                                                                                             
                                                                                                                                
     "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."                                                                                                        
                                                                                                                                
^SUBCOMMITTEE CLOSEOUT REPORTS                                                                                                
                                                                                                                                
8:35:32 AM                                                                                                                    
                                                                                                                                
^OFFICE OF THE GOVERNOR                                                                                                       
                                                                                                                                
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,                                                                             
reviewed the finance subcommittee recommendations for the                                                                       
Office of the Governor (copy on file):                                                                                          
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of  the  Governor  submits  the  following  recommended                                                                    
     operating  budget  for  FY2026  to  the  House  Finance                                                                    
     Committee:                                                                                                                 
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF) $31,407,100                                                                               
     Designated General Funds (DGF)   $0                                                                                        
     Other Funds                      $432,600                                                                                  
     Federal Funds                    $151 900                                                                                  
     Total                            $31,991,600                                                                               
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY26                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
    recommendation is an increase of $183,200, or 0.6%.                                                                         
                                                                                                                                
8:37:00 AM                                                                                                                    
                                                                                                                                
Representative Johnson stated that she did not have the                                                                         
report.                                                                                                                         
                                                                                                                                
8:37:08 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
8:37:26 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Mr. Anderson continued reading the report:                                                                                      
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-time  147                                                                                                   
     Permanent Part-time  1                                                                                                     
     Temporary            24                                                                                                    
     Total                172                                                                                                   
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The House  Finance Budget  Subcommittee for  the Office                                                                    
     of the  Governor reviewed the FY2026  Governor's budget                                                                    
     request,  including  amendments,   and  recommends  the                                                                    
     following actions:                                                                                                         
                                                                                                                                
     Accept  all   the  Governor's  proposed   budget.  This                                                                    
     includes the following items:                                                                                              
                                                                                                                                
         Transfer in of $175.8 thousand of Unrestricted                                                                      
          General    Fund    from    the    Department    of                                                                    
          Administration  in accordance  with Administrative                                                                    
          Order  356,  which   transferred  labor  relations                                                                    
          functions from the Department of Administration                                                                       
          to the Department of Law                                                                                              
         Replace $7.4 thousand of Inter-Agency Receipts                                                                      
         Authority with Unrestricted General Funds                                                                              
         Approve the structure change creating a new                                                                         
          allocation  for the  Facilities  Rent -  Non-State                                                                    
          Owned  to   in  accordance  with   Alaska  Statute                                                                    
          37.07.020(e)   and  rename   the  Allocation   and                                                                    
          Appropriation                                                                                                         
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
     The House Finance Budget Subcommittee for the Office                                                                       
     of the Governor adopts the attached BA Report.                                                                             
                                                                                                                                
8:39:09 AM                                                                                                                    
                                                                                                                                
Representative  Galvin asked  for  more  context around  why                                                                    
funds would transfer  from "labor" to the  Department of Law                                                                    
(DOL).                                                                                                                          
                                                                                                                                
Mr. Anderson  responded that it  was a transfer of  funds in                                                                    
from   the  Department   of  Administration's   (DOA)  labor                                                                    
division and was  the result of an  administrative order. He                                                                    
suggested that Mr. Alexei Painter add more details.                                                                             
                                                                                                                                
Representative  Galvin stated  that  more  details were  not                                                                    
necessary.                                                                                                                      
                                                                                                                                
8:40:01 AM                                                                                                                    
                                                                                                                                
^LEGISLATURE                                                                                                                  
                                                                                                                                
Mr.    Anderson    reviewed   the    finance    subcommittee                                                                    
recommendations for the Legislature (copy on file):                                                                             
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature    submits   the    following   recommended                                                                    
     operating  budget  for  FY2026  to  the  House  Finance                                                                    
     Committee:                                                                                                                 
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)  $91,382,500                                                                              
     Designated General Funds (DGF)     $655,300                                                                                
     Other Funds                        $455,600                                                                                
     Federal Funds                      $0                                                                                      
     Total                              $92,493,400                                                                             
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY26                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
    recommendation is an increase of $255,500, or 0.3%.                                                                         
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-time  298                                                                                                   
     Permanent Part-time  256                                                                                                   
     Temporary             27                                                                                                   
     Total                581                                                                                                   
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature reviewed the  FY2026 Legislative Budget and                                                                    
     Audit's,  and  Legislative Council's  budget  requests,                                                                    
     including  amendments,  and  recommends  the  following                                                                    
     actions:                                                                                                                   
                                                                                                                                
     1)   Accept all  of the Legislative Budget  and Audit's                                                                    
     budget.                                                                                                                    
     2)   Accept all of the Legislative Council 's budget.                                                                      
    3)   The subcommittee took two additional actions:                                                                          
         Accepted a Governor's amendment of $210.2                                                                           
          thousand of Other funds to reflect the correct                                                                        
          Restorative    Justice     Account    distribution                                                                    
          calculation                                                                                                           
         $15.4 thousand increase in Program Receipts to                                                                      
          reflect a Wells Fargo Lease Revenue Increase in                                                                       
          the Legislative Council Appropriation.                                                                                
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Legislature adopts the attached BA Report.                                                                                 
                                                                                                                                
8:42:31 AM                                                                                                                    
                                                                                                                                
Representative  Stapp relayed  that he  had a  few questions                                                                    
about  the classifications  in  the  attached budget  action                                                                    
(BA) report  (copy on file).  He understood that  under item                                                                    
3, nine  permanent part-time employees  were being  moved to                                                                    
permanent full-time  employees. He  added that  another nine                                                                    
permanent part-time employees were  being moved to permanent                                                                    
full-time  employees under  item  9. He  asked  if the  nine                                                                    
employees were the same employees  being moved around, or if                                                                    
the action would impact 18 employees.                                                                                           
                                                                                                                                
Mr. Anderson asked if Mr.  Painter or Representative Hannan,                                                                    
the subcommittee  chair, could  respond. He noted  that nine                                                                    
of the  positions were for administrative  services and nine                                                                    
other positions were for legal and research services.                                                                           
                                                                                                                                
Representative Hannan replied that  she could not recall all                                                                    
of the details,  but she could offer  reassurance that there                                                                    
were not 18 new positions.                                                                                                      
                                                                                                                                
8:44:22 AM                                                                                                                    
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
responded that  the positions in both  cases were previously                                                                    
reflecting the  budget as 11-month positions.  The positions                                                                    
were now being reflected as  12-month positions. Many of the                                                                    
employees were now  working the full year and  the month off                                                                    
was no longer applicable for most employees.                                                                                    
                                                                                                                                
Representative   Stapp  noted   there   was  an   additional                                                                    
increment  for  one  non-permanent   position  to  clear  an                                                                    
administrative  backlog.   He  asked  how   substantial  the                                                                    
administrative backlog was.                                                                                                     
                                                                                                                                
Representative  Hannan   responded  that  the   position  in                                                                    
question  was within  the Ethics  Office. There  was an  18-                                                                    
month gap  with significant  staff changes  and much  of the                                                                    
confidential paperwork  and filing was not  completed during                                                                    
that  time period.  She explained  that it  was a  temporary                                                                    
increment because  the expectation  was that  the additional                                                                    
staff would eliminate the backlog.                                                                                              
                                                                                                                                
8:46:15 AM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF REVENUE                                                                                                        
                                                                                                                                
8:46:20 AM                                                                                                                    
                                                                                                                                
Mr.    Anderson    reviewed   the    finance    subcommittee                                                                    
recommendations for  the Department  of Revenue  (DOR) (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department   of    Revenue   submits    the   following                                                                    
     recommended operating  budget for  FY2026 to  the House                                                                    
     Finance Committee:                                                                                                         
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $33,816,400                                                                             
     Designated General Funds (DGF)      $2,599,200                                                                             
     Other Funds                         $353,474,200                                                                           
     Federal Funds                       $92,952 600                                                                            
     Total                               $482,842,400                                                                           
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY26                                                                    
     Adjusted   Base  to   the  House   Subcommittee  budget                                                                    
     recommendation is an increase of $144,000 or .4%.                                                                          
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-time  839                                                                                                   
     Permanent Part-time   24                                                                                                   
     Temporary             22                                                                                                   
     Total                885                                                                                                   
                                                                                                                                
     BUDGET ACTION:                                                                                                             
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Revenue  reviewed the  FY2026 Governor's                                                                    
     budget  request, including  amendments, and  recommends                                                                    
     the following actions:                                                                                                     
                                                                                                                                
     1)  Accept the  Department's  transaction for  Taxation                                                                    
     and  Treasury  Division, Alaska  Retirement  Management                                                                    
     Board,   Permanent   Fund   Division,   Child   Support                                                                    
     Enforcement, and Administration and Support.                                                                               
     2)  Accept  all  transactions for  the  Long-Term  Care                                                                    
     Ombudsman Office, which includes the following:                                                                            
         $144.0 thousand of Unrestricted General Funds for                                                                   
          the addition of one new position.                                                                                     
     3)  Accept  the   Alaska  Housing  Finance  Corporation                                                                    
     transactions including:                                                                                                    
         New structure for the Alaska Sustainable Energy                                                                     
          Corporation and transfer of $457.0 thousand of                                                                        
          Unrestricted   General   funds    into   the   new                                                                    
          allocation                                                                                                            
     4)  Accept   the  Alaska  Permanent   Fund  Corporation                                                                    
     transactions, except for the following:                                                                                    
         Deny the request to create a single appropriation                                                                   
          for APFC Operations.                                                                                                  
         Retain the two-appropriation structure for "APFC                                                                    
          Juneau Office Operations", and "APFC Investment                                                                       
          Management Fees".                                                                                                     
                                                                                                                                
     Recommendations:                                                                                                           
     The House Finance Budget Subcommittee for the                                                                              
     Department of Revenue recommends the following for                                                                         
     consideration in House Finance Committee:                                                                                  
                                                                                                                                
     1) Structure change including an Appropriation titled                                                                      
     "APFC Anchorage Office Operations", with the minimal                                                                       
     amount of funding required.                                                                                                
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
     The House Finance Budget Subcommittee for the                                                                              
     Department of Revenue adopts the attached report:                                                                          
                                                                                                                                
         The House Finance Subcommittee for the Department                                                                   
          of Revenue Budget Action Report                                                                                       
                                                                                                                                
8:50:12 AM                                                                                                                    
                                                                                                                                
Co-Chair Josephson  noted that Mr. Anderson  stated that the                                                                    
Alaska Permanent  Fund Corporation (APFC) had  dissolved the                                                                    
Anchorage appropriation, but the  corporation had been still                                                                    
operating   an   Anchorage   office.   He   asked   if   his                                                                    
understanding was correct.                                                                                                      
                                                                                                                                
Mr.  Anderson responded  in  the  affirmative. The  governor                                                                    
vetoed  the  funding  for  the   Anchorage  office  and  the                                                                    
appropriation for  the office was dissolved.  There had been                                                                    
discussion about whether  money used in a  location that did                                                                    
not  fall  under a  specific  appropriation  was legal.  The                                                                    
office  was  currently  being  funded  through  APFC  Juneau                                                                    
operations.                                                                                                                     
                                                                                                                                
Representative  Stapp understood  that  APFC indicated  last                                                                    
year that  it wanted  an Anchorage  office, but  the request                                                                    
was  vetoed. He  understood  that the  veto  meant that  the                                                                    
corporation could  not operate  an Anchorage  office because                                                                    
it  was  not given  any  money  to  operate the  office.  He                                                                    
understood that  APFC had decided  to operate  the Anchorage                                                                    
office despite this.                                                                                                            
                                                                                                                                
Co-Chair Foster responded that last  year, the House did not                                                                    
make any  changes to the  Anchorage office funding,  but the                                                                    
Senate indicated  that it  did not want  APFC to  operate an                                                                    
Anchorage  office; however,  the  allocation was  ultimately                                                                    
included  in   the  budget  that  was   transferred  to  the                                                                    
governor. He explained that the  governor vetoed the funding                                                                    
and the structure  of the funding. The Senate  had created a                                                                    
separate line  item for the  Anchorage office  and indicated                                                                    
that  it would  only fund  the office  with $100,  which was                                                                    
intended to decommission the office.  Part of the discussion                                                                    
was that some  people wanted to retain the  resources of the                                                                    
Anchorage office in Juneau and  did not want the corporation                                                                    
to  move  to  Anchorage  over time.  Many  people  were  not                                                                    
pleased  with APFC  defying  the  legislature's wishes.  The                                                                    
issue  ultimately  came  down   to  creating  structures  to                                                                    
disallow APFC to create the Anchorage office.                                                                                   
                                                                                                                                
8:53:42 AM                                                                                                                    
                                                                                                                                
Representative Johnson  noted that APFC had  established the                                                                    
office  prior  to the  current  budget  process, during  the                                                                    
middle  of the  previous  year. When  the  budget was  later                                                                    
considered,  the  question  was  not whether  to  start  the                                                                    
office,   but  whether   to  continue   funding  it   or  to                                                                    
decommission it.  She asked  about item 2  in the  BA report                                                                    
(copy  on  file), which  concerned  the  addition of  a  new                                                                    
position in the Ombudsman's Office.  She stated that she had                                                                    
not  done any  research  on  the matter  and  asked why  the                                                                    
position was  needed. She  asked whether  there had  been an                                                                    
increase in Ombudsman-related activity.                                                                                         
                                                                                                                                
Mr.  Anderson responded  that the  Office of  Long-Term Care                                                                    
Ombudsman  exclusively conducted  investigations related  to                                                                    
long-term care  facilities such as the  Alaska Pioneer Home.                                                                    
He stated  that the  current caseload  had increased  to the                                                                    
extent that it exceeded the  capacity of the existing staff.                                                                    
As a  result, the  budget included the  creation of  one new                                                                    
position and  another position that had  been transferred to                                                                    
assist with the caseload of active investigations.                                                                              
                                                                                                                                
Co-Chair Josephson  relayed that the committee  would hear a                                                                    
revenue forecast update from DOR in a few days.                                                                                 
                                                                                                                                
Representative Allard stated that  she recalled requesting a                                                                    
job description from DOR when  it had previously come before                                                                    
the  committee.  She asked  whether  the  document had  been                                                                    
distributed to Co-Chair Josephson.                                                                                              
                                                                                                                                
Co-Chair Josephson  asked for clarification  regarding which                                                                    
job description she was referring to.                                                                                           
                                                                                                                                
Representative Allard  responded that the request  was for a                                                                    
new  hire, which  she believed  was listed  at approximately                                                                    
$397,000.                                                                                                                       
                                                                                                                                
Co-Chair Josephson replied that he would look into it.                                                                          
                                                                                                                                
Co-Chair  Foster addressed  Representative Allard  and asked                                                                    
whether she was referring to  item number 25, which involved                                                                    
adding a portfolio manager in  support of the private income                                                                    
team for $391,000.                                                                                                              
                                                                                                                                
Representative  Allard replied  that she  believed that  was                                                                    
the correct item.  She clarified that she  had requested the                                                                    
job description to determine whether  she wanted to offer an                                                                    
amendment.                                                                                                                      
                                                                                                                                
8:56:24 AM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF ENVIRONMENTAL CONSERVATION                                                                                     
                                                                                                                                
8:56:37 AM                                                                                                                    
                                                                                                                                
TIMOTHY CLARK,  STAFF, REPRESENTATIVE SARA  HANNAN, reviewed                                                                    
the finance subcommittee  recommendations for the Department                                                                    
of Environmental Conservation (DEC)(copy on file):                                                                              
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Environmental Conservation held  a total                                                                    
     of   three   meetings   and   submits   the   following                                                                    
     recommended  department operating  budget  for FY26  to                                                                    
     the House Finance Committee.                                                                                               
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)     $23,384.2                                                                             
     Designated General Funds (DGF)       $23,922.1                                                                             
     Other Funds                          $24,640.9                                                                             
     Federal Funds                        $42,913.0                                                                             
     Total                                $114,860.2                                                                            
                                                                                                                                
     Compared   to  the   FY26  Governor's   Amended  budget                                                                    
     proposal, the Subcommittee  recommendations represent a                                                                    
     reduction of  $1,323.7 (-5.4%) in  Unrestricted General                                                                    
     Funds,  for a  total reduction  of $1,323.7  (-1.1%) in                                                                    
     all funds.                                                                                                                 
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-time  558                                                                                                   
     Permanent Part-time    0                                                                                                   
     Temporary              9                                                                                                   
     Total                567                                                                                                   
                                                                                                                                
     BUDGET ACTIONS                                                                                                             
                                                                                                                                
     The   subcommittee  adopted   all  of   the  governor's                                                                    
     proposed Budget  Action items except Item  8. This item                                                                    
     would have appropriated $1,450.1  to begin an effort by                                                                    
     the department  to assume state primacy  over the Clean                                                                    
     Water  Act's Section  404 Dredge  and Fill  permitting.                                                                    
     This  permitting  is  currently   carried  out  by  the                                                                    
     federal government at no cost to the state.                                                                                
                                                                                                                                
     The subcommittee  also added one item-number  9. Item 9                                                                    
     adds an  Environmental Program  Specialist III  for the                                                                    
     department's Commercial  Passenger Vessel Environmental                                                                    
     Compliance  Program. This  will enable  the program  to                                                                    
     conduct  more compliance  inspections of  cruise ships.                                                                    
     The  cost  of  this  permanent  full-time  position  is                                                                    
     $126.4 in Unrestricted General Funds.                                                                                      
                                                                                                                                
     Additional Budget Item of Note                                                                                             
         Item 5: The only approved method for detecting                                                                      
          paralytic shellfish poisoning  in Alaska shellfish                                                                    
          is    the    mouse   bioassay.    Recently,    the                                                                    
          Environmental    Health   Laboratory's    previous                                                                    
          supplier  of   laboratory  mice   suddenly  ceased                                                                    
          operations,  forcing   the  lab   to  turn   to  a                                                                    
          significantly  more expensive  source. Hence,  the                                                                    
          governor's request for a UGF increment of $40.0.                                                                      
                                                                                                                                
     SUBCOMMITTEE AMENDMENTS                                                                                                    
                                                                                                                                
     The  chair welcomed  amendments from  all members.  One                                                                    
     was offered and debated and was not adopted.                                                                               
                                                                                                                                
     ATTACHED REPORT                                                                                                            
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of  Environmental Conservation  forwards the                                                                    
     attached report:                                                                                                           
                                                                                                                                
         The House Finance Subcommittee for the Department                                                                   
          of   Environmental   Conservation  Budget   Action                                                                    
          Report                                                                                                                
                                                                                                                                
9:00:41 AM                                                                                                                    
                                                                                                                                
Representative Tomaszewski asked  whether the administration                                                                    
had  provided an  explanation for  why it  wanted to  assume                                                                    
responsibility for  administering Section  404 of  the Clean                                                                    
Water  Act  instead  of  continuing  to  allow  the  federal                                                                    
government to do so.                                                                                                            
                                                                                                                                
Mr.  Clark  responded  that  DEC  had  appeared  before  the                                                                    
finance  subcommittee   and  explained  its   reasoning.  He                                                                    
reported that  the department  believed state  primacy could                                                                    
improve local  knowledge. He added  that the  department had                                                                    
also  cited   the  importance  of  providing   certainty  to                                                                    
industry and  presented additional  arguments in  support of                                                                    
the initiative. He noted that  the $1.45 million included in                                                                    
the  budget represented  only  the  beginning of  additional                                                                    
costs  to  the state.  The  cost  was expected  to  increase                                                                    
significantly  over a  relatively short  period of  time. He                                                                    
relayed that previous estimates  had indicated that the cost                                                                    
could reach $4.9  million and could continue  to increase to                                                                    
between $6  million and $8  million. He noted that  the cost                                                                    
was currently borne by the federal government.                                                                                  
                                                                                                                                
Representative  Tomaszewski  asked  if there  had  been  any                                                                    
discussion  about the  timeliness of  decisions governed  by                                                                    
the Clean Water Act. He  asked whether there had been issues                                                                    
related to processing delays.                                                                                                   
                                                                                                                                
Mr.  Clark responded  that he  did not  recall any  specific                                                                    
examples  of  significantly  delayed  decisions  by  federal                                                                    
officials administering the program.                                                                                            
                                                                                                                                
Co-Chair  Josephson noted  the  committee would  move on  to                                                                    
hearing subcommittee  recommendations for the  Department of                                                                    
Public Safety.                                                                                                                  
                                                                                                                                
Representative  Allard requested  to ask  a question  on the                                                                    
previously reviewed budget.                                                                                                     
                                                                                                                                
Co-Chair Josephson  acknowledged her question and  asked Mr.                                                                    
Clark to return to the table.                                                                                                   
                                                                                                                                
Representative Allard  referred to item  8 of the  BA report                                                                    
(copy on  file) and asked  about the addition of  five full-                                                                    
time positions totaling $1,450,000.  She asked if the figure                                                                    
was correct.                                                                                                                    
                                                                                                                                
Mr. Clark responded in the affirmative.                                                                                         
                                                                                                                                
Representative  Allard  asked  if   each  position  cost  an                                                                    
average of $290,000.                                                                                                            
                                                                                                                                
Mr. Clark responded that he had not done the math but the                                                                       
figure sounded correct.                                                                                                         
                                                                                                                                
Co-Chair Josephson clarified that the five positions had                                                                        
been rejected and would not be funded.                                                                                          
                                                                                                                                
9:04:15 AM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF PUBLIC SAFETY                                                                                                  
                                                                                                                                
9:04:18 AM                                                                                                                    
                                                                                                                                
RACHAEL GUNN, STAFF, REPRESENTATIVE NELLIE JIMMIE, reviewed                                                                     
the finance subcommittee recommendations for the Department                                                                     
of Public Safety (DPS) (copy on file):                                                                                          
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Public  Safety  submits  the  following                                                                    
     recommended  operating budget  for  FY26  to the  House                                                                    
     Finance Committee.  Note that  that all dollars  are in                                                                    
     thousands  and the  Subcommittee's recommendations  are                                                                    
     limited  to  the  numbers   section  of  the  operating                                                                    
     budget.                                                                                                                    
                                                                                                                                
    Source of Funds          Total     Change   Percent                                                                         
     Unrestricted                                                                                                               
    General Funds (UGF)   283,589.9    10,496.1    3.8%                                                                         
     Designated General                                                                                                         
     Funds (DGF)             9,214.8      -387.1     -4%                                                                        
     Other Funds            16,047.4     1,727.7   12.1%                                                                        
     Federal Funds          41,124.3         0.0    0.0%                                                                        
     Total                 349,976.4    11,836.7    3.5%                                                                        
                                                                                                                                
     *Funding changes are in comparison to the FY25                                                                             
     Adjusted Base +                                                                                                            
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-time  1,008                                                                                                 
     Permanent Part-time     12                                                                                                 
     Temporary               34                                                                                                 
     Total                1,054                                                                                                 
                                                                                                                                
     BUDGET ACTIONS:                                                                                                            
                                                                                                                                
     The House  Finance Budget  Subcommittee for  the Alaska                                                                    
     Department  of  Public  Safety carefully  reviewed  and                                                                    
     discussed the Office of the Governor's FY26 operating                                                                      
     budget request and amendments from its members and the                                                                     
     Governor.                                                                                                                  
                                                                                                                                
     Budget Action                                                                                                              
                                                                                                                                
         Item 5 - Alaska State Troopers, 25% Reduction in                                                                    
          Personal Services for the Four Troopers and One                                                                       
          Criminal Justice Tech to Re-Establish Talkeetna                                                                       
          Post                                                                                                                  
         Item 9 - Replace: Purchase Two Transit Vans for                                                                     
          Crime Scene Response in Palmer                                                                                        
         with Item 10 - Purchase One Transit Van for Crime                                                                   
          Scene Response                                                                                                        
         Item 15 - 25% Reduction in Personal Services for                                                                    
          One Wildlife Trooper Position                                                                                         
         Item 22 - Village Public Safety Operations - Deny                                                                   
          Gov Amend Request for Additional Funding for                                                                          
          Northwest Arctic Borough Village Public Safety                                                                        
          Officer Program                                                                                                       
         Replace with Item 23 - Village Public Safety                                                                        
          Operations - Add Funding for Five New Village                                                                         
          Public Safety Officer, Housing, and Support                                                                           
                                                                                                                                
Co-Chair Josephson noted  that he wanted to  confirm that he                                                                    
was understanding  items 22 and 23  correctly. He understood                                                                    
that  the  governor  had proposed  funding  five  additional                                                                    
Village Public Safety Officers (VPSO)  and asked whether the                                                                    
recommendation  from the  DPS  finance  subcommittee was  to                                                                    
fund the five positions.                                                                                                        
                                                                                                                                
Ms. Gunn  responded that the governor's  amended request was                                                                    
not for five  new VPSOs but for support  services related to                                                                    
retention in  the Northwest Arctic Borough  (NAB), which she                                                                    
described  as a  geographic  strategy. She  stated that  the                                                                    
subcommittee   had   denied   the  request.   Instead,   the                                                                    
subcommittee  had   added  a  request  for   five  new  VPSO                                                                    
positions,  with an  associated cost  of approximately  $1.2                                                                    
million.  She  relayed  that an  additional  $400,000  would                                                                    
support services and housing.                                                                                                   
                                                                                                                                
Co-Chair  Josephson  asked  if  the  budget  added  10  VPSO                                                                    
positions or five VPSO positions.                                                                                               
                                                                                                                                
Ms. Gunn responded  that the budget added  10 VPSO positions                                                                    
overall. She  stated that the  addition was  consistent with                                                                    
the previous year, in which  10 VPSO positions had also been                                                                    
added.                                                                                                                          
                                                                                                                                
9:08:27 AM                                                                                                                    
                                                                                                                                
Representative Stapp  remarked that he  appreciated Co-Chair                                                                    
Josephson's  attention   to  detail.  He  thought   that  it                                                                    
appeared  that the  governor had  proposed targeted  funding                                                                    
for five  VPSOs specifically  in NAB.  He thought  it looked                                                                    
like the  subcommittee instead recommended funding  for five                                                                    
VPSOs wherever  the officers were  needed, allowing  for the                                                                    
officers to be distributed  based on demand. He acknowledged                                                                    
that the  program was  grant-based and  asked if  there were                                                                    
any other regions outside NAB  that were prepared to proceed                                                                    
with five VPSO hires.                                                                                                           
                                                                                                                                
Ms.  Gunn  responded  that there  were  applicants  in  most                                                                    
regions of Alaska ready to  be brought online. She clarified                                                                    
that the  governor's amended budget request  did not include                                                                    
the five additional VPSO  positions; instead, the governor's                                                                    
request was for support services.  She explained that it was                                                                    
more  expensive to  staff  VPSOs in  NAB  because many  were                                                                    
armed and  required different training.  Additionally, there                                                                    
was significant  competition in  salaries and  grant program                                                                    
structures   in  the   region.   She   clarified  that   the                                                                    
subcommittee's intention was to  bring five additional VPSOs                                                                    
online and  allocate $400,000 in  support services  in high-                                                                    
need areas across  the state. She commended  the program for                                                                    
operating   efficiently  and   for   its  effectiveness   in                                                                    
identifying areas of highest need.                                                                                              
                                                                                                                                
Representative Hannan stated that  it appeared that the five                                                                    
VPSO  positions  under  item  22  had  been  denied  by  the                                                                    
subcommittee.                                                                                                                   
                                                                                                                                
Ms. Gunn responded that item  22 from the governor's request                                                                    
did not  propose bringing five additional  VPSOs online, but                                                                    
instead provided  support services  for the VPSO  program in                                                                    
NAB.  She explained  that the  subcommittee had  reallocated                                                                    
the  same funding  amount under  item 3,  repurposing it  to                                                                    
support five  additional VPSOs across  the state  along with                                                                    
$400,000 in support services.                                                                                                   
                                                                                                                                
Representative Hannan responded  that she remained confused.                                                                    
She  stated that  Co-Chair Josephson  had asked  whether ten                                                                    
positions were being  added or just five, to  which Ms. Gunn                                                                    
had responded that ten were  being added. She noted that the                                                                    
funding seemed to only account for five positions.                                                                              
                                                                                                                                
Co-Chair  Josephson asked  if it  was possible  that in  the                                                                    
original budget  released on December  12, 2024,  there were                                                                    
five  requested   VPSOs,  and  the  governor   requested  an                                                                    
additional five  be added around  a month ago.  He suggested                                                                    
that  perhaps  five  were added  initially,  but  five  were                                                                    
deleted  in response  to  a second  request.  He asked  what                                                                    
happened to show a net of ten positions.                                                                                        
                                                                                                                                
Ms. Gunn  replied that there were  two separate VPSO-related                                                                    
items in the BA report  and both items requested five VPSOs.                                                                    
In  addition,  there was  a  separate  item allocating  $1.6                                                                    
million  for support  services.  She  directed attention  to                                                                    
item 21,  which funded five  VPSOs, item 22,  which proposed                                                                    
additional support  services that were denied,  and item 23,                                                                    
in  which  the  subcommittee  added funding  for  five  more                                                                    
VPSOs. She  confirmed that item  21 included a  $1.2 million                                                                    
allocation.                                                                                                                     
                                                                                                                                
Representative Hannan acknowledged that  item 21 had been on                                                                    
the  previous  page  of  the  report,  which  had  initially                                                                    
confused her.                                                                                                                   
                                                                                                                                
9:12:30 AM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF FISH and GAME                                                                                                  
                                                                                                                                
9:12:39 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:13:06 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
KEENAN   MILLER,   STAFF,  REPRESENTATIVE   NELLIE   JIMMIE,                                                                    
reviewed  the finance  subcommittee recommendations  for the                                                                    
Department of Fish and Game (DFG) (copy on file):                                                                               
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Fish  and Game  submits  the  following                                                                    
     recommended  operating budget  for  FY26  to the  House                                                                    
     Finance Committee.  Note that  that all dollars  are in                                                                    
     thousands.                                                                                                                 
                                                                                                                                
     RECCOMENDATIONS                                                                                                            
                                                                                                                                
     Source of Funds       Total     Change   Percent                                                                           
     Unrestricted                                                                                                               
     General Funds (UGF) 74,262.5    1,695.4    2.3%                                                                            
     Designated                                                                                                                 
     General Funds (DGF) 12,941.5     (500.0)  (3.7%)                                                                           
     Other Funds         87,670.4    8,592.0   10.9%                                                                            
     Federal Funds       92,568.4      265.0    0.3%                                                                            
     Total              267,442.8   10,052.4    3.9%                                                                            
                                                                                                                                
     *Funding changes are in comparison to the FY25                                                                             
     adjusted Base +                                                                                                            
                                                                                                                                
     Positions                                                                                                                  
     Permanent Full-time    853                                                                                                 
     Permanent Part-time    586                                                                                                 
     Temporary                1                                                                                                 
     Total                 1,440                                                                                                
                                                                                                                                
     BUDGET ACTIONS:                                                                                                            
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Fish  and  Game  carefully reviewed  the                                                                    
     Office of the Governor's  FY26 operating budget request                                                                    
     and amendments from its members and the Governor.                                                                          
                                                                                                                                
     The Subcommittee accepts  the budget proposal submitted                                                                    
     by  the  Office  of  the Governor  with  the  following                                                                    
     changes:                                                                                                                   
                                                                                                                                
     - Convert  a $300.0  UGF IncOTI allocated  to Southeast                                                                    
     Region Fisheries  Management to an IncT  spanning FY26-                                                                    
     27, to stabilize  groundfish assessment funding despite                                                                    
     steadily shrinking  Test Fishery receipt  revenue. Test                                                                    
     Fishery  receipts historically  supported the  salaries                                                                    
     and work  of research  staff. This change  will promote                                                                    
     program stability.                                                                                                         
     -  Convert $65.0  UGF allocated  to  the Anchorage  and                                                                    
     Fairbanks  Hatcheries' base  operating budget  to $65.0                                                                    
     Fed,  leveraging  in-kind  contributions  for  facility                                                                    
     construction  as  match   for  federal  Dingell-Johnson                                                                    
     receipts.  Approximately $58,000.0  remains in  in-kind                                                                    
     contribution.   This  conserves   Unrestricted  General                                                                    
     Funds for other priorities.                                                                                                
     -  Add  a  One-Time  Increment (IncOTI)  of  $90.0  UGF                                                                    
     allocated  to AYK  Region Fisheries  Management for  an                                                                    
     additional  sonar   unit  to  support   critical  sonar                                                                    
     assessment  projects.  Currently, an  area-wide  backup                                                                    
     sonar  is  being  used   for  routine  management.  The                                                                    
     purchase  of  an  additional  unit  ensures  redundancy                                                                    
     should  a unit  failure disrupt  critical research  and                                                                    
     monitoring.                                                                                                                
     -  Add an  Increment  of $100.0  UGF  allocated to  AYK                                                                    
     Region Fisheries  Management for extended  operation of                                                                    
     Kuskokwim River  Sonar monitoring into the  August coho                                                                    
     season.   Previously,  federal   grants  supported   an                                                                    
     additional   month   of   in-season   monitoring.   The                                                                    
     Department has  not received this  grant in  years, and                                                                    
     funding will restore the project.                                                                                          
     -  Reduce  the total  amount  of  Test Fishery  receipt                                                                    
     authority  allocated   to  Westward   Region  Fisheries                                                                    
     Management  by $500.0.  This eliminates  hollow receipt                                                                    
     authority.  Test fisheries  are  first  and foremost  a                                                                    
     scientific  instrument;  they  should not  serve  as  a                                                                    
     primary  stream of  revenue, especially  when generated                                                                    
     from closed or limited fisheries.                                                                                          
     - Deny the  Governor's request to add $112.3  UGF and a                                                                    
     permanent full-time  position to  Wildlife Conservation                                                                    
     because  SB  189 (the  legislation  it  is intended  to                                                                    
     support) remains under legal challenge.                                                                                    
     -  Deny   the  Governor's  request  to   add  14.4  UGF                                                                    
     allocated  to  Boards  of   Fisheries  and  Game,  also                                                                    
     because SB 189 remains under legal challenge.                                                                              
                                                                                                                                
     We also recommend the following  intent language to the                                                                    
     House Finance Committee:                                                                                                   
                                                                                                                                
     "It  is   the  intent  of  the   Legislature  that  the                                                                    
     Department  prepare a  detailed  report  of all  public                                                                    
     fees,  past  and  present, that  shows  their  date  of                                                                    
     inception and  historical increases. The  report should                                                                    
     include  the  total  amount   of  annual  revenues  and                                                                    
     expenditures for each fee and  fund source for the past                                                                    
     ten years.  The report should  be submitted to  the Co-                                                                    
     chairs  of  the  Finance  committees  as  well  as  the                                                                    
    Legislative Finance Division by December 20, 2025."                                                                         
                                                                                                                                
     Thoughtful adjustments  to these  fees, which  have not                                                                    
     changed  since 2016,  could provide  additional revenue                                                                    
     for the critical and  increasingly costly management of                                                                    
     Alaska's wildlife.                                                                                                         
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Fish  and Game  adopts the  Subcommittee                                                                    
     Report (Budget Action Report) provided by the                                                                              
     Legislative Finance Division.                                                                                              
                                                                                                                                
9:17:48 AM                                                                                                                    
                                                                                                                                
Representative Stapp asserted  that in items 1,  18, and 22,                                                                    
in  the BA  report, the  column labeled  "House Subcommittee                                                                    
Action"  should  say  "struck"  rather  than  "N/A"  if  the                                                                    
subcommittee   had   indeed    chosen   to   eliminate   the                                                                    
appropriation. He understood that  the position discussed in                                                                    
item 18  had been  deleted because  the associated  bill had                                                                    
not  passed, but  the action  was  listed as  N/A, which  he                                                                    
thought was confusing.                                                                                                          
                                                                                                                                
Mr. Miller responded  that he believed "N/A"  stood for "not                                                                    
applicable," meaning the item did not exist.                                                                                    
                                                                                                                                
Co-Chair  Josephson commented  that he  had encountered  the                                                                    
same  issue  during  his   own  subcommittee  closeouts.  He                                                                    
explained that  he had needed  to clarify that the  item had                                                                    
been struck.                                                                                                                    
                                                                                                                                
Representative  Hannan   asked  for  clarification   on  the                                                                    
recommended intent language. She asked  if the report of all                                                                    
fees referred specifically to the  cost of fishing licenses,                                                                    
game  tags,  and  commercial permit  fees.  She  noted  that                                                                    
"fees" was  not always the  term used and wanted  to confirm                                                                    
whether it also included licensure costs and tag costs.                                                                         
                                                                                                                                
Mr. Miller responded in the affirmative.                                                                                        
                                                                                                                                
Co-Chair  Josephson  thanked  the  subcommittee  chairs  and                                                                    
aides  for  their  hard  work.   He  acknowledged  that  the                                                                    
legislature   had  coordinated   with  the   departments  on                                                                    
scheduling and  topics, evaluated departmental  and division                                                                    
budgets, and  provided recommendations to the  committee. He                                                                    
also thanked  the House  Finance members  and aides  and the                                                                    
Legislative Finance Division (LFD).                                                                                             
                                                                                                                                
HB  53  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  55  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Josephson  reviewed the agenda for  the afternoon's                                                                    
meeting.                                                                                                                        
                                                                                                                                

Document Name Date/Time Subjects
HB 53 Op Budget SubC Closeout Reports 031025.pdf HFIN 3/10/2025 8:30:00 AM
HB 53
HB 55