Legislature(2025 - 2026)ADAMS 519
03/24/2025 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB53 || HB55 || HB56 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 56 | TELECONFERENCED | |
| += | HB 53 | TELECONFERENCED | |
| += | HB 55 | TELECONFERENCED | |
| + | 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."
HOUSE BILL NO. 56
"An Act making supplemental appropriations; making
appropriations to capitalize funds; and providing for
an effective date."
Co-Chair Josephson relayed that the committee would
consider a Committee Substitute (CS) for HB 56, also called
the "fast track" supplemental for FY 25. He relayed that
the Legislative Finance Division (LFD) was present to
address questions.
1:37:54 PM
AT EASE
1:38:30 PM
RECONVENED
Co-Chair Josephson invited his aide to come forward and
discuss the changes proposed in the CS.
1:38:55 PM
ALEXANDER SCHROEDER, STAFF, REPRESENTATIVE ANDY JOSEPHSON
STAFF, reviewed the changes in the proposed CS. He directed
attention to a group of documents including a transaction-
compare of operating only (numbers and language), s
transaction-compare of capital only, the agency summary of
operating only - all funds, the agency summary of operating
only - Unrestricted General Funds (UGF) only, and the
agency summary of operating and capital - UGF only (copies
on file). He informed that the supplemental would fill the
deficit of $81,096,500 and would appropriate an additional
$111,368,600 in UGF for necessary items. The total combined
UGF draw from the Constitutional Budget Reserve Fund (CBR)
would be $192,465,100.
Mr. Schroeder made note of big-ticket items including
$214,399,000 in federal funding to support annual increases
in Medicaid payments to service providers, $29 million for
disaster relief, $13,141,700 for the closeout of the FY 25
fire suppression season, $4 million for A Better Childhood
lawsuit, and $2,679,500 to offset interest earnings owed by
the state Division of Retirement and Benefits because of a
compromised computer system.
Mr. Schroeder listed other noteworthy governor's operating
items that were adopted unchanged: $195,000 in UGF for the
Dillingham jail operations (which was accidentally unfunded
after the previous year's conference committee), $2,034,800
in UGF for community residential centers contractual cost
for beds (operated by Tundra Center in Bethel and Seaside
Center in Nome), $2,519,900 in UGF for individuals in the
Department of Corrections (DOC) for complex and fragile
medical conditions that needed a higher level of care,
$650,000 in Designated General Funds (DGF) from the Higher
Education Investment Fund to pay for the Alaska Performance
Scholarship disbursement due to increased eligibility, $3
million in UGF to the Alaska Psychiatric Institute to cover
lost revenue due to reduced federal allocations and
Medicaid redeterminations, $14,200,000 in UGF to cover the
shortfall after federal funding for Medicaid payments, and
$3,200,000 in federal funds to continue the Department of
Agriculture's microgrant for food security program.
Mr. Schroeder continued to address noteworthy governor's
operating items including numerous University of Alaska
(UA) transactions to better reflect budget authority and
fund sources, and $2,756,200 in UGF for judgements and
settlements related to an Office of Children's Services
court case. Noteworthy capital items included $1,875,600 in
DGF for the Alaska Oil and Gas Conservation Commission
(AOGCC) for a suite of software tools; $25 million in
federal authority for AOGCC for phase 1 of plugging
orphaned wells or mitigating future orphaned wells; $40 mil
in federal authority for phase 2 of plugging orphaned wells
or mitigating future orphaned wells; $500,000 in UGF for
Blood Bank of Alaska for its blood testing laboratory;
$2,500,000 in federal funds for flood mitigation for
acquisition of high-hazard areas in the Mat-Su Borough; and
$6,500,000 in UGF for Alaska Marine Highway System (AMHS)
for the annual maintenance, overhaul, and certification of
vessels.
1:43:44 PM
Mr. Schroeder continued that the CS incorporated all of the
governor's items as requested, including the items in HB 56
(the fast-track supplemental), items in HB 85 (the regular
supplemental), and the governor's amendments to both bills
(with some exceptions). He listed an exception that
comprised a change to an AVTEC item from $880,600 in UGF to
$660,000 in STEP funds that were not being utilized in FY
26. There was a related increment of $182,300 in FY 26. The
CS did not adopt the $1,660,500 increment for the 7 VPSO
positions in the Northwest Arctic Borough because the
positions were created without legislative approval. In the
capital numbers section, the CS changed the fund source of
AMHS's additional FY 25 maintenance funds to UGF from the
AMHS Fund to prevent potential shortfall in the fund source
in the FY 26 budget.
Mr. Schroeder continued that the language section added the
Alaska Seafood Marketing Institute (ASMI) multi-year item
that was in the House CS 1 for HB 53, the operating bill.
He noted that the [sponsors] intended to offer an amendment
to remove the item from HB 53. There was an additional $3
million UGF on top of the governor's $10 million for fire
suppression due to the early start of the fire season.
There was a change in fund source for two reappropriation
items for roughly $10 million to UGF in the Department of
Health for the Supplemental Nutrition Assistance Program
(SNAP) investment projects and in the Department of Law for
SNAP litigation. The administration had attempted to
reappropriate a past encumbrance from FY 21 for a portion
of the items and legal advice had indicated that the
encumbrance was not valid. The item needed to be funded
with General Funds (GF) and the change was neutral to the
CBR. A reappropriation for $3 million for disaster relief
was changed to UGF. Lastly, the DOC supervisory standby pay
was broken into three appropriations, and the change
reflected the structure of the FY 26 appropriations for the
same purpose.
Mr. Schroeder addressed CBR language, with "headroom" that
allowed a draw projected to be $200 million in total. The
language funded a deficit that already existed based on the
previous year's appropriations, appropriations in the CS,
and no more than $7,534,900 in supplemental items to be
funded from the General Fund between the current time and
June 30 in other appropriation bills to account for any
supplemental items not received by the legislature. The
only other changes were technical. Aside from the $3
million for fire suppression, the CS did not include items
outside of the governor's request.
1:47:36 PM
Co-Chair Josephson reviewed that the committee had gone
through a recitation of the changes to HB 56, which was a
conjoining of fast-track supplemental items. He noted that
Mr. Schroeder had highlighted important items and noted
that the only change from the governor's request was $3
million for fire suppression.
Mr. Schroeder noted that there had been modifications to
some of the governor's requests, but the only addition had
been the $3 million for fire suppression.
Co-Chair Josephson relayed that the committee would
consider an amendment deadline and would inform members
shortly. He relayed that the plan was to move the bill
quickly.
1:49:45 PM
AT EASE
1:50:32 PM
RECONVENED
Representative Johnson asked for a reminder of what was
meant by the concept of "headroom" mentioned in the CS.
Mr. Schroeder explained that the last item was the CBR
language with headroom, which allowed a draw projected to
be $200 million in total. The language funded a deficit
that already existed based on the previous year's
appropriations, appropriations in the CS, and no more than
$7,534,900 in supplemental items to be funded from the
General Fund between the current time and June 30 in other
appropriation bills to account for any supplemental items
not received by the legislature.
Co-Chair Josephson asked if any expenditure would be heard
about through another bill.
Mr. Schroder answered affirmatively.
Representative Stapp did not see the need to create a CBR
draw to the amount specified for the majority of the
expenditures. He understood items like disaster relief but
asked why not roll the majority of the items into the FY 26
operating budget.
Co-Chair Josephson noted that there was a decision made to
do it in the way that was addressed. The CS sponsors did
not choose to reduce the governor's items, and the amount
was the governor's request.
Co-Chair Schrage MOVED HB 56, Work draft 34-GH1753\N, Marx,
3/22/25, as a working draft.
Representative Johnson OBJECTED for discussion.
1:53:45 PM
AT EASE
1:58:03 PM
RECONVENED
Co-Chair Josephson reminded the committee that there was a
motion and there was an objection.
Representative Johnson spoke to her objection. She thought
there were a good number of changes, and mentioned fund
source changes and $20 million in additions.
1:59:12 PM
Co-Chair Schrage asked for confirmation that the CS
included the governor's proposed items and amendments.
Co-Chair Josephson responded that the items were mostly the
governor's requests with exceptions noted by Mr. Schroeder,
including fund source changes. He listed further exceptions
such as the removal of 7 VPSO positions. He mentioned an
item for AVTEC, which was being funded at four-fifths from
a different source. There was $3 million appropriated for
disaster relief, which was a new item. In addition, there
was about $7.5 million because there was about a quarter of
the fiscal year remaining. He noted that all members would
know if the funding was spent in any way.
Representative Hannan wanted to affirm at least $10 million
in fund source changes was due to funds that would lapse to
the CBR and that the transaction resulted in a net zero.
Mr. Schroeder responded in the affirmative.
Representative Stapp communicated that there were a few
things that bothered him. He reiterated that the level of
draw from the CBR was unnecessary. He questioned the lack
of funding for the VPSO positions and saw no reason that
the same argument could not be made for the ASMI funding
not be changed to an FY 26 appropriation subject to the
legislative body. He thought the funding had been vetoed
the previous year. He did not see the value of calling the
bill a fast track supplemental when the vast majority of
the items did not need to be in a supplemental budget nor
subject to a CBR. He relayed that he would not support the
adoption of the CS.
Co-Chair Josephson thought the bill did not use the term
"fast track." The CS simply used the same bill number. He
thought the governor had a change of heart regarding ASMI.
He did not know if the governor regretted his earlier veto.
2:03:17 PM
Representative Hannan was in favor of adopting the work
draft. She was irritated with the $500,000 for the blood
bank that was vetoed the previous year. She reasoned that
the funds should go into the supplemental so that the money
could be used and no longer forestall the blood bank blood
testing. She hoped the new blood bank testing center would
soon be operational.
Representative Johnson MAINTAINED her objection.
2:04:51 PM
A roll call vote was taken on the motion.
IN FAVOR: Jimmie, Galvin, Hannan, Foster, Schrage,
Josephson
OPPOSED: Johnson, Allard, Stapp, Tomaszewski, Bynum
The MOTION PASSED (6/5).
There being NO further OBJECTION, it was so ordered. The CS
was adopted.
Co-Chair Josephson relayed that he would be establishing an
amendment deadline soon.
Representative Stapp asked for a clarification regarding
online voting by members. He referenced a legal memo and
requested the memo be read on the record.
2:06:29 PM
AT EASE
2:08:47 PM
RECONVENED
Co-Chair Josephson relayed that the committee just affirmed
the adoption of the CS for HB 56. He reminded that there
had been a question regarding the telephonic participation
of members in voting. He relayed that he could distribute a
memo or read pertinent parts into the record.
Representative Stapp asked that the memo be read on the
record.
Co-Chair Josephson read from a memo from the Legislative
Legal Division dated Jan 27, 2025 (copy on file). He read
from page 3, starting with item 2:
2. Telephonic participation in Committee Meetings
You asked whether a legislator may participate
telephonically in a committee meeting. The legislature
has, for many years, conducted committee meetings
utilizing teleconferencing. The Open Meetings Law (AS
44.62.310) specifically permits meetings of
governmental bodies to be conducted by teleconference.
The Open Meetings Law applied to the legislative
branch until it was amended in 1994. While there is
now no explicit statutory authority for legislative
committees to meet by teleconference, meeting by
teleconference is not expressly prohibited by statute
or Uniform Rule. Committees continue to meet regularly
via teleconference.
The legislature has long taken the position that while
a vote on any other matter coming before the committee
is in order, a member may not vote by teleconference
to report a bill from committee. This exception to the
general rule permitting participation by
teleconference is based upon the requirement in the
Uniform Rules that the committee report be signed by a
majority of the members of the committee. Obviously, a
person who is absent cannot sign the report and the
Rule contains no mechanism to permit the absent member
to delegate the signature power to another person.
Co-Chair Josephson understood that members could
participate in ways other than a motion to move a bill
telephonically.
Co-Chair Josephson relayed that an amendment deadline would
be communicated by the Committee Aide.
Co-Chair Josephson reviewed the agenda for the following
day, which would include public testimony on the newly
adopted CS (Version N) of HB 56.
Representative Johnson commented that it was possible to
pass a negative supplemental if so desired, and in doing so
reduce the budget.
Co-Chair Josephson suggested Representative Johnson
communicate her idea with the Executive Branch.
Representative Johnson thought the third floor [governor]
would love to help.
HB 53 was HEARD and HELD in committee for further
consideration.
HB 55 was HEARD and HELD in committee for further
consideration.
HB 56 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 56 CS WorkDraft v.N 032225.pdf |
HFIN 3/24/2025 1:30:00 PM |
HB 56 |
| HB 56 HFCSupFT - Agency Summary 032325.pdf |
HFIN 3/24/2025 1:30:00 PM |
HB 56 |
| HB 56 v. N HFCSupFT - Transaction Detail 032325.pdf |
HFIN 3/24/2025 1:30:00 PM |
HB 56 |
| HB 56 v.N GovSupT to HFTSup UGF 032325 .pdf |
HFIN 3/24/2025 1:30:00 PM |
HB 56 |
| HB 56 v.N HFCSupFT - Agency Summary - UGF Only -32325.pdf |
HFIN 3/24/2025 1:30:00 PM |
HB 56 |
| HB 56 v.N HFCSupFT - Cap Project Detail 032425.pdf |
HFIN 3/24/2025 1:30:00 PM |
HB 56 |