Legislature(2025 - 2026)SENATE FINANCE 532
04/24/2025 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SJR14 | |
| HB53 || HB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SJR 14 | TELECONFERENCED | |
| *+ | HB 53 | TELECONFERENCED | |
| *+ | HB 55 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 53(FIN) am(brf sup maj fld)(efd fld)
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; and making supplemental
appropriations."
CS FOR HOUSE BILL NO. 55(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
9:43:15 AM
Co-Chair Stedman MOVED to ADOPT the committee substitute
for CSHB 53(FIN)am(brf sup maj fld)(efd fld), Work Draft
34-GH1462\R (Marx, 4/22/25).
Co-Chair Hoffman OBJECTED for discussion.
9:43:47 AM
PETE ECKLUND, STAFF, SENATOR LYMAN HOFFMAN, explained the
CS. He referred to the Explanation of Changes (copy on
file):
Explanation of Changes to HB 53, the Operating Budget
Changes from CSO to SCSI
Accepted all subcommittee numbers section
recommendations with the following exceptions:
1. Added $250.0 UGF to DEED for career and technical
education (C-TEPS)
2. Deleted cross-appropriation authority ($5
M/Department) to move money between the Maintenance
and Operations and other appropriations
3. Made two technical changes to wordage requested
by Legislative Legal:
a. statutory cite corrections to AS 14.17.050(a).
Change to AS 14.17.505(a).
b. AS 18.60.840. Change to AS 18.60.030(16).
Moved the Alaska Marine Highway System operations
from the language section to the numbers section.
New numbers Sections 4-6 were created for AMHS
calendar year 2026 operations
Language Section Changes
Sec 7 Inserts a new recipient of lapsing funds in
FY25
i. After Section 34(d) in HB 268, insert a new
section:
After the appropriations in section 34(d), the
unexpended and unobligated balance of any general
fund appropriation that is determined to be
available for lapse at the end of FY25 is
appropriated to the School Major Maintenance Fund
(AS 14.11.007), not to exceed $30 million ii. The
existing items in the lapse waterfall remain next
in line
Sec 8 Added supplemental Alaska Department of Fish
and Game language to extend one year, to June 30,
2027, the ability to receive money for prior fisheries
disasters
Sec 9 Re-statement of the F Y 25 'waterfall' order
of lapsing fund appropriations
Sec 13 (b) Similar to the Alaska Housing Finance
Corporation, this language appropriates all of the
receipts that the Alaska Industrial and Export
Authority (AIDEA) takes in back to AIDEA to be used at
the discretion of the Board of Directors. This
language does not change AIDEA's existing authority
Sec 14 (c) Appropriates the 5 percent of Market
Value (POMV) payout to the general fund, following the
POMV statute ($3,798,888,398)
Sec 14 (d) Appropriates an amount equal to 25
percent of the POMV payout from the general fund to
the dividend fund ($949,722,100) approximately a
$1,414 PFD
Sec 14 (f) Adds intent language to section 55(f)
of Ch. 1, SSSLA 21 (HB69) (inflation proofing
transfer) to read: "It is the intent of the
legislature that this appropriation constitutes
forward funding of inflation proofing payments under
AS 37.13.145(c)." This is referring to the $4 billion
check over there on the wall 'Scrivner's error' The
Permanent Fund Corporation testified earlier this year
that this change would put us $2 billion ahead of
inflation proofing the principal of the fund over time
Sec 16 Added language regarding Bonuses for Certain
Employees (Letters of Agreement). Similar to language
in FY25's budget.
Updated Sec 16 (b) (1) to reference the Department of
Law entering a letter of agreement (instead of DOA)
(B) (3) new language that states, no later than 30
days after a letter of agreement terminates, the
Office of Management and Budget (OMB) shall notify the
legislative finance division.
Sec 17 (d) new intent language that directs OMB to
build in the proper rate for employer contributions to
the AlaskaCare employee health plan for FY27, and no
longer rely on lapsing funds
Sec 17 (g) Match FY25 language that covers
Department of Administration actuarial costs for
legislation in either House of Senate Finance that
require actuarial analysis
Sec 18 (g) Technical fix that 40 percent of boat
receipts goes to the Alaska Marine Safety Education
Association for marine safety education, estimated to
be $181,879 but not exceed $200,000. Delete Former
section 13 (i) is deleted, which attempted to
appropriate $225,000 out of the emerging energy
technology fund, a fund that has been repealed.
According to Legislative Legal, we cannot have
language referring to a fund that no longer exists.
The other body addresses this item in the FY26 numbers
section and that approach will be available in the
conference committee
Sec 19 (d) Accepted a Governor amendment to
increase a general fund appropriation from $40
thousand to $80 thousand to the Department of
Education and Early Development (DEED), Alaska State
Council on the Arts, for administration of the
celebrating the arts license plate program
Sec 19 (e) Former (e) deleted $120 thousand for
child and adult care food program
New (e) Base Student Allocation outside the formula
increase of 680 BSA ($172,176,800) contingent on the
failure of passage of a bill modifying the statutory
BSA
Sec 19 (f) Add a 10 percent outside the formula
pupil transportation increase of $6,781,200,
contingent on the failure of passage of a bill
modifying the pupil transportation formula
Sec 20 Accepted a Governor amendment to move a
Department of Family and Community Services Statutory
Designated Program Receipt authority appropriation
(not to exceed $4 million) from the numbers section to
the language section for the operation of the
Pioneer's Homes pharmacy program
Sec 21 Adds a Governor's amendment for new
fisheries disasters to accept receipts through FY28
Sec 25 (d) 60 percent of boat receipts ($272,819
not to exceed $300 thousand) are appropriated to the
Department of Natural Resources, division of parks and
outdoor recreation, for the boating safety program
Sec 27 (b) Amend last year's HB 268, page 77, to
insert after line 12 (the CY25 AMHS appropriation):
"It is the intent of the legislature that the
Department of Transportation prioritize spending
federal funds and unrestricted general funds first,
preserving the balance of the Alaska Marine Highway
Fund to the extent possible." Change from $3.5 million
to not to exceed $2 million the amount of FY26 lapse
available to the Office of Management and Budget to
support the cost of central services to 'rate smooth'
cost allocation amongst approved central service plans
Sec 29 (g)(2) Changes the payment amount of
unrestricted general fund debt service on GO bond
series 2010B from $2,402,900 to $144,127 because
federal funds pay a portion of the debt service. This
change matches the UGF amount in the Department of
Revenue's debt book
Sec 29 changes the payment amount of unrestricted
general fund debt service on GO bond series 2013A from
$460,839 to $26,268 for the same reason as the
previous change
Sec 29 (L) Reduce the school bond debt reimbursement
amount by 25 percent from a total of to $34,882,150
Sec 29 (L)(l) Accepts Governor's amendment to tower
the amount from the School Fund going to school bond
debt reimbursement from $12.3 million to $11 million
Sec 29 (L)(2) Reduces the general funds going to
school bond debt reimbursement by $10,327,383, leaving
$23,882,150 general funds for reimbursement
Sec 30 (e) Similar to FY25, adds language
excluding the Alaska Gasline Development Corporation
from using the Revised Program Legislative (or RPI)
process
Sec 31 (d) Increases the appropriation to the
Disaster Relief fund from $13 million to $23,344,800
to match the recent 5-year average spend on disasters
Sec 31 (h) Changes the amount going into the
Public Education Fund from difference) because Pre-K
funds granted out in FY25 fell short of the amount
budgeted, and the statute limits the growth in that
amount in FY26 to $3 million over the actual amount
spent the prior year
Sec 31 (h)(2)lowers the general fund amount going to
the public education fund by $5,285,520 to account for
the above change. This 'trues up' the balance of the
fund
Sec 31 (q) Accepted a Governor's amendment
changing the amount from $841,500 to $1,682,500 of
restorative justice funds to the crime victim
compensation fund
Sec 31 (t) Deleted the sum of $30 million going to
the community assistance fund, $2,018,083 from the
general fund and $27,981,917 from the Power Cost
Equalization fund. Insert the sum of $13,333,300 from
the PCE fund to the community assistance fund
Sec 31 (v) increase the sum going to the fire
suppression fund to bring the balance up to the recent
5-year average of fire suppression spending
total, $3 million from SDPR)
New unrestricted general fund appropriation of
$74,338,400 to the fire suppression fund, an increase
of $48,582,650
Sec 32 (m) Changes the fund source from the general
fund to the PCE fund ($6,315,507) going to the
renewable energy fund
Sec 32 (n) Add language similar to FY25 that
appropriates repayment of Washington, Wyoming, Alaska,
Montana and Idaho (WWAMI) loans, estimated to be
$575,000, back to the Higher Education Investment fund
Sec 34 (a)(5)(6) Adds the Alaska Correctional
Officers Association and the Teachers' Education
Association of Mt. Edgecumbe to the list of approved
monetary terms for collective bargaining agreements
Sec 34 (b)(4)Adds the United Academics American
Association of University Professors, American
Federation of Teachers to the list of approved
monetary terms for collective bargaining agreements
Sec 37 Adds a new section that appropriates up to
$700 million of revenue above $6.3 billion, to the
Statutory Budget Reserve. ($171.4 M above Spring
Forecast)
Sec 38 Repeal Section 69(b) chil SLA2022 P180 128
(HB281) (statehood defense for Tongass National
Forest), Section 64(a), Chl SLA2023 (statehood defense
multi-year appropriation), Section 36(j) Ch7 SLA2024
(Alaska Resource Education multi-year appropriation)
Sec 39 Repeals the FY25 Permanent Fund inflation
proofing transfer (Section 32(f) from HB 268)
Repeal Sec 34(e), ch. 7, SLA 2024, and Sec 44(b), ch.
7, SLA are related to the FY25 lapsing provision we
modified in Sec 7 of this bill
Deleted Constitutional Budget Reserve budget balancing
sections Sections 40 and 41 are standard and
conforming lapse and retroactivity provisions
Sec 42 Added contingency language similar to FY25
related to letters of agreement. LOA's are
legislatively approved if they are:
• signed by both the employee and the state
• OMB complies with the requirement lists in Sec
16(b)(1) of this act to notify the legislative
finance division
UGF All Funds
Agency Operations $4.6 B $12.3 B
Statewide Items $453 M $700 M
PFD/Permanent Fund $950 M $1.02 B
Total $6.039 B $13.99 B
10:02:09 AM
Co-Chair Stedman asked for the reason for the $51 million
increase to Fund Capitalization.
Mr. Ecklund replied that to reach the five-year average of
disasters and fire suppression there needed to be an
increase. He added that there was also a reduction to
public education, so the numbers needed to increase.
Co-Chair Stedman recalled that there were several disasters
in the state that needed mitigation.
Co-Chair Hoffman agreed with Co-Chair Stedman's comments.
10:04:54 AM
Senator Kaufman wondered the changes claimed credit for the
time value of money.
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
explained that the Permanent Fund calculations did not
include inflation proofing on the inflation proofing.
Senator Kaufman remarked that the time value of money could
be considered in the committee's calculations.
10:06:18 AM
AT EASE
10:08:42 AM
RECONVENED
Co-Chair Hoffman remarked that the governor had asked for
additional funding to the Department of Public Safety (DPS)
for troopers in the MatSu, and Village Public Safety
Officers (VPSO) in the Northwest Arctic, and they were both
denied by the committee. He asked the amount of increment.
Mr. Ecklund recalled that it was approximately $60 million.
Co-Chair Stedman added that there was a governor request
for Department of Natural Resources (DNR) for an employee
to help with landslides. That item had also been denied by
the legislature.
Co-Chair Hoffman REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
Co-Chair Hoffman stated that the amendment deadline would
be April 25, by 4pm. He stressed the importance of using
the Legislative Finance Division online amendment system
for submission.
10:12:14 AM
Co-Chair Stedman MOVED to ADOPT the committee substitute
for CSHB 55(FIN), Work Draft 34-GH1459\T (Marx, 4/18/25).
Co-Chair Hoffman OBJECTED for discussion.
10:12:41 AM
Mr. Ecklund pointed to the Explanation of Changes (copy on
file).
Co-Chair Hoffman REMOVED his OBJECTION. There being NO
OBJECTION, it was so ordered.
10:14:28 AM
AT EASE
10:14:40 AM
RECONVENED
Co-Chair Hoffman stated that the amendment deadline would
be April 25, by 4pm. He stressed the importance of using
the Legislative Finance Division online amendment system
for submission.
CSHB 53(FIN)am(brf sup maj fld)(efd fld) was HEARD and HELD
in committee for further consideration.
CSHB 55(FIN) was HEARD and HELD in committee for further
consideration.