Legislature(2025 - 2026)SENATE FINANCE 532

05/01/2025 01:30 PM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 92 CORP. INCOME TAX; OIL & GAS ENTITIES TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+= HB 55 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+= HB 53 APPROP: OPERATING BUDGET; CAP; SUPP TELECONFERENCED
Heard & Held
**Streamed live on AKL.tv**
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."                                                                                                        
                                                                                                                                
1:36:44 PM                                                                                                                    
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the committee substitute                                                                        
for CSHB 53am(brf sup maj fld)(efd fld), Work Draft 34-                                                                         
GH1462\Y (Marx, 4/30/25).                                                                                                       
                                                                                                                                
Co-Chair Hoffman OBJECTED for discussion.                                                                                       
                                                                                                                                
1:37:17 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:40:51 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
1:41:08 PM                                                                                                                    
                                                                                                                                
PETE ECKLUND, STAFF, SENATOR LYMAN HOFFMAN, explained the                                                                       
changes in the CS for HB 53. He read from a prepared                                                                            
statement:                                                                                                                      
                                                                                                                                
     Operating Supplementals                                                                                                    
     Added new  operating supplemental numbers  sections 7-9                                                                    
     and  multiple language  sections that  included all  of                                                                    
     the   agreed   upon    (with   the   House)   operating                                                                    
     supplemental items  that were in  SB 59 version  N that                                                                    
     this  Committee   adopted  on   March  25th   with  the                                                                    
     following   modifications  to   incorporate  Governor's                                                                    
     amendments received on April 25th:                                                                                         
                                                                                                                                
     Section  15(b) increases  judgments and  settlements by                                                                    
     $346,473 (for a total of $3,102,700)                                                                                       
                                                                                                                                
     Section 17(g)(15) adopt Governor's amendment                                                                               
     The  amount necessary  for payment  of trustee  fees on                                                                    
     outstanding State  of Alaska general  obligation bonds,                                                                    
     added series 20248, for that purpose;                                                                                      
                                                                                                                                
     Section  18 (c)  Add  supplemental fund  capitalization                                                                    
     (from GovAmend):                                                                                                           
     The  sum of  $327,272 is  appropriated to  the election                                                                    
     fund,  as required  by the  federal  Help America  Vote                                                                    
     Act, from the following sources:                                                                                           
     (1) $54,545 from the general fund;                                                                                         
     (2) $272,727 from federal receipts.                                                                                        
     Section   19  Adopted   Governor's  Amendment   to  add                                                                    
     ratifications                                                                                                              
     Section   53(b)   Amended  contingency   language   for                                                                    
     Department  of  Health  SNAP penalty  appropriation  to                                                                    
     change  the fiscal  year reference  for the  penalty to                                                                    
     the federal  fiscal year. This  was a  change requested                                                                    
     by the  Department of Law  that was added on  the House                                                                    
     Floor to HB 56.                                                                                                            
                                                                                                                                
     Numbers Section Changes                                                                                                    
     In the  Department of Labor, University  of Alaska, and                                                                    
     Alaska  Marine  Highway  sections,  salary  adjustments                                                                    
     submitted by  the Governor last week  are incorporated.                                                                    
     These  cover  agreements   for  the  Alaska  Vocational                                                                    
     Technical    Center    Teachers'    Association,    the                                                                    
     International  Organization  of   Masters,  Mates,  and                                                                    
     Pilots, and  the United  Academic- Adjuncts  - American                                                                    
     Association   of    University   Professors,   American                                                                    
     Federation of Teachers.                                                                                                    
                                                                                                                                
     Page 5,  L 28-31 Department of  Commerce, Community and                                                                    
     Economic  Development-Alaska  Marijuana Control  Office                                                                    
     wordage fix  to allow AMCO to  carry-forward fees. This                                                                    
     will allow  AMCO to  adjust fees  downward. This  was a                                                                    
     Governor's amendment that  was inadvertently overlooked                                                                    
     in the subcommittee process.                                                                                               
                                                                                                                                
     Page 9,  L 23 -  Department of Corrections  (DOC) Added                                                                    
     back  a $7m  Pre-Trail reduction  to the  Department of                                                                    
     Corrections.  To assist  the Department  of Corrections                                                                    
     control  spending, the  subcommittee  reduced the  Pre-                                                                    
     trial Services program by $7M  with corresponding DOC &                                                                    
     Judiciary  intent language.  Unfortunately, the  Courts                                                                    
     do  not follow  intent language  and require  statutory                                                                    
     changes; therefore, the action is being reversed.                                                                          
                                                                                                                                
     Page 11,  L 15-23 -  Department of Education  and Early                                                                    
     Development  (DEED) Added  intent for  School Districts                                                                    
     to send  fund balance reports to  the legislature based                                                                    
     on FY25intentlanguage                                                                                                      
                                                                                                                                
     Page 11, l 25 and Page 25,  l 16 a net zero transfer of                                                                    
     the Alaska Teachers and Personnel  program of $60.0 UGF                                                                    
     from the DEED to the  Department of Labor and Workforce                                                                    
     Development                                                                                                                
                                                                                                                                
     P 17,  L 14  Department of Fish  and Game  - Commercial                                                                    
     Fisheries  Entry   Commission  added   $60.0  Statutory                                                                    
     Program Receipt  Authority so the Bristol  Bay Economic                                                                    
     Development Corporation, a  Community Development Quota                                                                    
     group, can pay  for a CFEC employee to  work in Bristol                                                                    
     Bay starting in February 2026                                                                                              
                                                                                                                                
     P 23, L 26 Department  of Health - Reduced Medicaid UGF                                                                    
     by $81.6 thousand                                                                                                          
                                                                                                                                
     P  23,  L  27-32  Department  of  Health  (DOH)  -  The                                                                    
     "standard" abortion  prohibition wordage used  over the                                                                    
     past many years was added                                                                                                  
                                                                                                                                
     P  24, L  11  Department  of Labor  -  Add GovAmend  $3                                                                    
     million  federal for  the  Alaska Workforce  Investment                                                                    
     Board (AWIB) to facilitate  a grant for Refugee Support                                                                    
     Services                                                                                                                   
                                                                                                                                
     P 331 L 30 Department  of Revenue - remove $400 million                                                                    
     from  various retirement  funds  to reflect  investment                                                                    
     management  fees paid  from  investments.  There is  an                                                                    
     associated change  to language  that will  be discussed                                                                    
     later on                                                                                                                   
                                                                                                                                
     Starting  on page  351  line 251  add  funding back  to                                                                    
     Alaska Permanent Fund Corporation as follows:                                                                              
     P  351 L  25  Add  $731.2 to  restore  all funding  for                                                                    
     administrative staff  P 351 L  25 Add $350.7  to reduce                                                                    
     the vacancy factor from 8.6  percent to 7 percent P 35,                                                                    
     L 28 Add $50.0 SDPR for staff travel                                                                                       
                                                                                                                                
    P 36, L 6 Add $47.3 for HR recruitment and training                                                                         
     P 361 L  11 Add $1.95 million for two  new IT projects,                                                                    
     firewall and data warehouse enhancements                                                                                   
                                                                                                                                
     Moved 'net  of fee' investment and  performance fees to                                                                    
     the language  section of the  budget for  the Permanent                                                                    
     Fund and  the Alaska  Retirement and  Management Board.                                                                    
     In essence,  the fee  estimates are  for 'informational                                                                    
     purposes only'  and are not appropriations.  This is an                                                                    
     attempt  to have  more transparency  in the  investment                                                                    
     fees paid by both the APFC and the ARM Board.                                                                              
                                                                                                                                
     Throughout the APFC section, there  is a fund change of                                                                    
     $2,547.6 from 1094  (MHT Admin1 which is in  HB 55) and                                                                    
     $2,439.6 of 1169 {PCE Endowment)  to 1105 (PF Gross) in                                                                    
     the  various  appropriations  for  the  Permanent  Fund                                                                    
     Corporation.  With this  change,  wordage allowing  for                                                                    
     transfers between  fund codes  was also  deleted. There                                                                    
     is associated language for this change as well                                                                             
                                                                                                                                
     Starting on  Page 41, line  10, University of  Alaska -                                                                    
     there   are  four   technical   corrections  to   align                                                                    
     subcommittee  decrements  to the  correct  allocations.                                                                    
     These net  zero changes  move funding  between campuses                                                                    
     and   their  associated   operations  and   maintenance                                                                    
     allocations.                                                                                                               
                                                                                                                                
     Language Changes:                                                                                                          
                                                                                                                                
     Sec 24 (d)  Page 76, L 31- The amount  necessary to pay                                                                    
     a  dividend of  $11000 per  recipient, estimated  to be                                                                    
     $685,300,000.                                                                                                              
                                                                                                                                
     Sec 24  (g) Page 77,  L 10-11 To Alaska  Permanent Fund                                                                    
     Corporation section, add new subsection:                                                                                   
     The proportional  share of investment  management costs                                                                    
     paid  by investments  of funds  managed  by the  Alaska                                                                    
     Permanent   Fund  Corporation   is   estimated  to   be                                                                    
     $671,018,000.                                                                                                              
                                                                                                                                
     Sec 24 (h) Page 77, L 12-17 Add new subsection:                                                                            
     The  amount appropriated  from  gross  receipts of  the                                                                    
     Alaska permanent  fund in sec.  1 of this  Act includes                                                                    
     an  estimated amount  of $2,547,600  attributed to  the                                                                    
     mental  health   trust  fund  (AS  37.14.031)   and  an                                                                    
     estimated amount of $2,439,600  attributed to the power                                                                    
     cost equalization endowment  fund (AS 42.45.070(a)) for                                                                    
     the proportional  share of investment  management costs                                                                    
     of the mental health trust  fund (AS 37.14.031) and the                                                                    
     power    cost   equalization    endowment   fund    (AS                                                                    
     42.45.070(a}).                                                                                                             
                                                                                                                                
     New  subsection 36,  Department of  Revenue Page  85, L                                                                    
     16-18:                                                                                                                     
     The proportional  share of investment  management costs                                                                    
     paid  by investments  of funds  managed  by the  Alaska                                                                    
     Retirement   Management  Board   is  estimated   to  be                                                                    
     $167,000,000.                                                                                                              
                                                                                                                                
     Section  37  (c)  Page  85,   L  27-29  Add  DOT  lapse                                                                    
     extension for Highways and Aviation                                                                                        
     Section  45  Page  98,  L  21-25  (salary  and  benefit                                                                    
     adjustments) add the following bargaining units:                                                                           
     a.   To section (a):                                                                                                       
          (7)  Alaska Vocational  Technical Center Teachers'                                                                    
          Association,   National   Education   Association,                                                                    
          representing   the   employees   of   the   Alaska                                                                    
          Vocational Technical Center;                                                                                          
          (8)  International   Organization    of   Masters,                                                                    
          Mates,  and  Pilots,   representing  the  masters,                                                                    
          mates, and pilots unit.                                                                                               
          b.   To section (b) Page 99, L 5-6:                                                                                   
          {S)    United    Academic   -Adjuncts    -American                                                                    
          Association  of  University  Professors,  American                                                                    
          Federation of Teachers.                                                                                               
                                                                                                                                
1:54:03 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
Co-Chair Stedman MOVED to ADOPT the committee substitute                                                                        
for CSHB 55(FIN), Work Draft 34-GH1459\O (Marx, 4/30/25).                                                                       
                                                                                                                                
Co-Chair Hoffman OBJECTED for discussion.                                                                                       
                                                                                                                                
Mr. Ecklund explained the CS changes for HB 53, and read                                                                        
from a prepared statement:                                                                                                      
                                                                                                                                
     A Net  Zero transaction (ATRIN and  ATROUT) between the                                                                    
     Department of  Health and the  Judiciary- In  the past,                                                                    
     Alcohol and  Drug Abuse Treatment and  Prevention funds                                                                    
     were  used to  fund  the  Therapeutic Courts;  however,                                                                    
     state law  designates these funds to  the Department of                                                                    
     Health.  The  change swaps  the  funding  of $518.0  of                                                                    
     Alcohol funds from  the Judiciary to DOH  and moves the                                                                    
     same  amount ($518.0)  of  general funds/mental  health                                                                    
     dollars to the Judiciary.                                                                                                  
                                                                                                                                
     Page 3,  Line 30  - DOH -Adds  $750.0 of  Mental Health                                                                    
     Trust  Authority  Authorized  Receipts (MHTAAR)  for  a                                                                    
     Crisis  Call  Center,  -  These   trust  funds  to  the                                                                    
     Department  of Health,  Division  of Behavioral  Health                                                                    
     will increase  the accessibility of funding  to support                                                                    
     Alaska's statewide crisis call center                                                                                      
                                                                                                                                
     Page 4,  L 33  -Adds $200.0  MHTAAR for  Direct Support                                                                    
     Professional  Training/Professional Development.  These                                                                    
     Trust funds support an  incentivized program for direct                                                                    
     care  staff and  the agency  they work  for to  support                                                                    
     staff   in  completing   the  education   and  coaching                                                                    
     deliverables required through their agency.                                                                                
     Page 6,  L 4-6  DNR: add  intent to  the MH  Trust land                                                                    
     office to  read: "It is  the intent of  the legislature                                                                    
     that   the   FY27   budget  promote   transparency   by                                                                    
     reflecting  the  existing  maintenance  and  operations                                                                    
     costs  of the  Trust  and its  lessees  in the  Cordova                                                                    
     building and the Trust Authority building."                                                                                
                                                                                                                                
     In the prior version, there  was funding for the Alaska                                                                    
     Permanent Fund  Corporation in this bill  as well. That                                                                    
     fund source has been changed back  to PF Gross in HB 53                                                                    
     and has  been removed  from this  bill. Across  the two                                                                    
     bills, this nets to zero.                                                                                                  
                                                                                                                                
1:57:33 PM                                                                                                                    
                                                                                                                                
Co-Chair Hoffman WITHDREW his OBJECTION. There being NO                                                                         
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSHB 53am(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.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 92 Support Campen.pdf SFIN 5/1/2025 1:30:00 PM
SB 92
SB 92 Support Misel.pdf SFIN 5/1/2025 1:30:00 PM
SB 92
SB 92 Support Fitzgerald.pdf SFIN 5/1/2025 1:30:00 PM
SB 92
SB 92 RDC SFIN Testimony SB 92 4-9-25.pdf SFIN 5/1/2025 1:30:00 PM
SB 92
SB 92 work draft version Q.pdf SFIN 5/1/2025 1:30:00 PM
SB 92
SB 92 Explanation of Changes ver S to ver Q 2025.05.01.pdf SFIN 5/1/2025 1:30:00 PM
SB 92
HB 53 Agency Summary - Numbers and Language - UGF Only.pdf SFIN 5/1/2025 1:30:00 PM
HB 53
HB 53 SCS2Sup - Agency Summary - Numbers and Language - UGF Only.pdf SFIN 5/1/2025 1:30:00 PM
HB 53
HB 53 Agency Summary - Numbers and Language - All Funds.pdf SFIN 5/1/2025 1:30:00 PM
HB 53
HB 53 SCS2Sup - Agency Summary - Numbers and Language - All Funds.pdf SFIN 5/1/2025 1:30:00 PM
HB 53
HB 53 work draft version Y.pdf SFIN 5/1/2025 1:30:00 PM
HB 53