Legislature(2021 - 2022)SENATE FINANCE 532
06/11/2021 04:00 PM House CONFERENCE COMMITTEE ON HB69 AND HB71
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| Audio | Topic |
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| Start | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 69 | TELECONFERENCED | |
| += | HB 71 | TELECONFERENCED | |
CS FOR HOUSE BILL NO. 69(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 capital appropriations,
supplemental appropriations, and reappropriations."
SCS CSHB 69(FIN) AM S
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making capital appropriations,
supplemental appropriations, and reappropriations; and
providing for an effective date."
and
CS FOR HOUSE BILL NO. 71(FIN) am
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making
supplemental appropriations; and providing for an
effective date."
SENATE CS FOR CS FOR HOUSE BILL NO. 71(FIN)
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making capital
appropriations and supplemental appropriations; and
providing for an effective date."
4:41:02 PM
Chair Foster invited Alexei Painter, Director of the
Legislative Finance Division to join the committee at the
table. He noted that the committee would be addressing open
items in HB 69 and HB 71 based on the motion sheets
distributed to members and dated June 11th (copy on file)
on the departments of:
FY 22 OPERATING BUDGET:
DEPARTMENT OF HEALTH AND SOCIAL SERVICES
DEBT SERVICE
FUND CAPITALIZATION
FY 21 SUPPLEMENTAL OPERATING BUDGET:
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
DEPARTMENT OF LAW
^FY 22 OPERATING BUDGET: DEPARTMENT OF HEALTH AND SOCIAL
SERVICES
4:41:20 PM
Vice-Chair Stedman MOVED to ADOPT the following items
within the Department of Health and Social Services FY 22
operating budget:
Item 1 Senate
Item 2 Senate
Item 3 House
Item 4 House
Item 5 House Both Items
Item 6 House Modify, to one time increment.
Item 7 House Both Items
Item 8 House
Item 9 House
Item 10 Senate
Item 11 House
Item 12 House Both Items
Item 13 House Both Items
Item 14 Senate Plus $206.4 thousand
Item 15 House Both Items
Item 16 House Modify, Fund Source Swap 1246
Recidivism Fund to 1004 UGF
Item 17 House Modify, to read "It is the intent
of the legislature that $3.4
million of general funds, in
addition to the level of funding
allocated in FY 21 be used to
support Alaska Native Tribes and
Tribal Organizations participating
in the Alaska Tribal Child Welfare
Compact and the Office of
Children's Services to provide the
services outlined in the Compact."
Item 18 House
Item 19 House
Item 20 House
Item 21 House All Items
Item 22 Senate Modify, plus $264.1 thousand fed.
Plus $22.4 thousand UGF
Item 23 Senate Modify, plus $57.7 thousand
GF/Match
Item 24 Senate Modify, plus 3 positions plus
$155.3 thousand UGF, plus $12.8
thousand SDPR
Item 25 Senate Modify, plus 1 position. Plus
$67.2 thousand
Item 26 Senate
Item 27 House
Item 28 House
Item 29 Senate
Item 30 Senate Modify, Plus 51 positions, plus
$894.3 thousand Fed, plus $858.2
thousand GF/Match
Item 31 Senate Both Items
Item 32 Senate Both Items
Item 33 House
Item 34 Senate Both Items
Item 35 Open
Item 36 Open
Item 37 House
Item 38 Senate Both Items
Item 39 Senate Both Items
Item 40 Senate Modify, plus $17.5 million
GF/Match
Item 41 Senate
Item 42 Open
Item 43 Open
Item 44 Open
Item 45 Open
Item 46 Open
Item 47 Open
4:45:54 PM
Representative LeBon OBJECTED for discussion. He began with
item 6, a one-time increment that increased funding for
behavioral health treatment and recovery grants. He asked
which programs would receive the funding.
Chair Foster stated that the governor's original budget had
not included some of the funds. He explained that the
increase would return to a flat funding level. He asked Mr.
Painter to address the questions.
4:47:08 PM
AT EASE
4:48:17 PM
RECONVENED
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION
responded that the item 6 was an increase over the
governor's budget. He explained that the item partially
restored a $12 million decrease made in 2020 to the FY 21
budget.
Representative LeBon was curious about the programs
themselves. He asked if the increment provided general
funding for a variety program recipients.
Mr. Painter answered that the behavioral health treatment
recovery grants went to a wide variety of receipts. He
explained that the increase did not specify a subclass of
the recipients.
4:49:28 PM
Representative LeBon asked if the funding for item 7 was
from a designated fund source.
Mr. Painter answered the designated fund source was the
alcohol and other drug abuse treatment and prevention fund
funded by alcohol taxes. He explained that the $500,000 was
available because of a reduction in the House budget as a
result of the elimination of a grant in the mental health
budget. The reduction freed up $500,000 in alcohol funding
being used to offset UGF.
4:50:25 PM
Representative LeBon asked for more detail on item 10
related to hospital funding supporting hospital-based
mental health care. He wondered where and which programs
the funding would go to.
4:50:54 PM
AT EASE
4:53:22 PM
RECONVENED
Chair Foster asked LFD analyst Kelly Cunningham to join
members at the table. He asked her to speak to item 10
related to disproportionate share hospital funding.
KELLY CUNNINGHAM, ANALYST, LEGISLATIVE FINANCE DIVISION,
replied that a $14 million three-year multiyear increment
that addressed disproportionate share hospital funding had
expired in 2020. She explained that disproportionate share
hospital funding was intended to cover hospitals for
uncompensated mental health care. The majority of the
funding for Alaska went to the Alaska Psychiatric
Institute. Several other hospitals could use the funding as
well. She elaborated that the increment added $7 million
divided in two $3.5 million increments to pick up where the
previous multiyear increment had left off.
Representative LeBon appreciated the additional background
information. He moved to items 18 through 20 and asked for
additional information on the depth of the problem and the
need for actions to retain the employees in the children's
services area.
4:55:36 PM
Ms. Cunningham answered that the overarching issue was a
retention problem in the Office of Children's Services
(OCS) frontline social workers. The division had struggled
to keep caseworkers on for more than two years; therefore,
the department and legislature had worked to develop staff
retention strategies. The funding was intended to provide
bonuses and a few other strategies to retain employees.
Representative LeBon agreed it was a problem that needed
work to correct the situation. He moved to items 22 and 23.
He asked if the funding source had been moved to federal.
Chair Foster clarified that the items pertained to Circles
of Support.
Ms. Cunningham believed the department was reducing some of
the funding for the Circles of Support items. She relayed
there were three allocations impacted by the grant. She
explained that some of the elements of the program were
working and some had not been working as well. She detailed
that DHSS was reducing two of the allocations and
eliminating funding in one; however, the department said it
could provide the services through another grant and
providers would not be impacted.
Representative LeBon asked if the grant funding source was
federal or state.
Ms. Cunningham replied that the funding was a mix of
federal and state.
Representative LeBon looked at item 29 with intent language
originating in the House. He asked why the intent language
had been removed.
4:58:25 PM
AT EASE
5:03:14 PM
RECONVENED
Chair Foster stated his understanding that the intent
language stated it was the legislature's intent to revisit
long-term vacant positions and explore changes in response
to technological efficiencies. He explained that the intent
language was out of place because it spoke to things that
were beyond the FY 22 budget. The removal of the language
was an effort to keep the budget tight.
Representative LeBon thought it seemed like a good goal to
do a deeper dive into vacant positions. He remarked that
the legislature could remember the goal for the next budget
cycle and improve on the language.
Representative LeBon WITHDREW his OBJECTION to items in the
DHSS budget.
5:04:37 PM
Senator Olson looked at item 16 related to insufficient
funding to cover $3.4 million.
Chair Foster stated that item 16 pertained to the Alaska
Tribal Child Welfare.
Senator Olson pointed to language located on the right of
the motion sheet specifying there was insufficient funding
in the Recidivism Reduction Fund to fully cover both
increments. He asked how the budget would cover the
funding.
Chair Foster stated it was his understanding the fund
source would be swapped to UGF. He asked Mr. Painter to
provide detail.
Mr. Painter confirmed that the conference committee item
would change the fund source to UGF to resolve the fund
source issue with the previous fund source.
Senator Olson asked for the reason.
Mr. Painter replied that the House and Senate both
appropriated the same funds for different purposes. In
resolving the differences between the two budgets, the
conference committee had to choose which one would use the
recidivism reduction funds. He elaborated that item 16 had
been selected to use UGF funding.
Senator Olson WITHDREW his OBJECTION to item 16. He asked
about items 37 [34] and 38 related to the transfer of the
chief medical officer from the Division of Public Health to
the Office of the Commissioner. He asked why the position
was being transferred. He remarked it looked like a cost
increase.
Chair Foster replied that the item took a Senate position.
He asked Mr. Painter to provide background information on
the item.
Mr. Painter clarified that the two linked items were 34 and
38. He explained that the funding sources for the two items
equaled each other. He detailed that the change was merely
the transfer of a position from one area of the department
to another.
Senator Olson asked for verification that the medical
doctor position was being transferred.
Mr. Painter confirmed the transfer of the chief medical
officer position.
5:06:59 PM
Senator Olson assumed the medical officer was in favor of
the transfer.
Mr. Painter replied that he could not speak to Dr. Zink's
preferences.
Senator Olson WITHDREW his OBJECTION.
There being NO further OBJECTION, items 1 through 47 within
the Department of Health and Social Services FY 22
operating budget were ADOPTED.
^FY 22 OPERATING BUDGET: DEBT SERVICE
5:07:24 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Debt Service budget:
Item 1 Senate
Representative LeBon OBJECTED for discussion. He stated
that the item appeared to be authority to pay debt service
in anticipation that revenue anticipation notes may be
issued in the coming year. He asked if he was reading the
item correctly.
Chair Foster confirmed that the item was with regard to
revenue anticipation notes. He explained that the
Department of Revenue wanted another tool in its toolbox.
Representative LeBon asked why the legislature would not
afford the department with the additional tool in its
toolbox.
Chair Foster shared that he personally believed that if the
department identified a clear and compelling need in the
future, it could be taken up by the legislature in the next
session.
Vice-Chair Stedman added that the issue was in the Senate
Finance Committee and would be looked at during the next
session [in 2022].
5:09:29 PM
Representative LeBon asked for verification that the
legislature was not closing the door to the potential
option of issuing revenue anticipation notes but was
awaiting the process to play out the following session in
regard to the authority to issue the notes. He stated he
would withdraw the objection if his understanding was
accurate. He WITHDREW his OBJECTION.
There being NO further OBJECTION, item 1 within the Debt
Service FY 22 operating budget was ADOPTED.
^FY 22 OPERATING BUDGET: FUND CAPITALIZATION
5:10:05 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Fund Capitalization budget:
Item 1 Open
Item 9 Senate
Item 10 Senate
Representative LeBon OBJECTED for discussion. He asked for
further clarification on items 9 and 10. He stated that the
House proposal was to grant federal receipt authority for
the Alaska Gasline Development Corporation (AGDC). He
remarked that by selecting the Senate option, the
legislature was not allowing the federal receipt authority
for AGDC. He asked for the accuracy of his statement.
Chair Foster agreed.
Representative LeBon asked why the legislature would be
opposed to granting federal receipt authority to AGDC.
Vice-Chair Stedman answered allowing the federal receipt
authority was not right for the moment. He remarked that
the state had been waiting 40 years to build a gasline and
he did not believe there would be a problem with that. He
explained there were numerous interconnections in the tax
code and other possible implications that the state needed
to be fully aware of. He noted some things may need to be
modified before the state brought gas to market. He
believed [including] the issue was premature. He stated the
issue would be worked on in the future. He believed the
legislature would take immediate action in a special
session dealing with the gasline if a legitimate proposal
came forward.
5:12:23 PM
Chair Foster added that based on discussions he had with
individuals, if there was money coming toward the project,
the legislature may want to know what kind of strings were
attached and what the conditions were. He agreed that the
legislature could move quickly if the conditions were
favorable to the state. He communicated the desire to have
a look at the deal prior to accepting any money.
Representative LeBon observed that there were two ways of
looking at the issue. One way involved being fearful of
strings that may be attached with federal receipt authority
and the other way focused on sending a message that Alaska
was looking to move forward on developing its resources. He
looked at the issue the latter way and believed the budget
item made a statement that Alaska was looking to develop
its resources and the AK LNG project was one of the ways to
do so. He encouraged sending that type of signal, whether
it was in the current budget or in the near future through
actions in the House or Senate. He stressed the importance
of sending the message that Alaska was open for business.
He stated it had been his hope in seeing the intent
language remain in the budget.
5:13:55 PM
Representative LeBon WITHDREW his OBJECTION.
There being NO OBJECTION, items 1, 9, and 10 within the
Fund Capitalization FY 22 operating budget were ADOPTED.
Chair Foster moved to items in the FY 21 supplemental
budget.
^FY 21 SUPPLEMENTAL BUDGET: DEPARTMENT OF ENVIRONMENTAL
CONSERVATION
5:14:17 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Environmental Conservation FY 21 supplemental
budget:
Item 2 House Modify, to Read:
"It is the intent of the legislature that the
Department of Environmental Conservation submit
recommendations on how to reduce the cost of shellfish
testing for both the industry and the State, to the
Legislative Finance Division and Finance Committee Co-
Chairs by December 1, 2021."
There being NO OBJECTION, item 2 within the Department of
Environmental Conservation FY 21 supplemental budget was
ADOPTED.
^FY 21 SUPPLEMENTAL BUDGET: DEPARTMENT OF LAW
5:15:08 PM
Vice-Chair Stedman MOVED to ADOPT the following within the
Department of Law FY 21 supplemental budget:
Item 1 Senate Modify, to read:
"It is the intent of the legislature that no funds be
used from this appropriation for any actions that may
erode existing federal or state subsistence rights or
any actions relating to the interpretation of Janus v.
AFSCME."
There being NO OBJECTION, item 1 within the Department of
Law FY 21 supplemental budget was ADOPTED.
Chair Foster indicated the committee had finished the
agenda for the day.
Vice-Chair Stedman MOVED to ADJOURN. There being NO
OBJECTION, it was so ordered.
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