02/24/2020 01:30 PM House FINANCE

HOUSE BILL NO. 234                                                                                                            
                                                                                                                                
     "An    Act    making    supplemental    appropriations,                                                                    
     reappropriations,  and  other appropriations;  amending                                                                    
     appropriations;     capitalizing      funds;     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."                                                                         
                                                                                                                                
1:42:56 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster explained  that the governor's supplementals                                                                    
had been rolled into a committee substitute (CS).                                                                               
                                                                                                                                
Co-Chair  Johnston MOVED  to  ADOPT  the proposed  committee                                                                    
substitute  for HB  234, Work  Draft 31-GH2200\M  (Caouette,                                                                    
2/21/20).                                                                                                                       
                                                                                                                                
1:43:55 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:44:40 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Johnston restated the motion.                                                                                          
                                                                                                                                
There  being  NO  OBJECTION,   Work  Draft  31-GH2200\M  was                                                                    
ADOPTED.                                                                                                                        
                                                                                                                                
BRODIE  ANDERSON,  STAFF,  REPRESENTATIVE  NEAL  FOSTER,  he                                                                    
highlighted  documents  in  members' packets  including  the                                                                    
bill,  a summary  of changes,  Legislative Finance  Division                                                                    
(LFD) reports,  and a spreadsheet  listing a  description of                                                                    
items.   The   CS    reflected   the   governor's   original                                                                    
supplemental bill  with technical and conforming  changes to                                                                    
match the Legislative Legal  Services drafting manual, along                                                                    
with all  of the  governor's amendments offered  on February                                                                    
19. He noted  that certain items had been  removed. The bill                                                                    
totaled  $525,222,400  in  additional spending  for  FY  20.                                                                    
Total agency  operations were $433,450,200,  statewide items                                                                    
were   $9,487,600,   and   capital  budget   items   totaled                                                                    
$83,284,600.  He referred  to an  LFD document  titled "2020                                                                    
Legislature  -  Operating  Budget  Agency  Summary  -  House                                                                    
Structure -  Numbers and Language," dated  February 24, 2020                                                                    
(copy on file).  He explained there was a  combined total of                                                                    
capital  and   operating  items  because  HB   234  was  the                                                                    
supplemental budget bill. The  bill included $207,201,900 in                                                                    
federal  funds,  $12,826,100  in  designated  general  funds                                                                    
(DGF),  $7,505,000 in  "other"  funds,  and $298,689,400  in                                                                    
unrestricted general funds (UGF).                                                                                               
                                                                                                                                
Mr.  Anderson  explained  the  changes  in  the  CS  with  a                                                                    
proposed summary of changes (copy on file):                                                                                     
                                                                                                                                
     Section  1,  starting  on  page   2.  This  section  is                                                                    
     operating  supplemental   numbers  section   items.  It                                                                    
     includes all  operating numbers section  items proposed                                                                    
     by the Governor in his version of HB 234.                                                                                  
     1. The only  difference in the Section 1 is  on page 3,                                                                    
     line 11,  Medicaid Services. The Governor  included $18                                                                    
     million of federal funds  for adult preventative dental                                                                    
     that  had already  been restored  in HB  2001. This  CS                                                                    
     removes  this unnecessary  federal  authority and  left                                                                    
     the UGF portion only.                                                                                                      
     Section 4, starting on page  8. This section is capital                                                                    
     supplemental  numbers section  items.  It includes  all                                                                    
     capital numbers section items  proposed by the Governor                                                                    
     in  his  version   of  HB  234  and   his  February  19                                                                    
     amendments.                                                                                                                
     2.  The new  item in  the Governor's  amendments is  on                                                                    
     page  8, line  17, the  Alaska Land  Mobile Radio  Site                                                                    
     Refresh project for $24 million UGF.                                                                                       
     3. Section  8, starting  on page  12, line  15, matches                                                                    
     the  combined  sections   in  the  Governor's  original                                                                    
     version of HB  234 and the February  19 amendments. The                                                                    
     amendments added two additional settlements.                                                                               
     4. Section  10, starting on  page 13, line  5, includes                                                                    
     an amendment  added by the  Governor on February  19 to                                                                    
     carry  forward the  bond proceeds  for  the Tax  Credit                                                                    
    Bonds to FY21 in case the bond issuance is delayed.                                                                         
     5. Section 11,  starting on page 13,  line 14, includes                                                                    
     a  scope change  requested  by the  Governor for  Knik-                                                                    
     Goose  Bay Road.  The Governor's  prior subsection  re-                                                                    
     appropriated $3 million of  lapsing capital projects to                                                                    
     the  general  fund  was removed.  These  items  can  be                                                                    
     addressed in the capital budget.                                                                                           
     6.  The  Constitutional   Budget  Reserve  language  in                                                                    
     Section 17,  starting page 15,  line 11,  restricts the                                                                    
     CBR access granted in this  section to this bill alone.                                                                    
     The  Governor's language  allowed unlimited  CBR access                                                                    
     in FY20.                                                                                                                   
                                                                                                                                
Mr.  Anderson reviewed  the governor's  items  that had  not                                                                    
been accepted or included in the CS:                                                                                            
                                                                                                                                
     7. The  Governor's section 7 was  removed. That section                                                                    
     re-appropriated   $1.1  million   of  lapsing   capital                                                                    
     projects in  the Department of Commerce,  Community and                                                                    
     Economic Development  to the general fund.  These items                                                                    
     can be addressed in the capital budget.                                                                                    
     8. Three  of the  Governor's prior subsections  for the                                                                    
     Department  of Revenue  were deleted.  One section  re-                                                                    
     appropriated a lapsing  capital project totaling $331.9                                                                    
     to   the  general   fund.   The   other  sections   re-                                                                    
     appropriated   a  lapsing   capital  project   for  the                                                                    
     Department   of   Revenue   to   the   department   for                                                                    
     consultants and office space  planning. All three items                                                                    
     can be addressed in the capital budget.                                                                                    
     9.  The  Governor's  proposed  fund  transfer  of  $1.1                                                                    
     million  from the  Alaska  Housing Capital  Corporation                                                                    
     was also removed. This can  be addressed in the capital                                                                    
     budget.                                                                                                                    
                                                                                                                                
1:52:24 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster stated  his understanding  that the  CS was                                                                    
the  governor's  original   supplemental  with  supplemental                                                                    
additions submitted  in the governor's amendments.  He asked                                                                    
for verification  the CS did  not include any  major changes                                                                    
other than technical and conforming changes.                                                                                    
                                                                                                                                
Mr. Anderson agreed.                                                                                                            
                                                                                                                                
Co-Chair  Foster relayed  amendments  were due  by noon  the                                                                    
following  day.   He  reminded  members  of   the  amendment                                                                    
deadlines.                                                                                                                      
                                                                                                                                
HB  234  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.