02/25/2020 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."                                                                         
                                                                                                                                
1:36:21 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster referenced the amendment packet for the                                                                         
bill.                                                                                                                           
                                                                                                                                
Representative Carpenter noted he had just been informed                                                                        
that the item in his amendment had already been removed                                                                         
from the supplemental budget.                                                                                                   
                                                                                                                                
1:37:06 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:37:28 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Representative Carpenter  MOVED to  ADOPT Amendment  1 (copy                                                                    
on file):                                                                                                                       
                                                                                                                                
     DEPARTMENT: DEED                                                                                                           
                                                                                                                                
     APPROPRIATION:    Mt.    Edgecumbe   Boarding    School                                                                    
     Facilities Maintenance                                                                                                     
                                                                                                                                
     ALLOCATION: Operational and Maintenance Costs for MEHS                                                                     
     Aquatic Center                                                                                                             
                                                                                                                                
     Rep. Carpenter                                                                                                             
                                                                                                                                
     DELETE: 100.0, 1004 Gen Fund                                                                                               
     POSITIONS: None                                                                                                            
     EXPLANATION: Eliminate general funds for operation of                                                                      
     the Mt. Edgecumbe pool.                                                                                                    
                                                                                                                                
Co-Chair Johnston OBJECTED for discussion.                                                                                      
                                                                                                                                
Representative  Carpenter explained  the Mt.  Edgecumbe pool                                                                    
did not have  a feasible financial path forward.  He did not                                                                    
support  putting an  additional  $100,000 into  a pool  that                                                                    
could  not  fund  itself into  the  future.  He  recommended                                                                    
saving the funds and closing the facility.                                                                                      
                                                                                                                                
Representative Wool  recalled there  was a fee  structure in                                                                    
the  supplemental with  a path  forward to  offset at  least                                                                    
part of the expenses for the pool. He asked for details.                                                                        
                                                                                                                                
Vice-Chair Ortiz  stated that the  amendment pertained  to a                                                                    
state facility that  needed to be maintained  like any other                                                                    
state facility. He  elaborated that in the  prior year, when                                                                    
the facility was short on  funding, Mt. Edgecumbe used money                                                                    
from  its  Base Student  Allocation  (BSA)  to maintain  the                                                                    
pool. The school  would likely do it again for  FY 21 if the                                                                    
committee  adopted the  amendment. Ultimately  the amendment                                                                    
would only  take away from  BSA funding. The pool  was being                                                                    
used  for  classroom  instruction   and  Mt.  Edgecumbe  was                                                                    
currently working  with local entities such  as the hospital                                                                    
to  use  the pool  more  frequently  to generate  more  door                                                                    
receipts  for the  future.  There was  an  increase in  door                                                                    
receipt  authority in  the  FY 21  budget.  He believed  the                                                                    
legislature could not  continue to ask the  district to fund                                                                    
the pool with BSA funding. He  reported that out of the 2010                                                                    
bond package  the Mt. Edgecumbe Aquatic  Center funding made                                                                    
up  a   very  small   percentage  of  project   funding.  He                                                                    
reiterated that it  was a state facility and,  the state was                                                                    
the overseer  of the entire  Mt. Edgecumbe  school including                                                                    
the pool. He opposed the amendment.                                                                                             
                                                                                                                                
1:40:23 PM                                                                                                                    
                                                                                                                                
Representative Sullivan-Leonard  looked at  the supplemental                                                                    
bill.  She noted  that  the reduction  of  $100,000 did  not                                                                    
eliminate  funding for  the  pool. She  asked  if there  was                                                                    
still  funding  in the  bill  for  the pool.  Representative                                                                    
Carpenter   confirmed  the   amendment  would   only  remove                                                                    
undesignated general funds (UGF).                                                                                               
                                                                                                                                
Representative Knopp asked if the  pool had been included in                                                                    
the  capital  budget  in   recent  years.  Vice-Chair  Ortiz                                                                    
answered that the  pool was located in Sitka -  it was newly                                                                    
constructed.   He  explained   that  after   the  pool   was                                                                    
constructed there had been an  issue about continued funding                                                                    
for the pool's  operation. The funding request  did not have                                                                    
to  do  with  repairs  or  maintenance,  as  it  was  a  new                                                                    
facility. The  funding had  to do with  getting the  pool up                                                                    
and operating.  He hoped the  pool would be able  to collect                                                                    
more revenue  to be more  self-supporting in the  future. In                                                                    
the  end, it  was a  state facility  and, Mt.  Edgecumbe was                                                                    
managed  by the  state.  He  had heard  no  comment about  a                                                                    
desire to discontinue operations of the pool.                                                                                   
                                                                                                                                
Representative Carpenter provided wrap  up on the amendment.                                                                    
He  remarked that  no one  was suggesting  closing down  Mt.                                                                    
Edgecumbe. He argued  that the pool at  Mt. Edgecumbe should                                                                    
be closed  because it  was not  self-sufficient. He  did not                                                                    
think the state should be  funding the pool. The reality was                                                                    
that students  and children in  the community already  had a                                                                    
community pool  to use which  existed prior to  the building                                                                    
of the Mt. Edgecumbe pool.                                                                                                      
                                                                                                                                
Vice-Chair Ortiz MAINTAINED his OBJECTION.                                                                                      
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Knopp,    Merrick,    Sullivan-Leonard,    Tilton,                                                                    
Carpenter                                                                                                                       
OPPOSED: LeBon, Ortiz, Wool, Josephson, Foster, Johnston                                                                        
                                                                                                                                
The MOTION to ADOPT Amendment 1 FAILED (5/6).                                                                                   
                                                                                                                                
Co-Chair Foster  indicated there were no  further amendments                                                                    
for  HB   234.  He  wanted   to  proceed  with   moving  the                                                                    
supplemental  bill from  committee. He  thought overall  the                                                                    
bill  reflected the  governors   supplemental bill.  Nothing                                                                    
had been added to it.  The supplemental budget restored $120                                                                    
million  in Medicaid  and provided  just under  $100 million                                                                    
for fire suppression among other things.                                                                                        
                                                                                                                                
Co-Chair  Johnston  MOVED to  REPORT  CSHB  234(FIN) out  of                                                                    
committee with individual recommendations.                                                                                      
                                                                                                                                
CSHB  234(FIN) was  REPORTED  out of  committee  with a  "do                                                                    
pass" recommendation.                                                                                                           
                                                                                                                                
1:47:03 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:52:02 PM                                                                                                                    
RECONVENED