Legislature(2025 - 2026)ADAMS 519

03/09/2026 01:30 PM House FINANCE

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01:36:29 PM Start
01:38:00 PM SB64
02:12:26 PM Subcommittee Closeout Reports
02:12:31 PM Department of Military and Veterans Affairs
02:17:05 PM Department of Labor and Workforce Development
02:27:13 PM Department of Natural Resources
02:39:15 PM Department of Education and Early Development
02:51:07 PM Judiciary
02:54:02 PM Department of Public Safety
02:56:41 PM Department of Fish and Game
03:06:47 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 64 ELECTIONS TELECONFERENCED
Heard & Held
+= HB 263 APPROP: OPERATING BUDGET;AMEND;SUPP TELECONFERENCED
Heard & Held
+= HB 265 APPROP: MENTAL HEALTH BUDGET TELECONFERENCED
Heard & Held
+ Subcommittee Closeouts: TELECONFERENCED
Departments: Military and Veterans Affairs, Labor
and Workforce Development, Natural Resources,
Judiciary, Public Safety, Fish and Game, and
Education and Early Development
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 263                                                                                                            
                                                                                                                                
     "An  Act making  appropriations for  the operating  and                                                                    
     loan  program  expenses  of state  government  and  for                                                                    
     certain   programs;    capitalizing   funds;   amending                                                                    
     appropriations;  making   supplemental  appropriations;                                                                    
     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."                                                                                                        
                                                                                                                                
HOUSE BILL NO. 265                                                                                                            
                                                                                                                                
     "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."                                                                                                        
^SUBCOMMITTEE CLOSEOUT REPORTS                                                                                                
                                                                                                                                
2:12:26 PM                                                                                                                    
                                                                                                                                
^DEPARTMENT OF MILITARY AND VETERANS AFFAIRS                                                                                  
                                                                                                                                
2:12:31 PM                                                                                                                    
                                                                                                                                
Mr.    Anderson    reviewed   the    finance    subcommittee                                                                    
recommendations for the Department of Military and Veterans                                                                     
Affairs (copy on file):                                                                                                         
                                                                                                                                
     RECOMMENDATIONS:                                                                                                           
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Military  and  Veterans Affairs  submits                                                                    
     the following  recommended operating budget  for FY2027                                                                    
     to the House Finance Committee:                                                                                            
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $18,554.4                                                                               
     Designated General Funds (DGF)         $ 1.1                                                                               
     Other Funds                        $14,812.5                                                                               
     Federal Funds                      $36,379.8                                                                               
     Total                              $69,747.8                                                                               
                                                                                                                                
     The  Unrestricted  General  Fund difference  from  FY27                                                                    
     Adjusted  Base/House  Committee  Substitute  1  to  the                                                                    
     House   Subcommittee   budget  recommendation   is   an                                                                    
     increase of $29.0 of  Unrestricted General Funds, which                                                                    
     is .2% above the FY27 Adjusted Base.                                                                                       
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 286                                                                                                    
     Permanent Part-time   0                                                                                                    
     Temporary             3                                                                                                    
     Total               286                                                                                                    
                                                                                                                                
     BUDGET ACTION:                                                                                                             
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Military  and Veterans  Affairs reviewed                                                                    
     the   FY2027  Governor's   budget  request,   including                                                                    
    amendments, and recommended the following actions:                                                                          
                                                                                                                                
     1) Accept  the Department's  transaction for  Office of                                                                    
     the  Commissioner,  adding  two  Program  Managers  for                                                                    
     Public  Protection  and  Infrastructure  Support.  This                                                                    
     includes the following items:                                                                                              
        • $318.6 thousand Federal Receipts.                                                                                   
        • 2 Permanent Full-time positions                                                                                     
     2) Approve the  transactions for Information Technology                                                                    
     Classification Study Implementation:                                                                                       
        • $49.0 thousand in the Office of the Commissioner                                                                    
               - $16.3 thousand UGF, the rest in Fed and                                                                        
               Other funds.                                                                                                     
               - $25.5 thousand in Homeland Security and                                                                        
               Emergency Management                                                                                             
                  -- $12.7 thousand UGF, the rest in CIP                                                                        
                    Receipt                                                                                                     
     3) Accept  the Department's transaction for  Army Guard                                                                    
     Facilities   Maintenance,   adding  two   Environmental                                                                    
     Program Specialists  Positions for Hazardous  Waste and                                                                    
     Water Resource Management.  This includes the following                                                                    
     items:                                                                                                                     
        • $ 252.2 thousand Federal Receipts.                                                                                  
        • 2 Permanent Full-time positions                                                                                     
     4) Approve  the decrement  of $27.4  DGF in  Army Guard                                                                    
     Facilities Maintenance due to uncollected rental fees.                                                                     
                                                                                                                                
     ATTACHED REPORTS:                                                                                                          
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Military and  Veterans Affairs adopts the                                                                    
     attached report:                                                                                                           
                                                                                                                                
        • The House Finance Subcommittee for the Department                                                                   
          of Military and Veterans Affairs Budget Action                                                                        
          Report                                                                                                                
                                                                                                                                
2:16:20 PM                                                                                                                    
                                                                                                                                
Representative Tomaszewski asked  for more information about                                                                    
uncollected rental fees.                                                                                                        
                                                                                                                                
Mr. Anderson responded  that due to the  decrease of rentals                                                                    
and armories,  the department was  able to  reduce authority                                                                    
and lower rental fees. Many  of the armories were either not                                                                    
in use or not being  utilized, and those in remote locations                                                                    
had no armory attendants.                                                                                                       
                                                                                                                                
^DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT                                                                                
                                                                                                                                
2:17:05 PM                                                                                                                    
                                                                                                                                
CAROLINE   HAMP,  STAFF,   REPRESENTATIVE  CALVIN   SCHRAGE,                                                                    
reviewed  the finance  subcommittee recommendations  for the                                                                    
Department of Labor and Workforce Development (copy on                                                                          
file):                                                                                                                          
                                                                                                                                
     The   House  Finance   budget   subcommittee  for   the                                                                    
     Department of  Labor and Workforce  Development (DOLWD)                                                                    
     recommends the following Fiscal Year 2027 budget:                                                                          
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $23,364.7                                                                               
     Designated General Funds (DGF)     $28,683.5                                                                               
     Other Funds                        $17,094.3                                                                               
     Federal Funds                      $98,031.7                                                                               
     Total                             $167,174.2                                                                               
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 672                                                                                                    
     Permanent Part-time  32                                                                                                    
     Temporary             8                                                                                                    
     Total               712                                                                                                    
                                                                                                                                
     Compared to the FY27  House Committee Substitute 1, the                                                                    
     subcommittee recommendation  represents a  decrement of                                                                    
     $534.0  (or -2.2%)  in  Unrestricted  General Funds,  a                                                                    
     decrement  of $5,724.3  (-16.6%) in  Designated General                                                                    
     Funds, a decrement of $1,453.8  (-7.8%) in Other Funds,                                                                    
     and a decrement of $2,591.8 (-2.6%) in Federal Funds.                                                                      
                                                                                                                                
     Budget Actions:                                                                                                            
                                                                                                                                
     The   House  Finance   budget   subcommittee  for   the                                                                    
     Department of Labor and  Workforce Development held two                                                                    
     informational  meetings  with  the Department  and  one                                                                    
     close-out  meeting  during  the review  of  the  FY2027                                                                    
     budget requests.                                                                                                           
                                                                                                                                
     The subcommittee adopted:                                                                                                  
        • all Governor proposed budget changes with two                                                                       
           fund   source   changes   (detailed   in   Member                                                                    
           Amendments below);                                                                                                   
        • a technical transaction correction from the                                                                         
           Legislative Finance Division;                                                                                        
        • a transfer of the State Training and Employment                                                                     
           Program (STEP) from the numbers section to the                                                                       
           language section; and                                                                                                
        • a   deletion   of   two   positions   within   the                                                                  
           Commissioner's office.                                                                                               
     Member Amendments:                                                                                                         
                                                                                                                                
     The   Chair  set   an   amendment  deadline,   welcomed                                                                    
     amendments from all members,  and received an amendment                                                                    
     to change  the fund source for  a Workers' Compensation                                                                    
     increment. DOLWD requested a  one-time increment of UGF                                                                    
     to  maintain  Workers'   Compensation  operations.  The                                                                    
     Worker's   Safety   and   Compensation   Administration                                                                    
     Account  (WSCAA)  is  currently underfunded  due  to  a                                                                    
     decrease   in   revenue  derived   from   employer-paid                                                                    
     insurance premiums  and lack of reverse  sweep, leaving                                                                    
     no  carryforward funding.  Due to  a member  amendment,                                                                    
     the   subcommittee  voted   to   change  the   increase                                                                    
     ($1,405.0) from UGF to Timber Sale Receipts.                                                                               
                                                                                                                                
     A  member  conceptual  amendment was  also  adopted  to                                                                    
     fully   fund  ($478.9)   the   Office  of   Citizenship                                                                    
     Assistance and  its three positions through  STEP funds                                                                    
     instead of previously-used UGF.                                                                                            
                                                                                                                                
     Attached Reports:                                                                                                          
     The Finance  Budget Subcommittee for the  Department of                                                                    
     Labor and Workforce Development  (DOLWD) adopted the BA                                                                    
     Report and  corresponding Legislative  Finance Division                                                                    
     documents, which are attached.                                                                                             
                                                                                                                                
2:20:34 PM                                                                                                                    
                                                                                                                                
Representative  Hannan  asked  how money  from  a  different                                                                    
department's  receipts  could  be  taken  to  fund  workers'                                                                    
compensation, which  was a legal obligation.  She asked what                                                                    
would  happen to  timber  receipts if  there  was no  timber                                                                    
sale.                                                                                                                           
                                                                                                                                
Ms. Hamp  responded that  the timber  sale receipt  could be                                                                    
used for any public fund  source. There was collaboration on                                                                    
the change  with the Office  of Management and  Budget (OMB)                                                                    
and the  Legislative Finance Division  (LFD) to  ensure that                                                                    
there were  currently sufficient  timber sale  receipt funds                                                                    
to fund the item.                                                                                                               
                                                                                                                                
Representative Hannan  noted that she had  previously been a                                                                    
member of the Department  of Natural Resources (DNR) finance                                                                    
subcommittee,   but   she   was   not   currently   on   the                                                                    
subcommittee.  She  understood  that  timber  receipts  were                                                                    
typically used to support operations  within the Division of                                                                    
Forestry.  She  asked whether  the  change  would require  a                                                                    
reduction in the  DNR budget for previously  planned uses of                                                                    
timber receipts or whether the  funds were considered excess                                                                    
and available for reallocation.                                                                                                 
                                                                                                                                
Ms. Hamp responded that there  were sufficient funds for the                                                                    
current  fiscal year.  She explained  that adequate  funding                                                                    
was  available  both  within the  existing  DNR  budget  and                                                                    
through  the one-time  allocation,  because the  item was  a                                                                    
one-time increment.                                                                                                             
                                                                                                                                
Representative Hannan asked whether  both the $84,000 in UGF                                                                    
and   approximately   $343,000   in   interagency   receipts                                                                    
associated with  two positions in the  commissioner's office                                                                    
were being  removed. She asked  if the positions  were being                                                                    
removed also.                                                                                                                   
                                                                                                                                
Ms. Hamp confirmed  that both the funding  and the positions                                                                    
were proposed for deletion.                                                                                                     
                                                                                                                                
Representative  Hannan stated  that she  intended to  pursue                                                                    
restoring at least one of  the positions. She explained that                                                                    
one  of the  positions  was a  legislative  liaison for  the                                                                    
Department of Labor and Workforce  Development and played an                                                                    
important role in  assisting constituents, particularly with                                                                    
unemployment-related   issues.   She  indicated   that   the                                                                    
department  was  willing  to fund  the  position  internally                                                                    
using  interagency receipts,  but  removal  of the  position                                                                    
authority  would  prevent  that option.  She  expressed  her                                                                    
intent to  work with the  committee to restore  the position                                                                    
while  still  allowing for  the  reduction  in general  fund                                                                    
support.                                                                                                                        
                                                                                                                                
2:25:11 PM                                                                                                                    
                                                                                                                                
Representative Galvin  asked for a brief  explanation of the                                                                    
decision  to  change  the  fund source  for  the  Office  of                                                                    
Citizenship  Assistance  (OCA)   from  unrestricted  general                                                                    
funds (UGF)  to statutory  designated program  receipts. She                                                                    
asked whether the change would  make funding for the program                                                                    
less stable.                                                                                                                    
                                                                                                                                
Ms.  Hamp   responded  that  the  subcommittee   had  sought                                                                    
opportunities to  reduce UGF spending and  determined that a                                                                    
fund  source  change would  allow  the  program to  continue                                                                    
operating  while  achieving  savings.  She did  not  have  a                                                                    
definitive answer  regarding the long-term stability  of the                                                                    
funding.                                                                                                                        
Representative Galvin asked for clarification on whether                                                                        
the fund source change would require annual reconsideration                                                                     
to maintain funding for OCA.                                                                                                    
                                                                                                                                
Ms.  Hamp responded  that the  program would  remain in  the                                                                    
base  budget  even  with the  use  of  statutory  designated                                                                    
program   receipts  and   would   not  necessarily   require                                                                    
reauthorization each year.                                                                                                      
                                                                                                                                
^DEPARTMENT OF NATURAL RESOURCES                                                                                              
                                                                                                                                
2:27:13 PM                                                                                                                    
                                                                                                                                
Ms. Hamp reviewed the finance subcommittee recommendations                                                                      
for the Department of Natural Resources (copy on file):                                                                         
                                                                                                                                
     The   House  Finance   budget   subcommittee  for   the                                                                    
     Department   of   Natural  Resources   recommends   the                                                                    
     following Fiscal Year 2027 budget:                                                                                         
                                                                                                                                
     Subcommittee Recommendations (Numbers Section Only):                                                                       
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $23,364.7                                                                               
     Designated General Funds (DGF)     $28,683.5                                                                               
     Other Funds                        $17,094.3                                                                               
     Federal Funds                      $98,031.7                                                                               
     Total                             $167,174.2                                                                               
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time 672                                                                                                    
     Permanent Part-time  32                                                                                                    
     Temporary             8                                                                                                    
     Total               712                                                                                                    
                                                                                                                                
     Compared  to the  FY27 House  Committee Substitute  #1,                                                                    
     the subcommittee recommendations  represent an decrease                                                                    
     of  $272.5 (-0.4%)  in Unrestricted  General Funds,  an                                                                    
     increase  of  $3,896.5  (7.3%)  in  Designated  General                                                                    
     Funds,  $1,355.2 (2.5%)  in Other  Funds, and  $7,609.9                                                                    
     (41.6%) in Federal Funds.                                                                                                  
                                                                                                                                
     Budget Action:                                                                                                             
                                                                                                                                
     The   House  Finance   budget   subcommittee  for   the                                                                    
     Department   of  Natural   Resources  (DNR)   held  two                                                                    
     informational  meetings  with  the Department  and  one                                                                    
     close-out meeting. The subcommittee adopted:                                                                               
        • All of the Governor's proposed budget requests                                                                      
          except  changes   to  create  the   Department  of                                                                    
          Agriculture,  which   included  denying  structure                                                                    
          changes  and  two  increments totaling  $301.1  of                                                                    
          various    fund    sources    (the    subcommittee                                                                    
          recommendation   is  to   keep  the   Division  of                                                                    
          Agriculture housed within DNR);                                                                                       
        • A decrement of $641.1 UGF to delete four vacant                                                                     
          forester positions  located in  Anchorage, Haines,                                                                    
          and Ketchikan;                                                                                                        
        • A $900.0 fund source change from UGF to Timber                                                                      
          Sales  Receipts   to  pay  for   forestry  related                                                                    
          positions, reversing action taken in FY25;                                                                            
        • A deletion of the recently vacated Deputy                                                                           
          Commissioner position;                                                                                                
        • A one-time increment of $1,956.6 in Vehicle                                                                         
          Rental Tax  to fund  revenue-generating facilities                                                                    
          and    infrastructure   projects    within   Parks                                                                    
          Management and Access.                                                                                                
                                                                                                                                
     Compared  to  the  FY27   Governor  Amend  budget,  the                                                                    
     subcommittee  recommendations represent  a decrease  of                                                                    
     $1,960.5 (-2.6%) in UGF.                                                                                                   
                                                                                                                                
     Subcommittee Amendments:                                                                                                   
                                                                                                                                
     The   Chair  set   an   amendment  deadline,   welcomed                                                                    
     amendments   from  all   members,   and  received   one                                                                    
     amendments that  ultimately was not offered  during the                                                                    
     close-out meeting.  A conceptual amendment  was offered                                                                    
     but failed.                                                                                                                
                                                                                                                                
     Attached Reports:                                                                                                          
                                                                                                                                
     The   House  Finance   budget   subcommittee  for   the                                                                    
     Department  of  Natural  Resources  (DNR)  adopted  the                                                                    
     attached BA Report.                                                                                                        
                                                                                                                                
Co-Chair  Josephson asked  whether the  proposed use  of the                                                                    
vehicle  rental  tax  in  the final  bulleted  item  of  the                                                                    
narrative  would exceed  the  available  revenue or  whether                                                                    
sufficient funds existed.                                                                                                       
                                                                                                                                
Ms. Hamp responded that the proposal would exceed the                                                                           
typically allocated amount and would result in over-                                                                            
appropriating the vehicle rental tax.                                                                                           
Co-Chair  Josephson  asked  whether  expenditures  would  be                                                                    
limited to  the available revenue or  whether spending could                                                                    
continue.                                                                                                                       
                                                                                                                                
Ms. Hamp requested  assistance from LFD for  a more detailed                                                                    
explanation.                                                                                                                    
                                                                                                                                
2:30:46 PM                                                                                                                    
                                                                                                                                
ALEXEI  PAINTER,  DIRECTOR,  LEGISLATIVE  FINANCE  DIVISION,                                                                    
responded  that   the  legislature   typically  appropriated                                                                    
vehicle rental tax  revenue based on actual  receipts from a                                                                    
prior completed fiscal year. He  clarified that the proposal                                                                    
would  exceed the  amount  of revenue  collected  in FY  25,                                                                    
which  was the  prior  fiscal year.  He  explained that  the                                                                    
vehicle rental tax functioned as  a tracking code within the                                                                    
general  fund  rather  than  as a  standalone  fund  with  a                                                                    
retained balance.  As a  result, if  appropriations exceeded                                                                    
the recorded revenue,  general funds would be  used to cover                                                                    
the additional spending.                                                                                                        
                                                                                                                                
Co-Chair Josephson asked if he  would effectively be able to                                                                    
tell his  constituents in Anchorage  that spending  on parks                                                                    
management,  access,  and  infrastructure had  increased  by                                                                    
$1.95 million.                                                                                                                  
                                                                                                                                
Mr.  Painter  responded  that   the  situation  was  unusual                                                                    
because  the   vehicle  rental  tax  was   classified  as  a                                                                    
designated general  fund rather than a  standalone fund with                                                                    
its own  balance. He explained  that the  revenue ultimately                                                                    
rolled up  into the  general fund.  In past  instances where                                                                    
small  over-appropriations occurred,  the excess  had simply                                                                    
been covered  by the general  fund. He added that  the state                                                                    
had  not  previously  intentionally over-appropriated  by  a                                                                    
significant amount and that it  was unclear how the governor                                                                    
or the Division of Finance would respond in such a case.                                                                        
                                                                                                                                
Representative Galvin  asked whether the vehicle  rental tax                                                                    
had originally  been intended, either  in statute  or intent                                                                    
language,  to  support  tourism marketing  efforts  such  as                                                                    
those carried out by the  Alaska Travel Industry Association                                                                    
(ATIA).                                                                                                                         
                                                                                                                                
Mr.  Painter responded  that statute  designated the  entire                                                                    
amount of  vehicle rental tax revenue  for tourism marketing                                                                    
purposes.                                                                                                                       
Representative Hannan  asked for  clarification on  how much                                                                    
the fund was being over-appropriated.                                                                                           
                                                                                                                                
Mr.  Painter  explained   that  the  over-appropriation  was                                                                    
approximately equal to the proposed  increment of about $1.9                                                                    
million. He  noted that the  fund had already  been slightly                                                                    
overspent by a small amount  prior to the addition by around                                                                    
$50,000.                                                                                                                        
                                                                                                                                
2:34:39 PM                                                                                                                    
                                                                                                                                
Representative  Hannan  asked   for  confirmation  that  the                                                                    
calculation  accounted   for  all   relevant  appropriations                                                                    
drawing from the vehicle rental  tax, including those within                                                                    
the  Department  of  Transportation  and  Public  Facilities                                                                    
(DOT)  and  the  Department   of  Commerce,  Community,  and                                                                    
Economic Development (DCCED).                                                                                                   
                                                                                                                                
Mr. Painter responded in the affirmative.                                                                                       
                                                                                                                                
Representative  Bynum  asked  whether the  budget  currently                                                                    
funded tourism marketing.                                                                                                       
                                                                                                                                
Mr. Painter responded in the negative.                                                                                          
                                                                                                                                
Representative  Bynum  expressed   concern  that  the  state                                                                    
maintained   a  revenue   source   designated  for   tourism                                                                    
marketing  while  not  allocating  those  funds  toward  the                                                                    
intended purpose. He thought  complications could be created                                                                    
in future  budgeting decisions by requiring  reliance on UGF                                                                    
instead of the intended revenue stream.                                                                                         
                                                                                                                                
Co-Chair  Josephson  asked  Mr.  Painter  whether  ATIA  was                                                                    
sometimes  funded  in the  capital  budget  rather than  the                                                                    
operating budget.                                                                                                               
                                                                                                                                
Mr. Painter  responded that  ATIA had  been included  in the                                                                    
capital  budget  more  often   than  not,  although  it  had                                                                    
occasionally  appeared in  the  operating  budget. He  added                                                                    
that, in  the current  governor's proposal, it  was included                                                                    
in neither.                                                                                                                     
                                                                                                                                
Representative  Galvin relayed  that  she  had been  advised                                                                    
against shifting positions from  designated general funds to                                                                    
UGF  due   to  potential  accounting  issues   or  statutory                                                                    
concerns. She  asked for clarification on  how that guidance                                                                    
applied to the current discussion.                                                                                              
Mr. Painter  responded that the  positions in  question were                                                                    
tied  directly to  the collection  of  receipts, making  the                                                                    
designated general  fund an  appropriate funding  source. He                                                                    
explained that  there was a  prior policy decision  that had                                                                    
shifted  funding to  UGF in  order  to free  up timber  sale                                                                    
receipts for  capital projects. He  noted that  the governor                                                                    
currently  proposed   using  timber  receipts   for  capital                                                                    
purposes,  and that  the  present  change would  effectively                                                                    
revert  to using  timber  receipts  for operating  expenses,                                                                    
consistent with earlier practice prior to that shift.                                                                           
                                                                                                                                
2:38:07 PM                                                                                                                    
                                                                                                                                
Representative  Bynum asked  for  clarification  on item  12                                                                    
related  to fire  suppression and  land and  water resources                                                                    
forestry  management development.  He  noted  that the  item                                                                    
proposed  deletion of  four  vacant  forestry positions  and                                                                    
asked  whether the  deletions were  based solely  on vacancy                                                                    
status or  whether there had  been discussion  regarding the                                                                    
operational need for the positions.                                                                                             
                                                                                                                                
Ms.  Hamp  responded that  the  deletions  were partially  a                                                                    
cost-saving  measure  and  partially due  to  the  positions                                                                    
being  vacant. She  added that  the budget  included federal                                                                    
Good  Neighbor  Authority  funding  intended  to  support  a                                                                    
forestry position  in Ketchikan, which was  expected to help                                                                    
offset staffing impacts.                                                                                                        
                                                                                                                                
^DEPARTMENT OF EDUCATION AND EARLY DEVELOPMENT                                                                                
                                                                                                                                
2:39:15 PM                                                                                                                    
                                                                                                                                
DAVID  JIANG, STAFF,  REPRESENTATIVE ALYSE  GALVIN, reviewed                                                                    
the finance subcommittee  recommendations for the Department                                                                    
of Education and Early Development (copy on file):                                                                              
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of Education  and Early  Development (DEED)                                                                    
     held  a  total of  seven  meetings  and received  eight                                                                    
     presentations  on  department   and  division  budgets,                                                                    
     including  the  Governor  proposed and  amended  budget                                                                    
     actions.   Based  on   that  information   and  related                                                                    
     discussions,  the  Subcommittee accepted  all  Governor                                                                    
     operating  budget actions  and added  seven items.  The                                                                    
     Subcommittee  submits the  following recommended  FY 27                                                                    
     operating budget to the House Finance Committee.                                                                           
                                                                                                                                
     RECCOMENDATIONS:                                                                                                           
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)   $105,018.7                                                                              
     Designated General Funds (DGF)      $38,364.6                                                                              
     Other Funds                         $38,416.3                                                                              
     Federal Funds                      $267,354.3                                                                              
     Total                              $449,153.9                                                                              
                                                                                                                                
     Compared   to  the   FY27  governor's   amended  budget                                                                    
     proposal,  subcommittee  recommendations  represent  an                                                                    
     increase of $4,900.1 (+4.9%) in UGF.                                                                                       
                                                                                                                                
     Importantly, the  amounts above are for  the Department                                                                    
     of  Education &  Early Development  and do  not include                                                                    
     public education  funds that  go directly  to districts                                                                    
     based  on  formula  funding,  base  student  allocation                                                                    
     (BSA)  or  Pupil  Transportation,  which  accounts  for                                                                    
     $1,233,953.1  and  $72,826.1  UGF  respectively,  since                                                                    
     these are considered language items  not in the purview                                                                    
     of the  subcommittee. Should  these items  be included,                                                                    
     the increment  of $4,900.1 UGF discussed  would account                                                                    
     for a 0.3 percent increase.                                                                                                
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time  280                                                                                                   
     Permanent Part-time   10                                                                                                   
     Temporary             16                                                                                                   
     Total                306                                                                                                   
                                                                                                                                
     [Due to  length, please view  the copy on file  for the                                                                    
     Budget Action section of the summary.]                                                                                     
                                                                                                                                
2:49:22 PM                                                                                                                    
                                                                                                                                
Co-Chair Josephson  commended Representative Galvin  and her                                                                    
staff for  presenting a strong  and well-supported  case for                                                                    
the requested increments.                                                                                                       
                                                                                                                                
Representative Hannan directed attention  to items 21 and 22                                                                    
related to the Higher  Education Investment Fund (HEIF). She                                                                    
asked would happen  to those increments if the  fund was not                                                                    
recapitalized.                                                                                                                  
                                                                                                                                
Mr. Jiang deferred the question to LFD.                                                                                         
                                                                                                                                
2:50:11 PM                                                                                                                    
                                                                                                                                
CONNOR BELL,  FISCAL ANALYST, LEGISLATIVE  FINANCE DIVISION,                                                                    
responded that HEIF was subject  to appropriation. He stated                                                                    
that sufficient funding existed  for the current fiscal year                                                                    
to   support   the    increments   regardless   of   whether                                                                    
recapitalization   occurred.  He   cautioned  that   without                                                                    
recapitalization, the  fund would continue to  be drawn down                                                                    
at  an  unsustainable  rate   relative  to  expected  market                                                                    
returns, leading to a gradual depletion over time.                                                                              
                                                                                                                                
^JUDICIARY                                                                                                                    
                                                                                                                                
2:51:07 PM                                                                                                                    
                                                                                                                                
KEENAN   MILLER,   STAFF,  REPRESENTATIVE   NELLIE   JIMMIE,                                                                    
reviewed  the finance  subcommittee recommendations  for the                                                                    
Judiciary (copy on file):                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Judiciary  (Court System)  held a  total of  2 meetings                                                                    
     and submits the  following recommended operating budget                                                                    
     for FY27 to the House Finance Committee:                                                                                   
                                                                                                                                
     RECCOMENDATIONS:                                                                                                           
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)    $105,018.7                                                                             
     Designated General Funds (DGF)      $159,591.6                                                                             
     Other Funds                               $0.0                                                                             
     Federal Funds                         $2,812.0                                                                             
     Total                                 $1,805.3                                                                             
                                                                                                                                
     Compared  to the  FY27 Governor's  Amended budget,  the                                                                    
     Subcommittee   recommendations  appropriates   $1,085.3                                                                    
     more UGF (0.7%).                                                                                                           
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time  755                                                                                                   
     Permanent Part-time   38                                                                                                   
     Temporary              6                                                                                                   
     Total                799                                                                                                   
                                                                                                                                
     BUDGET ACTIONS                                                                                                             
                                                                                                                                
     The Governor's  proposed budget  was accepted  with the                                                                    
     following changes:                                                                                                         
     - Add  $600.3 UGF for inflationary  increases to lease,                                                                    
     utility, and service payments.                                                                                             
     - Add $115.5 GF/MH for  salary and benefit increases of                                                                    
     two  paralegals  for  centralized  competency  calendar                                                                    
     management (IncT; FY27-28)                                                                                                 
     - Add  $6.0 UGF to  the Commission on  Judicial Conduct                                                                    
     for increasing annual travel  expenses of quarterly in-                                                                    
     person commission meetings.                                                                                                
                                                                                                                                
     SUBCOMMITTEE AMENDMENTS                                                                                                    
     The  Chair  received  one amendment  from  subcommittee                                                                    
     members in  advance of the deadline.  The following was                                                                    
     adopted:                                                                                                                   
                                                                                                                                
     -  Add $363.5  UGF to  address increased  court visitor                                                                    
     caseload and backlog.                                                                                                      
                                                                                                                                
     ATTACHED REPORTS                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Judiciary  (Court System)  adopted the  attached Budget                                                                    
     Action  Report  provided  by  the  Legislative  Finance                                                                    
     Division.                                                                                                                  
                                                                                                                                
^DEPARTMENT OF PUBLIC SAFETY                                                                                                  
                                                                                                                                
2:54:02 PM                                                                                                                    
                                                                                                                                
Mr.    Miller    reviewed     the    finance    subcommittee                                                                    
recommendations for the Department of Public Safety (copy                                                                       
on file):                                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Public Safety held  a total of 4 meetings                                                                    
     and submits the  following recommended operating budget                                                                    
     for FY27 to the House Finance Committee:                                                                                   
                                                                                                                                
     RECCOMENDATIONS:                                                                                                           
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)    $290,560.7                                                                             
     Designated General Funds (DGF)        $9,984.2                                                                             
     Other Funds                          $16,604.4                                                                             
     Federal Funds                        $41,352.6                                                                             
     Total                               $358,501.9                                                                             
                                                                                                                                
     Compared  to the  FY27 Governor's  Amended budget,  the                                                                    
     Subcommittee   recommendations  appropriates   $2,292.0                                                                    
     more UGF (0.8%).                                                                                                           
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time  1,009                                                                                                 
     Permanent Part-time     11                                                                                                 
     Temporary               38                                                                                                 
     Total                1,058                                                                                                 
                                                                                                                                
     BUDGET ACTIONS                                                                                                             
                                                                                                                                
     The Governor's  proposed budget  was accepted  with the                                                                    
     following changes:                                                                                                         
                                                                                                                                
     - Add $1,200 UGF  for inflationary increases for direct                                                                    
     service  provider  grants  for  survivors  of  domestic                                                                    
     violence and sexual assault.                                                                                               
     - Add  $500.0 UGF  to replace  lost federal  Victims of                                                                    
     Crime  Act  funding  and   provide  legal  services  to                                                                    
    survivors of domestic violence and sexual assault.                                                                          
     -  Adds  $592.0  UGF  to  replace  reduced  Restorative                                                                    
     Justice   Funds   allocated   to  the   Violent   Crime                                                                    
     Compensation  Board and  used to  capitalize the  Crime                                                                    
     Victim Compensation Fund.                                                                                                  
                                                                                                                                
     SUBCOMMITTEE AMENDMENTS                                                                                                    
     The  Chair  received  10 amendments  from  subcommittee                                                                    
     members in advance of the deadline. None were adopted.                                                                     
                                                                                                                                
     ATTACHED REPORTS                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Public   Safety  adopted  the  attached                                                                    
     Budget  Action  Report   provided  by  the  Legislative                                                                    
     Finance Division.                                                                                                          
                                                                                                                                
^DEPARTMENT OF FISH AND GAME                                                                                                  
                                                                                                                                
2:56:41 PM                                                                                                                    
                                                                                                                                
Mr.    Miller    reviewed     the    finance    subcommittee                                                                    
recommendations for the Department of Fish and Game (copy                                                                       
on file):                                                                                                                       
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department of Fish and Game  held a total of 4 meetings                                                                    
     and submits the  following recommended operating budget                                                                    
     for FY27 to the House Finance Committee:                                                                                   
                                                                                                                                
     RECCOMENDATIONS:                                                                                                           
                                                                                                                                
     Fund Source: (dollars are in thousands)                                                                                    
     Unrestricted General Funds (UGF)     $77,802.1                                                                             
     Designated General Funds (DGF)       $12,875.8                                                                             
     Other Funds                          $92,639.4                                                                             
     Federal Funds                        $95,906.9                                                                             
     Total                               $279,224.2                                                                             
                                                                                                                                
     Compared  to the  FY27 Governor's  Amended budget,  the                                                                    
     Subcommittee recommendations spend  equal UGF funds. It                                                                    
     adds three temp positions.                                                                                                 
                                                                                                                                
     Positions:                                                                                                                 
     Permanent Full-time    868                                                                                                 
     Permanent Part-time    576                                                                                                 
     Temporary                4                                                                                                 
     Total                1,448                                                                                                 
                                                                                                                                
     BUDGET ACTIONS                                                                                                             
                                                                                                                                
     The Governor's  proposed budget  was accepted  with the                                                                    
     following changes:                                                                                                         
                                                                                                                                
     - Add  $400.0 UGF to the  commercial Fisheries/Westward                                                                    
     Region  Fishery  Management to  supplant  contributions                                                                    
     made by the Bristol  Bay Science and Research Institute                                                                    
     to the Port  Moller Test Fishery. The  Port Moller Test                                                                    
     Fishery  is  used  to  generate  estimates  of  sockeye                                                                    
     salmon stock and  age composition and is  deemed a core                                                                    
     program by the Bristol  Bay Fisheries Collaborative, of                                                                    
     which the Department is a member.                                                                                          
                                                                                                                                
     The   subcommittee   Chair   recommends   a   technical                                                                    
     correction to  transfer this increment  from Commercial                                                                    
     Fisheries/Westward   Region  Fisheries   Management  to                                                                    
     Commercial    Fisheries/Central     Region    Fisheries                                                                    
     Management   in  the   full   Finance  Committee.   The                                                                    
     correction would change nothing  about the intended use                                                                    
     of this funding.                                                                                                           
                                                                                                                                
     - Replace  $1,160.3 in CFEC receipt  authority with UGF                                                                    
     in   the   Commercial   Fisheries/Statewide   Fisheries                                                                    
     Management allocation.  This eliminates  the Commercial                                                                    
     Fisheries   Entry   Commission's   (CFEC's)   projected                                                                    
     negative carryforward balance.                                                                                             
                                                                                                                                
     -  Add $532.9  in CFEC  receipt authority  to the  CFEC                                                                    
     Appropriation  to  fund   three  positions  related  to                                                                    
     records  reduction,  Bristol  Bay  permitting,  and  IT                                                                    
     modernization;   restore   the   services   budget   to                                                                    
     sustainable levels; and reclassify IT positions.                                                                           
     - Add  a $150.0 FY27-FY29  IncT to give  the Commercial                                                                    
     Fisheries Entry  Commission the CFEC  receipt authority                                                                    
     needed to fund its IT modernization project.                                                                               
                                                                                                                                
     -  Replace $682.8  CFEC receipt  authority with  UGF in                                                                    
     the statewide fisheries  management allocation to again                                                                    
     eliminate CFEC receipt overdraw.                                                                                           
                                                                                                                                
     - Replace $2,243.1  UGF with FED so  the hatcheries can                                                                    
     leverage in-kind contributions  from construction costs                                                                    
     for the use of Dingell-Johnson funds.                                                                                      
                                                                                                                                
     SUBCOMMITTEE AMENDMENTS                                                                                                    
                                                                                                                                
     The  Chair  received  no amendments  from  subcommittee                                                                    
     members in advance of the deadline.                                                                                        
                                                                                                                                
     ATTACHED REPORTS                                                                                                           
                                                                                                                                
     The   House  Finance   Budget   Subcommittee  for   the                                                                    
     Department  of  Fish  and  Game  adopted  the  attached                                                                    
     Budget  Action  Report   provided  by  the  Legislative                                                                    
     Finance Division.                                                                                                          
                                                                                                                                
Co-Chair Josephson asked whether item  7 might be amended to                                                                    
move  the  item from  the  Westward  Region to  the  Central                                                                    
Region.                                                                                                                         
                                                                                                                                
Mr. Miller  replied that an  amendment could be  offered and                                                                    
explained that  the original designation had  been an error.                                                                    
He clarified that the mistake  resulted from referencing the                                                                    
location  where  the study  was  conducted  rather than  the                                                                    
region  in which  the department  actually administered  the                                                                    
program.                                                                                                                        
                                                                                                                                
3:01:12 PM                                                                                                                    
                                                                                                                                
Representative Hannan  asked for more information  about the                                                                    
Commercial  Fisheries  Entry   Commission  (CFEC)  projected                                                                    
negative  carryforward balance.  She asked  for confirmation                                                                    
that  the  anticipated  negative   balance  applied  to  the                                                                    
current fiscal year.                                                                                                            
                                                                                                                                
Mr. Miller  responded that  he would  prefer to  consult LFD                                                                    
for  a precise  answer. He  understood that  at the  current                                                                    
rate of  overdraw, the  CFEC balance  was expected  to reach                                                                    
approximately negative $1.2 million  in the following fiscal                                                                    
year.                                                                                                                           
Representative Hannan  asked how  many staff  CFEC currently                                                                    
had, especially highly paid  positions such as commissioners                                                                    
and  the executive  director. She  asked if  there were  any                                                                    
vacant positions.                                                                                                               
                                                                                                                                
Mr.  Miller responded  that as  of February  of 2026,  there                                                                    
were five vacant positions within  CFEC. He relayed that the                                                                    
commission  had  already  folded   the  positions  into  its                                                                    
organizational structure.                                                                                                       
                                                                                                                                
Representative  Hannan   asked  how  the  agency   could  be                                                                    
accruing a  negative spend prediction despite  having a high                                                                    
number of vacancies, given its  relatively small total staff                                                                    
size. She  did not understand  how CFEC was spending  a high                                                                    
amount of money despite having five vacancies.                                                                                  
                                                                                                                                
Mr. Miller responded that the  deficit was driven by overall                                                                    
expenditures  exceeding  projected  receipt  revenue  rather                                                                    
than  staffing  levels  alone.  He  outlined  that  expected                                                                    
receipt revenue  for FY 27  was approximately  $6.5 million,                                                                    
while  combined expenditures  included about  $4.023 million                                                                    
for  CFEC  operations,   approximately  $3.579  million  for                                                                    
commercial  fisheries expenditures,  and about  $300,000 was                                                                    
expected   for   the    Fishermen's   Fund.   The   combined                                                                    
expenditures resulted  in a projected  negative carryforward                                                                    
balance of roughly $1.16 million.                                                                                               
                                                                                                                                
Representative  Hannan asked  whether  the subcommittee  had                                                                    
considered eliminating any of  the existing vacant positions                                                                    
within  CFEC,   separate  from   positions  related   to  IT                                                                    
modernization.                                                                                                                  
                                                                                                                                
Mr. Miller responded in the negative.                                                                                           
                                                                                                                                
HB  263  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
HB  265  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Josephson reviewed  the agenda  for the  following                                                                    
day's meetings.                                                                                                                 
                                                                                                                                

Document Name Date/Time Subjects
SB 64 CS WorkDraft HFIN R 030626 (2).pdf HFIN 3/9/2026 1:30:00 PM
SB 64
SB 64 CS Workdraft Compare v. R 030626 (1).pdf HFIN 3/9/2026 1:30:00 PM
SB 64
SB 64 Calista Corporation Letter of Support for 030625.pdf HFIN 3/9/2026 1:30:00 PM
SB 64
SB 64 Support Letter AFN.2.26.26.pdf HFIN 3/9/2026 1:30:00 PM
SB 64
SB 64 Public Testimony Rec'd by 030625_R.pdf HFIN 3/9/2026 1:30:00 PM
SB 64
SB 64 Sectional Analysis Version R.pdf HFIN 3/9/2026 1:30:00 PM
SB 64
SB 64HCSCS(FIN) NEW FN-OOG-DOE-03-06-26.pdf HFIN 3/9/2026 1:30:00 PM
SB 64
SB 64 HCS Summary of Changes U to R 030626.pdf HFIN 3/9/2026 1:30:00 PM
SB 64 Public Testimony rec'd by 030926 2026.pdf HFIN 3/9/2026 1:30:00 PM
SB 64
HB 263 HFIN Subcommittee Reports 030926pm.pdf HFIN 3/9/2026 1:30:00 PM
HB 263