Legislature(2023 - 2024)SENATE FINANCE 532
04/24/2024 01:30 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB268 | |
| HB270 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 268 | TELECONFERENCED | |
| += | HB 270 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
CS FOR HOUSE BILL NO. 268(FIN) am(brf sup maj fld)
"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 and
reappropriations; and providing for an effective
date."
1:38:53 PM
Co-Chair Hoffman MOVED to ADOPT proposed committee
substitute for CSHB 268(FIN), Work Draft 33-GH2492\O (Marx,
4/23/24).
Co-Chair Stedman OBJECTED for discussion.
1:39:28 PM
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, reviewed the
changes in Version O from the previously adopted Committee
Substitute (CS) and read from prepared testimony:
Department of Commerce, Community and Economic
Development
P4, L29-30 - $403.5 of UGF was added to the Alaska
Legal Services Corporation. When combined with the
$696.5 ($400 gf and 296.5 dgf) already in the budget
for this purpose, the total available to the ALSC is
$1.1 million.
P5, L17-21 - Relating to the Alaska Tourism Industry
Association - Replaced prior intent regarding Alaska
Seafood Marketing Institute and Alaska Tourism
Industry Association (ATIA) and now askes that $1.5
million appropriated to both ASMI and ATIA be used by
both recipients to cooperate and collaborate together
to efficiently deploy marketing dollars to jointly
support Alaska seafood and Alaska as a destination for
tourism.
P7, L11-16 - The Alaska Seafood Marketing Institute:
Increased federal receipt authority to $13 million,
and changed the transaction title to the existing $1o
million Unrestricted General Funds for ASMI to:
"General Funds to Match FY 23 Industry Contribution to
ASMI". Also changed from a one-time increment to a
base increment.
P7, LG-10 Replaced prior intent regarding ASMI and
Alaska Tourism Industry Association (ATIA) and now
askes that $1.5 million appropriated to both ASMI and
ATIA be used by both recipients to cooperate and
collaborate together to efficiently deploy marketing
dollars to jointly support Alaska seafood and Alaska
as a destination for tourism.
P7, L11-16 It is the intent of the legislature to
match the level of seafood industry contributions from
the most recent closed fiscal year in an amount not to
exceed $10 million and that the Alaska Seafood
Marketing Institute (ASMI) limit expenditures of
Statutory Designated Program Receipts to $10 million.
It is further the intent that ASMI manage available
resources to have between $10 to $15 million for non-
international marketing purposes available annually
for the fiscal years 2025 through 2027.
Department of Education and Early Development
P12, L11-13 - Add $155.3 thousand GF/Match and $35.8
thousand Federal authority to the Department of
Education -Alaska State Council on the Arts to fully
account for Federal authorization, and the related GF
match.
P12, L21 - Mt. Edgecumbe High School-Add $500,000
Unrestricted General Funds to provide round-trip
airfare allowing students to travel home for Christmas
over the winter break and return for the remainder of
the school year.
1:43:59 PM
Mr. Ecklund continued to address the changes in the CS:
Office of the Governor
P18, L32- New intent that asked for the implementation
of the Statewide Salary Survey and for a report by
December 20, 2024 from the Office of the Governor to
the Co-Chairs as to the steps taken to date and the
future actions needed to fully implement the
recommendations of the Salary Survey.
Various - renaming of allocations
Renamed state facilities rent appropriations and
allocations to State Facilities Maintenance and
Operations to better conform to state statute (AS
37.07.020 (e)).
Per AS 37.07.020(e), agencies are required to present
their operating budgets for facilities' maintenance
and operations separately from other budget items.
These have previously been put forward in their
respective budgets under the Facilities Rent
allocations. This Committee Substitute renames the
allocations to Facilities Maintenance and Operations
to better align with the statute and to gain a better
understanding of the budgetary needs required to
maintain the State's assets. Intent language is also
included to the Office of the Governor requesting
adherence to this statute.
Likewise, the CS includes similar intent language
asking for a report which would identify operating and
maintenance costs for non-state equipment fleet
vehicles, aircraft and vessels in attempt to better
understand the cost requirements for these assets and
the potential for their itemization in future budgets.
With the combination of renaming allocations and the
related intent, we are starting the process of better
identification of these maintenance and asset costs,
so improvements can be made in future budget analysis
and development.
P19, L15-20- New intent asking the executive branch
implement automation of processes and delivery of
state services where possible.
Department of Health
Formerly on P23, L16 - Delete $15 million UGF
increment added in Senate subcommittee for Department
of Health - Medicaid Services - Back Funding for
Federally Qualified Health Centers.
The transaction was removed to allow the Department of
Health to complete its review and audit process before
additional payments are considered.
Co-Chair Stedman explained that two days previously the
committee had a hearing on the subject of back funding for
federally qualified health centers. He noted that all
members had participated and there had been a substantial
lack of support for the item, so it was pulled from the
subcommittee report.
1:48:05 PM
Mr. Ecklund continued to address the changes to the CS:
P20, L18-19 Added Federal receipt authority of $3
million to support behavioral health programs. 4/9
GovAmd
P21, L14-Add $7.5 million UGF to Department of Health-
Public Assistance -Child Care Benefits for the Child
Care Grant Program to maintain the support provided to
the child care sector.
P22, L4-5 Utilize the Opioid Settlement to Combat the
Opioid Epidemic, a temporary increment FY25-FY40 of
$4.39 million of Statutory Designated Program
Receipts. This will allow the division to utilize the
opioid settlement funds over the life of the
settlement to offer a continuous grant program. 4/9
GovAmd
P22, L6 - Change transaction title in Department of
Health - Public Health - Epidemiology from "Support
Efforts to Eliminate Congenital Syphilis" to "Support
Efforts to Eliminate Tuberculosis and Congenital
Syphilis". Funding allocations remain as approved by
the subcommittee.
P23, L16-Add $7.5 million Fed and $7.5 million
GF/Match ($15 million total) to the Department of
Health - Medicaid Services -to increase reimbursement
rates for providers of home and community-based
services.
Included new Intent on P24, L 3-7 stating entities
receiving the increased reimbursement rates for
providing Home and Community Based Services pass along
a 5% wage increase to employees.
University of Alaska
P40, L4-8- New University intent language requesting
the return of the Childs Frick-Alaska Quaternary
Mammal Collection from the American Museum of Natural
History.
Supplemental Numbers Section
Department of Corrections
P60, L4-added $256.6 thousand of general funds for the
Goose Creek dental contract. 4/9 GovAmd
Alaska Court System
P63, L12-14 - Add $5,000 UGF (whole dollars) to
Judiciary Commission on Judicial Conduct
Commission on Judicial Conduct. This is an FY24
Supplemental that is needed to true-up a small
shortfall in this allocation (for travel).
1:51:26 PM
Mr. Ecklund addressed changes to the language section of
the bill:
Language Section Changes
Sec 14 Supplemental Department of Education and Early
Development
P68, L27 New section that amends a prior boarding
school stipend grant from $2.1 million to $4.03
million and extends the appropriation to ending June
30, 2025.
Sec 23 Supplemental Fund Transfer
P75, L13 This is a Governor's amendment that cleans
up fund accounting by transferring $5.4 million
dollars of berth fees from the ocean ranger program
account to the commercial passenger vessel
environmental compliance account.
Sec 26 Supplemental Special Appropriation
P76, L13-28 Amends the existing FY24 'waterfall'
language to state that revenue above $6.264 billion
will be appropriated at a capped amount of $143.3
million to the dividend fund for an energy relief
payment. Revenue beyond that, which had been
previously directed to the Constitutional Budget
Reserve Fund, will now be directed to general surplus
and be available for appropriation to the capital
budget or any other purpose.
Sec 36 Department of Education and Early Development
P84, L6-18 New subsection (h) provides a not to
exceed amount of $5.2 million from the general fund
for grant payments to school districts to provide
support, intervention, and services the students need
to reach reading proficiency by the end of grade
three. If the $5.2 million is not enough to fully fund
the distribution formula, then each grant will be
prorated equally.
P84, L19-22 New subsection (i) provides $7.3 million
from the general fund to be distributed as grants to
school districts for pupil transportation.
Sec 55 Repealer section
P104, L2 Added a new repeal of section 73 (q), ch.
1, FSSLA 2023. This is a repeal of an estimated to be
appropriation to the Alaska Capital Income Fund.
After the Annual Comprehensive Financial Report came
out, it was discovered that the appropriation was not
necessary.
Mr. Ecklund commented that the bill came over from the
other body with the repeal already included. He had spoken
with Legislative Legal Services the previous evening. There
had been an error in the bill title when it came over from
the other body, it had been deemed a clerical error, and a
title change was not needed.
Mr. Ecklund discussed a couple of different appropriations
in the legislation that dealt with true ups of fund
balances. He mentioned that there had been some difficulty
with the Legislative Branch and the Executive Branch in
coming up with consistent fund balances that each tracked.
He noted that Senator Kiehl had been chair of the
Department of Administration budget subcommittee and had
included funding for a new position to help with fund
tracking.
1:55:56 PM
Co-Chair Stedman WITHDREW his OBJECTION. There being NO
further OBJECTION, the CS for CSHB 268(FIN) was ADOPTED.
Co-Chair Stedman relayed that there were several amendments
to consider.
1:56:31 PM
Senator Olson MOVED to ADOPT Amendment 1 (copy on file):
DEPARTMENT: Legislature
APPROPRIATION: Legislative Council
ALLOCATION: Security Services
ADD: $100.0 UGF (1004)
EXPLANATION: Restore FY24 Existing Contracted
Security Services at the Anchorage Legislative Office
Building Vetoed by the Governor
FISCAL YEAR: FY24
DEPARTMENT: Legislature
APPROPRIATION: Legislative Council
ALLOCATION: Administrative Services
ADD: $235.0 GF/PR (DGF, 1005)
EXPLANATION: Increase Program Receipts for Assembly
Building Apartments Revenue for FY24
FISCAL YEAR: FY25
DEPARTMENT: Legislature
APPROPRIATION: Legislative Council
ALLOCATION: Integrated Technology Services
STRUCTURE: Rename allocation "Technology and
Information Services Division"
EXPLANATION: The subcommittee accepted the name
change but it was inadvertently not changed in the
bill. This amendment corrects the error.
FISCAL YEAR: FY25
DEPARTMENT: Commerce, Community and Economic
Development
APPROPRIATION: Alaska Seafood Marketing Institute
(ASMI)
ALLOCATION: Alaska Seafood Marketing Institute (ASMI)
Delete: IncOTI - $10,000.0 Unrestricted General Funds
(UGF)
EXPLANATION: The $10,000.0 UGF addition to ASMI was
changed from a one- time Increment (IncOTI) to and
Increment in this second committee substitute,
however, the original IncOTI was not removed so the
funding is duplicated. This amendment will remove the
duplicate funding and leave the $10,000.0 Increment.
Co-Chair Stedman OBJECTED for discussion. He asked Mr.
Ecklund to review the amendment.
Mr. Ecklund explained that Amendment 1 was a technical
amendment. The first three portions related to the
legislature's budget. The first item was $100,000 UGF to
restore the existing contractual security services for the
Anchorage Legislative Office Building. The second item was
$235,000 in general fund program receipts for increased
program receipt authority for the Assembly Building
apartments [located in Juneau]. The two items had been
inadvertently left out of the report and had been approved
by Legislative Council. The third item was renaming the
Technology and Information Services Division. The
subcommittee had adopted the item, but it was inadvertently
not changed in the reports. Lastly, there was an existing
appropriation of $10 million UGF to Alaska Seafood
Marketing Institute. The $10 million was inadvertently
doubled to $20 million in the CS; therefore, $10 million
needed to be removed from the CS.
Co-Chair Stedman WITHDREW the OBJECTION. There being NO
further OBJECTION, Amendment 1 was ADOPTED.
1:58:56 PM
Senator Merrick MOVED to ADOPT Amendment 2 (copy on file):
Agency: Commerce, Community & Econ Dev
Appropriation: Community and Regional Affairs
Allocation: Community & Regional Affairs
Transaction Details
Title: Grant to the Municipality of Anchorage:
th
State Match for East 56 Avenue Shelter
Section: Section 1
Type: IncOTI
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 4,000.0
Miscellaneous: 0.0
4,000.0
Positions
Permanent Full-Time: O
Permanent Part-Time: 0
Temporary: O
Funding (Amounts are in thousands)
1004 Gen Fund 4,000.0
Explanation
The former Solid Waste Services Administration
building at 1111 E 56th Ave. has been identified and
used as an emergency cold weather shelter in Anchorage
this year. The current operating costs of the shelter
are estimated to be $3.94 million for the total cost
between Oct 15th - April 30th. Winter funding is
covered by the Municipality.
The shelter is able to be used as a low-barrier
shelter between May 1 - Oct 15th. The cost for summer
operations is $3.6 million.
The Anchorage Assembly and Mayor have jointly
requested (Anchorage Resolution 2023-37) a $4 million
match from the Alaska Legislature to keep the shelter
open year-round. This request is also the priority for
the entire Anchorage Delegation.
Co-Chair Stedman OBJECTED for discussion.
Senator Merrick explained Amendment 2 with a prepared
statement:
This amendment represents the number one priority of
the bipartisan Anchorage legislative delegation, the
mayor, and the assembly. As the finance member for the
most populated area of our state I offer Amendment 2.
This amendment would fund a $4 million grant to
provide a 100 percent match for the Municipality of
Anchorage to operate a year-round shelter at the
former Solid Waste Services Administration Building on
th
East 56 Avenue in Midtown.
In 2023, the municipality funded the emergency cold
weather shelter at this location, which can house up
to 200 people. There are two other Anchorage shelters
slated to close in June, which together have the
capacity to house 374 homeless Alaskans, so the need
for this location to be kept open year-round is
crucial, especially since the last two summers
Anchorage saw over 1,000 homeless living outside,
which contributes to a significant burden and cost to
our public safety officers. Approximately 50 percent
of the homeless population in Anchorage are from
outside of the municipality, so this is a statewide
issue. I appreciate the support of the committee on
this important amendment.
Co-Chair Stedman noted the amendment was offered by
Senators Merrick, Stedman, and Bishop. He WITHDREW the
OBJECTION.
Co-Chair Olson referenced the current runoff election [in
Anchorage] and wondered if a possible administration change
would alter the plans for the homeless situation in the
Municipality of Anchorage.
Senator Merrick replied that she did not believe so. She
explained the legislative delegation from Anchorage, the
Anchorage Assembly, and the mayor had met and identified
the issue as a priority. She believed both mayoral
candidates supported the amendment.
There being NO further OBJECTION, Amendment 2 was ADOPTED.
2:01:17 PM
Senator Bishop MOVED to ADOPT Amendment 3 (copy on file):
Agency: Education & Early Dev
Appropriation: Education Support and Admin
Allocation: Student and School Achievement
Transaction Details
Title: Alaska Resource Education Grant Development
Initiatives (FY2025-FY2026) for Statewide Workforce
Section: Language
Type: MultiYr
Line Items (Amounts are in thousands)
Personal Services: 0.0
Travel: 0.0
Services: 0.0
Commodities: 0.0
Capital Outlay: 0.0
Grants: 1,000.0
Miscellaneous: 0.0
1,000.0
Positions
Permanent Full-Time: O
Permanent Part-Time: O
Temporary: 0
Funding (Amounts are in thousands)
1004 Gen Fund 1,000.0
Explanation
Governor's Amended FY25 budget requested FY25-FY26
Multi-Year of $1 million for Alaska Resource
Education. The item was not included in SCS1. ARE is a
501(c)3 non-profit organization with a mission to
educate students about Alaska's natural resources and
a vision to empower students to be informed stewards
of Alaska's natural resources.
Co-Chair Stedman OBJECTED for discussion.
Senator Bishop explained that Amendment 3 would reinsert
language proposed by the governor and provided two years of
funding for a total of $1 million. He relayed that the
increment was included in the House budget, but the funding
source was from Alaska Industrial Development and Export
Authority (AIDEA) receipts, which were for other items in
the budget.
Senator Bishop detailed that the Alaska Resource Education
(ARE) fund was a 501(c)(3) nonprofit with a mission to
educate students about Alaska's natural resources to be
informed stewards of the state's natural resources. Over
the past five years ARE had taught over 42,000 students
statewide in 53 communities. The organization educated
youth on careers in mining and students were mentored by
industry leaders about the different types of jobs in the
mining industry. He elaborated that workforce developments
were focused on keeping students working and living in
Alaska and ensuring they were aware of all of the high
paying jobs available. He added that ARE also taught
science, technology, education, and math (STEM) and other
curriculum to educate students on the importance of
Alaska's natural resources. The organization taught the
lifecycles of renewable energy including solar, wind,
hydropower, and biomass. The organization taught throughout
the Interior in a myriad of schools ranging from Allakaket
to Tok, Tetlin, and everything in between.
Senator Bishop thanked the committee for the latitude to
offer the amendment. He WITHDREW Amendment 3.
Co-Chair Stedman stated that the committee would take a
look at the issue and work it through the Conference
Committee process.
2:03:26 PM
Senator Kiehl MOVED to ADOPT Amendment 4 (copy on file):
DEPARTMENT: Department of Corrections
APPROPRIATION: Population Management
ALLOCATION: Pre-Trial Services
ADD: 568.11/A Rcpts (1007)
305.9 GF/Prgm (1005
DELETE: 874.0 UGF (1004)
EXPLANATION: The growth in pre-trial electronic
monitoring is unsustainable. The Corrections
subcommittee was especially concerned with the growing
use of electronic monitoring for defendants who are
assessed as "low risk" and should generally be
released on their own recognizance pending trial.
The subcommittee recommended the full Finance
Committee add interagency receipt authority and
program receipts, with an associated UGF decrement in
pre-trial electronic monitoring. The subcommittee
recommended the department use this authority to
collect half the cost of pre-trial electronic
monitoring for individuals who score low risk on the
pre-trial assessment tool from the party requesting
the electronic monitoring.
Co-Chair Stedman OBJECTED.
Senator Kiehl explained that Amendment 4 was based on a
subcommittee recommendation, and it came to the full
committee because it touched multiple departments. He
stated there was a growing and unsustainable problem with
pretrial electronic monitoring. The state spent about $4.5
million per year and the number continued to grow. He
highlighted that the cost applied to pretrial individuals
only and not individuals who had been convicted or
sentenced. One of the large cost drivers pertained to
individuals assessed as low risk. He stated that almost
none of the individuals ever needed an electronic monitor.
The subcommittee heard from the courts that the prosecutors
and defense attorneys always asked for electronic
monitoring whereas the defense attorneys said it was the
prosecutors and the judge. He stated that everyone had an
excuse for why their agency was not asking for the service.
He stated that the $874,000 UGF in the amendment reflected
a best estimate of how much money the state was wasting.
The amendment would take half the money of pretrial
electronic monitoring for low risk individuals.
Senator Kiehl stated that a couple of questions had come up
about the accuracy of the estimates. He planned to work on
the issue with the Department of Law, the Department of
Administration public defender and public advocate, and the
Alaska Court System. He assured the committee that the
topic would come back in a future year if the state could
not get an effective and efficient use of public safety
dollars. He WITHDREW Amendment 4.
2:05:57 PM
Senator Kiehl MOVED to ADOPT Amendment 5 (copy on file):
DEPARTMENT: Department of Health
APPROPRIATION: Medicaid Services
ALLOCATION: Medicaid Services
ADD: Insert 90.7 UGF (1004)
DELETE: Delete conditional language "No money
appropriated in this appropriation may be expended for
an abortion that is not a mandatory service required
under AS 47.07.030(a). The money appropriated for the
Department of Health may be expended only for
mandatory services required under Title XIX of the
Social Security Act, unless a U.S. Supreme Court
decision provides new precedent, and for optional
services offered by the state under the state plan for
medical assistance that has been approved by the
United State Department of Health and Human Services."
EXPLANATION: Fully fund Medicaid services by
restoring the amount decremented for abortions the
state is constitutionally required to fund. Also
deletes conditional language that attempts to put
unconstitutional limits on what health care services
the state funds through Medicaid.
Co-Chair Stedman OBJECTED for discussion.
Senator Kiehl explained that Amendment 5 would remove the
unconstitutional conditional language about abortion care
that Medicaid paid for, and it would restore the general
funds removed from the Department of Health budget in
Medicaid Services. He explained that the language had been
to court and the budget cut had been to court. He
emphasized that the language did not comply with Alaska's
constitution. Under the state's constitution, the right to
privacy and for a person to make their own decisions about
their medical care meant that if the state was going to
cover birth, it also had to cover a person's choice not to
have a baby. He noted that the issue had been before the
committee in the past and the committee had spent time
debating it the previous year. He had talked with the
members of the committee. As strongly as he felt about the
topic, he knew what the amendment outcome would be.
Senator Kiehl regretfully WITHDREW Amendment 5. He stated
he had offered the amendment to mark his objection for the
record.
Co-Chair Stedman stated that no other amendments had been
received.
2:07:43 PM
AT EASE
2:08:53 PM
RECONVENED
Co-Chair Stedman relayed that the committee would receive a
presentation from the Legislative Finance Division the
following day on the state's financial position. The
committee would still have the operating budget in case
there were any surprises or inadvertent situations that may
arise.
CSHB 268(FIN) am(brf sup maj fld) was HEARD and HELD in
committee for further consideration.
CSHB 270(FIN) was HEARD and HELD in committee for further
consideration.