Legislature(2023 - 2024)SENATE FINANCE 532
04/17/2024 01:30 PM Senate FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| 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
| + | TELECONFERENCED | ||
| += | HB 268 | TELECONFERENCED | |
| += | HB 270 | 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."
1:55:32 PM
Senator Merrick MOVED to ADOPT the committee substitute for
CSSB 268(FIN), Work Draft 33-GH2492\N (Marx, 4/16/24).
Co-Chair Stedman OBJECTED for discussion.
PETE ECKLUND, STAFF, SENATOR BERT STEDMAN, read from a
prepared statement:
The funding totals, rounded are:
Unrestricted General Funds: $5.96 billion
Designated General Funds: $991.3 million
Other State Funds: $1.73 billion
Federal Receipts: $3.53 billion
Total Funds: $12.21 billion
A couple of items added to the numbers section are
intent language in the Department of Education and
Early Development which is a repeat of intent language
in last year's budget requesting that school districts
twice annually submit various school fund balance
information to DEED.
a. Informational -Add intent language in Sec. 1: It is
the intent of the legislature that a school district
report to the Department twice annually, once by the
end of the count period set out in AS 14.17.500, and
on February 1, 2025, the balance of each of the
following funds: 1) school operating fund, 2) special
revenue funds, 3) capital project funds, 4) other
governmental funds. Additionally, each fund shall be
reported based on the following classifications: 1)
nonspendable fund balance, 2) restricted fund balance,
3) committed fund balance, 4) assigned fund balance,
5) unassigned balance. The Department shall provide
these reports and associated data in electronic format
to the Co- Chairs of Finance and the Legislative
Finance Division by December 20, 2024 and by February
15, 2025.
The CS also includes a recommendation from the
Department of Transportation and Public Facilities
subcommittee to include a $250 thousand Unrestricted
General Fund appropriation to the Inter-island Ferry
Authority for operations. That appropriation occurs in
the Department of Commerce, Community and Economic
Development.
Language section changes from the Governor's
introduced version of the Operating Budget, SB 186 to
HB 268 the Amended bill in front of you
1) Sec 28 The Alaska Industrial Development and
Export Authority.
Sec 28, P 76 L 11-19 Clarifies that the AIDEA FY25
dividend of $11 million includes capital match for the
Grid Resilience and Innovation Partnership (GRIP)
project.
Co-Chair Stedman asked for the reason for the
differentiation between the Language and Numbers sections.
Mr. Ecklund replied that the section was considered
"straight forward" appropriations that needed no further
explanation.
1:59:14 PM
Mr. Ecklund continued with his prepared statement:
2) Sec 29 The Alaska Permanent Fund
New subsection (c) on P 76, L 28-29. Appropriates the
full Percent of Market Value (5 percent) draw of
$3,657,263,378 from the Earnings Reserve Account to
the General Fund.
Insert new (d) P 76, L 30 - Pays a 75/25 split
Permanent Fund Dividend by appropriating $914,315,845
from the general fund to the dividend fund (AS
43.23.045(a)).
Modifies subsection (f) on P 77, L 5-8 Changes the
amount calculated under AS 37.12.145 (c) for inflation
proofing the principal of the Permanent Fund from an
estimated to be amount of $1.47 billion to not to
exceed $2 billion.
3) Sec. 30 Bonuses for Certain Employees of the
Executive Branch
Sec 30, P 77 L9 Authorizes legislative approval of
Letters of Agreement between the state and collective
bargaining units under 2 conditions: 1) within 30 days
of the Dept. of Administration entering into an LOA,
the Office of Management and Budget shall send a copy
of the LOA to the Legislative Finance Division (LFD)
and 2) in addition 0MB will send a copy of the cost
estimate to LFD.
0MB is also to produce two reports and send them to
the Legislative Finance Division which summarize all
payments made under the letters of agreement no later
than Feb. 1, 2025 (for the first half of the fiscal
year) and the second report no later than September
30, 2025 that summarize all payments in the second
half of the fiscal year.
4) Sec. 31 Department of Administration
Sec. 31 (g) P 78, L 26-29 Clarifies that the dollar
amount needed for actuarial cost analysis of
legislation residing in either Finance Committee will
be paid from the General Fund to the Dept. of
Administration for any actuarial analysis performed.
Sec 31 (h) P 78, L 30 ADDS an appropriation: The
balance of the abandoned motor vehicle fund (ETB
$11OK) is appropriated to the division of motor
vehicles to reimburse municipalities for the costs
associated with abandoned vehicles.
5) Sec. 32 Department of Commerce, Community, and
Economic Development
Sec. 32 (former subsection f) Deleted from the
language section and moved to the numbers section: A
$296,500 appropriation from the civil legal services
fund to the Alaska Legal Services Corporation. (this
makes the total appropriation for Alaska Legal
Services Corporation $695,500)
Sec 32 (i) P 80, L 19-23 $340 thousand of Statutory
Designated Program Receipts received by DCCED are
appropriated to the division of community and regional
affairs for natural hazard planning assistance.
Sec 32 U) P80, L24-27 $1o million from the General
Fund to pay for community assistance payments to bring
the total payment to communities in FY25 up to $30
million.
6) Sec. 33 Department of Education and Early
Development
Sec. 33 (d) P 81, L 18 A change extends by one fiscal
year language that provides for proceeds of the sale
of the Stratton building, owned by the Department of
Education and Early Development, are appropriated to
the Alaska state libraries, archives and museums
maintenance and operations for the fiscal years 25 AND
fiscal year 26.
2:05:03 PM
Mr. Ecklund continued with his prepared testimony:
Sec. 33 {f) P 81, L25 Adds a $11.9 million
unrestricted general fund appropriation to comply with
the fiscal year 22 maintenance of equity requirement
as prescribed by the federal Dept. of Education.
Anchorage School District $6.4 million Kenai
Peninsula Borough School District $5.5 million
Sec. 33 (g) P 82, L3-8 Estimated $174.7 million UGF
appropriation outside the Base Student Allocation
formula to be distributed to school districts as if it
were distributed in the same manner as the BSA. The
language provides that the total amount distributed to
districts is equivalent to a BSA of $6,640, an
additional $680 on top of current statute.
Deleted: $1 million UGF Governor's request for a grant
to Alaska Resource Education to expand statewide
workforce development initiatives.
7) Sec 34 Department of Fish and Game
Sec. 34 P 82, LS-12 Change a $300 thousand
appropriation of commercial fisheries entry commission
receipts to $450 thousand of CFEC receipts for
information technology upgrades and makes it effective
for fiscal years 25-27.
Sec 34, P82, L 23-26 ADD a new subsection (b) of
Statutory Designated Program Receipts for fisheries
disasters. This is intended to speed up the process of
getting disaster funds from the federal government to
those impacted by fishery disasters.
8) Sec 38 Department of Natural Resources
Deleted former subsection (d), estimated to be $20.5
million of federal receipts for fire suppression
activities and moved to the fire suppression
activities fund appropriation in section 44 (u).
9) Former language Sec 25 Department of Public
Safety
Deleted and moved from the language section to the
numbers section a $500 thousand UGF appropriation to
Troopers and a $300 thousand UGF appropriation to
Wildlife Troopers for law enforcement supplies and
equipment. These were modified from FY25-27 Multiyear
appropriations to One-Time increments.
10) Sec. 26. Department of Transportation and Public
Facilities
Sec 26, P84, L17-23 Added a new subsection (b) At the
recommendation of the DOTPF finance subcommittee, a
$20 million UGF 'back-stop' appropriation was added to
the Alaska Marine Highway System in the event that
less federal funds then anticipated are available for
AMHS operations.
11) Sec. 43. Federal and Other Program Receipts
Sec 43, P90, L25-29 Added a new subsection (e):
The language added prohibits the Alaska Gasline
Development Corporation from using the Revised Program
Legislative (RPL) process for additional (1) federal
receipts; or (2) statutory designated program
receipts.
12) Sec. 44. Fund Capitalization
Sec 44 (d) on P91, L17 Increased the appropriation to
the disaster relief fund from $5 million to $20.5
million to bring the fund balance to the average of
yearly disaster expenditures.
Sec 44 (m)(2) P92, L27-28 Modified the appropriation
for the UGF amount necessary to match federal receipts
for the Alaska clean water fund, from an estimated to
be amount to a not to exceed amount of $1,247,500.
Sec 44 (o)(2) P93, L9-10 Modified the appropriation
for the UGF amount necessary to match federal receipts
for the Alaska drinking water fund, from an estimated
to be amount to a not to exceed amount of $2,105,500.
Sec 44 (q) P93, L15-19 Modified a $991,300
appropriation to $1,189,600 of restorative justice
funds (the old PFD criminal funds) to the crime victim
compensation fund for the purposes of the crime victim
compensation fund. This was a Governor's amendment to
match the percentage use of the restorative justice
funds in the FY24 budget.
Sec 44 (t) P93, L26-30 Modified the community
assistance appropriation so that $50 million is
appropriated to the community assistance fund. $20
million from the general fund and $30 million from the
power cost equalization fund. The effect of this
subsection, when added to the $1O million community
assistance
The appropriation in section 32 is that $30 million
will be paid out to communities in FY25 and there will
be a $90 million fund balance at the end of FY25 so
$30 million will be available for the community
assistance payments in FY26 also.
Sec 44 deleted former subsection (u) which was a
$3,086,100 UGF appropriation to the Alaska liquefied
natural gas project fund.
Sec 44 new section (u) on P93, L31 This Committee
Substitute resurrects the use of the Fire Suppression
Activity Fund (AS 41.15.210). The CS removes fire
suppression numbers section appropriations and moves
those numbers section appropriations to the fire
suppression fund. By adding $35.1 million in UGF to
the $14.4 million UGF and $1.5 million of SDPR moved
from the numbers section, this appropriation brings
the state fire suppression activity funding to the
recent average yearly UGF spend on fire suppression.
Appropriations included in new subsection (u):
a. Federal receipts received for fire
suppression during the fiscal year ending June 30,
2025, estimated to be $20,500,000, are appropriated to
Fire Suppression Fund (AS 41.15.21 O) for fire
suppression activities for the fiscal year ending June
30, 2025.
b. Statutory Designated Program Receipts: $1,500,000
c. Unrestricted General Funds: $49,341,000
2:13:22 PM
Mr. Ecklund continued with his prepared testimony:
13) Sec. 45. Fund Transfers
Sec 45 modify subsection (m) on P 96, L 16 Change the
amount of UGF going to the renewable energy fund from
$5,000,000 to $4,000,000, to match the capital budget.
Sec 45 new subsection {o) on P 96, L 22-24 The amount
received by the Alaska Commission on Postsecondary
Education as repayment for WWAMI medical education
program loans, estimated to be $575,000, is
appropriated to the Alaska higher education investment
fund (AS 37.14.750).
14) Sec. 47. Salary and Benefit Adjustments
Sec 47 P 97, L15 Delete", including monetary terms of
any letters of agreement". The language conflicts with
the CS added LOA and is therefore deleted.
15) Former Sec. 38. CONSTITUTIONAL BUDGET RESERVE
FUND
a. Delete the entire CBR section
16) New Section 51. Special Appropriations
Sec 51, P 101, L3-18 is new 'waterfall' language
addressing any potential surplus revenue in FY25.
The Spring Revenue forecast equaled $6,448,500,000
Unrestricted General Funds at an average annual price
of $78 per barrel of oil. That amount, plus $90
million of additional revenue, which is roughly
equivalent to an average annual price increase of $2
per barrel (or an annual price of $80 per barrel)
equals $6,538,500,000 of UGF revenue.
The next tranche of UGF revenue above $6,538,500,000
(or roughly $80 per barrel), up to $645 million, will
be split 50/50 between an FY26 energy rebate and the
Statutory Budget Reserve (SBR). If the $645 million of
additional revenue is realized, that would add $500
dollars as an energy rebate to next year's dividend
check, and
$322.5 million would be added to the SBR.
Any UGF revenue above $71,183,500,000 would be
appropriated to the Constitutional Budget Reserve, or
CBR.
17) Sec. 52. Repeal Section
Sec 52 P 101, L 19 This repeals section 55(b), ch. 1,
FSSLA 2023.
(The AIDEA Dividend informational section from last
year about transferring the road)
18) Sec. 54. Retroactivity
Sec. 54 P 101, L23 Added a retroactivity clause in
case of failure of the effective date clause.
19) Sec. 55. Contingencies
Sec. 55, P 102, L 3 Adds conditional language to the
legislative approval of Letters of Agreement
contingent upon 0MB: 1) within 30 days of the Dept. of
Administration entering into an LOA the Office of
Management and Budget shall send a copy of the LOA to
the Legislative Finance Division, and 2) in addition
to a copy of the cost estimate.
2:19:01 PM
Co-Chair Stedman WITHDREW their objection. There being to
further objection, it was so ordered.
2:20:59 PM
ROSE FOLEY, STAFF, SENATOR BERT STEDMAN, explained the
supplemental items within the committee substitute.
2:25:53 PM
Senator Wilson wondered how the number of vehicles were
included in the junk vehicle removal portion.
Ms. Foley agreed to provide that information.
CS FOR HOUSE BILL NO. 270(FIN)
"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."
2:26:34 PM
Senator Wilson MOVED to ADOPT the committee substitute for
CSSB 270(FIN), Work Draft 33-GH2490\H (Marx, 4/16/24).
Co-Chair Stedman OBJECTED for discussion.
ROSE FOLEY, STAFF, SENATOR BERT STEDMAN, explained the
committee substitute.
Co-Chair Stedman WITHDREW their objection. There being to
further objection, it was so ordered.
CSHB 268(FIN) was HEARD and HELD in committee for further
consideration.
CSHB 270(FIN) was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 268 CS1 SCS CSHB 268(FIN) version N.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 268 |
| HB 268 HB 270 041724 SCS1 Agency Summary - All Funds -B.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 268 HB 270 |
| HB 268 HB 270 041724 SCS1 Agency Summary - UGF Only - C.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 268 HB 270 |
| HB 268 HB 270 041724 SCS1 Statewide Totals - All Funds - A.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 268 HB 270 |
| HB 268 HB 270 041724 SCS1Sup Agency Summary - All Funds - E.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 268 HB 270 |
| HB 268 HB 270 041724 SCS1Sup Agency Summary - UGF Only - F.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 268 HB 270 |
| HB 268 HB 270 041724 SCS1Sup Statewide Totals - All Funds - D.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 268 HB 270 |
| HB 270 MH CS1 SCS CSHB 270(FIN) version H.pdf |
SFIN 4/17/2024 1:30:00 PM |
HB 270 |
| 041724 Pete Ecklund Testimony.pdf |
SFIN 4/17/2024 1:30:00 PM |