Legislature(2021 - 2022)ADAMS 519
02/23/2022 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB281 || HB282 | |
| Overview: Governor's Budget Amendments | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 281 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 281
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making reappropriations; 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. 282
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; making capital
appropriations and supplemental appropriations; and
providing for an effective date."
9:19:12 AM
^OVERVIEW: GOVERNOR'S BUDGET AMENDMENTS
9:19:15 AM
Co-Chair Foster asked Mr. Steininger to provide a brief
summary of governor's FY 23 operating budget amendment
items discussed the previous day.
NEIL STEININGER, DIRECTOR, OFFICE OF MANAGEMENT AND BUDGET,
OFFICE OF THE GOVERNOR, continued to review the governor's
budget amendments discussed the previous afternoon. He
summarized that the governor's amendments to the FY 23
operating budget totaled $27 million, including $14.8
million in unrestricted general funds (UGF). The cost was
primarily associated with bargaining unit cost of living
adjustments (COLA) for the Alaska Correctional Officers
Association (ACOA) and Labor Trades and Crafts (LTC) and a
$10 million initiative in the Office of Children's
Services, of which $7 million came from UGF.
9:21:42 AM
Mr. Steininger referenced a spreadsheet titled "FY2023
Capital Governor Amended," dated February 14, 2022 (copy on
file). He began with item 1 for the Kodiak Fire Station at
a cost of $15 million to address the existing "dilapidated"
fire station. The item was a project in the governor's
general obligation (GO) bond package added after the
December 15 budget release and included in the GO bond
bill. Item 2 was an update to the description for the
Nenana fire hall, another project in the GO bond package.
The description had been updated to include additional
detail and correct the name of the named recipient.
Representative Wool asked who the named recipient for the
Nenana fire station was.
Mr. Steininger answered, "The City of Nenana."
Mr. Steininger moved to item 3, an update to the
description associated with the Kenai River bluff
stabilization GO bond project. The description included
additional detail that came out during discussions of the
bond package in another committee. Item 4 was a description
update for the Seward freight dock expansion project to
correct some incorrect information. The project was also in
the GO bond package.
Representative Edgmon asked if the administration was
soliciting projects for the GO bond package. He reported
that a community in his district had received a call from
the administration asking what it wanted in terms of the GO
bond package.
Mr. Steininger replied affirmatively. He detailed that the
administration was continuing to work with stakeholders
around the state to identify whether there were other
projects (that could enhance support in communities for the
bond package) that may not have come to light in November
when the GO bond package had been developed.
Representative Edgmon highlighted that the [GO bond
package] bill was still under consideration [by the
legislature]. He remarked that should the bill go forward
there would be a lot of attention with some contention
because the bills were complicated from all different
angles, including the political aspect.
9:24:58 AM
Mr. Steininger moved to item 5, a change to the scope of
the Mariculture Incentive Grant Program included in the
December 15 budget. The scope change added clarity related
to program management. He explained the original scope put
forward on the $25 million grant program was somewhat light
on the operational details. He elaborated that since
December 15, the Department of Commerce, Community and
Economic Development had worked with the Alaska Mariculture
Alliance to refine some of the details describing how the
grants would go out.
Representative LeBon asked if the funding for the grant
program was UGF.
Mr. Steininger answered that the funding was from American
Rescue Plan Act (ARPA) discretionary funds.
Mr. Steininger moved to item 6, a new project for air
quality monitoring under the Department of Environmental
Conservation. He noted that the $650,000 federal grant was
not associated with the federal infrastructure bill.
Representative Johnson asked for a list of the 15
additional communities associated with item 6.
Mr. Steininger would follow up with the information in
writing.
9:26:41 AM
Mr. Steininger moved to item 7, an appropriation for an
existing Department of Health and Social Services (DHSS)
maintenance project. He explained that as the
administration was splitting the department into two
separate departments, it was identifying existing capital
projects and making certain to point them to the correct
department. The specific project included in item 7 had
been inadvertently missed in the governor's original
budget. Item 8 was $1.2 million UGF for the Department of
Natural Resources (DNR) for research into Cook Inlet
petroleum potential. The research would increase the
publicly available data for the region, which would
hopefully support the development of new finds. Item 9 was
a scope change for the Agriculture Incentive Grant Program.
The item added additional detail to the plan for DNR
associated with the way the program would be implemented.
The program was funded via ARPA discretionary relief funds
in the amount of $25 million. Item 10 was $2.5 million UGF
to the University of Alaska Fairbanks at the Alaska Center
for Energy and Power (ACEP) to look into emerging energy
opportunities including micronuclear research.
9:28:19 AM
Representative LeBon asked if item 6 related to enhanced
air quality monitoring was in response to any federal
requirements or expectations. He echoed the request made by
Representative Johnson to receive a list of the 15
communities affiliated with the item.
Mr. Steininger would follow up with a list of the
communities. He noted the grant was federal, but he did not
know whether it was in response to changes in federal
regulation.
Representative Wool referenced the increment related to
emerging energy under item 10. He remarked that the
university had mentioned the funding in the past. He
thought as presented in the past, the item was primarily
for micronuclear [research]. He highlighted that item 10
merely stated the research may include micronuclear. He
asked if ACEP would be allowed to decide where to apply the
funds and to choose the kind of energy technologies.
Mr. Steininger agreed. He stated the item was primarily
micronuclear research but gave the university the
flexibility to pursue a different opportunity if a better
one came along.
9:29:54 AM
Mr. Steininger moved to a spreadsheet titled "FY2022
Supplemental Governor Amended," dated February 14, 2022
(copy on file). He noted there was also a separate summary
to show detail about the supplemental appropriations and
where they were included. Items 1 through 4 were projects
recommended by the Exxon Valdez Oil Spill Trustee Council
paid for with the Exxon Valdez Oil Spill Settlement (EVOSS)
fund or the Exxon Valdez Oil Spill Trust. The items
included funding for an Alaska Sealife Center facility
project, an archeological repository, a museum and
archeological repository, and a Science Center and
Technology Institute facilities replacement for a total of
$22 million. Items 5 and 6 were adjustments to existing
projects in the FY 22 supplemental budget. The projects
were operated by the Department of Corrections (DOC) for
Hiland Mountain intake and for the Yukon Kuskokwim
Correctional Center recreational area. He detailed the
costs reflected downward adjustments in the cost of the
projects. He communicated the plan was for DOC to directly
manage the projects rather than going through the
Department of Transportation and Public Facilities (DOT).
He noted the change would save a bit of money by avoiding
the fee DOT was required to charge per federal rules. He
reported that DOC had the capability to manage the projects
in-house.
9:31:55 AM
Mr. Steininger advanced to item 7 related to the Alaska
Seafood Marketing Institute (ASMI) to extend the lapse date
of an existing appropriation that would otherwise expire at
the end of the current fiscal year. The change would enable
the appropriation to continue through the full term of the
federal funds. He added the item was federally funded
through ARPA. Item 8 was related to judgments, settlements,
and claims against the state in the amount of $876,600
through special appropriations.
Co-Chair Foster thought the other handouts likely explained
the information.
Mr. Steininger agreed. He referenced a memo from the
Department of Law to the co-chairs [dated February 16,
2022] (copy on file) explaining the issues surrounding the
settlement.
Co-Chair Foster requested additional detail.
Mr. Steininger explained that the Blanford v. Dunleavy
settlement totaled $495,000 against the state for two
different parties. He elaborated that the case was a
wrongful termination suit against the state.
Co-Chair Merrick asked if the $495,000 included attorney
fees for plaintiffs and defendants.
Mr. Steininger answered that the $495,000 included fees for
the plaintiffs only.
Co-Chair Merrick asked if there would be additional fees
for the defense attorneys.
Mr. Steininger answered that the cost for defense would be
borne within the Department of Law budget. He would follow
up with the information on cost.
Representative Josephson remarked that he had spent
considerable time reviewing the settlement documents and
talking to people about the case. He explained that the
American Civil Liberties Union (ACLU) had dismissed the
action with prejudice, which generally meant it was not
possible to come back and the only way to fund the
settlement was through the legislature. He stated that
rather than dismissing the action after being assured of
payment, the settlement spoke to the legislature
appropriating the money. He highlighted there was a dispute
about whether the legislature should do so. He noted a
statement had been received [by the plaintiffs] that the
state should not have done what it did by terminating the
two psychiatrists, but it was not called an admission.
Co-Chair Foster stated his understanding that if the
legislature did not pay, it was likely the plaintiffs would
not receive the agreed upon settlement.
Representative Josephson agreed.
9:36:05 AM
Co-Chair Foster asked if Mr. Steininger had additional
comments on the amendments.
Mr. Steininger answered that he did not. He thanked the
committee.
Co-Chair Foster reviewed the schedule for the afternoon
meeting.
HB 281 was HEARD and HELD in committee for further
consideration.
HB 282 was HEARD and HELD in committee for further
consideration.
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