Legislature(2023 - 2024)SENATE FINANCE 532
04/18/2023 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB41 || SB54 | |
| SB29 | |
| SB87 | |
| SB104 | |
| SB107 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 54 | TELECONFERENCED | |
| += | SB 54 | TELECONFERENCED | |
| += | SB 41 | TELECONFERENCED | |
| += | SB 29 | TELECONFERENCED | |
| += | SB 87 | TELECONFERENCED | |
| += | SB 104 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 107 | TELECONFERENCED | |
SENATE BILL NO. 41
"An Act making appropriations, including capital
appropriations and other appropriations; making
supplemental appropriations; making appropriations to
capitalize funds; and providing for an effective
date."
SENATE BILL NO. 54
"An Act making supplemental appropriations,
reappropriations, and other appropriations; amending
appropriations; capitalizing funds; and providing for
an effective date."
9:04:21 AM
PALOMA HARBOUR, FISCAL MANAGEMENT PRACTICES ANALYST, OFFICE
OF MANAGEMENT AND BUDGET, OFFICE OF THE GOVERNOR, discussed
the presentation, "State of Alaska, Office of Management
and Budget, Supplemental Budget SB54, Senate Finance
Committee; April 18, 2023" (copy on file). She pointed to
slide 2, "FY2023 Supplemental Budget Overview."
Co-Chair Stedman queried the total number.
Ms. Harbour replied that the total supplemental number for
both operating and capital was $113.3 million in UGF; $50.6
million in DFG; $63.8 million other state funds; $125.8
million in federal funds; which totaled around $353.5
million.
Co-Chair Olson wondered how close oil was to the projection
of $87.50 per barrel.
Ms. Harbour replied that as of April 10, 2023 the actual
forecast was $83.55 per barrel. She explained that the
price of oil exceeded that amount over the last eight days.
Co-Chair Stedman queried the number of deficit in oil price
projection for 2023.
Ms. Harbour agreed to provide that information.
Ms. Harbour looked at slide 3, "Operating Supps Department
Summary." She noted that the large requests were the fire
supplementals, Department of Corrections (DOC), Department
of Public Safety (DPS), and University of Alaska (UA)
bargaining unit increases. She noted that the highest
request was $3.7 million for judgments and settlements.
Ms. Harbour pointed to slide 4, "Capital Supps Department
Summary." She outlined the specific requests in the capital
budget supplemental.
Co-Chair Hoffman queried the reason for the switch from
general funds to designated general funds for UA.
Ms. Harbour replied that it was mostly related to receipt
authority.
Co-Chair Hoffman queried the specific project.
Ms. Harbour replied that the project was listed in the
backup details.
Ms. Harbour addressed slide 5, "Senate Finance Question
Responses":
Senator Wilson asked about FY2022 Fire
Suppression/Preparedness activity and why there
appears to be a lapse.
There appears to be a UGF lapse in FY2022 Fire
Suppression Activity, due to the $15 million in ARPA
revenue replacement supplemental funding that was able
to be utilized.
Senator Bishop asked how much of the FY2023 fire
suppression supplemental is remaining for fires.
The supplemental submitted January 31st, was
insufficient to cover spring fires. The supplemental
budget amendments submitted February 14th, include the
last $1.2 million needed to cover fires from Summer
and Fall of 2022, as well as an additional $6.8
million for anticipated Spring 2023 fire activity.
9:10:38 AM
Ms. Harbour pointed to slide 6, "Senate Finance Question
Responses (Dollars in thousands)":
Senator Hoffman asked about the Department of
Correction's plan for managing situations where a
correctional facility is over capacity.
The Department of Corrections has recently taken
proactive measures to ensure that correctional
facilities do not remain overcrowded. Capacity levels
are checked daily and as numbers rise at intake
facilities, the Classification Unit, Central
Transportation Unit, Facility Superintendents, and
Institutional Probation Officers work together to
develop a plan to move offenders to remain below
capacity.
Senator Hoffman asked about the Department of
Correction's plan for managing situations where a
correctional facility is over capacity.
The Department of Corrections is using emergency
contract workers to cover various work such as food
services, maintenance, medical, mental health and
education/programs where needed. The department is
also using on-call non-permanent positions for
medical, mental health, and administrative vacancies.
These efforts provide coverage while recruiting for
permanent classified positions.
Ms. Harbour addressed slide 7, "Senate Finance Question
Responses (Dollars in thousands)":
Senator Stedman asked for more information related to
the increased utility costs within the Department of
Fish and Game as it relates to fuel needs for
hatcheries.
• Hatchery utility costs have risen over the past two
years due to the volatility in fuel oil and natural
gas prices in the Fairbanks markets. For example,
rates increased at the Ruth Burnett Sport Fish
Hatchery (RBSFH) for natural gas, fuel oil and
electricity 4.8 percent, 142.4 percent and 50 percent
respectively, between FY2020 and FY2022. For
perspective, in FY2022, annual consumption rates were
207,495 CCF of natural gas, 34,700 gallons of fuel
oil, and 1,485,840 KWH of electricitythis is
substantial consumption, so even small increases in
utility rates can have a large impact on cost let
alone what has occurred.
• In comparison, William Jack Hernandez Sport Fish
Hatchery (WJHSFH) operates on electricity and natural
gas. Prices have been stable in the Anchorage market.
The FY2023 allocation for utilities to this facility
of $880K reflects a $50K reduction from the FY2022
level of $931K to assist in covering the RBHSFH FY2023
increase.
• Legislative authority appropriated to the new
Anchorage and Fairbanks Hatcheries RDU in FY2023 is
slightly less than the FY2022 level without any
allowance to account for the higher utility/fuel
costs.
• Efforts are underway with the Department of
Transportation and Public Facilities (DOT and PF) to
conduct energy audits that hope to improve
efficiencies at these facilities and translate into
cost saving.
Ms. Harbour pointed to slide 8, "Senate Finance Question
Responses (Dollars in thousands)":
Senator Kiehl asked about the methodology behind
deciding which parks to re-open, and whether or not
there's a prioritized list.
The Division of Parks and Outdoor Recreation (DPOR)
does not maintain a list or methodology to reopen
parks because they are open to the public unless there
is a reason to close. When situations arise that
necessitate a temporary closure of a state park unit,
DPOR works quickly to remedy and address those issues
to reopen public access to outdoor recreation
opportunities.
A park unit may have a gate closed during the winter
months due to management decisions or budget
limitations. Gates are closed to many campgrounds in
the wintertime across the state due to lack of ability
to plow and staff the unit. Many of these areas are
converted into wintertime recreational opportunities
including groomed ski trails. The division also
maintains management control and the ability to limit
specific recreational uses within each.
Ms. Harbour pointed to slide 9, "Senate Finance Question
Responses (Dollars in thousands)":
Senator Olson asked for additional details regarding
the Advanced Air Mobility project.
The Advanced Air Mobility (AAM) Infrastructure study
will result in a report that will inform Alaska's
build out of NextGen technology to improve aviation
safety and reliability. The study will include an
inventory of all existing state, public, federal, and
military infrastructure assets and a gap analysis that
highlights needs for the full implementation of AAM.
Alaska is the most dangerous place to fly according to
the FAA. The AAM is going to look at the current
infrastructure and lack of infrastructure needed to
keep our airspace safe. This study will highlight what
we do have, what we don't have and some potential
solutions. There's a lot of opportunities in front of
Alaska to capture federal funding that can be utilized
to improve the safety of Alaska's airspace. This study
is exploring solutions that fit within current federal
funding streams but will also highlight the needs that
fall outside of current or conventional funding.
Senator Bishop queried the person available from the
Department of Transportation and Public Facilities
(DOT/PF).
Ms. Harbour replied that Mr. Pannone was online from
DOT/PF.
Ms. Harbour highlighted slide 10, "Senate Finance Question
Responses (Dollars in thousands)":
Senator Hoffman requested confirmation regarding
whether or not there are shortages for ice roads that
need to be addressed.
Northern Region (NR) has $250.0 in their budget for
ice roads. They received an increment of $50.0 in
FY2013 for the ice road to Kiana (TORA with Northwest
Arctic Borough (NWAB)) and $200.0 in FY2023 (Tanana,
Rampart, and NWAB). To the best of NR's knowledge
there are no additional needs or identified shortages
for ice roads.
In Alaska's Statewide Transportation Improvement
Program (STIP), there is $2 million in federal funding
for Ice Roads and Seasonal Roads Maintenance Program.
The Department of Transportation established a Safe
Ice Roads for Alaska (SIRA) Program for communities to
competitively access funding for ice roads. This
funding has been awarded to communities and the Native
Village of Napaimute received just under $500.0 for
over 200 miles.
Ms. Harbour looked at Attachment 1 and Attachment 2 (copies
on file).
Co-Chair Stedman asked for the details of the attachments.
Ms. Harbour looked at Attachment 1.
9:15:10 AM
Co-Chair Stedman requested that the highlights be addressed
on each item.
Ms. Harbour noted that fire supplemental.
Ms. Harbour noted that the Department of Administration
(DOA) were all related to one issue, which was lease
payments.
Ms. Harbour noted some cleanup items for bargaining unit
agreements.
Ms. Harbour noted the items related to the Department of
Education and Early Development (DEED).
Senator Bishop noted that electricity rates had increased
by 50 percent.
Ms. Harbour stated that page 9 included additional costs to
the Department of Fish and Game (DFG).
9:20:45 AM
Ms. Harbour noted the supplemental ask from DPS. She
continued to outline the details within the attachment.
Senator Bishop wondered whether the maintenance operator
wage issue had seen resolution.
9:24:15 AM
DOM PANNONE, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES, JUNEAU (via
teleconference), replied that the department submitted a
supplemental request for funding for the critical incentive
pay in January.
Senator Bishop wanted to ensure that the request was
expedited to ensure the integrity of the workforce.
Co-Chair Olson remarked on some damage to a jet engine from
the Nome Airport. He wanted to know the mission critical
status. He stressed that there was an individual component
that allowed for application for the mission critical
status.
Mr. Pannone agreed.
9:25:46 AM
Co-Chair Olson wondered whether there needed to be an
increase to the amount available for mission critical
status.
Mr. Pannone replied that a 30 percent increase was
effective when utilized as related to recruitment and
retention.
Ms. Harbour agreed.
Ms. Harbour looked at page 24, as related to health
insurance increases for the legislative branch.
9:29:17 AM
Co-Chair Stedman requested a brief overview of all totals.
Ms. Harbour replied that the total for operating
supplementals was $102.4 million in UGF, $20.6 million in
DGF, $15.2 million in other funds, and $115.2 in federal
funds. The total for operating supplementals was $253.5
million.
SB 41 was HEARD and HELD in committee for further
consideration.
SB 54 was HEARD and HELD in committee for further
consideration.
9:35:32 AM
AT EASE
9:40:52 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 54 FY2023_Cap_Supp_Summary_Spreadsheet_4-17-23.pdf |
SFIN 4/18/2023 9:00:00 AM |
SB 54 |
| SB 54 FY23CapSuppBackup.pdf |
SFIN 4/18/2023 9:00:00 AM |
SB 54 |
| SB 54 FY23OpSuppBackup.pdf |
SFIN 4/18/2023 9:00:00 AM |
SB 54 |
| SB 54 FY2023_Op_Supp_Summary_Spreadsheet_4-17-23.pdf |
SFIN 4/18/2023 9:00:00 AM |
SB 54 |
| SB 54 23.04.18 OMB Supplemental Budget Overview SFIN.pdf |
SFIN 4/18/2023 9:00:00 AM |
SB 54 |
| SB 104 DCCED DCRA 041523.pdf |
SFIN 4/18/2023 9:00:00 AM |
SB 104 |
| SB 29 Version R Summary of Changes.pdf |
HEDC 4/26/2024 8:00:00 AM SFIN 4/18/2023 9:00:00 AM |
SB 29 |
| SB 29 work draft version R.pdf |
HEDC 4/26/2024 8:00:00 AM SFIN 4/18/2023 9:00:00 AM |
SB 29 |