Legislature(2025 - 2026)ADAMS 519
05/06/2025 10:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB57 | |
| Amendments | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 57 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR SENATE BILL NO. 57(FIN)
"An Act making appropriations, including capital
appropriations and other appropriations; making
reappropriations; making appropriations to capitalize
funds; and providing for an effective date."
10:17:32 AM
^AMENDMENTS
Representative Bynum stated he would not currently offer
Amendments 1, 2, and 3.
Representative Stapp stated he would not currently offer
Amendment 4.
10:18:16 AM
Representative Allard MOVED to ADOPT Amendment 5 (copy on
file):
Department: University of Alaska
Existing Project Title: UAA Alaska Leaders Archives
Consortium Library Renovation
Delete: $1,000.0 UGF
Department: Commerce, Community and Economic
Development
Program: Grants to Municipalities (AS 37.05.315)
Project Title: Anchorage - Purchase and Establish
Eagle River Cemetery
Add: $1,000.0 UGF
Explanation: Removes $1,000,000 UGF from the UAA
Library Renovation for the Eagle River Cemetery
project. The Eagle River Cemetery is a higher priority
for the communities in and around Anchorage than the
library renovation for UAA.
Co-Chair Schrage OBJECTED for discussion.
Representative Allard explained that the amendment was a
straightforward transfer of $1 million in unrestricted
general funds (UGF) to establish the Eagle River Cemetery
(ERC). She noted that during the summer of 2024, the
Anchorage Memorial Park Cemetery (AMPC) had run out of
available plots for burials, except for those who chose
cremation. Several vacant plots along the cemetery's fence
line near wildlife areas were discovered in late 2024 and
early 2025, which temporarily created limited availability.
She stated that the plots would likely be filled within the
year due to continued demand. She explained that the only
remaining plots at AMPC were already reserved, and there
would be no additional burial plots available within the
Municipality of Anchorage by the summer of 2025.
Representative Allard shared that the ERC project had been
under development for approximately 11 years. She clarified
that the project involved transferring land trust property
for use as a cemetery. She emphasized that the land would
not be sold but would instead fall under the maintenance
and management of Eagle River Parks and Recreation. She
asserted that the $1 million would allow cemetery plots at
the proposed ERC to be made available to anyone in the
state, which was especially important for residents of
Anchorage who currently had no available burial options.
She explained that revenue from the sale of plots would
provide for maintenance of the cemetery and that no
additional state assistance would be required. She noted
that an Eagle River committee for the cemetery already had
a full plan in place and emphasized that the only need was
the one-time funding.
Representative Allard stressed that the concern was
pressing and expressed her desire to see the project move
forward. She recalled that Anchorage had previously
considered issuing a $10 million bond for the cemetery
project, but Eagle River had opted out. She stated that she
was a member of the military and could choose to be buried
at the Joint Base Elmendorf-Richardson or Arlington
National Cemetery, but many others did not have such
options.
10:21:23 AM
Co-Chair Schrage MAINTAINED the OBJECTION.
Co-Chair Schrage noted that while he appreciated the intent
and the inclusivity of the amendment, the state's fiscal
challenges and significant backlog of deferred maintenance
made the amendment difficult to support.
Representative Allard commented that the amendment did not
create new spending, but reallocated existing funds from
the library renovation project that already had federal
dollars and local grants backing it. She asserted that
ensuring sufficient burial plots for Alaskans was a
pressing priority.
10:22:06 AM
A roll call vote was taken on the MOTION to ADOPT Amendment
5.
IN FAVOR: Bynum, Tomaszewski, Allard, Stapp, Johnson
OPPOSED: Galvin, Hannan, Jimmie, Foster, Schrage, Josephson
The motion FAILED (5/6).
10:22:53 AM
Representative Tomaszewski stated he would not currently
offer Amendments 6 and 7.
Representative Johnson stated she would not currently offer
Amendments 8, 9, 10, and 11.
10:23:38 AM
AT EASE
11:03:00 AM
RECONVENED
Co-Chair Schrage indicated that he would entertain a motion
for the committee substitute (CS).
Co-Chair Foster MOVED to ADOPT the proposed committee
substitute for CSSB 57(FIN), Work Draft 34-GS1460\R (Walsh,
5/5/25) (copy on file).
Co-Chair Schrage OBJECTED for discussion. He invited his
staff to explain the changes in the CS.
11:03:46 AM
ERIC GUNDERSON, STAFF, REPRESENTATIVE CALVIN SCHRAGE,
reviewed the changes in the CS. He advised members that the
easiest way to follow along would be by using the document
entitled "Project Compare By Agency, House Structure" (copy
on file). He began on page 1 of the document. He explained
that the CS incorporated the FY 25 capital supplemental
items, added contingency language for capital costs related
to two bills, moved two reappropriations, and added
University of Alaska (UA) statutory designated program
receipt and federal receipt authority for the University of
Alaska Fairbanks' (UAF) Troth Yeddha' Indigenous Studies
Center (TYISC).
Mr. Gunderson outlined changes under the Department of
Commerce, Community, and Economic Development (DCCED). He
stated that all DCEED items were supplemental items. The
first item was administrative systems updates for the
Alaska Energy Authority (AEA), totaling $628,700. The next
was the Alaska Oil and Gas Conservation Commission (AOGCC)
Orphaned Well Formula Grants, which amounted to $25 million
in federal receipts. The following item was for Orphaned
Well Performance Grants within AOGCC, totaling $40 million
in federal receipts. The next item was for Phase I of
AOGCC's Risk-Based Data Management Systems Upgrade, which
was funded at just under $1.9 million in AOGCC receipts and
classified as designated general funds (DGF).
Mr. Gunderson stated that the Blood Bank of Alaska Blood
Donor Testing Laboratory project would receive $500,000 in
general funds. The last DCCED project was leased warehouse
repairs and improvements for AEA, totaling $100,000 in
energy technology funds.
Mr. Gunderson explained that the fiscal notes were
contingent upon the passage of bills that were
substantially similar to legislation that had passed during
the prior session. He noted that there were few bills with
capital costs that had advanced in the process. He had
consulted the Legislative Finance Division (LFD) and the
Senate to identify any bills with capital costs. The first
bill he identified was SB 92, which included $500,000 in
capital costs under the Department of Revenue (DOR). The
second was the purchase of non-voting preferred shares
issued by the Commercial Fishing and Agricultural Bank
(CFAB) using the Capstone Avionics Fund, which was located
under DCCED.
11:07:10 AM
Representative Johnson asked whether it was common practice
to call out bills by title or number when appropriations
were added. She noted that fiscal notes were typically
attached at the end of the conference committee process.
Co-Chair Schrage responded that there were multiple ways to
approach the process.
Representative Hannan noted that she was unable to find the
first fiscal note for DOR in the Project Compare by Agency
document. She asked Mr. Gunderson to identify where it was
located in the bill.
Mr. Gunderson indicated that it would take a moment to
locate it.
11:08:15 AM
AT EASE
11:08:47 AM
RECONVENED
Mr. Gunderson stated that the section related to the fiscal
note was on page 57 of the bill, Section 24, under
contingency language.
Mr. Gunderson directed attention to page 3 of the project
compare document, beginning with the Office of the
Governor. He explained that there was $342,272 for election
security grants under the Help America Vote Act, which was
funded through federal awards by the Elections Assistance
Commission. He added that there was also reappropriation
language for the balance of the capital income fund under
the Office of the Governor to support statewide deferred
maintenance, renovation, and repair for FY 25.
Mr. Gunderson proceeded to page 4 and addressed items under
the Department of Military and Veterans Affairs (DMVA). He
explained that the first item was $2.5 million in federal
receipts for flood mitigation in high hazard areas in the
Matanuska-Susitna (Mat-Su) Borough. He reported that there
was also a reduction of approximately $5.1 million in
federal receipts to repeal congressionally directed
spending for rockslide mitigation at Skagway's port, which
had been proposed by the governor's office. He relayed that
the final DMVA item was a scope change allowing funds
associated with the Interior Alaska Veterans Cemetery to be
used at its new site.
Mr. Gunderson moved to page 5 and the Department of Natural
Resources (DNR). He reported that the only request was for
the National Recreational Trails federal grant program and
totaled $600,000 in federal receipts.
Mr. Gunderson continued to page 6 and items under the
Department of Transportation and Public Facilities (DOT).
He explained that the Alaska Marine Highway System (AMHS)
vessel overhaul, annual certification, and shoreside
facilities project totaled $6.5 million in general funds.
He noted that the federal aid state match section showed
two reappropriations that had been removed: phase II of the
PalmerWasilla Highway improvements project and the Mat-Su
Fairview Loop Road reconstruction. He added that there was
also a $3 million addition for earthquake relief to cover
federally ineligible costs, which had been proposed by the
governor in the FY 25 supplemental budget.
11:11:34 AM
Representative Johnson asked if the National Recreational
Trails federal grant program on page 5 was intended as an
appropriation for the Alaska Long Trail or whether it was a
general trail appropriation.
Mr. Gunderson responded that the project description stated
that the program supported community organizations
statewide and leveraged a 10-to-1 federal match for trail
development and improvement projects. He explained that
grants were distributed proportionally among motorized,
non-motorized, and diversified trail needs assessed by the
Outdoor Recreational Trails Advisory Board. He noted that
remaining receipt authority from FY 25 was insufficient to
execute grant agreements between February 2025 and May
2025. He clarified that to his knowledge, the appropriation
was not directly tied to the Alaska Long Trail.
Mr. Gunderson continued to page 7 and explained that there
was one other change in the CS for UA. He relayed that the
TYISC at UAF was receiving an addition of $2 million in
federal receipts and $51 million in statutory designated
program receipts. He noted that the request came from the
university and that it planned to continue fundraising to
capture the statutory designated program receipts in order
to complete the project. He clarified that there was no UGF
cost associated with the addition.
Representative Hannan asked Mr. Gunderson for more
information about the repeal of congressionally directed
spending for the Project Rockslide Mitigation in Skagway on
page 4. She asked if the project had concluded and the
money was in excess, or if the money had not been awarded
by the federal government and was a "money shuffle."
Mr. Gunderson responded that he did not know but suggested
that LFD respond to the question. He stated his
understanding that it was essentially a cleanup item
related to hollow receipt authority.
MICHAEL PARTLOW, FISCAL ANALYST, LEGISLATIVE FINANCE
DIVISION, responded that he understood that the federal
reward had not been received and it was hollow authority.
11:14:47 AM
Representative Stapp asked for more information about the
scope change related to the Interior of Alaska Veterans
Cemetery (IAVC) item on page 4. He stated it seemed like an
increase in federal receipt authority because the state had
received an award from the federal government in December
of 2024. He asked for clarification.
Mr. Partlow responded that the item was a scope change to
allow a previous appropriation to be used at the new
location for IAVC. He clarified that the award of federal
receipt authority for the funding to build the cemetery was
a separate appropriation from the one shown in the
document. He noted that they were two separate items for
the same purpose. He explained that the scope had changed
because the proposed location for the cemetery had changed
multiple times. He noted that a previous appropriation had
limited the funds to a specific location, and the scope
change expanded the appropriation to allow use at the new
location where the cemetery would be built.
Representative Stapp asked where the language associated
with the scope change could be found and if the money for
the previous appropriation required further legislative
action to move it to the new location. He asked if changing
the scope in the language section of the bill was
sufficient.
Mr. Partlow responded that the scope change was located in
the language section of the bill and was the only action
needed to allow expenditure of the funds. He noted that he
did not recall the exact section number.
Co-Chair Schrage WITHDREW the OBJECTION. There being NO
further OBJECTION, Work Draft 34-GS1460\R was ADOPTED.
11:17:15 AM
Representative Johnson requested to make a comment.
Co-Chair Schrage stated that the working document was
adopted. He provided an opportunity for discussion.
Representative Johnson highlighted that there was a fiscal
note which related to the Hilcorp tax. She emphasized that
she would in no way support the bill if there were any
indication that it was connected to support for the Hilcorp
tax change.
CSSB 57(FIN) was HEARD and HELD in committee for further
consideration.
Co-Chair Schrage reviewed the agenda for the afternoon
meeting.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 57 HFIN Committee Amendments 1-11 2025.5.6 Final.pdf |
HFIN 5/6/2025 10:00:00 AM |
SB 57 |
| SB 57 HCS FIN WorkDraft v.R 050625.pdf |
HFIN 5/6/2025 10:00:00 AM |
SB 57 |
| SB 57 HCS1T to HCS2T ProjectCompareByAgency 5-5-25.pdf |
HFIN 5/6/2025 10:00:00 AM |
SB 57 |
| SB 57 HCS2T No MH Statewide Totals 5-5-25.pdf |
HFIN 5/6/2025 10:00:00 AM |
SB 57 |
| SB 57 2025 05 07 AkH&LA ATIA Letter.pdf |
HFIN 5/6/2025 10:00:00 AM |
SB 57 |