03/31/2025 09:00 AM Senate FINANCE

SENATE BILL NO. 57                                                                                                            
                                                                                                                                
     "An  Act   making  appropriations,   including  capital                                                                    
     appropriations   and   other   appropriations;   making                                                                    
     reappropriations;  making appropriations  to capitalize                                                                    
     funds; and providing for an effective date."                                                                               
                                                                                                                                
9:13:55 AM                                                                                                                    
                                                                                                                                
Senator Kiehl  MOVED to ADOPT proposed  committee substitute                                                                    
for SB 57, Work Draft 34-GS1460\I (Walsh, 3/27/25).                                                                             
                                                                                                                                
Co-Chair Stedman OBJECTED for discussion.                                                                                       
                                                                                                                                
9:14:54 AM                                                                                                                    
                                                                                                                                
DAVID  SCOTT, STAFF,  SENATOR  BERT  STEDMAN, addressed  the                                                                    
committee substitute,  which was a   pared-down, bare-bones,                                                                    
match-only    capital   budget.   He  explained   that   all                                                                    
Unrestricted  General Funds  (UGF)  that  were not  matching                                                                    
funds had been  removed. He elaborated that  in the simplest                                                                    
terms,  matching funds  were  state  dollars that  leveraged                                                                    
federal  dollars.   He  mentioned   examples  such   as  the                                                                    
Statewide  Transportation  Improvement Program  (STIP),  the                                                                    
Airport  Improvement Program  (AIP), and  rural ferry  funds                                                                    
for the Department of  Transportation and Public Facilities.                                                                    
He mentioned village safe water  and rural sanitation needs,                                                                    
for  which the  state received  federal funds.  He continued                                                                    
that  the Department  of  Commerce,  Community and  Economic                                                                    
Development  (DCCED) received  the Development  Block Grant,                                                                    
which he thought  was one of the states   largest matches at                                                                    
a ratio of ten federal dollars to one state dollar.                                                                             
                                                                                                                                
Mr.  Scott  mentioned  the Alaska  Energy  Authority  (AEA),                                                                    
which  received funding  for bulk  fuel  upgrades for  rural                                                                    
power  upgrades  and  grid resilience.  He  noted  that  the                                                                    
Alaska Housing  Finance Corporation (AHFC)  received federal                                                                    
funds for  weatherization and housing projects.  He used the                                                                    
example of  the Department of Military  and Veterans Affairs                                                                    
(DMVA), which  received federal  dollars for  maintenance of                                                                    
armories and  modernization of assets around  the state. The                                                                    
CS contained $173  million in state UGF  matching funds. The                                                                    
funding leveraged $2.355 billion  of federal funds and other                                                                    
funds for a  total $2.793 billion. He explained  that the CS                                                                    
was a starting  point for the committee, and  there would be                                                                    
updated versions forthcoming.                                                                                                   
                                                                                                                                
9:17:56 AM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman  understood  that all  the  projects  were                                                                    
submitted in the governors original budget proposal.                                                                            
                                                                                                                                
Mr. Scott relayed  that all projects that  were removed were                                                                    
in the governors  original submitted  budget, and there were                                                                    
zero legislative additions.                                                                                                     
                                                                                                                                
Co-Chair  Stedman asked  if all  the issues  in the  CS were                                                                    
submitted by the governor.                                                                                                      
                                                                                                                                
Mr. Scott answered "yes."                                                                                                       
                                                                                                                                
Co-Chair  Stedman affirmed  that there  were no  legislative                                                                    
additions in the CS.                                                                                                            
                                                                                                                                
Co-Chair  Stedman relayed  that  there would  be another  CS                                                                    
forthcoming in several days.                                                                                                    
                                                                                                                                
Co-Chair  Stedman WITHDREW  his  objection.  There being  NO                                                                    
OBJECTION, it was so ordered. The CS for SB 57 was ADOPTED.                                                                     
                                                                                                                                
Co-Chair  Stedman discussed  the  agenda  for the  following                                                                    
day.                                                                                                                            
                                                                                                                                
SB  57  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.