Legislature(2021 - 2022)SENATE FINANCE 532
04/11/2022 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB45 | |
| SB164 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 45 | TELECONFERENCED | |
| += | SB 164 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SENATE BILL NO. 164
"An Act making appropriations, including capital
appropriations, reappropriations, and other
appropriations; making supplemental appropriations;
and providing for an effective date."
9:24:20 AM
Co-Chair Bishop relayed that the committee would consider a
CS for SB 164, set an amendment deadline, and set the bill
aside.
Co-Chair Stedman MOVED to ADOPT proposed committee
substitute for SB 164, Work Draft 32-GS2436\B (Dunmire,
4/9/22).
Co-Chair Bishop OBJECTED for discussion.
9:25:02 AM
CODY GRUSSENDORF, STAFF, SENATOR CLICK BISHOP, gave an
overview of the information he would address, including a
Summary of Changes document and three reports from the
Legislative Finance Division (copy on file). He explained
that Report A showed each project proposed by the governor
and the structure of funding delineated by columns listing
the governor's supplementally-funded projects, FY 23
projects, the Senate CS total, and a column with comparison
of the totals. He explained that Report B had the same
column structure and showed the agency spending by
Unrestricted General Funds (UGF). Report C was the same but
showed total fund sources.
9:26:29 AM
Mr. Grussnedorf commented that the CS (Version E)
considered all projects proposed by the governor, including
the two supplemental bills, and the objective of the CS was
to find a baseline starting point for the committee's
consideration during the budget process. He addressed the
Summary of Changes document:
General Overview:
Version B incorporates capital requests by the
Governor in SB 165 and SB 176 supplemental bills.
Finance CS ver. B does not:
? add any new legislative projects
? increase funding to any projects
? include any legislative reappropriations
? include any GO Bond proposed projects
Finance CS ver. B Removes all Mental Health budget
capital items.
Finance CS ver. B Removes the following fund sources:
? Coronavirus Capital Project Funds (CCPF) projects
($64M)
? Coronavirus State and Local Fiscal Recovery Funds
(CSLFRF) ($72M)
Governor's budgets proposed $90.7 million of FY 22
Supplemental projects funded with unrestricted general
fund (UGF) dollars. Finance CS Ver. B moves all but
$3.1 million of those to FY 23. These projects are
highlighted below.
Spend Summary:
Governor's budgets including supplementals proposed to
spend a total of $249.1 million UGF.
Finance CS Ver. B including supplementals proposes to
spend $197.4 million UGF, a difference of $51.7
million. This is a 20.7% reduction.
Mr. Grussendorf thought it was notable that the total spend
for the proposed CS did not include the $14 million in
mental health capital projects, nor did it include the $75
million in proposed Infrastructure Investment and Jobs Act
(IIJA) spending in SB 241 [the supplemental appropriations
bill at the request of the governor]. The capital budget
would potentially include the projects. He continued to
address the Summary of Changes document:
Projects included in the FY 22 Supplemental section of
Finance CS ver. B:
? DCCED, AEA Electric Vehicle Infrastructure Plan
$1,500,000 UGF
? DOC, Suicide Prevention Barriers $750,000 UGF
? DOH, Office of Children's Services Lease Expansion
or Relocation $640,000 UGF $360,000 Fed
? DNR, National Historic Preservation Fund $200,000
UGF
? DCCED, Prince William Sound Science Center &
Technology Institute Facilities Replacement and
Associated Debt $5,950,000 EVOS
? OOG, Elections Security under the Help America Vote
Act $1,250,000 Elect. Fund
CSLFRF projects in Finance CS that are changed to UGF
fund source:
Page 3 Line 8 DCCED, Alaska Travel Industry
Association
$5,000,000 UGF
Page 5 Line 17 DOH, Division of Public Assistance E-
Forms and Online Noticing
$4,000,000 UGF matches $4,000,000 Fed funds
Page 5 Line 19 DOH, Division of Public Assistance
Eligibility System Replacement
$4,700,000 UGF matches $18,800,000 Fed funds
Page 7 Line 3 DNR, Statewide Park Sanitation Deferred
Maintenance and Upgrades $1,418,000 UGF
9:31:07 AM
Mr. Grussendorf continued to address the Summary of Changes
document:
Funding requests decreased in Finance CS:
Page 2 Line 25 DCCED, AEA- Strategic Plan for
Railbelt Assets decreased to $1,500,000
UGF. Original request was for $2,500,000 UGF
Page 7 Line 24 DPS, Mobile and Handheld Radio
Replacement decreased to $1,000,000
UGF. Original request was for $3,728,000 UGF
Governor's projects removed in Finance CS and
associated fund source:
? DOA, Azure Adoption to Cloud Migration $23,116,000
UGF
? DCCED, Voice of the Arctic $1,000,000 UGF
? DFG, Arctic Fisheries $1,000,000 UGF
$2,000,000 Fed
? DNR, Cook Inlet Petroleum Potential $1,200,000 UGF
? DEED, William N. Miller K-12 Memorial School,
Napakiak $22,112,000 UGF $32,784,000 REAA
? DOH, Information Technology Security Program
Assessment $1,900,000 UGF
? DOH, Health Record Infrastructure Improvements
$30,000,000 CCPF
? DNR, Eagle River Fire Crew Facility $13,856,000 CCPF
? UA, Student Information Technology Systems
$20,000,000 CCPF
? DCCED, City of Palmer Wastewater Treatment Plant
$6,900,000 CSLFRF
? DCCED, Alaska Mariculture Alliance- Grant Program
$25,000,000 CSLFRF
? DNR, Food Security Agriculture Incentive Grant
Program $25,000,000 CSLFRF
Mr. Grussendorf detailed that that the Coronavirus Capital
Project Fund (CCPF) projects that were removed were the
result of discussions with the Office of Management and
Budget (OMB) that indicated the Department of Treasury was
unlikely to accept the grants for the projects. He cited
ongoing discussions with OMB regarding how to put the
state's plan forward and what projects to include. The
Coronavirus State and Local Fiscal Recovery Fund (CSLFRF)
projects were removed and not changed to UGF funding.
9:33:27 AM
Senator Hoffman asked for more explanation regarding the
Napakiak school project.
Mr. Grussendorf understood that schools within the Regional
Educational Attendance Area (REAA) were funded through the
School Construction Grant list (via statute), which was how
the committee intended to fund the Napakiak School.
Senator Hoffman asked if the item had been fully funded in
the governor's request.
Mr. Grussendorf answered "yes."
Senator Wilson asked about the $136 million being removed
from CCPF and CSLRF funding. He asked about the intention
of the funding and whether it was to be used at a later
date.
Mr. Grussendorf explained that the $64 million of CCPF
funds had been authorized in the American Rescue Plan Act
(ARPA) and was originally intended for broadband.
Subsequently federal guidance was issued that opened up
additional eligibility that was very stringent. There were
currently no projects proposed to access the funds.
Senator Wilson asked about the deadline to request the
funding and wondered if the plan was to utilize the
amendment process to access the funds.
Co-Chair Bishop thought the deadline was September of 2022.
He answered affirmatively that the amendment process would
be utilized.
Senator Wilson asked if it was possible to get the criteria
information in order to utilize the funds.
Co-Chair Bishop understood that the criteria was that the
funding was for broadband projects.
Mr. Grussendorf stated that he had information on the
guidance for the CCPF and agreed to forward the
information. He cited the criteria for treasury to accept
the grants:
1. The project must be designed to directly enable
work, education, and health monitoring.
2. The project must address a critical need that
resulted from or was made apparent or exacerbated by
the COVID-19 public health emergency.
3. The project must address a critical need of the
community to be served by it.
9:36:34 AM
Co-Chair Stedman commented that it was early in the budget
process and the committee would be balancing fund sources
throughout. He mentioned the concern of the Napakiak School
and asserted that it was the committee's intent to get the
school funded in the current year. He discussed bond debt
reimbursement and REAA area funding that was linked to it.
He mentioned a balanced approach and picking up some
arrears. He expected discussions on the mechanics of
getting the school fully funded. He did not want the public
to conclude that the school was being removed from the
budget process and asserted that the committee was
considering fund sources.
Co-Chair Bishop stated the school would be funded through
statute.
Senator Wilson thought the previous speaker had stated that
the intent was to not have so many appropriation bills
"floating around." He asked if the intent was to combine
supplemental capital projects and new infrastructure
capital projects.
Co-Chair Bishop stated that the committee was following the
path to have one capital budget. He answered "yes."
Senator Wilson asked if the committee's intent was to look
for amendments that would cover all three sets of projects.
Co-Chair Bishop stated that there was currently one capital
budget with a small supplemental in FY 22. He asked Co-
Chair Stedman to comment.
Co-Chair Stedman reminded that it was just the beginning of
establishing a budget baseline and the approach was not
much different than how the committee was approaching the
operating budget, which provided clarity for the public. He
explained that generally speaking the legislature did not
have multiple appropriation bills, and there was normally a
consolidation of appropriation bills to minimize numbers.
He explained that the columns on the backup reports were to
provide clarity on the proposed projects.
Co-Chair Bishop WITHDREW his OBJECTION. There being NO
further OBJECTION, it was so ordered. The CS for SB 164 was
ADOPTED.
SB 164 was HEARD and HELD in committee for further
consideration.
Co-Chair Bishop relayed an amendment deadline of Thursday,
April 14 at 5 o'clock p.m.
9:40:28 AM
AT EASE
9:40:38 AM
RECONVENED
Co-Chair Bishop discussed the agenda for the afternoon.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 45 Work Draft ver. D 4.5.22.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 45 |
| SB 45 Explanation of Changes ver. O to D 4.5.22.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 45 |
| SB 45 Amendment #1 Wilson.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 45 |
| SB 164 ver. B_Explaination of Changes.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 164 |
| SB 164 Document C_SCS1 AgencySummary.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 164 |
| SB 164 Document A_SCS1 ProjectDetailByAgency.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 164 |
| SB 164 Document B_SCS1 AgencySummary UGF Only.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 164 |
| SB 164 work draft B.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 164 |
| SB 45 04-11-2022 Taxpayers Protection Alliance Testimony RE SB45.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 45 |
| SB 164 Public Testimony Packet 4.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 164 |
| SB 164 4.19.2022 Letter of Support to increase Capital Budget CSSB 164 - Senator Bishop.pdf |
SFIN 4/11/2022 9:00:00 AM |
SB 164 |