Legislature(2019 - 2020)ADAMS 519
02/28/2020 09:00 AM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB205 || HB206 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 205 | TELECONFERENCED | |
| += | HB 206 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 205
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; 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. 206
"An Act making appropriations for the operating and
capital expenses of the state's integrated
comprehensive mental health program; and providing for
an effective date."
9:08:29 AM
Co-Chair Johnston MOVED to report CSHB 205(FIN) out of
Committee with individual recommendations.
Vice-Chair Ortiz OBJECTED for discussion.
Co-Chair Foster invited his staff to the table to review
the changes in the committee substitute (CS).
9:09:21 AM
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,
reviewed the changes in the CS. The bill reflected all of
the governor's amendments and House Finance member's
amendments accepted by the committee. The House Finance CS
reflected the total FY 21 budget of $9,827,181,200 of all
funds. The total for agency operations was $9,029,586,200.
Statewide items totaled $797,595,000. The total of all
spend funding equaled the following totals:
Federal Funds: $2,872,441,600
Designated General Funds (DGF): $899,792,900
Other Funds: $1,603,421,600
Unrestricted General Funds (UGF): $4,451,525,100
Mr. Anderson continued that for agency operations of
statewide items the UGF spending was $305.2 million above
or a 7.4 percent increase from the FY 21 adjusted base. He
reported that within statewide items, the largest increases
were debt service totaling $76.6 million, a 66 percent
increase. The amount included the $55 million requested by
the governor for oil tax credit debt payments. Also, state
retirement grew by 12.5 percent or a $38.4 million
increase. The unrestricted general funds after considering
the governor's amendments and the House Finance members'
amendments, the UGF spend reflected an overall increase of
$193.4 million in agency operations from the original FY 21
adjusted base, a 5.2 percent increase. A large portion of
the increase still reflected the corrections made to
Medicaid funding since the adjusted base did not factor in
the supplemental additions the body approved earlier in the
current week. He relayed that when compared to the FY 20
management plan plus the supplemental budget that was
passed, the UGF spend for agency operations dropped to a
reduction in spending of $108 million or a 2.7 percent
reduction from the previous year's spend. He concluded that
the budget compared to the governor's amended budget was
currently up by $9.6 million reflecting a .2 percent
increase.
9:12:55 AM
Representative Sullivan-Leonard asked for an overview of
what would happen to the Permanent Fund monies in the
amount of $2.027 billion that were removed from the
governor's FY 21 amended budget. Mr. Anderson thought her
question should be directed to the legislature.
Co-Chair Foster responded that there were two Permanent
Fund bills being debated. He noted that the Permanent Fund
had not been placed into the operating budget because the
legislature did not know if there would be a different
split for the percent of market value (POMV).
Co-Chair Johnston noted there was only one bill with a
statutory change to the dividend and the POMV. The Rules
Committee bill had not been introduced.
Co-Chair Foster responded that presently the committee did
not have a number to plug in, therefore it was not
reflected in the operating budget.
Representative Carpenter asked if inflation proofing was
included in the bill. Co-Chair Foster relayed that in the
previous year the legislature included $641 million for
inflation proofing. He asked Mr. Anderson to cite the
amount for the budget being discussed.
Mr. Anderson confirmed that there was inflation proofing in
the budget. He reported the amount was slightly more than
$1 billion. He could be more specific but needed a moment
to find the number.
Co-Chair Foster indicated the amount would be in the
language section of the budget.
Mr. Anderson referred to page 53, starting in section 7,
line 13 which was the section for the Alaska Permanent
Fund. He started reading from line 22, subsection d:
(d) The amount calculated under AS 37.13.145(c), after
the appropriation made in (b) of this section,
estimated to be $1,055,600,000, is appropriated from
the earnings reserve account (AS 37.13.145) to the
principal of the Alaska permanent fund to offset the
effect of inflation on the principal of the Alaska
permanent fund for the fiscal year ending June
30,2021.
9:16:31 AM
Representative Carpenter asked for the inflation proofing
amount that was passed in budget for the prior year. Mr.
Anderson responded that it was approximately $970 million
or $973 million.
Co-Chair Foster initially amount of $900 million was in the
budget. However, the inflation number was calculated to be
was $641 million. Mr. Anderson concurred. Co-Chair Foster
offered to get clarification from LFD.
Representative Carpenter thought the legislature had put
$4 billion away in the previous year for inflation proofing
for FY 21 through FY 24. Co-Chair Foster confirmed that 4
billion was transferred. Intent language was also included
that indicated the money was for forward funding inflation
proofing. He thought Representative Carpenter was correct.
He continued that there were some folks from the Permanent
Fund that indicated they did not consider it to be the
case. However, it was the amount that was in the budget.
Representative Carpenter clarified that the legislature was
not including the additional 25 percent royalties that the
statute required.
Co-Chair Foster offered that he was talking about the post-
1979 fields. The money should be appropriated in the
budget. He asked Mr. Anderson where the language was
included in the bill.
Mr. Anderson clarified that the committee did not include
the extra 25 percent in the current budget. It was
currently out.
Vice-Chair Ortiz WITHDREW his OBJECTION.
9:19:25 AM
AT EASE
9:25:14 AM
RECONVENED
Co-Chair Foster clarified that there were changes to the CS
for HB 205 which Mr. Anderson had just reviewed. The work
draft was adopted, and the committee would move the CS out
of House Finance.
Co-Chair Johnston MOVED to report CSHB 205(FIN) out of
Committee with individual recommendations.
There being NO OBJECTION, it was so ordered.
CSHB 205(FIN) was REPORTED out of committee with six "do
pass" recommendations and four "amend" recommendations.
9:26:57 AM
Co-Chair Johnston MOVED to report CSHB 206(FIN) out of
Committee with individual recommendations.
There being NO OBJECTION, it was so ordered.
CSHB 206(FIN) was REPORTED out of committee with a "do
pass" recommendation.
9:28:13 AM
AT EASE
9:33:36 AM
RECONVENED
Co-Chair Foster indicated that the committee had a meeting
scheduled in the afternoon. He did not believe the meeting
would occur, but he was leaving it open in case Legislative
Legal needed to have any changes made. The committee would
be addressing bills for the remainder of the session and he
would be handing the gavel over to Co-Chair Johnston who
would be taking up legislation. He thanked his staff and
the committee staff for all of their hard work on the
operating and mental health budgets.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 205 HCS2 Agency Summary GF vK 022820 (2).pdf |
HFIN 2/28/2020 9:00:00 AM |
HB 205 |
| HB 205 HCS2 Agency Summary All FundsvK 022820 (1).pdf |
HFIN 2/28/2020 9:00:00 AM |
HB 205 |
| HB 205 HCS2 Agency Summary UGF vK 022820 (3).pdf |
HFIN 2/28/2020 9:00:00 AM |
HB 205 |
| HB 205 CS FIN vK 022820.pdf |
HFIN 2/28/2020 9:00:00 AM |
HB 205 |
| HB 206 CS FIN v S 022820.pdf |
HFIN 2/28/2020 9:00:00 AM |
HB 206 |