Legislature(2023 - 2024)ADAMS 519
03/14/2023 09:00 AM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| Subcommittee Closeout Reports | |
| Department of Family and Community Services | |
| Department of Health | |
| University of Alaska | |
| Department of Commerce, Community and Economic Development | |
| Department of Corrections | |
| Department of Military and Veterans Affairs | |
| Governor | |
| Legislature | |
| Department of Revenue | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | HB 39 | TELECONFERENCED | |
| += | HB 41 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 39
"An Act making appropriations for the operating and
loan program expenses of state government and for
certain programs; capitalizing funds; amending
appropriations; making reappropriations; making
supplemental appropriations; 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. 41
"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."
^SUBCOMMITTEE CLOSEOUT REPORTS
9:02:22 AM
AT-EASE
9:03:16 AM
RECONVENED
^DEPARTMENT OF FAMILY AND COMMUNITY SERVICES
9:03:50 AM
Representative Stapp introduced himself.
BERNARD AOTO, STAFF, REPRESENTATIVE WILL STAPP, introduced
himself.
Representative Stapp began discussing the Department of
Family and Community Services (DFCS) subcommittee closeout
report. He read through the report and recommendations
(copy on file):
The House Finance Budget Subcommittee for the
Department of Family & Community Services held a total
of four meetings consisting of division overview
presentations and discussions over the Governor's
amended budget. Based on those considerations, the
Subcommittee has made no changes to the Governor's
operating budget and submits the following recommended
operating budget for FY24 to the House Finance
Committee:
RECOMMENDATIONS
Fund Source (dollars are in thousands)
Unrestricted General Funds (UGF) $246,207.8
Designated General Funds (DGF) $28,910.2
Other Funds $101,406.7
Federal Funds $82,491.8
Total $459,016.5
Compared to the FY24 Adjusted Base, the Subcommittee
recommendations represent an increase of $1,609.8
(0.7%) in UGF, $2,630.0 (10%) in DGF, $865.0 (0.9%) in
Other funds, and $88.2 (0.1 %) in Federal funds for a
total increase of $5,193.0 (1.1%) in all fund sources.
POSITIONS
Permanent Full-Time (PFT) 1854
Permanent Part-Time (PPT) 14
Temporary 62
Total 1930
Compared to the FY24 Adjusted Base, the Subcommittee
recommendations represent an increase of seven PFT
positions (0.4%) and one PPT position (7.7%) within
the Department.
BUDGET ACTION
The Subcommittee reviewed and discussed each of the
Governor's proposed transactions in detail. After
consideration, all items were adopted unchanged with
unanimous consent.
Highlights (dollars are in thousands):
• $1,250.0 (DGF) increment to support the
increase in Alaska Pioneer Home residents.
• $800.0 (UGF) increment to establish Competency
Restoration and Jail-Based Restoration Pilot
Programs for the Alaska Psychiatric Institute.
• $324.0 (UGF, Fed Rcpts, I/A Rcpts) increment to
allow the department to create a Complex
Placement Coordination (CPC) unit to assist in
placement options for high-needs, complex, and
hard-to-place individuals needing services.
• Modified conditioning language for carryforward
of program receipts to refer to the Department of
Family & Community Services instead of the now
defunct Department of Health & Social Services.
SUBCOMMITTEE AMENDMENTS
The Chair set an amendment deadline and welcomed
amendments from all members. There were no amendments
received.
ATTACHED REPORTS
The House Finance Budget Subcommittee for the
Department of Family & Community Services adopted the
attached reports:
• DFCS Agency Totals
• DFCS Transaction Compare: Adjusted Base + to
House Subcom
• DFCS Transaction Compare: FY24 Gov Amend to
House Subcom
• Wordage
Representative Stapp concluded the report and asked if
there were any questions. He reiterated that he had set a
previous amendment deadline and he received no amendments.
9:08:55 AM
Representative Hannan asked about the Alaska Psychiatric
Institute (API) jail-based restoration program of
competency. She inquired about the way in which the
Department of Corrections (DOC) was involved and where the
program would occur. She asked whether DOC's budget would
be impacted.
Representative Stapp deferred the question to his staff.
Mr. Aoto responded that the jail-based restoration program
was in collaboration with DOC. He relayed that API was
designing the program to support court ordered evaluations
for competency. He was not aware of the specific way in
which the program would be rolled out. There would be an
addition of five full-time positions and four part-time
positions to meet the program needs.
Representative Hannan asked for clarification on which
department would receive the new positions.
Mr. Aoto responded that the positions would be housed
within DFCS.
Representative Hannan wanted some additional information
from DFCS on the way in which the program would work in
conjunction with DOC. She did not think that jails were the
best location for competency restoration.
9:11:24 AM
AT-EASE
9:11:42 AM
RECONVENED
Co-Chair Johnson asked if Representative Hannan was
finished with her question.
Representative Hannan responded that she would likely
contact DOC itself to inquire further on the topic.
Representative Josephson noted that SB 53 and HB 80 focused
on a similar topic. There were fiscal notes for the bills
that suggested there was underspending in certain areas of
restoration and corrections. There was a report from Agnew
Beck Consulting that stated that API needed 25 more beds in
addition to the 10 beds it currently had. He reiterated
that there was underspending and that it was a complicated
issue.
^DEPARTMENT OF HEALTH
9:13:43 AM
Representative Stapp moved on to the Department of Health
(DOH) subcommittee closeout report. He read the report as
follows (copy on file):
The House Finance Budget Subcommittee for the
Department of Health held a total of nine meetings
consisting of division overview presentations and
discussions over the Governor's amended budget. Based
on those considerations, the Subcommittee has made a
few changes to the Governor's operating budget and
submits the following recommended operating budget for
FY24 to the House Finance Committee:
RECOMMENDATIONS
Fund Source (dollars are in thousands)
Unrestricted General Funds (UGF) $970,364.7
Designated General Funds (DGF) $54,276.5
Other Funds $98,055.6
Federal Funds $2,018,024.4
Total $3,140,721.2
Compared to the FY24 Adjusted Base, the Subcommittee
recommendations represent an increase of $48,319.5
(5.2%) in UGF, $569.1 (1.1%) in DGF, $6,915.0 (7.6%)
in Other funds, and $1,144.2 (0.1%) in Federal funds
for a total increase of $56,947.8 (1.8%) in all fund
sources.
POSITIONS
Permanent Full-Time (PFT) 1459
Permanent Part-Time (PPT) 5
Temporary 75
Total1 539
Compared to the FY24 Adjusted Base, the Subcommittee
recommendations represent an increase of sixteen PFT
positions (1.1%) and one Temporary position (1.4%)
within the Department.
BUDGET ACTION
The Subcommittee reviewed and discussed each of the
Governor's proposed transactions in detail. After
consideration, most of the items were adopted
unchanged with unanimous consent. There were several
changes made by the committee with unanimous consent.
Highlights (dollars are in thousands):
The following are items unchanged from the Governor's
proposal:
• $416.4 Restorative Justice Account increment to
increase statutory distribution of funding.
• $774.2 Fed Rcpts/GF Match increment to increase
recoveries and rebates with additional positions
in the Division of Health Care Services.
• $1,498.2 Gen Fund increment for the Division of
Senior & Disability Services Community Based
Grants and the Centers for Independent Living.
The following are items changed by the subcommittee:
• $2,600.0 Gen Fund procedural decrement to
extend Postpartum Medicaid Coverage due to the
introduction of HB 59 and its progression through
the legislative process.
• Adjustment of allocation sources for the
Behavioral Health Mental Health: Crisis Now
Continuum of Care Grants to correct error made in
FY23.
SUBCOMMITTEE AMENDMENTS
The Chair set an amendment deadline and welcomed
amendments from all members. There were nine
amendments received. The committee adopted two and
rejected seven amendments.
Adopted Amendments (dollars are in thousands):
• $3,295.0 Gen Fund decrement to Epidemiology
allocation's base budget and substituting with a
$3,295.0 Gen Fund temporary-increment (IncT).
• $705.0 Gen Fund decrement to Epidemiology
allocation's base budget and substituting with a
$705.0 Gen Fund temporary-increment (IncT).
ATTACHED REPORTS
The House Finance Budget Subcommittee for the
Department of Health adopted the attached reports:
• DOH Agency Totals
• DOH Transaction Compare: Adjusted Base + to
House Subcom
• DOH Transaction Compare: FY24 Gov Amend to
House Subcom
• Wordage
Representative Stapp concluded the report and asked if
there were any questions.
9:20:07 AM
Representative Hannan asked about the $1.4 million funding
request for staff for the Division of Senior & Disability
Services' (DSDS) community-based grants. She asked how the
increase in staff would impact the waitlist. She wanted
more information on the Crisis Now Continuum of Care Grants
(CNCCG) and thought it seemed as though there was less
money available in the current year. She understood there
were two temporary amendments related to treating
congenital syphilis and asked if state epidemiologists
thought the problem could be resolved in one fiscal year.
Representative Stapp asked if Representative Hannan's first
question was about the intellectual or developmental
disability (IDD) waitlist.
Representative Hannan responded in the affirmative.
Representative Stapp deferred the first question to his
staff.
Mr. Aoto responded that the $1.4 million would fund
services that were already provided to DSDS and would not
address the IDD wait list.
Representative Stapp noted that the second question related
to the administrative processes.
Mr. Aoto responded that the specific allocation source for
CNCCG was originally attributed to the wrong source. The
funding was originally given to the Prevention & Early
Intervention Grants when it should have been given to the
Behavioral Health Treatment and Recovery Grants. It would
not remove any funding but would ensure that the funding
was allocated correctly.
Representative Stapp recalled that the final question
related to epidemiology.
Mr. Aoto replied that when the department responded to the
amendments and noted that the only change was that the
department would have to request more funds every year
depending upon the success of the syphilis program. The
amendments would change it to a one-time increment from FY
24 through FY 30 to align with the governor's Healthy
Alaskans 2030 initiative.
Representative Hannan asked if it was a five-year
allocation.
Mr. Aoto responded that it was a temporary increment with
the understanding that the department would return to the
legislature from FY 24 through FY 30 depending upon the
success of the program.
Representative Josephson understood that the governor
thought that the Healthy Alaskans plan would have some
impact and that less money would be needed to combat the
syphilis crisis in seven years.
Representative Stapp responded that he would characterize
the situation the same way.
9:24:48 AM
Representative Galvin commented that the committee had
heard repeatedly from various departments that it was
incredibly difficult to hire experts in particular areas.
It was concerning to her that there was the presumption
that the state could hire an epidemiologist year after
year. She appreciated the thought but wondered if there was
any discussion around the difficulty of keeping the experts
in the state.
Mr. Aoto responded that in talks with the department, he
was informed that the epidemiology budget line was intended
to fund a long-term non-permanent position and that there
would be no additional positions requested with the
funding. The long-term non-permanent positions were
typically year-to-year.
Representative Cronk asked for an explanation on where the
majority of the federal funds originated.
Representative Stapp responded that the funds would
typically be sourced from the Federal Medical Assistance
Percentage (FMAP). The main increase in health-related
spending for the state was almost exclusively related to
the state's Medicaid program. The reasoning was that the
state was receiving an enhanced FMAP and many individuals
who refrained from scheduling medical procedures due to the
pandemic would begin to reschedule the procedures.
9:27:52 AM
AT-EASE
9:29:12 AM
RECONVENED
Mr. Aoto requested to hear from the Legislative Finance
Division (LFD).
ALEXEI PAINTER, DIRECTOR, LEGISLATIVE FINANCE DIVISION,
clarified that a temporary increment meant that the item
would remain in the base budget. The item would be included
in the adjusted budget each year for the length of time
specified. For the temporary increment for the syphilis
program, the monies would be included in the adjusted base
from FY 24 through FY 30 and would be removed in FY 31. A
temporary increment meant that the item would be included
in the adjusted base for the specified length of time but
also removed automatically at the end of the time period.
The legislature would have to make a policy determination
if it wanted to add the item back to the budget once the
time period had elapsed.
Co-Chair Johnson asked if the question had been
sufficiently answered.
Representative Hannan responded that her question had been
answered.
Co-Chair Johnson asked if the goal of budgetary
transparency within the newly formed DOH was accomplished.
Representative Stapp responded that it was more effective
to discuss each line item now that the department was
smaller. There were many interagency receipts transfers
remaining between DOH and DFCF which could be difficult,
but he thought that the problem would be sorted out in the
following year.
Representative Josephson commented that along with changing
the funding source, it appeared there was a $100,000
reduction in Crisis Now funding. He asked if his
understanding was correct.
Mr. Aoto deferred the question.
9:32:44 AM
VALERIE ROSE, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF LAW, asked for the question to be repeated.
Representative Josephson repeated the question.
Ms. Rose responded that the Crisis Now program did not have
a fund source change, but there was a change in one of the
allocations in which the program was located. As Mr. Aoto
had mentioned, funding had previously been allocated
incorrectly. In discussions with the department, a portion
of the funding was reallocated but some of the funding
remained within the incorrect source. In FY 24, the funding
was split, whereas the funding was in one located in FY 23.
Although it appeared that there was a small decrement, it
was due to removing $900,000 that was accidentally added to
the base in FY 23. The subcommittee added back in the
$667,000 that was intended to be in the allocation in FY
24.
Representative Stapp thanked the committee and concluded
his report.
Co-Chair Johnson announced that the committee would proceed
to the University of Alaska subcommittee closeout report.
^UNIVERSITY OF ALASKA
9:35:13 AM
Representative Stapp noted that his second committee aide
would be assisting him with the presentation on the report
on the University of Alaska (UA).
CLIFTON COGHILL, STAFF, REPRESENTATIVE WILL STAPP,
introduced himself.
Representative Stapp read through the subcommittee report
as follows (copy on file):
The House Finance Budget Subcommittee for the
University of Alaska held a total of three meetings,
made no changes to the Governor's request and submits
the following recommended operating budget for FY24 to
the House Finance Committee:
RECOMMENDATIONS:
Fund Source:(dollars are in thousands)
Unrestricted General Funds (UGF) $308,411.0
Designated General Funds (DGF) $306,261.9
Other Funds $75,510.5
Federal Funds $188,325.9
Total $878,509.3
Compared to the FY24 adjusted base, the subcommittee
recommendations represent an increase of$98.0 (0%) in
Unrestricted General Funds, a decrease of$5,633.3 (-
1.8%) in Designated General Funds, there was no
adjustment (0.0%) in Federal funds, and an increase of
$445.0 (0.6%) of Other funds for a total decrease of -
0.6% in all funds.
Positions:
Permanent Full-time 3,759
Permanent Part-time 185
Temporary 0
Total 3,944
BUDGET ACTION:
After reviewing and discussing each of the Governor's
proposed transactions in detail, the subcommittee
adopted all items by unanimous consent.
Some of the highlights of these items are:
• Expanding Health Education Centers on the UAA
campus: Alaska Area Health Education Centers
(AHEC) will implement multiple community-based
behavioral health day camps that concentrate on
behavioral health careers exploration. Locations
will include Northwest, Southeast, Yukon-
Kuskokwim, and others.
• Funds to grow the WWAMI program: The University
of Alaska makes high-quality, accessible, and
affordable post-secondary education available
across Alaska. The University of Alaska's FY2024
program will help build capacity for Alaska's
workforce by focusing on increasing faculty
capacity, supporting Alaska Native success
initiatives, reducing student indebtedness, and
increasing student enrollment and retention.
• Change Technical and Vocational Education
Program Appropriation to Language: The Alaska
Technical and Vocational Education Program
(TVEP), provides non- competitive grants to
institutions that are part of a statewide
vocational training system.
SUBCOMMITTEE AMENDMENTS:
The Chair set an amendment deadline and received three
amendments from the minority members.
All amendments failed to pass.
ATTACHED REPORTS
The House Finance Budget Subcommittee for the
University of Alaska adopted the attached reports:
UA Agency Totals
UA Transaction Compare: Adjusted Base + to
House Subcom
9:38:54 AM
Representative Galvin commented that it was still a work in
progress. Since 2019, overall spending for UA had been
reduced by 19 percent. Every other department that had been
through the subcommittee process had received updates, such
as new computers every year; meanwhile, the university
system was cutting programs during a time at which
workforce development had never been more important. She
noted that there was more work to be done.
Representative Stapp pointed out that the university was
receiving a $16,854,100 increase in FY 24 as compared to FY
23.
Representative Ortiz noted that the report summary stated,
"Other funds for a total decrease of -0.6 percent in all
funds." He asked how there could be an increase when the
report stated that there was a decrease in all funds.
Representative Stapp responded that it was referencing the
FY 24 governor's amended budget to the subcommittee
recommendations. He was pointing out the differences
between the FY 23 budget and FY 24 budget.
Co-Chair Johnson appreciated Representative Stapp's work on
the subcommittee reports.
Representative Stapp expressed his gratitude for everyone
who helped in the finance subcommittee process.
9:41:52 AM
AT-EASE
9:43:56 AM
RECONVENED
Co-Chair Johnson announced that the committee would move on
to the subsequent finance subcommittee closeout report.
^DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC DEVELOPMENT
Co-Chair Edgmon began the closeout report. He prefaced that
the Department of Commerce, Community and Economic
Development (DCCED) had historically seen a smaller amount
of general funds and the funds had been used at a decreased
rate over the last few years. The funding amount put
forward by the finance subcommittee at the recommendation
of the administration had doubled from about $10 million to
$20 million and was tied to three large sources of funding.
There was a $5 million one-time increment to the Alaska
Seafood Marketing Institute (ASMI), a fund source switch
for the Alaska Gasline Development Corporation (AGDC), and
a fund source change for the Division of Corporations,
Business and Professional Licensing (CBPL). He turned the
remainder of the presentation over to his staff.
9:45:46 AM
LAIB ALLENSWORTH, STAFF, REPRESENTATIVE BRYCE EDGMON, read
through the finance subcommittee report for DCCED. The
report read as follows (copy on file):
The House Finance Budget Subcommittee for the
Department of Commerce, Community, and Economic
Development met a total of five times and submits the
following recommendations with no changes from the
Governor's Amended request for the operating budget
for FY24 to the House Finance Committee:
RECOMMENDATIONS: (Dollars in Thousands)
Fund Source:
Unrestricted General Funds (UGF) $19,641.9
Designated General Funds (DGF) $59,317.0
Other Funds $53.590.7
Federal Funds $22,890.4
Total $155,440.0
Compared to the FY24 adjusted base, the subcommittee
recommendations represent an increase of $10,582.0
(+116.8%) in Unrestricted General Funds, an increase
of $576.1 (+1.0%) in Designated General Funds, an
increase of $2,322.9 (+4.5%) in other funds, and an
increase of $50.0 (+0.2%) in Federal Funds.
Positions:
Permanent Full-time 544
Permanent Part-time 0
Temporary 14
Total 558
BUDGET ACTION:
After reviewing and discussing the Governor's proposed
transactions in detail, the subcommittee adopted all
items by unanimous consent. There were no increases or
decreases to the FY24 Governor's Request.
Some Items of Note:
• $2,200 in a fund switch for Corporations,
Business, and Professional Licensing from
licensing receipts to Unrestricted General Funds
to stabilize licensing fees by offsetting
investigative costs.
• $3,086.1 in a fund switch for the Alaska
Gasline Development Corporation from the AGDC-LNG
Fund to Unrestricted General Funds for their
continued operations after exhaustion of that
fund.
• $5,000.0 in Unrestricted General Funds for the
Alaska Seafood Marketing Institute to promote
Alaska Seafoods in new markets after significant
downturn in current markets.
Subcommittee Amendments:
The Chair set an amendment deadline, welcomed
amendments from all members, and the committee
received no amendments.
Attached Reports:
• DCCED Agency Totals
• DCCED Transaction Compare: Adjusted Base + to
House Subcom
• Wordage
9:49:37 AM
Representative Hannan asked about the AGDC fund source
moving to general funds. She did not recollect whether the
allocation would be a one-year fund source change or if it
was expected to be a permanent change.
Co-Chair Edgmon responded that it was a one-year
appropriation. It was related to SB 138 [passed in 2016],
which created a fund consisting of around $100 million. The
fund had since been depleted and the fund source change
would allow AGDC to remain operational.
Representative Hannan asked if the money would be rolling
through the base in perpetuity. She asked if there had been
discussions on recapitalizing the fund. She thought there
was an initial narrative about being on the brink of a
privatization fund. She wondered if there were other
conversations outside of the subcommittee that led to
conclusions about rolling the funding into the base.
Co-Chair Edgmon deferred the question to Mr. Allensworth.
Mr. Allensworth responded that the funding was being rolled
into the base. A fund capitalization into the AGDC fund
would produce the same effect and require further
capitalization for a few years. The long-term plan was to
continue towards privatization, and rolling the funding
into the base would contribute to the long-term goal.
Representative Ortiz thanked Co-Chair Edgmon for pointing
out that DCCED had received the largest percentage of
reductions during the years in which the state was trying
to reduce its overall expenditures. He was aware that there
was an opportunity cost that came with the reductions. He
asked if Co-Chair Edgmon knew how the number of positions
within the department had fluctuated over the past five to
seven years.
Co-Chair Edgmon responded that he did not know the answer
from memory. He recalled that the department had been
continuing its work and there had been many instances of
fund source shifts to designated general funds, federal
funds, and other funds. During the pandemic, the department
had seen a substantial amount of additional spending flow
through the federal government. He thought the number of
positions had remained fairly consistent.
Mr. Allensworth added that the 24 new positions were
largely added to handle new responsibilities of the
department, which included the broadband office and new
Infrastructure Investment and Jobs Act (IIJA) funds. There
was some growth within the department due to the new
responsibilities.
Co-Chair Edgmon added that the broadband section of the
department was "pass through" money, meaning that the
broadband office was in the initial stages of development.
9:54:38 AM
Representative Ortiz explained that he brought up the issue
of positions because he had received a significant increase
of communications from his constituents surrounding
receiving licenses quickly. He noted that the department
had always been responsive and helpful when he brought
forth concerns from constituents. He relayed that there
were improvements to still be made in the area of licensing
in particular. He clarified that he was not intending to
criticize DCCED, but that the licensing difficulties were
likely due to reductions in funding.
Mr. Allensworth added that 12 of the 24 positions were
added to assist with professional licensing.
Representative Coulombe asked if the department had
discussed the intended use of the $5 million for ASMI.
Co-Chair Edgmon responded that the director of ASMI was
consulted during the subcommittee process. He thought it
was the first increment increase ASMI had received since FY
18. The $5 million was to be used to work on a number of
items, especially considering a variety of marketing
dynamics and external circumstances that had caused many
changes in the seafood industry. There had been concerns
about the funding being allocated to a private entity but
historically, ASMI had received more significant funding
than was currently proposed. He thought Alaska seafood was
a huge driver in the state's economy and was the largest
private sector employer. The seafood industry was
interconnected with many other industries in the state and
could greatly benefit from $5 million in funding.
Representative Coulombe thought it sounded like the funding
was necessary. She asked if the institute shared with the
subcommittee any information on particular goals it would
like to reach.
Mr. Allensworth responded that ASMI had a working plan but
as markets changed, the plan would likely change. The
institute was trying to find new markets for Alaska seafood
such Europe, Africa, Latin America, and the Middle East.
Co-Chair Edgmon wished Mr. Allensworth a happy birthday.
10:01:48 AM
Co-Chair Johnson invited Co-Chair Edgmon to provide the
report on the next finance subcommittee.
^DEPARTMENT OF CORRECTIONS
Co-Chair Edgmon explained that the Department of
Corrections (DOC) was funded largely from UGF. The
subcommittee did not receive any amendments from members,
but it collaborated with DOC and put forth intent language
to provide more information on the way in which the $10
million in funding would be used in community jails and how
the funding would be split between the 15 communities
participating in the program.
10:02:59 AM
JOE PLESHA, STAFF, REPRESENTATIVE BRYCE EDGMON, introduced
himself and read from the report as follows (copy on file):
The House Finance Budget Subcommittee for the
Department of Corrections submits the following
recommended operating budget for FY24 to the House
Finance Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $365,572.2
Designated General Funds (DGF) $14,355.5
Other Funds $22,343.6
Federal Funds $17,389.6
Total $419,660.9
Compared to the FY24 adjusted base, subcommittee
recommendations represent a decrease of $5,559.6 (-
1.5%) in Unrestricted General Funds, no change in
Designated General Funds, an increase in $125.0 (0.7%)
in Federal funds, as well as an increase in $12,906.2
(136.8%) in Other funds for a total increase of
$7,471.6 (1.8%) in all funds.
Positions:
Permanent Full-time 2,109
Permanent Part-time 0
Temporary 0
Total 2,109
BUDGET ACTION:
The House Finance Budget Subcommittee for the
Department of Corrections reviewed the FY24 budget
request and adopted all items by unanimous consent,
with the addition of intent language. There were no
increases or decreases to the FY24 Governor's Request.
Some of the highlights of these items are:
• Replaced $5,809.6 in general funds with
Restorative Justice Account funds due to
increased statutory availability.
• Reduced $7,500.0 in Physical Health Care based
on projected cost reductions, while increasing
general fund by $7,500.0 for operational costs of
institutions around the state.
• Added intent language to the Regional and
Community Jails allocation that directs the
Department on how to divide funding between each
community participating in the program.
ATTACHED REPORTS:
The House Finance Budget Subcommittee for the
Department of Corrections adopted the attached
reports:
• DOC Agency Totals
• DOC Transaction Compare: Adjusted Base + to
House Subcom
• Wordage
10:06:53 AM
Representative Galvin asked about the $7.5 million
increment reduction in physical health care. Her
understanding was that DOC felt that due to the reduction
in cost of some items like the treatment of Hepatitis C,
the costs would be rolled into general operating costs. She
wondered if there was discussion about providing mental
health care, specifically considering the increase in
suicide-related deaths in the state.
Co-Chair Edgmon responded that mental health funding was
discussed during the subcommittee process. The department
had never had enough money to properly address mental
health problems or provide adequate mental health care to
inmates. He understood that about 60 percent of currently
incarcerated individuals in the state were afflicted with
some type of mental health problem. The department did the
best it could, but it was focused on corrections rather
than mental health. In a perfect world, there would be more
money to allocate towards mental health issues.
Representative Galvin responded that she understood the
complexities of the issue and the costs. She hoped that
there was a discussion around the inclusion of mental
health care within physical health care. She thought more
appreciation around mental health and physical health could
be offered during the intake process. She understood that
the $7.5 million was likely needed for operational costs as
well.
Co-Chair Edgmon responded that the department had been
creative with the money it had, and he thought it deserved
credit for its resourcefulness. An individual's mental
health needs would sometimes increase suddenly, and the
department did the best it could with the resources it had.
10:11:23 AM
Representative Josephson noted that the Larger Permanent
Fund Dividend (PFD) resulted in more money in the hands of
incarcerated persons. He asked for more details on the
restorative justice account. He wondered if the account was
being used properly to supplant general funds.
Co-Chair Edgmon responded that the restorative justice
account was created in 2019 and the specific application of
the funds was prescriptive. The first place the money
should be applied was to the Violent Crimes Compensation
Board (VCCB), the next category was the Office of Victims'
Rights (OVR), then to grantees of mental health and
domestic violence, and finally to DOC, which was the
overriding category. He shared that 79 percent to 88
percent of all restorative justice funds went to DOC for
costs related to incarceration and probation. The account
itself resided in the Department of Revenue and fluctuated
every year depending on the size of the PFD. The PFD in
calendar year 2022 was the largest in the history of the
dividend in the state and was circulated into the FY 24
budgeting process. There was an allocation from the
restorative justice fund to the Department of Health
itself. The allocation of the account might need to be
revisited again in a few years.
10:14:57 AM
AT-EASE
10:16:54 AM
RECONVENED
Co-Chair Johnson introduced the next closeout report.
^DEPARTMENT OF MILITARY AND VETERANS AFFAIRS
Co-Chair Foster introduced himself.
BRODIE ANDERSON, STAFF, REPRESENTATIVE NEAL FOSTER,
introduced himself.
Co-Chair Foster began reading the report (copy on file):
RECOMMENDATIONS: The House Finance Budget Subcommittee
for the Department of Military and Veterans Affairs
submits the following recommended operating budget for
FY2024 to the House Finance Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $16,858.8
Designated General Funds (DGF) $28.5
Other Funds $12,000.7
Federal Funds $33,412.6
Total $62,300.6
The Unrestricted General Fund difference from FY24
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $753.1 thousand of
Unrestricted General Funds, which is 4.7% above the
FY24 Adjusted Base.
Positions:
Permanent Full-time 270
Permanent Part-time 0
Temporary 0
Total 270
BUDGET ACTION:
The House Finance Budget Subcommittee for the
Department of Military and Veterans reviewed the FY
2024 Governor's budget request, including amendments,
and recommends the following actions:
1) Accept all the Governor's proposals for the Alaska
Military Youth Academy (AMYA) with one technical sub-
committee change to correctly classify $475 thousand
in UGF funding used to match federal funding as
UGF/Match.
This includes the following items:
• Increase $ 1.9 million in federal authority and
decrease UGF funding by $1.9 million in UGF
savings.
• $475 thousand in UGF match funds
• $881.9 thousand in UGF to upgrade and modernize
AMY A campus as a onetime increment.
• Resulting in a net UGF savings of $543.1
thousand at AMYA
2) Approve all other transactions other than the
Alaska State Defense Force
3) Reduce the Governor's $2.5 million request to $1.25
million for the Alaska State Defense Force:
• Approve the transfer of the Alaska State
Defense Force out of the Commissioner's Office
with all related funds into a separate
allocation.
• Approve 4 out of the 5 positions requested
including the Director position.
• Provide $414.8 thousand for Expanded Operations
ATTACHED REPORTS:
The House Finance Budget Subcommittee for the
Legislature adopts the attached reports:
1. Agency Totals
2. Transaction Compare FY24AdjBase+ and House
Subcommittee
3. Transaction Compare FY24GovAmd and House
Subcommittee
4. Wordage
10:21:22 AM
Co-Chair Johnson introduced the next closeout report.
^GOVERNOR
10:21:37 AM
Co-Chair Foster read the subcommittee recommendations for
the governor's budget as follows (copy on file):
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the Office
of the Governor submits the following recommended
operating budget for FY2024 to the House Finance
Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $27,213.9
Designated General Funds (DGF) $0.0
Other Funds $533.3
Federal Funds $234.5
Total $27,981.7
The Unrestricted General Fund difference from FY24
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $8,086.6 thousand of
Unrestricted General Funds, which is 42.3% above the
FY24 Adjusted Base.
Positions:
Permanent Full-time 145
Permanent Part-time 0
Temporary 24
Total 169
BUDGET ACTION:
The House Finance Budget Subcommittee for the Office
of the Governor reviewed the FY 2024 Governor's budget
request, including amendments, and recommends the
following actions:
1) Accept all the Governor's proposed budget.
This includes the following highlighted items:
• $ 1.0 million in general funds to maintain
the Federal Infrastructure and Jobs Act
Implementation Office with 2 positions.
• $5,680.7 thousand to reverse and restore
UGF to the Numbers Section from the Language
Section
• $113.0 thousand for recruitment and
retention of election clerks
• $504.3 thousand maintaining the two-year
language appropriation for ongoing costs of
election worker pay increases currently
supported with FY 23 operating funds and a
FY22-23
• $293.0 thousand to increase Governor's
Security Detail by two positions.
ATTACHED REPORTS:
The House Finance Budget Subcommittee for the Office
of the Governor adopts the attached reports:
1. Agency Totals
2. Transaction Compare FY24AdjBase and House
Subcommittee
3. Wordage
10:24:28 AM
Representative Ortiz asked about the impact of moving an
item from the language section to the numbers section. He
asked for the reasoning behind the choice.
Co-Chair Foster responded that change was at the request of
the governor. The numbers section was straightforward and
the language section was more narrative in nature. He
deferred the question to his staff.
Mr. Anderson responded that at the end of conference
committee in the prior year, the decision was made to pull
out roughly $5.6 million from the numbers sections, which
was the agency operations component of the governor's
budget, and insert it into the language section. Removing
the component from the numbers section also removes it from
subcommittee purview. The desire from the governor's office
was to put the component back into the numbers section
which gave the appearance of a 42.3 increase in the numbers
section. He emphasized that the governor's budget had not
increased, but it appeared to increase by $5.6 million due
to a lateral move that was now reflected in a different
section.
Representative Josephson asked what the motivation was for
the legislature to move the component from the numbers
section to the language section.
Mr. Anderson responded that when the governor's budget left
the House and was transferred over to the Senate in the
prior year, the $5.6 million was reflected in the numbers
section. The Senate decided to move the monies from the
numbers section to the language section, which resulted in
the version of the budget that was put before the governor
at the end of conference committee. The governor decided to
move the money back into the numbers section of the budget.
Representative Galvin noted that two more positions were
being added for the governor's security detail. She
wondered if the positions would exist in perpetuity.
Co-Chair Foster responded that the positions were permanent
and full-time. There had been security gaps in the past and
the intention was to fill the gaps.
10:29:23 AM
Co-Chair Johnson introduced the next closeout report.
^LEGISLATURE
Co-Chair Foster read through the closeout report for the
legislature's budget as follows (copy on file):
RECOMMENDATIONS:
The House Finance Budget Subcommittee for the
Legislature submits the following recommended
operating budget for FY2024 to the House Finance
Committee:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $73,716.0
Designated General Funds (DGF) $402.3
Other Funds $1,046.1
Federal Funds $0.0
Total $75,164.4
The Unrestricted General Fund difference from FY24
Adjusted Base to the House Subcommittee budget
recommendation is an increase of $300.3 thousand of
Unrestricted General Funds, which is .4% above the
FY24 Adjusted Base.
Positions:
Permanent Full-time 270
Permanent Part-time 281
Temporary 28
Total 579
BUDGET ACTION:
The House Finance Budget Subcommittee for the
Legislature reviewed the FY 2024 Legislative Budget &
Audit, as well as the Legislative Council budgets, and
recommends the following actions:
1) Accept the Legislature's proposed budget.
This includes the following highlighted items:
• $661.3 thousand replacement of general funds
with Restorative Justice Funds resulting from
increased funds available.
$200.0 thousand for 2 new positions, 1 in the
Mat-Su Legislative Information Office, 1 in
Supply
• $ 100.0 thousand increase for security services
at the Anchorage Legislative Information Office
• $107.0 thousand salary increase for attorneys
in the Office of Victims' Rights (if legislation
is passed, SB81)
2) The subcommittee removed a Legislative Council
increment for special session expenses and recommends
$1.0 million of lapsing funds be authorized in the
Language section as a multi-year appropriation (FY24-
FY25).
ATTACHED REPORTS:
The House Finance Budget Subcommittee for the
Legislature adopts the attached reports:
1. Agency Totals
2. Transaction Compare FY24AdjBase and House
Subcommittee
3. Transaction Compare FY24GovAmd and House
Subcommittee
10:32:39 AM
Representative Josephson expressed that Co-Chair Foster had
done well in explaining the various departments. He
provided a hypothetical situation where a "wonky"
constituent asked him if the legislature used more than
half a million in restorative justice funds in order to
fund its own agencies. He asked what Co-Chair Foster would
suggest that he say to the constituent.
Co-Chair Foster deferred the question to his staff.
Mr. Anderson responded that OVR existed within the
structure of the legislature. The money for restorative
justice was only paying for items that OVR used.
Representative Josephson asked if he could tell the
constituent that there was a "firewall" and none of the
funds would go to a legislator's personal salary or to
something like the electric bill for the capitol building.
Mr. Anderson responded in the affirmative.
Co-Chair Johnson invited any closing comments.
Co-Chair Foster did not have closing comments. The
motivation behind the legislature's choices was not always
known but the language section was typically under the
purview of the finance committee.
10:35:52 AM
AT-EASE
10:36:35 AM
RECONVENED
Co-Chair Johnson introduced the final closeout report.
^DEPARTMENT OF REVENUE
10:36:56 AM
MATT GRUENING, STAFF, REPRESENTATIVE DELENA JOHNSON, read
through the report as follows (copy on file):
The House Finance Budget Subcommittee for the
Department of Revenue held a total of three meetings,
made no changes to the Governor's request, and submits
the following recommended operating budget for FY24 to
the House Finance Committee:
RECOMMENDATIONS:
Fund Source: (dollars are in thousands)
Unrestricted General Funds (UGF) $27,688.7
Designated General Funds (DGF) $3,596.6
Other Funds $329,185.4
Federal Funds $88,235.9
Total $448,706.6
Compared to the FY24 adjusted base, the subcommittee
recommendations represent an increase of $31.0 (+.l%)
in Unrestricted General Funds, $342.6 (+10.5%) in
Designated General Funds, $5,149.0 (+6.2%) in Federal
Funds, as well as a decrease of $222.6 (-.1%) of other
funds for a total increase of $5,300.0 (+1.2%) all
funds.
Positions:
Permanent Full-time 827
Permanent Part-time 24
Temporary 18
Total 869
BUDGET ACTION:
After reviewing and discussing each of the Governor's
proposed transactions in detail, the subcommittee
adopted all items by unanimous consent.
Some of the highlights of these items are:
• Tax Revenue Management System (TRMS) Cloud
Server Hosting: $373.6 UGF
• Replaced $342.6 UGF with $342.6 Higher Ed in
the Treasury Division for Investment Management
Fees for the Higher Education Investment Fund
(HEIF)
• Permanent Fund Dividend Application Information
System Maintenance and Support: $326.4 PFD Fund
• 5% Cost of Living Adjustment in line with HB
226 for AHFC Employees: $2,166.6 split between
Fed Rcpts, CIP Rcpts, and AHFC Rcpts
• Fully Funded Incentive Compensation for Direct
Investment Staff at the Alaska Permanent Fund
Corporation: $1,200.0 PF Gross
SUBCOMMITTEE AMENDMENTS:
The Chair set an amendment deadline, welcomed
amendments from all members, and the committee
received no amendments.
ATTACHED REPORTS The House Finance Budget Subcommittee
for the Department of Revenue adopted the attached
reports:
DOR Agency Totals
DOR Transaction Compare: Adjusted Base + to
House Subcom
DOR Wordage
10:41:58 AM
Co-Chair Johnson concluded the closeout reports. She
explained that the committee substitute would be available
on March 20, 2023, and she anticipated setting an amendment
deadline of March 24, 2023. She reviewed the agenda for the
afternoon's meeting.
HB 39 was HEARD and HELD in committee for further
consideration.
HB 41 was HEARD and HELD in committee for further
consideration.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 39 Closeout Report Pkt HFIN 031423.pdf |
HFIN 3/14/2023 9:00:00 AM |
HB 39 |